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2021-06-21 City Council Agenda Packet
CITY OF PALO ALTO City Council REVISED Monday, June 21, 2021 Special Meeting 5:00 PM Agenda posted according to PAMC Section 2.04.070. Supporting materials are available in the Council Chambers on the Thursday 11 days preceding the meeting. ***BY VIRTUAL TELECONFERENCE ONLY*** CLICK HERE TO JOIN Meeting ID: 362 027 238 Phone:1(669)900-6833 Pursuant to the provisions of California Governor's Executive Order N-29-20, issued on March 17, 2020, to prevent the spread of Covid-19, this meeting will be held by virtual teleconference only, with no physical location. The meeting will be broadcast on Cable TV Channel 26, live on YouTube at https://www.youtube.com/c/cityofpaloalto, and Midpen Media Center at https://midpenmedia.org. Members of the public who wish to participate by computer or phone can find the instructions at the end of this agenda. To ensure participation in a particular item, we suggest calling in or connecting online 15 minutes before the item you wish to speak on. 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 Special Orders of the Day 5:00-5:30 PM 1. Presentation by the Palo Alto Art Foundation 2. Adoption of a Resolution Expressing Appreciation to Beth Minor Public Comment Upon her Retirement 1 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY'S WEBSITE.. 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. Minutes Approval 5:45-5:50 PM 3. Approval of Action Minutes for the June 7, 2021 City Council Meeting AT THIS TIME THE COUNCIL WILL CONVENE TO A REGULAR MEETING MONDAY, JUNE 21, 2021 Regular Meeting 6:00 PM Consent Calendar 6:00-6:05 PM Items will be voted on in one motion unless removed from the calendar by three Council Members. 4. Adoption of the Fiscal Year 2022 Investment Policy 5. Approval to Utilize California Department of Technology CALNET Cellular Voice and Data Services Contract (C4-CVD-19-001-03) With Cellco Partnership D/B/A Verizon Wireless Through May 22, 2023 and Including Possible Extension Through May 22, 2027, With an Anticipated Cost of $350,000 Annually; CALNET Data Networks and Communications Services Contract (C4-DNCS-19-001-40) With AT&T Corporation Through June 30, 2025 and Including Possible Extension Through June 30, 2028; CALNET Legacy Telecommunications Voice and Data Services Contract (C4 -LEG -12 -10 -TS -01) With AT&T Corporation Through January 2, 2026 and Including Possible Extension Through January 2, 2029; and CALNET Cellular Voice and Data Services Contract (C4-CVD-19-001-04) With AT&T Mobility Through June 30, 2023 and Including Possible Extension Through June 30, 2027, With an Anticipated Cost of $300,000 Annually 6. Approval of Contract Amendment Number 3 to Contract Number C15159248 With Geodesy, to Extend the Term for Three -years Ending June 30, 2024, and add $535,000 for a new Not -to -Exceed Amount of $1,930,000, for Geographic Information Systems (GIS) Maintenance, Support, Consulting and Department -specific GIS Data Support Services 2 June 21, 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 IN THE CITY'S WEBSITE. Q&A 7. Approval of Contract Amendment Number 1 to Contract Number C19174715 With Swatt Miers Architects, Inc in the Amount of $89,000 for the Animal Shelter Renovation, Capital Improvement Program Project, PE -19002 8. Approve and Authorize the City Manager or Designee to Execute Amendment Number 9 With McCandless Limited LLC for a Three-year Lease Renewal at 1005 and 1007 Elwell Court Ending August 2024 Q&A 9. Approval of Amendment Number 1 to Contract Number C19173980 With Rincon Consultants, Inc. in the Amount of $27,045 for a Total Not -to -Exceed Amount of $170,497 and Extend the Term to January 31, 2022, for Preparation of an Initial Study of the Mitigated Negative Declaration for the Cubberley Concept Plan 10. Approval of two Blanket Purchase Orders With Bound Tree Medical, LLC and Life -Assist for the Purchase of Medical Supplies and Services Not -to -Exceed $132,000 per Year, for a Total Not -to -Exceed Amount of $660,000 for up to Five years 11. Adoption of a Resolution Making Required Findings to Continue Palo Alto's Participation in the Santa Clara County Abandoned Vehicle Abatement Service Authority (AVASA) Program for a Fourth 10 -year Term and Continue Collection of a $1 Fee to Fund the Authority 12. Approval of Amendment Number 2 to Contract Number C20176363 With Magellan Advisors, LLC, for: 1) a Detailed Engineering Design of the new Fiber Backbone Expansion and Fiber -to -the -Home; 2) to Increase Compensation for a Total Not -to -Exceed Amount of $2,914,331; and 3) Approval of a Budget Amendment in Fiscal Year 2021 for the Fiber Optics Fund 13. Approval of Contract Number C21181223A With Integrated Design 360, LLC and Approval of Contract Number C21181223B With Integral Group Holdings, LLC for a Shared Not -to -Exceed Amount of $750,000, to Provide Sustainability Services for Green Building, Energy Reach Code, and the Sustainability Climate Action Plan for a Term of Three - years Through June 2024 14. Approval of Construction Contract Number C21181691 With Best Contracting Services, Inc in the Amount of $1,710,000; and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not -to -Exceed Amount of $171,000 for the Municipal Service Center A, B, & C Roof Replacement Project, Capital Improvement Program Project PF-17000 3 June 21, 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 IN THE CITY'S WEBSITE. 15. Approval of a Lease Amendment Between 285 Hamilton LLC and the City of Palo Alto for the Premises Located at 285 Hamilton Avenue for a 48 -month Term at a Starting Base Rent of $43,890 per Month and Increasing 3 Percent Annually 16. Approval of Contract Amendment Number 1 to Contract Number C18169712 With OB Sports Golf Management (Baylands) LLC for a Period of Three -years for a Not -to -Exceed Increase Amount of $8,878,721 for the Management of Golf Course Operations at the Baylands Golf Links; and Approval of Contract Amendment Number 1 to Contract Number C18171872 With OB Sports Golf Management (Baylands), LLC for a Period of Three -years for Restaurant Licensing to Provide Food and Beverage Services MEMO 17. Staff Recommends the City Council Approve the Board and Commission 2021-2022 Work Plans 18. Adoption of an Ordinance Establishing Board and Commission Term MEMO Limits, Consolidating Appointments to March of Each Year, and Codifying the Human Relations Commission's Existing Role of Public Comment Recommending Grant Funding; and Adoption of a Resolution Establishing Term Limits for the Storm Water Management Oversight Committee 19. SECOND READING: Adoption of an Interim Ordinance of the Council Public Comment Temporarily Continuing the Expansion of Outdoor Dining, Retail and Other Activities on Public and Private Property and Relaxing Regulations Regarding Onsite Parking, On -site Sale of Alcohol, Design/Architectural Review, Permit Fees, and Alcohol Consumption in Public Places, All to Facilitate Such Outdoor use (FIRST READING: June 7, 2021 PASSED: 5-2 DuBois, Kou no) 20. PUBLIC HEARING: Adoption of a Resolution Determining the City's Proposition 4 Appropriations Limit (GANN Limit) for Fiscal Year 2022 21. Approval of Five 5.5 Year Contracts, Number C21179265A-E for Regional Water Quality Control Plant (RWQCP) On -call Construction Management and Inspection Services With: 1) MNS Engineers, Inc.; 2) CDM Smith; 3) Carollo Engineers; 4) Tanner Pacific, Inc.; and 5) MCK Americas Inc. for a Total Not -to -Exceed Amount of $1 per Contract; Approval and Authorization of the City Manager or Their Designees to Select one Consultant for Construction Management Services for the Primary Sedimentation Tanks Rehabilitation and Equipment Room Electrical Upgrade Project (WQ-14003) at the Regional Water Quality Control Plant 4 June 21, 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 IN THE CITY'S WEBSITE. City Manager Comments 6:05-6:15 PM Action Items Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials, Unfinished Business and Council Matters. 6:15-6:20 PM 21A. Approval of an Employment Agreement and Appointment of Lesley Milton to the Position of City Clerk at an Annual Salary of $175,000 Memo 6:20-7:15 PM 22. PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year Presentation 2022, Including Operating and Capital Budgets and Municipal Fee Schedule; and Adoption of a Revised Compensation Plan for Public Comment Management and Professional Employees 23. Presentation 7:15-7:45 PM Adoption of six Resolutions: 1) Approving the Fiscal Year (FY) 2022 Electric Utility Financial Plan, Including Proposed Reserve Transfers, and Amending Utility Rate Schedules E -EEC -1, E-NSE-1, E -2-G, E -4-G and E -7-G; 2) Amending Utility Rate Schedule E-HRA; 3) Approving the FY 2022 Gas Utility Financial Plan, Including Proposed Transfers, Amending the Gas Utility Reserve Management Practices, and Adopting a Gas Rate Increase by Amending Utility Rate Schedules G-1, G-2, G-3 and G-10; 4) Approving the FY 2022 Water Utility Financial Plan and Reserve Transfer; 5) Amending Utility Rate Schedule D-1 Increasing the Storm Water Management Fee by 2.0 Percent per Month per Equivalent Residential Unit for FY 2022; and 6) Amending Utility Rate Schedules EDF-1 and EDF-2 to Increase Dark Fiber Rates 2.0 Percent 7:45-8:30 PM 24. Approve and Authorize the City Manager or Their Designee to Execute Presentation a Seven-year License Agreement With two Five-year Renewal Options Public Comment and Monthly Rent Payments of $2,100 Between the City and Tesla, Inc. for a 19 -stall Tesla Supercharging Station in the Bryant/Lytton Garage at 445 Bryant Street; Review and Provide Direction on a Draft Administrative Policy on Unsolicited Proposals 8:30-9:15 PM 25. Colleagues Memo Regarding the Palo Alto Museum (Roth Building) From Council Members Kou and Stone, and Vice Mayor Burt 9:15-10:15 PM 26. Colleagues Memo on Affordable Housing Commercial Impact Fees From Council Members Filseth and Kou 5 June 21, 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 IN THE CITY'S WEBSITE. Council Member Questions, Comments and Announcements Members of the public may not speak to the item(s) Adjournment AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City's compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329-2550 (Voice) 24 hours in advance. 6 June 21, 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 IN THE CITY'S WEBSITE. Additional Information Informational Reports Parking Workplan and Schedule Informational Update Informational Report for Community and Economic Recovery: City Priority Initiatives Focus Area - Foothills Fire Mitigation and Safety Improvement Strategies 2020 Palo Alto Transportation Management Association Annual Report, 2020 Downtown Commute Survey, and 2021 Strategic Business Plan Summary The City's Relationship With the Association of Bay Area Governments (ABAG) Second Progress Report on Palo Alto's Community and Economic Recovery Workplan Private Tree Failure at 2353 Webster Street Schedule of Meetings Schedule of Meetings Public Letters to Council Set 1 Set 2 7 June 21, 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 IN 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.orq. 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 8 June 21, 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 IN THE CITY'S WEBSITE. CVTY 0 PALO ALTO City of Palo Alto (ID # 12370) City Council Staff Report Report Type: Special Orders of the Day Meeting Date: 6/21/2021 Summary Title: Resolution for Beth Minor Retirement Title: Adoption of a Resolution Expressing Appreciation to Beth Minor Upon her Retirement From: City Manager Lead Department: City Clerk Attachments: • Attachment A: Resolution Expressing Appreciation to Beth Minor Upon her Retirement City of Palo Alto Page 1 /O. EXPRESSING APPRECIATION TO BETH MINOR UPON HER RETIREMENT WHEREAS, Beth Minor served in the City Clerk's office for the last 13 years, first as the Assistant City Clerk starting in 2007 and then as the City Clerk since 2014. She has been a leader in helping the community fully participate in its government and a pillar of transparency. During the Covid-19 Pandemic, Beth helped the City adapt to online meetings while maintaining public participation, all while running her team remotely; and WHEREAS, to provide increased transparency and service to the community, Beth Minor implemented a Council policy delivering agenda packets 11 days in advance of Council Meetings, a best -in -class practice among Bay Area cities. She also initiated a rotating staff schedule to ensure her staff be available to the public and City Council five days a week, rather than the 9/80 system that operates in other City Hall departments; and WHEREAS, Beth manages the logistics of all City Council meetings facilitating discussion between the City Council, City Staff, and local policy makers. During these meetings, she provides a unique service to both the Council Members and citizens of Palo Alto by providing the Council motions in a viewable format, a service not typically provided in other communities; and WHEREAS, as the City's Election Official, Beth successfully managed 4 citywide Elections for Council Members and ballot initiatives. She provided neutral and fair assistance to all Council candidates and was a trusted source of information for the public. Furthermore, Beth oversaw the biannual recruitment process of the City's multiple Boards and Commissions; and WHEREAS, Beth Minor managed the onboarding and training of new department employees and implemented policies and procedures to better serve the Council and entire community. Many employees from her department have taken the skills learned in the Clerk's office and grown into other roles within the City and region; and WHEREAS, Beth Minor has managed and overseen various special projects within the city such as the Clerk's Office remodel, the Council Chambers audio/visual upgrade, as well as the request for proposal, training and implementation of vital Clerk tools: MinuteTraq and Netfile; and WHEREAS, for the last 13 years, Beth has coordinated many community events such as the Boards and Commissions volunteer appreciation events, City Council retreats, and State of the City addresses at a wide variety of venues around Palo Alto providing the public with greater opportunities for connection and involvement with their local government. NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Palo Alto hereby gratefully records and extends its sincere appreciation as well as the appreciation of the community to Beth Minor for professional, gracious and excellent service rendered to the City. INTRODUCED AND PASSED: June 21, 2021 ATTEST: APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Manager City Attorney CITY OF PALO ALTO CITY OF PALO ALTO OFFICE OF THE CITY CLERK June 21, 2021 The Honorable City Council Attention: Finance Committee Palo Alto, California Approval of Action Minutes for the June 7, 2021 City Council Meeting Staff is requesting Council review and approve the attached Action Minutes. ATTACHMENTS: • Attachment A: 06-07-21 CCM DRAFT Action Minutes (PDF) Department Head: Beth Minor, City Clerk Page 2 CITY OF PALO ALTO CITY COUNCIL DRAFT ACTION MINUTES Special Meeting June 7, 2021 The City Council of the City of Palo Alto met on this date in virtual teleconference at 5:02 P.M. Participating Remotely: Burt, Cormack, DuBois, Filseth, Kou, Stone, Tanaka Absent: Agenda Changes, Additions and Deletions None. Minutes Approval 1. Approval of Action Minutes for the May 24, 2021 City Council Meeting. MOTION: Vice Mayor Burt moved, seconded by Mayor DuBois to approve the Action Minutes for the May 24, 2021 City Council Meeting. MOTION PASSED: 7-0 Consent Calendar Council Member Kou registered a no vote on Agenda Item Numbers 3, 9 and 10 Council Member Tanaka registered a no vote on Agenda Item Number 3. Mayor DuBois registered a no vote on Agenda Item Number 9. MOTION: Mayor DuBois moved, seconded by Council Member Cormack to approve Agenda Item Numbers 2-10. 2. Approval of an Effluent Transfer Agreement Between the City of Palo Alto and the City of Los Altos. 3. Approval of Contract Number C21179800A With Pacific International Electric Company, Inc. in the Amount of $943,639 for the Underground District 46 Completion Project; and Authorization to Execute and Negotiate Related Change Orders in the Amount of $188,728 for a Total Page 1 of 6 DRAFT ACTION MINUTES Not -to -Exceed Amount of $1,132,367; and Approval of a Budget Amendment in the Electric Fund. 4. Recommendation to Authorize the City Manager or Designee to Execute a Five-year General Services Agreement With Western Machinery Electric Inc. for Repair and Maintenance of Electricity Generators at the Municipal Service Center in an Amount Not -to -Exceed $592,248; and to Negotiate and Execute one or More Task Orders for Additional Services as Needed in an Amount Not -to -Exceed $300,000, for a Total Not -to - Exceed Amount of $892,248; and Approve a Budget Amendment in the Electric Fund. 5. Approval of a Design -build Contract With Johnson Controls Fire Protection, LP in the Amount of $517,280, and Authorization for the City Manager to Negotiate and Execute Related Change Orders for a Not -to - Exceed Amount of $51,728, for a Total Not -to -Exceed Amount of $569,008 for the Civic Center Fire Life Safety Upgrades, Capital Improvement Program Project (PE -18016). 6. Approval of Amendment Number 1 to Contract Number S20176879 With Johnson Controls Fire Protection, LP to Increase the Contract Amount by $86,847 for a Revised Three-year Contract in a Total Amount Not - to -Exceed $265,584 for the Provision of Fire Sprinkler System Inspections and Repair Services. 7. Policy and Services Committee Recommends Approval of a Rent Forgiveness Program for Tenants in City Buildings and Approve a Budget Amendment in the General Fund. 8. Adoption of the Americans With Disabilities Act (ADA) Transition Plan Update for City Buildings, Parking Facilities, Parks, and Public Right -of - Way Sidewalks and Curb Ramps. 9. Adoption of an Ordinance and Resolution 9962 Temporarily Continuing: 1) Uses of Public and Private Property for Outdoor Dining, Retail, and Personal Services; and 2) the Pilot Parklet Program Past the end of the Local Emergency. 10. SECOND READING: Ordinance 5525 Entitled, "Ordinance of the Council of the City of Palo Alto Updating an Emergency Permit Extension Ordinance in Response to Changes to Santa Clara County Health Orders (FIRST READING: May 24, 2021 PASSED: 7-0)." MOTION PASSED FOR AGENDA ITEM NUMBERS 2, 4-8: 7-0 Page 2 of 6 Sp. City Council Meeting Draft Action Minutes: 06/07/2021 DRAFT ACTION MINUTES MOTION PASSED FOR AGENDA ITEM NUMBER 3: 5-2 Kou, Tanaka no MOTION PASSED FOR AGENDA ITEM NUMBER 9: 5-2 DuBois, Kou no MOTION PASSED FOR AGENDA ITEM NUMBER 10: 6-1 Kou no Action Items 11. PUBLIC HEARING: Resolution 9963 Entitled, "Resolution of the Council of the City of Palo Alto to Suspend Assessments for Fiscal Year 2022 for the Downtown Business Improvement District (BID) (CONTINUED FROM JUNE 1, 2021)." Public Hearing opened and closed without public comment at 5:45 P.M. MOTION: Council Member Cormack moved, seconded by Mayor DuBois to adopt a Resolution temporarily suspending the levy of assessments in Fiscal Year 2022 in connection with the Downtown Palo Alto Business Improvement District (BID). MOTION PASSED: 7-0 Council took a break at 5:50 P.M. and returned at 6:05 P.M. 12. 855 El Camino Real (20PLN-00252): Adoption of an Ordinance Amending Chapters 18.04 and 18.16 of the Municipal Code to Allow Some Ground Floor Medical Office ("Retail Health") Uses With a Commensurate Increase in the Overall Office use Allowed at the Site Subject to Limitations. Environmental Assessment: Exempt From the Provisions of the California Environmental Quality Act (CEQA) in Accordance With Guideline Section 15301 (Existing Facilities). Zoning District: CC (Community Commercial). MOTION: Council Member Tanaka moved, seconded by Council Member Cormack to: A. Find the attached Ordinance exempt from the California Environmental Quality Act (CEQA) in accordance with CEQA Guidelines Section 15301 (existing facilities); B. Adopt the attached Ordinance creating a "retail health" definition allowing a limited amount of retail health uses on the ground floor at Town and Country Shopping Center; and C. Provide direction to Staff on whether to study expansion of retail health uses to other shopping centers or commercial districts. Page 3 of 6 Sp. City Council Meeting Draft Action Minutes: 06/07/2021 DRAFT ACTION MINUTES SUBSTITUTE MOTION: Council Member Kou moved, seconded by Council Member Filseth to deny the application. SUBSTITUTE MOTION PASSED: 5-2 Cormack, Tanaka no 13. PUBLIC HEARING: Resolution 9964 and Resolution 9965 Adopting the 2020 Urban Water Management Plan and Water Shortage Contingency Plan. Public Hearing opened at 7:44 P.M. Public Hearing closed at 7:51 P.M. MOTION: Mayor DuBois moved, seconded by Council Member Cormack to adopt a Resolution adopting the 2020 Urban Water Management Plan and a Resolution adopting the Water Shortage Contingency Plan. AMENDMENT: Vice Mayor Burt moved, seconded by Council Member Stone to direct the City to send a letter to the San Francisco Public Utilities Commission (SFPUC) that includes an appendix in the plan that would analyze the impact of the SFPUC reducing the design drought by one year. INCORPORATED INTO THE AMENDMENT WITH THE CONSENT OF THE MAKER AND SECONDER to change the Amendment to read, "to request Staff provide a letter for the Mayor's approval to the San Francisco Public Utilities Commission..." AMENDMENT AS AMENDED: Vice Mayor Burt moved, seconded by Council Member Stone to request Staff provide a letter for the Mayor's approval to the San Francisco Public Utilities Commission (SFPUC) that includes an appendix in the plan that would analyze the impact of the SFPUC reducing the design drought by one year. AMENDMENT AS AMENDED PASSED: 5-2 Cormack, Tanaka no MOTION AS AMENDED: Mayor DuBois moved, seconded by Council Member Cormack to: A. Adopt a Resolution adopting the 2020 Urban Water Management Plan and a Resolution adopting the Water Shortage Contingency Plan; and B. Request Staff provide a letter for the Mayors approval to the San Francisco Public Utilities Commission (SFPUC) that includes an appendix in the plan that would analyze the impact of the SFPUC reducing the design drought by one year. Page 4 of 6 Sp. City Council Meeting Draft Action Minutes: 06/07/2021 DRAFT ACTION MINUTES MOTION SPLIT FOR THE PURPOSE OF VOTING MOTION AS AMENDED PASSED FOR MOTION, PART A: 7-0 MOTION AS AMENDED PASSED FOR MOTION, PART B: 5-2 Cormack, Tanaka no 14. City Council Review of the Finance Committee's Recommended Fiscal Year (FY) 2022 Operating & Capital Budgets and Municipal Fee Schedule; Direction to Staff Regarding Preparation of the Final Budget for Council Adoption on June 21, 2021. Council took a break at 9:06 P.M. and returned at 9:15 P.M. MOTION: Mayor DuBois moved, seconded by Council Member Kou to: A. Direct Staff to return on June 21, 2021 for adoption of the Fiscal Year 2022 Proposed Operating and Capital Budgets and Municipal Fee Schedule in alignment with the work completed by the Committee and Council during the month of May 2021 and provide direction on any final adjustments in preparation for City Council Adoption; B. Review and accept final FY 2022-2025 Capital Improvement Plan as amended by the actions outlined in this report (as recommended by the Finance Committee and Council); C. Review and accept the alternative balancing strategy in the event the City does not reach agreement with labor groups on concessions in the General Fund, that the City Council utilize current unallocated funds of $1.7 million in the General Fund to offset the additional expense or be placed in the Budget Stabilization Reserve if remain unallocated; and D. Recommend Option B.ii. for funding of the ROTH building rehabilitation project as outlined by the Finance Committee on May 25, 2021. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER "Direct Staff to return by the end of October 2021 with preliminary Q1 financial results so the Council can consider budget amendments." (New Part E). INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to add to the beginning of Motion, Parts A, B and C, "Direct Staff to return on June 21, 2021...". MOTION AS AMENDED: Mayor DuBois moved, seconded by Council Member Kou to: Page 5 of 6 Sp. City Council Meeting Draft Action Minutes: 06/07/2021 DRAFT ACTION MINUTES A. Direct Staff to return on June 21, 2021 for adoption of the Fiscal Year 2022 Proposed Operating and Capital Budgets and Municipal Fee Schedule in alignment with the work completed by the Committee and Council during the month of May 2021 and provide direction on any final adjustments in preparation for City Council Adoption; B. Direct Staff to return on June 21, 2021 to accept final FY 2022-2025 Capital Improvement Plan as amended by the actions outlined in this report (as recommended by the Finance Committee and Council); C. Direct Staff to return on June 21, 2021 to accept the alternative balancing strategy in the event the City does not reach agreement with labor groups on concessions in the General Fund, that the City Council utilize current unallocated funds of $1.7 million in the General Fund to offset the additional expense or be placed in the Budget Stabilization Reserve if remain unallocated; D. Recommend Option B.ii. for funding of the ROTH building rehabilitation project as outlined by the Finance Committee on May 25, 2021; and E. Direct Staff to return by the end of October 2021 with preliminary Q1 financial results so that the Council can consider budget amendments. MOTION AS AMENDED PASSED: 4-3 Cormack, Filseth, Tanaka no Adjournment: The meeting was adjourned at 11:14 P.M. ATTEST: APPROVED: City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC) 2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City's website. Page 6 of 6 Sp. City Council Meeting Draft Action Minutes: 06/07/2021 CITY OF PALO ALTO City of Palo Alto (ID # 12137) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: Investment Policy Update Title: Adoption of the Fiscal Year 2022 Investment Policy From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that Council approve the City's Investment Policy (Policy) (Attachment A) with the following changes: 1) Increase the percent of funds that may be held in California State, California Local Government Agencies, and other United States State Bonds (aka Municipal/State Bonds), from 30 percent to 40 percent of the par value of the portfolio, to further increase portfolio diversification by reducing investments in a small number of federal agency entities and increasing investments in more numerous municipal/state entities bonds. (Page 5 of attachment). 2) Update Appendix A, Explanation of Permitted Investments Local Agency Investment Funds or LAIF's permitted limit from $40 million to $75 million (Page 12 of attachment, which is for informational purposes only). 3) Change the reference to the financial report name of "Comprehensive Annual Financial Report" to "Annual Comprehensive Financial Report" (ACFR) (Page 3 & 17 of attachment). Discussion The Investment Policy (Policy) requires that the Policy be reviewed, and any changes proposed by Staff be approved by the City Council during the annual budget process. Staff proposes three changes to the Policy. 1) Increase Maximum Limit for Municipal/State Bonds (Page 5 of the attachment) Close to 30 percent of the City's Investment Portfolio is invested Municipal/State Bonds for agencies in the State of California, California local government agencies, and the other 49 U.S. states. California local government agencies include: any city, county, city and county, district, or other local governmental body or corporation, including the California State City of Palo Alto Page 1 Universities (CSU) and University of California (UC) systems, K-12 schools and community colleges empowered to expend public funds. Consistent with California state law, investments in any of the non -state level jurisdictions of the other 49 states would still not be permitted. The City's portfolio, as of April 30, 2021, has Municipal/State Bonds from 73 separate government entities totaling $163.2 million or 29.2 percent of the City's portfolio. Graph 1, as of April 30, 2021, shows the City's investment by type. In FY 2020, the City Council approved a change to the Investment Policy increasing the Municipal/State Bond investment limit from 20 percent to 30 percent of the total par value of the portfolio (CMR 10349). Staff recommends increasing the Municipal/State Bonds' Policy limit from 30 percent to 40 percent of the par value of the portfolio. This change is in compliance with State code. All Municipal/State Bonds at the time of investment will continue to have a minimum Double A (AA/Aa2) rating as provided by a nationally recognized rating service (e.g. Moody's, Fitch, and/or Standard and Poor's). By adding the additional flexibility to invest in Municipal/State Bonds, the City has greater options for investing idle cash, maintaining a solid portfolio yield and, most importantly, preserving City capital in secure available investment instruments; this further diversifies investments away from U.S. Agency securities for reasons cited below. Over the past two decades, there have been intermittent discussions and proposals to (1) reduce the government -sponsored enterprises agencies size and (2) change their relationship with the U.S. Government. These are autonomous not -for-profit public corporation that have explicit and/or implied backing by the full faith and credit of the U.S. Government, therefore City of Palo Alto Page 2 they share the credit rating of U.S. Treasuries (Aaa/AA+). Under Congressional and private pressure, all federal agencies have substantially reduced their operations including the amount of bonds they are issuing thereby reducing the amount of securities available to invest in or purchase. Furthermore, continued intermittent discussions/proposals have been discussed, however, no concrete actions have been taken to change the relationship between the federal government and government -sponsored enterprise agencies. Staff proposes this modification to the investment policy to proactively anticipate what may occur in the market in the future and address the uncertainty of these discussions between the federal government and government -sponsored agencies. Over the past several years, staff has looked to other instruments to invest idle cash and diversify the City's portfolio and has diversified the City's investment portfolio from what previously was an upwards of 90 percent invested in federally backed agency investments. Today the proportionate share of the portfolio, in federal -sponsored agencies, is approximately 43 percent with the next goal is to reduce this to a low 30 percent. The other investment types are not expected to significantly change as a result of this recommended change. 2) Update Appendix A, Explanation of Permitted Investments Local Agency Investment Funds or LAIF's permitted limit from $40 million to $75 million (Page 12 of attachment, which is for informational purposes only) The Local Agency Investment Fund (LAIF), a voluntary program created by statute, began in 1977 as an investment alternative for California's local governments and special districts. The LAIF is part of the State of California's Pooled Money Investment Account (PMIA). The PMIA began in 1955 and oversight is provided by the Pooled Money Investment Board (PMIB) and an in-house Investment Committee. The PMIB members are the State Treasurer, Director of Finance, and State Controller. All securities are purchased under the authority of Government Code Section 16430 and 16480.4. The State Treasurer's Office takes delivery of all securities purchased on a delivery versus payment basis using a third -party custodian. All investments are purchased at market and a market valuation is conducted monthly. This is the City's primarily investment vehicle for the City's liquid funds which are fully available to Palo Alto on a same day basis to meet the daily cash needs. LAIF's current maximum investment per agency is $75 million; the City's Investment Policy limit defers to whatever the LAIF limit is for its pool members like Palo Alto. This change updates Appendix A, which is provided as information. Palo Alto's Investment Policy states, "A State of California managed investment pool may be used up to the maximum permitted by California State Law." In FY 2021, Palo Alto's LAIF actual balance has ranged from $33 million to $75 million; staff adjust this balance based on the forecasted cash needs. In Graph 1, LAIF's balance is reflect in the "Liquid Accts" category. 3) Change the reference to the financial report name of "Comprehensive Annual Financial Report" to "Annual Comprehensive Financial Report" (ACFR) (Page 3 & 17 of attachment). City of Palo Alto Page 3 In March 2021, the Government Finance Officers Association (GFOA) asked all industry affiliates to immediately stop using the common four-letter acronym associated with the "Comprehensive Annual Financial Report". This policy change is the result of a new and evolving industry understanding that the acronym is pronounced in the same way of an offensive racial slur in South Africa and a controversial meaning in Arabic for those who practice Islam. Consistent with the GFOA guidance and to be proactive in addressing this issue, staff is renaming future financial report to "Annual Comprehensive Financial Report "(ACFR) thereby eliminating the acronym associated with the current report title. This recommendation will align the Investment Policy with this change. For more information of this, please see the GFOA website: https://www.gfoa.org/materials/reference- comprehensive-annual-financial-report Resource Impact There are no budget impacts associated with these changes to the Investment Policy and the City's investment portfolio continues to be managed in-house with existing staff resources. Policy Implications This report outlines various changes to the Policy including the scope of the Policy, the maximum percentage of the par value of the portfolio in Municipal/State Bonds, clarifying changes to the Policy, and to align information and references within the policy with State law and national guidelines. Environmental Review The actions requested in this report do not constitute a project for the purposes of the California Environmental Quality Act (CEQA). Attachments: • Attachment A: Fiscal Year 2022 Proposed City of Palo Alto Investment Policy City of Palo Alto Page 4 Attachment A PROPOSED CITY OF PALO ALTO Investment Policy Fiscal Year 2021-22 With Changes INTRODUCTION The City of Palo Alto invests its pooled idle cash according to State of California law and the charter of the City of Palo Alto. In particular, the City follows "The Prudent Investor Standard" cited in the State Government Code (Section 53600.3). Under this standard, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. INVESTMENT PHILOSOPHY The basic principles underlying Palo Alto's investment philosophy is to ensure the safety of public funds, provide that sufficient money is always available to meet current expenditures, and achieve a reasonable rate of return on its investments. The City's preferred and chief practice is to buy securities and to hold them to their date of maturity rather than to trade or sell securities prior to maturity. The City may, however, elect to sell a security prior to its maturity should there be a significant financial need. If securities are purchased and held to their maturity date, then any changes in the market value of those securities during their life will have no effect on their principal value. Under a buy and hold philosophy, the City is able to protect its invested principal. The economy, the money markets, and various financial institutions (such as the Federal Reserve System) are monitored carefully to make prudent investments and to assess the condition of the City's portfolio. INVESTMENT OBJECTIVES The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield: 1 Attachment A - 1 Attachment A 1. Safety: Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. a) Credit risk is the risk that an obligation will not be paid and a loss will result. The City will seek to minimize this risk by: • Limiting investment to the safest types of securities or minimum credit quality rating as listed in the "Authorized Investment" section • Diversifying its investments among the types of securities that are authorized under this investment policy b) Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investor's portfolio. For example, an investor with large holdings in long-term bonds has assumed significant interest rate risk because the value of the bonds will fall if interest rates rise. The City can minimize this risk by: • Buying and holding its securities until maturity • Structuring the investment portfolio so that securities mature to meet cash flow requirements To further achieve the objective of safety, the amount that can be invested in all investment categories, excluding obligations of the U.S. Government and its agencies, is limited either as a percentage of the portfolio or by a specific dollar amount. These limits are defined under the "Authorized Investments" section. 2. Liquidity: Liquidity is the second most important objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by maintaining a portion of the portfolio in liquid money market mutual funds or local government investment pools. In addition, the City will maintain one month's net cash needs in short term and/or liquid investments and at least $50 million shall be maintained in securities maturing in less than two years. Although the City's practice is to buy and hold securities to maturity, since all possible cash demands cannot be anticipated, the portfolio will consist of securities with active secondary or resale markets should the need to sell a security prior to maturity arises. 3. Yield: Yield on the City's portfolio is last in priority among investment objectives. The investment portfolio shall be designed to obtain a market rate of return that reflects the authorized investments, risk constraints, and liquidity needs outlined in the City's investment policy. Compared to similar sized cities, the City of Palo Alto should be able to take advantage of its relatively large reserve balances to achieve higher yields through long-term investments. In addition, the City will strive to maintain the level of investment of idle funds as close to 100 percent as possible. 2 Attachment A - 2 Attachment A ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) RESPONSIBILITIES In addition to and subordinate to the Safety, Liquidity, and Yield investment objectives, investments that support sound environmental, social and governance (ESG) objectives are also considered. While the City's portfolio is not classified as an ESG portfolio, investments in entities that support community well-being through practices that emphasize safe and environmentally sound objectives; fair labor practices; and equality of rights regardless of sex, race, age, disability, or sexual orientation, is encouraged. Direct investments in entities that manufacture tobacco products, firearms, and engage in direct production or drilling of fossil fuels is discouraged. This section applies to new investments (after November 5, 2018) only and does not require divestment of existing investments. Investments in Certificates of Deposit (CDs) and Negotiable Certificates of Deposit are exempt from the ESG investing objective. SCOPE A. This investment policy shall apply to all financial assets of the City of Palo Alto as accounted for in the Comprehensive Annual Comprehensive Financial Report (ACFR)(CAFR), including but not limited to the following funds: 1. General Fund 2. Special Revenue Funds 3. Debt Service Funds 4. Capital Project Fund 5. Enterprise Funds 6. Internal Service Funds 7. Trust and Agency Funds B. The policy does not cover funds held by the California Public Employees Retirement System (Ca1PERS), the California Employers' Retiree Benefit Trust (CERBT), Deferred Compensation programs (e.g. ICMA, Hartford), the Authority for California Cities Excess Liability (ACCEL), and the Public Agency Retirement Services (PARS) Section 115 Irrevocable Trust. C. Investments of bond proceeds shall be governed by the provisions of the related bond indentures. GENERAL INVESTMENT GUIDELINES 1. The maximum stated final maturity of individual securities in the portfolio should be ten years. 2. A maximum of 30 percent of the par value of the portfolio shall be invested in securities with maturities beyond five years. 3 Attachment A - 3 Attachment A 3. The City shall maintain a minimum of one month's net cash needs in short term and/or liquid investments. 4. At least $50 million shall be maintained in securities maturing in less than two (2) years. 5. Should the ratio of the market value of the portfolio to the book value of the portfolio fall below 95 percent, the Administrative Services Department will report this fact to the City Council within a reasonable time frame and evaluate whether there is any risk of holding any of the securities to maturity. 6. Commitments to purchase securities newly introduced on the market shall be made no more than three (3) working days before pricing. 7. Whenever possible, the City will obtain three or more quotations on the purchase or sale of comparable securities and take the higher yield on purchase or higher price on sale. This rule will not apply to new issues, which are purchased at market no more than three (3) working days before pricing, as well as to LAIF, City of Palo Alto bonds, money market accounts and mutual funds, all of which shall be evaluated separately. 8. Where the Investment Policy specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. A later increase or decrease in a percentage resulting from a change in the portfolio's assets or values shall not constitute a violation of that restriction. As soon as possible, percentage limitations will be restored as investments mature in each category. AUTHORIZED INVESTMENTS The California Government Code (Sections 53600 et seq.) governs investment of City funds. The following investments are authorized: 1. U.S. Government Securities (e.g. Treasury notes, bonds and bills) Securities that are backed by the full faith and credit of the United States a) There is no limit on purchase of these securities. b) Securities will not exceed 10 years maturity. c) All purchased securities must have an explicit or a de facto backing of the full faith and credit of the U.S. Government. 2. U.S. Government Agency Securities — Obligations issued by the Federal Government agencies (e.g. Federal National Mortgage Association, etc.). a. There is no limit on purchase of these securities except for: 4 Attachment A - 4 Attachment A • Callable and Multi -step-up securities provided that: - The potential call dates are known at the time of purchase - The interest rates at which they "step-up" are known at the time of purchase - The entire face value of the security is redeemed at the call date - No more than 25 percent of the par value of the portfolio b. Securities will not exceed 10 years maturity. 3. California State, California Local Government Agencies, and other United States State Bonds a) Having at time of investment a minimum Double A (AA/Aa2) rating as provided by a nationally recognized rating service (e.g. Moody's, Fitch, and/or Standard and Poor's). b) May not exceed 4030 percent of the par value of the portfolio. c) Investments include: i) Registered state warrants or treasury notes or bonds of the State of California and bonds, notes, warrants, or other evidences of indebtedness of any local agency within California, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by the state or local agency or by a department, board, agency, or authority of the state or local agency. ii) Registered treasury notes or bond of any of the 49 United States in addition to the State of California, including bonds payable solely out of the revenues from a revenue -producing property owned, controlled, or operated by a state or by a depai tment, board, agency or authority of any of the other 49 United States, in addition to the State of California. 4. Certificates of Deposit (CD) - A debt instrument issued by a bank for a specified period of time at a specified rate of interest. Purchase of CD's are limited to: a) May not exceed 20 percent of the par value of the portfolio. b) No more than 10 percent of the par value of the portfolio in collateralized CDs in any institution. c) Purchase collateralized deposits only from federally insured large banks that are rated by a nationally recognized rating service (e.g. Moody's, 5 Attachment A - 5 Attachment A Fitch, and/or Standard and Poor's). d) For non -rated banks, deposit should be limited to amounts federally insured (FDIC). — See Appendix C e) Rollovers are not permitted without specific instruction from authorized City staff. 5. Banker's Acceptance Notes (BA) — Bills of exchange or time drafts drawn on and accepted by commercial banks. Purchase of banker's acceptances are limited to: a) No more than 30 percent of the par value of the portfolio. b) Not to exceed 180 days maturity. c) No more than $5 million with any one institution. 6. Commercial Paper - Short-term unsecured obligations issued by banks, corporations, and other borrowers. Purchases of commercial paper are limited to: a) Having highest letter or numerical rating as provided for by a nationally recognized rating service (e.g. Moody's, Fitch, and/or Standard and Poor's). b) No more than 15 percent of the par value of the portfolio. c) Not to exceed 270 days maturity. d) No more than $3 million or 10 percent of the outstanding commercial paper of any one institution, whichever is lesser. 7. Local Agency Investment Fund (LAIF) — A State of California managed investment pool may be used up to the maximum permitted by California State Law. 8. Short -Term Repurchase Agreements (REPO) — A contractual agreement between a seller and a buyer, usually of U.S. government securities, whereby the seller agrees to repurchase the securities at an agreed upon price and, usually, at a stated time. Purchases of REPO's must: a) Not to exceed 1 year. b) Market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities. c) A Master Repurchase agreement must be signed with the bank or dealer. 6 Attachment A - 6 Attachment A 9. Money Market Deposit Accounts — Liquid bank accounts which seek to maintain a net asset value of $1.00. 10. Mutual Funds which seek to maintain a net asset value of $1.00 and which are limited essentially to the above investments and further defined in note 9 of Appendix A a) No more than 20 percent of the par value of the portfolio. b) No more than 10 percent of the par value with any one institution. 11. Negotiable Certificates of Deposit (NCD) issued by nationally or state -chartered banks and state or federal savings institutions and further defined in note 11 of Appendix A. Purchases of negotiable certificates of deposit: a) May not exceed 20 percent of the par value of the portfolio. b) No more than $5 million in any one institution. 12. Medium -Term Corporate Notes — Issued by corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating with the United States. a) Not to exceed 5 years maturity. b) Securities eligible for investment shall have a minimum rating of AA or Aa2 from a nationally recognized rating service (e.g. Moody's, Fitch, and/or Standard & Poor's). c) No more than 10 percent of the par value of the portfolio. d) No more than $5 million of the par value may be invested in securities of any single issuer, other than the U.S. Government, its agencies and instrumentality. e) If securities owned by the City are downgraded by Moody's, Fitch, or Standard & Poors to a level below AA or Aa2, it shall be the City's policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. 13. Supranational Organizations Securities — Supranational organizations refer to International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC) and Inter -American Development Bank (IADB). a. Securities will not exceed 5 years maturity. b. No more than 20 percent of the par value of the portfolio. 7 Attachment A - 7 Attachment A c. No more than 10 percent of the par value with any one institution. d. Securities eligible for investment shall have a minimum rating of AA or Aa2 from a nationally recognized rating service (e.g. Moody's, Fitch, and/or Standard & Poor's). e. Limited to United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by IBRD, IFC, and IADB. Appendix A provides a more detailed description of each investment vehicle and its security and liquidity features. Most of the City's short-term investments will be in securities which pay principal upon maturity, while long-term investments may be in securities that periodically repay principal, as well as interest. Most of the City's investments will be at a fixed rate. However, some of the investments may be at a variable rate, so long as that rate changes on specified dates in pre- determined increments. PROHIBITED INVESTMENTS: Includes all investments not specified above, and in particular: 1. Reverse repurchase agreements 2. Derivatives, as defined in Appendix B Appendix B provides a more detailed description of each investment, which is prohibited, for City investment. AUTHORIZED INVESTMENT PERSONNEL Idle cash management and investment transactions are the responsibility of the Administrative Services Department. The Administrative Services Department is under the control of the Director of Administrative Services (Director), as treasurer, who is subject to the direction and supervision of the City Manager. The Assistant Directors of Administrative Services (Assistant Director), who reports to the Director, are authorized to make all investment transactions allowed by the Statement of Investment Policy. The Assistant Director may authorize the Manager of Treasury, Debt & Investments and/or Senior Management Analyst (Manager and/or Analyst) to enter into investments within clearly specified parameters. The Investment function is under the supervision of the Assistant Director. The Assistant Director is charged with the responsibility to manage the investment program (portfolio), which includes developing and monitoring the City's cash flow model and developing long-term revenue and financing strategies and forecasts. The Manager and/or Analyst are subject to the direction and supervision of the Assistant Director. The Manager and/or Analyst assist the Assistant Director, in the purchase and sale of securities. The Manager and/or Analyst also prepare the quarterly report, and record daily all investment 8 Attachment A - 8 Attachment A transactions as to the type of investment, amount, yield, and maturity. Cash flow projections are prepared as needed. In all circumstances, approval from the Director of Administrative Services is required before selling securities from the City's portfolio. The Manager and/or Analyst may also transfer no more than a total of $10 million a day from the City's general account to any one financial institution, without the prior approval of the Assistant Director. No other person has authority to make investment transactions without the written authority of the Director or Assistant Director of Administrative Services. USE OF BROKERS AND DEALERS The Administrative Services Department maintains a list of acceptable dealers. A dealer acts as a principal in security transactions, selling securities from and buying securities for their own position. A dealer must have: a) At least three years experience operating with California municipalities; b) Maintain an inventory of trading securities of at least $10 million; and c) Be approved by the Assistant Director before being added to the City's list of approved dealers; including individual traders or agents representing a dealer: A dealer will be removed from the list should there develop a history of problems to include: failure to deliver securities as promised, failure to honor transactions as quoted, or failure to provide accurate information. SAFEKEEPING AND CUSTODY All securities shall be delivered to the City's safekeeping custodian and held in the name of the City of Palo Alto, with the exception of the following investments: a) Certificates of deposit, which may be held by the City itself. b) City shares in pooled investment funds, under contract. c) Mutual funds d) Local Agency Investment Fund (LAIF) 9 Attachment A - 9 Attachment A POLICY REVIEW AND REPORTING ON INVESTMENTS Monthly, the Administrative Services Department will review performance in relation to Council adopted Policy. Quarterly, the Department will report to Council investment activity, including: the portfolio's performance in comparison to policy, explain any variances from policy, provide any recommendations for policy changes, and discuss overall compliance with the City's Investment Policy. In addition, the Department will provide Council with: a) A detailed list of all securities, investments and monies held by the City, and b) Report on the City's ability to meet expenditure requirements over the next six months. Annually, the Administrative Services Department will present a Proposed Statement of Investment Policy, to include the delegation of investment authority, to the City Council for review during the annual budget process. All proposed changes in policy must be approved by the Council prior to implementation. Adopted by City Council October 22, 1984 Amended by City Council June 11, 2001 Monthly reporting effective January 1985 Amended by City Council June 17, 2002 Amended and Adopted by City Council June 24, 1985 Amended by City Council June 17, 2003 Amended by City Council December 2, 1985 Amended by City Council June 28, 2004 Amended by City Council June 23, 1986 Amended by City Council June 20, 2005 Amended by City Council June 22, 1987 Amended by City Council June 12, 2006 Amended by City Council August 8, 1988 Amended by City Council June 11, 2007 Amended by City Council November 28, 1988 Amended by City Council June 09, 2008 Amended by City Council June 26, 1989 Amended by City Council June 15, 2009 Amended by City Council May 14, 1990 Amended by City Council June 28, 2010 Amended by City Council June 24, 1991 Amended by City Council June 20, 2011 Amended by City Council June 22, 1992 Amended by City Council June 18, 2012 Amended by City Council June 23, 1993 Amended by City Council June 03, 2013 Amended by City Council June 20, 1994 Amended by City Council June 16, 2014 Amended by City Council June 19, 1995 Amended by City Council June 15, 2015 Amended by City Council June 24, 1996 Amended by City Council June 13, 2016 Amended by City Council June 23, 1997 Amended by City Council June 27, 2017 Amended by City Council January 26, 1998 Amended by City Council November 5, 2018 Amended by City Council June 22, 1998 Amended by City Council June 24, 2019 Amended by City Council June 28, 1999 Adopted by City Council June 22, 2020 Amended by City Council June 19, 2000 10 Attachment A - 10 Attachment A APPENDIX A EXPLANATION OF PERMITTED INVESTMENTS 1. U.S. Government Securities: United States Treasury notes, bonds, bills, or certificates of indebtedness or those for which the faith and credit of the United States are pledged for the payment of principal and interest. 2. U.S. Government Agency Securities: U.S. Government Agency Obligations include the securities of the Federal National Mortgage Association (FNMA), Federal Land Banks (FLB), Federal Intermediate Credit Banks (FICB), banks for cooperatives, Federal Home Loan Banks (FHLB), Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Student Loan Marketing Association (SLMA), Small Business Administration (SBA), Federal Farm Credit (FFC), and Federal Agricultural Mortgage Corporation (FAMC or FMAC). Federal Agency securities are debt obligations that essentially result from lending programs of the Government. Federal agency securities differ from other types of securities, as well as among themselves. Their characteristics depend on the issuing agency. It is possible to distinguish three types of issues: (A) participation certificates (pooled securities), (B) Certificates of interest (pooled loans), (C) notes, bonds, and debentures. The securities of a few agencies are explicitly backed by the full faith and credit of the U.S. Government. All other issues purchased by the City have the de facto backing from the federal government, and it is highly unlikely that the government would let any agency default on its obligations. 3. Certificates of Deposit: A certificate of deposit (CDs) is a receipt for funds deposited in a bank, savings bank, or savings and loan association for a specified period of time at a specified rate of interest. Denominations are $250,000 and up. The first $250,000 of a certificate of deposit is guaranteed by the Federal Deposit Insurance Corporation (FDIC), if the deposit is with a bank or savings bank, or the Savings Association Insurance Fund (SAIF), if the deposit is with a savings and loan. CDs with a face value in excess of $250,000 can be collateralized by U.S. Government Agency and Treasury Department securities or first mortgage loans. Government securities must be at least 110 percent of the face value of the CD collateralized in excess of the first $250,000. The value of first mortgages must be at least 150 percent of the face value of the CD balance insured in excess of the first $250,000. Generally, CDs are issued for more than 30 days and the maturity can be selected by the purchaser. 4. Bankers' Acceptance: A Banker's Acceptance (BA) is a negotiable time draft or bill of exchange drawn on and accepted by a commercial bank. Acceptance of the draft irrevocably obligates the bank to pay the bearer the face amount of the draft at maturity. BAs are usually created to finance the import and export of goods, the shipment of goods within the United States and storage of readily marketable staple commodities. In over 70 years of usage in the United States, there has been no known instance of principal loss to any investor in BAs. In addition to the guarantee by the accepting bank, the transaction is identified with a specific commodity. Warehouse receipts verify that the pledged commodities exist, and, by definition, these commodities are readily marketable. The sale of the underlying goods generates the necessary funds to liquidate the indebtedness. 11 Attachment A - 11 Attachment A BAs enjoy marketability since the Federal Reserve Bank is authorized to buy and sell prime BAs with maturities of up to nine months. The Federal Reserve Bank enters into repurchase agreements in the normal course of open market operations with BA dealers. As are sold at a discount from par. An acceptance is tied to a specific loan transaction; therefore, the amount and maturity of the acceptance is fixed. 5. Commercial Paper: Commercial paper notes are unsecured promissory notes of industrial corporations, utilities, and bank holding companies. Interest is discounted from par and calculated using actual number of days on a 360 -day year. The notes are in bearer form, with maturities up to 270 days selected by the purchaser, and denominations generally start at $100,000. There is a small secondary market for commercial paper notes and an investor may sell a note prior to maturity. Commercial paper notes are backed by unused lines of credit from major banks. Some issuer's notes are insured, while some are backed by irrevocable letters of credit from major banks. State law limits a City to investments in United States corporations having assets in excess of five hundred million dollars with an "A" or higher rating by a nationally recognized rating service for the issuer's debentures. Cities may not invest more than 25 percent of idle cash in commercial paper. 6. Local Agency Investment Fund Demand Deposit: The Local Agency Investment Fund LAIF) was established by the State to enable treasurers to place funds in a pool for investments. The City is limited to an investment of the amount allowed by LAIF (currently $7540 million). LAIF has been particularly beneficial to those jurisdictions with small portfolios. Palo Alto uses this fund for short-term investment, liquidity, and yield. 7. Repurchase Agreements: A Repurchase Agreement (REPOS) is not a security, but a contractual arrangement between a financial institution or dealer and an investor. The agreement normally can run for one or more days. The investor puts up funds for a certain number of days at a stated yield. In return, the investor takes title to a given block of securities as collateral. At maturity, the securities are repurchased and the funds repaid, plus interest. Usually, amounts are $500,000 or more, but some REPOS can be smaller. 8. Money Market Deposit Accounts: Money Market Deposit Accounts are market -sensitive bank accounts, which are available to depositors at any time, without penalty. The interest rate is generally comparable to rates on money market mutual funds, though any individual bank's rate may be higher or lower. These accounts are insured by the Federal Deposit Insurance Corporation or the Savings Association Insurance Fund. 12 Attachment A - 12 Attachment A 9. Mutual Funds: Mutual funds are shares of beneficial interest issued by diversified management companies, as defined by Section 23701 M of the Revenue and Taxation Code. To be eligible for investment, these funds must: a) Attain the highest ranking in the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services; or b) Have an investment advisor registered with the Securities and Exchange Commission with not less than five years' experience investing in the securities and obligations, as authorized by subdivisions (a) to (n), inclusive, of Section 53601 of the California Government Code, and with assets under management in excess of five hundred million dollars; and c) Invest solely in those securities and obligations authorized by Sections 53601 and 53635 of the California Government Code. Where the Investment Policy of the City of Palo Alto may be more restrictive than the State Code, the Policy authorizes investments in mutual funds that shall have minimal investment in securities otherwise restricted by the City's Policy. Minimal investment is defined as less than 5 percent of the mutual fund portfolio; and d) The purchase price of shares of beneficial interest purchased shall not include any commission that these companies may charge. e) Have a net asset value of $1.00. 10. Callable Securities and Multi -Step-ups: Callable securities are defined as fixed interest rate government agency securities that give the issuing agency the option of returning the invested funds at a specific point in time to the purchaser. Multi -step-ups are government agency securities in which the interest rate increases ("steps -up") at preset intervals, and which also have a callable option that allows the issuing agency to return the invested funds at a preset interval. Callable and multi -step-ups are permitted, provided that: • the potential call dates are known at the time of purchase; • the interest rates at which they "step-up" are known at the time of purchase; and • the entire face value of the security is redeemed at the call date. 13 Attachment A - 13 Attachment A 11. Negotiable Certificates of Deposit (NCD): NCDs are large -dollar -amount, short-term certificate of deposit. Such certificates are issued by large banks and bought mainly by corporations and institutional investors. They are payable either to the bearer or to the order of the depositor, and, being negotiable, they enjoy an active secondary market, where they trade in round lots of $5 million. Although they can be issued in any denomination from $100,000 up, the typical amount is $1 million also called a Jumbo Certificate of Deposit. State law prohibits the investment of local agency funds in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency, or any person with investment decision making authority in the administrative, manager's, budget, auditor -controller's, or treasurer's offices of the local agency also serves on the board of directors, other credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificate of deposit. 12. Medium -Term Corporate Notes: All corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. According to California Government Code Section 53601, "Notes eligible for investment under this subdivision shall be rated in a rating category of "A" or its equivalent or better by a nationally recognized rating service. Purchase of medium -term notes shall include other instruments authorized by this section and shall not exceed 30 percent of the agency's moneys that may be invested pursuant to this section." 13. Supranational Securities: California Government Code Section53601 defines allowable supranational securities as United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, the International Finance Corporation, and Inter -American Development Bank. Supranationals are well capitalized and in most cases have strong credit support from contingent capital calls from their member countries. Section 53601 was amended effective January 1, 2015 to allow local agencies to invest in the senior debt obligations of these three supranational issuers which are eligible for purchase and resale within the United States. These entities were established with the purpose of ending poverty and raising the standard of living around the world through sustainable economic growth. a) The supranationals are international organization owned by member countries. These are: • International Bank for Reconstruction and Development (IBRD or World Bank), a member of the World Bank Group, provides direct loans and guarantees to sovereigns and government -backed projects • International Finance Corporation (IFC), a member of the World Bank Group, supports the creation and growth of private companies through direct lending and equity investment, attracting third party capital, and providing advisory services • Inter -American Development Bank (IADB), a member of the 14 Attachment A - 14 Attachment A Inter -American Development Bank Group, provides loans, grants, and guarantees to sovereigns in Latin America and the Caribbean b) Additional characteristics shared by the IBRD, IFC, and IADB include: • Headquartered in Washington, D.C. with the United States as the largest shareholder of each organization • Rated AAA/Aaa by S&P and Moody's 15 Attachment A - 15 Attachment A APPENDIX B EXPLANATION OF PROHIBITED INVESTMENTS 1. Reverse Repurchase Agreements: A Reverse Repurchase Agreement (Reverse REPO) is a contractual agreement by the investor (e.g. local agency) to post a security it owns as collateral, and a bank or dealer temporarily exchanges cash for this collateral, for a specific period of time, at an agreed -upon interest rate. During the period of the agreement, the local agency may use this cash for any purpose. At maturity, the securities are repurchased from the bank or dealer, plus interest. California law contains a number of restrictions on the use of Reverse REPOS by local agencies. 2. Derivatives: A derivative is a financial instrument created from, or whose value depends on (is derived from), the value of one or more underlying assets or indices. The term "derivative" refers to instruments or features, such as collateralized mortgage obligations, forwards, futures, currency and interest rate swaps, options, caps and floors. Except for those callable and multi- step -up securities as described under Permitted Investments, derivatives are prohibited. Certain derivative products have characteristics which could include high price volatility, liquid markets, products that are not market -tested, products that are highly leveraged, products requiring a high degree of sophistication to manage, and products that are difficult to value. According to California law, a local agency shall not invest any funds in inverse floaters, range notes, or interest -only strips that are derived from a pool of mortgages. 16 Attachment A - 16 Attachment A APPENDIX C GLOSSARY OF INVESTMENT TERMS AGENCIES: Federal agency and instrumentality securities. ASKED: The price at which securities are offered. BID: The price offered by a buyer of securities (when one sells securities, one asks for a bid). See "Offer". BROKER: A person or institution that conducts investment transactions on behalf of the buyer and seller of the investment and earns a commission on the transaction. COLLATERAL: Securities, evidence of deposit, or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMPREHENSIVE -ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) ("CAFR"): The official annual report for the City of Palo Alto. It includes combined financial statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles and pronouncements set forth by the Governmental Accounting Standards Board (GASB). The CAFR ACFR also includes supporting schedules that are necessary to demonstrate compliance with finance -related legal and contractual provisions, extensive introductory material, and a detailed statistical section. COUPON: The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value or the certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: (1) delivery versus payment (DVP); and (2) delivery versus receipt (DVR). DVP is delivery of securities with an exchange of money for the securities. DVR is delivery of securities with an exchange of a signed receipt for the securities. DISCOUNT: The difference between the acquisition cost of a security and its value at maturity when quoted at lower than face value. A security that sells below original offering price shortly after sale, is also is considered to be at a discount. DISCOUNT SECURITIES: Non -interest -bearing money market instruments that are issued a discount and that are redeemed at maturity for full face value (e.g., U.S. Treasury Bills). 17 Attachment A - 17 Attachment A DIVERSIFICATION: Dividing investment funds among a variety of securities that offer independent returns. FEDERAL AGRICULTURAL MORTGAGE CORPORATION ("FAMC" or "FMAC"): A federal agency established in 1988 to provide a secondary market for farm mortgage loans. Informally called Farmer Mac. FEDERAL CREDIT AGENCIES: Agencies of the Federal Government that were established to supply credit to various classes of institutions and individuals (e.g., S&Ls, small business firms, students, farmers, farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION ("FDIC"): A federal agency that insures all types of deposits received at an insured bank, including deposits in a checking account, negotiable order of withdrawal (NOW) account, savings account, money market deposit account (MMDA) or time deposit such as a certificate of deposit (CD). FDIC insurance covers depositors' accounts at each insured bank, dollar -for -dollar, including principal and any accrued interest through the date of the insured bank's closing, up to the insurance limit. The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments are purchased at an insured bank. The FDIC does not insure U.S. Treasury bills, bonds or notes, but these investments are backed by the full faith and credit of the United States government. The standard maximum deposit insurance amount is described as the "SMDIA" in FDIC regulations. The SMDIA is $250,000 per depositor, per insured bank. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open -market operations. FEDERAL HOME LOAN BANKS ("FHLB"): Government -sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions, and insurance companies. The mission of the FHLBs is to liquefy the housing -related assets of its members, who must purchase stock in their District Bank. FEDERAL NATIONAL MORTGAGE ASSOCIATION ("FNMA"): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder -owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL OPEN MARKET COMMITTEE ("FOMC"): The FOMC consists of seven 18 Attachment A - 18 Attachment A members of the Federal Reserve Board and five of the 12 Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of government securities in the open market, as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven -member Board of Governors in Washington, D.C., 12 regional banks, and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ("GNMA" or "Ginnie Mae"): Securities that influence the volume of bank credit that is guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. A security holder is protected by the full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA, or FMHM mortgages. The term "pass-throughs" is often used to describe Ginnie Maes. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow, and reasonable amount can be done at those quotes. LOCAL GOVERNMENT AGENCY: A local government agency is any city, county, city and county, district, or other local governmental body or corporation, including the California State Universities (CSU) and University of California (UC) systems, K-12 schools and community colleges empowered to expend public funds. LOCAL GOVERNMENT INVESTMENT FUND ("LAIF"): Monies from local governmental units may be remitted to the California State Treasurer for deposit in this special fund for the purpose of investment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase -reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer (lender) to liquidate the underlying securities in the event of default by the seller (borrower). MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (e.g., bills, commercial paper, and bankers' acceptances) are issued and traded. OFFER: The price asked by a seller of securities (when one buys securities, one asks for an offer). See "Asked" and "Bid". 19 Attachment A - 19 Attachment A OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO: A collection of securities that an investor holds. PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions, and monthly financial statements to the Federal Reserve Bank of New York, and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) -- registered securities broker -dealers, banks, and a few unregulated firms. PRUDENT INVESTOR RULE: An investment standard cited in the California Government Code Section 53600 et seq. Under this standard, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. QUALIFIED PUBLIC DEPOSITORIES: A financial institution that: (1) does not claim exemption from the payment of any sales, compensating use, or ad valorem taxes under the laws of this state; (2) has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability; and (3) has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank's vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES AND EXCHANGE COMMISSION: An agency created by Congress to administer securities legislation for the purpose of protecting investors in securities transactions. STRUCTURED NOTES: Notes issued by instrumentalities (e.g., FHLB, FNMA, SLMA) and by corporations, that have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative -based returns) in their debt structure. The market performance of structured notes is affected by fluctuating interest rates; the volatility of imbedded options; and shifts in the yield curve. 20 Attachment A - 20 Attachment A SUPRANATIONALS: International institutions that provide development financing, advisory services and/or financial services to their member countries to achieve the overall goal of improving living standards through sustainable economic growth. The California Government Code Section 53601 allows local agencies to purchase the United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter - American Development Bank (IADB). TIME CERTIFICATE OF DEPOSIT: A non-negotiable certificate of deposit, which cannot be sold prior to maturity. TREASURY BILLS: A non -interest -bearing discount security that is issued by the U.S. Treasury to finance the national debt. Most T -bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term, coupon -bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of more than 10 years. TREASURY NOTES: Medium -term, coupon -bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of two to 10 years. YIELD: The rate of annual income return on an investment, expressed as a percentage. YIELD -TO -CALL (YTC): The rate of return an investor earns from a bond assuming the bond is redeemed (called) prior to its nominal maturity date. YIELD -TO -MATURITY: The current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity. ZERO -COUPON SECURITIES: Security that is issued at a discount and makes no periodic interest payments. The rate of return consists of a gradual accretion of the principal of the security and is payable at par upon maturity. 21 Attachment A - 21 CVTY 0 PALO ALTO City of Palo Alto (ID # 12138) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: Approve CALNET Next Generation Contracts for Wireless and Data Communications Title: Approval to utilize California Dept. of Technology CALNET Cellular Voice and Data Services contract (C4-CVD-19-001-03) with CELLCO PARTNERSHIP D/B/A VERIZON WIRELESS through May 22, 2023 and including possible extension through May 22, 2027, with an anticipated cost of $350,000 annually; CALNET Data Networks and Communications Services contract (C4- DNCS-19-001-40) with AT&T CORP. through June 30, 2025 and including possible extension through June 30, 2028; CALNET Legacy Telecommunications Voice and Data Services contract (C4 -LEG -12 -10 -TS -01) with AT&T CORP. through January 2, 2026 and including possible extension through January 2, 2029; and CALNET Cellular Voice and Data Services contract (C4-CVD-19-001-04) with AT&T MOBILITY through June 30, 2023 and including possible extension through June 30, 2027, with an anticipated cost of $300,000 annually From: City Manager Lead Department: IT Department Recommendation Staff recommends that Council approve and authorize the City Manager or their designee to: 1) Execute the Authorization to Order forms to utilize the California Department of Technology (CDT) CALNET Cellular Voice and Data Services contract ( 19-001-03) with Cellco Partnership d/b/a Verizon Wireless through May 22, 2023 and including two (2) extensions of two (2) years per extension, provided that CDT exercises such extensions, for a total possible term not to exceed May 22, 2027, at an anticipated cost of $350,000 annually; and 2) Execute the Authorization to Order forms to utilize the CDT CALNET Data Networks and Communications Services contract (C4-DNCS-19-001-40) with AT&T Corp. through June 30, 2025 and including three (3) extensions of one (1) City of Palo Alto Page 1 year per extension, provided that CDT exercises such extensions, for a total possible term not to exceed June 30, 2028; CDT CALNET Legacy Telecommunications Voice and Data Services contract (C4 -LEG -12 -10 -TS -01) with AT&T Corp. through January 2, 2026 and including three (3) extensions of one (1) year per extension, provided that CDT exercises such extensions, for a total possible term not to exceed January 2, 2029; and CDT CALNET Cellular Voice and Data Services contract (C4-CVD-19-001-04) with AT&T Mobility through June 30, 2023 and including two (2) extensions of two (2) years per extension, provided that CDT exercises such extensions, for a total possible term not to exceed June 30, 2027, at an anticipated cost of $300,000 annually. Executive Summary The California Department of Technology (CDT) issued the Next Generation CALNET Cellular Voice and Data Services contract (C4-CVD-19-001-03) with Cellco Partnership d/b/a Verizon Wireless, which replaced the National Association of State Procurement Officials (NASPO) ValuePoint California Participating Addendum (NASPO #1907). The City is currently leveraging the NASPO #1907 contract for wireless communication services; however, this contract is expiring, and agencies can no longer utilize this contract. Council had previously approved the utilization on December 2, 2019 (10811). CDT also issued the Next Generation CALNET Data Networks and Communications Services contract (C4-DNCS-19-001-40) with AT&T Corp., CALNET Legacy Telecommunications Voice and Data Services contract (C4 -LEG -12 -10 -TS -01) with AT&T Corp., and CALNET Cellular Voice and Data Services contract (C4-CVD-19-001-04) with AT&T Mobility, replacing the soon-to-be-sunsetting CALNET 3 contracts that the City has been utilizing (which Council previously approved on June 22, 2020 (10163)). Background The CALNET Next Generation contracts were competitively bid by CDT, and provide the City with discounted pricing, greater service levels, protective terms and conditions, and dedicated account representatives. Approximately $350,000 annual expenses are expected for cellular communications and $300,000 for data communications. Discussion Staff performed an analysis of the Next Generation CALNET contracts and the new NASPO replacement of the retiring NASPO contract for cellular services. The State of California decided not to pursue a participating addendum for the new NASPO contract, focusing instead on CDT CALNET contracts. Given the benefits of the CALNET contracts detailed in this staff report, the City chose the CALNET contracts for City services. Comparison chart between NASPO and Next Generation CALNET for wireless services: City of Palo Alto Page 2 Wireless New NASPO Contract Price Per Month Next Generation CALNET Price Per Month Consumption Rate Plan (per minute rates) Not available $0.06/per minute Unlimited Data $39.99 $38.94 Support Provided Government Enterprise Advisor, Major Account Manager, 1- 800 Number Government Enterprise Advisor, Major Account Manager, 1- 800 Number Plan rate changes moving to new contract Existing plans remain the same Existing plans remain the same State of California procurement No — Utah is the lead state. Bound by Utah state law Yes, available for local agencies and jurisdictions to leverage CALNET contracts provide robust, reliable, and high -availability telecommunications services at special rates. CALNET offers awarded contractors a more extensive customer base than any other qualified government purchasing vehicle in California, encouraging contractors to provide better services at lower pricing and more favorable terms, conditions, and Service Level Agreements (SLAs). The City's bid process, per Palo Alto Municipal Code section 2.30.360(j), allows the use of intergovernmental cooperative purchasing agreements. CALNET contracts are spearheaded by the CDT which competitively solicits the services and uses the State's considerable bargaining power to negotiate favorable services, pricing and terms for state and local public entities to use with the providers CDT contracts with. City staff received pricing proposals from Verizon and AT&T for the contract years covered by these contracts. CALNET benefits: • Cost-effective, reliable services • Competitively bid • Industry -standard or better Service Level Agreements • Excellent customer support • No term commitment for standard catalog priced services • Terms and conditions that are protective of the public entity The City currently has an account with Verizon Wireless for cellular services with the IT Department as the master account. Sub -accounts are created under the master account for each city department as necessary based on department usage. Each city department is responsible for the payment of its respective invoices each month. There are also a few wireless accounts using AT&T, predominately used for public safety. Will move the public safety accounts to the new CALNET Next Generation contract. There City of Palo Alto Page 3 are over 700 cellular devices in use by the City. Cellular communications include: 1. Cell phone access and data plans 2. Mobile hotspots and hardware (tablets, phones, accessories, etc.) 3. Device account management 4. Integrated Mobile Device Management (MDM) services that will support, manage, and secure devices. For data communications, the City utilizes AT&T services. Data communications include: 1. Core Services: voice and data services such as business access lines, central office trunks, and T1s 2. Long Distance Service: voice network services and inter -state and international calling. 3. Dedicated Account management 4. Telecommunication hardware These services ensure continued communication across all City services and operations including public safety and utilities. If not approved, this would significantly inhibit the City's ability to deliver critical services 24/7. A solicitation specifically completed by Palo Alto is an alternative, however, would likely result in the same or increased cost due to a smaller share of the market and would require staff resources to execute the procurement process. This cooperative contract is an efficient use of resources in compliance with the purchasing code to ensure continuity of services and at a reasonable and appropriate price. Resource Impact The recommendations in this report are not anticipated to have any additional resource impact. The annual cost of these contracts, citywide, is estimated to remain at approximately $350,000 for cellular communications and $300,000 annually for data communications. Funding for these contracts is included in the FY 2022 Operating Budget, scheduled for City Council adoption on June 21, 2021. Funding for FY 2022 and beyond is subject to City Council approval of the annual appropriation of funds through the annual budget process. Stakeholder Engagement The CALNET Next Generation contracts are a California State contract that was competitively bid and allows local governments to leverage the State's competitive telecommunication rates and savings. Environmental Review Approval of this contract does not constitute a project under the California Environmental Quality Act (CEQA); therefore, no Environmental Assessment is required. City of Palo Alto Page 4 CVTY 0 PALO ALTO City of Palo Alto (ID # 12143) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: Amendment to Extend Geodesy Contract for Three Additional Years Title: Approval of Contract Amendment Number Three to Contract Number C15159248 With Geodesy, to Extend the Term for Three -years Ending June 30, 2024, and add $535,000 for a new Not -To -Exceed Amount of $1,930,000, for Geographic Information Systems (GIS) Maintenance, Support, Consulting and Department -Specific GIS Data Support Services From: City Manager Lead Department: IT Department Recommendation Staff recommends that Council approve and authorize the City Manager or their designee to execute Contract Amendment No. 3 to Contract No. C15159248 with Geodesy, extend the term for three years (July 1, 2021 — June 30, 2024), and increase compensation by $535,000 for a total contact not -to -exceed amount of $1,930,000. Executive Summary The citywide Geographic Information System (GIS) solution consists of geographic information, software applications, an information network, and a management structure providing GIS information to all users. The GIS solution supports all departments and mission -critical departmental business processes, including Utilities, Police, Fire, and the Office of Emergency Services. Background The City executed this contract originally in June 2015 with Geodesy for an initial three year period (CMR 5745). Geodesy was assessed in Fiscal Year 2017 to see how it aligns with the future GIS needs of the City. The recommendation was to move to a new system to better fit with the City's growing need for GIS capabilities through that assessment. In Fiscal Year 2018, the decision was to migrate to Environmental Systems Research Institute, Inc. (ESRI) as the new GIS platform. With the new ESRI GIS system, the City has a comprehensive and industry -dominant solution, which will have an ecosystem of tools to alleviate functional gaps in the Geodesy system. Both systems will be running in parallel until ESRI fully replaces Geodesy, estimated in Fiscal Year City of Palo Alto Page 1 2024. Once ESRI is fully functional, the Geodesy platform will be retired, and this contract will not be required. Staff has determined this contract is appropriate for exemption from competitive solicitation as impractical and unavailing under PAMC 2.30.360(b)(2) as the Geodesy platform will be phased out and decommissioned once the ESRI platform is fully functional. Council has previously approved amendment number two, CMR 9285, extending the term and adding compensation, on November 26, 2018. Discussion Geodesy will perform the following tasks in support of the City's GIS needs for fiscal years 2022 — 2024 after which use of the system is expected to sunset: 1. Task 1: Standard software maintenance and support: $40,000 (Fiscal Year 2022), $30,000 (Fiscal Year 2023), $15,000 (Fiscal Year 2024). 2. Task 2: Consulting Services on projects as directed by City's GIS Program Manager with approval by the GIS Steering Committee, including software enhancements and data support: not to exceed $75,000 per fiscal year. As directed, the Consultant will: • Make feature enhancements to the existing GIS as warranted. • Assist City staff with the City's migration to the new ESRI based GIS system and help port legacy systems to the new platform as warranted. • Assist City staff with key GIS Integrations with other enterprise systems. • Analyze and design GIS data exchange with surrounding jurisdictions, including cities, counties, public utilities, and Stanford University. Update • Foundation base map as appropriate with this information. • Analyze and update foundation base map data to meet new requirements from City staff, other public agencies, and the public. • Conceive, create, and update GIS training materials using PowerPoint and Video - based (Camtasia) software for exercises linked to GIS applications. • Assist GIS staff in teaching in-house training classes on GIS applications, demonstrating all functionality of Encompass software in the context of Palo Alto's operations. 3. Task 3: Department -specific data support work: not to exceed $75,000 per fiscal year. This work will be funded by the department requesting the work, and IT will manage it. As directed by City's GIS Program Manager, the Consultant will: • Acquire and analyze quarterly updates of Santa Clara County (SCC) Recorder's office map documents. Tasks include: identifying areas affecting Palo Alto's foundation base map, editing all cadastral data impacted by information on these City of Palo Alto Page 2 documents (i.e. parcel lines, subdivisions, parcel maps, certificates of compliance, easements, and other data points.) by using distance and bearing methods within the Encompass Traverse toolset and linking all relevant documents to appropriate features in the foundation base map by using GIS- based document management functionality. • Acquire and analyze annual updates of the Santa Clara County Assessor's office parcel rolls for Palo Alto. Tasks include comparing these listings with the GIS data to identify changes in cadastral data affecting the foundation base map, reconciling these changes, and making edits as necessary by using the tools and techniques described previously. • Work with City's Real Property staff to review archives of consummated transaction files. Identify cadastral data changes made by those transactions (i.e., easement deeds, right-of-way transfers, and additional transactions as required.) edit the GIS foundation base map to reflect these changes. Link a digital copy of the file and other relevant documents to the affected parcels in the GIS. • Work on enhancements as requested by City department and approved by IT GIS Program Manager. Resource Impact Funding for the maintenance fees and the Information Technology Department tasks for this contract are included in the Information Technology Fund of the FY 2022 Operating Budget, scheduled for City Council adoption on June 21, 2021. The not -to - exceed $75,000 for department -specific data support work will be expensed to the department or departments requesting the work. Funding for FY 2022 and beyond is subject to City Council approval of the appropriation of funds through the annual budget process. This contract is on the City's professional services template, which permits the City to terminate without cause/for convenience by providing written notice to the contractor. In the event the City finds itself facing a challenging budget situation, and it is determined that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include termination due to non -appropriation of funds or amending the contract to reduce the cost, for example, by reducing the scope of work. The contract may also be temporarily suspended by written notice of the City Manager. Stakeholder Engagement The designated 'GIS Manager' in the Information Technology Department has been working with several departments to review the current GIS capabilities, understand future requirements, and leverage the new GIS environment. Departments have been engaged and are looking forward to the enhancements. Environmental Review Approval of this agreement does not constitute a project under the California City of Palo Alto Page 3 Environmental Quality Act (CEQA). Therefore, an environmental assessment is not required. City of Palo Alto Page 4 CITY OE PALO ALTO City of Palo Alto (ID # 12164) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: Contract Amendment #1 for C19174715 Swatt Miers Architects, Inc Title: Approval of Contract Amendment Number 1 to Contract Number C19174715 with Swatt Miers Architects, Inc in the Amount of $89,000 for the Animal Shelter Renovation, Capital Improvement Program Project, PE -19002 From: City Manager Lead Department: Public Works Recommendation Staff recommends that the City Council approve and authorize the City Manager or his designee to execute Amendment No. 1 to Contract C19174715 with Swatt Miers Architects, Inc. (Attachment A)) for additional design services in an amount not to exceed $89,000 for the Animal Shelter Renovation, Capital Improvement Program Project PE -19002. This amendment results in a revised total contract not -to -exceed amount of $486,725. Background/ Discussion For the last forty years, the City of Palo Alto has operated a full -service animal shelter located at 3281 East Bayshore Road. The animal services include a spay and neuter clinic, vaccine clinic, and adoption services for all types of animals. In November 2018, Council approved an operating agreement with Pets In Need (PIN) (Staff Report ID #9822) to provide full -service shelter operation at the Palo Alto Animal Shelter. The agreement identifies the following facility improvement projects the City is responsible for and their estimated completion and installation dates: • Minor improvements to the existing dog kennels — March 2019 • Install a modular office/classroom —July 2019 • Remodel and expand the medical suite — November 2019 • Addition of 16 new dog kennels (new kennel building) —July 2020 In February 2019, City Council approved and authorized the City Manager to execute C1917415 with Swatt Miers Architects, Inc. (SMA) for design services in an amount not -to -exceed $397,725 including basic services and additional services (Staff Report ID #10057). The contract with SMA provides design services for a new one -level dog kennel building and the upgrades to City of Palo Alto Page 1 the existing medical area at the animal shelter. Construction of the medical suite was completed in September 2020. The architectural review process and round 1 of the building permit review of the new kennel building design have been completed. The current cost estimate for construction of the new kennel building is greater than the remaining available budget. City staff and PIN are in discussions about how to bridge that gap. Due to the approximately $500,000 funding gap and delayed schedule in the construction of the new kennel building, PIN has requested that the City prioritize using available funding to provide upgrades to the existing kennel building that improve the day-to-day conditions for the animals. These upgrades include acoustics, mechanical system, epoxy floor and paint, and replacing the existing kennel caging system. Amendment No. 1 to the SMA contract includes the design costs for these upgrades to the existing kennel building and required code upgrades associated with permitting the new and existing kennel building. While not required by the agreement between the City and PIN, these improvements fall within the categories of improvement described in the agreement for the existing dog kennels, and do not require an amendment to the agreement. Timeline The upgrades to the existing kennel building are expected to be completed within one year. Resource Impact Funding for the contract amendment recommended in this report is available in the Fiscal Year 2021 Capital Improvement Program Animal Shelter Renovations project (PE -19002). Stakeholder Outreach City staff has coordinated with PIN staff to determine priority of work to done at the Animal Shelter. Policy Implications This project is in alignment with Comprehensive Plan Policy C-3.2 - Reinvest in aging facilities to improve their usefulness and appearance. Avoid deferred maintenance of City infrastructure. Environmental Review The improvements to the existing kennel building are categorically exempt from California Environmental Quality Act (CEQA) under Section 15301(a) of the CEQA guidelines as repair, maintenance or minor alteration of existing facilities, and no further environmental review is necessary. The new kennel building is categorically exempt from CEQA guideline Section 15301(e1) as addition to existing structures that will not result in an increase of less than 2,500 square feet. Attachments: • Attachment A: Swatt Miers Architects, Inc. C19174715 Amendment #1 City of Palo Alto Page 2 DocuSign Envelope ID: 91A009AE-FFFB-4C58-809F-746FA3FOBFD9 Attachment A AMENDMENT NO. 1 TO CONTRACT NO. C19174715 BETWEEN THE CITY OF PALO ALTO AND SWATT MIERS ARCHITECTS, INC. This Amendment No. 1 (this "Amendment") to Contract No. C19174715 (the "Contract" as defined below) is entered into as of June 21, 2021, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and SWATT MIERS ARCHITECTS, INC., a California corporation, located at 5845 Doyle Street, Suite 104, Emeryville, CA 94608 ("CONSULTANT "). CITY and CONSULTANT are referred to collectively as the "Parties" in this Amendment. RECITALS A. The Contract (as defined below) was entered into by and between the Parties for the provision of professional design services at Palo Alto Animal Services, as detailed therein. B. The Parties now wish to amend the Contract in order to increase the scope of services to upgrade the existing kennel building including ADA (Americans with Disabilities Act) compliance, increase the total not -to -exceed amount of compensation by $89,000, from $397,725 to a new total not -to -exceed amount of $486,725, and extend the term through June 30, 2022, 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. C19174715 between CONSULTANT and CITY, dated February 25, 2019. 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: "The term of this Agreement shall be from the date of its full execution through completion of the services in accordance with the Schedule of Performance attached at Exhibit "B" through June 30, 2022 unless terminated earlier pursuant to Section 19 of this Agreement." SECTION 3. Section 4, "NOT TO EXCEED COMPENSATION," of the Contract is hereby amended to read as follows: "The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit "A" (also referred to herein as the "Basic Services"), and reimbursable expenses, shall not exceed Four Hundred Thirty -Seven Thousand Five Hundred Sixty -Eight Dollars ($437,568). CONSULTANT agrees to complete all Basic Services, including reimbursable Vers.: Aug. 5, 2019 Page 1 of 10 DocuSign Envelope ID: 91A009AE-FFFB-4C58-809F-746FA3FOBFD9 expenses, within this amount. In the event Additional Services (defined below) are authorized, the total compensation for Basic Services, Additional Services and reimbursable expenses shall not exceed Four Hundred Eighty -Six Thousand Seven Hundred Twenty -Five Dollars ($486,725). The applicable rates and schedule of payment are set out at Exhibit "C- 1", entitled "SCHEDULE OF RATES," which is attached to and made a part of this Agreement. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. "Additional Services" shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit SECTION 4. The following exhibits to the Contract are hereby amended and replaced to read as set forth in the attachments to this Amendment, and are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit "A" entitled "SCOPE OF SERVICES, AMENDMENT NO. 1",AMENDED, REPLACES PREVIOUS. b. Exhibit "B" entitled "SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1", AMENDED, REPLACES PREVIOUS. c. Exhibit "C" entitled "COMPENSATION, AMENDMENT NO. 1", AMENDED, REPLACES PREVIOUS. 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. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Vers.: Aug. 5, 2019 Page 2 of 10 DocuSign Envelope ID: 91A009AE-FFFB-4C58-809F-746FA3FOBFD9 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 SWATT MIERS ARCHITECTS, INC. Officer 1,_ DocuSigned by: City Manager APPROVED AS TO FORM: City Attorney or designee By: BtiLit V�� Path kY FR4RO3RfRR794R4 Name: George Miers Title: Partner Officer 2 e(quipe for Corp. or LLC) rolacyli SWa{f By: C698DD5EF8E84D0... Name: Robert Swatt Title: Partner Attachments: Exhibit "A" entitled "SCOPE OF SERVICES, AMENDMENT NO. 1" (AMENDED -REPLACES PREVIOUS) Exhibit "B" entitled "SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1" (AMENDED -REPLACES PREVIOUS) Exhibit "C" entitled "COMPENSATION, AMENDMENT NO. 1" (AMENDED -REPLACES PREVIOUS) Vers.: Aug. 5, 2019 Page 3 of 10 DocuSign Envelope ID: 91A009AE-FFFB-4C58-809F-746FA3FOBFD9 EXHIBIT "A" SCOPE OF SERVICES, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) 1. INTRODUCTION For the last forty years, the City of Palo Alto has operated a full -service animal shelter located at 3281 E. Bayshore Road. The animal services include a spay and neuter clinic, vaccine clinic, and adoption services for all types of animals. In 2018, the City entered into a private -public partnership with Pets In Need (PIN), which calls for renovations to the existing animal shelter building. This Agreement with Consultant is to provide design services for the renovation of the existing building, specifically, for Consultant to design a new one -level kennel building extension and to upgrade the existing medical area at the existing animal shelter. The existing medical area consists of prep, recovery and storage areas, an office and surgery room. The existing areas are small for their purposes, and will be redesigned to increase space for procedures and for more and different types of care and equipment. The Consultant shall refer to the Asbestos Report from City for the animal shelter for planning and design. 2. SCOPE OF SERVICES Phase 1 Tasks. The Consultant's Basic Services for the medical suite and new kennel building, respectively, consist of five Phase 1 Tasks: Task 1, Schematic Design; Task 2, Design Development; Task 3, Construction Documents; Task 4, Permitting; and Task 5, Construction Administration. Each of tasks 1-5, as further described below, are required to be performed separately for both the medical area and new kennel. These two projects also require separate permit and bid documents with their own schedules. In addition, the Consultant shall present the design of the new kennel building to Palo Alto's Architectural Review Board (ARB). Phase 1, Tasks 1-5 are further detailed below. Phase 2 Tasks. In addition, the Consultant will perform the following Basic Services: Phase 2 Tasks, which include: Task 6, Existing Kennel Upgrade Design; Task 7, Lighting and HVAC Permit/Construction Documents; Task 8, Existing Kennel Maintenance Construction Documents; Task 9, Existing Kennel Construction Administration; and Task 10, ADA Design for New Kennel. Phase 2, Tasks 6-10 are further detailed below. PHASE 1, TASKS 1-5 IN FURTHER DETAIL: Task 1. Schematic Design 1.1 Project start-up and programming a. Consultant and Design Team shall meet with City and Pets In Need (PIN) representatives (2 meetings @ 1 hour each). b. Consultant shall review record drawings, reports and studies provided by City. Vers.: Aug. 5, 2019 Page 4 of 10 DocuSign Envelope ID: 91A009AE-FFFB-4C58-809F-746FA3FOBFD9 1.2 Prepare schematic a. Consultant shall review the Geotechnical Report and site survey provided by the City. b. Consultant shall conduct code analysis and ADA assessment. c. Consultant shall coordinate design with City and PIN representatives. d. Consultant shall meet with City and PIN (1 meeting @ 2 hours). e. Consultant shall prepare outline specifications and schedule for project. f. Consultant shall submit an electronic schematic design package to City for review which shall be compromised of the site (plan), architectural (architectural plans, elevations, and sections), structural (basic structural systems), and any relevant supporting material, including material boards. 1.3 Upon completion of schematic design, Consultant shall provide a schematic —level construction cost estimate for the Project. Consultant shall meet with City and PIN to review cost estimate and compare it to the construction budget to identify opportunities for enhancement or necessity for value engineering. 1.4 Consultant shall coordinate and meet with project team, as needed, including Public Works Engineering, Fire, Planning, Building and Utilities Engineering. 1.5 Consultant shall assist the City in obtaining ARB approval required for implementation for the work. The Consultant shall prepare presentation materials, required drawing sets and present the schematic design to City Boards and Commissions (2 meetings @ 2 hours each with Architectural Review Board (ARB)). Task 2. Design Development 2.1 Prepare design development package a. Consultant shall refine and update schematic design drawings in response to comments from ARB and City representatives. b. Consultant shall develop interior, building and site details. c. Consultant shall prepare in -progress specifications for projects. d. Consultant shall develop interior/exterior design. e. Consultant shall prepare interior/exterior product/finish boards. 2.2 Consultant shall submit an electronic design development package to City for review which shall include the architectural, structural, and building systems drawings, and any relevant drawings and materials. 2.3 Consultant shall coordinate and meet with project team, as needed, including Public Works Engineering, Fire, Planning, Building and Utilities Engineering. 2.4 Upon completion of design development, Consultant shall a provide design development - level construction cost estimate and a project schedule including time for permits required. Vers.: Aug. 5, 2019 Page 5 of 10 DocuSign Envelope ID: 91A009AE-FFFB-4C58-809F-746FA3FOBFD9 Task 3. Construction Documents 3.1 Consultant shall prepare construction documents a. Consultant shall refine and update design development drawings. b. Consultant shall prepare technical specifications for project in CSI format. c. Consultant shall coordinate the technical specifications with City's General Conditions and Construction Contract template. d. Consultant shall refine interior design. e. Consultant shall develop final interior product/finish/furnishing boards. f. Consultant shall coordinate with City's design team. 3.2 Consultant shall submit electronic sets of the 65% and 95% construction documents package to City for review which shall include the architectural, structural, and building systems drawings, and any relevant drawings, and materials and specifications. Anticipated plan sheets for submittal to the City shall include but not be limited to the following: 1. Title sheet 2. Stage construction plan and notes 4. Architectural exterior and interior plans, elevation and finish schedule 5. Structural plans and details 6. MEPF plans (including upgrading and relocation of electrical panel) 7. Typical cross sections 8. Cabinetry, doors and miscellaneous details. 3.3 Consultant shall provide a 50% and 80% construction document cost estimate and updated project schedules. Task 4. Permitting 4.1 Consultant shall assist the City in obtaining all building permits, and other permits as applicable, required for implementation of the work. 4.2 Consultant shall provide final 100% construction documents, estimated timeline and cost estimate to City. All drawings shall be delivered to the City in AutoCAD 2013 and PDF formats. 4.3 Upon completion of construction documents, Consultant shall provide a final construction cost estimate and a final estimated construction timeline for the Project. Task 5. Construction Administration 5.1 The Consultant shall provide assistance to City staff (e.g. pre -bid meeting with prospective bidders, issuance of addenda, etc.) during the bidding phase of the project as well as construction phase services to be provided (e.g. assistance with Requests for Information, Vers.: Aug. 5, 2019 Page 6 of 10 DocuSign Envelope ID: 91A009AE-FFFB-4C58-809F-746FA3FOBFD9 review of contractor submittals, review of change order requests, periodic construction observation to ensure compliance with design, preparation of record drawings, etc.). PHASE 2, TASKS 6-10 IN FURTHER DETAIL: Task 6 — Existing Kennel Upgrade Design 6.1 Site Survey. Perform site survey and produce drawings to document the existing conditions at the existing kennel facility. This will include survey of the site, building, structure, electrical, gas, and mechanical systems. 6.2 Lighting and HVAC System Investigation. Consultant, with the assistance of Electrical, Structural and Mechanical Engineers will review the field conditions and provide possible solutions to upgrade the lighting and mechanical systems in the kennel as required. Consultant will review with the City and facility operator. 6.3 Lighting and HVAC Design. Upon approval from the City and facility operator, the Consultant will develop the design with drawings and specifications. 6.4 Existing Kennel ADA for Permit Drawings. Consultant to review existing conditions and provide accessible solutions related to the existing kennel improvements. Task 7 — Lighting and HVAC Permit/Construction Documents Consultant will complete the documentation for permit submittal and construction documents. Task 8 — Existing Kennel Maintenance Construction Documents Consultant will provide construction drawings and specifications for additional items for the existing kennel improvements including flooring, finishes, mastic ACT wall/ceiling, trench drain covers and kennel upgrades (new interior and exterior kennel cages + doors, new guillotine door assemblies and new infill side panels, etc.). Task 9 — Existing Kennel Construction Administration Consultant will provide services during the course of construction, reviewing Requests For Information, Submittals, and required field observations. Task 10 - ADA Design for New Kennel Consultant will perform site survey and provide documentation to coordinate required ADA improvements based on 'ADA Transition Plan' as supplied by the City. This work includes landscape elements and features at the existing facility. Vers.: Aug. 5, 2019 Page 7 of 10 DocuSign Envelope ID: 91A009AE-FFFB-4C58-809F-746FA3FOBFD9 EXHIBIT "B" SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) CONSULTANT shall perform the Services so as to complete each milestone (task) 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). Milestones (Tasks 1-5) Completion (No. of Weeks From NTP for Tasks 1-5) Medical Upgrade Area* 1. Schematic Design 2 2. Design Development 8 3. Construction Documents 12 4. Permitting 18 5. Construction Administration 42 New Kennel Building 1. Schematic Design 18 2. Design Development 24 3. Construction Documents 32 4. Permitting 41 5. Construction Administration 80 * Medical suite is the priority under Phase 1 Tasks 1-5. Milestones (Tasks 6-10) Completion (No. of Weeks From NTP for Tasks 6-10) 6. Existing Kennel Upgrade Design 8 7. Lighting and HVAC Permit/Construction Documents 8 8. Existing Kennel Maintenance Construction Documents 6 9. Existing Kennel Construction Administration 52 10. ADA Design for New Kennel 8 Vers.: Aug. 5, 2019 Page 8 of 10 DocuSign Envelope ID: 91A009AE-FFFB-4C58-809F-746FA3FOBFD9 EXHIBIT "C" COMPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES REVIOUS) The CITY agrees to compensate the 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 hourly rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY's Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services do not exceed the amounts set forth in Section 4 of this Agreement. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 (Schematic Design —medical suite and new kennel) Task 2 (Design Development —medical suite and new kennel) Task 3 (Construction Documents —medical suite and new kennel) Task 4 (Permitting —medical suite and new kennel) Task 5 (Construction Administration —medical suite and new kennel) Task 6 (Existing Kennel Upgrade Design) Task 7 (Existing Kennel Permit and Construction Documents) Task 8 (Existing Kennel Maintenance Item Construction Documents) Task 9 (Existing Kennel Construction Administration) Task 10 (ADA Design For New Kennel) Sub -total Basic Services Reimbursable Expenses Total Basic Services and Reimbursable Expenses Additional Services (if approved by City) Maximum Total Compensation $48,046 $76,886 $129,206 $30,606 $69,624 $21,000 $10,000 $17,000 $14,000 $14,000 $430,368 $7,200 $437,568 $49,157 $486,725 Vers.: Aug. 5, 2019 Page 9 of 10 DocuSign Envelope ID: 91A009AE-FFFB-4C58-809F-746FA3FOBFD9 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: $7,200 (as above) A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $500 shall be approved in advance by the CITY's project manager. ADDITIONAL SERVICES The CONSULTANT shall provide Additional Services (as defined in Section 4, entitled "Not to Exceed Compensation" of this Agreement) 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 proposed description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The Additional Services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's Project Manager and CONSULTANT prior to commencement of such services. Payment for Additional Services is subject to all requirements and restrictions in this Agreement. Vers.: Aug. 5, 2019 Page 10 of 10 Minor, Beth From: Sent: To: Cc: Subject: 0 Rice, Danille Friday, June 18, 2021 1:38 PM Council, City; Council Agenda Email Executive Leadership Team; Boyd, Holly Council Agenda Consent Questions for June 21: Items 7 and 9 Council Question Response Dear Mayor and Council Members: On behalf of City Manager Ed Shikada, please find below the staff responses to inquiries made by Council Member Cormack in regard to the June 21 Council Meeting agenda. Item 7: Contract Amendment #1 for C19174715 Swatt Miers Architects, Inc 1. Does approving this contract eliminate the requirement in the earlier agreement that the city pay for a new kennel building? Approval of this contract does not eliminate the requirement in the agreement between the City and Pets In Need to provide a new kennel building. However, the agreement does not require the City to pay more than $3.4 million for the Animal Shelter projects. Pets In Need and the City will need to work together to identify additional funding for the new kennels. Item 9: Amendment to Contract No. C19173980 with Rincon for Cubberley CEQA 1. Will the school district participate in task 3 and 6 (page 91)? School District staff will be invited to participate in Tasks 3 and 6 of the amended agreement. Thank you. CITY +i! PALO Ei LT E Danille Rice Executive Assistant to the City Manager (650) 329-2105 1 danille.rice@cityofpaloalto.org www.cityofpaloalto.org 1E3 Ell MI CITY OF PALO ALTO City of Palo Alto (ID # 12247) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: Elwell Court Lease Renewal Title: Approve and Authorize the City Manager or Designee to Execute Amendment Number 9 With McCandless Limited LLC. for a Three -Year Lease Renewal at 1005 and 1007 Elwell Court Ending August 2024 From: City Manager Lead Department: Utilities RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or their designee to execute the lease amendment #9 with McCandless Limited, LLC. (Attachment A, Linked Document) to renew the lease for 1005 and 1007 Elwell Court providing office space for the City of Palo Alto Utilities Engineering Division for an additional three (3) year term ending August 2024. EXECUTIVE SUMMARY City of Palo Alto currently leases from McCANDLESS LIMITED, LLC, a California limited liability company ("Landlord") approximately nine thousand two hundred two (9,202) square feet of space located at 1007 Elwell Court, Palo Alto, California (the "1007 Premises") and approximately six thousand nine hundred fifty-five (6,955) square feet located at 1005 Elwell Court, Palo Alto, California (the "1005 Premises"), for a total area of 16,157 square feet of office space pursuant to that certain lease dated as of July 31, 1998. In the past ten years, the Lease agreement has been amended several times to add more years to the term of the lease and to modify the square footage of the Premises. The current lease will expire on August 31, 2021 therefore the lease term needs to be extended to accommodate the continuation of use by the Utilities Engineering staff. Utilities had a space planning meeting with Public Works and at this time, there is no feasible City -owned facility that can accommodate an additional 45 engineering employees. For Utilities operations continuity and emergency response, it is important that the Operations and Engineering staff are located in close proximity of one another. Currently, the two divisions are less than one mile apart between the Municipal Service Center (MSC) and Elwell Court. This amendment will extend the current lease agreement for an additional three (3) years, through August 31, 2024. City of Palo Alto Page 1 BACKGROUND On July 31, 1998, the City entered into a 10 -year lease with McCandless Limited for 9,202 square feet of office space at 1007 Elwell Court. The purpose of the lease was to provide space for the relocation of the Utilities Engineering staff to address the over -crowded conditions in the Civic Center as described in CMR: 204:98. Since that time, the Council has approved several amendments to add additional space and to modify the lease to accommodate additional staff including a citywide training conference room for computer -based training. The Utilities Department has been using the office space at the premises for its engineering and operation projects. DISCUSSION The 1007 Premises and the 1005 Premises are located in a building commonly known as 1001- 1007 Elwell Court, Palo Alto, California (the "Project"). The existing square footage of the premises used by the Utilities Department is 16,157 square feet. Specifically, it provides office space for approximately 45 Utilities Engineering employees and their equipment, a library for utilities system documentation and plan review, engineering training stations, and conference rooms. The new lease rate will begin at $3.48 per square foot triple net (not including real estate taxes, building insurance, and maintenance). The calendar year 2021 common area maintenance (CAM) charges for Elwell Court is approximately $0.55 per square foot, totaling $4.03 per square foot for base rent and CAM charges. There is currently space for sublease in the property with an asking rental rate of $3.50 per square foot triple net, as well as direct listings in a couple of buildings along the same block for $3.75 per square foot full service. The sublease is only through August 31, 2022 and the spaces in the other buildings are much smaller and in inferior condition. Basic rent for the first two years of the new lease amendment (September 1, 2021 — August 31, 2023) will be at a fixed monthly rate at $56,210.46. The third year (September 1, 2023 — August 31, 2024) shall increase by 2.5% to $57,615.72 representing average CPI, which is the same escalation factor as prior lease amendments. The cost will be included in the Utilities budget, shared between Electric, Fiber, Water, Gas and Wastewater Collection funds. The previous lease amendments did not include any tenant improvement allowance. In the new lease amendment, the landlord has agreed to contribute up to $250,000 for improvements. The Utilities Engineering office at Elwell Court has not had any significant interior updates since the City entered into the lease agreement in 1998. Interior finishes improvements will include flooring, paint, ceiling tiles, cabinetry, countertop, HVAC reconfiguration, water heater and ADA compliance upgrades. Based on the preliminary cost estimate, the City will be responsible for approximately $70,000 of the tenant improvements. In addition, the workspaces will be reconfigured and modernized for current business trends that use less paper, less storage, less compartmentalization, more openness and more collaboration. The additional funding of $370,000 for the workspace improvement is included in the Facility Interior Finishes Replacement (PF-02022) capital improvement program. City of Palo Alto Page 2 Elwell Court also provides a computer training room which has 22 individual work stations. This training room is utilized by Human Resources, Information Technology, Utilities and other departments for internal software training, computer system enhancement projects, online training, and other computer -based needs under a team setting. Staff is requesting a three-year lease extension at this time because it provides flexibility in case of changing work environment. Relocating Utilities Engineering staff to a City owned property may be feasible in the future, subject to space planning for City facilities with the new Public Safety Building. Staff led by the Public Works Department expect to begin more in-depth space planning during FY 2022. Basic Rent The City is to pay monthly basic rent for the ninth extended term starting at $3.48 per square foot with a 2.5% increase on September 1, 2023 as set forth below: Period Sq. Ft Rate Rent Monthly Rent Annual Sept. 1, 2021— Aug. 31, 2023 $3.48/SQF $56,210.46 $674,526 Sept. 1, 2023 — Aug. 31, 2024 $3.57/SQF $57,615.72 $691,389 STAKEHOLDER ENGAGEMENT Utilities and Public Works reviewed and determined no appropriate alternative space available in City -owned facilities to accommodate 45 engineering employees. Utilities and Administrative Services Real Estate also evaluated other commercial buildings and found no suitable alternatives. RESOURCE IMPACT Funding for the first year of the lease amendment of $674,526 is available in the FY 2022 operating budgets for the Electric Fund (41%), Fiber Fund (3%), Gas Fund (21%), Water Fund (21%), and Wastewater Collection Fund (14%). The lease cost is allocated by percentage of total engineering FTEs by utility. Funding for the workspace improvement of $370,000 is available in the FY 2022 capital improvement program Facility Interior Finishes Replacement (PF-02022). The Landlord has agreed to contribute up to $250,000 for tenant improvements. Staff estimates an additional $70,000 will be required to fund the entire list of mutually agreed upon improvements. Funding of $70,000 is also available in the FY 2022 Utilities Administration operating budget. POLICY IMPLICATIONS This recommendation is consistent with existing City policies and supports the Utilities Strategic Plan. City of Palo Alto Page 3 Priority 1: Workforce — We must create a vibrant and competitive environment that attracts, retains, and invests in a skilled and engaged workforce. • Strategy 2 — Create a workplace that attracts and retains skilled employees. ENVIRONMENTAL REVIEW Extending the lease for office space is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to CEQA Guideline 15301, Existing Facilities. Attachments: • Attachment A: Lease Amendment City of Palo Alto Page 4 DocuSign Envelope ID: BA8314AB-5171-4FF3-A9A8-965C6C749C5F NINTH AMENDMENT TO STANDARD INDUSTRIAL LEASE THIS NINTH AMENDMENT TO STANDARD INDUSTRIAL LEASE (hereinafter "Ninth Amendment") is made this (the "Effective Date"), by and between McCANDLESS LIMITED, LLC, a California limited liability company ("Landlord") and THE CITY OF PALO ALTO, a California municipal corporation ("Tenant"). RECITALS This Ninth Amendment is made with reference to the following facts: A. Tenant currently leases from Landlord approximately sixteen thousand one hundred and fifty-seven (16,157) square feet of space located at 1005 and 1007 Elwell Court, Palo Alto, California (the "Premises") pursuant to that certain lease dated as of July 31, 1998, that certain Amendment to Standard Industrial Lease dated as of April 1, 2003, that certain Second Amendment to Standard Industrial Lease dated as of March 16, 2005, that certain Third Amendment to Standard Industrial Lease dated as of September 20, 2005, that certain Fourth Amendment to Standard Industrial Lease dated as of June 6, 2006, that certain Fifth Amendment to Standard Industrial Lease dated as of May 16, 2007, that certain Sixth Amendment to Standard Industrial Lease dated as of August 30, 2013, that certain Seventh Amendment to Standard Industrial Lease dated as of March 23, 2015 and that certain Eighth Amendment to Standard Industrial Lease dated as of January 12, 2018 (the "Lease"). The 1005 Premises and the 1007 Premises are located in a building commonly known as 1001-1007 Elwell Court, Palo Alto, California (the "Project"). B. The term expires on August 31, 2021 and Tenant wishes to extend the term of the Lease by three (3) years. C. Tenant desires to have Landlord improve the Premises with new paint, flooring, lunchroom cabinets and other improvements as described in Exhibit A. Landlord and Tenant desire that the cost of such tenant improvements shall not exceed Three Hundred and Twenty Thousand and 00/100 Dollars ($320,000.00). D. Landlord shall pay, at its own cost and expense, the first Two Hundred and Fifty Thousand and 00/100 Dollars ($250,000.00) of such improvements. E. Landlord is willing to so amend the Lease subject to the terms and conditions set forth in this Ninth Amendment. ACCORDINGLY, in consideration of the above Recitals and the mutual covenants and agreements contained herein and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows: MCJE\30288\512180.2 -1- DocuSign Envelope ID: BA8314AB-5171-4FF3-A9A8-965C6C749C5F 1. Incorporation of Recitals and Exhibits. The above Recitals are true and accurate and the Recitals are incorporated herein by reference. 2. Term. Commencing September 1, 2021, the term of the Lease respecting the Premises shall be extended for three (3) additional years until August 31, 2024. The period commencing on the September 1, 2021 and ending on August 31, 2024 shall be referred to herein as the "Ninth Extended Term". 3. Security Deposit. Landlord currently holds a cash security deposit provided by Tenant in the amount of Seven Thousand One Hundred Fifteen Dollars and 00/100 ($7,115.00) and no further deposit shall be required. 4. Basic Rent. Commencing on September 1, 2021, Landlord and Tenant agree that the monthly basic rent shall be adjusted to Fifty -Six Thousand Two Hundred and Ten Dollars and 46/100 ($56,210.46) per month for two (2) years and shall increase by two and one- half percent (2-1/2%) to Fifty Seven Thousand Six Hundred and Fifteen and 72/100 Dollars ($57,615.72) per month for the third year commencing September 1, 2023. 5. Tenant Improvements and Allowance. Landlord shall construct the Tenant Improvements specified in this paragraph 5 and such changes as may subsequently be agreed upon by Landlord and Tenant, all in accordance with the Plans and Specifications and the conditions of any applicable governmental approval. Tenant Improvements must satisfy the Palo Alto Fire Marshall, State Building Code, Federal Americans with Disabilities Act, and all other applicable federal, state, and local laws. The general contractor shall be Pacific Ridge Builders, Inc. or, if Landlord and Tenant are unsatisfied in any way with the performance of Pacific Ridge Builders, Inc., such other general contractor that Landlord and Tenant shall mutually agree upon ("General Contractor"). A. Scope of Tenant Improvements. As used herein, "Tenant Improvements" to the Premises shall mean those items, specifications and scope of work for improving the Premises (whether or not a building permit or other governmental permit is required for such work) as described in the September 4, 2019 letter from Pacific Ridge Builders, Inc., attached hereto as Exhibit A. Such tenant improvement work shall include without limitation (i) replacement of the existing flooring with new standard office grade carpet or vinyl acrylic tile, (ii) new paint throughout the Premises, (iii) replacement of existing water heater, (iv) separation of HVAC between conference rooms 1 and 2, (v) removal and disposal of existing furniture and installed office cubicles, (vi) replacement of lunch room counters and cabinets, (vii) the cost of all permits (if any) and design, architectural, engineering or other design, permitting or construction related fees, (viii) the cost of procuring, constructing and installing all construction materials, testing and inspection costs, hoisting and trash removal costs, contractors' fees and general conditions, and sales and use taxes, (ix) management fees for an unaffiliated project manager and the cost of other ancillary work necessary to timely complete the Tenant Improvements as described and specified in Exhibit A. Unless otherwise specifically agreed to by Landlord in writing, the storage and replacement of any furniture, fixtures and equipment and other work not described in Exhibit A shall not be required of the Landlord. Landlord shall construct such Tenant Improvements in accordance with the terms of this paragraph 5. MCJE\30288\512180.2 -2- DocuSign Envelope ID: BA8314AB-5171-4FF3-A9A8-965C6C749C5F B. Materials and Permits. Landlord, for mutual approval by Landlord and Tenant, shall provide in writing within 30 days of the Effective Date, all color, style and material specifications for the Tenant Improvements ("Plans and Specifications") and the budget for completion of the Tenant Improvements. All materials and equipment installed in the Tenant Improvements shall be new unless agreed to in writing by Tenant. In the sole judgement of Landlord and General Contractor, the Tenant Improvements as currently proposed in Paragraph 5 (A) should not require a building permit, except for any plumbing or electrical work as part of the millwork, the installation of a new water heater or any lighting, HVAC, wall placement or electrical work to the conference room. To the extent a building permit may be required, Landlord shall, within 30 days of discovering that a building permit is required, prepare preliminary drawings or provide equivalent and sufficient information for mutual approval by Landlord and Tenant. Once preliminary drawings or equivalent and sufficient information are so approved by Landlord and Tenant, Landlord shall promptly complete construction drawings or equivalent information sufficiently detailed and complete to submit to the City of Palo Alto for a building permit and Landlord shall so submit such drawings or information as required by the City of Palo Alto if a building permit is required. Once all such color, style and material specifications and budget are mutually approved and all such building and all other necessary permits, if any, are obtained, Landlord shall complete construction of such Tenant Improvements in a diligent, timely, good and workmanlike manner, free from faults and defects. C. Changes By Tenant. Tenant may request changes, deletions or additions to the Tenant Improvements ("Change By Tenant"); provided, however, that the effectiveness of any such requested change, deletion or addition shall be subject to written approval by an authorized representative of Landlord, which approval shall not be unreasonably withheld, and to obtaining any required governmental permits or other approvals. Landlord shall approve or deny each Change By Tenant within five (5) business days of receipt by Landlord and Landlord's contractor of Tenant's written request for a change, deletion or addition, and Landlord shall also provide to Tenant an estimate of the maximum cost and any impact to the work schedule, of each Change By Tenant within ten (10) business days after the delivery of the Change By Tenant to Landlord. No Tenant Improvement based upon a Change By Tenant shall be undertaken unless and until Tenant shall have approved (by notice to Landlord) Landlord's cost estimate and impact to the work schedule of any such Change By Tenant. At any time during the construction of the Tenant Improvements, Tenant may reject any work that does not conform to the Plans and Specifications. If any such changes increase the cost of constructing or installing the Tenant Improvements, such amount shall be added to the Turnkey Allowance, provided, however if the Turnkey Allowance has been exhausted, Tenant shall immediately pay to Landlord, within thirty (30) days of receipt from Landlord an invoice with reasonably detailed information including receipts proving payment has been made, the full amount of such increase in the cost of constructing or installing the Tenant Improvements. No change in the Tenant Improvements, as described in Exhibit A, shall delay the commencement of the Ninth Extended Term. D. Changes By Authority. Except as set forth in the Lease, Tenant agrees that if any change, deletion or addition to any of the improvements proposed to be constructed or installed is required by any governmental authority in connection with obtaining any governmental permit or approval, or otherwise, then the cost of such change, deletion or addition shall be included in the Turnkey Allowance. If such allowance has been spent, then MCJE\30288\512180.2 -3- DocuSign Envelope ID: BA8314AB-5171-4FF3-A9A8-965C6C749C5F Tenant shall immediately pay to Landlord, within thirty (30) days of demand, the full amount of such increase in the cost of constructing or installing the Tenant Improvements. Failure to obtain any required governmental approval or permit for the Tenant Improvements desired by Tenant shall in no way be cause for Tenant to terminate the Lease and shall not delay commencement of the Ninth Extended Term. E. Tenant Improvement Allowances and Overruns. The cost of construction of the Tenant Improvements shall be paid by Landlord subject to the Turnkey Allowance described herein. The first Two Hundred and Fifty Thousand and 00/100 Dollar ($250,000.00) of Tenant Improvement cost shall be considered an allowance provided by Landlord at Landlord's sole cost and expense ("Turnkey Allowance"). In no event shall Landlord be obligated to make disbursements pursuant to this paragraph 5 in an amount that exceeds the Turnkey Allowance. Tenant Improvement costs that exceed the Turnkey Allowance shall require approval in writing by Tenant, if such costs occur, and shall be deemed "Cost Overruns". Any Cost Overruns that are caused solely by Landlord, shall be paid for at Landlord's sole cost and expense. Any Cost Overruns that are caused by Tenant or sources beyond Landlord's control shall be included in the Turnkey Allowance or, if the Turnkey Allowance is exhausted, then shall be paid by Tenant directly to Landlord within thirty (30) days written notice from Landlord or Landlord's contractor detailing the nature and amount of the Cost Overrun exceeding the Turnkey Allowance including receipts proving payment has been made. All costs associated with the construction of the Tenant Improvements shall be shared with Tenant on an "open -book" basis promptly upon request. Tenant shall not be entitled to a credit for any unused portion of the Turnkey Allowance in the form of rent credit, rent abatement or otherwise. a. Turnkey Allowance. The Turnkey Allowance amounting to Two Hundred and Fifty Thousand and 00/100 Dollars ($250,000.00) shall be disbursed by Landlord, at Landlord's sole cost and expense, only for the payment or reimbursement of the costs of Tenant Improvements as described in paragraph 5(A) above, (collectively "Permitted Allowance Items"). If the cost of the Tenant Improvements exceeds the Turnkey Allowance, Landlord shall provide Tenant with reasonably detailed confirmation thereof including receipts proving payment has been made and, thereafter, Landlord or Tenant shall, within thirty (30) days of invoice, pay the additional costs incurred in the construction or installation of the Tenant Improvements as provided in this Paragraph 5. Tenant shall pay any Cost Overruns not solely caused by Landlord within thirty (30) days of receipt of invoices therefor from Landlord. In the event Tenant shall fail to pay such Cost Overruns within thirty (30) days of billing, Tenant shall be in material default under the Lease. In no event shall Landlord be required to undertake any installation of construction work other than the Tenant Improvements b. Payment of Allowances. Landlord shall pay the Turnkey Allowance by means of a check made payable to the General Contractor with copies to Tenant, following the completion of construction of the Tenant Improvements, provided that (a) the General Contractor delivers to Landlord invoices from all the General Contractor's agents for labor rendered and materials delivered to the Premises, (b) the General Contractor delivers to Landlord properly executed mechanics lien releases in compliance with both California Civil Code Section 3262(d)(2) and Section 3262(d)(4) and (c) the General Contractor delivers to Landlord copies of all permits, licenses, certificates and other governmental authorizations and approvals (to the extent actually required by law) in connection with, and indicating final MCJE\30288\512180.2 -4- DocuSign Envelope ID: BA8314AB-5171-4FF3-A9A8-965C6C749C5F approval of, the Tenant Improvements. Landlord shall only be obligated to make disbursements from the Turnkey Allowance to the extent costs are incurred for Permitted Allowance Items. F. Punch List. Landlord shall make best efforts to Substantially Complete construction of the Tenant Improvements within sixty (60) days after the Plans and Specifications have been approved by Landlord and Tenant and any required building permit or other governmental permit has been obtained. Landlord shall, immediately upon Substantial Completion of the Tenant Improvements, give written notice to Tenant of such completion. Within ten (10) business days after Landlord gives written notice to Tenant that the Tenant Improvements are substantially complete, Tenant shall deliver to Landlord a list of punch list items that Tenant reasonably believes Landlord should complete or correct in order for the Premises to be acceptable. Landlord shall immediately commence to complete or correct the items as soon as possible Tenant shall not be required to accept delivery of the Premises until such items have been completed or corrected, as applicable. For all purposes under this Lease, "Substantial Completion," "Substantially Complete" and words of similar import shall mean when the Tenant Improvements have been substantially completed in accordance with the Plans and Specification; if required, applicable governmental authorities have issued a final permit sign -off, approval to occupy, or its equivalent for the Premises; and there is no incomplete or defective work that interferes with Tenant's use of the Premises. For one (1) year after the date of substantial completion of Tenant Improvements, Landlord shall, following written notice from Tenant, unconditionally make any repair, replacement, correction or other alteration of any nature necessary by virtue of any defective construction of the Tenant Improvements or defective materials used therein. Thereafter, Landlord shall promptly make or cause to be made all repairs, replacements, corrections or alterations, at no expense to Tenant, to correct latent defects in the Tenant Improvements caused by a nonconformance with the Plans and Specifications. Nothing in this paragraph 5 shall delay the commencement of the Ninth Extended Term or Tenant's obligation to pay basic rent, common area charges or to make other payments due Landlord under the Lease. G. Landlord's Right to Retainage and Offset. Landlord at its sole option hereby retains the right either (a) to withhold from the Turnkey Allowance an amount equal to the total monies due to any contractor, supplier or materialmen, who provided or supplied labor, services, goods, work or materials to the Premises but whose performance was unsatisfactory in Landlord's sole discretion and (b) to offset from and against the Turnkey Allowance any monies due Landlord under the terms of the Lease. H. Exclusions. No amount of the Turnkey Allowance shall be allowed as a setoff against Rent. In no event shall Landlord be required to pay any portion of either the Turnkey Allowance for any cost incurred by Tenant after February 28, 2022, except for delays caused solely by Landlord that are reasonably within Landlord's control. I. Third Persons. Under no circumstances shall this paragraph 5 be construed to confer upon any third person or entity any right or cause of action against the Landlord or Tenant, including but not limited to, all contractors, subcontractors, suppliers, laborers or materialmen MCJE\30288\512180.2 -5- DocuSign Envelope ID: BA8314AB-5171-4FF3-A9A8-965C6C749C5F J. Ownership of Tenant Improvements. Restoration of the Tenant Improvements will not be required and all Tenant Improvements shall become a part of the Premises, shall be the property of Landlord and shall be surrendered by Tenant with the Premises, without any compensation to Tenant, at the expiration or termination of the Lease. 6. Brokers. Each party represents that it has not had any dealings with any real estate broker, finder or other person with respect to this Ninth Amendment, and that there are no leasing commissions to be paid by Landlord or Tenant in connection with this transaction. Each party hereto shall hold harmless the other party from all damages, loss or liability resulting from any claims that may be asserted against the other party by any broker, finder or other person with whom such party has dealt, or purportedly has dealt, in connection with this transaction. 7. Warranty of Authority: Each signatory to this Ninth Amendment represents that he or she possesses full authority to exercise this Ninth Amendment and to bind the entity on whose behalf such signatory is signing. 8. Restatement of Other Lease Terms. Except as specifically modified herein, all other terms, covenants and conditions of the Lease, including Tenant's obligation to pay common area charges, shall remain in full force and effect. 9. Capitalized Terms. Except as expressly provided in this Ninth Amendment, all capitalized terms used in this Ninth Amendment shall possess the same meaning ascribed to that term in the Lease. 10. Conflicts. In the event of any conflict between the Lease on the one hand and this Ninth Amendment on the other, the terms of this Ninth Amendment shall govern and control. 11. Counterparts. This Ninth Amendment may be executed in identical facsimile or e -mailed .pdf counterparts, each of which shall be deemed an original and all of which shall constitute one and the same legally binding instrument. MCJE\30288\512180.2 -6- DocuSign Envelope ID: BA8314AB-5171-4FF3-A9A8-965C6C749C5F IN WITNESS WHEREOF, the parties hereto have executed this Ninth Amendment as of the Effective Date. LANDLORD: McCANDLESS LIMITED, LLC a California limited liability company ,-DocuSigned by: yeta. ire . By Sandra M. Simons or Jett A. McCandless, Managers TENANT: THE CITY OF PALO ALTO, a California municipal corporation By: City Manager Approved as to form: By: City Attorney By: By: Director of Utilities Director of Administrative Services MCJE\30288\512180.2 -7- DocuSign Envelope ID: BA8314AB-5171-4FF3-A9A8-965C6C749C5F PACIFICRIDGE BUILDERS, INC September 4, 2019 Hamid Ghaemmaghami Manager of Real Property City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Office Improvements - Est. 01R2 1005-1007 Elwell Court Palo Alto, CA Dear Hamid Ghaemmaghami JML - 18 - 091 x ROM Budget Proposal Pacific Ridge Builders is pleased to submit our Proposal for the modifications and improvements at 1005-1007 Elwell Court. We have based the scope of work and cost described below from: Below scope of work and basic marked up layout. Scope of Work: General Requirements Provide adequate protection around area of work for finishes to remain. Provide protection in the path of travel out of the building. Provide dumpsters for all demolition and material scraping as required from scope of work; recycle where possible. Provide onsite labor, material and equipment as needed for the Final Cleaning Provide a general cleaning of the existing space. Vacuum all carpet areas, mop all VCT/laminate flooring, dust blinds, etc. Provide a general cleaning through the path of travel of construction. Price does NOT include wax or sealers. Demolition Demo and remove all flooring throughout the space as noted; carpet, VCT & base. Ceramic tile / restrooms are NIC. Cost includes an allowance of $5,000 to remove all adhesives / glue after flooring is removed. Extent of work is TBD until the flooring is removed. Demo and remove cabinets in the Break room; other cabinets to remain as is. Demo and remove 15% of the ceiling tiles in the space; see Acoustical Ceilings below for additional information. Cubes to be removed prior to carpet install. Site Work NIC; No scope of work figured. Concrete NIC; No scope of work figured. Carpentry NIC; No scope of work figured. Architectural Casework Provide 10' linear feet of upper/lower cabinets with countertop and backsplash as shown on the plans. Cabinets to be Plastic laminate to be from standard stocking materials. Countertop to be solid surface; corian or equal. Hardware to be standard material with standard pulls. E EXCLUDED: light rail under the upper cabinets. Material to be brought into the building per building standards. Doors/Frames/Hardware NIC; No scope of work figured. Pacific Ridge Builders, Inc. 1500 Wyatt Drive, Suite #14, Santa Clara, CA 95054 CSL# 940761 DocuSign Envelope ID: BA8314AB-5171-4FF3-A9A8-965C6C749C5F Glazing NIC; No scope of work figured. Metal Stud Framing Cost includes an allowance of $2,500 for misc. patching as needed throughout the space. Provide all wall finish to match the existing. Material to be brought into the building per building standards. Ceramic Tile NIC; No scope of work figured. Acoustical Ceiling Remove and stack the existing ceiling tiles throughout the area of work as needed. Cost includes an allowance of 15% new ceiling tiles; replace damaged tiles as directed. Full scope to be determined prior to patching to better efficiency. E Excludes: seismic compression posts. Flooring Provide new standard sheet vinyl in the four [4] rooms; plan view right; coved integral base. Provide new Armstrong Standard Excelon VCT in the, Bream Room, Plotter Room and Small Break room. Provide new carpet tiles throughout the space; includes a material cost of $15/sy. Provide transition strips at flooring material changes as noted. Painting Mask and protect the existing finishes as required for the new paint. Paint throughout the tenant improvement space in one [1] general color. Assume one [1] general color with 5% to be accent paint. Provide necessary coats as needed for new and existing walls. Cost includes an allowance of thirteen [13] doors to be painted. Assumes minimal prep. work needed. E EXCLUDED: No deep tone colors have been figured. Specialties Provide all necessary code compliant signage as needed for fire/building final inspections. Provide fire extinguishers to match the existing as required by code. E EXCLUDED: All the existing blinds are to remain as is, no scope of work figured. Restrooms Partitions / Accessories NIC; No scope of work figured. Appliances E EXCLUDED: Appliances are NIC; no scope has been figured. Assumes connections to appliances only, actual fixtures are to be furnished and installed by owner. Fire/Life and Safety NIC; No scope of work figured. Fire Protection NIC; No scope of work figured. Plumbing Replace the existing water heater that is over 10y old.; 50 gallon electrical. Cost includes WH, pipe replacement in area, cut sheets on unit, etc. Provide one [1] new ADA compliant sink on existing rough plumbing. HVAC Separate the HVAC system in Conf. 1 & 2 on plan view N/E location. Cost includes an 1.5T ductless split system to serve this room; to be wall mount. Reuse existing material where applicable; provide new if required. Provide and/or relocate supply and return registers for the layout. Thermostats to be left in current locations. n Provide engineering, drawing, T24 calculations and stamped drawings for permit. Pacific Ridge Builders, Inc. 1500 Wyatt Drive, Suite #14, Santa Clara, CA 95054 CSL# 940761 DocuSign Envelope ID: BA8314AB-5171-4FF3-A9A8-965C6C749C5F Electrical Safe -off all electrical as needed for demolition. Provide connection to the new mechanical unit. Cost includes an allowance of 8 hours for an electrical vendor to work on misc. items around the space. Includes 8 hours and $250 of material. D Provide engineering, drawing, T24 calculations and stamped drawings for permit. Security & Data Communication Data to be completed by the owner - NIC; only cuts in boxes with ring/string. Total Project Budget: Two Hundred Thirty -One Thousand, Eight Hundred and Forty -Nine Dollars $231,849.00 Pacific Ridge Builders is grateful for the opportunity to present this detailed scope and cost break down for your review. We are eager to work with you and your personnel to complete this project and to meet the desired and noted schedule, budget and quality expectations. If you have any questions or need additional information on this budget please do not hesitate to call. I can be reached on my cell phone at (408) 761-8949. Sincerely, Jason Livingstone Vice President I Estimating Pacific Ridge Builders JasonL@PacificRidgeBuilders.com (Approval Signature) (Date) (Print Name) (Title) Pacific Ridge Builders, Inc. 1500 Wyatt Drive, Suite #14, Santa Clara, CA 95054 CSL# 940761 DocuSign Envelope ID: BA8314AB-5171-4FF3-A9A8-965C6C749C5F R:a PACIFICfIDGE BUILDERS, INC September 4, 2019 Office Improvements - Est. 01R2 Total 15,873 SF 01000 - General Requirements $ 5,040 3.32 /sf 01742 - Final Cleaning $ 6,756 $ 0.43 /sf 02220 - Demolition $ 18,400 $ 1.16 /sf 06000 - Woods and Plastics $ 7,230 $ 0.46 /sf Architectural Woodwork $7,230 09000 - Finishes $ 137,244 $ 9 /sf Metal Stud Framing & Drywall $2,500 $ 0.16 /sf Acoustical Ceilings $23,400 $ 1.47 /sf Floor Coverings $84,889 $ 5.35 /sf Paint & Wall Covering $26,455 $ 1.67 /sf 10000 - Specialties $ 1,070 $ 0 /sf Interior & Exterior Signage $820 Fire Extinguishers $250 12000 - Furnishings $ - $ - /sf 15000 - Mechanical - HVAC & Plumbing $ 14,754 Plumbing Fixtures & Equipment $7,954 $ 0.50 /sf Air Distribution, Testing & Air Balancing $6,800 $ 0.43 /sf 16000 - Electrical $ 2,995 Electrical Power &/or Lighting Q,995 $ 0.19 /sf Subtotal Construction Cost $ 193,488.55 $ 12.19 /sf 01-307 18-750 01-130 19-900 20-110 20-120 Field Supervision General Liability Insurance 1.00% Building Permit (Allowance) Contingency (Direct Costs Only) Contractor Overhead 4.50% Contractor Fee 3.75% $ $ $ $ $ $ 18,240.00 2,117.29 - - 9,623.06 8,380.10 $ 1.15 /sf $ 0.13 /sf $ - /sf $ - /sf $ 0.61 /sf $ 0.53 /sf Total Project Cost with GC/Fee $ 231,849.00 S 14.61 /sf ** See Alternates Page For Additional Costs ** Page 4 of 6 DocuSign Envelope ID: BA8314AB-5171-4FF3-A9A8-965C6C749C5F PACIFICRI9GE BUILDERS, INC September 4, 2019 Office Improvements - Est. 01R2 1005-1007 Elwell Court Palo Alto, CA -- ALTERNATES NOT INCLUDED IN THE BASE BID -- 1 Replace Upper / Lower Cabinets - Small Break Room ADD $11,330.00 Provide 10' linear feet of upper/lower cabinets with countertop and backsplash as shown on the plans. Cabinets to be Plastic laminate to be from standard stocking materials. Countertop to be solid surface; corian or equal. Hardware to be standard material with standard pulls. Cost includes removing the existing sink and replacing with new ADA compliant s.s. sink. Cost includes new sink and faucet fixture. Includes new insta-hot. Reuse the existing rough plumbing. 2 New LVT Flooring in Lieu of VCT in Break Room ADD $2,484.00 Provide new LVT flooring in lieu of VCT. Assumes a furnish/install cost of $12/sf for the LVT flooring. 3 New LVT Flooring in Lieu of VCT in Plotter Room ADD $4,188.00 Provide new LVT flooring in lieu of VCT. Assumes a furnish/install cost of $12/sf for the LVT flooring. 4 LVT in lieu of Carpet Provide new LVT flooring in lieu of carpet. Assumes 35% new LVT flooring. Assumes a furnish/install cost of $9/sf for the LVT flooring. ADD $80,625.00 5 Lift System ADD $36,792.00 Provide a lift system for the carpet install in lieu of owner removal of the cubes (cube removal by owner). Assumes the existing flooring can be removed without moving the lift system devices; carpet tile, etc. 6 Demolition on Off Hours Provide all demolition to be completed on off hours. Assumes full time supervision during this part of construction. 7 ACM Testing Provide testing with an allowance for carpet and other items being demolished. 8 ADA Compliance Issues - Allownace ADD $10,000.50 ADD $2,000.00 ADD $38,697.71 Cost includes an allowance of 20% of the direct costs for this project to be put to ADA upgrades; exterior walkways, restrooms, etc. Actual scope of work is TBD. DocuSign Envelope ID: BA8314AB-5171-4FF3-A9A8-965C6C749C5F P:B September 4, 2019 PACIFIC RIDGE BUILDERS, INC CLARIFICATIONS AND EXCLUSIONS RE: Office Improvements - Est. 01R2 Clarifications 1 Project is based on standard labor hours. 2 We have accounted for two [2] hours to obtain project Permit. 3 Invoicing: Projects less than $50,000, invoicing will be net fourteen [14] days, no retention. 4 Reimbursable invoices, including permits, are to be net seven [7]. 5 All change orders will be priced with same fee percentages as proposal and necessary OH. OH&P will not be credited back on deductive change orders. 6 Owner to provide a non -obstructed access to work areas during construction. 7 We assume that the building meets all ADA current code requirements. 8 Project area to be free and clear of owner equipment and furniture prior to start of work. 9 We assume there is adequate electrical circuits available to meet the project design, new panels are not figured. 10 We assume the existing HVAC system is adequate to meet the project design intent. 11 Price includes minimal floor preparations for new finishes unless otherwise noted. 12 If lead times affect the critical path of the schedule, project will be delayed to work concurrently schedule. 13 Any demolition is figured for G.C. and associated recycling costs to keep demolition budget down. 14 Proposal is valid for 30 calendar days only due to labor and material increases. Exclusions 1 Permit or plan check fees; to be a direct reimbursable expense. 2 Contingency. 3 Unknown or unforeseen conditions. 4 Furniture / cubicles / power poles. 5 Security or data communication. 6 Evacuation signage. 7 Hazardous testing and/or hazmat material testing or air clearances. 8 Special inspections and/or inspections. 9 Storm Water Pollution Protection Plan (SWPPP) or any containment. 10 Re-routing of utilities and/or electrical systems. 11 Dismantling and/or removal of the existing equipment and/or furniture to perform the work. 12 Seismic bracing unless noted in the base scope. 13 Draft stops, fire dampers, fire ratings, etc. not noted in the base price. 14 Master keying or keying of any doors. 15 Any provisions including liquidated damages. LD's will only be discussed with the intent of an early completion bonus. 16 X-raying or scanning of the existing slab. 17 Refrigerators, dishwashers, microwaves, and/or other appliances. 18 ADA corrections to the existing conditions. 19 Any 2016 Green Building Codes. 20 EV Charging Stations and any infrastructure for this scope of work. DocuSign Certificate Of Completion Envelope Id: BA8314AB51714FF3A9A8965C6C749C5F Subject: Please DocuSign: 9th Amendment 1005-1007 Elwell Source Envelope: Document Pages: 13 Certificate Pages: 2 AutoNav: Enabled Envelopeld Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) Status: Sent Court.docx, Elwell Court (City of Palo Alto) - ... Signatures: 1 Initials: 0 Record Tracking Status: Original 5/5/2021 4:34:18 PM Security Appliance Status: Connected Storage Appliance Status: Connected Holder: Sunny Tong Sunny.Tong@CityofPaloAlto.org Pool: StateLocal Pool: City of Palo Alto Envelope Originator: Sunny Tong 250 Hamilton Ave Palo Alto , CA 94301 Sunny.Tong@CityofPaloAlto.org IP Address: 73.223.135.207 Location: DocuSign Location: DocuSign Signer Events Signature Timestamp Jett A. McCandless jettmccandless@mac.com Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Joan Borger Joan.Borger@CityofPaloAlto.org Special Counsel Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Dean Batchelor Dean.Batchelor@CityofPaloAlto.org Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Kiely Nose kiely.nose@cityofpaloalto.org Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign Ed Shikada ed.shikada@cityofpaloalto.org Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign ,r-6ocuSigned by: par a.1toe '—DE8602B067CF4CE.. Signature Adoption: Pre -selected Style Using IP Address: 72.201.44.214 Sent: 5/5/2021 4:50:42 PM Viewed: 5/6/2021 2:52:18 PM Signed: 5/8/2021 5:41:00 PM Sent: 5/8/2021 6:51:07 PM Viewed: 5/10/2021 9:26:23 AM 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 Sunny Tong sunny.tong@cityofpaloalto.org Real Property Manager City of Palo Alto Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign VIEWED Using IP Address: 73.223.135.207 Sent: 5/8/2021 5:41:02 PM Viewed: 5/8/2021 6:51:07 PM Carbon Copy Events Status Timestamp Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 5/5/2021 4:50:42 PM Payment Events Status Timestamps CVTY 0 PALO ALTO City of Palo Alto (ID # 12253) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: Amendment to Contract No. C19173980 with Rincon for Cubberley CEQA Title: Approval of Amendment Number 1 to Contract Number C19173980 With Rincon Consultants, Inc. in the Amount of $27,045 for a Total Not -to - Exceed Amount of $170,497 and extend the Term to January 31, 2022, for Preparation of an Initial Study of the Mitigated Negative Declaration for the Cubberley Concept Plan From: City Manager Lead Department: Community Services Recommendation Staff recommends that the City Council approve Amendment No. 1 to Contract No. C19173980 with Rincon Consultants, Inc. in the amount of $27,045 for a total not to exceed amount of $170,497 and extend the term to January 31, 2022, for preparation of an Initial Study -Mitigated Negative Declaration for the Cubberley Concept Plan. Background The City of Palo Alto and Palo Alto Unified School District (PAUSD) jointly developed a concept plan for future development of the Cubberley Community Center site, with collaborative participation from the community. The community co -design effort began in October 2018 and included four iterative community meetings in which community members worked together to identify needs, propose opportunities, discuss options, and guide the master planning process towards solutions for the Palo Alto community. At each meeting, participants engaged in interactive activities designed to gather pertinent information and perspectives on key project decisions. All project information and deliverables, including meeting materials and summaries are available on the project website at https://www.pausd.org/about-us/committees-task- forces/cubberley-master-plan. Discussion The Cubberley Concept Plan is considered a Project under the California Environmental Quality Act (CEQA) and therefore requires that the project be evaluated to determine if it may cause either a direct or reasonably foreseeable indirect physical change in the environment. On June City of Palo Alto Page 1 10, 2019, the City Council approved an agreement with Rincon Consultants, Inc. in the amount of $143,452 for environmental analysis of the Cubberley Concept Plan (Staff Report 10378). Since that time two significant events occurred that delayed the completion of the CEQA document. The first is the COVID-19 pandemic that resulted in a shift in staff priorities to focus on community response to and recovery from the pandemic. The second is a change in CEQA law with respect to the method by which traffic and transportation impacts are assessed. Previously, traffic impacts used "level of service" or "LOS" analysis that analyzed impacts to surrounding streets and roads, thereby measuring traffic congestion. The amended law now requires traffic and transportation analysis to measure the "vehicle miles traveled" or "VMT" resulting from a new development or other land -use decisions. Since the LOS analysis had already been completed, and the original scope did not include a VMT analysis, a contract amendment is necessary for the Consultant to complete the appropriate traffic and transportation analysis. Amendment No. 1 to Contract No. C19173980 is included as Attachment A to this staff report. Timeline It is anticipated that a draft CEQA document will be released for public comment in early Fall 2021 and the final public hearing to adopt the Initial Study/Mitigated Negative Declaration (IS/MND) will occur by the end of the calendar year 2021. Resource Impact Funding for Contract No. C19173980 was included in Capital Improvement Project CB -16001 (Cubberley Community Center Master Plan). The Cost Share Agreement between the City and PAUSD for the Cubberley Master Plan shared the cost of the CEQA consultant equally, not to exceed a total contract amount of $100,000. Because the total contract amount exceeded $100,000, the City's portion was $80,411 ($93,452 including additional services), and PAUSD's share was $50,000. Funding for the contract amendment recommended in this report is available in the Fiscal Year 2021 Cubberley Property Infrastructure Fund Cubberley Repairs project CB -17001. Due to the administrative burden of revising the cost share agreement and the nominal contract amendment amount, staff recommends that the City fund the full $27,045. Stakeholder Engagement Development of the Cubberley Concept Plan was completed using a community co -design process that engaged hundreds of community members. The public will have the opportunity to comment on the CEQA findings when it is released for public comment. Environmental Review This contract amendment ensures that the City, as Lead Agency, prepares a document that complies with Senate Bill (SB) 743, the CEQA Guidelines, and Council's adopted resolution establishing new CEQA thresholds of significance in compliance with SB 743 with respect to traffic and transportation. Attachments: City of Palo Alto Page 2 • Attachment A: Rincon Consultants, LLC._C19173980 Amendment #1 City of Palo Alto Page 3 DocuSign Envelope ID: DC35942C-F252-4A28-81 AD-7667F4577D0D AMENDMENT NO. 1 TO CONTRACT NO. C19173980 BETWEEN THE CITY OF PALO ALTO AND RINCON CONSULTANTS, INC. This Amendment No. 1 (this "Amendment") to Contract No. C19173980 (the "Contract" as defined below) is entered into as of February 1, 2020, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and RINCON CONSULTANTS, INC., a California corporation, located at 449 15th Street, Suite 303, Oakland, California, 94612 ("CONSULTANT"). CITY and CONSULTANT are referred to collectively as the "Parties" in this Amendment. RECITALS A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of performing an Initial Study -Mitigated Negative Declaration for the Cubberley Master Plan project area, as detailed therein. B. The Parties now wish to amend the Contract in order to add scope to the services to update and finalize the Initial Study -Mitigated Negative Declaration (IS-MND). The COVID-19 pandemic temporarily delayed work on this project. The compensation for added scope is $27,045.00, increasing the not -to -exceed amount of the Contract from $143,452.00 to $170,497.00, and the term will extend by one year to January 31, 2022. 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. C19173980 between CONSULTANT and CITY, dated May 20, 2019. 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 January 31, 2022 unless terminated earlier pursuant to Section 19 of this Agreement." 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" ("Basic Services"), and reimbursable expenses, City of Palo Alto Vers.: Aug. 5, 2019 Contract No. C19173980 Amendment No. 1 Page 1 of 15 DocuSign Envelope ID: DC35942C-F252-4A28-81 AD-7667F4577D0D shall not exceed One Hundred Fifty Seven Thousand Four Hundred Fifty Six Dollars ($157,456.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event Additional Services are authorized, the total compensation for Basic Services, Additional Services and reimbursable expenses shall not exceed One Hundred Seventy Thousand Four Hundred Ninety Seven Dollars ($170,497.00). 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. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "C". CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit "A"." 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, AMENDMENT NO. 1", AMENDED, REPLACES PREVIOUS. b. Exhibit "B" entitled "SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1", AMENDED, REPLACES PREVIOUS. c. Exhibit "C" entitled "COMPENSATION, AMENDMENT NO. 1", AMENDED, REPLACES PREVIOUS. d. Exhibit "C-1" entitled "SCHEDULE OF FEES, AMENDMENT NO.1", AMENDED, REPLACES PREVIOUS. 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. City of Palo Alto Vers.: Aug. 5, 2019 Contract No. C19173980 Amendment No. 1 Page 2 of 15 DocuSign Envelope ID: DC35942C-F252-4A28-81 AD-7667F4577D0D (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) City of Palo Alto Vers.: Aug. 5, 2019 Contract No. C19173980 Amendment No. 1 Page 3 of 15 DocuSign Envelope ID: DC35942C-F252-4A28-81 AD-7667F4577D0D 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 RINCON CONSULTANTS, INC. Officer 1 ,-DocuSigned by: By: tagt, (,t,iI,tx Nam'E. M963Ae iL Title: Pri nci pal Officer 2 (Required for Corp. or LLC) DocuSigned by: r By: l fL ln, SvitA, Name: 2D EF799747AB47A.. Title: Executive vice President Attachments: EXHIBIT "A "entitled "SCOPE OF SERVICES, AMENDMENT NO. 1" (AMENDED, REPLACES PREVIOUS) EXHIBIT "B" entitled "SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1" (AMENDED, REPLACES PREVIOUS) EXHIBIT "C" entitled "COMPENSATION, AMENDMENT NO. 1" (AMENDED, REPLACES PREVIOUS) EXHIBIT "C-1" entitled "SCHEDULE OF RATES, AMENDMENT NO. 1" (AMENDED, REPLACES PREVIOUS) City of Palo Alto Vers.: Aug. 5, 2019 Contract No. C19173980 Amendment No. 1 Page 4 of 15 DocuSign Envelope ID: DC35942C-F252-4A28-81 AD-7667F4577D0D EXHIBIT A SCOPE OF SERVICES, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) This scope of services involves the preparation of an Initial Study -Mitigated Negative Declaration for the Cubberley Master Plan project area. Task 1 Project Management Subtask 1.1. Project Management CONSULTANT will provide project management and administrative services including coordination with CITY staff, CONSULTANTs, and school district representatives as appropriate. CONSULTANT will prepare a master schedule for the CEQA process and will update the schedule regularly as milestones are reached. CONSULTANT will prepare monthly invoices which will include progress reports on tasks completed and billing milestones reached. Deliverables: • Master CEQA schedule and updates • Monthly invoices with progress reports Subtask 1.2. Project Meetings CONSULTANT's principal in charge and project manager will attend a kickoff meeting for the project. This meeting will serve as a forum to review and confirm study objectives and establish an operational protocol. Working schedules will be finalized and details for scheduled tasks will be discussed. CONSULTANT will use this opportunity to collect any relevant studies and information not already transmitted. The kickoff meeting will also provide an opportunity to thoroughly discuss the approach to environmental evaluation. Community concerns that have surfaced to date will also be discussed. CONSULTANT will also schedule and participate in monthly project telephone meetings to discuss project status, upcoming efforts and activities, issues that have arisen, and other relevant information. CONSULTANT will schedule the meetings and manage calendar invitations as well as prepare and circulate agendas prior to each meeting. After each meeting, CONSULTANT will circulate notes and action items and will follow-up on status of action items as appropriate. Deliverables: • Meeting agendas and minutes • Action items list and updates TASK 2: Environmental Assessment and Clearance Subtask 2.1. Project Description CONSULTANT will prepare a draft Project Description based on the Master Plan and will provide an electronic copy (Microsoft Word and PDF format) for review by staff prior to commencing the analysis. As a basis for the environmental analysis to follow, a clear and thorough description of the Master Plan is a critical first step in the CEQA process. Textual, tabular, and graphic presentation (with CITY and/or planning team -prepared maps, plans, renderings, or diagrams) will be included as City of Palo Alto Contract No. C19173980 Vers.: Aug. 5, 2019 Amendment No. 1 Page 5 of 15 DocuSign Envelope ID: DC35942C-F252-4A28-81 AD-7667F4577D0D necessary to facilitate a thorough understanding of the proposed plan and its potential implementation. Deliverable: • Project description in electronic format Subtask 2.2. Administrative Draft Initial Study (IS) CONSULTANT will address comments on the draft Project Description to prepare a final Project Description which will be used as a basis for the analysis in the Administrative Draft IS. CONSULTANT will prepare the Administrative Draft IS for CITY review. CONSULTANT will use the CITY's preferred IS format. The Administrative Draft IS will address all the items on the environmental checklist. Whenever possible, impacts will be quantified. To the maximum extent feasible, existing available information and studies will be used. If readily available data does not allow definitive quantification, reasonable assumptions will be used to qualitatively forecast potential impacts. Determinations will be made as to whether such measures are adequate to reduce impacts to less than significant levels. If necessary, mitigation measures will be developed and presented in programmatic wording such that mitigation measures can be implemented by future development under the Master Plan. Following each mitigation measure will be a discussion of the significance of the impact, and disposition with appropriate and feasible mitigation. CONSULTANT will submit 10 paper copies and an electronic copy in PDF and Word format of the Administrative Draft IS. CONSULTANT will coordinate with CITY staff to review the findings of the IS and make a recommendation on the type of CEQA document that will be required for the project. The key issues that CONSULTANT will address in detail in the Initial Study will include: • Air Quality • Biological Resources • Cultural and Historic Resources • Energy • Geology and Soils • Greenhouse Gas Emissions • Land Use and Planning Noise • Public Services • Traffic and Transportation • Utilities and Service Systems Detailed analysis of other checklist issues may be added as information arises during drafting of the Initial Study. Deliverable: • Administrative Draft IS (10 paper copies and electronic format) Subtask 2.3. Draft IS-MND City of Palo Alto Vers.: Aug. 5, 2019 Contract No. C19173980 Amendment No. 1 Page 6 of 15 DocuSign Envelope ID: DC35942C-F252-4A28-81 AD-7667F4577D0D Assuming the Administrative Draft IS concludes that all impacts can clearly be reduced to a less than significant level, CONSULTANT will respond to CITY comments on the Administrative Draft IS- MND, conduct final revisions and prepare the Draft IS-MND for public review. CONSULTANT will provide a single electronic screen check version of the Draft IS-MND for CITY review and approval prior to publication. Once approved to go to print, CONSULTANT will submit the Draft IS-MND in electronic format and will print up to 50 bound paper copies with appendices on a USB drive inside the back cover, as well as 15 copies on a CD as required by the State Clearinghouse. CONSULTANT will prepare a Notice of Intent (NO1) to Adopt an IS-MND. CONSULTANT will be responsible for mailing of the IS-MND to the State Clearinghouse and County Clerk. CITY will be responsible for mailing to responsible/interested agencies and members of the public who have requested to be contacted, other relevant organizations and non -state agencies, and newspaper ad publication. Deliverables: • Draft IS-MND (50 paper copies and electronic format) • Notice of Intent to Adopt an IS-MND • State Clearinghouse required documents (15 CD copies and Notice of Completion) Subtask 2.4. Final IS-MND Upon receipt of public comments on the Draft IS-MND, CONSULTANT will prepare draft responses to comments for CITY review. This task assumes that up to twenty comment letters will be received, including one lengthy (over three pages) or substantive letter, that can be adequately responded to in a maximum of 44 professional staff hours. The actual level of effort required to respond will depend on the length, detail, and sophistication of the comments, in addition to the number of letters received. If the number and/or complexity of comments received exceeds this assumption, the level of effort will be evaluated. Upon receipt of CITY comments on the draft responses, CONSULTANT will incorporate changes and prepare the Administrative Final IS-MND. Following Final IS-MND approval, CONSULTANT will provide a PDF of the Final IS-MND (including responses to comments and the MMRP) and up to 20 bound paper copies. CONSULTANT will prepare the Notice of Determination (NOD). CITY will file the NOD. The Final IS-MND will include a mitigation monitoring and reporting program (MMRP) in accordance with CITY requirements. The MMRP will be provided in a format designed for use by planners, environmental monitors, or code enforcement officers. The plan will be in detailed table format, and will compile the mitigation measures developed within the body of the EIR, as well as information necessary to monitor compliance with each measure. Deliverables: • Administrative Final IS-MND (electronic format) • Responses to Comments on the Draft IS-MND (electronic format) • Final IS-MND, including Responses to Comments (20 hard copies and electronic format) • Mitigation Monitoring and Reporting Program • Notice of Determination City of Palo Alto Vers.: Aug. 5, 2019 Contract No. C19173980 Amendment No. 1 Page 7 of 15 DocuSign Envelope ID: DC35942C-F252-4A28-81 AD-7667F4577D0D Subtask 2.5. Public Hearings CONSULTANT's principal in charge and/or project manager will attend two public hearings on the project. If desired, CONSULTANT will make a presentation at the hearings summarizing the environmental review process and IS-MND conclusions. Deliverables • PowerPoint presentation As Amendment No. 1 and in addition to the above, CONSULTANT shall provide the following: Task 3. Additional meeting with City Staff. 3.1. Rincon Consultants' project manager and lead analyst will prepare for and attend one additional meeting with City staff to discuss approach for the Administrative Draft IS-MND, including potential project changes, and needed revisions to the impact analyses. Task 4. Vehicle Miles Traveled (VMT) Analysis. 4.1. As of July 2020, the CEQA Guidelines require analysis of impacts related to VMT. To address this requirement, Hexagon Transportation Consultants, Inc. will perform a VMT analysis. The analysis will use the City of Palo Alto's travel demand model and the analysis will be based on the City's VMT policies/guidelines. Task 5. Draft IS-MND Revisions. 5.1. Rincon Consultants will review and update the administrative draft ISMND, including the project description, environmental setting, and impact analysis to reflect current environmental conditions and requirements under CEQA, including required analysis of VMT impacts. In addition, the air quality, air quality, greenhouse gas emissions, and energy analysis will be updated to reflect project changes, current greenhouse gas emissions threshold methodology and new VMT data. We have assumed one consolidated set of comments on the Draft Initial Study and two rounds of review. Task 6. Level of Service (LOS) Analysis Updates. Should the City change the project to remove proposed housing units from the 525 San Antonio Road site, Hexagon will update the Transportation Impact Analysis to be consistent with the current project. This would involve the following subtasks: 6.1. Update Project Trip Generation, Distribution, and Assignment. Project trips generated by the proposed project will be updated based on the revised project description of reduced total number of housing units using trip rates in the Institute of Traffic Engineers' Trip Generation Manual, 10th Edition. The directional distribution of site generated traffic will be forecast based on trip distribution used in the previously submitted February 20, 2020 study. The revised site -generated traffic will be assigned to the roadway network based on the trip generation and distribution pattern discussed above. City of Palo Alto Vers.: Aug. 5, 2019 Contract No. C19173980 Amendment No. 1 Page 8 of 15 DocuSign Envelope ID: DC35942C-F252-4A28-81 AD-7667F4577D0D 6.2. Update Evaluation of Existing Plus Project Conditions. Updated project -generated traffic will be added to the existing traffic volumes. Intersection levels of service under existing plus project conditions will be evaluated using the TRAFFIX software. Intersection level of service calculations will be conducted to estimate existing plus project traffic conditions during the AM and PM peak hours after the completion of the project. Intersection impacts associated with the development will be evaluated relative to existing conditions. 6.3. Update Evaluation of Background Plus Project Conditions. Updated project -generated traffic will be added to the background condition traffic volumes. Intersection levels of service under project conditions will be evaluated using the TRAFFIX software. Intersection level of service calculations will be conducted to estimate project traffic conditions during the AM and PM peak hours after the completion of the project. Intersection impacts associated with the development will be evaluated relative to background conditions. 6.4. Update Evaluation of Cumulative Plus Project Conditions. Updated project -generated traffic will be added to the cumulative condition traffic volumes. Intersection level of service calculations will be conducted to estimate project traffic conditions during the AM and PM peak hours after the completion of the project. Intersection impacts associated with the development will be evaluated relative to cumulative no project conditions. 6.5. Update Freeway Segment Analysis. The number of updated project trips on nearby freeway segments will be compared to the CM P's threshold for determining the need for freeway level of service analysis. Freeway segments that require a level of service analysis will be analyzed for the AM and PM peak hours as required by the CMP guidelines. 6.6. Update Site Access, On -Site Circulation and Parking. Hexagon will revise the review of the project site plan based on the updated number of project trips assigned to the site driveways, in order to determine the overall adequacy of the site access and on -site circulation in accordance with generally accepted traffic engineering standards and to identify any access or circulation issues that should be improved. Parking will be evaluated relative to the City's Code. 6.7. Update Evaluation of Vehicle Queuing. For selected locations where the project would add a significant number of left -turning vehicles, the adequacy of existing/planned storage at turn pockets will be re -assessed by means of comparison with expected maximum vehicle queues. 6.8. Description of Deficiencies and Recommendations. Based on the results of the updated level of service calculations, deficiencies caused by the site -generated traffic will be identified and described. Recommendations will be formulated that identify the locations and types of improvements or modifications necessary to address the deficiencies. Improvements could include street widenings, lane additions, changes in lane usage, or modifications to existing traffic signals. City of Palo Alto Vers.: Aug. 5, 2019 Contract No. C19173980 Amendment No. 1 Page 9 of 15 DocuSign Envelope ID: DC35942C-F252-4A28-81 AD-7667F4577D0D 6.9. Reports. Rincon Consultants findings and recommendations will be summarized in a draft TIA report. Hexagon Transportation Consultants will respond to editorial comments on the draft and prepare a final TIA report. City of Palo Alto Vers.: Aug. 5, 2019 Contract No. C19173980 Amendment No. 1 Page 10 of 15 DocuSign Envelope ID: DC35942C-F252-4A28-81 AD-7667F4577D0D EXHIBIT "B" SCHEDULE OF PERFORMANCE, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) CONSULTANT shall perform the Services so as to complete each milestone within the date of execution of the Agreement to January 31, 2022. CONSULTANT shall provide a work plan of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed. The schedule of work shall include an estimated budget for each task (and any others not identified below), including estimated work hours for each person working on that task and their billable rate. The CITY's City Manager (or his designee(s)) shall approve the schedule of work, at which time it will become integrated into this contract. MILESTONES Kickoff Meeting - Within one week of Authorization to Proceed 2.1 Project Description - Within three weeks of kickoff meeting and receipt of all necessary project and site information 2.2 Admin. Draft Initial Study (IS) - Consultant will submit the Administrative Draft Initial Study within two weeks of City approval of project traffic study 2.3 Draft Initial Study -Mitigated Negative Declaration - Within two weeks of receipt of City comments on Administrative Draft Initial Study 2.4 Final IS-MND - Within two to three weeks of close of Public Review period and receipt of all comments on Draft IS-MND 2.6 Public Hearings - As scheduled 3.1 Additional meeting with City Staff— Rincon will schedule the meeting within one week of Notice to Proceed 4.1 Vehicle Miles Traveled (VMT) Analysis — Hexagon will complete within three weeks of Notice to Proceed and receipt of the final project description 5.1 Draft IS-MND Revisions — Rincon will submit the revised Administrative Draft IS-MND within approximately three to four weeks of City approval of the of the VMT Analysis. 6.1 - 6.9 Level of Service (LOS) Analysis Updates - Rincon will submit the revised Administrative Draft IS-MND within approximately three to four weeks of City approval of the of the VMT Analysis City of Palo Alto Vers.: Aug. 5, 2019 Contract No. C19173980 Amendment No. 1 Page 11 of 15 DocuSign Envelope ID: DC35942C-F252-4A28-81 AD-7667F4577D0D EXHIBIT "C" COMPENSATION, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY's Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services do not exceed the amounts set forth in Section 4 of this Agreement. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1: Project Management $7,080.00 Task 2: Environmental Assessment and Clearance $115,433.00 Task 3: Additional Meeting with City Staff $2,363.00 Task 4: Vehicle Miles Traveled (VMT) Analysis $6,900.00 Task 5: Draft IS-MND Revisions $7,692.00 Task 6 (6.1 to 6.9): Level of Service (LOS) Analysis Updates $10,090.00 Sub -total Basic Services $149,558.00 Reimbursable Expenses $7,898.00 TOTAL BASIC SERVICES AND REIMBURSABLE EXPENSES $157,456.00 Additional Services $13,041.00 MAXIMUM TOTAL COMPENSATION $170,497.00 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be City of Palo Alto Vers.: Aug. 5, 2019 Contract No. C19173980 Amendment No. 1 Page 12 of 15 DocuSign Envelope ID: DC35942C-F252-4A28-81 AD-7667F4577D0D accompanied by appropriate backup information. Any expense anticipated to be more than $500.00 shall be approved in advance by the CITY's project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY's project manager's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's Project manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. City of Palo Alto Vers.: Aug. 5, 2019 Contract No. C19173980 Amendment No. 1 Page 13 of 15 DocuSign Envelope ID: DC35942C-F252-4A28-81 AD-7667F4577D0D EXHIBIT "C-1" SCHEDULE OF RATES, AMENDMENT NO. 1 (AMENDED, REPLACES PREVIOUS) RINCON CONSULTANTS, INC. Cubberley Master Plan CS-MNID Scenario Cost Estimate C lossibcdin l -) a o Senor Professional II : D n a 11 a o 0 a C _ q Task_ Lob,Cot Hours $215 $170 2154. $112 $1 i0 $105 $75 Task L Project Management Subtask 11: Project Management 54,320 30 4 13 6 5ubtask 1.0 Project Meet ng 52,590 14 4 ID Task 2: Env ionmenta[Assessment and Clearance 5ubtask 1.11 Project Description 52,405 20 1 2 12 4 1 5ubtask 02: Administrative Draft Initial Study 53,120 22 a 15 4 A it G:�••-'.' 51,446 16 2 2 1.2 8'0=.=> --_-- __, 52,24 20 2 4 1.2 2 C _": ___:_'_=._1_:--_c5{irxk,i001hulbric evaluator]; 511,396 54 4 12 32 28 4 4 En_.._.. 51236 10 2 0 Ge- fir;5, ST 3 52,303 18 2 4 12 Gree.'mouse Gas tmsnons 52,300 11 2 4 12 Lmtd Use and Running 11,235 10 2 0 MIXSe 53,44& 29 2 2 24 1 Roar Serveres 51,344 11 2 8 1 Transportation and Traffic Minoan tabor only,/ 5766 6 2 4 LM Odes a nd Serv'im 5y'sl m5 51,236 10 2 8 Other CEQA De CUSDC+t5 '15' 52,564 22 4 4 12 2 5ubtask 00 Draft 4.-MND 51,710 14 2 4 6 5ubtask 2.4r. Final I5-MND- M.IY?I>P 51,124 _ 1. 1 4 2 1 Responses 10 COnmenr5 55,514 44 4 5 32 2 Finai15-MMDPutlicotion 5731 71 2 4 5ubtask 05: Public liea:ings 52,720 15 1 - Task 3: Additional Meeting With City Staff 12`963 15 1 10 4 Task 5, IS-MND Re,ns brts $7,412 58 4 e 8 28 4 6 OTALC• 5 67,1)_ 50} }4 171 60 22B 70 56 }2 Ci•e=- _ __'Cetnil velide Costs $ 273 ISATD Printed Ctpnits (11 Ad.Frin Draft, 50 Brat, 20 Final) 'S 2,4535 Rundle/el Metering geld Iltipment $ 1CD WIC Records Search $ 1,CCO Palen Records Searcy 5 400 I magic Transportation Consultants 5 55,9[0 Task 4: Vehicle Miles Traveled {VMl)A1Wy0s 5 6,900 Task0: Level ofSen.ilr {1D5)Analyas Update 5 1G09f General and Administrative Su btotal Additional costs: 5 5 6,49] 84,648 Sum m Dr/ Pmfessio nal Flies 51I0otY Direct Costs subtotal Additional Smites {additional senior pro goods 411Pruved in August 2019 and February 2920) 367,663 5®,046 513,Wtl Rincon Schedule of Rates: TOTAL PROJECT BDD4ET 5 170,497 Labor Categories Hourly Rate Principal / Director I $215.00 Senior Professional 11 $170.00 Senior Professional I $156.00 Professional II $112.00 City of Palo Alto Vers.: Aug. 5, 2019 Contract No. C19173980 Amendment No. 1 Page 14 of 15 DocuSign Envelope ID: DC35942C-F252-4A28-81 AD-7667F4577D0D Technical Editor $110.00 GIS/CADD Specialist I $108.00 Clerical / Administrative Assistant I $75.00 City of Palo Alto Vers.: Aug. 5, 2019 Contract No. C19173980 Amendment No. 1 Page 15 of 15 Minor, Beth From: Sent: To: Cc: Subject: 0 Rice, Danille Friday, June 18, 2021 1:38 PM Council, City; Council Agenda Email Executive Leadership Team; Boyd, Holly Council Agenda Consent Questions for June 21: Items 7 and 9 Council Question Response Dear Mayor and Council Members: On behalf of City Manager Ed Shikada, please find below the staff responses to inquiries made by Council Member Cormack in regard to the June 21 Council Meeting agenda. Item 7: Contract Amendment #1 for C19174715 Swatt Miers Architects, Inc 1. Does approving this contract eliminate the requirement in the earlier agreement that the city pay for a new kennel building? Approval of this contract does not eliminate the requirement in the agreement between the City and Pets In Need to provide a new kennel building. However, the agreement does not require the City to pay more than $3.4 million for the Animal Shelter projects. Pets In Need and the City will need to work together to identify additional funding for the new kennels. Item 9: Amendment to Contract No. C19173980 with Rincon for Cubberley CEQA 1. Will the school district participate in task 3 and 6 (page 91)? School District staff will be invited to participate in Tasks 3 and 6 of the amended agreement. Thank you. CITY +i! PALO Ei LT E Danille Rice Executive Assistant to the City Manager (650) 329-2105 1 danille.rice@cityofpaloalto.org www.cityofpaloalto.org 1E3 Ell MI CVTY 0 PALO ALTO City of Palo Alto (ID # 12273) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: EMS Supplies and Equipment Title: Approval of two Blanket Purchase Orders With Bound Tree Medical, LLC and Life -Assist for the Purchase of Medical Supplies and Services Not -to - Exceed $132,000 per Year, for a Total Not -To -Exceed Amount of $660,000 for up to Five years From: City Manager Lead Department: Fire Recommendation Staff recommends that Council: 1. Approve and authorize the City Manager or designee to execute two blanket purchase orders (BPO) with Bound Tree Medical, LLC and Life -Assist, Inc. for a period of one year at $66,000 per Blanket Order, for purchases of emergency medical supplies and equipment, for a total combined amount not to exceed $132,000 per year. 2. Authorize the City Manager or his designee to exercise up to four (4) one-year options to renew each BPO at $66,000 per year per BPO, for a total maximum amount not to exceed $660,000 under both BPOs through June 30, 2026. Background The City of Palo Alto Fire Department transports patients in medical emergencies to local hospitals. Disposable supplies and equipment are needed to maintain the level of service and care the City provides to the community. Discussion As the price of medications and medical devices have been trending upwards, these BPOs will cap allowable price increases without justification at 5% per year for disposable supplies and equipment for the treatment and transport of patients. The above requested annual amounts include a contingency for price increases over the term of the agreements. Maintaining a BPO with one or two vendors simplifies the ordering system and allows equipment coordinators to easily maintain caches of medical supplies and surplus for disasters and medical call surges. City of Palo Alto Page 1 The BPOs include services incidental to the purchase of goods, requiring vendors to maintain proficiency in training and use of the equipment with expertise in the EMS field. It also states that vendors will be available 24/7 in case of a large-scale emergency to maintain supplies and equipment. Solicitation/Bid Process Summary Staff completed a competitive bid process involving four vendors responding over a four -week period. Staff reviewed all bids and compared evaluations and credentials. Life -Assist, Inc. and Bound Tree Medical, LLC are the current vendors, and each submitted bids which received the highest objective scores compared to other bids. Henry Shein submitted a bid that involved many substitute items and required some items be purchased by box or case, as opposed to by the unit. This would require the Fire Department to over -order products and impede the ability to maintain an appropriate inventory, and potentially lead to waste. Staff found them to be non -responsive due to the substitutions and not bidding on the quantities required. Venous Technologies Inc. bid but was found to be non -responsive as they did not meet the bid criteria. The two remaining responsive bidders are the current incumbent providers. The decision was made to award to two vendors for this program due to medical supply shortages (e.g. personal protective equipment), medication shortages and shipping challenges from other countries or states. This will allow the Fire Department to maintain a fluid stream of supplies throughout the term of the agreements by ordering from either vendor, each up to $66,000 annually. If not approved, the City is at risk of not having equipment and supplies for efficient and safe medical transportation services. Table 1: Summary of Request for Quotation Process PROPOSAL DESCRIPTION/NUMBER Proposed Length of Project Number of vendors notified through City's eProcurement system Number of solicitation packages downloaded by vendors Total Days to Respond to Proposal Non -Mandatory or Mandatory Pre -Proposal Meeting Number of Company Attendees at Pre -Proposal Meeting RFQ 180788 EMS MEDICAL SUPPLIES 5 years 145 4 29 None Scheduled NA City of Palo Alto Page 2 Number of Proposals Received 4 Range of Proposal Amounts (responsive bids) For the City's estimated annual quantities and usage pricing totals ranged from $138,942 to $149,190 per year. RESOURCE IMPACT Upon the approval of this BP() Agreement, the City will work in coordination with the vendors to oversee the purchasing of supplies and equipment and ensure the usage and the purchases are appropriate and consistent to the call volume in Emergency Medical Services (EMS). The Fire Department has annual funding in the current budget to cover expenses for the first year of this agreement, subsequent years are subject to the annual appropriation of funds. POLICY IMPLICATIONS This recommendation is consistent with existing City policies and will allow the City to continue purchasing emergency medical supplies and equipment at competitive prices. ENVIRONMENTAL REVIEW This contract is not a project under the provisions of the California Environmental Quality Act, as it will not cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment (Pub. Res. Code section 21065). Attachments: • Attachment A - Request for Quotes Scope of Work, EMS Medical Equipment 2020 • Attachment B - Pricing Sheet for EMS Medical Supplies City of Palo Alto Page 3 ATTACHMENT A 1. BACKGROUND 1.1. The City of Palo Alto seeks a vendor to provide Emergency Medical Equipment, Supplies, and Support Services for the City of Palo Alto Fire Department. 1.2. To participate in the Request for Proposal ("RFP") the vendor(s) will provide Emergency Medical Equipment, Supplies, and Services for the Palo Alto Fire Department. All prospective vendors, in submitting a proposal, thereby certify that they have investigated all aspects of the RFP, that they are aware of the applicable facts pertaining to the RFP process, its procedures and requirements, and they have read and understand the RFP. 1.3. The contract term is expected to be a one (1) year contract commencing July 1, 2021 and terminating on June 30, 2022, with four (4) optional years of renewal. The City of Palo Alto Fire Department, Emergency Medical Services Division, shall manage the contract for the duration of the term of the agreement. 1.4. The Palo Alto Fire Department is a transport agency that provides a high level of emergency care to the community. Medical supplies and equipment are an essential part of the delivery model that must be reliable and available always. Provision by the vendor of high -quality training in the features and uses of the supplies and equipment to be provided is an important element of the services being sought. 1.5. Cooperative Purchasing Option When in the opinion of the Director of Purchasing, it will not create a burden or hardship on the City of Palo Alto and the anticipated prices will not be adversely affected, other governmental entities, such as cities, counties and special districts, may "piggyback" on this agreement according to the rules that may be applicable to such entity. Any such piggy -back awards will be made independently by each such entity. The City is not an agent, partner or representative of these entities or of the awarded Vendor (if an award is made) and is not obligated or liable for any action of such entities that may arise out of such independently negotiated piggy -back agreements. Each government entity is solely responsibility for its own agreement with and order placement and payments to the Vendor. 2. SCOPE OF SERVICES/VENDOR REQUIREMENTS The specifications or scope of work included have been prepared to describe the standard quality, performance, and other characteristics needed to meet City requirements. Experienced Staff and Quality of Service: 2.1. Vendor is a national wholesale distributor of Emergency Medical Service ("EMS") Equipment and Supplies, specializing in servicing the needs of Basic and Advanced Life Support Ambulances and First Responder Units. 2.2. Vendor must have a local representative, available within the Bay Area, who has an extensive background and working knowledge of California Emergency Medical Systems, equipment and supply expertise to include training or education experience. Vendor must have a background in EMS education to assist with equipment familiarization and ability to check users for quality of knowledge on equipment and use in different scenarios as needed. 2.2.1.1. Local representative must provide his or her resume/bio, listing education, training, experience, and references. (required submittal) 2.2.1.2. The City of Palo Alto requires that the assigned local representative visit monthly the Palo Alto Fire Department's Emergency Medical Supply Coordinators and/or the EMS Chief. 2.2.1.3. Local representative must be available on a 24/7 basis via cell phone or voice mail to meet the EMS needs of the Palo Alto Fire Department in case of emergency. 2.2.1.4. Any placed calls must be returned by the local representative or the company representative on the same business day. 2.3. The selected vendor(s) local representative must be able to provide In -Service Training of new equipment, on an as needed basis at no cost to the City, to include: • orientation, usage, contraindications, indications, trouble shooting, etc. • review of equipment listed on Attachment E: o review of the indications o contraindications o trouble -shooting to prepare crews in use o standardized utilization to treat and/or assess patient care 2.3.1.1. Training for all shifts is required for continuity and quality assurance to ensure consistency. 2.3.1.2. There are three shifts, training is delivered in a split shift delivery format (Half shift one day and half shift on the second day). 2.3.1.3. Training, in general, would take 6 days to manage all three shifts, typically in the mornings. 2.3.1.4. Most major training consisting of emergency scenarios utilizing infrequent skills, including the medical equipment and/or supplies mentioned above, is delivered twice a year. 2.4. Vendor must have knowledge and awareness of the medical equipment and supplies industry's supply and demand, particularly in challenging or shortage periods, in order to pre-empt, communicate, and offer solutions to the City. 2.5. Vendor must understand or be able to gain a deep understanding of the City's workflow and needs, serving as a partner and collaborating to meet the goals and requirements for responding to our community. 2.6. Vendor must have a business track record in EMS such as keen industry knowledge and acumen, responsive customer service, clear and timely communication, and reliable delivery of equipment and supplies. 2.6.1.1. Provide five references that the prospective Vendor currently provides EMS equipment and supplies within the nine Bay Area Counties. (required submittal) The information should include: • contact name • address, email, and phone information • term of contract • contract value Quality of Medical Equipment and Supplies and Delivery of Goods 2.7. Vendor must meet the proposal items specifications listed in the Request for Proposal, e.g. SPECIFIED MANUFACTURER and MANUFACTURER'S ORDER NUMBER. Prospective vendors must submit a UNIT PRICE for each item listed on the Request for Proposal. 2.8. Vendor must submit a bid on all requested items, City requires Vendors to bid on a minimum of 95% of the line items listed in the bid to be deemed "responsive". If items quoted are below 95% the bid will be deemed "non -responsive". 2.9. SUBSTITUTIONS WILL NOT be accepted on any of the items unless the manufacturer has discontinued the listed item and/or pre -approved by the EMS Chief or designee. In the event substitutions of products are offered; samples would be required to be sent to the project manager for approval at the vendor's expense and at no additional cost to the City. Any substitutions shall be discussed and approved prior to shipping. Approval of substitutions will be at the sole discretion of the City to include but not be limited to and based on similarity of current item, quality of item, meets County requirements and field experience with item, fit and feel, if PPE. 2.10. Vendor shall provide computerized monthly or annual reports as requested in an acceptable format to the City of Palo Alto Fire Department, typically a spreadsheet. This may include but not be limited to usage, itemization, and cost report, e.g. the report would itemize the product name, manufacturer's item number, etc. as requested by City. 2.11. The selected vendor shall accept the City of Palo Alto Payment Terms of Net 30 Days, paid after receipt of invoice. Only invoices of actual purchase or credit memos for actual returns or other credits shall be sent to the Fire Department's Accounts Payable as instructed on the Purchase Order ("PO"). 2.12. Prices shall be F.O.B. Destination within Palo Alto, Freight Prepaid. Pricing shall include all applicable transportation and delivery charges. Standard Shipment via UPS or Local Freight carrier is acceptable. The vendor must have the ability to provide overnight shipments if requested by the Fire Department. Overnight delivery charges shall be incurred by the City of Palo Alto. Vendor shall process and deliver all orders in a timely manner. Vendor shall provide the EMS Division advanced notice of delivery date and time. Vendor shall be able to accept orders by the assigned EMS Medical Supply Officers and/or the EMS Chief via fax, voice mail or email. Orders shall be delivered to the following locations: 2.12.1. Station 1 at 301 Alma Street, Palo Alto, California 94301 2.12.2. Station 2 at 2675 Hanover Drive, Palo Alto, California 94304 2.12.3. City Hall 250 Hamilton Ave. Palo Alto, California 94301 2.13. Vendor will offer a guaranteed contract price for the period July 1, 2021 through June 30, 2022. Starting July 1, 2022, July 1, 2023, July 1, 2024, July 1 2025 and July 1, 2026 the City of Palo Alto allows the vendor to increase the contract price of each item as outlined below, if an extension is granted by the City of Palo Alto. 2.13.1. A maximum increase of 5% annually of the aggregate total for all items will be accepted by the City of Palo Alto if the awarded vendor can provide manufacturer increase justification on the affected line items. This annual increase is designed to cover all manufacturer increases on Advanced Life Support (ALS) medications and EMS Equipment and Supplies. The price increase can then go in effect on July 1, of each contract year. 2.13.2. All medications quoted must have 80% shelf life remaining when delivered to the Fire Department. No medications with less than 18 months of life shall be accepted without prior authorization. Expiration date must be listed on all medications. 2.14. Vendor must allow for future options to order equipment if Palo Alto Fire Department transitions to an on-line, or other inventory management system. 2.15. The City of Palo Alto understands the challenges of the National medication shortages and will work with the Vendor, reasonably, for changes in packaging, concentration and dosages of medication. However, delivering medication outside of the agreed upon contract without prior knowledge and approval may be grounds of termination of the agreement. Medication errors are an identified issue with substitutions without prior training and notification to the medical professionals. 2.16. No substitutions are allowed during the term of the contract without prior approval. RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Category Description Specified Manufacturer Manufacturer Product No. Unit of Measure Estimated Annual Quantity 1 Airway and Suction Airway, Hudson CATH-GUIDETM, # 5.5 Infant Teleflex Medical 1171 Each 1 2 Airway and Suction Airway, Hudson CATH-GUIDETM, # 6.0 Small Child Teleflex Medical 1170 Each 1 3 Airway and Suction Airway, Hudson CATH-GUIDET"', # 7.0 Child Teleflex Medical 1169 Each 2 4 Airway and suction Airway, Hudson CATH-GUIDETM , # 8.0 Small Adult Teleflex Medical 1168 Each 2 5 Airway and Suction Airway, Y' Hudson CATH-GUIDET" , # 9.0 Medium Teleflex Medical 1164 Each 15 6 Airway and Suction Airway,Hudson CATH-GUIDETM, # 10. Medium Adult Teleflex Medical 1167 Each 20 7 Airway and Suction Airway, Hudson CATH-GUIDETM, # 11. Adult Teleflex Medical 1166 Each 14 8 Airway and Suction Airway, Hudson CATH-GUIDETM, # 12. Large Adult Teleflex Medical 1165 Each 10 9 Airway and Suction Endotracheal Tube, MedSource CUFFED, 6.0 Medsource MS -23260 Each 10 10 Airway and Suction Endotracheal Tube, MedSource CUFFED, 7.0 Medsource MS -23270 Each 30 11 Airway and Suction Endotracheal Tube, MedSource CUFFED, 8.0 Medsource MS -23280 Each 10 12 Airway and Suction Endotracheal Tube, MedSource CUFFED, 9.0 Medsource MS -23290 Each 10 13 Airway and Suction ET Tube Introducer, Bougie -To -Go TM Sun Medical 9-0212-82 Each 20 14 Airway and Suction ET Tube Holder, LaerdalTM THOMAST"" Adult Laerdal Medical 600-10000 Each 30 15 Amway and Suction Laryngoscope Blade, Macintosh Blade, # 0, Disposable Sun Medical 2145-13400 Each 1 16 Airway and Suction Laryngoscope Blade, Macintosh Blade, # 1, Disposable Sun Medical 2145-13401 Each 1 17 Airway and Suction Laryngoscope Blade, Miller Blade, # 0, Disposable Sun Medical 2145-13501 Each 1 18 Airway and Suction Laryngoscope Blade, Miller Blade, # 1, Disposable Sun Medical 2145-13502 Each 1 19 Airway and Suction Laryngoscope Handle, Standard, Medium Sun Medical 864 MED C Each 1 20 Airway and Suction Laryngoscope Handle, Standard, Small Sun Medical 865 SMALL Each 1 21 Airway and Suction Lubricating Jelly, Sterile, 2.7 gm (144 per box) Medsource 1340-27000 Box 1 22 Airway and Suction King Vision aBlade, Size 3C, Channeled Ambu, Inc. KVLAB3C Each 15 23 Airway and Suction King Vision TM aBlade Case Ambu, Inc. KVISO1ADCASE Each 1 24 Airway and Suction King Vision Kit Ambu, Inc. KVLABKIT3 Each 2 25 Airway and Suction Magill Forcep, Adult Sun Medical 2-14A Each 1 RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Category Description Specified Manufacturer Manufacturer Product No. Unit of Measure Estimated Annual Quantity 26 Airway and suction Magill Forcep, Child Sun Medical 2-14C Each 1 27 Airway and suction Nasopharyngeal Airway, 20 fr., Robertazzi Sun Medical 2-0211-8120 Each 1 28 Airway and Suction Nasopharyngeal Airway, 22 fr., Robertazzi Sun Medical 2-0211-8122 Each 1 29 Airway and suction Nasopharyngeal Airway, 24 fr., Robertazzi Sun Medical 2-0211-8124 Each 6 30' Airway and suction Nasopharyngeal Airway, 26 fr., Robertazzi Sun Medical 2-0211-8126 Each 6 31 Airway and Suction Nasopharyngeal Airway, 28 fr., Robertazzi Sun Medical 2-0211-8128 Each 1 32 Airway and Suction Nasopharyngeal Airway, 30 fr., Robertazzi Sun Medical 2-0211-8130 Each 5 33 Airway and Suction Nasopharyngeal Airway, 32 fr., Robertazzi Sun Medical 2-0211-8132 Each 6 34 Airway and Suction Nasopharyngeal Airway, 34 fr., Robertazzi Sun Medical 2-0211-8134 Each 1 35 Airway and Suction Nasopharyngeal Airway, 36 fr., Robertazzi Sun Medical 2-0211-8136 Each 2 36 Airway and Suction S-SCORT® 9 Suction Unit Battery Sscor, Inc. 80637 Each 2 37 Airway and Suction S-SCORT® I I I Suction Unit Battery Sscor, Inc. 80638 Each 1 38 Airway and Suction S-SCORT® Replacement DC Cable Sscor, Inc. 80665 Each 2 39 Airway and Suction S-Scort Suction III Sscor, Inc. 74000 Each 1 40 Airway and Suction Suction Canister, 1200cc Medsource 484410 Each 25 41 Airway and Suction Tubing Suction Handle with control vent, with Suction g Medsource BT-YK20 Each 25 42 Airway and Suction Suction Tubing, 9/32 ID X 6Ft, Sterile Conmed Corporation 34300 Each 25 43 Airway and Suction Yanakuer Suction Bulb Only with Control Vent, Sterile, 50 ea/Case Medsource BT-YK10 Each 10 44 Cases, Bags and Kits Iron Duck, IV Starter Pack, Orange Fleming Industries 36015 OR Each 12 45 Cases, Bags and Kits Pelican 1010 Case, Solid Blue, cs/6 Pelican Products 1010-025-120 Case 1 46 Cases, Bags and Kits Pelican 1010 Case, Solid Yellow, cs/6 Pelican Products 1010-025-240 Case 1 47 Cases, Bags and Kits Pelican Pick N Pluck Foam Insert, 1010 Micro Case Pelican Products 1010-400-000 Each 1 48 Cases, Bags and Kits Pelican EMS Equipment Case #1550EMS, Orange Pelican Products 1550-005-150 Each 1 49 Cases, Bags and Kits Pelican, Lid Organizer and Divider Set Pelican Products 1550-406-200 Each 5 50 Cases, Bags and Kits StatPacks G3 BREATHER Pack, Red StatPacks, Inc. G35008RE Each 1 RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Category Description Specified Manufacturer Manufacturer Product No. Unit of Measure Estimated Annual Quantity 51 Cases, Bags and Kits StatPacks G3 Golden Hour, Red StatPacks, Inc. G35003RE Each 1 52 Cases, Bags and Kits Stat Packs, G3 Oxygen Module, Green StatPacks, Inc. G33004GN Each 1 53 Cases, Bags and Kits Obstetrical Kit (OB Kit) w/Head Warmer, Underpad, Large Over Drape, Apron, Poly -Bagged Motion Medical 4440010-B Each 3 54 Cases, Bags and Kits Omnimed 182100 Economy Double Door Narcotic Cabinet, Mini Omnimed 182100 Each 1 55 Diagnostic BP Unit, Adult, ADC ProsphygTM 775 American Diagnostic 775-11AN Each 14 56 Diagnostic BP Unit, Child, ADC ProsphygTM 775 American Diagnostic 775-9CN Each 5 57 Diagnostic BP Unit, Infant, ADC American Diagnostic 775-71N Each 1 58 Diagnostic BP Unit, Large Adult, ADC ProsphygTM 775 American Diagnostic 775-12XN Each 7 59 Diagnostic BP Unit, Small Adult, ADC ProsphygTM 775 American Diagnostic 775-10SAN Each 2 60 Diagnostic BP Cuff & Bladder, AdcuffTM 1 Tube, Adult, Navy American Diagnostic 845-11AN-1 Each 3 61 Diagnostic Blood Pressure Unit Aneroid Gauge American Diagnostic 808N Each 1 62 Diagnostic CapnoLine® FilterLine® Set, Non -Humidified Adult/Ped Medtronic 010579 Each 30 Diagnostic PEDI1 CapnoLine® Oral Nasal Cannula with 02, Smar63 Medtronic 007269 Each 20 64 Diagnostic Smart CapnoLine® Plus Oral Nasal Cannula with 02, ADULT Medtronic 010210 Each 300 65 Diagnostic EKG Paper, Lifepak® 11, 12 & 15 PaperPercision Precision Charts LP12 Each 50 66 Diagnostic Electrode, 1.5" (Packs of 50)Ambu BLUE SENSOR Ambu, Inc. SP -00-S/50 Pack 240 67 Diagnostic Microdot@ Xtra Control Solutions ridg CambSens e ors 120-02 Each 1 68 Diagnostic Microdot® Xtra Glucometer with Case Cambridge Sensors 201-01 Each 15 69 Diagnostic Microdot® Xtra Test Strips (Bottle of 25) Cambid ens 200-25 Bottle 6 70 Diagnostic Microdot® Xtra Test Strips (Bottle of 50) Cambridge Sensors 200-50 Bottle 13 71 Diagnostic Lancet, 23G, 2.2mm (8x/200), Microdot® Xtra Cambridge Sensors 523-23 Box 10 72 Diagnostic Lifepak 15 Case, Standard, Stat Packs StatPacks, Inc. G39020TK Each 1 73 Diagnostic Lifepak 15 Carrying Case, Includes Right Pouch and Left Pouch Stryker 11577-000002 Each 3 74 Diagnostic Lifepak 12 or 15 Monitor, Carrying Case, Top Pouch Stryker 11220-000028 Each 2 75 Diagnostic Lifepak 15 Monitor, Back Pouch Stryker 11260-000039 Each 5 RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Category Description Specified Manufacturer Manufacturer Product No. Unit of Measure Estimated Annual Quantity 76 Diagnostic Lifepak 15 Monitor, Sholuder Strap Stryker 11577-000001 Each 2 77 Diagnostic (208 00) Physio-Control Trunk Cable w/4 -wire Limb lead (5') Stryker 11111-000018 Each 1 78 Diagnostic g3 Physio-Control 6 -Wire Precordial Lead Attachment ( 00 ) Stryker 11111-000022 Each 1 79 Diagnostic Physio Control Edge Electrode w/Preconnect, Adult Stryker 11996-000017 Each 16 80 Diagnostic Physio Control Edge Electrode, Pedi Stryker 11996-000093 Each 1 81 Diagnostic Physio -Control Quick -Combo Therapy Cable Stryker 11113-000004 Each 1 82 Diagnostic Masmio® Rainbow® RC -4 20 -pin Patient Cable, 4 ft. Masimo Corporation 2406 Each 2 83 Diagnostic Sensor,Masimo M-LNCS DCI-I Reusable Adult Masimo Corporation 2501 Each 1 84 Diagnostic Rainbow R25 Adult Adhesive Sensor Sp02, Sp02, SpMet Masimo Corporation 2221 Each 1 85 Diagnostic Rainbow R25 -L Neo/Adult Adhesive Sensor SpO2, SpCO, SpMet Masimo Corporation 2219 Each 15 86 Diagnostic Stethoscope, Adscope, 601 Black American Diagnostic 601 BK Each 5 87 Diagnostic Stethoscope, SPRAGUE 22" tubing, Blue American Diagnostic 641RB Each 5 88 Diagnostic Blade Assembly, Single -Use, Pivoting, Purple for 3M 9661 Surgial Clippers, 50 ea/Case 3M Health Care 9660 Each 169 89 Diagnostic 3M Surgical Clipper Starter Kit 3M Health. Care 9667L Each 1 Diagnostic BRAUNScan Pro6000 Probe Covers (6x/200) Thermo90 Welch Allyn, Inc. 06000-005 Box 24 91 Diagnostic ThermoScan® Pro6000 Ear Thermometer BRAUN Welch Allyn, Inc. 06000-200 Each 16 92 Gloves Glove, SUPRENO® EC Nitrile Exam, (Box 50) Small Ansell Healthcare SEC -375-S Box 85 93 Gloves Glove, SUPRENO® EC Nitrile Exam, (Box 50) Medium Ansell Healthcare SEC -375-M Box 350 94 Gloves Glove, SUPRENO® EC Nitrile Exam (Box 50),Large Ansell Healthcare SEC -375-L Box 500 95 Gloves Ansell Large, Glove, SUPRENO® EC Nitrile Exam, (Box 50) X- Healthcare SEC -375 -XL Box 300 96 Gloves SUPRENO® EC Nitrile Exam , (Box 50) XX- Large Ansell Healthcare SEC-375-XXL Box 80 80 97 Gloves Glove, Cobalt X, EC, Small, Nitrile, Exam, Power Free, Blue, 5.5 ml palm, 100/Bx, 10 Bxs/Case Ansell Healthcare N211 Box 1 98 Gloves Glove, Cobalt X, EC, Medium, Nitrile, Exam, Power Free, Blue, 5.5 ml palm, 100/Bx, 10 Bxs/Case Ansell Healthcare N212 Box 1 99 Gloves Glove, Cobalt X, EC, Large, Nitrile, Exam, Power Free, Blue, 5.5 ml palm, 100/Bx, 10 Bxs/Case Ansell Healthcare N213 Box 10 100 Gloves Glove, Cobalt X, EC, X -Large, Nitrile, Exam, Power Free, Blue, 5.5 ml palm, 100/Bx, 10 Bxs/Case Ansell Healthcare N214 Box 60 RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Category Description Specified Manufacturer Manufacturer Product No. Unit of Measure Estimated Annual Quantity 101 Gloves FreeForm ® EC Nitrile Exam Gloves, Large FreeForm FFE-775-L Box 20 102 Gloves FreeForm ® EC Nitrile Exam Gloves, X -Large FreeForm FFE-775-XL Box 60 103 Immobilization Ambu Perfit ACE Collar w/Head Wedge Immobilizer Ambu, Inc. 000 281 151 Each 259 104 Immobilization Ambu® NAJO Head Wedge Head Immobilizer Ambu, Inc. 000 264 034 Each 25 105 Immobilization Ambu® PerfitTM ACE Extrication Collar Ambu, Inc. 000 281 000 Each 177 106 Immobilization Ambu® PerfitTM Mini ACE Extrication Collar Ambu, Inc. 000 281 106 Each 20 107 Immobilization Spint, 36 inch Economy Cardboard Foldijg Splint, 36/Case DMS 61036M Pack 1 108 Immobilization Hartwell FASPLINTTM Tapered Adapter Hartwell Medical FS15TIP Each 2 109 Immobilization Hartwell FASPLINTTM Vacuum Pump, Compact Hartwell Medical FS12C Each 2 Immobilization PU'r�tpell FASPLINTT"' Vacuum Splint w/Compact H110 Hartwell Medical FS9000RC Each 3 111 Immobilization Hartwell FASPLINTTm Vacuum Splint, Large Hartwell Medical FS803-10 Each 3 112 Immobilization Hartwell FASPLINTTM Vacuum Splint, Medium Hartwell Medical FS802-10 Each 4 113 Immobilization LSP/Allied Pediatric Board Carrying Case Allied Healthcare L720061-048 Each 1 114 Immobilization LSP/Allied Pediatric Immobilization Board Allied Healthcare L484C Each 1 115 Immobilization MedSource Extrication Device, Green Medsource MS-ED2253 Each 1 116 Immobilization SAGER® FORM III Traction Splint, Bilateral Minto S304 Each 1 117 Immobilization Sager, Ischio Perineal Cushion (saddle) for SP301 /SP304 Minto S324 Each 1 118 Immobilization Sager, Pedal Pinion (figure 8 strap) for SP301/SP304 Minto S345 Each 1 119 Immobilization Sager, Abductor Bridal (thigh strap) for SP301 /SP304 Minto S357 Each 1 120 Immobilization SAM®1 SPLINT, Finger Sam Splint, Orange/Blue, k Sam Medical SP510-0B-EN Pack 1 121 Immobilization SAM® SPLINT, Junior Size, 4 1/4" x 18", Orange/ Blue, Flatfold Sam Medical SP502-OB-EN Each 1 122 Immobilization SAM® SPLINT, Standard Size, 4 1/4" x 36", Orange/ Blue, Flatfold Sam Medical SP507-OB-EN Each 6 123 Immobilization SAM® SPLINT, Wrist Size, 4 1/4" x 9", Orange/ Blue, Flatfold Sam Medical SP500-OB-EN Each 1 124 Immobilization SAM® SPLINT, X -Large Size, 5 1/2" x 36", Orange Sam Medical SP508-OB-EN Each 20 125 Instruments/Personal Clipboard, SAUNDERS Cruiser Mate II , Letter Size Saunders Mfg. 21118 Each 1 RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Category Description Specified Manufacturer Manufacturer Product No. Unit of Measure Estimated Annual Quantity 126 Instruments/Personal Paramedic Shears, 7 1/4", Red American Diagnostic 320R Each 50 127 Instruments/Personal Penlight with pupil gauge, ADLITETM (Pack of 6) Medsource PEL-100 Pack 10 128 Instruments/Personal Ring Cutter Magnum Medical 47-373 Each 9 129 Instruments/Personal Ring Cutter Replacement Blade Magnum Medical 816 Each 1 130 IV Therapy BD SafetyGlideTM Needle, 22 ga x 1.5" Becton Dickinson C012350 Each 25 131 IV Therapy BD SafetyGlideTM Needle, 23 ga x 1" Becton Dickinson 305902 Each 25 132 IV Therapy BD SafetyGlideTM Needle, 25 ga x 5/8" (Box 50) Becton Dickinson 305901 Box 3 133 IV Therapy BDTM INTERLINK® Leverlock Blunt Cannula Becton Dickinson 303370 Each 1 134 IV Therapy BDTM TWINPAKT"' Dual Cannula Device Becton Dickinson 303390 Each 250 135 IV Therapy Easy Pull -Tight Seal, Numbered, Red, pk/100 Health Care Logistics 18319 -RED Pack 1 136 IV Therapy Easy Pull -Tight Seal, Numbered, Blue, pk/100 Health Care Logistics 18319 -BLUE Pack 1 137 IV Therapy Extension Set, 1.2m1, 8", 1-AMSAFE w/Clamp, AMSINO Amsino International AE3108 Each 1018 138 IV Therapy Extension Set, 6 in, w/1 Needleless Connector, Roberts Clamp, Luer Lock on Distal End, 100/Cs Medsource MS 83091 Each 1920 139 IV Therapy Filter Needle, 18 ga x 1.5" Cardinal Health 8881305117 Each 10 140 IV Therapy IV Catheter, BD ANGIOCATHTM, 10 GA x 3" Becton Dickinson 382287 Each 12 141 IV Therapy IV Catheter, BD ANGIOCATHTM , 14 ga x 3.25" Becton Dickinson 382268 Each 12 142 IV Therapy IV Catheter, ViaValve® Safety , 14 ga x 1.25" Smiths Medical 326800 Each 87 143 IV Therapy IV Catheter, ViaValve® Safety, 16 GA x 1.25" Smiths Medical 326210 Each 50 144 IV Therapy IV Catheter,ViaValve® Safety, 18 GA x 1.25" Smiths Medical 326510 Each 400 145 IV Therapy IV Catheter,ViaValve® Safety 20 GA x 1.25" Smiths Medical 326610 Each 350 146 IV Therapy IV Catheter,ViaValve® Safety, 22 ga x 1" Smiths Medical 326010 Each 50 147 IV Therapy IV Catheter, ViaValve® Safety, 24 GA x 5/8" Smiths Medical 326310 Each 50 148 IV Therapy IV Catheter, 14 G x 1.88 in. BD AngiocathTM BD Medical 381167 Each 1 149 IV Therapy Mucosal Atomization Device w/o syringe Pulmodyne 2170-20300 Each 30 150 IV Therapy Sharps Container, 6.9 quart, BDTM Sharps Collector Becton Dickinson 305489 Each 4 RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Category Description Specified Manufacturer Manufacturer Product No. Unit of Measure Estimated Annual Quantity 151 IV Therapy Sharps Container Provac Tube 1.5 in, 144/Case Pro -Vac Systems SS -1.5 Each 45 152 IV Therapy SharpSafety Sharps Container, 5 Qt, Red Cardinal Health 8507SA Each 13 153 IV Therapy SELEC-3 IV Set, #B36-102, 2 LUER Sites Biomedix-WAI B36-102 Each 500 154 IV Therapy IV HUIVIINIJ I I -(P I !UN Jt I , I U UKUI-', 2525 IN, VV/1 SAFELINE INJ SITE, 1 -NF VALVE, VENTED, Gnirc B. Braun Medical 352239 Each 1 155 IV Therapy Syringe, LUER LOCK, 10cc with markings to 12cc B. Braun Medical/Dynarex 4617100V 02 / 6990 Each 110 156 IV Therapy Syringe, LUER LOCK, 1cc (Box 100) Becton Dickinson/Dynarex 309628 / EXE 26050 Box 1 157 IV Therapy Syringe, LUER LOCK, 20 cc B. Braun Medical/Dynarex 4617207V 02 / 6991 Each 1 158 IV Therapy Syringe, LUER LOCK, 30 cc B. Braun Medical 4617304F-02 Each 33 159 IV Therapy Syringe, LUER LOCK, 3cc B. Braun Medical/Dynarex 4610303 02 / 6988 Each 177 160 IV Therapy Stopcock Only, 3 -Way SmithsAMdedical MX5311L Each 29 161 IV Therapy Tegaderm TM Transparent Dressing (Box of 100) 3M Health Care 1624W Box 25 162 IV Therapy Tourniquet 1" x 18", Blue, Rolled, Latex Free, 250/Bag, 2 Bags/Case Medical Products 1841-14000 Bag 12 163 Oxygen Resuscitation Aluminum Oxygen Cylinder with Toggle, D Size Cramer Decker K870MDT Each 20 164 Oxygen Resuscitation Bag Mask Resuscitator, Ambu® SPUR® II, Adult Ambu, Inc. 520 211 000 Each 80 165 Oxygen Resuscitation Bag Mask Resuscitator, Ambu® SPUR® II, Infant Ambu, Inc. 540 212 000 Each 8 166 Oxygen Resuscitation Bag Mask Resuscitator, Ambu® SPUR® II, Pediatric Ambu, Inc. 530 213 000 Each 23 167 Oxygen Resuscitation Bag Mask Resuscitator Ambu® SPUR® II, w/neonate mask Ambu, Inc. 540 211 000 Each 10 168 Oxygen Resuscitation T Piece Adaptor, 22mm O.D./15mm I.D. 50/Case (BVM-Neb) Intrasurgical Inc. 19866000 Case 1 169 Oxygen Resuscitation Pulmodyne Valved T adaptor 22mm x 30mm Pulmodyne, Inc. 313-2230 Each 1 170 Oxygen Resuscitation CPAP BiTrac ED Mask Only, Adult Large Pulmodyne, Inc. 313-7030 Each 15 171 Oxygen Resuscitation CPAP, 02-MAXTM 3 SET with Adult Medium Mask Pulmodyne, Inc. 313-7556X Each 15 172 Oxygen Resuscitation Go Pap with Neb Cannister and Neb-Connect; ,Neb connect, Standard headgear, Adult Medium Mask Pulmodyne, Inc. 313-4604NC Each 1 173 Oxygen Resuscitation Gasket "D" Oxygen Regulator, 0 -Ring, 50 ea/case Meret AREG-100WB50 Each 50 174 Oxygen Resuscitation Quick Connect Coupler, Oxygen, Ohmeda x diss Male Precision Medical 2155 Each 1 175 oxygen Resuscitation Nasal Cannula, Flared, Adult Medsource MS -24004 Each 62 RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Category Description Specified Manufacturer Manufacturer Product No. Unit of Measure Estimated Annual Quantity 176 Oxygen Resuscitation Nasal Cannula, Pediatric Medsource MS -24101 Each 1 177 Oxygen Resuscitation Nebulizer with Mask, Adult Medsource MS -22885 Each 35 178 Oxygen Resuscitation Oxygen Mask, Non-Rebreather, Adult Medsource MS -25060 Each 75 179 Oxygen Resuscitation Oxygen Mask, Non-Rebreather, Pedi Medsource MS -25058 Each 25 180 Oxygen Resuscitation Nebulizer, with Mouthpiece Flextube 7ft. Tubuing Tee -Adapter Misty Max 10sty Max 1OTM Medical Supply Solution 412038 Each 24 181 Oxygen Resuscitation Nebulizer, CONTINUOUS CARE, w/Mask, Includes Chamber, Oxygen Mask, Tubing, 50ea/Case Medsource MS -202 Each 8 182 Oxygen Resuscitation Nebulizer with adult mask, MICRO MIST Teleflex Medical 1885 Each 6 183 Oxygen Resuscitation Nebulizer with tee and mouthpiece, MICRO MIST Teleflex Medical 1883 Each 12 184 Oxygen Resuscitation Oxygen Mask, Medium Concentration, Infant, 0-2 Years, 50/Bx Teleflex Medical 396218 Each 1 185 Oxygen Resuscitation OHMEDA-Female Q.C. X DISS-F Hand Tight Precision Medical 2158 Each 1 186 Oxygen Regulator, INOVOT"" On -Board Oxygen, 2-DISS, CGA540, Pressure Reducer Inovo, Inc. BT2800-R-2 Each 1 187 Oxygen Resuscitation Regulator, Oxygen, All -Brass, 2 DISS, 1 Barb, CGA 870 Meret EMSREG8725- B2D Each 25 188 Patient Transport BACKBOARD, ULTRA-VUE 161N, BLUE Ironduck 35775-B Each 1 189 Patient Transport Bedpan, Fracture Style Medegen Medical H100-10 Each 1 190 Patient Transport Doctor Scrubz Stuffed Bear Prestige Medical 1841 Each 28 191 Patient Transport Emesis Bag CLEAN SACKTm , 24/Pkg. Medline Industries or Equivalent NON80328Z Pack 264 192 Patient Transport Garaham® MegaMover Portable Transport Graham Medical 51926 Each 28 193 Patient Transport Patient Transporter (optional to Graham MegaMover) Medsouce 3246-12345 Each 553 194 Patient Transport Hartwell COMBICARRIERTM II Hartwell Medical CC2200P Each 4 195 Patient Transport Restraint, POSEY TWICE -AS -TOUGH (T -A -T) Cuff, Ankle (Pair) J.T. Posey Company 2755 Pair 2 196 Patient Transport Restraint, POSEY TWICE -AS -TOUGH (T -A -T) Cuff, Wrist (Pair) J.T. Posey Company 2750 Pair 2 197 Patient Transport Restraint, t, Shoulder Harness System, Impervious, Orange DMS Medical 31160 -ORANGE Each 3 198 Patient Transport Bia traP Nylon Patient Restraint, Metal Buckle, 2pc, k DMS Medical 11152BK Each 2 199 Patient Transport Strap, Impervious, Metal Push Button, Loop Ends, 2 pc 5ft, Orange DMS Medical 311520R Each 1 200 Patient Transport Strap, Nylon Plastic Ladderloc Buckle, 9ft 1 pc, Black DMS Medical 16091BK Each 80 RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Category Description Specified Manufacturer Manufacturer Product No. Unit of Measure Estimated Annual Quantity 201 Patient Transport Strap, Nylon Plastic Ladderloc Buckle, 9ft 1 pc, Yellow DMS Medical 16091YL Each 80 202 Patient Transport Spray Bottle, 24oz, Empty with Spray Trigger, 12 Ea/Case Ecolab 92652395 Each 1 203 Patient Transport Urinal, Male with Lid Medline Industries DYND80235S Each 15 204 Patient Transport Wash Basin, 6 quart Medline industries DYND-80347 Each 125 205 Patient Transport Wipe, Microdot® Bleach,Tub of 160 Cambridge Sensors 600-12 Tub 1 206 Patient Transport Wipe, SUPER SANl-CLOTH® Large, TUB of 160 Wipes Q55172 Tub 30 207 Patient Transport Wipe, SANI-HANDS® ALC Antimicrobial Towelette, (100 bx) PDI D43600 Box 14 208 Patient Transport Yellow Blanket, Highway, 56" x 90", 24/Case Graham Medical 77700 Each 313 209 Pharmaceuticals Acetaminophen (Ofirmev) 100mI Vial Cardinal 4364030 Each 30 210 Pharmaceuticals Actidose-Aqua TM Charcoal, 25 gm Tube Perrigo 0121-74 Each 82 211 Pharmaceuticals Adenosine, 12 mg, 4 ml Luer-Lock Syringe Sagent Pharmaceuticals 25021-0301-68 Each 30 212 Pharmaceuticals Adenosine, 12 mg, 4 ml VIAL Cardinal Health 605104 Each 28 213 Pharmaceuticals Adenosine, 6 mg, 2 ml VIAL Cardinal Health 4391611 Each 94 214 Pharmaceuticals Adenosine, 6 mg, 2 ml Luer-Lock Syringe Sagent Pharmaceuticals 25021-0301-67 Each 12 215 Pharmaceuticals Albuterol 2.5 mg, 3 ml (Box of 30 wrapped Vials) Nephron Pharmaceuticals 00487-9501-01 Box 35 216 Pharmaceuticals Amiodarone, 150 mg, 3 ml SYRINGE Sagent Pharmaceuticals 25021-302-66 Each 25 217 Pharmaceuticals Amiodarone, 150 mg, 3 ml Brown VIAL Fresenius Kabi 0616-03 Each 168 218 Pharmaceuticals AquabilitiTM 10 ml Saline 12 ml Syringe Aquabiliti 2T0806 Each 800 219 Pharmaceuticals Aspirin, Chewable, 81 mg (Bottle of 36) Gericare 911-316 Bottle 25 220 Pharmaceuticals Atropine Sulfate, 1 mg, 10 ml LUER-JETT"" Syringe IMS Limited 7632933391 Each 50 221 Pharmaceuticals Atropine Sulfate, 8 mg, 20 ml MULTI -DOSE VIAL Hikma 641600610 Each 38 222 Pharmaceuticals Calcium Chloride, 1 gm, 10m1 LUER-JETT" SYRINGE IMS Limited 7632933041 Each 15 223 Pharmaceuticals Dextrose 10%, Baxter IV Solution, 250 ml Bag Baxter �m Ithcare 9 2B0162Q Each 80 224 Pharmaceuticals Dextrose 25 gm, 50%, 50 ml LUER-JETTM Syringe IMS Limited 7632933011 Each 1 225 Pharmaceuticals Diphenhydramine 50MG, 1 ml VIAL Hikma 641037625 Each 30 RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Category Description Specified Manufacturer Manufacturer Product No. Unit of Measure Estimated Annual Quantity 226 Pharmaceuticals Dopamine, 400 mg / D5W 250 ml Bag Baxter HDrralthcare9 260842 Bag 18 227 Pharmaceuticals Duodote Injector (Box of 30) Meridian Medical 11704-0620-01 Box 4 228 Pharmaceuticals Epinephrine 1:10,000 1 mg, 10 ml LUER-JETTM Syr IMS Limited 7632933161 Each 200 229 Pharmaceuticals Epinephrine 1:1000 1 mg, 1 ml VIAL Cardinal Health 996514 Each 40 230 Pharmaceuticals Glucagen w/Dilutent, 1 mg, 1 ml VIALS Cardinal Health 63323-0593-03 Each 12 231 Pharmaceuticals Glucose Gel, Delivers 15 gm, Forest Fruit Microdot Cambridge Sensors 703-03 Each 10 232 Pharmaceuticals INSTA-GLUCOSE®, 31 gm Tube, Delivers 24 gm Bausch Healthcare 0746-31 Each 12 233 Pharmaceuticals Lidocaine, 2%,100 mg, 5 ml LUER-JETTM Syringe IMS Limited 7632933901 Each 6 234 Pharmaceuticals Midazolam PF 5mg/ml 1 ml FTV CIV Pfizer Inc. 409230801 Box 120 235 Pharmaceuticals Naloxone, 2 mg, 2 ml LUER-JETTM SYRINGE IMS Limited 7632933691 Each 55 236 Pharmaceuticals NARCAN® (Naloxone) 4mg Nasal Spray, 2/PK Adapt 69547-353-02 Pack 1 237 Pharmaceuticals NEXTERONE Premixed Injection, 150mg/100 ml Baxter Healthcare 2G3451 Each 28 238 Pharmaceuticals Nitro -Bid® Ointment, 1 gm packs (Box/48) Cardinal Health 4159935 Box 3 239 Pharmaceuticals Nitroglycerin Tablets, 0.4mg, (Bottle of 25) Cardinal Health 5267174 Bottle 25 240 Pharmaceuticals MORPHINE 10MG/1ML VIAL (BX/25) Hikma 0641612725 Box 8 241 Pharmaceuticals Ondansetron Oral Dissolving Tabs, 4 mg (Pk/30) Cardinal Health 239110 Pack 6 242 Pharmaceuticals Ondansetron, 4 mg, 2 ml, Vial Pfizer Inc. 0409475503 Each 40 243 Pharmaceuticals Sodium Chloride, 0.9% 50m1, Plastic Flip -Top Single Dose Vials, 25/Box Pfizer, Inc. 0409488850 Box 1 244 Pharmaceuticals Sodium Chloride, 0.9%, 100m1 Bag, Singles, 96 ea/Case Baxter Healthcare - Dmg 261307 Each 46 245 Pharmaceuticals Sodium Chloride IV Solution 0.9%, Baxter, 250 ml Bag, 24/Case 24 B. Braun Medical L8002 Each 246 Pharmaceuticals Sodium Chloride IV Solution, 0.9%, B Braun, 500 ml Bag, 24/Case B. Braun Medical L8001 Each 1 247 Pharmaceuticals Sodium Chloride IV Solution, 0.9%, Braun, 1000 ml Bag, 12/Case 850 B. Braun Medical E8000 Each 248 Pharmaceuticals SODIUM "' e1 BICARB, 8.4%, 50 ml LUER JETT Syringe IMS Limited 7632933521 Each 249 Pharmaceuticals Tranexamic Acid 100mg/mL, 10mL Vial Cardinal Health 5368816 Each 8 250 Protective Care Biohazard Bag, 23" x 23", 1.5 mil, 7-10 Gallon Medegen Medical F116 Each 25 RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Category Description Specified Manufacturer Manufacturer Product No. Unit of Measure Estimated Annual Quantity 251 Protective Care Biohazard Bag, 25" x 41", 1.2 mil, 33 Gallon, 10/Pk, 25Pk/Case Medegen Medical 47-05 Each 10 252 Protective Care Case LaerdalTM POCKET MASKTM with 02 Inlet, Yellow Laerdal Medical 83001133 Each 1 253 Protective Care Boot Cover, Sunsoft, XL, Ultimate Skid Resistant PVC, Impervious, Elastic Top, White Sunrise Medical T185 -XL Pair 250 254 Protective Care Coverall, Tychem QC, MED, Boundseam, Elastic Wrist, Hood, Boots, 12 ea/Case Bunzl/ R3 31710665 Each 200 255 Protective Care Coverall, Tychem QC, LG, Boundseam, Elastic Wrist, Hood, Boots, 12 ea/Case Bunzl/ R3 31710311 Each 500 256 Protective Care Coverall, Tychem QC, XLG, Boundseam, Elastic Wrist, Hood, Boots, 12 ea/Case Bunzl/ R3 31710312 Each 2000 257 Protective Care Coverall, Tychem QC, 2XL Boundseam, Elastic Wrist, Hood, Boots, 12 ea/Case Bunzl/ R3 31710313 Each 500 258 Protective Care Coverall, Tychem QC, 3XL, Boundseam, Elastic Wrist, Hood, Boots, 12 ea/Case gunzl/ r3 31713310 Each 200 259 Protective Care Gown, Impervious Isolation, Full Back, Knit Cuffs, Tie Waist, 10/Bag Anatomy Supply GNA219-CV3 Each 50 260 Protective Care Protective Gown Thumb Loop, OTH Easy Tear Neck Poly Graham Medical 86792 Each 225 261 Protective Care Infectious Control Spill Kit Parent Production 29-310S Each 1 262 Protective Care Biohazard Bag, 12inch x 15inch, Red Liner (100 roll) Medline Industries BH107 Roll 2 263 Protective Care Personal Protection and Cleanup Kit Parent Production 295814 Each 1 264 Protective Care Personal Protection Kit with Coveralls 2XL Parent Production 290900)0( Each 1 265 Protective Care Mask, Small SAF T FIT Plus P100 Particulate Respirator, Sperian 14110439 Each 1 266 Protective Care TRUAIR ® Ultra P100 Mask Gateway Safety 80902V Each 180 267 Care 2Protective MO)sks, 3MT"' 1860 Respirator N95, Regular (Box 3M Health Care 1860 Box 100 268 Care 2Protective MO)sk, 3MT"" 1870+ Particulate Respirator N95 (Box 3M Health Care 1870+ Box 80 269 Protective Care Mask, Winner N95, Respirator, 50/Box, 20 Boxes/Case Winner N95 WN-N95FW Box 20 270 Protective Care Moldex 0102 Bitrex Qualitative Fit Test Kit Moldex-Metric, Inc. 0102 Each 1 271 Protective Care (Booldex 6) 0503 Threshhold Screening Solution Bitrex Moldex-Metric, Inc. 0503 Box 1 272 Protective Care Moldex 0504 Fit Test Solution-Bitrex (Box 6) Moldex-Metric, Inc. 0504 Box 1 273 Protective Care RED-ZT"" Fluid Control Powder, 5 oz. Shaker Bottle Safetec 41101 Each 20 274 Protective Care SPIT SOCK HOOD Stearns Wear SS100 Each 5 275 Protective Care SHARPS CONTAINER, RED, 1 PINT, 100/CASE Cardinal Health 8901SA Case 1 RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Category Description Specified Manufacturer Manufacturer Product No. Unit of Measure Estimated Annual Quantity 276 Protective Care SharpSafety Sharps Container, 5 Qt, Red Cardinal Health 8507SA Each 6 277 Protective Care StarLite® Squared Eyewear, Clear Lens Gateway Safety 4480 Each 200 278 Protective Care SaniZide Plus Surface Disinfectant Spray, 32oz Safetec 34810 Each 66 279 Protective Care VIONEX® Antimicrobial Towelette (Box 50) .Research MetrexCoResearch Corp 10-1520 Box 41 280 ALL RISK® Triage Tag (Pack 50) Disaster Management DMS-05006 Pack 1 281 Training / Operations Dose By Growth Pediatric Dosing Guide Mila Medical, Inc. DBG-CUST-F Each 1 282 Trauma and First Aid BLOODSTOPPER® Wound and Trauma Dressing Honeywell 061910 Each 1 283 Trauma and First Aid CoFlex® - Latex Free Latex -Free Foam Bandage, 3", Blue, 24 Ea/Case Med Plus Services 9300TN-024 Each 24 284 Trauma and First Aid Elastic Bandage, 3", Latex Free, 10 Rls/Box ADI Meidcal 27501 Each 1 285 Trauma and First Aid Elastic Bandage, 4", Latex Free, 10 Rls/Box ADI Meidcal 27502 Each 1 286 Trauma and First Aid Elastic Bandage, 6", Latex Free, 10 Rls/Box ADI Meidcal 27503 Each 1 287 Trauma and First Aid Cold Pack, Medium, 6.69" x 6.60", 50ea/Case DMS Medical C6767 Each 24 288 Trauma and First Aid Hot Pack, Large, 6.69" x 7.5 ", 50ea/Case DMS Medical H6775 Each 48 289 Trauma and First Aid Bandage, Adhesive Sheer Strips, 1" x 3" (Box 50) Cardinal Health 44119 Box 35 290 Trauma and First Aid Burn Sheet MedStorm Storm-VS0033 Each 10 291 Trauma and First Aid DUKALTM Gauze Sponge, Sterile 12PIy 4 in x 4 in, 2/Pk, 25 Pk/Tr, 24 Tr/Case Dukal Corporation 6412 Box 12 292 Trauma and First Aid DUKALTM Combine/ABD Pad, 5" x 9" (Box 25) Dukal Corporation 5590 Box 5 293 Trauma and First Aid p Ckj LT"^ Conforming Stretch Gauze, Sterile, 3" (12 Dukal Corporation 703 Pack 6 294 Trauma and First Aid DUKALTM Fluff Bandage Roll, 4.5", Sterile Dukal Corporation 645 Each 60 295 Trauma and First Aid DUKALTM Trauma Dressing, 12" x 30" Dukal Corporation 3050 Each 10 296 Trauma and First Aid DUKALTM Triangular Bandage, 40" x 40" x 56" (Pack 12) Dukal Corporation 1124-32400 Pack 15 297 Trauma and First Aid Prep Pad, Alcohol 2 ply, Medium, 200/Box Medsource 1330-85300 Box 20 298 Trauma and First Aid Prep Pad, PVP, Povidone Iodine Pads, 100/Box, 10 Bxs/Case Dynarex Corporation 1108 Box 1 299 Trauma and First Aid The ASHERMAN CHEST SEAL TM Teleflex Medical 849200 Each 10 300 Trauma and First Aid HyFin® Chest Seal No R scueican NAR-0015 Each 7 RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Category Description Specified Manufacturer Manufacturer Product No. Unit of Measure Estimated Annual Quantity 301 Trauma and First Aid HyFin® Vent Chest Seal Twin Pack No Rescue American h NAR-0037 Pack 8 302 Trauma and First Aid Gauze Petroleum Dressing, Sin x 9 in, 50 Ea/Box, 4 Bxs/Case Cardinal Health 8884413605 Each 10 303 Trauma and First Aid Hydrogen Peroxide, 16 oz. Bottle, 12/Case Medline Industries MDS098001Z Bottle 1 304 Trauma and First Aid Sterile Water, 250 ml Bottle, Baxter, 24/Case Baxter HDmaglthcare- 2F7112 Bottle 12 305 Trauma and First Aid 0.9% Sodium Chloride, Baxter 250 ml Bottle, 24/Case Baxter Healthcare- Dmg 2F7122 Bottle 135 306 Trauma and First Aid The Emergency ISRAELI BANDAGE, 4", Green PerSys Medical FCP-01 Each 5 307 Trauma and First Aid QuikClot® Combat Gauze LETM, 3" x 4 yds Z -fold Z-Medica 350 Each 1 308 Trauma and First Aid QuikClot® EMS 4"x 4" Dressing, no x-ray, Pk/3 Z-Medica 473 Pack 1 309 Trauma and First Aid Tape, TRANSPORETM Transparent 1" (Box 12) 3M Health Care 1527-1 Box 1 310 Trauma and First Aid Tape, Kendall TM Waterproof 2" (Box 6) Cardinal Health 3267C Box 25 311 Trauma and First Aid Tape, 3MT"^ MicroporeTM Paper Tape, 1" (Box 12) 3M Health Care 1530-1 Box 5 312 Trauma and First Aid SWAT-TourniquetTM, Black H H & Corp 10 313 Trauma and First Aid Tourniquet, Combat Application SAM -XT Sam Medical SAM XTBC Each 10 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT S Item No. Life Assist Unit pricing Life Assist Extended priocing Audited Extended Pricing Life Assist Proposed Alternate Manufacturer Life Assist Proposed Alternate Product No. 1 $ 0.78 $ 0.78 $ 0.78 2 $ 0.78 $ 0.78 $ 0.78 3 $ 0.78 $ 1.56 $ 1.56 4 $ 0.78 $ 1.56 $ 1.56 5 $ 0.78 $ 11.70 $ 11.70 6 $ 0.78 $ 15.60 $ 15.60 7 $ 0.78 $ 10.92 $ 10.92 8 $ 0.78 $ 7.80 $ 7.80 9 $ 0.77 $ 7.70 $ 7.70 10 $ 0.77 $ 23.10 $ 23.10 11 $ 0.77 $ 7.70 $ 7.70 12 $ 0.77 $ 7.70 $ 7.70 13 $ 6.38 $ 127.60 $ 127.60 14 $ 2.53 $ 75.90 $ 75.90 15 $ 3.85 $ 3.85 $ 3.85 16 $ 3.85 $ 3.85 $ 3.85 17 $ 3.85 $ 3.85 $ 3.85 18 $ 3.85 $ 3.85 $ 3.85 19 $ 12.50 $ 12.50 $ 12.50 20 $ 12.50 $ 12.50 $ 12.50 21 $ 5.76 $ 5.76 $ 5.76 22 $ 11.00 $ 165.00 $ 165.00 23 $ 38.50 $ 38.50 $ 38.50 24 $ 1,250.00 $ 2,500.00 $ 2,500.00 25 $ 3.36 $ 3.36 $ 3.36 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT S Item No. Life Assist Unit pricing Life Assist Extended priocing Audited Extended Pricing Life Assist Proposed Alternate Manufacturer Life Assist Proposed Alternate Product No. 26 $ 3.36 $ 3.36 $ 3.36 27 $ 2.15 $ 2.15 $ 2.15 28 $ 2.15 $ 2.15 $ 2.15 29 $ 2.15 $ 12.90 $ 12.90 30 $ 2.15 $ 12.90 $ 12.90 31 $ 2.15 $ 2.15 $ 2.15 32 $ 2.15 $ 10.75 $ 10.75 33 $ 2.15 $ 12.90 $ 12.90 34 $ 2.15 $ 2.15 $ 2.15 35 $ 2.15 $ 4.30 $ 4.30 36 $ 34.65 $ 69.30 $ 69.30 37 $ 34.65 $ 34.65 $ 34.65 38 $ 11.55 $ 23.10 $ 23.10 39 $ 495.00 $ 495.00 $ 495.00 40 $ 2.50 $ 62.50 $ 62.50 Bemis 484410 41 $ 3.25 $ 81.25 $ 81.25 42 $ 0.65 $ 16.25 $ 16.25 43 $ 0.36 $ 3.60 $ 3.60 44 $ 26.50 $ 318.00 $ 318.00 45 $ 68.00 $ 68.00 $ 68.00 46 $ 68.00 $ 68.00 $ 68.00 47 $ 4.25 $ 4.25 $ 4.25 48 $ 235.00 $ 235.00 $ 235.00 49 $ 110.00 $ 550.00 $ 550.00 50 $ 185.00 $ 185.00 $ 185.00 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT S Item No. Life Assist Unit pricing Life Assist Extended priocing Audited Extended Pricing Life Assist Proposed Alternate Manufacturer Life Assist Proposed Alternate Product No. 51 $ 134.40 $ 134.40 $ 134.40 52 $ 40.32 $ 40.32 $ 40.32 53 $ 6.20 $ 18.60 $ 18.60 54 $ 318.00 $ 318.00 $ 318.00 55 $ 11.00 $ 154.00 $ 154.00 56 $ 11.00 $ 55.00 $ 55.00 57 $ 15.50 $ 15.50 $ 15.50 58 $ 14.50 $ 101.50 $ 101.50 59 $ 10.93 $ 21.86 $ 21.86 60 $ 9.89 $ 29.67 $ 29.67 61 $ 7.45 $ 7.45 $ 7.45 62 $ 9.01 $ 270.30 $ 270.30 63 $ 13.46 $ 269.20 $ 269.20 64 $ 9.75 $ 2,925.00 $ 2,925.00 65 $ 3.65 $ 182.50 $ 182.50 66 $ 9.95 $ 2,388.00 $ 2,388.00 67 $ 11.50 $ 11.50 $ 11.50 68 $ - $ - $ - 69 $ 10.00 $ 60.00 $ 60.00 70 $ 16.74 $ 217.62 $ 217.62 71 $ 16.00 $ 160.00 $ 160.00 72 $ 175.00 $ 175.00 $ 175.00 73 $ 276.92 $ 830.76 $ 830.76 74 $ 54.08 $ 108.16 $ 108.16 75 $ 75.00 $ 375.00 $ 375.00 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT S Item No. Life Assist Unit pricing Life Assist Extended priocing Audited Extended Pricing Life Assist Proposed Alternate Manufacturer Life Assist Proposed Alternate Product No. 76 $ 35.47 $ 70.94 $ 70.94 77 $ 325.00 $ 325.00 $ 325.00 78 $ 130.00 $ 130.00 $ 130.00 79 $ 26.99 $ 431.84 $ 431.84 80 $ 28.88 $ 28.88 $ 28.88 81 $ 335.00 $ 335.00 $ 335.00 82 $ 82.50 $ 165.00 $ 165.00 83 $ 150.00 $ 150.00 $ 150.00 84 $ 525.00 $ 525.00 $ 525.00 85 $ 555.00 $ 8,325.00 $ 8,325.00 86 $ 75.03 $ 375.15 $ 375.15 87 $ 8.16 $ 40.80 $ 40.80 88 $ 3.72 $ 628.68 $ 628.68 89 $ 88.00 $ 88.00 $ 88.00 90 $ 13.10 $ 314.40 $ 314.40 91 $ 200.66 $ 3,210.56 $ 3,210.56 92 $ 12.00 $ 1,020.00 $ 1,020.00 93 $ 12.00 $ 4,200.00 $ 4,200.00 94 $ 12.00 $ 6,000.00 $ 6,000.00 95 $ 12.00 $ 3,600.00 $ 3,600.00 96 $ 12.00 $ 960.00 $ 960.00 97 $ 19.80 $ 19.80 $ 19.80 98 $ 19.80 $ 19.80 $ 19.80 99 $ 19.80 $ 198.00 $ 198.00 100 $ 19.80 $ 1,188.00 $ 1,188.00 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT S Item No. Life Assist Unit pricing Life Assist Extended priocing Audited Extended Pricing Life Assist Proposed Alternate Manufacturer Life Assist Proposed Alternate Product No. 101 $ 17.50 $ 350.00 $ 350.00 102 $ 17.50 $ 1,050.00 $ 1,050.00 103 $ 7.80 $ 2,020.20 $ 2,020.20 104 $ 3.50 $ 87.50 $ 87.50 105 $ 4.40 $ 778.80 $ 778.80 106 $ 4.40 $ 88.00 $ 88.00 107 $ 8.00 $ 8.00 $ 8.00 108 $ 10.25 $ 20.50 $ 20.50 109 $ 122.86 $ 245.72 $ 245.72 110 $ 220.00 $ 660.00 $ 660.00 111 $ 29.79 $ 89.37 $ 89.37 112 $ 22.34 $ 89.36 $ 89.36 113 $ 31.08 $ 31.08 $ 31.08 114 $ 180.00 $ 180.00 $ 180.00 115 $ 55.00 $ 55.00 $ 55.00 116 $ 295.00 $ 295.00 $ 295.00 117 $ 10.00 $ 10.00 $ 10.00 118 $ 10.00 $ 10.00 $ 10.00 119 $ 11.00 $ 11.00 $ 11.00 120 $ 12.00 $ 12.00 $ 12.00 121 $ 5.88 $ 5.88 $ 5.88 122 $ 6.50 $ 39.00 $ 39.00 123 $ 2.70 $ 2.70 $ 2.70 124 $ 6.50 $ 130.00 $ 130.00 125 $ 18.00 $ 18.00 $ 18.00 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT S Item No. Life Assist Unit pricing Life Assist Extended priocing Audited Extended Pricing Life Assist Proposed Alternate Manufacturer Life Assist Proposed Alternate Product No. 126 $ 1.95 $ 97.50 $ 97.50 127 $ 4.02 $ 40.20 $ 40.20 128 $ 5.49 $ 49.41 $ 49.41 129 $ 1.65 $ 1.65 $ 1.65 130 $ 0.28 $ 7.00 $ 7.00 131 $ 0.28 $ 7.00 $ 7.00 132 $ 14.00 $ 42.00 $ 42.00 133 $ 0.45 $ 0.45 $ 0.45 134 $ 0.39 $ 97.50 $ 97.50 135 $ 11.50 $ 11.50 $ 11.50 136 $ 11.50 $ 11.50 $ 11.50 137 $ 1.20 $ 1,221.60 $ 1,221.60 138 $ 1.10 $ 2,112.00 $ 2,112.00 139 $ 0.25 $ 2.50 $ 2.50 140 $ 6.05 $ 72.60 $ 72.60 141 $ 6.05 $ 72.60 $ 72.60 142 $ 1.63 $ 141.81 $ 141.81 143 $ 1.63 $ 81.50 $ 81.50 144 $ 1.63 $ 652.00 $ 652.00 145 $ 1.63 $ 570.50 $ 570.50 146 $ 1.63 $ 81.50 $ 81.50 147 $ 1.63 $ 81.50 $ 81.50 148 $ 10.00 $ 10.00 $ 10.00 149 $ 6.34 $ 190.20 $ 190.20 Teleflex MAD300 150 $ 6.85 $ 27.40 $ 27.40 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT S Item No. Life Assist Unit pricing Life Assist Extended priocing Audited Extended Pricing Life Assist Proposed Alternate Manufacturer Life Assist Proposed Alternate Product No. 151 $ 3.65 $ 164.25 $ 164.25 152 $ 4.50 $ 58.50 $ 58.50 153 $ 6.30 $ 3,150.00 $ 3,150.00 154 $ 142 $ 1.42 $ 1.42 155 $ 0.08 $ 8.80 $ 8.80 156 $ 7.30 $ 7.30 $ 7.30 157 $ 0.18 $ 0.18 $ 0.18 158 $ 0.20 $ 6.60 $ 6.60 159 $ 0.06 $ 10.62 $ 10.62 160 $ 0.57 $ 16.53 $ 16.53 161 $ 24.20 $ 605.00 $ 605.00 162 $ 22.00 $ 264.00 $ 264.00 163 $ 45.00 $ 900.00 $ 900.00 164 $ 7.28 $ 582.40 $ 582.40 165 $ 8.12 $ 64.96 $ 64.96 166 $ 8.12 $ 186.76 $ 186.76 167 $ 8.12 $ 81.20 $ 81.20 168 $ 50.00 $ 50.00 $ 50.00 169 $ 1.65 $ 1.65 $ 1.65 170 $ 18.88 $ 283.20 $ 283.20 171 $ 36.90 $ 553.50 $ 553.50 172 $ 46.50 $ 46.50 $ 46.50 173 $ 0.45 $ 22.50 $ 22.50 174 $ 30.31 $ 30.31 $ 30.31 175 $ 0.25 $ 15.50 $ 15.50 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT S Item No. Life Assist Unit pricing Life Assist Extended priocing Audited Extended Pricing Life Assist Proposed Alternate Manufacturer Life Assist Proposed Alternate Product No. 176 $ 0.49 $ 0.49 $ 0.49 177 $ 0.98 $ 34.30 $ 34.30 178 $ 0.65 $ 48.75 $ 48.75 179 $ 0.80 $ 20.00 $ 20.00 180 $ 0.78 $ 18.72 $ 18.72 181 $ 1.06 $ 8.48 $ 8.48 182 $ 1.06 $ 6.36 $ 6.36 183 $ 0.68 $ 8.16 $ 8.16 184 $ 0.86 $ 0.86 $ 0.86 185 $ 39.65 $ 39.65 $ 39.65 186 $ 74.18 $ 74.18 $ 74.18 187 $ 69.50 $ 1,737.50 $ 1,737.50 188 $ 105.00 $ 105.00 $ 105.00 189 $ 0.85 $ 0.85 $ 0.85 190 $ 8.25 $ 231.00 $ 231.00 191 $ 35.00 $ 9,240.00 $ 9,240.00 192 $ 16.59 $ 464.52 $ 464.52 193 $ 16.95 $ 9,373.35 $ 9,373.35 194 $ 745.00 $ 2,980.00 $ 2,980.00 195 $ 21.36 $ 42.72 $ 42.72 196 $ 21.15 $ 42.30 $ 42.30 197 $ 27.87 $ 83.61 $ 83.61 198 $ 6.78 $ 13.56 $ 13.56 199 $ 7.14 $ 7.14 $ 7.14 200 $ 6.24 $ 499.20 $ 499.20 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT S Item No. Life Assist Unit pricing Life Assist Extended priocing Audited Extended Pricing Life Assist Proposed Alternate Manufacturer Life Assist Proposed Alternate Product No. 201 $ 6.24 $ 499.20 $ 499.20 202 $ 0.70 $ 0.70 $ 0.70 203 $ 0.46 $ 6.90 $ 6.90 204 $ 0.55 $ 68.75 $ 68.75 205 $ 11.50 $ 11.50 $ 11.50 206 $ 5.00 $ 150.00 $ 150.00 207 $ 4.50 $ 63.00 $ 63.00 208 $ 1.45 $ 453.85 $ 453.85 209 $ 55.00 $ 1,650.00 $ 1,650.00 210 $ 15.17 $ 1,243.94 $ 1,243.94 211 $ 25.20 $ 756.00 $ 756.00 212 $ 26.68 $ 747.04 $ 747.04 213 $ 4.66 $ 438.04 $ 438.04 214 $ 16.24 $ 194.88 $ 194.88 215 $ 5.54 $ 193.90 $ 193.90 216 $ 9.80 $ 245.00 $ 245.00 217 $ 1.73 $ 290.64 $ 290.64 218 $ 0.40 $ 320.00 $ 320.00 219 $ 0.66 $ 16.50 $ 16.50 220 $ 9.86 $ 493.00 $ 493.00 221 $ 31.78 $ 1,207.64 $ 1,207.64 222 $ 9.74 $ 146.10 $ 146.10 223 $ 5.65 $ 452.00 $ 452.00 224 $ 13.16 $ 13.16 $ 13.16 225 $ 1.07 $ 32.10 $ 32.10 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT S Item No. Life Assist Unit pricing Life Assist Extended priocing Audited Extended Pricing Life Assist Proposed Alternate Manufacturer Life Assist Proposed Alternate Product No. 226 $ 13.50 $ 243.00 $ 243.00 227 $ 1,952.32 $ 7,809.28 $ 7,809.28 228 $ 8.52 $ 1,704.00 $ 1,704.00 229 $ 17.01 $ 680.40 $ 680.40 230 $ 178.00 $ 2,136.00 $ 2,136.00 231 $ 2.52 $ 25.20 $ 25.20 232 $ 3.00 $ 36.00 $ 36.00 233 $ 5.53 $ 33.18 $ 33.18 234 $ 22.00 $ 2,640.00 $ 2,640.00 235 $ 35.00 $ 1,925.00 $ 1,925.00 236 $ 80.00 $ 80.00 $ 80.00 237 $ 15.53 $ 434.84 $ 434.84 238 $ 115.00 $ 345.00 $ 345.00 239 $ 17.36 $ 434.00 $ 434.00 240 $ 78.00 $ 624.00 $ 624.00 241 $ 6.04 $ 36.24 $ 36.24 242 $ 0.45 $ 18.00 $ 18.00 243 $ 77.70 $ 77.70 $ 77.70 244 $ 2.09 $ 96.14 $ 96.14 245 $ 2.95 $ 70.80 $ 70.80 246 $ 2.95 $ 2.95 $ 2.95 247 $ 2.95 $ 2,507.50 $ 2,507.50 248 $ 13.16 $ 13.16 $ 13.16 249 $ 6.00 $ 48.00 $ 48.00 250 $ 0.09 $ 2.25 $ 2.25 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT S Item No. Life Assist Unit pricing Life Assist Extended priocing Audited Extended Pricing Life Assist Proposed Alternate Manufacturer Life Assist Proposed Alternate Product No. 251 $ 0.20 $ 2.00 $ 2.00 252 $ 16.46 $ 16.46 $ 16.46 253 $ 1.42 $ 355.00 $ 355.00 254 $ 2.55 $ 510.00 $ 510.00 EPIC® 255 $ 2.55 $ 1,275.00 $ 1,275.00 EPIC® 256 $ 2.35 $ 4,700.00 $ 4,700.00 EPIC® 257 $ 2.65 $ 1,325.00 $ 1,325.00 EPIC® 258 $ 2.55 $ 510.00 $ 510.00 EPIC® 259 $ - $ 260 $' 1.26 $ 283.50 $ 283.50 261 $ 2.85 $ 2.85 $ 2.85 262 $ 13.00 $ 26.00 $ 26.00 263 $ $- 264 $ - $ - 265 $ - $ - 266 $ 5.00 $ 900.00 $ 900.00 267 $ 16.40 $ 1,640.00 $ 1,640.00 268 $' 14.83 $ 1,186.40 $ 1,186.40 269 $ 16.40 $ 328.00 $ 328.00 270 $ 252.00 $ 252.00 $ 252.00 271 $ 18.00 $ 18.00 $ 18.00 272 $ 27.00 $ 27.00 $ 27.00 273 $ 4.83 $ 96.60 $ 96.60 274 $ 2.58 $ 12.90 $ 12.90 275 $ 180.00 $ 180.00 $ 180.00 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT S Item No. Life Assist Unit pricing Life Assist Extended priocing Audited Extended Pricing Life Assist Proposed Alternate Manufacturer Life Assist Proposed Alternate Product No. 276 $ 4.50 $ 27.00 $ 27.00 277 $ 1.25 $ 250.00 $ 250.00 278 $ 6.33 $ 417.78 $ 417.78 279 $ 9.15 $ 375.15 $ 375.15 280 $ 48.50 $ 48.50 $ 48.50 281 $ 20.00 $ 20.00 $ 20.00 282 $ 2.50 $ 2.50 $ 2.50 283 $ 1.82 $ 43.68 $ 43.68 284 $ 0.50 $ 0.50 $ 0.50 285 $ 0.56 $ 0.56 $ 0.56 286 $ 0.85 $ 0.85 $ 0.85 287 $ 0.38 $ 9.12 $ 9.12 Dynarex 4512 288 $ 0.42 $ 20.16 $ 20.16 Dynarex 4516 289 $ 0.99 $ 34.65 $ 34.65 290 $ 1.95 $ 19.50 $ 19.50 291 $ 2.00 $ 24.00 $ 24.00 292 $ 2.00 $ 10.00 $ 10.00 293 $ 2.64 $ 15.84 $ 15.84 294 $ 0.56 $ 33.60 $ 33.60 295 $ 0.69 $ 6.90 $ 6.90 296 $ 3.60 $ 54.00 $ 54.00 297 $ 1.56 $ 31.20 $ 31.20 298 $ 4.00 $ 4.00 $ 4.00 299 $ 8.83 $ 88.30 $ 88.30 300 $ 7.55 $ 52.85 $ 52.85 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT S Item No. Life Assist Unit pricing Life Assist Extended priocing Audited Extended Pricing Life Assist Proposed Alternate Manufacturer Life Assist Proposed Alternate Product No. 301 $ 11.08 $ 88.64 $ 88.64 302 $ 0.63 $ 6.30 $ 6.30 303 $ 0.55 $ 0.55 $ 0.55 304 $ 2.86 $ 34.32 $ 34.32 305 $ 2.50 $ 337.50 $ 337.50 306 $ 5.60 $ 28.00 $ 28.00 307 $ 31.94 $ 31.94 $ 31.94 308 $ 8.00 $ 8.00 $ 8.00 309 $ 10.20 $ 10.20 $ 10.20 310 $ 16.50 $ 412.50 $ 412.50 311 $ 5.50 $ 27.50 $ 27.50 312 $ 7.28 $ 72.80 $ 72.80 313 $ 21.50 $ 215.00 $ 215.00 Total $ 139,449.37 $ 138,942.21 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Bound Treen Unit pricing Bound Tree Extended priocing Audited Extended Pricing Bound Tree Proposed Alternate Manufacturer Bound Tree Proposed Alternate Product No. Bound Tree Notes: 1 $0.84 $0.84 $0.84 2 $0.84 $0.84 $0.84 3 $0.84 $1.68 $1.68 4 $0.84 $1.68 $1.68 5 $0.84 $12.60 $12.60 6 $0.84 $16.80 $16.80 7 $0.84 $11.76 $11.76 8 $0.84 $8.40 $8.40 9 $0.79 $7.90 $7.90 10 $0.79 $23.70 $23.70 11 $0.79 $7.90 $7.90 12 $0.79 $7.90 $7.90 13 $5.04 $100.80 $100.80 14 $2.84 $85.20 $85.20 15 $4.25 $4.25 $4.25 16 $4.25 $4.25 $4.25 17 $4.25 $4.25 $4.25 18 $4.25 $4.25 $4.25 19 $8.25 $8.25 $8.25 20 $8.25 $8.25 $8.25 21 $7.49 $7.49 $7.49 22 $11.49 $172.35 $172.35 23 $41.25 $41.25 $41.25 24 $1,394.95 $2,789.90 $2,789.90 25 $3.95 $3.95 $3.95 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Bound Treen Unit pricing Bound Tree Extended priocing Audited Extended Pricing Bound Tree Proposed Alternate Manufacturer Bound Tree Proposed Alternate Product No. Bound Tree Notes: 26 $2.92 $2.92 $2.92 27 $2.19 $2.19 $2.19 28 $2.19 $2.19 $2.19 29 $2.19 $13.14 $13.14 30 $2.19 $13.14 $13.14 31 $2.19 $2.19 $2.19 32 $2.19 $10.95 $10.95 33 $2.19 $13.14 $13.14 34 $2.19 $2.19 $2.19 35 $2.19 $4.38 $4.38 36 $37.50 $75.00 $75.00 37 $37.50 $37.50 $37.50 38 $12.50 $25.00 $25.00 39 $539.85 $539.85 $539.85 40 $2.78 $69.50 $69.50 41 $1.49 $37.25 $37.25 42 $1.52 $38.00 $38.00 43 $0.54 $5.40 $5.40 44 $29.50 $354.00 $354.00 45 $71.94 $71.94 $71.94 46 $71.94 $71.94 $71.94 47 $4.35 $4.35 $4.35 48 $254.99 $254.99 $254.99 49 $122.49 $612.45 $612.45 50 $210.95 $210.95 $210.95 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Bound Treen Unit pricing Bound Tree Extended priocing Audited Extended Pricing Bound Tree Proposed Alternate Manufacturer Bound Tree Proposed Alternate Product No. Bound Tree Notes: 51 $145.95 $145.95 $145.95 52 $43.80 $43.80 $43.80 53 $7.25 $21.75 $21.75 54 $255.25 $255.25 $255.25 55 $11.89 $166.46 $166.46 56 $11.89 $59.45 $59.45 57 $6.09 $6.09 $6.09 58 $11.89 $83.23 $83.23 59 $11.65 $23.30 $23.30 60 $12.50 $37.50 $37.50 61 $8.49 $8.49 $8.49 62 $7.65 $229.50 $229.50 63 $11.99 $239.80 $239.80 64 $8.99 $2,697.00 $2,697.00 65 $1.60 $80.00 $80.00 66 $10.99 $2,637.60 $2,637.60 67 $12.29 $12.29 $12.29 68 0 0 $0.00 Included with strips Included with strips 69 $10.90 $65.40 $65.40 70 $16.99 $220.87 $220.87 Bx of 200 71 $18.99 $189.90 $189.90 72 0 0 $0.00 NO BID NO BID 73 $280.35 $841.05 $841.05 74 $50.75 $101:50 $101.50 75 $72.00 $360:00 $360.00 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Bound Treen Unit pricing Bound Tree Extended priocing Audited Extended Pricing Bound Tree Proposed Alternate Manufacturer Bound Tree Proposed Alternate Product No. Bound Tree Notes: 76 $34.49 $68.98 $68.98 77 $324.75 $324.75 $324.75 78 $130.95 $130.95 $130.95 79 $27.17 $434.72 $434.72 80 $28.99 $28.99 $28.99 81 $339.95 $339.95 $339.95 82 $88.99 $177.98 $177.98 83 $174.95 $174.95 $174.95 84 $57.00 $57:00 $57.00 85 $57.00 $854.99 $855.00 86 $69.95 $349.75 $349.75 87 $7.87 $39.35 $39.35 88 $3.48 $588.12 $588.12 89 $86.75 $86.75 $86.75 90 $13.45 $322.80 $322.80 91 $229.94 $3,679.04 $3,679.04 92 $12.49 $1,061.65 $1,061.65 93 $12.49 $4,371.50 $4,371.50 94 $12.49 $6,245.00 $6,245.00 95 $12.49 $3,747.00 $3,747.00 96 $12.49 $999.20 $999.20 97 $18.49 $18.49 $18.49 98 $18.49 $18.49 $18.49 99 $18.49 $184.90 $184.90 100 $18.49 $1,109.40 $1,109.40 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Bound Treen Unit pricing Bound Tree Extended priocing Audited Extended Pricing Bound Tree Proposed Alternate Manufacturer Bound Tree Proposed Alternate Product No. Bound Tree Notes: 101 $19.09 $381.80 $381.80 102 $19.09 $1,145.40 $1,145.40 103 $8.75 $2,266.25 $2,266.25 104 $3.39 $84.75 $84.75 105 $4.29 $759.33 $759.33 106 $4.29 $85.80 $85.80 107 $27.50 $27.50 $27.50 108 $11.73 $23.46 $23.46 109 $134.95 $269.90 $269.90 110 $244.85 $734.55 $734.55 111 $31.39 $94.17 $94.17 112 $23.54 $94.16 $94.16 113 $39.96 $39.96 $39.96 114 $204.99 $204.99 $204.99 115 $55.99 $55.99 $55.99 116 $352.85 $352.85 $352.85 117 $10.05 $10:05 $10.05 118 $10.05 $10.05 $10.05 119 $11.24 $11.24 $11.24 120 $13.49 $13.49 $13.49 121 $7.59 $7.59 $7.59 122 $6.89 $41.34 $4t34 123 $2.86 $2.86 $2.86 124 $6.99 $139.80 $139.80 125 $19.95 $19.95 $19.95 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Bound Treen Unit pricing Bound Tree Extended priocing Audited Extended Pricing Bound Tree Proposed Alternate Manufacturer Bound Tree Proposed Alternate Product No. Bound Tree Notes: 126 $1.79 $89.50 $89.50 127 $3.83 $38.30 $38.30 128 $4.25 $38.25 $38.25 129 $1.59 $1.59 $1.59 130 $0.31 $7.65 $7.75 131 $0.31 $7.75 $7.75 132 $15.50 $46.50 $46.50 133 $4.80 $4.80 $4.80 134 $0.43 $107.50 $107.50 135 $11.99 $11:99 $11.99 136 $11.99 $11.99 $11.99 137 $1.42 $1,445.56 $1,445.56 138 $0.96 $1,843.20 $1,843.20 139 $0.33 $3.30 $3.30 140 $16.79 $201.48 $201.48 141 $3.58 $42.96 $42.96 142 $1,72 $149.64 $149.64 143 $1.72 $86.00 $86.00 144 $1.72 $688.00 $688.00 145 $1.72 $602.00 $602.00 146 $1.72 $86.00 $86.00 147 $1.72 $86.00 $86.00 148 $4.99 $4.99 $4.99 149 $5.50 $165.00 $165.00 150 $7.29 $29.16 $29.16 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Bound Treen Unit pricing Bound Tree Extended priocing Audited Extended Pricing Bound Tree Proposed Alternate Manufacturer Bound Tree Proposed Alternate Product No. Bound Tree Notes: 151 $3.99 $179.55 $179.55 152 $4.86 $63.18 $63.18 153 $6.56 $3,281.15 $3,280.00 154 $1.39 $1.39 $1.39 155 $0.12 $13.20 $13.20 156 $14.50 $14.50 $14.50 157 $0.28 $0.28 $0.28 158 $0.39 $12.87 $12.87 159 $0.08 $14.16 $14.16 160 $0.65 $18.85 $18.85 161 $17.00 $425.00 $425.00 162 $19.89 $238.68 $238.68 163 $55.95 $1,119.00 $1,119.00 164 $8.59 $687.20 $687.20 165 $10.25 $82.00 $82.00 166 $10.25 $235.75 $235.75 167 $10.25 $102.50 $102.50 168 $52.99 $52.99 $52.99 169 $1.99 $1.99 $1.99 170 $18.95 $284.25 $284.25 171 $35.99 $539.85 $539.85 172 $41.49 $41.49 $41.49 173 $0.54 $27.00 $27.00 174 $27.39 $27.39 $27.39 175 $0.25 $15.50 $15.50 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Bound Treen Unit pricing Bound Tree Extended priocing Audited Extended Pricing Bound Tree Proposed Alternate Manufacturer Bound Tree Proposed Alternate Product No. Bound Tree Notes: 176 $0.28 $0.28 $0.28 177 $1.18 $41.30 $41.30 178 $0.68 $51.00 $51.00 179 $0.68 $17.00 $17.00 180 $0:91 $21.84 $21.84 181 $0.89 $7.12 $7:12 182 $1.14 $6.84 $6.84 183 $0.71 $8.52 $8.52 184 $0.99 $0.99 $0.99 185 $36.99 $36.99 $36.99 186 $62.95 $62.95 $62.95 187 $28.95 $723.75 $723.75 188 $124.98 $124.98 $124.98 189 $0.85 $0.85 $0.85 190 $8.65 $242.20 $242.20 191 $14.32 $3,781.32 $3,780.48 192 $17.75 $497.00 $497.00 193 $15.99 $8,842.47 $8,842.47 194 $824.85 $3,299.40 $3,299.40 195 $45.98 $91.96 $91.96 196 $45.98 $91.96 $91.96 197 $31.99 $95.97 $95.97 198 $7.36 $14.72 $14.72 199 $7.36 $7.36 $7.36 200 $6.18 $494.40 $494.40 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Bound Treen Unit pricing Bound Tree Extended priocing Audited Extended Pricing Bound Tree Proposed Alternate Manufacturer Bound Tree Proposed Alternate Product No. Bound Tree Notes: 201 $6.18 $494.40 $494.40 202 $2.15 $2.15 $2.15 203 $0.57 $8.55 $8.55 204 $0.62 $77.50 $77.50 205 $10.00 $10.00 $10.00 206 $5.94 $178.20 $178.20 207 $3.66 $51.23 $51.24 208 $1.75 $547.75 $547.75 209 $57.90 $1,736.88 $1,737.00 210 $16.49 $1,352.18 $1,352.18 211 $25.50 $765.00 $765.00 212 $10.38 $290.64 $290.64 213 $3.85 $361.90 $361.90 214 $16.95 $203.40 $203.40 215 $5.49 $192.15 $192.15 216 $10.99 $109.95 $274.75 217 $1.70 $285.60 $285.60 218 $0.35 $280.00 $280.00 219 $0.74 $18.50 $18.50 220 $10.69 $534.50 $534.50 221 $42.60 $1,618.80 $1,618.80 222 $10.56 $158.40 $158.40 223 $5.49 $439.20 $439.20 224 $14.25 $14.25 $14.25 225 $1.17 $35.10 $35.10 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Bound Treen Unit pricing Bound Tree Extended priocing Audited Extended Pricing Bound Tree Proposed Alternate Manufacturer Bound Tree Proposed Alternate Product No. Bound Tree Notes: 226 $12.99 $233:82 $233.82 227 $2,093.99 $8,375.96 $8,375.96 228 $9.24 $1,848.00 $1,848.00 229 $17.99 $719.60 $719.60 230 $179.74 $2,156.88 $2,156.88 231 $3.28 $32.77 $32.80 232 $3.39 $40.68 $40.68 233 $5.90 $35.40 $35.40 234 $19.50 $2,340.00 $2,340.00 235 $32.95 $1,812.25 $1,812.25 236 $89.26 $89.26 $89.26 237 $25.00 $700.00 $700.00 238 $124.85 $374.55 $374.55 239 $21.95 $548.75 $548.75 240 $65.00 $520.00 $520.00 241 $7.95 $47.70 $47.70 242 $0.95 $38.00 $38.00 243 $37.75 $37.75 $37.75 244 $1.98 $91.08 $91.08 245 $2.92 $70.08 $70.08 246 $2.89 $2.89 $2.89 247 $2.95 $2,507.50 $2,507.50 248 $14.25 $14.25 $14.25 249 $4.98 $49.95 $39.84 Box of 10 250 $0.09 $2.31 $2.25 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Bound Treen Unit pricing Bound Tree Extended priocing Audited Extended Pricing Bound Tree Proposed Alternate Manufacturer Bound Tree Proposed Alternate Product No. Bound Tree Notes: 251 $0.24 $2.40 $2.40 252 $17.78 $17.78 $17.78 253 $1.78 $445.00 $445.00 254 $11.35 $2,270.00 $2,270.00 255 $11.35 $5,675.00 $5,675.00 256 $11.35 $22,700.00 $22,700.00 257 $12.05 $6,025.00 $6,025.00 258 $12.75 $2,550.00 $2,550.00 259 $2.30 $114.95 $115.00 260 $1.38 $311.25 $310.50 261 $4.19 $4.19 $4.19 262 $9.49 $18.98 $18.98 263 $8.59 $8.59 $8.59 264 $22.75 $22.75 $22.75 265 $7.49 $7.49 $7.49 266 $5.64 $1,015.20 $1,015.20 267 $17.93 $1,793.00 $1,793.00 268 $25.49 $2,039.20 $2,039.20 269 $92.50 $1,850.00 $1,850.00 270 $229.85 $229.85 $229.85 271 $13.85 $13.85 $13.85 272 $13.85 $13.85 $13.85 273 $4.99 $99.80 $99.80 274 $2.87 $14.35 $14.35 275 $215.00 $215.00 $215.00 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Bound Treen Unit pricing Bound Tree Extended priocing Audited Extended Pricing Bound Tree Proposed Alternate Manufacturer Bound Tree Proposed Alternate Product No. Bound Tree Notes: 276 $4.86 $29.16 $29.16 277 $1.35 $270.00 $270.00 278 $6.93 $457.38 $457.38 279 $11.35 $465.35 $465.35 280 $55.00 $55.00 $55.00 281 $38.29 $38.29 $38.29 282 $2.39 $2.39 $2.39 283 $1.97 $47.28 $47.28 284 $0.35 $0.35 $0.35 285 $0.45 $0.45 $0.45 286 $0.72 $0.72 $0.72 287 $0.30 $7.20 $7.20 288 $0.39 $18.72 $18.72 289 $1.29 $45.15 $45.15 290 $1.99 $19.90 $19.90 291 $2.26 $27.12 $27.12 292 $2.24 $1120 $11.20 293 $3.39 $20.34 $20.34 294 $0.64 $38.40 $38.40 295 $1.16 $11.60 $11.60 296 $3.20 $48.00 $48.00 297 $1.62 $32.40 $32A0 298 $3.55 $3.55 $3.55 299 $8.99 $89.90 $89.90 300 $8.88 $62.16 $62.16 RFQ 18RFQ 180788 EMERGENCY MEDICAL SUPPLIES AND ASSOCIATED SUPPORT SERVICES Item No. Bound Treen Unit pricing Bound Tree Extended priocing Audited Extended Pricing Bound Tree Proposed Alternate Manufacturer Bound Tree Proposed Alternate Product No. Bound Tree Notes: 301 $12.95 $103.60 $103.60 302 $0.68 $6.80 $6.80 303 $0.58 $0.58 $0.58 304 $2.70 $32.40 $32.40 305 $2.75 $371.25 $371.25 306 $5.89 $29.45 $29.45 307 $33.85 $33.85 $33.85 308 $25.05 $25.05 $25.05 309 $8.95 $8.95 $8.95 310 $18.36 $459.00 $459.00 311 $5.99 $29.95 $29.95 312 $7.95 $79.50 $79.50 313 $22.99 $229.90 $229.90 Total $161,750.85 $149,190.29 CVTY 0 PALO ALTO City of Palo Alto (ID # 12291) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: County Abandoned Vehicle Program Title: Adoption of a Resolution Making Required Findings to Continue Palo Alto's Participation in the Santa Clara County Abandoned Vehicle Abatement Service Authority (AVASA) Program for a Fourth 10 -year Term and Continue Collection of a $1 Fee to Fund the Authority From: City Manager Lead Department: Police Recommendation Staff recommends that Council adopt the attached resolution approving the extension of the Santa Clara County Abandoned Vehicle Abatement Service Authority (AVASA) for a fourth 10 - year term beginning May 1, 2022, and approve the continued collection of a $1 vehicle registration fee to fund the service authority. Background In 1991, Santa Clara County established the Abandoned Vehicle Abatement Service Authority (AVASA) and the City Council adopted a resolution authorizing the City of Palo Alto's participation in the managed program. The City of Palo Alto has participated in this program ever since, with City Council adopting similar 10 -year participation authorization resolutions in 2002 and 2011. The current agreement, from CMR 1856, expires on April 30, 2022. AVASA personnel have indicated to staff that the new resolution is due to them by July 1, 2021 in order for them to meet their deadline to continue the service authority without interruption. All cities in Santa Clara County currently participate in AVASA, and as of this writing, staff believes that all cities in Santa Clara County have adopted resolutions (or will be adopting resolutions in the immediate future) to continue their participation for another ten years. There are currently 37 counties in California that administer abandoned vehicle abatement authorities. These authorities provide funds to law enforcement agencies to facilitate the proper removal and disposal of abandoned vehicles. Sections 9250.7 and 22107 of the California Vehicle Code provide for the establishment of a service authority for abandoned vehicle abatement if a County Board of Supervisors and a majority of the cities within that county adopt resolutions supporting such action. The program imposes an annual vehicle registration fee of one dollar on vehicles registered to owners with an address in each county. City of Palo Alto Page 1 Revenue collected by the California Department of Motor Vehicles is used to reimburse AVASA participating agencies based on the following formula: fifty (50) percent based on the jurisdiction's population percentage relative to the rest of the county, and the other fifty (50) percent based on a jurisdiction's percentage of vehicles abated county -wide. As of this writing, Palo Alto has 3% of the county's population. A city does not have to participate in the program to remove abandoned vehicles from public spaces, but it does have to participate for the potential to receive funding. The AVASA program is separate and distinct from the program where staff enforces the City's 72 -hour parking ordinance: • Under the terms of the AVASA program, an abandoned vehicle specifically refers to vehicles that have 1) not moved for at least 10 days, or 2) vehicles that meet the criteria of being a "hazard to public health, safety, and welfare," which means the vehicle is parked on a public roadway and is missing an engine, wheels, tires, or any other part or equipment necessary to operate safety on the highway pursuant to Vehicle Code section 22669(d). • The City's 72 -hour parking ordinance applies to vehicles that have not moved in at least 72 hours. Additionally, the City's ordinance does not have any component that requires the vehicle to present a "hazard to public health, safety, or welfare." Enforcement of the City's ordinance is done to ensure simply that vehicles parked on Palo Alto streets are moving every three days. Since the last renewal of AVASA by City Council in 2011, AVASA procedures have been revised to preclude cities from requesting reimbursements for vehicles abated (i.e. towed) simply for 72 -hour parking violations. Currently, the only towing costs reimbursed by AVASA are for those few tows that meet the specific requirements of Vehicle Code section 22669(d); that is, those vehicles that present a hazard to public health, safety, and welfare. There are very few vehicles in Palo Alto that meet this criteria; in 2020, for example, there were only five vehicles towed under this section and reimbursed by AVASA as a result. None of those vehicles were occupied at the time or being used as a residence. Additionally, AVASA continues to reimburse cities for staff time expenses associated with marking all potentially abandoned vehicles (i.e. those that may be violating the City's 72 -hour ordinance), as each of those vehicles is evaluated by staff to see if they are a hazard to public health, safety, and welfare. As stated above, the vast majority of reported abandoned vehicles in Palo Alto do not meet that criteria (only five did in 2020). AVASA also reimburses for other administrative costs associated with abandoned vehicle enforcement programs. Over the past ten years (calendar years 2011 to 2020), the City has received $408,285 in AVASA funds to offset the costs associated with abandoned vehicle enforcement. Staff project AVASA revenues to be approximately $37,000 annually moving forward. City of Palo Alto Page 2 Discussion Approving the extension of participation is required for the program to continue. Adoption of the attached resolution would also be required and would reauthorize the City's participation in the AVASA program through April 30, 2032. As of this writing, AVASA has indicated that all cities in the county intend to continue the program. Resource Impact The City is already committed, through budget, to removing unoccupied, abandoned and visibly inoperable vehicles from public spaces regularly. Continued participation in this program will continue to help the City recover associated costs. The Police Department receives between 1,000 and 1,500 complaints from the community about abandoned vehicles annually, and Community Service Officers (CSOs) respond to each complaint evaluate the vehicle and enforce the law. CSOs also proactively mark all vehicles on El Camino Real on a weekly basis to ensure they are complying with the law as well, and that vehicles there do not fall under the criteria of Vehicle Code section 22669(d) for abatement. It is important to note that the City's enforcement efforts with regards to potentially abandoned vehicles balance public health and safety concerns with compassionate support of those who may be living in their vehicles. The City's approach includes offering information on available social service resources, and personal contacts with vehicle owners or occupants whenever possible to encourage voluntary compliance with the Vehicle Code; towing is a measure of last resort. Any vehicles towed pursuant to Vehicle Code section 22669(d) must be unoccupied and not being actively lived in for staff to initiate a tow. Stakeholder Engagement Staff has coordinated with County of Santa Clara AVASA staff in preparation of this resolution. Environmental Review Adoption of this resolution is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3), because it can be seen with certainty that it will not have a significant effect on the environment. Attachments: • Attachment A - Resolution Continuing the County Service Authority for Abandoned Vehicles and $1 Registration Fee City of Palo Alto Page 3 *NOT YET APPROVED* Resolution No. Resolution of the Council of the City of Palo Alto Approving Palo Alto's Continued Participation by Extension of the Santa Clara County Abandoned Vehicle Abatement (AVASA) Program and Approving the Authority for the California Department of Motor Vehicles to Collect the Vehicle Registration Fee for Distribution to the Santa Clara County Abandoned Vehicle Abatement Service Authority RECITALS A. California Vehicle Code section 22710 authorizes the establishment of a service authority for the abatement of abandoned vehicles in a county and the imposition of a one dollar ($1.00) vehicle registration fee, if the Santa Clara County Board of Supervisors, by a two -third vote, and a majority of the cities having a majority of the incorporated population within the county have adopted resolutions providing for the establishment, or in this case the continuation, of the authority and the imposition of the fee; and, B. On November 4, 1991, the Council approved Resolution No. 7039 authorizing the establishment of a service authority within Santa Clara County, thereby making funds available to the City for abatement activities through the imposition of a one dollar ($1.00) per vehicle annual registration fee on all vehicles registered in Santa Clara County; and, C. The Council has approved subsequent resolutions approving the continuation of the service authority and the imposition of the fee (see Resolutions 8121 and 9196); D. The number of vehicles abandoned on public and private property is not declining, and it is increasingly difficult for the City to sufficiently fund programs to abate abandoned vehicle nuisances; E. The City of Palo Alto has established a plan for abatement of abandoned vehicles pursuant to Chapter 10.34 of the Palo Alto Municipal Code; and, F. California Vehicle Code section 9250.7(g) authorizes the vehicle abatement registration fee to be imposed by a service authority only for a period of ten (10) years from the date that the collection of the fee commenced, provided, however that the fee may be extended in increments of up to ten (10) years by two-thirds vote of the County Board of Supervisors and a majority of the cities having a majority of the incorporated population within the county adopting resolutions providing for the extension of the fee; NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The City Council of the City of Palo Alto hereby approves the extension for an additional period of ten (10) years the collection by the California Department of Motor Vehicles for distribution to the Santa Clara County Abandoned Vehicle Abatement Service Authority that vehicle abatement fee authorized by California Vehicle Code section 22710. 1 232_20210527_ts24 *NOT YET APPROVED* SECTION 2. This Resolution shall be effective immediately upon adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: Mayor APPROVED: Deputy City Attorney Chief of Police Director of Administrative Services 2 232_20210527_ts24 CITY OF PALO ALTO City of Palo Alto (ID # 12305) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: Contract Amendment Number 2 with Magellan Advisors Title: Approval of Amendment Number 2 to Contract Number C20176363 With Magellan Advisors, LLC, for; 1) a Detailed Engineering Design of the new Fiber Backbone Expansion and Fiber -to -the -Home; 2) to Increase Compensation for a Total Not -to -Exceed Amount of $2,914,331; and 3) Approval of a Budget Amendment in Fiscal Year (FY21) for the Fiber Optics Fund From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council: 1. Approve and authorize the City Manager or their designee to execute Amendment No. 2 to Contract C20176363 (Attachment A) with Magellan Advisors, LLC (Magellan), for the continued provision of consulting services for a multi -phase fiber optic network expansion plan and to add a detailed engineering design of the new fiber backbone expansion and fiber -to -the -home (FTTH), in an amount not to exceed $2,649,392; 2. Authorize the City Manager or their designee to negotiate and execute one or more task orders for additional services under the contract with Magellan for related additional, but unforeseen work which may develop during the project; the total of which shall not exceed $264,939 or 10%, for a total not to exceed amount of $2,914,331 for all contract phases; 3. Amend the Fiscal Year 2021 Budget Appropriation for the Fiber Optics Fund (requires 2/3 approval) by: a. Increasing the budget appropriation for Fiber Optic System Rebuild CIP (FO -16000) by $1,068,255; and b. Decreasing the Fiber Optic Fund Rate Stabilization Reserves by $1,068,255. Executive Summary On May 24, 2021, Staff and Magellan presented the fiber backbone expansion plan and FTTH business case to City Council (Council Report #12117). Several sections of the existing fiber backbone have reached capacity and have limited the City's ability to serve customers in an efficient manner. The new fiber backbone will improve system reliability and increase system capacity for the City's business needs, commercial dark fiber leasing, and will serve as the foundation for a citywide FTTH network. Council unanimously approved (7-0) staff and Utilities Advisory Commission's recommendation to complete the City of Palo Alto Page 1 detailed engineering design of the City's fiber backbone and FTTH distribution network; accelerate community education and engagement regarding FTTH; complete a residential and commercial broadband survey, and return to Council with a City -operated Internet service provider (ISP) model and business plan to offer FTTH service within five years. Staff will return to Council with a staffing plan, timeline, and funding options for FTTH in mid -2022. Background On June 1, 2020, City Council approved a contract in the amount of $212,511 with Magellan for Phase 1 of the fiber network expansion plan (Council Report #11368). Phase 1 included a high-level design and cost estimate for fiber expansion to support Advanced Metering Infrastructure (AMI), Supervisory Control and Data Acquisition (SCADA), and wireless communication for City field staff and other City services. On October 5, 2020, City Council approved contract amendment No. 1 in the additional amount of $285,065 for a total not to exceed amount of $497,576 with Magellan, for combining Phase 1 and Phase 3 of the fiber network expansion plan (Council Report #11580). Combining the phases allowed the City to execute an integrated fiber expansion approach and acceleration of the FTTH business case. The four (4) phases of the Fiber Network Expansion plan are as follows: • Phase 1 seeks a high-level design and cost estimate for fiber expansion to support Advanced Metering Infrastructure (AMI), Supervisory Control, Data Acquisition (SCADA), and wireless communication for City field staff and other City services; • Phase 2 seeks a detailed engineering design and cost estimate for fiber expansion to support AMI, SCADA, and wireless communication for City field staff and other City services; • Phase 3 seeks a business case and high-level design for a citywide FTTH network. The FTTH network and high-level design in the business case should expand on the fiber network for AMI, SCADA and wireless communication; and • Phase 4 seeks a detailed engineering design, cost estimate and a phased deployment approach for FTTH. Under the original plan, each individual phase was to be completed and approved by City Council before the decision is made to proceed with the next phase. With contract amendment number 1, staff recommended advancing some FTTH analysis and tasks from Phase 3 to be completed concurrently with Phase 1. This combined approach enabled staff to bring forward preliminary findings of FTTH business case analysis in conjunction with the findings and recommendations of Phase 1 within six months. Amendment 2, presented here, seeks to further gain efficiency and cost savings by integrating Phase 2 and Phase 4. By combining phases 2 and 4, the detailed engineering can be completed for the two phases concurrently rather than independently of one another. This will lead to a shortened design timeframe and reduced costs for the City. The benefits of combining these two phases include a more streamlined constructability analysis, reduced costs for onsite fielding and a more integrated design for both networks. Field teams will concurrently walk out each route within the City for fiber backbone and fiber to the home networks. This enables fielders to be more efficient with their time and reduce duplication of walk outs. By engineering both the City network and the FTTH network simultaneously, Staff anticipates a more City of Palo Alto Page 2 substantial opportunity for value engineering as well, which will lower engineering costs and has the potential to materially reduce construction costs. Discussion On April 21, 2021, Staff and Magellan presented the FTTH business case to the Utilities Advisory Commission (UAC) (Staff Report #12118). The UAC discussion focused on the City ISP versus Partner ISP business models, community education and engagement, risks, costs, and financing options. The UAC voted unanimously (7-0), as shown in the draft minutes, to recommend building out the fiber backbone and establishing a City -operated ISP within five years. In order to meet the accelerated timeline, staff recommends combining the detailed engineering of the fiber backbone (phase 2) and FTTH (phase 4) to shorten the design timeframe and reduce project costs. On May 24, 2021, Staff and Magellan presented the fiber backbone expansion and FTTH business case to the City Council. The Council discussion focused on the importance of affordable, fast, reliable, and City - operated ISP broadband service at homes and businesses. Magellan explained the construction methodology (aerial vs. undergrounding) and cost components (80% labor and 20% material) of a citywide FTTH network. Magellan also provided the advantages and disadvantages of different FTTH business models including City -operated ISP with insource and outsource functions, partnership ISP, and open access ISP. Staff, UAC and Magellan recommend the City -operated ISP model with insource and outsource functions because it provides the City full control of pricing and customer experience and significantly higher financial return in the long-term. Both the partnership ISP and open access models are relatively new and have not been proven in the market. Finally, there was discussion regarding the sensitivity of take rate or percentage of subscribers. The FTTH business case assumes a take rate of 32%, which is conservative compared to a take rate of 42% for other municipal owned FTTH networks. Council unanimously approved (7-0) staff and Utilities Advisory Commission's recommendation to complete the detailed engineering design of the City's fiber backbone and FTTH distribution network; accelerate community education and engagement regarding FTTH; complete a residential and commercial broadband survey and return to Council with a City -operated Internet service provider (ISP) model and business plan to offer FTTH service within five years. Detailed Engineering Design and Cost Estimate This contract amendment provides an integrated approach to the detailed engineering design and cost estimate for the City's fiber expansion. It includes detailed engineering design for the new fiber backbone expansion and fiber to the home ("FTTH"). By combining phases 2 and 4, the detailed engineering can be completed for the two phases concurrently rather than independently of one another. This will lead to a shortened design timeframe and reduced costs for the City. The benefits of combining these two phases include a more streamlined constructability analysis, reduced costs for onsite fielding and a more integrated design for both networks. Field teams will concurrently walk out each route within the City for fiber backbone and fiber to the home networks. This enables fielders to be more efficient with their time and reduce duplication of walk outs. By engineering both networks simultaneously, we anticipate a more substantial opportunity for value engineering as well, which will lower engineering costs and has the potential to materially reduce construction costs. City of Palo Alto Page 3 Some design work has already been completed in Phase 1, including items 1 and 2 below, resulting in reduction of some costs in the FTTH design and enabling detailed engineering more quickly. The process will include: Task Descriptions & Workflows 1 GIS & Basemap Preparation Process preliminary basemap information for FTTH (addresses, poles, parcels, 3rd party infrastructure, etc.), create databases and map services as needed. (Most of this task was completed in Phase 1) 2 High Level Design Create initial high-level systems design including optimized OLT locations, backbone and feeder routes, followed by full preliminary design of the network to include fiber connectivity to every eligible customer in the service area. (Most of this task was completed in Phase 1) 3 Constructability Ride Out & Fielding Walk out every route for constructability issues and hazards, physically verify addresses, survey existing infrastructure as necessary. Identify pole lines, perform pole make ready engineering. 4 Low Level Design Create detailed engineering design from survey results by adding naming conventions, labeling, and fiber assignments; making necessary changes for design efficiencies, route optimization, and equipment locations. S Pole Loading & Make Ready Pole loading analysis and make ready engineering to support installation of new aerial fiber cable on existing poles 6 Final Design Updates Final quality control and optimization checks — spatial and data driven models. 7 Construction Documents Create and compile all documentation required to build the network, including detailed BOM, splicing documentation, schematic diagrams, fiber allocation sheets, construction -ready civils and cabling maps, etc. 8 City Review Review and acceptance of design. Community Education and Engagement Magellan will partner with the City to conduct comprehensive community education and outreach to raise awareness of the FTTH initiative. This will include development of educational materials, content, outreach with citizen and business groups, Q&A, utilization of the City's engagement platforms and related functions to build awareness of the FTTH program among citizens and businesses in Palo Alto. This may also include Town Halls, open houses or related venues with residents and businesses. The education and outreach program will be conducted in advance of any survey work to ensure that the City is able to accurately assess community interest in the program. Once the education and outreach program has been completed, Magellan will work with the City to develop statistically valid surveys of residents and businesses to measure demand for broadband services. The purpose of these surveys is to better understand what value residents and businesses place on different aspects of their broadband services. City of Palo Alto Page 4 Business Plan, Risk Analysis and Pro Formas for FTTH Magellan will develop a business plan for the City that provides extensive detail on the best approach to deploy and manage FTTH. The business plan will provide a detailed financial plan for the most effective ways to manage FTTH, considering how the City would allocate resources toward broadband, whether to insource or outsource different functions and the pros and cons of each. Alongside the business plan, Magellan will provide detailed pro formas for the FTTH network that itemize expected revenues, cost of services, operating costs, overheads, debt service costs, renewal and replacement and related costs of providing FTTH. This financial plan will provide year by year tracking of financial performance and set targets to meet financial and deployment goals for FTTH services. The business plan will include business risk analyses for key risks across the spectrum of providing FTTH services and the impact that risks have to the financial sustainability of the system over time. The risk analysis will identify controllable and non -controllable risks to help the City understand the tactics that it should be prepared to employ to mitigate risks where possible Construction Standards, Methodologies and Drawings Magellan will utilize the City's existing construction standards as a baseline to determine what construction requirements need to be updated to build the fiber backbone and FTTH. The goal is to preserve the City's critical civil construction standards and incorporate best practices for new fiber construction. This process will ensure that the base standards remain while more technologically current standards are applied to fiber construction, pulling, splicing, termination and testing. This process will also consider permitting requirements to ensure that the City's existing utility environment is protected as is any unnecessary construction impact to the community. Magellan will deliver all supporting documents needed to bid out the construction portion of fiber backbone. Once the low-level design is complete, all bid documentation requested will be delivered to the City to include construction ready prints, construction details, splice details, as well as all documentation needed to complete the bid package. This shall include a written summary and scope of work, estimated costs to construct, as well as labor estimates and a bill of materials. Resource Impact Funding of $453,530 is available in the FY 2021 Electric CIP Electric System Improvements (EL -98003). Funding of $895,000 is available in the FY 2021 Fiber CIP Fiber Optics Sytem Rebuild (F046000) which is not enough to cover the FTTH engineering design. As a result, staff recommends an appropriation of $1,068,225 in the FY 2021 Fiber Fund and offset by a reduction in the Fiber Fund rate stabilzation reserve. As a result of synergies of combining Phases 2 and 4, cost savings of $250,000 was realized in the contract. The benefits of combining these two phases include a more streamlined constructability analysis, reduced costs for onsite fielding and a more integrated design for both networks which could potentially result in substantial construction cost savings. The funding allocation shown below is based on the tasks associated with the electric and fiber utilities. Tasks related to the fiber backbone are funded by the Electric Fund because this is solely dedicated for the electric utility. Tasks related to FTTH are funded by the Fiber Fund. City of Palo Alto Page 5 This contract is on the City's professional services template, which permits the City to terminate without cause/for convenience by providing written notice to the contractor. In the event the City finds itself facing a challenging budget situation, and it is determined that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include termination due to non - appropriation of funds or amending the contract to reduce the cost, for example, by reducing the scope of work. Tasks and Funding Allocation for Phases 2 and 4 under Amendment 2 Task Electric Fiber Total Construction standards and methodologies $ 8,500 $ 8,500 $ 17,000 Education, Community Outreach & Surveys $ 30,000 $ 30,000 Detailed Design & Cost Estimates for Fiber Backbone $ 376,500 $ 376,500 Prepare Overview of Regulatory Issues $ 15,750 $ 15,750 Bid -ready construction drawings and bid package for fiber backbone $ 10,800 $ 10,800 Grant Funding Analysis $ 21,000 $ 21,000 Business Plan, Risk Analysis and Pro Formas for FTTH $ 65,000 $ 65,000 Detailed Design & Cost Estimates for FTTH $ 1,580,700 $ 1,580,700 Assistance with construction bid evaluation for fiber backbone $ 9,500 $ 9,500 Bid -ready construction drawings and bid package for FTTH $ 10,800 $ 10,800 Assistance with construction bid evaluation for FTTH $ 19,500 $ 19,500 Final Presentations to UAC & City Council $ 2,000 $ 8,500 $ 10,500 Travel (reimbusable) $ 5,000 $ 25,000 $ 30,000 Additional Services (if needed) $ 41,230 $ 178,475 $ 219,705 Total $ 453,530 $ 1,963,225 $ 2,416,755 Funding Allocation for Phases 1, 2, 3 and 4 for the Total Contract Contract Phase(s) Electric Fiber Total Council Report # and Date Original 1 $ 86,515 $ 125,996 $ 212,511 #11368 on 6/1/20 Amendment 1 3 $ 285,065 $ 285,065 #11580 on 10/5/20 Amendment 2 2 and 4 $ 453,530 $ 1,963,225 $ 2,416,755 #12305 on 6/21/21 Total $ 540,045 $ 2,374,286 $ 2,914,331 Timeline The estimated timeline of activities under amendment 2 are outlined below: City of Palo Alto Page 6 Task S tart Fnd Construction standards and methodologies June, 2021 October 2021 Education, Community Outreach & Surveys June, 2021 Deember 2021 Detailed Design & Cost Estimates for Fiber Backbone June, 2021 Deember 2021 Prepare Overview of Regulatory Issues June, 2021 Deember 2021 Bid -ready construction drawings and bid package for fiber backbone October, 2021 Deember 2021 Grant Funding Analysis June, 2021 March, 2022 Business Plan, Risk Analysis and Pro Forrnas for FTTH June, 2021 March, 2022 Detailed Design & Cost Estimates for FTTH June, 2021 March, 2022 Assistance with construction bid evaluation for fiber backbone March, 2022 March, 2022 Bid -ready construction drawings and bid package for FTTH April 2022 April 2022 Assistance with construction bid evaluation for FTTH June, 2022 June, 2022 Final Presentations to UAC & City Council June, 2022 July, 2022 Stakeholder Engagement On August 5, 2020, Utilities Advisory Commission (UAC) discussed the importance of broadband service and FTTH given the shift to teleworking, telepresence, and remote learning due to the COVID-19 pandemic. UAC asked staff and Magellan to accelerate some FTTH analysis and tasks in Phase 3 to earlier phases to shorten the duration of the fiber network expansion plan. The UAC Budget Subcommittee and staff met multiple times with Magellan in March and April 2021 to discuss the fiber backbone expansion and FTTH business case. Per Council prior direction as part of the Community and Economic Recovery work plan, staff will prioritize and accelerate community education and engagement regarding FTTH. Staff and Magellan presented the FTTH business case to the UAC on April 21, 2021. The UAC voted unanimously (7-0) to recommend building out the fiber backbone and establishing a City -operated ISP. Environmental Review Council approval of actions to design, model, assess risks, and develop cost estimates for the proposed fiber network expansion project and City -operated fiber internet service are categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15306 (Information Collection) of the CEQA Guidelines because the services consist of data collection, research, and evaluation as part of a study leading to an action that the City has not yet approved or funded. The City will conduct an environmental assessment of subsequent project phases, as needed, prior to implementation. Attachments: • Attachment A: Contract with Magellan Advisors, LLC_C20176363 Amendment No. 2 City of Palo Alto Page 7 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 AMENDMENT NO. 2 TO CONTRACT NO. C20176363 BETWEEN THE CITY OF PALO ALTO AND MAGELLAN ADVISORS LLC. This Amendment No. 2 (this "Amendment") to Contract No. C20176363 (the "Contract" as defined below) is entered into as of May 18, 2021, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and MAGELLAN ADVISORS LLC., a Florida limited liability company, located at 450 Alton Road 1402, Miami, FL 33139 ("CONSULTANT"). CITY and CONSULTANT are referred to collectively as the "Parties" in this Amendment. RECITALS A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of consulting services for Phase 1 of a multi -phase fiber optic network expansion plan, as detailed therein. B. Amendment No. 1 was executed in order to add services from Phase 3, and to increase the compensation by $285,065 from $212,511 to $497,576 for combined Phase 1 and Phase 3 services. C. The Parties now wish to amend the Contract in order to add services from Phases 2 and 4 to the existing Phases 1 and 3, extend the contract term by 17 months and to increase the compensation by $2,416,755 from $497,576 to $2,914,331 for combined Phase 1, Phase 2, Phase 3 and Phase 4 services as specified in the revised EXHIBIT "A" Scope of Services. 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. C20176363 between CONSULTANT and CITY, dated June 1, 2020. 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 September 30, 2022 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement." SECTION 3. Section 4. "NOT TO EXCEED COMPENSATION" of the Contract is hereby amended to read as follows: Vers.: Aug. 5, 2019 Page 1 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 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 Two Million Six Hundred Forty Nine Thousand Three Hundred Ninety Two Dollars ($2,649,392.00). 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. VI 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 Two Hundred Sixty -Four Thousand Nine Hundred Thirty -Nine Dollars ($264,939.00) 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 Two Million Nine Hundred Fourteen Thousand Three Hundred Thirty -Three Dollars ($2,914,331.00), 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 Vers.: Aug. 5, 2019 Page 2 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement. SECTION 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 "A-1" entitled PROFESSIONAL SERVICES TASK ORDER, ADDED. c. Exhibit "B" entitled "SCHEDULE OF PERFORMANCE", AMENDED, REPLACES PREVIOUS. d. Exhibit "C" entitled "COMPENSATION", AMENDED, REPLACES PREVIOUS. 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. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) Vers.: Aug. 5, 2019 Page 3 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 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 MAGELLAN ADVISORS LLC. .— DocuSigned by:I By: 901a/l,4 Nay( y( •-2388994880434D5 Name: John Honker City Manager Title: APPROVED AS TO FORM: City Attorney or designee Attachments: EXHIBIT "A": SCOPE OF SERVICES EXHIBIT "A-1": PROFESSIONAL SERVICES TASK ORDER EXHIBIT "B": SCHEDULE OF PERFORMANCE EXHIBIT "C": COMPENSATION By: rb Vl1A01t, President DocuSigned by: F8F7640205A84FB... Name: Courtney viiolette Title: Chief operating officer Vers.: Aug. 5, 2019 Page 4 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 EXHIBIT "A" SCOPE OF SERVICES Statement of Purpose This amended Statement of Work (SOW) specifies in detail services for Magellan Advisors, LLC to begin work on Phase 2 and Phase 4 of the City's anticipated multi -phase fiber optic network expansion plan, in addition to the ongoing work on Phase 1 and Phase 3. In conducting its work on Phase 1 and Phase 3, Consultant will prepare a detailed engineering design for the new fiber backbone expansion and fiber to the home ("FTTH"). This will allow the City to continue pursuing a comprehensive fiber expansion strategy from an integrated cross -utility perspective, as Phase 4 of the City's expansion plan is to extend fiber -to -the -home (FTTH). The overall objective of the strategy integrating Phase 2 and Phase 4 tasks is for the Consultant to perform the detailed engineering design for the two phases concurrently rather than independently of one another. This will lead to a shortened design timeframe and reduced costs for the City. BACKGROUND City of Palo Alto Utilities (CPAU), a department of the City, has operated and maintained the existing fiber network for more than twenty years. The network serves a variety of users with more than 200 dark fiber service connections supporting the communication needs of City facilities, critical municipal infrastructure, large commercial businesses, and anchor institutions such as schools and libraries. CPAU is responsible for implementing the AMI and Smart Grid System Plan and managing the existing SCADA system. Additionally, CPAU and the City's information Technology Department are responsible for implementing internal wireless communication systems which utilize a portion of the City's dark fiber network. Scope of Work In consultation with and under the direction of City staff, CONSULTANT will complete the following tasks: Vers.: Aug. 5, 2019 Page 5 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 Integrated Phase 1 & Phase 3 Approach High -Level Design and Cost Estimate for AMI, SCADA, and Wireless Communications for City Field Staff and Other City Services, plus Business Case for FTTP This amended statement of work provides an integrated approach that combines Phases 1 and 3 of the Palo Alto Fiber Expansion Project, for the purposes of accelerating the fiber to the premise (FTTP) business case alongside the analysis of fiber expansion for the City's internal departments (CPAU, Public Works, Public Safety). This scope provides an approach to run Phase 3 tasks in parallel to the Phase 1 tasks that are already underway. This approach will allow Phase 1 to be completed in the same amount of time as the original agreement yet also have preliminary findings of the Phase 3 FTTP analysis completed for review by the UAC and City Council in the same 6 -month window. With the revised approach, staff and Magellan recommends resequencing the order of individual tasks to take advantage of synergies in combining the phases while also delivering preliminary findings and business case within the original six month timeline. Deliverables Overview (in order of anticipated completion date): A. Prepare draft local ordinances to support broadband deployment (Task 5); B. Working with all sources of information and data for the existing fiber optic network including information from the 2016 audit, reconcile the information (Task 1) by: a. Performing a review of as -built project files, engineering data on fiber connections, and fiber network maps to determine individual fiber usage; b. Providing updated records to reflect audited data; c. Providing recommendations for ESRI GIS Platform information including information regarding an optimal Fiber Management System (FMS) software for data access and highly efficient fiber project management.; C. Develop FTTP business case options to determine the viability of deploying broadband services to the Palo Alto community, to enhance City and community services, and expansion opportunities for commercial dark fiber (Task 11); D. Prepare a high-level design and cost estimate of a fiber optic communication system for AMI, SCADA and wireless communications for Public Safety, Public Works and Utilities field staff (Task 2); E. Conduct a market assessment of the local broadband and telecommunications market in Palo Alto that will inform a FTTP business case (Task 12); F. Based on the high-level design, prepare a bill of materials and high-level cost estimate for the fiber expansion (Task 3); G. Prepare a preliminary report for Phase 1 that will include presentations by the selected consultant(s) before the Utilities Advisory Commission (UAC) by the first quarter of 2021 and Vers.: Aug. 5, 2019 Page 6 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 for the City Council at a public meeting by the second quarter of 2021. The goal of this report is to inform the UAC and City Council of the findings of the fiber expansion study and the findings of the FTTP business case and seek direction (Task 4); H. Based on UAC and City Council direction, explore public private partnership options for FTTP deployment (Task 14); I. Based on UAC and City Council direction, conduct needs assessment and statistically valid broadband surveys for FTTP, electric system underground district conversion projects and customer appliance electrification to determine realistic demand from Palo Alto residents and businesses (Task 13); J. Update FTTP business case and cost estimate with findings from partnership opportunities and market assessment (Task 15); K. Prepare a final report based on the results of the needs assessment, statistically valid broadband surveys and partnerships for presentation before the Utilities Advisory Commission (UAC) and for the City Council at separate public meetings (Task 16). Additional requirements and deliverable details: A. Task 9: Local Ordinances Deliverables 1. Prepare draft ordinances as directed by City staff with the intention of reducing construction costs and implementation time associated with a fiber network expansion. Potential ordinances: a) Dig Once i. Include a review of existing City of Palo Alto Municipal Code provisions governing Third Party Coordination in the Public Rights -of -way and Joint Trench Coordination in Underground Districts b) One Touch Make Ready c) Multi -unit Housing Access d) Microtrenching (the inclusion of microtrenching in a draft ordinance will depend on the outcome of the evaluation of construction methods in consultation with the Public Works and Utilities Departments) 2. Consultant will prepare draft ordinances for review and comment by staff in the City Attorney's office, allocating sufficient time for editing and revision based on attorney comments. Draft ordinances must be suitable for adoption by the City Council, meaning that they work in concert with the City's infrastructure, municipal code requirements, and network buildout needs. B. Task 1: Fiber Reconciliation Deliverables Vers.: Aug. 5, 2019 Page 7 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 Working with all sources of information and data on the fiber optic network including information from the 2016 audit, reconcile the information to determine the most likely fiber path for each existing customer connection including: 1. Identification of backbone fiber splicing at each node 2. Identification of service drop splicing at each node 3. After full review of the as -built documentation and data available, create a list of all fiber connection discrepancies or missing data as it relates to the existing network connections and routing. Any fiber testing, opening of Splice cases, trays fiber panels or proofing of conduit shall be completed by a 3rd party under a separate agreement. 4. Update GIS mapping to reflect any changes or corrections identified. Task 1.a - Perform review of as -built project files, engineering data on fiber connections, and fiber network maps to determine individual fiber usage: Execute the proposed plan by reviewing data that identifies at each node or fiber mid -split how fibers are spliced in the field 1. Identify splice assignments in each node/cable mid -split. Compare to available fiber OTDR test results for accuracy. Deliverable includes updated spreadsheet of fiber strand routing based on audit of existing data. All data listed containing discrepancies or that cannot be verified by existing data will be noted for verification by a 3rd party. 2. Identify fiber allocation data of each fiber and how it relates to connection and/or termination point. Deliverable includes audited spreadsheet of each end connection and its location. All data listed containing discrepancies or that cannot be verified by existing data will be noted for verification by a 3rd party. 3. Where information is available, identify connections by fiber tray, splice closure, etc. Task 1.b - Provide updated records to reflect audited data: Document all findings and present in formats that clearly illustrates updated audited information. 1. Provide audited high-level strand map of fiber allocation and routing — noting data discrepancies. 2. Provide audited spreadsheet of fiber allocation and assignments including name and address and service order number (if available), noting data discrepancies. 3. Provide data in a format that can be easily downloaded into CPAU's GIS. Task 1.c — Esri GIS Platform Information Provide recommendations for Esri GIS platform that can be used by CPAU to meet fiber optic data management, project preliminary design and fiber allocation needs. C. Task 11: FTTP Business Case and High -Level Design Deliverables Magellan will prepare a business case and high-level design for expanding Palo Alto's fiber to provide Citywide FTTP services. This business case will also assess how Citywide FTTP would enhance City and utility services through densification of fiber from deployment of FTTP. It will also assess how the current dark fiber leasing program would be impacted by Citywide FTTP. Consultant's work will culminate in a broadband financial plan that assesses the financial performance of a FTTP network under different business models such as retail, partnerships, and Vers.: Aug. 5, 2019 Page 8 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 fiber leasing. Magellan will workshop this with the City to educate staff on the options, run scenarios and inform City of the most viable business cases. In preparing the FTTP business case, Consultant will also incorporate a number of other scenarios that could reduce cost or create synergies other City capital projects. Magellan will work with the City to determine where the following types of projects are occurring and the net impact they may have on the total cost of FTTP deployment. Magellan will incorporate these reductions into financial models to determine how each may positively (or negatively) impact the business case for FTTP including: • Assessing electric system rebuild projects — overhead and underground • Assessing electric undergrounding • Gas pipeline replacement • Dig once and other ordinances The business case will also provide different scenarios for the City's investment in FTTP. Magellan will analyze options such as: • City fiber backbone only • City fiber backbone and distribution • City fiber backbone, distribution and drops • City hybrid fiber and wireless distribution • Others as determined in the analysis D. Task 2: High -Level Design Deliverables • Consultant will prepare a high-level design and cost estimate for engineering and construction of a fiber network to support future AMI/Smart Grid/SCADA and wireless communications, making use of existing city -owned fiber optic infrastructure where feasible.1 The fiber network must support the advanced metering communications platform, backhaul for Smart Grid and SCADA communications, including ensuring security requirements for critical utility and public safety infrastructure. This high-level design and cost estimate for fiber expansion should include the layout of aerial and underground fiber routes (i.e. where fiber needs to go)2, connection points and estimated fiber counts for the AMI, Smart Grid system, SCADA system and wireless communications. The design should evaluate the integration of the existing dark fiber backbone with potential service point locations for AMI collectors (approximately 10 to 20 access points), possible electric distribution system SCADA equipment (approximately 100 to 200 switches), and identification of potential locations for wireless access points on wood utility poles, 1 The City's existing dark optical fiber backbone is 49 -route miles of mostly 144- or 288- count single -mode fiber, primarily located in downtown Palo Alto and several business parks (e.g. Stanford Business Park). A fiber optic backbone map will be provided to the selected consultant(s). 2 The high-level network design should consider the possibility of using abandoned gas pipelines for fiber routes. Abandoned gas pipelines were not considered in the City's 2015 Fiber -to -the -Premises Master Plan (58 percent of Palo Alto has abandoned gas pipes in residential neighborhoods and commercial zones). Vers.: Aug. 5, 2019 Page 9 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 streetlight poles and other City -owned structures and properties.' This high-level design and cost estimate should also include the layout and use of repurposed abandoned gas pipelines, if deemed useable/appropriate. • This high-level design and cost estimates should also include wireless communication options for the City's Office of Emergency Services, Fire and Police Departments, Public Works and Utilities, along with remote monitoring of critical infrastructure in the Palo Alto foothills and railroad crossings, in addition to support of future Smart City applications or other City uses such as traffic and parking sensors, streetlight controls, and microgrid controls. • Under a non -disclosure agreement, the City will provide key infrastructure data to prepare this Phase 1 estimate as listed below: o Addresses o Streets o Right of way easements o City boundaries o Parcels or lot lines o Utility poles o Streetlight poles o Overhead strand (guys and anchors): City -owned, operated or controlled o Existing underground utility routes o Abandoned natural gas pipelines o Overlay of existing underground and abandoned natural gas pipelines with existing fiber network o Manholes o Pavement Condition Index score by street o Zoning o Building footprint o Existing spare conduit available o Existing dark fiber available o Infrastructure maintenance plan (road and power) o Potential Central Office/Hut/Cabinet sites by address E. Task 12: Market Assessment Deliverables Magellan will conduct an inventory of existing providers and service offerings in Palo Alto. Magellan will perform a detailed market assessment to identify the current state of broadband quality and coverage. Magellan will determine if the City's broadband market is being driven by healthy competitive forces and at reasonable price points. Magellan will provide a market assessment matrix 3 The City issued an RFP for a Public Safety Wireless Mobile Network in 2017. This RFP was for a "proof of concept pilot" and no bids were received. Elements of this RFP may provide relevant information for the placement of fiber -connected wireless access points. Vers.: Aug. 5, 2019 Page 10 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 that will detail the services that are available, providers, service level, and pricing, as well as any available options to "bundle" services. This assessment will also inform the City of what providers are planning for the region and new competitive products and services that may be introduced to the Palo Alto market, impacting competition and the City's decision making in deployment of FTTP services. F. Task 3: Bill of Materials and Cost Estimates Deliverables Based on the high-level design, Magellan will produce a bill of materials and high-level cost estimate for the fiber expansion to provide Palo Alto a sense of total network mileage, fiber capacity and cost. Our BOM and cost estimates will provide detailed information on all materials, labor, permitting (City, County, State), pole requirements, make ready, environmental and other details to allow Palo Alto to make informed decisions on moving forward or making adjustments to the high- level design to reduce cost or complexity of the network build. G. Task 4: Phase 1 Report, Presentations and Approval Process Deliverables Magellan will develop a summary report that lays out cost estimates and high-level design for Palo Alto's fiber expansion. Magellan's team will compile and present the report to the City's leadership, the Utilities Advisory Commission, and City Council at separate public meetings. All documents generated to support delivery of the report will also be provided to Palo Alto. 13. Task 14: Partnership Options Deliverables Magellan will assist the City with investigating opportunities for partnerships including public - private and public -public agreements with incumbent and/or new broadband providers and other local municipalities. Magellan will provide a report outlining public -private partnership opportunities and update the business case as needed. Some of the key questions that Consultant will address in this report include: • How will joint investment in broadband infrastructure be accomplished between the City and private sector organizations? • What legal and operational structures should be considered by the City of and private sector organizations in use of the City's proposed infrastructure? • How will the City balance private sector goals of revenue growth and profitability with public goals of providing affordable and available broadband services across the City? • How will future system expansion be handled between the City and private sector providers and what contributions will the parties make to this infrastructure? • How will the City maintain neutrality and open interconnection policies with private sector providers, promoting a competitive environment that benefits the City's broadband user base? • How will an oversight and management board be structured, who will seat the board and what powers and responsibilities will the board have to the project? Subject to City Council approval and recommendations for Phase 1, Magellan will assist with development of RFPs, RFQs or ITBs to solicit private partners in subsequent phases. Magellan will Vers.: Aug. 5, 2019 Page 11 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 develop the bids, manages the processes, and supports the negotiations with partners alongside the City. I. Task 13: Education, Community Outreach and Surveys Deliverables Consultant will conduct comprehensive outreach to Palo Alto's community anchor institutions and businesses to develop a needs assessment, tailored specifically to developing a business case for the City's fiber -to -the -premises network as well as to measure the level of interest for utilities undergrounding and customer appliance electrification. Magellan will use a combination of online surveys and focus group interviews and discussions as detailed more fully below. Statistically Valid Conjoint Surveys — Residential and Business The purpose of these surveys is to better understand what value residents and businesses place on different aspects of Palo Alto's projects. Consultant's surveys will assess interest in FTTP, electric undergrounding and appliance electrification. For the FTTP survey, Consultant shall utilize conjoint analysis to present a number of different offers to utility customers and ask them to choose their preferred offer. Rather than traditional descriptive surveys, the conjoint method will provide predictive analysis of what customers are likely to select from a number of different offers in the market. Consultant's survey method will provide City with highly reliable take rates for service, compared with descriptive surveys, which provide moderate accuracy of take rates. For electric undergrounding and appliance electrification, Magellan will use more traditional qualitative surveys to gain insight from Palo Alto's utilities customers regarding their interest and feelings toward these programs. Consultant will hold interviews with key community anchor organizations to gain an understanding of their current and future broadband and technology needs. The format for these will be group settings in which Magellan's team will stimulate open dialogue about current and future broadband needs. Consultant will work with the City to identify community anchors across education, healthcare, municipal, public safety, state, regional and other organizations. Community anchor organizations are key organizations that often become "anchor tenants" on broadband networks because of their high demand for bandwidth. Business Focus Group Interviews For businesses in Palo Alto, Consultant will hold focus group interviews and discussions to understand their current and future broadband and technology needs, by coordinating events through local economic development personnel or the local chamber of commerce. Focus groups containing 5-10 businesses each provide valuable information that Consultant will utilize to assess the demand for services in Palo Alto. J. Task 15: Incorporate Findings into Business Case Deliverables Magellan will incorporate findings from the market assessment, needs assessment, and partnership opportunities to develop a business model that fits the framework of the City's financial, operational, and organizational requirements that will have the greatest chance of success and will be the most Vers.: Aug. 5, 2019 Page 12 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 financially sustainable. Consultant will present this business case to the City's team and provide an analysis of how it meets City's goals in the project. Magellan will work with City to define the range of business model options to evaluate for expanded fiber deployment, which may include the following: • Wholesale dark fiber and/or services in partnership with telecommunications providers; • Expanded retail services to a range of customer segments, which may include residential; • Partnership models with existing broadband providers; • Others to be determined. Magellan will use its Broadband Financial Sustainability Model to ensure that Palo Alto has a full understanding of the business and financial sustainability of the Citywide FTTP program. Using Consultant's financial tools, Consultant will use the following process to conduct the business model analysis and make recommendations, using a 10 -year period to analyze the project: 1. Develop the cost model for the network, including one-time and ongoing capital expenditures to build the network. 2. Develop the cost model for operations, including O&M, network operations, field services, staffing, billing and customer service. 3. From the market analysis and outreach, determine the customer segmentation and growth on the network, across each type of customer (business, school, hospital, etc.). 4. Determine customer growth rates for the network, based on benchmarking analysis from other utility and municipal providers. 5. Determine a proposed competitive rate schedule for potential services, using pricing information from the market analysis and benchmarking information. 6. Develop financial statements, pro-formas, depreciation schedules, and cash flows. 7. Conduct comprehensive financial analysis on the project to determine overall financial sustainability using key metrics such as free cash flow, debt service coverage, operating margin, and net income. 8. Incorporate findings, review with City teams and provide direction for the final business case. K. Task 16: Presentations to the UAC and/or City Council Deliverables Magellan will make interim and final presentations to the UAC and/or City Council to inform leadership of the results of the business case. Consultant will have their project executives either onsite or available online in real time for these meetings to provide "Executive Level" information on the various options, opportunities, and risks. Vers.: Aug. 5, 2019 Page 13 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 Integrated Phase 2 & Phase 4 Approach Engineering Design for Fiber Backbone Expansion & FTTH This scope provides an integrated approach to the detailed engineering design tasks for the City of Palo Alto's fiber expansion. It includes detailed engineering design for the new fiber backbone expansion and fiber to the home ("FTTH"). By combining phases 2 and 4, the detailed engineering can be completed for the two phases concurrently rather than independently of one another. This will lead to a shortened design timeframe and reduced costs for the City. The benefits of combining these two phases include a more streamlined constructability analysis, reduced costs for onsite fielding and a more integrated design for both networks. Field teams will concurrently walk out each route within the City for fiber backbone and fiber to the home networks. This enables fielders to be more efficient with their time and reduce duplication of walk outs. By engineering both networks simultaneously, Magellan anticipates a more substantial opportunity for value engineering as well, which will lower engineering costs and has the potential to materially reduce construction costs. The detailed scope and deliverables below lay out the essential tasks to complete Phases 2 and 4. The task numbers from the original scope of work have been preserved to tie back to the original proposal. Detailed Engineering Design & Cost Estimates for the Fiber Backbone & FTTH Task 6. Develop Construction Standards and Methodologies Magellan will utilize the City's existing construction standards as a baseline to determine what construction requirements need to be updated to build the fiber backbone and FTTH. Consultant's goal is to preserve the City's critical civil construction standards and incorporate best practices for new fiber construction. This process will ensure that the base standards remain while more technologically current standards are applied to fiber construction, pulling, splicing, termination, and testing. This process will also consider permitting requirements to ensure that the City's existing utility environment is protected as is any unnecessary construction impact to the community. Magellan will work with the City team to define the materials that are best for the required installations and ground conditions, including conduit type, fiber-optic cable, connector, enclosures, vaults, boxes, splice cases, pole hardware, and other materials. Magellan's objective is to provide the City with an up to date "City of Palo Alto Fiber Design & Construction Manual" that contains the City's base standards and updated best practices for installation of its fiber backbone and FTTH networks. Task 13. Education, Community Outreach & Surveys Magellan will work with the City to conduct comprehensive community education and outreach to raise awareness of the FTTH initiative. This will include development of educational materials, content, outreach with citizen and business groups, Q&A, utilization of the City's engagement platforms and related functions to build awareness of the FTTH program among citizens and businesses in Palo Alto. This may also include Town Halls, open houses or related venues with citizens and businesses. In these events, Magellan is happy to lead education Vers.: Aug. 5, 2019 Page 14 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 sessions, present the projects and answer questions from constituents regarding FTTH and related projects. The education and outreach program will be conducted in advance of any survey work to ensure that the City is able to accurately assess community interest in the program. The City also conveyed interest in surveying constituents to determine interest in undergrounding and customer appliance electrification. If directed by the City, Magellan will incorporate this into the education and outreach program in conjunction with FTTH. Once the education and outreach program has been completed, Magellan will work with the City to develop statistically valid surveys of residents and businesses to measure demand for broadband services. Statistically Valid Conjoint Surveys — Residential and Business The purpose of these surveys is to better understand what value residents and businesses place on different aspects of their broadband services. Magellan's surveys will assess interest in FTTH, electric undergrounding and appliance electrification. For the FTTH survey, Magellan proposes utilizing conjoint analysis to present a number of different offers to consumers and ask them to choose their preferred offer. Rather than traditional descriptive surveys, the conjoint method will provide predictive analysis of what consumers are likely to select from a number of different offers in the market. This is critically important for Palo Alto to ascertain highly reliable take rates for service, rather than descriptive surveys, which provide moderate accuracy of take rates. For electric undergrounding and appliance electrification, Magellan will use more traditional surveys to gain insight from Palo Alto's community regarding their interest and feelings toward these programs. Task 5. Detailed Engineering Design & Cost Estimate for Fiber Backbone Magellan will create a detailed engineering design for the fiber backbone developed in Phase 1. The detailed engineering design will optimize the initial routes and phases planned in Phase 1 to support constructability at the lowest cost and in compliance with the City's construction standards. Magellan will provide detailed fielding and walk -out of all routes to validate running lines, existing utilities, and constructability. This will also include collection of subsurface utility data from utility owners in the City to determine the best opportunities to maintain separation on linear runs and establish crossings where required for underground construction. Magellan's field team will utilize GIS-based tablets for data collection and upload to our back -office engineering team for real-time design production. For aerial design, Magellan will provide make ready engineering to determine costs for pole preparation and pole replacement, as well as timeframes for the work to be completed. Magellan Vers.: Aug. 5, 2019 Page 15 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 will work with the City to determine which poles may need replacement and Magellan will develop a final budget for replacement as part of the project. Magellan's field team will walk out all aerial routes, inspect each pole, capture photos, identify attachments and plan new attachments for fiber installation. Magellan's network design will call out methods of construction, cable sizes, vault locations, splice details, existing infrastructure, and slack locations. It will also identify all laterals, drops and building entrances. In conjunction with FTTH, Magellan will include optimal hut locations for fiber distribution and allocate specific fibers for future broadband usage throughout the City. Magellan's design process will assess optimal redundancy modes for both the City's backbone fiber and FTTH networks to ensure high redundancy is always planned for in the design. Once fielding is complete, Magellan will create the final design, bills of materials, construction packages, permitting requirements and construction phasing plan for the network. Magellan will workshop this iteratively with the City team to ensure that there is ample feedback and opportunities to adjust the final design packages as needed based on the City's preferences. Some design work has already been completed in Phase 1, including items 1 and 2 below, providing a way to reduce some costs in the FTTH design and move into detailed engineering more quickly. Magellan's process will include the following: Task Descriptions & Workflows 1 GIS & Basemap Preparation Process preliminary basemap information for FTTH (addresses, poles, parcels, 3rd party infrastructure, etc), create databases and map services as needed. (Most of this task was completed in Phase 1) 2 High -Level Design Create initial high-level systems design including optimized optimal line termination (OLT)locations, backbone and feeder routes, followed by full preliminary design of the network to include fiber connectivity to every eligible customer in the service area. (Most of this task was completed in Phase 1) 3 Constructability Ride Out & Fielding Walk out every route for constructability issues and hazards, physically verify addresses, survey existing infrastructure as necessary. Identify pole lines, perform pole make ready engineering. 4 Low Level Design Create detailed engineering design from survey results by adding naming conventions, labeling, and fiber assignments; making necessary changes for design efficiencies, route optimization, and equipment locations. 5 Pole Loading & Make Ready Pole loading analysis and make ready engineering to support installation of new aerial fiber cable on existing poles. 6 Final Design Updates Final quality control and optimization checks — spatial and data driven models. Vers.: Aug. 5, 2019 Page 16 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 7 Construction Documents Create and compile all documentation required to build the network, including detailed bill of materials (BOM,) splicing documentation, schematic diagrams, fiber allocation sheets, construction -ready civils and cabling maps, etc. 8 Client Review Obtain City review and acceptance of design. Task 7. Bid -Ready Construction Drawings and Bid Package for the Fiber Backbone Magellan's project team will deliver all supporting documents needed to bid out the construction portion of fiber backbone. Once the low-level design is complete, all bid documentation requested will be delivered to the City to include construction ready prints, construction details, splice details, as well as all documentation needed to complete the bid package. This shall include a written summary and scope of work, estimated costs to construct, as well as labor estimates and a bill of materials. Magellan's support for the City's Invitation For Bid (IFB) process will include, if directed by the City, any of the following: attendance at the pre -bid conference, preparing any necessary addenda, assisting the City with responses to bidder questions, and attending the bid opening. Task 10. Prepare an Overview of Local, State, and Federal Legal and Regulatory Issues Magellan will provide a regulatory review of California State and Federal statutes including FCC and State laws regarding municipal broadband and the impact to Palo Alto. This analysis will inform the City of regulations around deploying new fiber infrastructure and providing fiber -to - the -premises services to the community. Magellan will advise on current regulations to provide high-speed internet, telephone, television, and other services that Palo Alto may consider in its evaluation of municipal broadband. Magellan has completed significant work with other cities and utilities on regulatory issues such as pole access, cross -subsidization, cost allocation and funding requirements, and Magellan will advise Palo Alto staff and City leadership on regulatory risk and potential approaches. Task 17. Detailed Engineering Design and Cost Estimate for FTTH Magellan will utilize all information, designs, and documentation from the recently conducted FTTH business case to develop a FTTH engineering design, providing gigabit and greater broadband access to homes and businesses across the City. The results of the business case have provided very pertinent information on how the FTTH network should be designed and constructed. The cost studies completed during the FTTH business case will serve as a valuable guide to determine value engineering and construction optimization to support the most effective FTTH deployment at the lowest cost. Magellan will incorporate City's future capital projects and undergrounding plans that require underground boring or trenching into the engineering process to determine the optimal FTTH design to enable gigabit broadband services, while expanding connectivity for City and utility needs. For this task, Magellan's key objective is to create optimized and phased construction packages with clear sets of instructions that can be utilized by a construction contractor to build the most efficient, reliable, and scalable network possible. Magellan will design the FTTH network using a phased approach, based on the City's priorities and overall goals for broadband. Vers.: Aug. 5, 2019 Page 17 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 Magellan will provide detailed fielding and walk -out of all routes to validate running lines, existing utilities, and constructability. This will also include collection of subsurface utility data from utility owners in the City to determine the best opportunities to maintain separation on linear runs and establish crossings where required for underground construction. Magellan's field team will utilize GIS-based tablets for data collection and upload to our back -office engineering team for real-time design. For aerial design, Magellan will provide make ready engineering to determine costs for pole preparation and pole replacement, as well as timeframes for the work to be completed. Magellan will work with the City to determine which poles may need replacement and develop a final budget for replacement as part of the project. The field team will walk out all aerial routes, inspect each pole, capture photos, identify attachments and plan new attachments for fiber installation. Once fielding is complete, Magellan will create the final design, bills of materials, construction packages, permitting requirements and construction phasing plan for the network. This final design will also include specifications for fiber huts and data center plans to support network electronics. This will include floor layouts, splitter cabinets, HVAC, power plant, generator, and security. Network electronics specifications will also be developed to ensure that the network is compatible with the latest PON, Ethernet and DWDM technologies. Finally, Magellan will develop detailed splice plans for each phase of the network for all feeder, distribution and drop fibers with assignments for incorporation into a final GIS-based fiber management system. Magellan will workshop the design iteratively with the City team at the 30%, 60%, 90% and 100% design phases to provide ample opportunities for feedback and adjustments to the final design packages, based on the City's preferences. Some design work has already been completed in the FTTH business case, including items 1 and 2 below, providing a way to reduce some costs in the FTTH design and move into detailed engineering more quickly. Magellan's process will include the following: Task Descriptions & Workflows 1 GIS & Basemap Preparation Process preliminary basemap information for FTTH (addresses, poles, parcels, 3rd party infrastructure, etc), create databases and map services as needed. (This task was substantially completed in the FTTH Business Case) 2 1 I i gh-Level Design Create initial high-level systems design including optimized OLT locations, backbone and feeder routes, followed by full preliminary design of the network to include fiber connectivity to every eligible customer in the service area. (This task was substantially completed in the FTTH Business Case) 3 Constructability Ride Out & Fielding Walk out every route for constructability issues and hazards, physically verify addresses, survey existing infrastructure as Vers.: Aug. 5, 2019 Page 18 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 necessary. Identify pole lines, perform pole make ready engineering. 4 Low Level Design Create detailed engineering design from survey results by adding naming conventions, labeling, and fiber assignments; making necessary changes for design efficiencies, route optimization, and equipment locations. 5 Pole Loading & Make Ready Pole loading analysis and make ready engineering to support installation of new aerial fiber cable on existing poles. 6 Final Design Updates Final quality control and optimization checks — spatial and data driven models. 7 Construction Documents Create and compile all documentation required to build the network, including detailed BOM, splicing documentation, schematic diagrams, fiber allocation sheets, construction -ready civils and cabling maps, etc. 8 Client Review Obtain City's review and acceptance of design. Task 18. Bid -Ready Construction Drawings and Bid Package for the FTTH Magellan's project team will deliver all supporting documents needed for City to bid out the construction portion of FTTH. Once the low-level design is complete, all bid documentation requested will be delivered to the City to include construction ready prints, construction details, splice details, as well as all documentation needed to complete the bid package. This shall include a written summary and scope of work, estimated costs to construct, as well as labor estimates and a bill of materials. As directed by City, Magellan's support for the IFB process will also include any of the following: Magellan's attendance at the pre -bid conference, preparing any necessary addenda, assisting the City with responses to bidder questions, and attending the bid opening. Task 20. Business Plan, Risk Analysis and Pro Formas for FTTH Magellan will develop a business plan for the City that provides extensive detail on the best approach to deploy and manage FTTH. The business plan will provide a detailed financial plan for the most effective ways to manage FTTH, considering how the City would allocate resources toward broadband, whether to insource or outsource different functions and the pros and cons of each. Alongside the business plan, Magellan will provide detailed pro formas for the FTTH network that itemize expected revenues, cost of services, operating costs, overheads, debt service costs, renewal and replacement and related costs of providing FTTH. This financial plan will provide year by year tracking of financial performance and set targets to meet financial and deployment goals for FTTH services. Magellan's business plan will include business risk analyses for key risks across the spectrum of providing FTTH services and the impact that risks have to the financial sustainability of the system over time. The risk analysis will identify controllable and non -controllable risks to help the City understand the tactics that it should be prepared to employ to mitigate risks where possible. This analysis will also give the City insight into the magnitude of each risk and how it should approach its FTTH operation to reduce these impacts over time. Vers.: Aug. 5, 2019 Page 19 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 Task 21. Grant Funding Analysis Magellan will work with the City to assess the funding that may be available to support a FTTH (or fiber backbone) deployment in Palo Alto. Jessica Zufolo, Magellan's VP of Grant Strategies will engage federal, state, and regional agencies to determine applicability of various grant programs to fund a portion of the City's fiber build. Consultant will evaluate programs from Housing and Urban Development, Transportation, Homeland Security and related agencies to determine if grant opportunities exist and if so, assess how they may fit into the City's fiber construction project. If grant opportunities are identified, Magellan will provide the program rules, constraints, timing, and an action plan to the City so it is able to target these funding opportunities. Task 8. Assist City Staff with Construction Bid Evaluation for Fiber Backbone Magellan will advise the City throughout the bid evaluation process for the fiber backbone. Upon receipt of all bids, Magellan will prepare a bid evaluation matrix and tabulation. Magellan will work with the City to review all bids and provide guidance to the City on how bids should be evaluated as well as pros and cons of each bid. Magellan will also review all bid responses to identify any bid irregularities that may be encountered in the review process that could impact long-term project costs. Task 19. Assist City Staff with Construction Bid Evaluation for FTTH Magellan will advise the City throughout the bid evaluation process for FTTH. Upon receipt of all bids, Magellan will prepare a bid evaluation matrix and tabulation. Magellan will work with the City to review all bids and provide guidance to the City on how bids should be evaluated as well as pros and cons of each bid. Magellan will also review all bid responses to identify any bid irregularities that may be encountered in the review process that could impact long-term project costs. Task 22: Final Presentations to UAC and City Council Magellan will make final presentations to the UAC and City Council to inform leadership of the results of the design work, the construction bid evaluations, and the final business plan. Magellan will have their project executives either onsite or available online in real time for these meetings to provide "Executive Level" information on the funding, regulatory issues, and risks. Additional requirements and deliverable details: Task 6: Construction Standards & Methodologies 1. Prepare telecommunication system construction design standards that comply with California Public Utilities Commission (CPUC) General Order 95/Rules for Overhead Electric Line Construction (GO -95), and General Order 128/Construction of Underground Electric Supply and Communication Systems (GO- 128), and relevant CPAU construction requirements as provided by staff; 2. Evaluate the feasibility of underground construction methods (e.g. open trench, directional bore, rock saw, microtrenching, shallow trenching, and other methods the consultant deems Vers.: Aug. 5, 2019 Page 20 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 feasible). This task will be completed in consultation with the Public Works and Utilities Departments. Task 5: Detailed Design & Cost Estimates for Fiber Backbone Deliverables 1. Use the high-level engineering design and cost estimate from Phase 1 to prepare a detailed engineering design and construction cost estimate for fiber expansion to support the AMI implementation plan, SCADA, and wireless field communication for City staff. The engineering design and construction cost estimate for the fiber network expansion should be based on the findings and recommendations developed in Phase 1 and incorporate any available City infrastructure that could decrease the cost and/or accelerate the timeline of the project. These detailed designs and cost estimates should include all costs associated with engineering and construction, including, but not limited to the following: a) Aerial and Underground Outside Plant ("OSP") Engineering i. Include utility pole make-ready and utility pole replacement costs ii. Quality Control/Quality Assurance iii. General OSP Construction Cost iv. Special Crossings v. Backbone and Distribution Plant Splicing vi. Backbone Hub, Termination, and Testing vii. Node Cabinets Task 7 - Prepare Bid Ready Drawings & Bid Packages for the Fiber Backbone Task 8 - Assist City with Construction Bid Evaluation for the Fiber Backbone 1. Prepare a bid -ready construction package for the City's Invitation for Bid ("IFB") document including construction drawings, scope of work, equipment specifications, construction specifications, pole loading calculations, trench route investigations, permitting and easement requirements; 2. Assist staff with the evaluation of the bids responding to the IFB. Task 10 - Prepare Overview of Local, State and Federal Regulatory Issues 1. Provide a detailed summary and analysis of local, state and federal legal and regulatory issues affecting municipal broadband initiatives, including pending legislation, pending litigation and Federal Communications Commission (FCC) rules and regulations that may affect the operation of municipal fiber and/or wireless networks. This task should be completed for review and comment by staff in the City Attorney's office and other staff responsible for regulatory compliance, with the consultant allocating sufficient time for editing and revision based on attorney and staff comments. Task 17 — Detailed Design & Cost Estimates for FTTH 1. Prepare an engineering design and construction cost estimate including approximate timeline for a phased FTTH network deployment incorporating the latest information on the various cross -utilities integration scenarios and information gathered in Phase 3 as described above. Vers.: Aug. 5, 2019 Page 21 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 Task 18 — Prepare Bid Ready Drawings & Bid Package for FTTH Task 19 — Assist with Construction Bid Evaluations for FTTH 1. Prepare a bid -ready construction packet for an Invitation for Bid ("IFB") document, including construction drawings, scope of work, equipment specifications, construction specifications, pole loading calculations, trench route investigations, permitting and easement requirements. 2. Assist staff with the evaluation of the bids responding to the IFB. 3. Note: Network construction and construction management will be solicited via separate RFPs and will engage separate vendors. Dependent on the outcome of the proposed network design, business case, identification of potential public private partnership opportunities, and other findings and recommendations developed in the above- noted tasks under this RFP, the City may issue separate solicitations to engage a construction firm to build the network and another firm to provide construction management services. Issuance of these solicitations would be contingent on City Council approval to proceed. Please reference RFP Section 14 - Firms or Persons Not Eligible to Submit a Proposal. Vers.: Aug. 5, 2019 Page 22 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item lA below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) IA. MASTER AGREEMENT NO. (MAYBE SAME AS CONTRACT/P.O. NO. ABOVE): 1B. TASK ORDERNO.: 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 WB SICIP PHASE 6. CITY PROJECT MANAGER'S NAME & DEPARTMENT: 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: • SERVICES AND DELIVERABLES TO BE PROVIDED • SCHEDULE OF PERFORMANCE • MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) • REIMBURSABLE EXPENSES, if any (with "not to exceed" amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): I hereby authorize the performance of the work described in this Task Order. I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: BY: BY: Name Name Title Title Date Date Vers.: Aug. 5, 2019 Page 23 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 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. For clarity, milestones are shown below both by Task/Phase number and by expected completion date. Milestones by Phase/Task Phase 1: Task 1: Fiber Reconciliation Deliverables Task 2: High -Level Design Deliverables Task 3: Bill of Materials and Cost Estimates: Task 4: Preliminary Phase 1 Report, Presentations and Approval Process Task 9: Local Ordinances Deliverables Phase 3 (combining into Phase 1): Task 11: FTTP Business Case and High -Level Design Deliverables Task 12: Market Assessment Deliverables Task 13: Education, Community Outreach and Surveys Task 14: Partnership Options Task 15: Incorporate Findings into FTTP Business Case Task 16: Final Presentations to UAC & City Council Milestones by Phase/Task Phase 2: Task 5: Detailed Design & Cost Estimates for Fiber Backbone Task 6: Construction standards and methodologies Task 7: Bid -ready construction drawings and bid package for fiber backbone Task 8: Assistance with construction bid evaluation for fiber backbone Task 10: Prepare Overview of Regulatory Issues Phase 4 (combining into Phase 2): Task 13: Education, Community Outreach and Surveys Task 17: Detailed Design & Cost Estimates for FTTH Task 18: Bid -ready construction drawings and bid package for FTTH Task 19: Assistance with construction bid evaluation for FTTH Task 20: Business Plan, Risk Analysis and Pro Formas for FTTH Start June 22, 2020 June 22, 2020 December 3, 2020 January 5, 2021 June 22, 2020 October 5, 2020 October 5, 2020 January 19, 2021 January 19, 2021 March 2, 2021 March 22, 2021 Start May, 2021 May, 2021 October, 2021 March, 2022 May, 2021 May, 2021 May, 2021 April, 2022 June, 2022 May, 2021 End October, 2020 November, 2020 March, 2021 March, 2021 October, 2020 March, 2021 December, 2020 December, 2021 March, 2022 March, 2021 April, 2021 End December, 2021 October, 2021 December, 2021 March, 2022 December, 2021 December, 2021 March, 2022 April, 2022 June, 2022 March, 2022 Vers.: Aug. 5, 2019 Page 24 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 Task 21: Grant Funding Analysis Task 22: Final Presentations to UAC & City Council Milestones by Expected End Date A. Task 9: Local Ordinances Deliverables B. Task 1: Fiber Reconciliation Deliverables C. Task 11: FTTP Business Case and High -Level Design Deliverables D. Task 2: High -Level Design Deliverables E. Task 12: Market Assessment Deliverables F. Task 3: Bill of Materials and Cost Estimates: G. Task 4: Preliminary Phase 1 Report, Presentations and Approval Process H. Task 14: Partnership Options I. Task 13: Education, Community Outreach and Surveys J. Task 15: Incorporate Findings into FTTP Business Case K. Task 16: Final Presentations to UAC & City Council L. Task 6: Construction standards and methodologies M. Task 10: Prepare Overview of Regulatory Issues N. Task 13: Education, Community Outreach & Surveys O. Task 5: Detailed Design & Cost Estimates for Fiber Backbone P. Task 7: Bid -ready construction drawings and bid package for fiber backbone Q. Task 8: Assistance with construction bid evaluation for fiber backbone R. Task 20: Business Plan, Risk Analysis and Pro Formas for FTTH S. Task 21: Grant Funding Analysis T. Task 17: Detailed Design & Cost Estimates for FTTH U. Task 18: Bid -ready construction drawings and bid package for FTTH V. Task 19: Assistance with construction bid evaluation for FTTH W. Task 22: Final Presentations to UAC & City Council May, 2021 June, 2022 Start June 22, 2020 June 22, 2020 October 5, 2020 June 22, 2020 October 5, 2020 December 3, 2020 January 5, 2021 January 19, 2021 January 19, 2021 March 2, 2021 March 22, 2021 May, 2021 May, 2021 May, 2021 May, 2021 October, 2021 March, 2022 May, 2021 May, 2021 May, 2021 April, 2022 June, 2022 June, 2022 March, 2022 July, 2022 End October 5, 2020 October 16, 2020 March 1, 2021 November 30, 2020 December 1, 2020 March 1, 2021 March 1, 2021 March 1, 2021 December 1, 2021 March 19, 2021 April 6, 2021 October, 2021 December, 2021 December, 2021 December, 2021 December, 2021 March, 2022 March, 2022 March, 2022 March, 2022 April, 2022 June, 2022 July, 2022 Vers.: Aug. 5, 2019 Page 25 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 EXHIBIT "C" COMPENSATION The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY's Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $2,649,392 and the total compensation for Additional Services does not exceed $2,914,331. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Phase 1 and Phase 3 A. Task 9: Local Ordinances $28,350 • Draft local ordinances B. Task 1: Fiber Reconciliation $74,760 • Working with all sources of information and data on the fiber optic network including information from the 2016 audit, reconcile the information to: a. Perform a review of as -built project files, engineering data on fiber connections, and fiber network maps to determine individual fiber usage. b. Provide updated records to reflect audited data. c. Provide recommendations for ESRI GIS Platform information. d. Provide advice on the appropriate Fiber Management System (FMS) for the City. C. Task 11: FTTP Business Case and High -Level Design $179,100 D. Task 2: High -Level Design $49,350 • Prepare a high-level design and cost estimate of a fiber optic communication system for AMI, SCADA, and wireless communications for Public Safety, Public Works and Utilities field staff. E. Task 12: Market Assessment $11,550 F. Task 3: Bill of Materials and Cost Estimates $16,800 G. Task 4: Phase 1 Report Presentations and Approval Process $10,500 Vers.: Aug. 5, 2019 Page 26 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 H. Task 14: Partnership Options $21,000 I. Task 13: Education, Community Outreach and Surveys $21,000 J. Task 15: Incorporate Findings into FTTP Business Case $21,000 K. Task 16: Presentations to UAC and City Council $10,500 Phase 2 and Phase 4 L. Task 6: Construction standards and methodologies $17,000 M. Task 10: Prepare Overview of Regulatory Issues $15,750 N. Task 13: Education, Community Outreach & Surveys S30,000 O. Task 5: Detailed Design & Cost Estimates for Fiber Backbone $376,500 P. Task 7: Bid Ready Drawings & Bid Packages for the Fiber Backbone $10,800 Q. Task 8: Construction Bid Evaluations for the Fiber Backbone $9,500 R. Task 20: Business Plan, Risk Analysis and Pro Formas for FTTH $65,000 S. Task 21: Grant Funding Analysis $21,000 T. Task 17: Detailed Design & Cost Estimates for FTTH $1,580,700 U. Task 18: Bid Ready Drawings & Bid Package for FTTH $10,800 V. Task 19: Construction Bid Evaluations for FTTH $19,500 W. Task 22: Final Presentations to UAC & City Council $10,500 Sub -total Basic Services $2,610,960 Reimbursable Expenses $38,432 Total Basic Services and Reimbursable Expenses $2,649,392 Additional Services (Not to Exceed) $264,939 Maximum Total Compensation $2,914,331 REIMBURSABLE EXPENSES Vers.: Aug. 5, 2019 Page 27 of 28 DocuSign Envelope ID: 6AAD57C9-B5DD-47A5-A8BA-8A66BC164BA0 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: Travel A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel and meal expenses for City of Palo Alto employees. All requests for payment of expenses shall be accompanied by appropriate backup information. All expenses shall be approved in advance by the CITY's project manager. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY's project manager's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. Vers.: Aug. 5, 2019 Page 28 of 28 CVTY 0 PALO ALTO City of Palo Alto (ID # 12322) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: Contract Approval for Green Building and Sustainability Services Title: Approval of Contract Number C21181223A With Integrated Design 360, LLC. and Approval of Contract Number C21181223B With Integral Group Holdings, LLC. for a Shared Not -to -Exceed Amount of $750,000, to Provide Sustainability Services for Green Building, Energy Reach Code, and the Sustainability Climate Action Plan for a Term of Three -years through June 2024. From: City Manager Lead Department: Planning and Development Services Recommendation: Staff recommends that the City Council approve and authorize the City Manager or their designee to execute contract C21181223A with Integrated Design 360, LCC. and contract C21181223B with Integral Group Holdings, LLC. for a shared amount not to exceed $750,000 for a three-year term, for sustainability services related to green building, energy reach code, and sustainability climate action plan. Background On April 1, 2020, the City issued Request for Proposal (RFP) #181223 for sustainability services related to green building, energy reach code and Sustainability Climate Action Plan. Two firms responded to the RFP: Integrated Design 360, LCC and Integral Group Holdings, LLC. Staff reviewed proposals, conducted interviews, and determined to award the contract to both firms based on strengths and expertise in different areas. The City has used the services of Integrated Design 360, LCC since 2014. On June 22, 2020, City Council approved a contract amendment with Integrated Design 360, LCC through Staff Report #11337 (link). Staff Report #11337 provides further background about the City's historic contracts with Integrated Design 360, LCC. The City has not used the services of Integral Group Holdings, LLC. Discussion City of Palo Alto Page 1 The City has used outside consultants to administer the green building, energy reach code, and sustainability climate action plan activities since 2014. Outside consultants bring additional resources, specific technical knowledge to augment City staff and provide scaling up/down agility. The RFP issued this fiscal year focused on management, implementation, technical assistance for applicants, monitoring, and providing analysis related to the green building ordinance, and energy reach code programs. Additionally, the RFP requested assistance with the residential and commercial special inspector program. Finally, the RFP requested support services related to the sustainability climate action plan. Specific scope of services details can be viewed in the attached contracts within Exhibit A. The scopes for both firms are identical and staff will issue work orders to direct the consultant activity and ensure tasks are within City Council approved funding. No work will be commenced under these two contracts unless funding is available within the annual Adopted Operating Budget. Since the total contract authority will be shared between the two firms, staff will closely monitor the usage of the contracts to ensure the combined work assigned does not exceed $750,000 over the next three years. Resource Impact Funding for these contracts is included in the Fiscal Year (FY) 2022 Proposed operating budgets for respective departments. Funding for FY 2022 and beyond is subject to City Council approval of the annual appropriation of funds through the budget process. The services will mainly be used by Planning and Development Services, but Utilities and Public Works departments may also issue and fund task orders as it relates to implementation of sustainability goals. The use of contract services is contingent on the availability of funding in the respective department's approved budget. These contracts are on the City's professional services template, which permits the City to terminate without cause/for convenience by providing written notice to the contractor. In the event the City finds itself facing an even more challenging budget situation, and it is determined that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include termination due to non -appropriation of funds or amending the contract upon mutual agreement to reduce the cost, for example, by reducing the scope of work. The contract may also be temporarily suspended by written notice of the City Manager. Stakeholder Engagement The Planning & Development Services Department coordinates with other City departments on a regular basis with regards to the development review process and implementation of the sustainability climate action plan. Prospective contracting stakeholders were inviting to respond to the RFP portion of the procurement process. Environmental Review City of Palo Alto Page 2 The recommendation in this report does not constitute a project requiring review under the California Environmental Quality Act (CEQA). Attachments: • Attachment A: Contract with Integrated Design 360, LLC. _C21181223A • Attachment B: Contract with Integral Group Holdings, LLC._C21181223B City of Palo Alto Page 3 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 CITY OF PALO ALTO CONTRACT NO. C21181223A AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND INTEGRATED DESIGN 360, LLC. dba ID360 This Agreement for Professional Services (this "Agreement") is entered into as of the 14th day of May, 2021 (the "Effective Date"), by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and INTEGRATED DESIGN 360, LLC. dba ID360, a California corporation, located at 809 Laurel Street, #308, San Carlos, California 94070 ("CONSULTANT"). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to develop programs related to overall sustainability efforts (the "Project") and desires to engage a consultant to provide professional services for programs such as, but not limited to, green building, energy reach code, and sustainability climate action plan 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. VI Optional On -Call Provision (This provision only applies if checked and only applies to on -call agreements.) CITY may elect to, but is not required to, authorize on -call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation). CONSULTANT shall provide on -call Services only by advanced, written authorization from CITY as detailed in this Section. On -call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY's Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1 entitled "PROFESSIONAL SERVICES TASK ORDER". City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 1 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 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 on -call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY's Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter -signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on -call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on -call Services are subject to all requirements and restrictions in this Agreement. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 30, 2024 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled "SCHEDULE OF PERFORMANCE". Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY' s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled "COMPENSATION," including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Seven Hundred Fifty Thousand Dollars ($750,000). This is an aggregate amount over the term and distributed between two contracts C21181223A and C21181223B, of which this is one. The two contracts will be administered by the CITY's PLANNING AND DEVELOOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein. 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. 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 City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 2 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 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. 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 City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 3 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 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. CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Melanie Jacobson 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 George Hoyt, Planning and Development Services Department, Palo Alto, CA, 94301, Telephone: (650) 329-2368. 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 originally 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 original 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. City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 4 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 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 demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney's fees, experts fees, court costs and disbursements ("Claims")resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT's Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under 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 City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 5 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY's Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT's receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will 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 City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 6 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. 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 City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 7 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act ("ADA"), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY's Environmentally Preferred Purchasing policies which are available at CITY's Purchasing Department, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY' s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double -sided and printed on a minimum of 30% or greater post -consumer content paper, unless otherwise approved by CITY's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post -consumer material and printed with vegetable -based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY's Environmental Purchasing Policy including but not limited to Extended 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 MINIMUlVI 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. City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 8 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 SECTION 25. NON -APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. 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 City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 9 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT's possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions. 29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys' fees paid to third parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 10 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time. 29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT's proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT's proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. 29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: ® EXHIBIT A: SCOPE OF SERVICES ® EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER ® EXHIBIT B: SCHEDULE OF PERFORMANCE • EXHIBIT C: COMPENSATION ® EXHIBIT C-1: SCHEDULE OF RATES • EXHIBIT D: INSURANCE REQUIREMENTS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 11 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 CONTRACT No. C21181223A SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written. CITY OF PALO ALTO CONSULTANT: INTEGRATED DESIGN 360, LLC dba ID360 City Manager APPROVED AS TO FORM: City Attorney or designee OffieUrt 'c 1Signed by: By: wtt laa.it, jgbl9Sat, Name-wi lie$ P45 a c o b s o n Title: Principal Offi 2.,-Ottttiaired for Corp. or LLC) By: Cik, Nam . ei2ady5Finavk. Title: Administrative Leader City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 12 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled "SCOPE OF SERVICES". CONSULTANT shall provide professional services for CITY departments focusing on programs related to the overall sustainability efforts. Programs include but not limited to green building, energy reach code, and sustainability climate action plan. The CONSULTANT shall manage these programs within the policy framework set forth by the CITY and act with independent judgement to ensure deliverables are met in accordance with the terms of this exhibit. Tasks: • Task 1 - Ongoing Development and Administration of the Green Building and Energy Reach Code Program • Task 2 - Sustainability and Program Metrics Management and Reporting • Task 3 - Green Building and Energy Reach Code Training • Task 4 - Green Building and Energy Reach Code Policy Review and Creation • Task 5 - Ongoing Development and Administration of the Green Building Special Inspector Program • Task 6 - Sustainability Implementation Plan Support Task 1— Ongoing Development and Administration of the Green Building and Energy Reach Code Program Examples of these tasks may include items listed below: • Green Building and Energy Code Technical Assistance for staff and project applicants. Focused on the City's Green Building and Energy Reach Program and energy policies, compliance processes, forms, handouts associated with planning entitlement, plan check, inspection, and green building special inspection activities. Subject areas include the statewide California Green Building Code, the California Energy Code, and referenced standards and relevant municipal codes. • Program Efficiency Improvement — Provide suggestions to management for process improvements. • Establish goals and provide updates. Adjust technical assistance and outreach content based on state and local changes to codes, policies, staff processes, and management goals. • Planner Quality Control — Perform a monthly quality control review of five percent of planning entitlements that trigger the green building and energy reach code requirements to verify the conditions are applied appropriately. • Plan Checker Quality Control — Perform a monthly quality control review of five percent of permit applications that trigger the green building and energy reach code requirements to verify the triggers are being applied appropriately and that the requirements are being implemented. • Inspector Quality Control — Perform a monthly quality control review of five percent of Green Building inspections to verify the triggers are being applied appropriately and that the requirements are being implemented. City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 13 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 • Develop clearly defined guidelines that are user friendly to help the applicant through the process from start to finish. These guidelines will be readily accessible on the City's Green Building web page and as handouts. • Develop tutorial -based videos explaining the Green Building process including, requirements, forms, timelines, inspections, etc. Task 2 - Sustainability and Program Metrics Management and Reporting Provide detailed quantitative analysis that measure how effective the City's Green Building and Energy Reach Program: • Building Performance Database - Data entry and management for statistics and annual report. Compile Green Building and Energy Reach metrics from building permit applications. • Performance Report - Compile standard report for fiscal year data for Green Building and Energy Reach for annual Performance and SEA Report. • Earth Day Report — Compile standard report for fiscal year data for Annual Earth Day Report. Task 3 - Green Building and Energy Reach Code Training • Perform two public trainings per year on the Green Building and Energy Reach Program and compliance requirements. • Perform four staff trainings per year on the Green Building and Energy Reach Program and enforcement requirements. • Perform an annual half -day training for Green Building Special Inspectors on enforcement procedures. Task 4 — Green Building and Energy Reach Code Policy Review and Creation • Work collaboratively with the City in the review and creation of new Green Building and Energy Reach codes. Task 5 — Ongoing Development and Administration of the Green Building Special Inspector Program • Program implementation shall include, at a minimum: executing open enrollment; training new inspectors; education and outreach; and biannual progress reports and associated metrics. Task 6 - Sustainability Implementation Plan Support Support staff in completing task items on the Sustainability Implementation Plan (SIP) mainly in the areas of Electrification and Water Conservation. City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 14 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item lA below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAYBE SAME AS CONTRACT/ P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $ 5. BUDGET CODE COST CENTER COST ELEMENT WBS/CIP PHASE 6. CITY PROJECT MANAGER'S NAME & DEPARTMENT: 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: • SERVICES AND DELIVERABLES TO BE PROVIDED • SCHEDULE OF PERFORMANCE • MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) • REIMBURSABLE EXPENSES, if any (with "not to exceed" amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): I hereby authorize the performance of the work described in this Task Order. I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: BY: BY: Name Name Title Title Date Date City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 15 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 EXHIBIT B SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed ("NTP") from the CITY. Tasks Description Completion Number of Days/Weeks (as specified below) from NTP Task 1 Ongoing Development and Administration of the Green Building and Energy Reach Code Program June 30, 2024 Task 2 Sustainability and Program Metrics Management and Reporting June 30, 2024 Task 3 Green Building and Energy Reach Code Training June 30, 2024 Task 4 Green Building and Energy Reach Code Policy Review and Creation June 30, 2024 Task 5 Ongoing Development and Administration of the Green Building Special Inspector Program June 30, 2024 Task 6 Sustainability Implementation Plan Support June 30, 2024 VI 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. C21181223A Rev. Dec.15, 2020 Page 16 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 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 TASK NOT TO EXCEED AMOUNT Task 1 to Task 6 $750,000.00 Sub -total for Services $750,000.00 Reimbursable Expenses (if any) $0.00 Total for Services and Reimbursable Expenses $750,000.00 Additional Services (if any, per Section 4) $0.00 Maximum Total Compensation $750,000.00 REIMBURSABLE EXPENSES CONSULTANT'S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not -to -exceed amount of: $0.00. City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 17 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT's schedule of rates is as follows: ID360 Rates: Position/Title FY2022 Rates FY2023 Rates FY2024 Rates Principal $205.00 $212.00 $218.00 Program Manager $168.00 $173.00 $178.00 Project Manager II $130.00 $134.00 $138.00 Project Manager I $107.00 $110.00 $113.00 Technician $91.00 $93.00 $96.00 City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 18 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 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 BODILY INJURY $1,000,000 $1,000,000 PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET PROPERTY DAMAGE $1,000,000 $1,000,000 CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY $1,000,000 $1,000,000 LIABILITY DAMAGE COMBINED. BODILY INJURY $1,000,000 $1,000,000 - EACH PERSON $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, EACH OCCURRENCE $1,000,000 $1,000,000 INCLUDING ALL OWNED, HIRED, NON -OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN ALL DAMAGES $1,000,000 APPLICABLE), AND NEGLIGENT PERFORMANCE YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT'S AGREEMENT TO INDEMNIFY CITY. H. 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 Contract No. C21181223A Professional Services Rev. Dec.15, 2020 Page 19 of 20 DocuSign Envelope ID: A146679B-184E-42EF-8A71-69D7A68D6E52 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://W W W.PLANETBIDS.COM/PORTAL/PORTAL. CFM? COMPANYI D=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET BIDS HOW TO.ASP City of Palo Alto Professional Services Contract No. C21181223A Rev. Dec.15, 2020 Page 20 of 20 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 CITY OF PALO ALTO CONTRACT NO. C21181223B AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND INTEGRAL GROUP, INC. This Agreement for Professional Services (this "Agreement") is entered into as of the 14th day of May, 2021 (the "Effective Date"), by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and INTEGRAL GROUP, INC., a California corporation, located at 427 13th Street, Oakland, California 94612 ("CONSULTANT"). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to develop programs related to overall sustainability efforts (the "Project") and desires to engage a consultant to provide professional services for programs such as, but not limited to, green building, energy reach code, and sustainability climate action plan in connection with the Project (the "Services", as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled "SCOPE OF SERVICES". NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. N Optional On -Call Provision (This provision only applies if checked and only applies to on -call agreements.) CITY may elect to, but is not required to, authorize on -call Services up to the maximum compensation amount set forth in Section 4 (Not to Exceed Compensation). CONSULTANT shall provide on -call Services only by advanced, written authorization from CITY as detailed in this Section. On -call Services, if any, shall be authorized by CITY, as needed, with a Task Order assigned and approved by CITY's Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1 entitled "PROFESSIONAL SERVICES TASK ORDER". Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 1 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 Compensation for on -call Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY's Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter -signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation due to CONSULTANT for all Task Orders issued under this Agreement shall not exceed the amount of compensation set forth in Section 4. CONSULTANT shall only be compensated for on -call Services performed under an authorized Task Order and only up to the maximum compensation amount set forth in Section 4. Performance of and payment for any on -call Services are subject to all requirements and restrictions in this Agreement. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 30, 2024 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled "SCHEDULE OF PERFORMANCE". Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY' s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled "COMPENSATION," including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Seven Hundred Fifty Thousand Dollars ($750,000). This is an aggregate amount over the term and distributed between two contracts C21181223A and C21181223B, of which this is one. The two contracts will be administered by the CITY's PLANNING AND DEVELOOPMENT SERVICES to ensure the total aggregate of compensation paid over the Term does not exceed the amounts set forth herein. The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled "SCHEDULE OF RA I'ES." 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. 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. City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 2 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 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, the costs of corrections of 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, arising from or caused by CONSULTANT's errors and omissions that fail to meet: the standard set out in Section 6, the requirements set forth in the Scope of Services (Exhibit A) of this Agreement, or any Task Order issued under this Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY's stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers' compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT's performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 3 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 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. CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Brenden McEneaney 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 George Hoyt, Planning and Development Services Department, Palo Alto, CA, 94301, Telephone: (650) 329-2368. 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. City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 4 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 Methodologies, process know-how and other instruments of service used to prepare the work products shall remain the property of CONSULTANT; however, CONSULTANT grants City a perpetual license for any methodologies, process know-how, and other instruments of service that are integral to work product prepared by CONSULTANT under this Agreement Any modification or reuse of the work products without written verification or adaptation by Consultant for the specific purpose intended will be at the CITY's sole risk and without liability or legal exposure to CONSULTANT or to CONSULTANT's subcontractors and subconsultants. 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 demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney's fees, experts fees, court costs and disbursements ("Claims") resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT's Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under 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. City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 5 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled "INSURANCE REQUIREMENTS". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A -:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY' s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days' notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT's receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will 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). City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 6 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. 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 City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 7 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person's race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act ("ADA"), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY's Environmentally Preferred Purchasing policies which are available at CITY's Purchasing Department, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY's Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double -sided and printed on a minimum of 30% or greater post -consumer content paper, unless otherwise approved by CITY's Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post -consumer material and printed with vegetable -based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY's Environmental Purchasing Policy including but not limited to Extended 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 City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 8 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON -APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. 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, City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 9 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement. 28.2. "Confidential Information" means all data, information (including without limitation "Personal Information" about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT's possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions. 29.2. In the event that an action is brought, the parties agree that trial of such 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 City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 10 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys' fees paid to third parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time. 29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT's proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT's proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. 29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: ® EXHIBIT A: SCOPE OF SERVICES ® EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER ® EXHIBIT B: SCHEDULE OF PERFORMANCE ® EXHIBIT C: COMPENSATION EXHIBIT C-1: SCHEDULE OF RATES IZI EXHIBIT D: INSURANCE REQUIREMENTS 1 THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 11 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 CONTRACT No. C21181223B SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written. CITY OF PALO ALTO CONSULTANT: INTEGRAL GROUP, INC. City Manager APPROVED AS TO FORM: City Attorney or designee Of ce>F°lusigned by: By: 1jVt.In.D6, AtttAktuALAI Na ciNsgtiMe144P4cEneaney Title: Pri nci pal Of po2si(Rcuired for Corp. or LLC) By A44444T Na :smolppAcF ber Title: Managing Principal City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 12 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled "SCOPE OF SERVICES". CONSULTANT shall provide professional services for CITY departments focusing on programs related to the overall sustainability efforts. Programs include but not limited to green building, energy reach code, and sustainability climate action plan. The CONSULTANT shall manage these programs within the policy framework set forth by the CITY and act with independent judgement to ensure deliverables are met in accordance with the terms of this exhibit. Tasks: • Task 1 - Ongoing Development and Administration of the Green Building and Energy Reach Code Program • Task 2 - Sustainability and Program Metrics Management and Reporting • Task 3 - Green Building and Energy Reach Code Training • Task 4 - Green Building and Energy Reach Code Policy Review and Creation • Task 5 - Ongoing Development and Administration of the Green Building Special Inspector Program • Task 6 - Sustainability Implementation Plan Support Task 1— Ongoing Development and Administration of the Green Building and Energy Reach Code Program Examples of these tasks may include items listed below: • Green Building and Energy Code Technical Assistance for staff and project applicants. Focused on the City's Green Building and Energy Reach Program and energy policies, compliance processes, forms, handouts associated with planning entitlement, plan check, inspection, and green building special inspection activities. Subject areas include the statewide California Green Building Code, the California Energy Code, and referenced standards and relevant municipal codes. • Program Efficiency Improvement — Provide suggestions to management for process improvements. • Establish goals and provide updates. Adjust technical assistance and outreach content based on state and local changes to codes, policies, staff processes, and management goals. • Planner Quality Control — Perform a monthly quality control review of five percent of planning entitlements that trigger the green building and energy reach code requirements to verify the conditions are applied appropriately. • Plan Checker Quality Control — Perform a monthly quality control review of five percent of permit applications that trigger the green building and energy reach code requirements to verify the triggers are being applied appropriately and that the requirements are being implemented. • Inspector Quality Control — Perform a monthly quality control review of five percent of Green Building inspections to verify the triggers are being applied appropriately and that the requirements are being implemented. City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 13 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 • Develop clearly defined guidelines that are user friendly to help the applicant through the process from start to finish. These guidelines will be readily accessible on the City's Green Building web page and as handouts. • Develop tutorial -based videos explaining the Green Building process including, requirements, forms, timelines, inspections, etc. Task 2 - Sustainability and Program Metrics Management and Reporting Provide detailed quantitative analysis that measure how effective the City's Green Building and Energy Reach Program: • Building Performance Database - Data entry and management for statistics and annual report. Compile Green Building and Energy Reach metrics from building permit applications. • Performance Report - Compile standard report for fiscal year data for Green Building and Energy Reach for annual Performance and SEA Report. • Earth Day Report — Compile standard report for fiscal year data for Annual Earth Day Report. Task 3 - Green Building and Energy Reach Code Training • Perform two public trainings per year on the Green Building and Energy Reach Program and compliance requirements. • Perform four staff trainings per year on the Green Building and Energy Reach Program and enforcement requirements. • Perform an annual half -day training for Green Building Special Inspectors on enforcement procedures. Task 4 — Green Building and Energy Reach Code Policy Review and Creation • Work collaboratively with the City in the review and creation of new Green Building and Energy Reach codes. Task 5 — Ongoing Development and Administration of the Green Building Special Inspector Program • Program implementation shall include, at a minimum: executing open enrollment; training new inspectors; education and outreach; and biannual progress reports and associated metrics. Task 6 - Sustainability Implementation Plan Support Support staff in completing task items on the Sustainability Implementation Plan (SIP) mainly in the areas of Electrification and Water Conservation. City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 14 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item lA below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAYBE SAME AS CONTRACT/ P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $ 5. BUDGET CODE COST CENTER COST ELEMENT WBS/CIP PHASE 6. CITY PROJECT MANAGER'S NAME & DEPARTMENT: 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: • SERVICES AND DELIVERABLES TO BE PROVIDED • SCHEDULE OF PERFORMANCE • MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) • REIMBURSABLE EXPENSES, if any (with "not to exceed" amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): I hereby authorize the performance of the work described in this Task Order. I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: APPROVED: CITY OF PALO ALTO COMPANY NAME: BY: BY: Name Name Title Title Date Date City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 15 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 EXHIBIT B SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed ("NTP") from the CITY. Tasks Description Completion Number of Days/Weeks (as specified below) from NTP Task 1 Ongoing Development and Administration of the Green Building and Energy Reach Code Program June 30, 2024 Task 2 Sustainability and Program Metrics Management and Reporting June 30, 2024 Task 3 Green Building and Energy Reach Code Training June 30, 2024 Task 4 Green Building and Energy Reach Code Policy Review and Creation June 30, 2024 Task 5 Ongoing Development and Administration of the Green Building Special Inspector Program June 30, 2024 Task 6 Sustainability Implementation Plan Support June 30, 2024 VI 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. C21181223B Rev. Dec.15, 2020 Page 16 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 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 TASK NOT TO EXCEED AMOUNT Task 1 to Task 6 $720,000.00 Sub -total for Services $720,000.00 Reimbursable Expenses (if any) $30,000.00 Total for Services and Reimbursable Expenses $750,000.00 Additional Services (if any, per Section 4) $0.00 Maximum Total Compensation $750,000.00 REIMBURSABLE EXPENSES CONSULTANT'S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed up to the not -to -exceed amount of: $30,000.00. A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto's policy for reimbursement of travel and meal expenses. City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 17 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 18 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT's schedule of rates is as follows: Integral Group, Inc. Rates: Position/Title Rates Managing Principal $340.00 Principal $300.00 Associate Principal $200.00 Associate $185.00 Senior Engineer/Consultant $170.00 Intermediate Engineer/Consultant $145.00 Junior Engineer/Consultant $130.00 Project Administrator $95.00 City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 19 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 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 BODILY INJURY $1,000,000 $1,000,000 PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET PROPERTY DAMAGE $1,000,000 $1,000,000 CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY $1,000,000 $1,000,000 LIABILITY DAMAGE COMBINED. BODILY INJURY $1,000,000 $1,000,000 - EACH PERSON $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, EACH OCCURRENCE $1,000,000 $1,000,000 INCLUDING ALL OWNED, HIRED, NON -OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE, COMBINED YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN ALL DAMAGES $1,000,000 APPLICABLE), AND NEGLIGENT PERFORMANCE YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT'S AGREEMENT TO INDEMNIFY CITY. H. 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 Contract No. C21181223B Professional Services Rev. Dec.15, 2020 Page 20 of 21 DocuSign Envelope ID: 3E76F9D8-457C-4968-9472-6CA754952F91 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://W W W.PLANETBIDS.COM/PORTAL/PORTAL.CFM? COMPANYI D=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET BIDS HOW TO.ASP City of Palo Alto Professional Services Contract No. C21181223B Rev. Dec.15, 2020 Page 21 of 21 CVTY 0 PALO ALTO City of Palo Alto (ID # 12329) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: Approval of a Contract for Municipal Service Center A, B, & C Reroof Title: Approval of Construction Contract Number C21181691 With Best Contracting Services, Inc. in the Amount of $1,710,000, and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not -to - Exceed Amount of $171,000, for the Municipal Service Center A, B, & C Roof Replacement Project, Capital Improvement Program Project PF-17000 From: City Manager Lead Department: Public Works Recommendation Staff recommends that the City Council: 1. Approve and authorize the City Manager or their designee to execute a construction contract with Best Contracting Services Inc. (Contract No. C21181691.) in the amount of $1,710,000 for Municipal Service Center A, B, & C Roof Replacement, Capital Improvement Program Project PF-17000; and 2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the construction contract with Best Contracting Services, Inc. for related, additional but unforeseen work which may develop during the project, the total value of which shall not exceed $171,000. (The contract is linked for ease of reference due to the volume of pages.) Background The existing Municipal Service Center roofs on Buildings A, B, & C have been in service for 25 years and are exhibiting signs of severe wear, including leaks. To avoid the potential for more serious leaks than experienced to date, structural damage to the buildings, and the potential need for a complete roofing system replacement, staff has determined that the roofs must be rehabilitated. Discussion The existing bituminous roof is nearing the end of its useful life and needs to be rehabilitated. The project will place a fluid, reinforced waterproofing application over the existing roofs. If City of Palo Alto Page 1 the existing roof deteriorates beyond a certain point, the fluid applied system cannot be utilized, and a full removal and replacement of the roofing system would be required at a greater cost. The application meets current cool roofing codes to optimize energy efficiency and is expected to extend the useful life of the roof for approximately 25 years. Bid Process On May 11, 2021, a notice inviting formal bids for the Municipal Service Center A, B, & C Roof Replacement project was posted on the PlanetBids website. The bidding period was 23 days. Bids were received from eight qualified contractors on June 2, 2021, as listed on the attached Bid Summary (Attachment A). Table 1: Summary of Bid Process BID NAME/NUMBER PROPOSED LENGTH OF PROJECT NUMBER OF BIDS MAILED TO CONTRACTORS NUMBER OF WEBSITES NUMBER OF BIDS MAILED TO BUILDER'S EXCHANGES TOTAL DAYS TO RESPOND TO BID MANDATORY PRE -BID MEETING NUMBER OF COMPANY ATTENDEES AT PRE -BID MEETING NUMBER OF BIDS RECEIVED: BID PRICE RANGE MUNICIPAL SERVICE CENTER A, B, & C ROOF REPLACEMENT PROJECT, CAPITAL IMPROVEMENT PROGRAM PROJECT PF-17000 /IFB #181691 120 calendar days 26 1 (PlanetBids) 8 23 May 20, 2021 at 9:30 A.M. 19 8 $1,700,000 — $2,380,500 Staff has reviewed all bids submitted and recommends that the base bid of $1,700,000 submitted by Best Contracting Services, Inc. be accepted and that Best Contracting Services, Inc. be declared the lowest responsible bidder. The low bid is six percent below the engineer's estimate of $1,800,000. Staff also recommends awarding additive alternates 1, 2, and 3 totaling $10,000. The change order amount of $171,000 (which equals 10 percent of the total contract) is requested for related, additional but unforeseen work which may develop during the project. Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff also contacted the listed references for Best Contracting Services, Inc. and found that they have performed satisfactorily on past construction projects for other clients. 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 determined that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include termination due to non -appropriation of funds or amending the contract to reduce the cost, for example, by reducing the scope of work. City of Palo Alto Page 2 If not awarded, staff would not pursue this work and the facility roofing would continue to deteriorate, making this strategy unavailable when the roof reaches a state of greater disrepair. This would result in the need to complete a full replacement, which is expected to cost more than this approach as noted earlier. Timeline Once the contract is approved, the Notice to Proceed will be issued. Staff anticipates the installation process to take approximately four months. Resource Impact Funding for the Municipal Service Center A, B, & C Roof Replacement Project is available in the Fiscal Year 2021 Adopted Budget for the Capital Improvement Program project PF-17000. Policy Implications This project aligns with the City's Policy C-3.2 to reinvest in aging facilities to improve their usefulness and appearance. Stakeholder Engagement The Municipal Service Center A, B, & C Roof Replacement Project has been coordinated with the user groups at the MSC: Utilities, Public Works, Administrative Services, and Community Services Departments. Environmental Review This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15301 of the CEQA Guidelines as repair, maintenance and/or minor alteration of existing facilities and no further environmental review is necessary. Attachments: • Attachment A - Bid Summary City of Palo Alto Page 3 ATTACHMENT A - BID TABULATION BID RESULTS FOR MUNICIPAL SERVICE CENTER BUILDINGS A, B, & C ROOF REPLACEMENT PROJECT (IFB 181691) INVITATION FOR BID (IFB) ISSUED ON 05/11/2021 BID DUE ON 06/2/2021 3:00 PM PST BID ITEM DESCRIPTION Unit of Measure Qty AICaI Specialty Contracting, Inc. Andy's Roofing Co, Inc. Best Contracting Services, Inc. (Lowest Responsible Bidder) Courtney, Inc. ERC Roofing Pioneer Contractors, Inc. State Roofing Co, Inc. Stronger Building Services, Inc. Base Bid Buildings A, B, & C as a Turn -Key Project LS 1 $2,202,545 $1,902,600 $1,700,000 $2,232,944 $2,166,000 $2,304,500 $2,160,358 $2,380,500 Engineer Estimate LS 1 $1,800,000 $1,800,000 $1,800,000 $1,800,000 $1,800,000 $1,800,000 $1,800,000 $1,800,000 Percent Difference 18% 5% -6% 19% 17% 22% 17% 24% Additive Alternate Bids 1 Remove & Repair Unused Curbs LS 1 $15,502 $31,106 $2,500 $14,805 $49,000 $8,400 $4,988 $50,000 2 Roof Under Wood Sleepers LS 1 $7,832 $8,241 $1,500 $8,750 $15,000 $9,200 $3,796 $30,000 3 Use KnuckleHead Supports LS 1 Excluded $9,995 $6,000 $5,400 $42,000 $15,800 $16,485 $48,000 Deductive Alternate Bids $23,334 $49,342 $10,000 $28,955 $106,000 $33,400 $25,269 $128,000 1 Building A LS 1 $714,008 $552,800 $453,000 $709,800 $678,000 $706,000 $666,706 $793,500 2 Building B LS 1 $603,836 $501,600 $545,000 $637,720 $589,000 $657,800 $600,847 $621,000 3 Building C LS 1 $884,701 $848,200 $702,000 $885,424 $899,000 $940,700 $892,805 $966,000 $2,202,545 $1,902,600 $1,700,000 $2,232,944 $2,166,000 $2,304,500 $2,160,358 $2,380,500 Notes: 1. Determination of Lowest Bid - The lowest bid shall be the lowest Base Bid without consideration of the prices on the Additive and Deductive Alternate items. CVTY 0 PALO ALTO City of Palo Alto (ID # 12334) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: Development Center Lease Amendment at 285 Hamilton Avenue Title: Approval of a Lease Amendment Between 285 Hamilton LLC, and the City of Palo Alto for the Premises Located at 285 Hamilton Avenue for a 48 - month Term, at a Starting Base Rent of $43,890 per Month and Increasing 3 Percent Annually From: City Manager Lead Department: Administrative Services Recommended Motion Staff recommends that Council authorize the City Manager or their designee to execute the Seventh Amendment to Office Lease contained in Attachment A, between 285 Hamilton LLC, and the City of Palo Alto, for office space located at 285 Hamilton Avenue, Suite 100. The amendment is for a 48 -month term commencing on February 1, 2022 through January 31, 2026. The initial base rent is $43,891 per month and increases 3% annually. The base rent represents an approximate 20% decrease from the current base rent paid. Executive Summary The City currently leases approximately 6,361 square feet from 285 Hamilton LLC, at 285 Hamilton Avenue, Suite 100 for use by Planning and Development Services. Staff negotiated an amendment to the current lease with an approximate 20% reduction to the current base rental rate from $8.61 per square foot to $6.90 per square foot. Otherwise, the general terms remain the same as previously agreed to. The renewal of this lease will allow Planning and Development Services to meet its goal of helping customers build safe, healthy, and sustainable buildings that comply with applicable codes and regulations, while ensuring the safety of City staff. Background Planning and Development Services is currently operating out of the three locations listed below. Address Expiration Date Square Footage 285 Hamilton Avenue 1/31/2022 6,361 City of Palo Alto Page 1 526 Bryant Street 1/31/2023 3,076 City Hall — 5th Floor N/A 4,388 Total 13,825 5t' Floor square footage is only 75% of the total since the floor is shared with Transportation. It also excludes elevator and restroom area. The premises at 285 Hamilton Avenue, Suite 100, contain 6,361 square feet of building area and is on the ground floor of an approximate 48,585 square foot multitenant office building that was constructed in 1971. The agreement does not include use of any onsite parking, but the property is located across the street from City Hall and roughly half a block southeast of additional leased space 526 Bryant Street. The City has been leasing 285 Hamilton Avenue since 1998 for use by Development Services. Currently, the main services for Development Services operate out of this location and will allow for continued in -person customer service as permitted. As part of the reduction in space for the 526 Bryant Street lease, 285 Hamilton Avenue will also be housing fire plan check services, who were previously location on the 2nd floor of 526 Bryant Street. Between the three locations, Planning and Development Services will meet the requirements for current usage and staffing levels. (Prior Lease Amendment) Discussion Staff has negotiated a Seventh Amendment to Office Lease with the basic provisions listed below: • Initial term: 48 months commencing on February 1, 2022 and expiring on January 31, 2026. • Extension options: Two options to extend for additional one-year periods. • Monthly base rent: $43,890.90 per month, increasing 3% annually. • Operating expenses: City is responsible for a portion of operating expenses (such as taxes, insurance, maintenance and repair, janitorial, and utilities), currently estimated at $8,597.00 per month. Staff is requesting an extension at this time because it provides the necessary space for continuity of operations. The term reflects a negotiated balance between the City's interest in flexibility and the owner's interest in certainty. Adjustments in space planning for City facilities, for example occupancy of the new Public Safety Building, will be brought forward in the future and this timing allows for those activities. Staff led by the Public Works Department will begin more in-depth space planning for changing business models and needs of departments during FY 2022. The recommended term is expected to provide sufficient time for planning, design, and any needed construction to be completed at the current police building prior to the end of this lease. City of Palo Alto Page 2 Timeline The current lease at 285 Hamilton Avenue, Suite 100, expires on January 31, 2022 and this amendment is scheduled to commence on February 1, 2022. Resource Impact The current base rent to lease 285 Hamilton Avenue, Suite 100, is $54,773.29 per month or $8.61 per square foot. Staff has negotiated a rent reduction of approximately 20% to $43,890.90 or $6.90 per square foot upon start of the amended term. The rent will then increase 3% annually. The negotiated reduction in rent in the current uncertain COVID-19 influenced environment results in a net savings of approximately $426,000 from the current base rent over the 4 -year term of the lease. Current operating expenses are estimated at $8,597.00 per month. The current rental costs are included in the FY 2022 Proposed Operating Budget and subject to City Council approval. No additional funding is required at this time. Policy Implications This recommendation does not present any changes to existing City policies. Stakeholder Engagement The Real Estate Division of the Administrative Services Department met with Planning and Development Services to determine their real estate needs. Various options were considered including searching for alternative spaces to lease as well as moving into property owned by the City. Planning and Development Services determined that the most optimal option to provide functionality and continuity in service was to extend their current lease at 285 Hamilton Avenue. Real Estate Division staff engaged with the landlord to reduce the base rent. Environmental Review Approval of this lease amendment is exempt from review under the California Environmental Quality Act (CEQA) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment (CEQA Guidelines Section 15061(b)(3)). Attachments: • Attachment A: Office Lease at 285 Hamilton Avenue, 7th Amendment City of Palo Alto Page 3 SEVENTH AMENDMENT TO OFFICE LEASE 285 Hamilton Avenue, Suite 100, Palo Alto, CA 94301 This SEVENTH AMENDMENT TO OFFICE LEASE (this "Seventh Amendment") is dated as of (the "Effective Date") by and between 285 HAMILTON LLC, a Delaware limited liability company ("Landlord") and THE CITY OF PALO ALTO, a California municipal corporation ("Tenant"). WHEREAS, Landlord, as successor -in -interest to Thoits Bros., Inc., as successor -in - interest to Hamilton Palo Alto, LLC, and Tenant are parties to that certain Office Lease dated October 18, 1998, as amended by that certain Amendment No. 1 to Office Lease dated May 18, 1999, as further amended by that certain Amendment No. 2 to Office Lease dated June 13, 2006, as further amended by that certain Amendment No. 3 to Office Lease dated November 1, 2011, as further amended by that certain Amendment No. 4 to Office Lease dated September 3, 2013, as further amended by that certain Fifth Amendment to Office Lease dated February 1, 2016, and as further amended by that certain Sixth Amendment to Office Lease dated as of May 22, 2017 (the "Sixth Amendment") (collectively and as amended, the "Lease"), for the lease of certain premises currently used as office space by Tenant and consisting of approximately 6,361 rentable square feet located on the first floor of the building, and commonly known as Suite 100, in the building located at 285 Hamilton Avenue, Palo Alto, California as more particularly described in the Lease (the "Premises"); and WHEREAS, Landlord and Tenant wish to amend certain provisions of the Lease as further provided for herein; NOW, THEREFORE, for good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree to amend the Lease as follows. AGREEMENT 1. Definitions. Capitalized terms used in this Seventh Amendment shall have the same meaning ascribed to such capitalized terms in the Lease, unless otherwise provided for herein. 2. Extension. The Term of the Lease is hereby extended and shall expire on January 31, 2026. Except as set forth in Section 4 herein, Tenant has no further options to extend the Lease and any previously granted options to extend are of no force or effect. 3. Base Rent. Commencing on February 1, 2022, the Monthly Base Rent shall be payable according to the following schedule: Period Approximate Base Rent Per Square Foot Monthly Base Rent February 1, 2022 — January 31, 2023 $6.90 $43,890.90 February 1, 2023 — January 31, 2024 $7.11 $45,226.71 February 1, 2024 — January 31, 2025 $7.32 $46,583.51 112197877v.3 February 1, 2025 — January 31, 2026 $7.54 $47,981.02 4. Extension Options. So long as there has been no default prior to the time of exercise or on the first day of the applicable Extension Term (as hereinafter defined) and Tenant has neither assigned this Lease in whole or in part nor sublet its interest in the Premises, Tenant shall have the option to extend the Term for two (2) additional one (1) year periods (the "Extension Term") upon written notice to Landlord given not less than nine (9) months or more than twelve (12) months prior to the expiration of the then current Term. If there has been an Event of Default or Tenant fails to exercise the option to extend the Term strictly within the time period set forth in this section, then Tenant's option to extend the Term shall automatically lapse and be of no further force or effect. If Tenant exercises an option granted hereunder, the applicable Extension Term shall be upon the same terms and conditions as are in effect under this Lease immediately preceding the commencement of such Extension Term except that the Base Rent shall be increased at the same rate as provided herein (i.e., at 3% per year, with the first escalation occurring on February 1, 2026 and on each one year anniversary thereof). 5. Real Estate Brokers. Tenant represents to Landlord that Tenant did not involve any broker in procuring this Seventh Amendment. Tenant hereby agrees to (A) forever indemnify, defend and hold Landlord harmless from and against any commissions, liability, loss, cost, damage or expense (including reasonable attorneys' fees) that may be asserted against or incurred by Landlord as a result of any misrepresentation by Tenant hereunder and (B) discharge any lien placed against the Project by any broker as a result of the foregoing. 6. Governing Law. This Seventh Amendment shall be governed by and construed in accordance with the laws of the State of California (without regard to conflicts of law). 7. Certified Access Specialist Inspection. In accordance with California Civil Code Section 1938, Landlord hereby informs Tenant that as of the Effective Date, the Premises have not been inspected by a Certified Access Specialist (as defined in California Civil Code section 55.52(3)) ("CASp"). Landlord's and Tenant's obligations with respect to any future CASp inspection and any work required thereby or as a result thereof shall be as set forth in Section 8 of the Sixth Amendment, except that the last paragraph of Section 8 thereof (concerning confidentiality requirements) is hereby deleted. 8. Ratification of Lease. Except as modified hereby, all other terms and conditions of the Lease remain unchanged and in full force and effect and are hereby ratified and confirmed by the parties hereto. Tenant accepts the Premises in its "as is" and "where is" condition. Tenant represents and warrants to Landlord that as of the date of Tenant's execution of this Seventh Amendment: (a) Tenant is not in default under any of the terms and provisions of the Lease; (b) Landlord is not in default in the performance of any of its obligations under the Lease and Tenant is unaware of any condition or circumstance which, with the giving of notice or the passage of time or both, would constitute a default by Landlord; (c) Landlord has completed, to Tenant's satisfaction, any and all improvements to the Premises, and has paid any and all allowances required of it under the Lease; and (d) Tenant has no defenses, liens, claims, counterclaims or right to offset against Landlord or against the obligations of Tenant under the Lease. Tenant acknowledges, confirms, and agrees that Tenant has no right or option to expand the Premises or to extend, renew or terminate the Lease. 112197877v.3 9. Limitation of Liability. Neither Landlord nor any officer, director, member or employee of Landlord nor any owner of the Building, whether disclosed or undisclosed, shall have any personal liability with respect to any of the provisions of the Lease, as hereby amended, or the Premises, and if Landlord is in breach or default with respect to Landlord's obligations under the Lease, as hereby amended, or otherwise, Tenant shall look solely to the interest of Landlord in the Building for the satisfaction of Tenant's remedies or judgments. 10. Entire Agreement. This Seventh Amendment, in conjunction with the Lease, constitutes the entire agreement of Landlord and Tenant with respect to the subject matter hereof and supersedes all oral and written agreements and understandings made and entered into by the parties prior to the date hereof. 11. Multiple Counterparts. This Seventh Amendment may be executed in multiple counterparts, all of which, when taken together, shall constitute one and the same instrument. [Signatures on the Following Page] 112197877v.3 IN WITNESS WHEREOF, the parties hereto have executed this Seventh Amendment as of the Effective Date stated above. TENANT: LANDLORD: THE CITY OF PALO ALTO, 285 HAMILTON LLC, a California municipal corporation a Delaware limited liability company By: By: Thoits Bros., Inc., Name: Ed Shikada a California corporation, Title: City Manager Approved as to form: By: Name: Title: City Attorney or designee its sole ember By: \ ohn R. Shenk Tit e: EO 112197877v.3 CVTY 0 PALO ALTO City of Palo Alto (ID # 12343) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: Renewal of Golf Course Management and Restaurant Contracts Title: Approval of Contract Amendment Number 1 to Contract Number C18169712 With OB Sports Golf Management (Baylands) LLC for a Period of Three -years for a Not -to -Exceed Increase Amount of $8,878,721 for the Management of Golf Course Operations at the Baylands Golf Links; and Approval of Contract Amendment Number 1 to Contract Number C18171872 With OB Sports Golf Management (Baylands), LLC for a Period of Three -years for Restaurant Licensing to Provide Food and Beverage Services From: City Manager Lead Department: Community Services Recommendation Staff recommends that City Council: 1. Approve and authorize the City Manager or his designee to execute the attached Contract Amendment Number 1 to contract C18169712 with OB Sports Golf Management (Baylands), LLC (Attachment A) to renew the terms for three additional years in the amount of $8,878,722 for a revised not to exceed compensation of $17,886,722 for golf management services on the course, at the driving range, at the Golf Shop, and surrounding areas of the Palo Alto Baylands Golf Links for the term of July 1, 2021 through June 30, 2024; 2. Approve and authorize the City Manager or their designee to execute the attached Contract Amendment Number 1 to contract C18171872 with OB Sports Golf Management (Baylands), LLC (Attachment B) to renew the terms for three additional years for OB Sports to provide food and beverage services under a license arrangement for the term of July 1, 2021 through June 30, 2024 and for OB Sports Golf Management (Baylands), LLC to pay a minimum of $198,000 which is subject to mutual increase based on net revenue expectations. Background City of Palo Alto Page 1 In 2012, the City of Palo Alto sought designs for modification to the former Palo Alto Municipal Golf Course due to an adjacent San Francisquito Creek levee expansion project which would change the boundaries of the golf course. After a golf course architect was selected and designs were reviewed, the City Council selected a full course renovation design and staff began a five-year process of planning, architectural review, environmental permitting, course management contract revisions, course construction, and new course management selections. On July 1, 2016, the golf course closed to commence construction of a full course renovation and re -opened in May 2018 as the Baylands Golf Links. In 2013, several existing course management and maintenance contracts were negotiated to expire concurrently in 2018 to allow the City to issue a Request for Proposal (RFP) for a full - service golf course operator to provide services after completion of the course renovation. The City received five formal proposals for review and conducted interviews with BrightView/Kemper Sports, Course Co., Landscapes Unlimited, OB Sports, and Troon. Preceding the May 2018 course re -opening, OB Sports Golf Management (Baylands), LLC was awarded contracts through an RFP process to be the single full -service operator for Fiscal Years 2019, 2020, and 2021. Course management, course maintenance, customer service, and golf shop retail sales are provided through a golf management services contract while the provision of food and beverages is through a facility lease with a restaurant license agreement contract. OB Sports Golf Management (Baylands), LLC is a golf management company providing services in course operations, course maintenance, food and beverage, sales and marketing, and course design. Based in Scottsdale, Arizona, the company operates or manages 55 courses in the United States, Bahamas, and Scotland. Courses managed include private, resort, and daily fee courses. Locally, OB Sports Golf Management (Baylands), LLC manages the Golf Club at Moffett Field, a daily fee course open to the public. The selection of OB Sports Golf Management (Baylands), LLC to manage the Baylands Golf Links on the City's behalf included an assessment of their management operations as well as financial performance projections. The City reviewed OB Sports' projections, compared them to pro- formas prepared by the National Golf Foundation, and asked for an assessment by an established industry consultant. Discussion The City and OB Sports Golf Management (Baylands), LLC have two contracts for full -service operations at the Baylands Golf Links. The golf management contract covers course management, course maintenance, customer service, and golf shop retail sales. The restaurant facility lease covers the provision of food and beverage through a restaurant license agreement for OB Sports to operate Baylands Cafe. The two contracts with OB Sports Golf Management (Baylands), LLC were established in 2018 through June 30, 2021 and each contain a mutual renewal option for up to three years (FY 2022 City of Palo Alto Page 2 — FY 2024). If the first option to renew is exercised, a second mutual renewal option may be exercised for up to three additional years (FY 2025 — FY 2027). Staff recommends Council approve contract renewals for both contracts for a period of three years (FY 2022 — FY 2024) to continue having a single operator provide all services at the golf course. For the first three fiscal years since the golf course re -opened after full course renovation, this operation model has resulted in a desired player experience with higher service levels than before. For the past three fiscal years, OB Sports Golf Management (Baylands), LLC has successfully managed and maintained the Baylands Golf Links by reestablishing a customer base and making the Baylands Golf Links one of the premiere municipal courses in the Bay Area. OB Sports Golf Management (Baylands), LLC has placed an emphasis on creating a high -quality player experience, which incorporates attention to course play, course conditions, customer service, practice facilities, food and beverage selection, and aesthetics of the golf shop and restaurant. The efforts of course design, construction, and course management has resulted in the course receiving several recognitions and awards. The course was named as one of Golfweek magazine's Best Courses You Can Play in the category of public courses. Additionally, the course has received recognition from Golf Inc. Magazine for design and the California Parks & Recreation Society for environmental sustainability. In Fiscal Year 2019, green fee revenue from course play and tournaments overachieved its financial pro -forma projection and budget by 1%. However, revenue from merchandise sales underachieved sales targets. Numerous retail and online vendors competing for golf related merchandise sales remains an alternative for players. Although green fee revenue overachieved, when considered in combination with low merchandise sales, overall revenue from golf operations ended FY 2019 at 6% under target. For Fiscal Year 2020, the overall revenue target was increased in alignment with prior pro- formas. Because the prior fiscal year resulted in strong green fee revenue, this revenue category was increased while the revenue target for merchandise sales was decreased. However, in Fiscal Year 2020, the golf course underperformed financially by 26% less than target. During part of the first eight months of the fiscal year, the course was impacted by poor air quality from the 2019 wildfire season. Despite the poor air quality, revenue was performing on par in comparison to the prior Fiscal Year 2019. However, the course closed all operations in March 2020 due to the COVID-19 pandemic and in accordance with the Santa Clara County Shelter -in -Place Health Order. The course remained closed during most of the Spring 2020 season. Upon re -opening at the end of spring, the course operated at drastically less than capacity in accordance with the State and County Health Orders. Initial re -opening during the health pandemic was limited to singles play only, and as the Health Orders further changed, doubles play with members of the same household was allowed. City of Palo Alto Page 3 For Fiscal Year 2021, golf course revenue is projected to be 22% above revenue target. This is attributed to several factors: • Increased leisure time during the COVID-19 health pandemic with few recreation and sports opportunities deemed safer than golf, combined with changes in State and County Health Orders allowing foursome play; • Mild to warm weather throughout all four seasons in the Fiscal Year; and • The reputation of Baylands Golf Links as a preferred premium player experience. If not approved, the City would no longer have an operator for the golf course, pro shop, or restaurant facility until a new provider or new business model was developed and implemented. This would impact the strong customer base and reputation that OB Sports and the City has worked to develop since the opening of this new facility. The City and OB Sports have worked closely over the difficult first three years and recommend continuing this agreement ensuring no interruption in services at the golf course. Resource Impact The golf course operating budget in the General Fund FY 2022 Proposed Operating Budget is $3.8 million in revenue and $3.5 million in expenses, which includes debt service payments. The recommendation in this report to extend these contracts does not result in any direct change to resource impact, however staff and OB Sports may recommend revenue and expense adjustments as appropriate for the City Council's consideration during the FY 2022 Midyear budget process. As of the writing of this report, staff and OB Sports estimate a revenue increase of approximately $250,000 for a new total revenue target of $4.1 million and an expense increase of approximately $85,000 for a new total expense budget of $3.6 million. These projected impacts represent the assumption of continued strong revenue performance and the resources necessary to maintain service levels and the premium player experience the golf course has established. The expense increase will cover irrigation drainage improvements, higher costs of course maintenance supplies and materials, leasing of more powered golf carts, and additional staffing to include more on course marshals to monitor and reduce instances of slow play on course. In addition to compensation for course management and maintenance services, the contract is established to financially incentivize the contractor to exceed annual revenue targets through a revenue share. After achieving select annual revenue targets, amounts in excess are shared by an 80/20 split with 80% retained by the City and 20% paid to the Contractor. However, all revenue up to the revenue target is fully retained by the City. For FY 2023 and FY 2024, the revenue target is to be developed by OB Sports Golf Management (Baylands), LLC and City staff, with approval by Council during the annual budget process. Payment to the contractor for course management and maintenance is limited to no more than a 3% increase over the prior fiscal year. City of Palo Alto Page 4 The restaurant facility lease contract is a revenue contract with OB Sports Golf Management (Baylands), LLC paying rent and utilities in an amount of $5,500 per month during the contract renewal period (FY 2022 — FY 2024) and subject to increase based on net revenue. This is the same amount of rent and utilities during FY 2020 and FY 2021 and an increase is not proposed as the restaurant has been negatively impacted by the COVID-19 pandemic. Impacts include complete closure during the County's Shelter -in -Place Health Order, restricted capacity upon re -opening, and loss of non -golf customer base. During the pandemic, the restaurant has not had sales from banquets due to restricted capacity and social distancing requirements. The restaurant also lost sales from surrounding businesses due to employees working remotely. OB Sports Golf Management (Baylands), LLC has remained current on their monthly rent and utilities payments to the City. Stakeholder Engagement Community Services Department has been in communication with OB Sports and the Administrative Services Department to assess the financial impact of renewing the contracts for a term of three years. Environmental Review Council's approval of these Contract Amendments for golf course services is categorically exempt from CEQA per CEQA regulations 15301 (Existing Facilities), 15304 (Minor Alterations to Land), and 15323 (Normal Operations of Facilities for Public Gatherings). Attachments: • Attachment A: Golf Operations Contract with OB Sports Golf Management (Baylands), LLC_C18169712 Amendment No. 1 • Attachment B: Restaurant Licensing with OB Sports Golf Management (Baylands), LLC_C18171872 Amendment No. 1 City of Palo Alto Page 5 DocuSign Envelope ID: DF28FEC6-4AAE-4140-A5C7-D66625A55313 AMENDMENT NO. 1 TO CONTRACT NO. C18169712 BETWEEN THE CITY OF PALO ALTO AND OB SPORTS GOLF MANAGEMENT (BAYLANDS), LLC This Amendment No. 1 (this "Amendment") to Contract No. C181769712 (the "Contract" as defined below) is entered into as of June 21, 2021, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and OB SPORTS GOLF MANAGEMENT (BAYLANDS), LLC, a Limited Liability Company, Department of Industrial Relations Registration No. 1000056828, located at 7025 E Greenway Parkway, Suite 550, Scottsdale, AZ 852540 ("CONSULTANT"). CITY and CONSULTANT are referred to collectively as the "Parties" in this Amendment. RECITALS A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of golf programming services of golf course management, course maintenance, practice facility maintenance, and retail sales, as more fully described in Exhibit "A" (Scope of Services). B. The Parties now wish to amend the Contract in order to extend the term for three years through June 30, 2024 for continuation of golf programming services and to increase the compensation by Eight Million Eight Hundred Seventy Eight Thousand Seven Hundred Twenty One Dollars and Thirty Seven cents( $ 8,878,721.37) from Nine Million Eight Thousand Dollars ($9,008,000), to a not to exceed amount of Seventeen Million Eight Hundred Eighty Six Thousand Seven Hundred Twenty One Dollars and Thirty Seven Cents($17,886,721.37). 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. C18169712 between CONSULTANT and CITY, dated April 10, 2018. 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 AND OPTION", of the Contract is hereby amended to read as follows: "The term of this Agreement shall be from the date of its full execution and approval by City's City Council (the "Commencement Date") through June 30, 2024, unless terminated earlier pursuant to Vers.: Aug. 5, 2019 Page 1 of 3 DocuSign Envelope ID: DF28FEC6-4AAE-4140-A5C7-D66625A55313 Section 19 of this Agreement. A renewal option for a period or periods of up to 3 years (from July 1, 2021 through June 30, 2024, is available as mutually agreed, to be executed in accordance with Section 27.4 of this Agreement. (In June 2021, the Parties agreed to the first renewal option in Amendment 1 to this Agreement.) A second renewal option for a period or periods of up to an additional 3 years (from July 1, 2024 through June 30, 2027), is available as mutually agreed, to be executed in accordance with Section 27.4 of this Agreement. Absent a mutually extended agreement, the City reserves the right to extend this Agreement for up to six months. During such six-month extension period, the parties may agree to a renewal option as provided for herein. SECTION 3. Section 4, "NOT TO EXCEED COMPENSATION" of the Contract is hereby amended to read as follows: The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit "A" ("Scope of Services"), and reimbursable expenses as specified in Exhibit "B" ("Compensation") herein, shall not exceed Seventeen Million Six Hundred Eighty Eight Thousand Eight Hundred Thirteen Dollars and Twenty Four cents ($17,688,813.24), as detailed in Exhibit "B" ("Compensation"). CONSULTANT agrees to complete all Services, including specified reimbursable expenses, within this amount. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. A Contingency Amount of One Hundred Ninety Seven Thousand Nine Hundred Eight Dollars and Thirteen Cents ($197,908.13) is available, as detailed in Exhibit "B" ("Compensation"), to provide for reasonable and unforeseen costs/services, upon approval of City and to be executed via written amendment to this Agreement as provided for in Section 27.4 herein. In the event such Contingency Amount is utilized as provided for herein, the total compensation for Services, reimbursable expenses and the costs/services added under the Contingency Amount, shall not exceed Seventeen Million Eight Hundred Eight Six Thousand Seven Hundred Twenty One Dollars and Thirty Seven Cents ($17,886,721.37) as detailed in Exhibit "B" ("Compensation"). SECTION 4. The following exhibit(s) to the Contract is hereby amended, as indicated below, to read as set forth in the attachment to this Amendment, which ishereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit "B" entitled "COMPENSATION", AMENDMENT NO.1" (AMENDED, REPLACES PREVIOUS) 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. Vers.: Aug. 5, 2019 Page 2 of 3 DocuSign Envelope ID: DF28FEC6-4AAE-4140-A5C7-D66625A55313 SECTION 6. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) 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 OB SPORTS GOLF MANAGEMENT(BAYLANDS), LLC City Manager (Contract over $85k) APPROVED AS TO FORM: City Attorney or designee (Contract over $25k) Attachments: Officer 1 DocuSigned by: By: !quit GVt t lA 3F76 4� 7A3241D... Name: P i Green Title: coo Officer 2 (Required for Corp. or LLC) —DocuSigned by: By: C. Q. 1W'tt "-9FE9787CDC224AF.. Name: c. A. Roberts Title: EXHIBIT "B" entitled "COMPENSATION, AMENDMENT NO. 1" President Vers.: Aug. 5, 2019 Page 3 of 3 DocuSign Envelope ID: DF28FEC6-4AAE-4140-A5C7-D66625A55313 EXHIBIT "B" COMPENSATION, AMENDMENT NO.1 (AMENDED, REPLACES PREVIOUS) A. NOT TO EXCEED COMPENSATION. ORIGINAL TERM (Execution of Agreement until June 30, 2021) The not -to -exceed compensation to be paid to Consultant for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable -expenses, as detailed in this Exhibit "B" ("Compensation"), shall not exceed $859,000 for FY 2018, and for Year 1 of this Agreement (FY 2019). The not - to -exceed amounts for Year 2 and Year 3 annual compensation to Consultant hereunder shall be as determined in the approved Annual Operating Budget for each such year, as provided for in this Agreement. Payment of the annual compensation due to Consultant hereunder shall be made in quarterly installments. Quarterly payments consist of the following: 1. A quarterly management fee of $27,000. 2. Up to $1,000 per month for travel reimbursement up to the not -to -exceed amount of $39,000 for the Term of this Agreement. 3. Quarterly lump sum payments based on the approved Annual Operating Budget. The first quarterly lump sum payment includes payment for start-up costs which are detailed in Section D ("Start -Up Costs") below. Quarterly payments for FY 2018 and for Year 1 (FY 2019), paid upon receipt of invoice as provided for herein, shall follow the schedule below: Q4 FY 2018* $ 859,000 Q1 FY 2019 $ 670,000 Q2 FY 2019 $ 662,000 Q3 FY 2019 $ 618,000 Q4 FY 2019 $ 679,000 Total $3,488,000 * Including start-up costs detailed in Section D ("Start -Up Costs") below. The quarterly payments for Year 2 (FY 2020) and Year 3 (FY 2021) of this Agreement shall be based upon the approved Annual Operating Budget for each such year as provided for in this Agreement. In no event shall the Annual Operating Budgets for Year 2 and Year 3 of this Agreement grow by more than 3% over the prior year. BUDGET SCHEDULE NOT TO EXCEED AMOUNTS (ORIGINAL TERM ONLY'): Sub -total Services: $ 8,862,000 Total Reimbursable Expenses (Travel): $ 39,000 Total Services and Reimbursable Expenses: $ 8,898,000 DocuSign Envelope ID: DF28FEC6-4AAE-4140-A5C7-D66625A55313 Contingency Amount: $ 110,000 Maximum Total Compensation: $9,008,000 FIRST RENEWAL TERM (July 1, 2021 -June 30, 2024) The not -to -exceed compensation to be paid to Consultant for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, as detailed in this Exhibit "B" ("Compensation"), shall not exceed $2,844,095 for Year 4 of this Agreement (July 2021 -June 2022, aka FY2022). The not -to -exceed amounts for Year 5 (July 2022 -June 2023) and Year 6 (July 2023 - June 2024) annual compensation to Consultant hereunder shall be as determined in the approved Annual Operating Budget for each such year, as provided for in this Agreement. Payment of the annual compensation due to Consultant hereunder shall be made in quarterly installments. Quarterly payments consist of the following: 1. A quarterly management fee of $27,000. 2. Up to $1,000 per month for travel reimbursement up to the not -to -exceed amount of $36,000 during the First Renewal Term of this Agreement. 3. Quarterly lump sum payments based on the approved Annual Operating Budget. Quarterly payments for Year 4, paid upon receipt of invoice as provided for herein, shall follow the schedule below: Q1 FY 2022 $ 711,023.75 Q2 FY 2022 $ 711,023.75 Q3 FY 2022 $ 711,023.75 Q4 FY 2022 $ 711,023.75 Total $ 2,844,095.00 The quarterly payments for Year 5 and Year 6 of this Agreement shall be based upon the approved Annual Operating Budget for each such year as provided for in this Agreement. In no event shall the Annual Operating Budgets for Year 5 and Year 6 of this Agreement grow by more than 3% over the prior year. BUDGET SCHEDULE NOT TO EXCEED AMOUNTS FOR YEARS 4 THROUGH 6: Sub -total Services: $ 8,754,813.24 Total Reimbursable Expenses (Travel): $ 36,000 Total Services and Reimbursable Expenses: $ 8,790,813.24 Contingency Amount: $87,908.13 Maximum Total Compensation for Years 4-6: $ 8,878,721.37 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, DocuSign Envelope ID: DF28FEC6-4AAE-4140-A5C7-D66625A55313 photocopying, 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: Travel for Consultant's management staff to travel from Consultant's headquarters to the Premise/City to ensure performance in accordance with this Agreement, not to exceed $1,000 per month over the Term of this Agreement. The expenses eligible for reimbursement under this paragraph are ordinary business expenses of Consultant and not operational expenses of managing the Premise. INCENTIVE PAYMENTS Consultant is eligible to receive incentive payments based upon achieving/exceeding annual revenue targets. For example, for FY 2022, revenue excluding golf retail merchandise sales, must exceed $ 3,761,644 in order for Consultant to be eligible for incentive payments. If the revenue target is achieved/exceeded, then for every dollar of revenue achieved in excess of the annual revenue target, Consultant may retain $0.20 as an incentive payment. CONTINGENCY AMOUNT An additional 1% of CONSULTANT compensation will be a contingency amount and is reserved by the City for possible use in the event of any reasonable and unforeseen costs during the fiscal year, as agreed to by City and implemented pursuant to a written amendment to this Agreement as provided for herein. ADDITIONAL SERVICES No Additional Services are authorized by the City through this Agreement, unless pursuant to a written amendment to this Agreement as provided for herein. B. PAYMENT. Subject to Section 5 ("Invoices") of the Agreement, Consultant shall submit quarterly invoices to the City in advance of each quarter. The Consultant's invoice will then be submitted to the fiscal section for payment at which point the City has 30 working days from the last date of the invoice to render payment to the Consultant. Invoices must include Consultant name, address, contract number, description of services, date of services, and compensation amount. C. LATE FEES. 1. City shall pay to Consultant all of the fees described above, and any other sums due Consultant, at the times, at the places, and in the manner herein provided. If any payment or any part thereof to be made by City to Consultant pursuant to the terms hereof shall become overdue for a period of sixty (60) days, a "late charge" may be charged by Consultant for the purpose of defraying the expense incident to handling such delinquency. 2. The late charge shall be equal to the lesser of: (i) 1% of the quarterly management fee; or (ii) $2,000 per month overdue based on the date payment was due. DocuSign Envelope ID: DF28FEC6-4AAE-4140-A5C7-D66625A55313 3. In the event any portion of this Section violates any state or federal law or regulation, this Section shall be deemed void and shall have no other effect or make invalid any other provision of this Agreement. D. START-UP COSTS. The City has agreed to pay, as a part of the Q4 FY 2018 payment to Consultant, the following items that Consultant shall purchase but City will retain ownership of. These include: Item(s) Amount Point of Sale/Tee Time Systems "Clover" & Computers $ 10,000 Goose Dog $ 7,500 Office/Pro-Shop Equipment $ 16,116 Cart Storage & Range Equipment / Supplies $ 13,750 Restaurant tables, chairs and other furniture $ 44,189 Paint, Carpet, Flooring in Restaurant/Pro-Shop $ 80,000 New Inventory Purchases -Retail $ 50,000 Pre -Opening Marketing $ 71,075 Total Start -Up Costs $ 292,630 DocuSign Envelope ID: 20557A8E-FD53-419A-AFCF-4DC9C044897F AMENDMENT NO. 1 TO CONTRACT NO. C18171872 (RESTAURANT) BETWEEN THE CITY OF PALO ALTO AND OB SPORTS GOLF MANAGEMENT (BAYLANDS), LLC This Amendment No. 1 (this "Amendment") to Contract No. C18171872 (the "Contract" as defined below) is entered into as of June 21, 2021, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and OB SPORTS GOLF MANAGEMENT (BAYLANDS), LLC, a Limited Liability Company, Department of Industrial Relations Registration No. 1000056828, located at 7025 E Greenway Parkway, Suite 550, Scottsdale, AZ 852540 ("CONSULTANT"). CITY and CONSULTANT are referred to collectively as the "Parties" in this Amendment. RECITALS A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of restaurant services to provide food and beverages and banquet services, as more fully described in Exhibit "A" (Scope of Services). B. The Parties now wish to amend the Contract in order to extend the term for three additional years from June 30, 2021 to June 30, 2024. 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. C18171872 between CONSULTANT and CITY, dated April 10, 2018. 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 AND OPTION", of the Contract is hereby amended to read as follows: "The term of this Agreement shall be from the date of its full execution and approval by City's City Council (the "Commencement Date") through June 30, 2024 unless terminated earlier pursuant to Section 19 of this Agreement. A renewal option for a period or periods of up to 3 years (from July 1, 2021 through June 30, 2024, is available as mutually agreed, to be executed in accordance with Section 27.4 of this Agreement. (In June 2021, the Parties agreed to the first renewal option in Amendment 1 to this Agreement.) A Vers.: Aug. 5, 2019 Page 1 of 2 DocuSign Envelope ID: 20557A8E-FD53-419A-AFCF-4DC9C044897F second renewal option for a period or periods of up to an additional 3 years (from July 1, 2024 through June 30, 2027), is available as mutually agreed, to be executed in accordance with Section 27.4 of this Agreement. Absent a mutually extended agreement, the City reserves the right to extend this Agreement for up to six months. During such six-month extension period, the parties may agree to a renewal option as provided for herein. 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. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) 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 OB SPORTS GOLF MANAGEMENT(BAYLANDS), LLC City Manager (Contract over $85k) APPROVED AS TO FORM: City Attorney or designee (Contract over $25k) Officer 1 p-DocuSigned by: By: N.-3F 4€ 7Adil.Wen Name: Title: coo Officer 2 (Required for Corp. or LLC) DocuSigned by: By: C. Q. rbit,V%S Name:9F`9787A. i or erts Title: F( President Vers.: Aug. 5, 2019 Page 2 of 2 CVTY 0 PALO ALTO City of Palo Alto (ID # 12346) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: Boards and Commission Annual Work Plans Title: Staff Recommends the City Council Approve the Board's and Commission's 2021-2022 Work Plans From: City Manager Lead Department: City Clerk Recommendation Staff recommends Council review and approve the 2021-2022 Board and Commission work plans. Discussion On November 30, 2020, the City Council adopted the Board and Commission (BCC) Handbook, which implemented an annual review and approval of BCC work plans. Each BCC should prepare an annual work plan for review and approval by the Council by second quarter of the calendar year. The annual report should include the results of the prior year's plan. When applicable, the City Council would like to see metrics of community involvement and participation in meetings and activities included in the work plan. The Council is expected to review the work plans and provide feedback annually at a City Council meeting. In addition, Council may refer additional items to the BCCs in response to new developments. BCCs should work on the items outlined in the approved workplans. They should refrain from expending their time and staff time on items that have not been approved by the City Council. In the event a BCC would like to add an issue for review after an annual workplan has been approved by the City Council, a prompt request by the BCC Chair to the City Council is required and the item will then be addressed by the City Council as a whole. Attachments: • Attachment A: Planning and Transportation Commission Work Plan 2021 - 2022 • Attachment B: Public Art Commission Workplan • Attachment C: Parks and Recreation Commission Work Plan City of Palo Alto Page 1 • Attachment D: Historic Resources Board Workplan • Attachment E: Stormwater Management Oversight Committee Workplan • Attachment F: Human Relations Commission Work Plan • Attachment G: Utilities Advisory Commission Draft Work Plan City of Palo Alto Page 2 July 2021— April 2022 DRAFT Work Plan Board or Commission Name: Planning & Transportation Commission Staff Liaison Name and Contact Information: Rachael Tanner, Assistant Director of Planning and Development Services, Rachael.Tanner@CityofPaloAlto.org, 650-329-2167 Lead Department: Planning & Development Services; Office of Transportation General Purpose and/or Purview of Board/Commission: The Planning & Transportation Commission advises the City Council, Planning Director, and Transportation Director on land use and transportation matters, including the Comprehensive Plan, zoning, transportation programs, and related matters. The Commission's primary responsibilities include: • Preparing and making recommendations to the City Council on the City's Comprehensive Plan regarding development, public facilities, and transportation in Palo Alto; • Considering and making recommendations to the City Council on zoning map and zoning ordinance changes; any changes to Title 18 of the Palo Alto Municipal Code must be reviewed by the PTC and the City Council; • Reviewing and making recommendations to the City Council on subdivisions and Site and Design Reviews, on appeals on variances and use permits; • Considering other policies and programs affecting development and land use in Palo Alto for final City Council action; • Reviewing and making recommendations on individual projects as described in the Municipal Code, and Open Space development; • Reviewing and making recommendations to the City Council on transportation, parking, and other related mobility issues. Due to the nature of the PTC, the work is primarily driven by: (1) Referrals from the Council to the PTC (2) Applications submitted by the public that require review of the PTC Thus, unlike some other boards and commissions, the PTC does not necessarily develop its own list of projects, policies, and programs to tackle. The proposed work plan includes Council referrals, known applications at this time (though more may come throughout the year), and other items that may benefit from PTC input even if the input is not statutorily required. Draft Work Plan The PTC Staff Liaison developed this draft work plan and submitted it to the City Clerk on May 28, 2021. The work plan will be reviewed by the PTC at its regularly scheduled meeting on June 9, 2021. Should there be further revisions will be provided to the City Council via an at -places memorandum. 1 Planning and Transportation Commission DRAFT Work Plan Items July 2021— April 2022 Anticipated Item/Topic Description and/or Info Anticipated Quarter* *Quarter 1 = Jan, Feb. March 1 Quarter 2 = April, May, June 1 Quarter 3 = July, Aug. Sept. 1 Quarter 4 = Oct., Nov., Dec. Parking Action Plan update Quarterly Updates Palo Alto Bikeways Project Recommendation to Council to move forward (or not) with the project. Q3 Retail Recovery Discuss and develop recommendations for considering additional retail- like uses and the geography of the retail preservation ordinance. Direct Staff and the Planning and Transportation Commission to quickly evaluate and propose changes to enable Diverse Retail Uses in more retail sites, including food, medical, educational, financial and professional office uses citywide or by district, and evaluate ways the City can curate a strong retail mix; and direct the Planning and Transportation Commission to evaluate and propose the geography of the Retail Preservation Ordinance in Palo Alto. Begin in Q3 with work extending into Q4 and 01 California Avenue In -Lieu Parking Discuss adjusting parking requirements related to California Avenue. Q3 Parking In -lieu ban parking policy for Downtown Consider if the current ban has effectively led to housing development downtown and how to adjust and/or continue the policy. Q3 Housing Element Housing Element update regarding the progress of the Working Group. Q3 Castilleja School Castilleja School Remanded to PTC and Amendment to Chapter 18.04 Gross Floor Area. Q3 or Q4 Safe Parking Review proposed permanent ordinance for the congregation -based safe parking program and public -land safe parking program. Q3 or Q4 Inclusionary Housing Requirements (Housing Work Plan Task 3.1) Direct Staff and the Planning and Transportation Commission to explore possible zoning amendments or other factors that could support a future 20 percent inclusionary requirement for ownership and rental housing Q3 or Q4 2 while recognizing that such analysis will be constrained without funding for additional consultant resources; and Direct Staff to return with adjustments to parking and retail standards in a manner consistent with this analysis; Develop and implement inclusionary housing requirements for rental housing. Accessory Dwelling Unit Direct the Planning and Transportation Commission (PTC) to look at deed restricted affordable ADU's; and Direct Staff to continue working with the community, including the ADU Task Force, during the PTC process. Q3 and Q4 Renter Protection Review and make recommendation regarding proposed ordinances to implement renter protection policies as directed by the City Council. Q4 Wireless Communications Ordinance Amending 18.42.110 (Wireless Communication Facilities). Q4 or 01 State Law Updates Review and make recommendations regarding code changes. Q4 or 01 Housing Element — Site selection Review proposed housing opportunity site selected by the Working Group and make a recommendation to City Council. 01 Palo Alto Bikeways Project (Phase 2) Recommendation to Council of final project and environmental document. 01 or Q2 North Ventura Coordinated Area Plan (NVCAP) Review further refined version of Council -selected preferred plan alternative. This will include further studies of the preferred plan. 01 or Q2 Housing Element — Programs Review and make recommendation regarding Housing Element programs. 01 or Q2 Bicycle and Pedestrian Transportation Plan (BPTP) Update Study session: Plan update progress. Q2** **= Tentative 3 Public Art Commission (PAC) The Public Art Commission oversees Palo Alto's temporary and permanent public art programs. The primary duties of the Commission are: • To advise the city in matters pertaining to the quality, quantity, scope, and style of art in public places • To periodically review the capital improvement program with the staff for inclusion of works of art in various projects • To devise methods of selecting and commissioning artists with respect to the design, execution, and placement of art in public places and to advise staff on the selection and commissioning of artists, and the amounts to be expended on art in public places • To advise and assist staff in obtaining financial assistance for art in public places from private, corporate, and governmental sources • To review plans for the installation of art in public places and review the inventory of art in public spaces • To act as a liaison between artists and private property owners desiring to install works of art on their private property in public view PAC Approved Priority & Goal: Develop public art that aids in Palo Alto's recovery from the Covid-19 crisis by supporting projects that encourage pedestrian traffic and the use of pedestrian -friendly streets, that are located near Palo Alto neighborhoods, as well as commercial corridors and storefronts, and that advance Public Art Master Plan goals ("COVID Recovery Priority") Appendix 1 • Project Name: Temporary Murals Pilot • Description: In conjunction with Uplift Local, 8 local artists/artist teams created original, site -specific murals that have been placed in diverse locations along University and California Avenues. The murals support emotional and economic wellbeing by encouraging pedestrian traffic and the animating of commercial corridors. It also engages and supports local and regional artists. • Duration: February 2021 - End of 2021 • Additional Impact: Advances Racial Justice Priority by increasing diversity of artist pool. Advances Public Art Education Priority through outreach and public discussions. Appendix 2 • Project Name: ArtLift Microgrants • Description: Fund up to 40 local artists and creatives to help the community recover both emotionally and economically from the pandemic through the arts and creative outlets. Temporary projects and experiences designed to bring joy and smiles, facilitating connection and a sense of discovery across Palo Alto. Forty artist calls were made benefitting artists and involving community members. This project includes artists of music and dance talent as well more typical large and small temporary installations. These are showcased throughout Palo Alto. • Duration: Through 2021 • Additional Impact: Advances Racial Justice Priority by increasing diversity of artist pool. Implementing the Master Plan objective of installing public art throughout Palo Alto neighborhoods also promotes Public Art Education Priority. Appendix 3 • Project Name: Code:ART2 • Description: The three -evening event will engage area locals in an event that outwardly reflects the creative community that thrives here. Originally scheduled for 2020 but postponed due to the pandemic, the second iteration of Code:ART will once again temporarily reframe the City as a laboratory for urban interventions and creative placemaking while engaging residents, commuters, students, and visitors in dialogue to re - imagine underutilized spaces. The festival will feature a major new media interactive artwork and 6 smaller installations. Code:ART2 will offer an opportunity for our community to celebrate the end of the pandemic together while offering adequate space for everyone to participate within their personal comfort zone. • Duration: October 7- 9, 2021. • Additional Impact: Advances Racial Justice Priority by increasing diversity of artist pool. Advances Public Art Education Priority with extensive outreach and collaboration with local businesses. PAC Approved Priority: Develop public art projects that will continue to advance cultural inclusion and social and racial equity ("Racial Justice Priority") Appendix 4 • Project Name: Study and Change to Promote Race and Equity in Palo Alto's Public Art Program • Description: PAC engaged Equity and Accessibility Consultant Elizabeth D. Foggie to conduct a study and provide recommendations to enhance equity and access to public art opportunities in Palo Alto. Recommendations from the study include the personalizing of artist calls, developing education opportunities for black, Indigenous and people of color (BIPOC) artist to learn about the public art process, and the hiring of a community liaison or manager to develop and build authentic relationships with BIPOC community leaders, individual artists, and groups. Staff will review their current procedures and implement the recommendations include expanding the program's outreach to BIPOC artists and art organizations who engage with BIPOC artists. • Duration: Ongoing • Additional Impact: Advances Public Art Education Priority with extensive outreach and collaboration with BIPOC community leaders and groups Appendix 5 • Project Name: Race and Equity Public Art Program in King Plaza • Description: In response to Palo Alto City Council's inquiry to develop a permanent artwork on King Plaza and the City's priorities to advance cultural, racial, and social equity, the PAC is developing a permanent platform on King Plaza for ongoing, rotating temporary exhibitions. This platform will enable Palo Alto and the PAC to incorporate a broad range of voices and to facilitate conversations around cultural, racial, and social equity in our community • Duration: Summer 2021— ongoing • Additional Impact: Promotes awareness of BIPOC community leaders. Advances Public Art Education Priority through ongoing conversations regarding public art installed in a key public space. Appendix 6 • Project Name: Collaboration with Human Relations Commission • Description: Chair Nia Taylor and Vice Chair Loren Gordon and Public Art Program Director Elise DeMarzo have been meeting with the Human Relations Commission (HRC) to discuss possible collaborations, including 100 conversations on race and social equity in Palo Alto ("The 100 Conversations"). The 100 Conversations are intentional conversations aimed at growing Palo Alto into a community characterized by belonging, vested in diversity, inclusion, and equity, and committed to putting words into action. • Duration: The 100 Conversations will be held from May 25, 2021 until Juneteenth 2021. • Additional Impact: Advances Public Art Education Priority by highlighting that public art is not removed from the city and society but embedded in both. PAC Approved Priority: Widen and strengthen education and advocacy for public art, including through the roll -out and implementation of the California Ave District Master Plan and the Baylands Art Plan ("Public Art Education Priority"). Appendix 7 • Project Name: Temporary Murals for Public Safety Building construction fence • Description: Commission 8 California -based artists to create a series of site -specific temporary murals that celebrate the California Ave District community and visually enhance the fencing that surrounds the construction site. • Duration: Summer 2021 - Summer 2023. Appendix 8 • Project Name: Highway 101 Bike/Pedestrian Bridge • Description: Artist Mary Lucking is designing a visually pleasing and relaxing space for bridge users to stop and rest. The centerpiece will be three cast -aluminum sculptures that can be used as ADA compliant seating. The sculptures will be surrounded by a cut -steel fence that will silhouettes of the bayland grasses, giving visitors the feeling of being nestled down in the marsh. • Duration: Completion in Summer 2021 • Additional Impact: Advances COVID Recovery Priority by promoting outdoor activity Appendix 9 • Project Name: Charleston-Arastradero Corridor • Description: The Charleston-Arastradero Corridor is a high volume, 2.3 -mile roadway serving schools, parks, shopping, commercial, and community centers. Artist Susan Zoccola's sculptural artworks inspired by diatoms and wheels in motion will be installed on 5 strategic sites along the corridor, selected for visibility and opportunity to enhance wayfinding for drivers, pedestrians, and cyclists on the corridor. Duration: Currently delayed until end of 2021 Appendix 1: Temporary Murals pilot Left to right: See You Soon by Lauren Berger, located at the facade of Garage R, 528 High Street. The California Avenue Marching Band by Damon Belanger, located at 261 California Ave Temporary projects by local artists and community members include installations, live performances, murals, scavenger hunts, and pop-up art interventions throughout Palo Alto. Appendix 3: CodeART Event Map featuring art installations and Urban Interventions in downtown Palo Alto. Florence St P Bryant/Lytton Cara it St lmona St Mandarin Gourmet Emerson St `l Evvia Estiatorio ti Joya ge 4 Steam Wahlburgers L maum Bryant St Tau Farb Bevri tl 0ld Pro 5 Cardinal Hot n tf Cvs,"1 if 1. King Plaza at 250 Hamilton Ave: o Code:ART Hub and Informational Booth o HYDRALA by Daniel Tran and Nick Sowers 2. Lytton Plaza at 202 University Ave: o PALEOALTO by Marpi Studio • Cambrian Corp v 1 O LL Palo Alto Farmer's Market t First Church of Christ Scientist • Palo Alto City Halt el Ln11W Buca di Beppo Epiphany Hotel Ln h E 5. 555 Ramona Street o 0/1 by Ben Flatau 6. Lane 20 Tunnel at 451 Florence: o COLOR CURRENTS by Cory Barr Ramona E 7. AT&T Bldg and Parking Lot D at 351 Hamilton 3. Bell's Book Alley at 536 Emerson St: Ave: o CODED ARCHITECTURE 0.3 by Amor Munoz o LUMINOUS GROWTH by Liz Hickok 4. 250 University Ave: o COSMIC CANNON by Jeffrey Yip CITY OF PALO ALTO code IA I OCT. 7, B, 6 9 Appendix 4: Study and Change to Promote Race and Equity in Palo Alto's Public Art Program led by Equity and Accessibility Consultant, Elizabeth D. Foggie Appendix 5: Race and Equity Public Art Program in King Plaza . Example of art banner on facade of City Hall "I HAVE A DREAM" 50'` AN(\;4 ERSARY CELEBRATION Appendix 7: Temporary Murals for Public Safety Building construction fence. Examples of artworks designed for the California Ave Parking Garage in 2018. Ito 0 `0t,4 •, f 11,11 A..` ,.L11111au.n0 c ',tjk 11.1114 }a�' ' .. . wtouno. N, .1111b ... 11:11,00. • quaea0000000 111 ii,1 If NN/oN// /ee ./uU lee.' ��11/1 t J� IaaN � 111�IJ Temporary mural by Phillip Hua for Birch St Temporary mural by Oree Original for Ash St Appendix 8: 101 Bike / Pedestrian Bridge. Rendering of artwork titled Baylands Vignette by project artist Mary Lucking Appendix 9: Charleston-Arastradero Corridor. Rendering of artwork titled Diatoms by artist Susan Zoccola Baylands Tide Gate Workplan PARKS AND RECREATION COMMISSION (PRC) Baylands Tide Gate' Commissioners Reckdahl and Greenfield Approved Projects, Priorities, and Goals Name of Project, Priority or Goal Benefit, if Completed Mandate by State or Local law and approved by City Council? Y/N Policy Update as Directed by the City Council Y/N Timeline for Completion Resources needed, i.e. staff support, subcommittee established, etc. Measure of Success Liaise with Valley Water and review their Palo Alto Flood Basin Tide Gate Replacement Project plans. (4 year construction project) Minimize public impact during construction (e.g. closure of Adobe Creek Loop Trail); improve public awareness of the project; minimize Yes, Mandated by Valley Water No End of Calendar Year 2021 Staff support, Ad Hoc committee Plans for Adobe Creek Loop Trail closure reduced from original project estimate; Park Improvement Ordinance (P10) supported by PRC; public 1 This workplan item is consistent with Goal 6 of the Parks, Trails, Natural Open Space, & Recreation Master Plan. For details, see endnotes. The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. habitat & wildlife impacts; provide a voice and forum for local concerns during the planning process input during PIO approval process Prioritize projects, priorities and goals Name of Project, Priority or Goal Priority 1: Urgent (within six months) Priority 2: High (within the year) Priority 3: Medium (within 2 years) Priority 4: Low (beyond 2 years) Baylands Tide Gate Replacement X The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. Dog Parks and Restrooms Workplan Approved Projects, Priorities, and Goals PARKS AND Dog Commissioners RECREATION COMMISSION Parks and Restrooms2 Cribbs and Brown (PRC) Name of Project, Priority or Goal Benefit, if Completed Mandate by State or Local law and approved by City Council? Y/N Policy Update as Directed by the City Council Y/N Timeline for Completion Resources needed, i.e. staff support, subcommittee established, etc. Measure of Success Ramos Park Restroom Fulfillment of Parks Master Plan item Increased restroom access at parks N N Fiscal Year 2022 Funding Staff support Completion of restroom construction Dog Park Improvements Increased utilization and/or access to dog parks N N Fiscal Year 2022 $150,000 as designated through Capital Improvement Project (CIP) funding Public feedback on improvements 2 This workplan item is consistent with Policies 2.D and 2.E of the Parks, Trails, Natural Open Space, & Recreation Master Plan. For details, see endnotes. The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. Prioritize projects, priorities and goals Off -leash dog park pilot program Increased availability for off -leash dogs N N Fiscal Year 2022— pilot program Additional funding Staff support Community support Public feedback on pilot program Public Education on Dog Park Practices Reduce operation and maintenance costs through public education campaign N N Fiscal Year 2022 (ongoing) Minimal funding for collateral Information from staff on what costs are greatest Support from community Word of mouth Decreased costs for operations and maintenance Name of Project, Priority or Goal Priority 1: Urgent (within six months) Priority 2: High (within the year) Priority 3: Medium (within 2 years) Priority 4: Low (beyond 2 years) Ramos Park Bathroom X Dog Park Improvements X Off -leash Dog Park Pilot Program X The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. Public Education on Dog Park X Practices The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. Fund Development Workplan Approved Projects, Priorities, and Goals PARKS M AND Commissioners RECREATION COMMISSION Fund Development3 Cribbs, Brown, and (PRC) LaMere Name of Project, Priority or Goal Benefit, if Completed Mandate by State or Local law and approved by City Council? Y/N Policy Update as Directed by the City Council Y/N Timeline for Completion Resources needed, i.e. staff support, subcommittee established, etc. Measure of Success Support for Community Services Department (CSD) Events Community events will continue N N — but could be necessary Fiscal Year 2022 Staff support Funding from Palo Alto Recreation Foundation Number of events supported Palo Alto Recreation Foundation (PARF) and Friends of Parks (FOP) Fundraising & Relationships PRC work with nonprofits to support CSD N N Fiscal Year 2022 PRC liaison Minimal staff support Community Support Communication and on -going partnership 3 This workplan item is consistent with Policy 5G and Programs 5.G.1, 5.G.2, 5.G.3, and 5.G.4 of the Parks, Trails, Natural Open Space, & Recreation Master Plan. For details, see endnotes. The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. Prioritize projects, priorities and goals Public Donations and Sponsorship Guidelines Need for Clear guidelines about providing funding to CSD projects — program and Capital Improvement Project N N Fiscal Year 2022 Staff Support Existing City Policies Guidelines Published Review gaps in Capital Improvement Project (CIP) planning Opportunity for community to contribute N N FY 2022 (0n going) Staff Support Public Education & Communication PRC review of CIP priorities Name of Project, Priority or Goal Priority 1: Urgent (within six months) Priority 2: High (within the year) Priority 3: Medium (within 2 years) Priority 4: Low (beyond 2 years) Support for Community Service Events X PARF and FOP Fundraising & Relationships X The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. Public Donations and Sponsorship guidelines X The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. New Recreation Opportunities Workplan Approved Projects, Priorities, and Goals PARKS AND New Commissioners RECREATION Recreation Cribbs, COMMISSION Opportunities' Reckdahl, and LaMere Name of Project, Priority or Goal Benefit, if Completed Mandate by State or Local law and approved by City Council? Y/N Policy Update as Directed by the City Council Y/N Timeline for Completion Resources needed, i.e. staff support, subcommittee established, etc. Measure of Success Investigate development possibility of a City Gym City does not have a gym N N Calendar Years 2021- 2023 Limited staff Support Citizens Advisory Committee Established Private Funding Further community discussions Baylands 10.5 Acres assessment and investigation of possible development projects and Needed playing fields, enhanced athletic complex N N Calendar Year 2021 Planning Limited staff support Private funding Further community discussions This workplan item is consistent with Goal 5, Policies 5.D, 5.D.1, 5.D.2, and 5.D.3, and Program 5.F.1 of the Parks, Trails, Natural Open Space, & Recreation Master Plan. For details, see endnotes. The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. potential timelines Skate Park Venue for skateboarders N Y Calendar Year 2021 Planning Calendar Year 2022 Completion City Staff- Private funding Public Works and Community Services Departments Community Advisory Group Privately funded Further community discussions and a recommendation forwarded to City Council Golf— First Tee Silicon Valley (FTSV) Partnership Expanded Golf opportunities for Youth Improvement to facility N N Calendar Year 2021 Planning Calendar Years 2022 — 2023 Completion Limited staff time including golf course vendor Funded by First Tee of Silicon Valley Golf course improvements More youth involved in benefits from golf Shared Facilities between City of Palo Alto (CPA) and Palo Alto Unified School District (PAUSD) More facilities for community N N Calendar Year 2021 CPA/PAUSD leadership discussion Create policy for shared facilities Increased community access to school district recreational facilities The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. Prioritize projects, priorities and goals Survey of facilities and sports organizations in CPA to assess ethnic and gender opportunities Report on completed survey Name of Project, Priority or Goal Priority 1: Urgent (within six months) Priority 2: High (within the year) Priority 3: Medium (within 2 years) Priority 4: Low (beyond 2 years) City Gym X 10.5 Acres / recreation land from golf course project X Build new Skatepark X Golf — First Tee Silicon Valley Partnership X Shared facilities between CPA and PAUSD X Survey of facilities and sports organizations in X The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. CPA to assess ethnic and gender opportunities The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. Foothills Nature Preserve Workplan PARKS AND Foothills Commissioners RECREATION Nature Greenfield, COMMISSION Preserves Moss, and Olson Approved Projects, Priorities, and Goals Name of Project, Priority or Goal Benefit, if Completed Mandate by State or Local law and approved by City Council? Y/N Policy Update as Directed by the City Council Y/N Timeline for Completion Resources needed, i.e. staff support, subcommittee established, etc. Measure of Success Foothills Nature Preserve Stewardship and Policy review and recommendations: Fees, waivers, capacity limits, group and commercial use, etc. Habitat & wildlife preservation, manage increased visitation demands N Y Calendar Year 2021 Staff support, Ad Hoc committee, community partnerships Recommendations to City Council to manage increased visitation demands with minimal impact to habitat & wildlife S This workplan item is consistent with Goal 4, Policies 4.A and 6.D of the Parks, Trails, Natural Open Space, & Recreation Master Plan. For details, see endnotes. The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. Name of Project, Priority or Goal Priority 1: Urgent (within six months) Priority 2: High (within the year) Priority 3: Medium (within 2 years) Priority 4: Low (beyond 2 years) Foothills Nature Preserve Stewardship and Policy X The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. CIP Review Workplan Approved Projects, Priorities, and Goals PARKS AND Capital Commissioners RECREATION COMMISSION Improvement Projects Review6 Moss, Brown, and (PRC) LaMere Name of Project, Priority or Goal Benefit, if Completed Mandate by State or Local law and approved by City Council? Y/N Policy Update as Directed by the City Council Y/N Timeline for Completion Resources needed, i.e. staff support, subcommittee established, etc. Measure of Success Identify potential supplemental funding opportunities Fiscal Year 2022- 2026 Capital Improvement Projects (CIP) Ability to identify fundraising opportunities N N October 2021 PRC supports staff List of gaps to PRC. CIP Review by PRC for Fiscal Year 2023-2027 Capital Plan for Parks, Open Space, and Golf projects. Provide PRC feedback to Staff and City Council on the priority and focus of N N Finance Committee Budget Hearings PRC supports staff CIP Capital Plan for Parks, Open Space, and Golf projects discussed, 6 This workplan item is consistent with Goals 1 and 2, Policies 2.A, 2.A.2, and 2.A.4 of the Parks, Trails, Natural Open Space, & Recreation Master Plan. For details, see endnotes. The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. proposed CIP projects For FY 2023- 2027 CIP Budget cycle. reviewed, and prioritized for Staff. Prioritize projects, priorities and goals Name of Project, Priority or Goal Priority 1: Urgent (within six months) Priority 2: High (within the year) Priority 3: Medium (within 2 years) Priority 4: Low (beyond 2 years) CIP Review by PRC for Fiscal Year 2023-2027 Capital Plan The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. Racquet Court Policy Workplan Approved Projects, Priorities, and Goals Name of Project, Priority or Goal PARKS AND Commissioners RECREATION Racquet Court Orson COMMISSION Policy' and Reckdahl (PRC) Resources needed, i.e. staff support, subcommittee established, etc. Measure of Success Benefit, if Completed Mandate by State or Local law and approved by City Council? Y/N Policy Update as Directed by the City Council Y/N Timeline for Completion Review tennis and pickleball court use rules and policies. Work with staff and tennis/pickleball community to address issues and improve policy and adopt rules pertaining to pickleball N N Calendar Year 2021 Staff support, Ad Hoc committee Forwarding a recommendation to Staff or City Council on rules and policy changes. High court usage and satisfied court users while limiting the amount of time required of staff. This workplan item is consistent with Policy 1.F and Programs 1.F.1 and 1.F.2 of the Parks, Trails, Natural Open Space, & Recreation Master Plan. For details, see endnotes. The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. Prioritize projects, priorities and goals Name of Project, Priority or Goal Priority 1: Urgent (within six months) Priority 2: High (within the year) Priority 3: Medium (within 2 years) Priority 4: Low (beyond 2 years) Review tennis and pickleball court use rules and policies. X The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. Endnotes: Baylands Tide Gate workplan: Goal 6: Manage Palo Alto's land and services effectively, efficiently and sustainably utilizing quantitative and qualitative measures. Dog Parks and Restrooms workplan: Policy 2.D Actively pursue adding dedicated, fenced dog parks in multiple neighborhoods, equitably distributed between north and south Palo Alto. The size of the dog parks will vary but should strive to be at least 1/4 acres. Dog parks should not be placed in open space preserves. Policy 2.E The City will actively pursue adding park restrooms in parks that are approximately 2 acres or larger, have amenities that encourage visitors to stay in the park, have a high level of use and have no nearby restrooms. Fund Development workplan: Policy 5.G Pursue other/private funding sources for recreation programming, capital improvement projects and facility maintenance. Program 5.G.1 Encourage foundations to assist with soliciting sponsorships and grants. Program 5.G.2 Create a more formalized annual or one-time sponsorship program that provides the donor with marketing and promotional opportunities. Program 5.G.3 Contract or add job responsibilities for managing fundraising and developing donors for the park system to pursue funding opportunities and sponsorships. Program 5.G.4 Engage non-profit friends groups to seek donor funding, including foundation grants, corporate giving and small and major philanthropic gifts by individuals, for priority projects and programs. New Recreation Opportunities workplan: Goal 5: Develop innovative programs, services and strategies for expanding the park and recreation system. Policy 5.D Explore alternative uses for newly acquired parkland to optimize for long-term community benefit. Program 5.D.1 Determine optimal usage for Foothill Park's 7.7 acres of parkland. Program 5.D.2 Evaluate optimal usage, including open space, for 10.5 -acre land bank created by golf course reconstruction in the Baylands. Program 5.D.3 Evaluate feasible uses for the south end of El Camino Park. Policy 5.F Enhance partnerships and collaborations with Palo Alto Unified School District and Stanford University to support access and joint use of facilities, where appropriate, for effective delivery of services and programs. Program 5.F.1 Partner with PAUSD to open middle and high school recreation facilities for community use (basketball, badminton, indoor soccer, swimming pools, tennis courts) during the evening, weekend and summer hours. The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. Foothills Nature Preserve workplan: Goal 4: Protect natural habitat and integrate nature, natural ecosystems and ecological principles throughout Palo Alto. Policy 4.A In natural open space, ensure activities, projects and programs are compatible with the protection of nature. Policy 6.D Periodically review and update existing guidance for development, operations and maintenance of Palo Alto's parks, trails, natural open space and recreation system based on the best practices in the industry and this Master Plan, including: • Park Rules and Regulations; • Open Space Policy & Procedure Handbook; • City of Palo Alto Landscape Standards; • City of Palo Alto design guidelines and standards; and • Tree Technical Manual. Capital Improvement Projects Review workplan: Goal 1: Provide high -quality facilities and services that are accessible, affordable, inclusive and distributed equitably across Palo Alto. Goal 2: Enhance the capacity, quality and variety of uses of the existing system of parks, recreation and open space facilities and services. Policy 2.A Sustain the community's investment in parks and recreation facilities. Program 2.A.2 Continue to program and prioritize projects for existing facilities as identified in the Infrastructure Blue Ribbon Commission report, and plan the upkeep of new facilities as they come on line, recognizing their expected lifespan and revising based on real -world experience. Program 2.A.4 Encourage residents to organize and participate in park maintenance and cleanup events to foster a sense of ownership, establish social connections and reduce maintenance costs. Racquet Court Policy workplan: Policy 1.F Maintain a Field and Tennis Court Brokering and Use Policy as well as the Gymnasium Use Policy (as well as any subsequent updates) to guide the allocation of these recreation facilities with a preference for youth and Palo Alto residents. Program 1.F.1 Periodically review the existing Field and Tennis Court Brokering and Use Policy and Gymnasium Policy and update as needed. Program 1.F.2 Develop an annual field usage statistics report, including the number of prime timeslots that were unused due to field condition/resting and the number of requests for field space that were unfilled due to lack of capacity. The PRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. HISTORIC RESOURCES BOARD Workplan 2021-2022 Staff Liaison Name and Contact Information: Amy French, Chief Planning Official 650-329-2336 Lead Department: Planning and Development Services General Purpose and/or Purview of Board/Commission: Palo Alto Municipal Code Chapter 2.27 Historic Resources Board, Section 2.27.040 Duties, sets the HRB's purview as follows: (a) Render advice and guidance to a property owner upon the owner's application for alteration of any historic single- family or duplex building in the downtown area and any such building designated as significant elsewhere in the city (b) Inform the ARB of the historical and/or architectural significance of historic commercial and multiple family structures in the downtown area and any such buildings designated as significant elsewhere in the City that are under review by the ARB. Submit recommendations to the ARB regarding proposed exterior alterations of such historic structures (c) Recommend to the council the designation of additional buildings and districts as historic. Research available information and add historical information to the inventory sheets of historic structures/sites. This inventory is maintained in the department of planning and development services (d) Perform such other functions as may be delegated from time to time to the HRB by the City Council Anticipated Item/Topic Description and/or Info Quarter (July 2021 — June 2022) Review Alterations to Historic Resources Review and provide recommendations on exterior alterations to historic resources (Inventory categories 1-4) in the Downtown (including SOFA) and on exterior alterations to Significant buildings (Inventory categories 1 and 2, and in Historic Districts) outside Downtown Ongoing Support Implementation of Comprehensive Plan policies Continue to support Policy L7.2 implementation (preparation of historic evaluations to determine eligibility for the California Register of Historic Resources and associated tracking) Ongoing (since 1/2018) Inventory Upgrades and nominations Review and recommend applications for Inventory category upgrades and support nominations to the City's local inventory Ongoing Improve outreach, review incentives, develop work program for FY 22-23 Review and recommend improvements to outreach materials regarding the program, including incentives for rehabilitation. Consider implementing additional historic preservation policies in the Comprehensive Plan Second half of FY 21-22 following a retreat Tailored Mills Act Program discussion Consider reconstituting an ad hoc committee for further discussion, research, and refinement of a draft; consider outreach approach for FY22-23 Ongoing Stormwater Management Oversight Committee (SWMOC) Purpose: The Stormwater Management Oversight Committee reviews the projects, prog ams and expenditures that are funded by the Stormwater Management Fees including proposed stormwater management capital improvements and confirms their conformity to the 2017 ballot measure. Approved Projects, Priorities, & Goals Project, Priority, or Goal Benefit, if completed Mandate by State or Local Law and approved by City Council? Policy Update as Directed by the City Council? _ Timeline for Completion Resources Needed Measure of Success Track and monitor 2017 Ballot Measure, which covers 13 Capital Projects. This workplan focuses on 3 projects and 1 completed project. Reduced ponding and flooding 0 Y 2032 Staff support Completion of projects Environmental protection and sustainability including regulatory and compliance goals. Regulatory compliance in alignment with the City's policy on sustainability Y 0 Ongoing Staff support Meeting sustainability goals and compliance with stormwater regulations Track and monitor implementation of Green Stormwater Infrastructure (G51) Plan. Improved water quality and environmental enhancement Y Y Ongoing Staff support, Sub -committee for financing 051 Increased acreage of stormwater treated through 011 features Prioritize Projects, Priorities, & Goals Name of Project, Priority, or Goal Priority 1: Urgent. (within 6 months) Priority 2: High (within the year) Priority 3: Medium (within 2 years) Priority 4: Low (beyond 2 years) Track and monitor 2017 Ballot Measure, which covers 13 Capital Projects. This workplan focuses on 3 projects and 1 completed project. Review completed design for 3 proposed projects to be constructed within the next 3 years. Track and monitor construction progress on Corporation Way System Upgrades & Pump Station (5D-21000). Track and monitor construction progress on W Bayshore Road Pump Station (SD -20000). Track and monitor construction progress on W Bayshore Road Trunk Line Improvements (5D - 23000). Environmental protection and sustainability including regulatory and compliance goals. 1) Committee reviews proposed Stormwater Permit and comments as needed. 2) Continue to promote stormwater rebate program (including rain barrels). 3) Communications and outreach. 1) Review action plan to meet regulatory requirements for trash reduction and review plans for the Embarcadero Trash Capture Project. 2) Where possible, consider emerging residential and commercial stormwater management technologies and techniques. 3) Provide opportunities for individual committee members to surface emerging issues. Review the changes to the stormwater ordinance to reflect updated Municipal Stormwater Permit requirements. Review trash reduction actions formulated by action plan. Track and monitor implementation of Green Stormwater Infrastructure (G51) Plan. 1) Review Greening Parking Lots Project. 2) Continue Southgate Greening Project. 3) Support completion of 011 at Bike Bridge Project. 1) Review 051 feature at Hopkins near Rinconada Park. 2) Review EPA grant -funded Greening Parking Lots Project with staff. 1) Review and comment on tool to measure impervious surface throughout City. 2) Review and comment on 051 specifications. 3) Support the Greening Parking Lots Project. Review 051 Maintenance and Monitoring Manual. Approved Projects, Priorities, and Goals Human Relations 2021 Work Commission Plan Name of Project, Priority or Goal Public Benefit Timeline for Review Resources needed, i.e. staff support, subcommittee established, etc. Metrics of effectiveness Inclusion & Belonging — Community Conversation • Community conversation about race suggestions to address individual and structural racism Summer 2021 Adhoc Subcommittee created — Commissioners Smith & Stinger Number of participants Total Number of participants first conversation about race Inclusion & Belonging — Hate Crime Policies/Hate- based Incidents (HBI) • Informational — HRC better informed of local/council hate crimes by PAPD/SCC • Public who experienced Hate Crime/HBI feels heard by HRC and Council Spring 2021 Adhoc Subcommittee needs additional member due to loss of current member Submittal of Letter to City Council on Increase of local hate crimes Housing & Homelessness • Advocate for the needs of low income/marginally housed and unhoused residents of Palo Alto • Work to ensure that city policies/practices that address issues Summer 2022 Adhoc Subcommittee needs additional member due to loss of current member To be determined Prioritize projects, priorities and goals related to the unhoused are based in compassion. • Assist the City and community as feasible in working towards housing solutions for the unhoused, including expanding safe parking programs. Public Health • Create a public awareness campaign to bring knowledge and understanding to the community, in order to lessen the stigma of mental health issues Fall 2021 Adhoc Subcommittee created - Commissioners Regehr & Savage To be determined Emerging Issues • The HRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. Ongoing Name of Project, Priority or Goal Priority 1: Urgent (within six months) Priority 2: High (within the year) Priority 3: Medium (within 2 years) Priority 4: Low (beyond 2 years) Inclusion & Belonging — Community Conversation X Inclusion & Belonging — Hate Crime Policies/Hate- based Incidents X Housing & Homelessness X Public Health X Emerging Issues X DRAFT Work Plan June 2021— May 2022 Board or Commission Name: Utilities Advisory Commission Staff Liaison Name and Contact Information: Dean Batchelor, Director of Utilities, Dean.Batchelor@CityofPaloAlto.org, 650.496.6981 Lead Department: Utilities General Purpose and/or Purview of Board/Commission: The Utilities Advisory Commission (UAC) is charged with: ✓ providing advice on acquisition and development of electric, gas, water and wastewater resources; ✓ joint action projects with other public or private entities which involve electric, gas, water or wastewater resources; ✓ environmental implications of electric, gas, water or wastewater utility projects, conservation and demand management Draft Work Plan The UAC Staff Liaison developed this draft work plan and submitted it to the City Clerk on June 9, 2021. The work plan will be reviewed by the UAC at its regularly scheduled meeting on July 7, 2021. Should there be further revisions, they will be provided to the City Council at that time. 1 Utilities Advisory Commission DRAFT Work Plan Items June 2021— May 2022 Anticipated Item/Topic Description and/or Info Timeline Electrification of the City Meet the S/CAP goals to reduce natural gas consumption by 2030. These projects are ongoing and will be discussed by the Commission on as available basis. Utilities CIPs Rebuild/repair reservoirs; Foothills water piping These projects are ongoing and will be discussed by the Commission on an as needed basis Fiber to the Home Build an infrastructure within the City to supply fiber to the community. These projects are ongoing and will be discussed by the Commission as each phase is moving forward Advanced Metering Infrastructure Project Upgrade the antiquated meter system by replacing the citywide meters (gas/electric/water) with digital meters that can be read through a software program. These projects are ongoing and will be discussed by the Commission as each phase is moving forward Commodities Rate Increases: Water, Gas and Electric (Wastewater and Storm Drain are Prop 218/26 matters) These projects are ongoing and will be discussed by the Commission as needed 2 DocuSign Envelope ID: DF22ADFC-7CF7-48CE-941A-ACB5349E443D 0 CITY OF PALO A LTO 17 TO: HONORABLE CITY COUNCIL FROM: JONATHAN LAIT, DIRECTOR DATE: JUNE 21, 2021 SUBJECT: AGENDA ITEM NO. 17 — STAFF RECOMMENDS THE CITY COUNCIL APPROVE THE BOARD'S AND COMMISSION'S 2021-2022 WORK PLANS The attached documents provide proposed work plans for the Planning and Transportation Commission (PTC) and Architectural Review Board (ARB). As noted in the staff report, these two bodies reviewed and recommended Council approval of their work plans after the publication deadline for the June 21, 2021 staff report. The PTC reviewed the work plan on June 9, 2021. The ARB reviewed the work plan on June 17, 2021. Please find the proposed work plans attached. These plans reflect the priorities of these bodies and their effort to respond to the new annual work plan policy. DocuSigned by: X29 F322E 294F6 th Jonathan Lalt C DocuSignedCe ��/by�: Ed . c lb fa8D4F9 Director of Planning & Development Services City Manager 1 of 1 DocuSign Envelope ID: DF22ADFC-7CF7-48CE-941A-ACB5349E443D July 2021— April 2022 Proposed Work Plan This Work Plan was discussed by the Planning and Transportation Commission at its regularly scheduled meeting on June 9, 2021. Additional items added, edited, or adjusted based on the PTC's discussion and subsequent motion are represented by strikeouts and underlined, italicized text. Board or Commission Name: Planning & Transportation Commission Staff Liaison Name and Contact Information: Rachael Tanner, Assistant Director of Planning and Development Services, Rachael.Tanner@CityofPaloAlto.org, 650-329-2167 Lead Department: Planning & Development Services; Office of Transportation General Purpose and/or Purview of Board/Commission: The Planning & Transportation Commission advises the City Council, Planning Director, and Transportation Director on land use and transportation matters, including the Comprehensive Plan, zoning, transportation programs, and related matters. The Commission's primary responsibilities include: • Preparing and making recommendations to the City Council on the City's Comprehensive Plan regarding development, public facilities, and transportation in Palo Alto; • Considering and making recommendations to the City Council on zoning map and zoning ordinance changes; any changes to Title 18 of the Palo Alto Municipal Code must be reviewed by the PTC and the City Council; • Reviewing and making recommendations to the City Council on subdivisions and Site and Design Reviews, on appeals on variances and use permits; • Considering other policies and programs affecting development and land use in Palo Alto for final City Council action; • Reviewing and making recommendations on individual projects as described in the Municipal Code, and Open Space development; • Reviewing and making recommendations to the City Council on transportation, parking, and other related mobility issues. Due to the nature of the PTC, the work is primarily driven by: (1) Referrals from the Council to the PTC (2) Applications submitted by the public that require review of the PTC Thus, unlike some other boards and commissions, the PTC does not necessarily develop its own list of projects, policies, and programs to tackle. The proposed work plan includes Council referrals, known applications at this time (though more may come throughout the year), and other items that may benefit from PTC input even if the input is not statutorily required. Proposed Work Plan The PTC Staff Liaison developed this proposed work plan and submitted it to the City Clerk on May 28, 2021. The PTC discussed the workplan on June 91 2021 and recommended it be forward to the City Council. 1 DocuSign Envelope ID: DF22ADFC-7CF7-48CE-941A-ACB5349E443D on June 9, 2021. Should there be further revisions will be provided to the City Council via an at places memorandum. DocuSign Envelope ID: DF22ADFC-7CF7-48CE-941A-ACB5349E443D Planning and Transportation Commission Proposed Work Plan Items July 2021— April 2022 Anticipated Item/Topic Description and/or Info Anticipated Quarter* *Quarter 1 = Jan, Feb. March 1 Quarter 2 = April, May, June 1 Quarter 3 = July, Aug. Sept. 1 Quarter 4 = Oct., Nov., Dec. Parking Action Plan update Quarterly Updates Palo Alto Bikeways Project Recommendation to Council to move forward (or not) with the project. Q3 Retail Recovery Discuss and develop recommendations for considering additional retail- like uses and the geography of the retail preservation ordinance. Direct Staff and the Planning and Transportation Commission to quickly evaluate and propose changes to enable Diverse Retail Uses in more retail sites, including food, medical, educational, financial, and professional office uses citywide or by district, and evaluate ways the City can curate a strong retail mix; and direct the Planning and Transportation Commission to evaluate and propose the geography of the Retail Preservation Ordinance in Palo Alto. Begin in Q3 with work extending into Q4 and 01 California Avenue In -Lieu Parking Discuss adjusting parking requirements related to California Avenue. Q3 Parking In -lieu ban parking policy for Downtown Consider if the current ban has effectively led to housing development downtown and how to adjust and/or continue the policy. Q3 Housing Element Housing Element update regarding the progress of the Working Group. Q3 Castilleja School Castilleja School Remanded to PTC and Amendment to Chapter 18.04 Gross Floor Area. Q3 or Q4 Safe Parking Review proposed permanent ordinance for the congregation -based safe parking program and public -land safe parking program. Q3 or Q4 Inclusionary Housing Requirements (Housing Work Plan Task 3.1) Direct Staff and the Planning and Transportation Commission to explore possible zoning amendments or other factors that could support a future 20 percent inclusionary requirement for ownership and rental housing Q3 or Q4 3 DocuSign Envelope ID: DF22ADFC-7CF7-48CE-941A-ACB5349E443D while recognizing that such analysis will be constrained without funding for additional consultant resources; and Direct Staff to return with adjustments to parking and retail standards in a manner consistent with this analysis; Develop and implement inclusionary housing requirements for rental housing. Accessory Dwelling Unit Direct the Planning and Transportation Commission (PTC) to look at deed restricted affordable ADU's; and Direct Staff to continue working with the community, including the ADU Task Force, during the PTC process. Q3 and Q4 Renter Protection Review and make recommendation regarding proposed ordinances to implement renter protection policies as directed by the City Council. Q4 Wireless Communications Ordinance Amending 18.42.110 (Wireless Communication Facilities). Q4 or 01 State Law Updates Review and make recommendations regarding code changes. Q4 or Q1 Housing Element — Site selection Review proposed housing opportunity site selected by the Working Group and make a recommendation to City Council. 01 Palo Alto Bikeways Project (Phase 2) Recommendation to Council of final project and environmental document. 01 or Q2 North Ventura Coordinated Area Plan (NVCAP) Review further refined version of Council -selected preferred plan alternative. This will include further studies of the preferred plan. 01 or Q2 Housing Element — Programs Review and make recommendation regarding Housing Element programs. 01 or Q2 Bicycle and Pedestrian Transportation Plan (BPTP) Update Study session: Plan update progress. Q2** **= Tentative Racial and Social Equity plan in a manner that promotes racial and social equity. Using • The PTC will execute this work • The PTC will join the City Council in seeking to allow dial -in and/or video -conference access to its meetings. technology can promote participation in the PTC's discussions, where the demands of time and travel may prohibit robust engagement from all stakeholders. These technologies can promote equitable access to the PTC proceedings. 4 DocuSign Envelope ID: DF22ADFC-7CF7-48CE-941A-ACB5349E443D • The PTC will seek out ways to enhance racial and social equity through the PTC's work, such as additional training on how to further racial equity through the PTC work. For example, the PTC may have a study session with the Government Alliance on Racial Equity to learn more about their work and its applicability to the PTC. Community Involvement Staff will track the number of participants, speakers, and the content of spoken or written comments. Staff will include comments expressed in report to City Council. Ad Hoc Committees May use ad hoc committees as needed depending on the project. Prioritization In addition to the projected timetables for the items above, the PTC will prioritize new items as follows: 1. Time sensitive Council items 2. Customer Applications 3. Matters requiring annual review Additional Topics • Study Session on street safety in Palo Alto. 5 DocuSign Envelope ID: DF22ADFC-7CF7-48CE-941A-ACB5349E443D CITY OF PALO ALTO ARCHITECTURAL REVIEW BOARD Workplan 2021-2022 Staff Liaison Name and Contact Information: Jodie Gerhardt, AICP, Manager of Current Planning Lead Department: Planning and Development Services (PDS) General Purpose and/or Purview of Board/Commission: The Architectural Review Board reviews and makes recommendations to the Planning Director on design and related issues for certain new construction, and changes and additions to commercial, industrial and multiple family projects, as described in the Municipal Code. The Board's goals and purposes are to: • Promote orderly and harmonious development of the City • Enhance the desirability of residence or investment in the City • Encourage the attainment of the most desirable use of land and improvements • Enhance the desirability of living conditions upon the immediate site or in adjacent areas • Promote visual environments which are of high aesthetic quality and variety and which, at the same time, are considerate of each other • To implement and enforce the city's ordinances pertaining to architecture and design The Board is composed of five members, at least three of whom are architects, landscape architects, building designers or other design professionals. Terms are for three years and commence on November 1. See Palo Alto Municipal Code (PAMC) Sections 2.16 and 2.21. Residency is not required. For the ARB webpage, go to https://www.cityofpaloalto.org/gov/boards/architectural/ Anticipated Item/Topic Description and/or Info Quarter (July 2021 — June 2022) Review of projects Review Planning applications for conformance with ARB Findings On -going Comprehensive Plan Discuss specific Goals, Policies, Programs the ARB would like to further explore/implement First/Second Quarter Objective Standards Ad Hoc Committee to work with staff, PTC, and Council to finalize the creation of Objective Standards that were approved by the full Board on April 1, 2021 First Quarter ARB Awards (every 5 years) Review projects constructed from 2015 to 2020 for ARB Awards. (Awards were postponed due to the pandemic) First/Second Quarter By-laws Update By-laws as needed to be in conformance with Council's new Handbook After Council adoption of necessary Ordinance changes The ARB is interesting in being part of height and massing discussions, as may be needed to allow increased housing in the City. The Board is also interested to know if Council would like to update the South El Camino Real Guidelines and/or create guidelines for increased densities along San Antonio Road. DocuSign Certificate Of Completion Envelope Id: DF22ADFC7CF748CE941AACB5349E443D Subject: Please DocuSign: 06-21-21-ccm-at-places-memo-item-17.pdf Source Envelope: Document Pages: 7 Signatures: 2 Certificate Pages: 2 Initials: 0 AutoNav: Enabled Envelopeld Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) Status: Completed Envelope Originator: Madina Klicheva 250 Hamilton Ave Palo Alto , CA 94301 Madina.Klicheva@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 6/17/2021 1:13:16 PM Security Appliance Status: Connected Storage Appliance Status: Connected Holder: Madina Klicheva Madina.Klicheva@CityofPaloAlto.org Pool: StateLocal Pool: City of Palo Alto Location: DocuSign Location: DocuSign Signer Events Signature Timestamp Jonathan Lait Jonathan.Lait@CityofPaloAlto.org Interim Director Planning and Community Environment City of Palo Alto Security Level: Email, Account Authentication (None) 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) Electronic Record and Signature Disclosure: Not Offered via DocuSign "-293CF322E1294F6... Signature Adoption: Uploaded Signature Image Using IP Address: 99.88.42.180 E—DocuSigned by: Ei SP:l..44 '—F2DCA19CCC8D4F9... Signature Adoption: Pre -selected Style Using IP Address: 199.33.32.254 Sent: 6/17/2021 1:13:50 PM Viewed: 6/17/2021 1:14:44 PM Signed: 6/17/2021 1:20:26 PM Sent: 6/17/2021 1:20:29 PM Viewed: 6/17/2021 1:21:25 PM Signed: 6/17/2021 1:22:30 PM 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 Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 6/17/2021 1:13:50 PM Envelope Summary Events Status Timestamps Certified Delivered Security Checked 6/17/2021 1:21:25 PM Signing Complete Security Checked 6/17/2021 1:22:30 PM Completed Security Checked 6/17/2021 1:22:30 PM Payment Events Status Timestamps CITY OF PALO ALTO CITY OF PALO ALTO OFFICE OF THE CITY ATTORNEY June 21, 2021 The Honorable City Council Palo Alto, California Adoption of an Ordinance Establishing Board and Commission Term Limits, Consolidating Appointments to March of Each Year, and Codifying the Human Relations Commission's Existing Role of Recommending Grant Funding; and Adoption of a Resolution Establishing Term Limits for the Storm Water Management Oversight Committee Recommendation As directed by the City Council, staff recommends the Council: 1. Approve the attached ordinance to amend various sections of the Palo Alto Municipal Code in order to: (1) consolidate board and commission recruitments so terms begin in March; (2) create term limits for board and commission members; and (3) codify existing duties of the Human Relations Commission; and 2. Approve the attached resolution to create term limits for the Storm Water Management Oversight Committee and align its recruitment to occur with the other boards and commissions. Background On June 1, 2021, the City Council considered staff's proposed ordinance to consolidate Board and Commission recruitments, establish term limits, and codify existing duties of the Human Relations Commission. [Link to staff report]. The Council approved the following changes to staff's proposal in the following motion (excerpt from draft minutes): MOTION AS AMENDED: Adopt an Ordinance, with adjustments on policy issues as desired, to amend various sections of the Palo Alto Municipal Code in order to: A. Create term limits for board and commission members as follows: i. Three 3 -year terms for ARB, HRB, HRC, PRC, PAC, and UAC a) Cannot serve more than 9 years consecutively ii. Two 4 -year terms for PTC and SWMOC; a) Cannot serve more than 8 years consecutively B. Approve the other staff suggested policy issues regarding term limits C. Consolidate the recruitment for all Boards and Commissions commencing in January with terms beginning in March. D. Effective date of the Ordinance would be January 1, 2022 E. Codify existing duties of the Human Relations Commission. MOTION AS AMENDED PASSED: 6-1 Cormack no Prior to the June 1, 2021 meeting, Council had last taken action on this topic on November 30, 2020 when Council gave its initial direction to staff on the contours of the ordinance. [Link to staff report and minutes]. Discussion Staff returns with the attached ordinance to implement term limits for board and commission members in alignment with Council's direction from June 1, 2021. The discussion below summarizes the changes since the June 1, 2021 proposal. Term Limits for Boards and Commissions Consistent with Council's motion above, this ordinance implements consecutive term limits for the following boards and commissions: Two Consecutive Terms Three Consecutive Terms • Planning and Transportation Commission • Architectural Review Board • Historic Resources Board • Human Relations Commission • Parks and Recreation Commission • Public Art Board • Utilities Advisory Commission Note: All of the boards and commissions above have 3 year terms, except for the Planning and Transportation Commission, which is 4 years per term. Based on the councilmembers' discussion at the June 1, 2021 council meeting, staff have interpreted the portions of the motion limiting consecutive years of service to mean that past years of service shall count toward the limit. The ordinance now counts all past service for any board or commission member serving at any time in the year prior to the ordinance's effective date of January 1, 2022. (The previous proposed ordinance limited past service to a maximum of one term). However, a current board or commission member would be able to complete their scheduled term, even if past service is more than what is allowed. Consolidation of Board & Commission Recruitments to January -March Currently, PAMC section 2.16.070 assigns each board and commission to either May or December recruitment. For those commissioners appointed during the May recruitment period, their terms begin on June 1 (or as soon as appointed thereafter). For those commissioners appointed during the December recruitment period, their terms begin on December 16 (or as soon as appointed thereafter). Terms are fixed and end on either May 31 or December 15. Current Recruitment Schedule (PAMC 2.16.070) May Recruitment (Term begins June 1, ends May 31) December Recruitment (Term begins December 16, ends Dec. 15) Page 2 • Human Relations Commission • Public Art Commission • Utilities Advisory Commission • Architectural Review Board • Historic Resources Board • Parks and Recreation Commission • Planning and Transportation Commission The ordinance will shift all the recruitments for the boards and commissions so that recruitment begins in January and all terms will begin on March 15 (or shortly thereafter if appointments are made after that date) and end on March 14 three years later (or four years in the case of the PTC). Current members of boards and commissions on the December recruitment schedule will have their terms extended by approximately three months to end on March 14 to coincide with the new recruitment period. This includes members of boards and commissions who are scheduled to be appointed in December 2021. For example, a member of the PRC is appointed on December 16, 2021. The member's term is scheduled to end on December 15, 2024; under this ordinance, their term will be extended to March 14, 2025. Current members of boards and commissions on the May recruitment schedule will have their terms extended by approximately ten months to end on March 14 to coincide with the new recruitment period. For example, a member of the HRC was appointed on June 1, 2020. The member's term is scheduled to end on May 31, 2023; under this ordinance, their term will be extended to March 14, 2024. Should a board or commission have a vacancy outside of the normal recruitment cycle, the Council may direct the City Clerk to hold a special recruitment. Resolution Establishing Term Limits and March Recruitment for the Storm Water Management Oversight Committee The City's Storm Water Management Oversight Committee was established by Resolution 9677, unlike the other boards and commissions in this report which were established by ordinance. Consistent with Council direction, staff recommend approving the attached resolution, which will put in place a two -term limit for committee members under the same rules as for the boards and commissions above. The resolution will also move recruitments from May to March, and similarly extend existing terms by about ten months to coincide with the new recruitment period. Resource Impact The consolidation of all board and commission recruitments to January -March is expected to take a larger share of both staff and Council time in the weeks preceding in order to recruit, interview, and appoint candidates to all of the boards and commissions. This work effort will no longer be needed in May or December. By consolidating to one recruitment per year, with only a possibility of a fall recruitment, would save the City for the cost of advertising in the paper and online. Page 3 Environmental Review The City Council finds that adoption of this ordinance is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA guidelines section 15061(b)(3) because it can be seen with certainty that this ordinance will not have a significant effect on the environment. ATTACHMENTS: • Attachment A - Ordinance to Consolidate the Appointment of Members to Boards and Commissions to March of Each Year; Establish Term Limits; and Codify Existing Duties of the Human Relations Commission (PDF) • Attachment B - Resolution Amending and Restating Resolution 9677 to Add Term Limits for Members of the Storm Water Management Oversight Committee and Begin Terms in March (PDF) Department Head: Molly Stump, City Attorney Page 4 Page 5 *NOT YET APPROVED* Ordinance No. Ordinance of the Council of the City of Palo Alto Amending Sections of Title 2 (Administrative Code) of the Palo Alto Municipal Code to Consolidate the Appointment of Members to Boards and Commissions to March of Each Year; Establish Term Limits to Boards and Commissions; and Codify Existing Duties of the Human Relations Commission The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and declarations. The City Council finds and declares as follows: A. The City has several statutory boards and commissions. See Palo Alto Municipal Code Chapters 2.18 et seq.; B. Existing PAMC section 2.16.070 requires that the City Council make regularly -scheduled appointments to boards and commissions in December and May of each year. Each board or commission is assigned to one of those months; C. The City Council intends to consolidate all board and commission appointments occur in March; D. The City Council intends to impose term limits to members of boards and commissions; and E. The City Council intends to codify the Human Relations Commission's existing duties of making grant recommendations under various grant programs. SECTION 2. Section 2.16.070 (Schedule of appointments) of Chapter 2.16 (Boards and Commissions Generally) of Title 2 (Administrative Code) is hereby amended as follows (additions are in underline, deletions are in strikethrough): 2.16.070 Schedule of appointments. (a) The City Council shall review applications to fill vacancies in the following boards and commissions in May -March of each year: (1) Human Relations Commission (Chapter 2.22) (2) Public Art Commission (Chapter 2.18) (3) Utilities Advisory Commission (Chapter 2.23) (4) Architectural Review Board (Chapter 2.21) (5) Historic Resources Board (Chapter 2.27) (6) Parks and Recreation Commission (Chapter 2.25) (7) Planning and Transportation Commission (Chapter 2.20) (b) The City Council shall review applications to fill vacancies in the following boards and commissions in December of each year: (1) Architectural Review Board (Chapter 2.21) (2) Historic Resources Board (Chapter 2.27) (3) Parks and Recreation Commission (Chapter 2.25)- 1 229_20210608_ts24 *NOT YET APPROVED* (4) Planning and Transportation Commission (Chapter 2.20} (eb) The City Council shall fill vacancies in all other boards and commissions in March Mayer December of each year,— or at another time, at its discretion. (4c) The City Council may fill mid-term vacancies during the next regularly scheduled recruitment for the board or commission or may hold a special recruitment, at its discretion. Special recruitments shall be subject to the requirements of Section 2.16.060. SECTION 3. Chapter 2.16 (Boards and Commissions Generally) is hereby amended to add new Section 2.16.080 (Term limits) as follows: 2.16.080 Term limits. Effective January 1, 2022, no person may serve more than three consecutive terms of office as a member of the same board or commission. This section shall apply to the boards and commissions listed in section 2.16.070(a), except for the Planning and Transportation Commission, in which no person may serve more than two consecutive terms of office as a member of the same board or commission. (a) For the purposes of this section, a -member will be considered to have served a term of office if he or she serves more than half of a standard term. For boards and commissions with three-year terms, half of the term shall be 18 months. For boards and commissions with four-year terms, half of the term shall be two years. (b) A member's service that began on or before January 1, 2022 shall count under the provisions of this section only for those members who served for at least one day on a board or commission between January 1, 2021 and January 1, 2022. Notwithstanding the previous sentence, members of boards and commissions serving as of January 1, 2022 shall be permitted to complete their term. (c) A member who has served three consecutive terms of office (or two consecutive terms of office for the Planning and Transportation Commission) may remain as a member of the same board or commission for up to six months past the end of the term if no replacement is appointed or until a replacement is appointed, whichever comes first. (d) A member who has served three consecutive terms of office (or two consecutive terms of office for the Planning and Transportation Commission) shall not be appointed to the same board or commission within one year of the last date of service. SECTION 4. Section 2.18.040 (Term of office) of Chapter 2.18 (Public Art Commission) is hereby amended as follows: 2.18.040 Term of office. Terms of office on the Public Art Commission shall be three years. Commission appointments shall be staggered so that three (3) members are appointed in 2018 and every three years thereafter, and four (4) members are appointed in 2017 and every three years thereafter. Effective January 1, 2016, terms of office due to expire on April 30 of each y ar shall be cxtcndcd to cxpirc an May 31 of the same y ar, and thereafter terms Tcrms of office shall commence on the first day of June. Effective January 1, 2022, terms of office due to expire on 2 229_20210608_ts24 *NOT YET APPROVED* May 31 of each year shall be extended to expire on the March 14 of the following year, and thereafter terms of office shall commence on March 15. If a successor is unavailable, a member may remain in office until his or her successor is appointed, subject to the limits in section 2.16.080. SECTION 5. Section 2.20.020 (Term of office) of Chapter 2.20 (Planning and Transportation Commission) is hereby amended as follows: 2.20.020 Term of office. Terms of office on the Planning and Transportation Commission shall be four years. Effective January 1, 2016, terms of office due to expire on October 31 of each y ar shall be extended to expire on December 15 of the same year, and thcr after terms of office shall commence on the sixteenth day of December Effective January 1, 2022, terms of office due to expire on December 15 of each year shall be extended to expire on March 14 of the following year, and thereafter terms of office shall commence on March 15. If a successor is unavailable, a member may remain in office until his or her successor is appointed.-, subject to the limits in section 2.16.080. SECTION 6. Section 2.21.025 (Term of office) of Chapter 2.21 (Architectural Review Board) is hereby amended as follows: 2.21.025 Term of office. Terms of office on the Architectural Review Board shall be three years. Effective January 1, 2016, the terms of office due to expire on October 31 of ach y ar shall be extended to expire on December 15 of the same year, and ther after terms of office shall commence on the sixteenth day of December. Effective January 1, 2022, terms of office due to expire on December 15 of each year shall be extended to expire on March 14 of the following year, and thereafter terms of office shall commence on March 15. If a successor is unavailable, a member may remain in office until his or her successor is appointed-, subject to the limits in section 2.16.080. SECTION 7. Section 2.22.020 (Term of office) of Chapter 2.22 (Human Relations Commission) is hereby amended as follows: 2.22.020 Term of office. Terms of office on the Human Relations Commission shall be three years. Effective January 1, 2016, terms of office due to expire on April 30 of ach year shall be extended to expire on May June. Effective January 1, 2022, terms of office due to expire on May 31 of each year shall be extended to expire on the March 14 of the following year, and thereafter terms of office shall commence on March 15. If a successor is unavailable, a member may remain in office until his or her successor is appointed.-, subject to the limits in section 2.16.080. 3 229_20210608_ts24 *NOT YET APPROVED* SECTION 8. Section 2.23.030 (Term of office) of Chapter 2.23 (Utilities Advisory Commission) is hereby amended as follows: 2.23.030 Term of office. Terms of office on the Utilities Advisory Commission shall be three years. Effective January 1, 2016, terms of office due to expire on April 30 of ach y ar shall be extended to expire on May June. Effective January 1, 2022, terms of office due to expire on May 31 of each year shall be extended to expire on the March 14 of the following year, and thereafter terms of office shall commence on March 15. Commission appointments shall be staggered so that in each three- year cycle, two members are appointed one year, two members are appointed the next year, and three members are appointed the next year. If a successor is unavailable, a member may remain in office until his or her successor is appointed.-, subject to the limits in section 2.16.080. SECTION 9. Section 2.25.030 (Term of office) of Chapter 2.25 (Parks and Recreation Commission) is hereby amended as follows: 2.25.030 Term of office. Terms of office on the parks and recreation commission shall be three years. Commission appointments shall be staggered so that in each three-year cycle three members are appointed to serve during the first year, four members are appointed to serve during the second year, and no members are appointed to serve during the third year. Effective January 1, 2016, terms of office due to expire on October 31 of each year shall be lengthened to expire on December 15 of the same ygar, and thereafter terms of office shall commence on the sixteenth day of December. Effective January 1, 2022, terms of office due to expire on December 15 of each year shall be extended to expire on March 14 of the following year, and thereafter terms of office shall commence on March 15. If a successor is unavailable, a member may remain in office until his or her successor is appointed,,-, subject to the limits in section 2.16.080. SECTION 10. Section 2.27.020 (Term of office) of Chapter 2.27 (Historic Resources Board) is hereby amended as follows: 2.27.020 Term of office. Terms of office on the Historic Resources Board shall be three years. Terms shall be staggered so that three positions are refilled one year, and four positions are refilled two years later. Effective January 1, 2016, terms of office due to expire on October 31 of each y ar shall be extended to expire on December 15 of the same ygar, and thereaftcr terms of office shall commence on the sixteenth day of December. Effective January 1, 2022, terms of office due to expire on December 15 of each year shall be extended to expire on March 14 of the following year, and thereafter terms of office shall commence on March 15. If a successor is unavailable, a member may remain in office until his or her successor is appointed..-, subject to the limits in section 2.16.080. 4 229_20210608_ts24 *NOT YET APPROVED* SECTION 11. Section 2.22.060 (Authority) of Chapter 2.22 (Human Relations Commission) is hereby amended to add new subsection (g) as follows: 2.22.060 Authority. Upon making a finding pursuant to Section 2.22.050(a), the commission may act as follows: (a) To foster public awareness and understanding of human relations problems by any means of disseminating information including, but not limited to, educational programs and printed and electronic media; (b) To facilitate resolution of problems or improvement of conditions within the jurisdiction of the commission by encouragement, persuasion and mediation and by pointing out private or public agencies which might provide assistance; (c) To make such studies which, in the judgment of the commission, might aid in affecting matters within the jurisdiction of the commission; (d) To recommend local legislation or other action to the council and to encourage the council to support or oppose state or federal legislation or regulation relating to matters within the jurisdiction of the commission; (e) To coordinate programs of the commission with similar programs by private and public agencies and organizations; a4 (f) To recommend or oppose legislation other than that of the city, provided that the city council has not taken an official position with respect to such legislation, and provided further that any communication, whether oral or written, from the commission concerning such legislation clearly indicates that such recommendation or opposition is that of the commission and is not necessarily that of the city council.-; and (g) To recommend grantees under the Human Services Resource Allocation Process, Community Development Block Grant, and Emerging Needs Fund. 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 adoption of this Ordinance is exempt from the California Environmental Quality Act as it is not a "project" within the meaning of CEQA. /1 /1 /1 // 5 229_20210608_ts24 *NOT YET APPROVED* SECTION 14. This Ordinance shall be effective on January 1, 2022. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Deputy City Attorney City Manager City Clerk Chief Transportation Official Director of Community Services Director of Planning and Development Services Director of Public Works Director of Utilities 6 229_20210608_ts24 *NOT YET APPROVED* Resolution No. Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 9677 to Add Term Limits for Members of the Storm Water Management Oversight Committee RECITALS A. On November 14, 2005, the City Council adopted Resolution No. 8573, establishing the Storm Drain Oversight Committee to review the proposed operating and capital budget of the Storm Drainage Fund and the year-end financial report documenting the expenditures of the Storm Drainage Fund in the previous fiscal year. B. On August 29, 2016, the City Council adopted Resolution No. 9624, calling a Mail Ballot Election in connection with the City's proposed Storm Water Management Fee. C. On October 24, 2016, the City Council adopted Resolution No. 9635, proposing a Storm Water Management Fee to replace the Storm Drainage Fee, calling a Public Hearing for October 24, 2016 with respect to such Fee and adopting Procedures relating to the conduct of a Protest Hearing and Mail Ballot Election. D. On May 1, 2017, the City Council adopted Resolution 9677, which replaced the Storm Drain Oversight Committee with the Storm Water Management Oversight Committee. E. The City Council now intends to impose term limits on members of the Storm Water Management Oversight Committee by amending and restating Resolution 9677 as follows below. The City Council also intends to move the recruitment period to March from the past practice of May appointments. This effort is intended to mirror the same changes being made to the codified boards and commissions in an ordinance introduced in June 2021. The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The Storm Drain Oversight Committee is decommissioned effective May 31, 2017. SECTION 2. Committee Established. The City of Palo Alto Storm Water Management Oversight Committee is hereby created to review proposed storm water management capital improvements and operating programs to be funded from the Storm Water Management Fees and to monitor expenditures of the fund. SECTION 3. Committee Membership and Appointment. The Committee shall consist of seven members who are selected and appointed by the City Council for a term of four years. Committee members shall serve without compensation. Each Committee member shall be a 1 233_20210608_ts24 *NOT YET APPROVED* resident of Palo Alto, an employee of a business located in Palo Alto or an owner of real property within the City. No member shall be a council member, officer or employee of the City. Effective January 1, 2022, terms of office due to expire on May 31 of each year shall be extended to expire on March 14 of the following year, and thereafter terms of office shall commence on March 15. SECTION 4. Term limits. Effective January 1, 2022, no person may serve more than two consecutive terms of office as a member of the Committee. (a) For the purposes of this section, a member will be considered to have served a term of office if he or she serves more than two years within one term. (b) A member's service that began on or before January 1, 2022 shall count under the provisions of this section only for those members who served for at least one day on the Committee between January 1, 2021 and January 1, 2022. Notwithstanding the previous sentence, members on Committee as of January 1, 2022 shall be permitted to complete their term. (c) A member who has served two consecutive terms of office may remain as a member of the Committee for up to six months past the end of the term if no replacement is appointed or until a replacement is appointed, whichever comes first. (d) A member who has served two consecutive terms of office shall not be appointed to the Committee within one year of the last date of service. SECTION 5. Committee Duties. The Committee shall discharge its oversight duties by: (a) Meeting at least once a year to review the proposed operating and capital budgets of the Storm Water Management Fund for the next fiscal year. The Committee shall prepare a report documenting its findings with respect to the proposed budget and submit the report to the Finance Committee of the City Council prior to June 30th each year. (b) Meeting at least once a year to review the year-end financial report documenting the expenditures of the Storm Water Management Fund in the previous fiscal year. The Committee shall prepare a report documenting its findings with respect to the expenditures and submit the report to the City Council prior to May 31st each year. SECTION 6. Meeting Procedures. The Committee shall conduct open public meetings, duly noticed in accordance with the Ralph M. Brown Act. The Committee may establish rules and procedures governing the conduct of its meetings. SECTION 7. The City Clerk is directed to place advertisements announcing Committee vacancies in a newspaper of general circulation in the City, two times within a two week period. SECTION 8. This resolution supersedes Resolution 9677. SECTION 9. This resolution shall be effective January 1, 2022. 2 233_20210608_ts24 *NOT YET APPROVED* SECTION 10. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: City Clerk Mayor APPROVED AS TO FORM: Deputy City Attorney City Manager Director of Public Works Director of Administrative Services 3 233_20210608_ts24 DocuSign Envelope ID: 9BE59BD2-345F-4E95-B165-FA4D3E99A121 CITY OF PALO ALTO TO: HONORABLE CITY COUNCIL FROM: MOLLY STUMP, CITY ATTORNEY DATE: JUNE 21, 2021 18 SUBJECT: AGENDA ITEM NUMBER 18 — TITLE: Adoption of an Ordinance Establishing Board and Commission Term Limits, Consolidating Appointments to March of Each Year, and Codifying the Human Relations Commission's Existing Role of Recommending Grant Funding; and Adoption of a Resolution Establishing Term Limits for the Storm Water Management Oversight Committee Since the original publication of this item, staff have further reviewed past recruitment schedules and now recommend beginning terms on April 1 instead of March 15. This will give Council an additional two weeks to schedule special meetings for interviews and complete the recruitment process. This modest amount of additional time may be helpful with the consolidation of all boards and commissions to a single recruitment period anticipated to start in mid -January of each year. The Council would be free to finish the recruitment process prior to April 1. Attached are the revised ordinance and resolution specifying that terms will begin on April 1, and below is the recommended motion: As directed by the City Council, staff recommends the Council: 1. Approve the ordinance attached to this At Places Memo to amend various sections of the Palo Alto Municipal Code in order to: (1) consolidate board and commission recruitments so terms begin on April 1; (2) create term limits for board and commission members; and (3) codify existing duties of the Human Relations Commission; and 2. Approve the resolution attached to this At Places Memo to create term limits for the Storm Water Management Oversight Committee and align its recruitment to occur with the other boards and commissions. ,-DocuSigned by: khakiNI �39A473B653574A9... Molly Stump City Attorney DocuSign Envelope ID: 9BE59BD2-345F-4E95-B165-FA4D3E99A121 *NOT YET APPROVED* Ordinance No. Ordinance of the Council of the City of Palo Alto Amending Sections of Title 2 (Administrative Code) of the Palo Alto Municipal Code to Consolidate the Appointment of Members to Boards and Commissions to April of Each Year; Establish Term Limits to Boards and Commissions; and Codify Existing Duties of the Human Relations Commission The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and declarations. The City Council finds and declares as follows: A. The City has several statutory boards and commissions. See Palo Alto Municipal Code Chapters 2.18 et seq.; B. Existing PAMC section 2.16.070 requires that the City Council make regularly -scheduled appointments to boards and commissions in December and May of each year. Each board or commission is assigned to one of those months; C. The City Council intends to consolidate all board and commission appointments occur by the beginning of April; D. The City Council intends to impose term limits to members of boards and commissions; and E. The City Council intends to codify the Human Relations Commission's existing duties of making grant recommendations under various grant programs. SECTION 2. Section 2.16.070 (Schedule of appointments) of Chapter 2.16 (Boards and Commissions Generally) of Title 2 (Administrative Code) is hereby amended as follows (additions are in underline, deletions are in strikethrough): 2.16.070 Schedule of appointments. (a) The City Council shall review applications to fill vacancies in the following boards and commissions in May April of each year: (1) Human Relations Commission (Chapter 2.22) (2) Public Art Commission (Chapter 2.18) (3) Utilities Advisory Commission (Chapter 2.23) (4) Architectural Review Board (Chapter 2.21) (5) Historic Resources Board (Chapter 2.27) (6) Parks and Recreation Commission (Chapter 2.25) (7) Planning and Transportation Commission (Chapter 2.20) (b) The City Council shall review applications to fill vacancies in the following boards and commissions in December of each year: (1) Architectural Review Board (Chapter 2.21) (2) Historic Resources Board (Chapter 2.27) (3) Parks and Recreation Commission (Chapter 2.25) 1 229_20210615_ts24 DocuSign Envelope ID: 9BE59BD2-345F-4E95-B165-FA4D3E99A121 *NOT YET APPROVED* (4) Planning and Transportation Commission (Chapter 2.20) (eb) The City Council shall fill vacancies in all other boards and commissions in April May or December of each year,— or at another time, at its discretion. (4c) The City Council may fill mid-term vacancies during the next regularly scheduled recruitment for the board or commission or may hold a special recruitment, at its discretion. Special recruitments shall be subject to the requirements of Section 2.16.060. SECTION 3. Chapter 2.16 (Boards and Commissions Generally) is hereby amended to add new Section 2.16.080 (Term limits) as follows: 2.16.080 Term limits. Effective January 1, 2022, no person may serve more than three consecutive terms of office as a member of the same board or commission. This section shall apply to the boards and commissions listed in section 2.16.070(a), except for the Planning and Transportation Commission, in which no person may serve more than two consecutive terms of office as a member of the same board or commission. (a) For the purposes of this section, a -member will be considered to have served a term of office if he or she serves more than half of a standard term. For boards and commissions with three-year terms, half of the term shall be 18 months. For boards and commissions with four-year terms, half of the term shall be two years. (b) A member's service that began on or before January 1, 2022 shall count under the provisions of this section only for those members who served for at least one day on a board or commission between January 1, 2021 and January 1, 2022. Notwithstanding the previous sentence, members of boards and commissions serving as of January 1, 2022 shall be permitted to complete their term. (c) A member who has served three consecutive terms of office (or two consecutive terms of office for the Planning and Transportation Commission) may remain as a member of the same board or commission for up to six months past the end of the term if no replacement is appointed or until a replacement is appointed, whichever comes first. (d) A member who has served three consecutive terms of office (or two consecutive terms of office for the Planning and Transportation Commission) shall not be appointed to the same board or commission within one year of the last date of service. SECTION 4. Section 2.18.040 (Term of office) of Chapter 2.18 (Public Art Commission) is hereby amended as follows: 2.18.040 Term of office. Terms of office on the Public Art Commission shall be three years. Commission appointments shall be staggered so that three (3) members are appointed in 2018 and every three years thereafter, and four (4) members are appointed in 2017 and every three years thereafter. extended to expire on May 31 of thc same year, and thereafter terms Terms of office shall commence on thc first day of June. Effective January 1, 20221 terms of office due to expire on 2 229_20210615_ts24 DocuSign Envelope ID: 9BE59BD2-345F-4E95-B165-FA4D3E99A121 *NOT YET APPROVED* May 31 of each year shall be extended to expire on the March 31 of the following year, and thereafter terms of office shall commence on April 1. If a successor is unavailable, a member may remain in office until his or her successor is appointed, subject to the limits in section 2.16.080. SECTION 5. Section 2.20.020 (Term of office) of Chapter 2.20 (Planning and Transportation Commission) is hereby amended as follows: 2.20.020 Term of office. Terms of office on the Planning and Transportation Commission shall be four years. Effective January 1, 2016, terms of office due to expire on October 31 of och y ar shall be extended to expire on December 15 of the same y ar, and ther after terms of office shall commence on the sixteenth day of December Effective January 1, 2022, terms of office due to expire on December 15 of each year shall be extended to expire on March 31 of the following year, and thereafter terms of office shall commence on April 1. If a successor is unavailable, a member may remain in office until his or her successor is appointed:, subject to the limits in section 2.16.080. SECTION 6. Section 2.21.025 (Term of office) of Chapter 2.21 (Architectural Review Board) is hereby amended as follows: 2.21.025 Term of office. Terms of office on the Architectural Review Board shall be three years. Effective January 1, 2016, the terms of office due to expire on October 31 of ach y ar shall be extended to expire on December 15 of the same year, and ther after terms of office shall commence on the sixteenth day of December. Effective January 1, 2022, terms of office due to expire on December 15 of each year shall be extended to expire on March 31 of the following year, and thereafter terms of office shall commence on April 1. If a successor is unavailable, a member may remain in office until his or her successor is appointed.-, subject to the limits in section 2.16.080. SECTION 7. Section 2.22.020 (Term of office) of Chapter 2.22 (Human Relations Commission) is hereby amended as follows: 2.22.020 Term of office. Terms of office on the Human Relations Commission shall be three years. Effective January 1, 2016, terms of office due to expire on April 30 of ach y ar shall be extended to expire on May 31 of the same year, and thcr after termsTerms of office shall commence on the first day of June. Effective January 1, 2022, terms of office due to expire on May 31 of each year shall be extended to expire on the March 31 of the following year, and thereafter terms of office shall commence on April 1. If a successor is unavailable, a member may remain in office until his or her successor is appointed.-, subject to the limits in section 2.16.080. 3 229_20210615_ts24 DocuSign Envelope ID: 9BE59BD2-345F-4E95-B165-FA4D3E99A121 *NOT YET APPROVED* SECTION 8. Section 2.23.030 (Term of office) of Chapter 2.23 (Utilities Advisory Commission) is hereby amended as follows: 2.23.030 Term of office. Terms of office on the Utilities Advisory Commission shall be three years. Effective January 1, 2016, terms of office due to expire on April 30 of each year shall be extended to expire on May 31 of the same year, and thereafter tcrmsTerms-af-eff-i-Ec `hall n the first da„ of June. Effective January 1, 2022, terms of office due to expire on May 31 of each year shall be extended to expire on the March 31 of the following year, and thereafter terms of office shall commence on April 1. Commission appointments shall be staggered so that in each three-year cycle, two members are appointed one year, two members are appointed the next year, and three members are appointed the next year. If a successor is unavailable, a member may remain in office until his or her successor is appointed..-, subject to the limits in section 2.16.080. SECTION 9. Section 2.25.030 (Term of office) of Chapter 2.25 (Parks and Recreation Commission) is hereby amended as follows: 2.25.030 Term of office. Terms of office on the parks and recreation commission shall be three years. Commission appointments shall be staggered so that in each three-year cycle three members are appointed to serve during the first year, four members are appointed to serve during the second year, and no members are appointed to serve during the third year. Effective January 1, 2016, terms of office due to expire on October 31 of each y ar shall be lengthened to expire on December 15 of the same year, and ther after terms of office shall commence on the sixteenth day of December. Effective January 1, 2022, terms of office due to expire on December 15 of each year shall be extended to expire on March 31 of the following year, and thereafter terms of office shall commence on April 1. If a successor is unavailable, a member may remain in office until his or her successor is appointed,,-, subject to the limits in section 2.16.080. SECTION 10. Section 2.27.020 (Term of office) of Chapter 2.27 (Historic Resources Board) is hereby amended as follows: 2.27.020 Term of office. Terms of office on the Historic Resources Board shall be three years. Terms shall be staggered so that three positions are refilled one year, and four positions are refilled two years later. Effective January 1, 2016, terms of office due to expire on October 31 of each year shall be extended to expire on December 15 of the same year, and ther after terms of office shall commence on the sixteenth day of December. Effective January 1, 2022, terms of office due to expire on December 15 of each year shall be extended to expire on March 31 of the following year, and thereafter terms of office shall commence on April 1. If a successor is unavailable, a member may remain in office until his or her successor is appointed,,-, subject to the limits in section 2.16.080. 4 229_20210615_ts24 DocuSign Envelope ID: 9BE59BD2-345F-4E95-B165-FA4D3E99A121 *NOT YET APPROVED* SECTION 11. Section 2.22.060 (Authority) of Chapter 2.22 (Human Relations Commission) is hereby amended to add new subsection (g) as follows: 2.22.060 Authority. Upon making a finding pursuant to Section 2.22.050(a), the commission may act as follows: (a) To foster public awareness and understanding of human relations problems by any means of disseminating information including, but not limited to, educational programs and printed and electronic media; (b) To facilitate resolution of problems or improvement of conditions within the jurisdiction of the commission by encouragement, persuasion and mediation and by pointing out private or public agencies which might provide assistance; (c) To make such studies which, in the judgment of the commission, might aid in affecting matters within the jurisdiction of the commission; (d) To recommend local legislation or other action to the council and to encourage the council to support or oppose state or federal legislation or regulation relating to matters within the jurisdiction of the commission; (e) To coordinate programs of the commission with similar programs by private and public agencies and organizations; a (f) To recommend or oppose legislation other than that of the city, provided that the city council has not taken an official position with respect to such legislation, and provided further that any communication, whether oral or written, from the commission concerning such legislation clearly indicates that such recommendation or opposition is that of the commission and is not necessarily that of the city council.-; and (g) To recommend grantees under the Human Services Resource Allocation Process, Community Development Block Grant, and Emerging Needs Fund. 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 adoption of this Ordinance is exempt from the California Environmental Quality Act as it is not a "project" within the meaning of CEQA. /1 /1 /1 5 229_20210615_ts24 DocuSign Envelope ID: 9BE59BD2-345F-4E95-B165-FA4D3E99A121 *NOT YET APPROVED* SECTION 14. This Ordinance shall be effective on January 1, 2022. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Deputy City Attorney City Manager City Clerk Chief Transportation Official Director of Community Services Director of Planning and Development Services Director of Public Works Director of Utilities 6 229_20210615_ts24 DocuSign Envelope ID: 9BE59BD2-345F-4E95-B165-FA4D3E99A121 *NOT YET APPROVED* Resolution No. Resolution of the Council of the City of Palo Alto Amending and Restating Resolution 9677 to Add Term Limits for Members of the Storm Water Management Oversight Committee RECITALS A. On November 14, 2005, the City Council adopted Resolution No. 8573, establishing the Storm Drain Oversight Committee to review the proposed operating and capital budget of the Storm Drainage Fund and the year-end financial report documenting the expenditures of the Storm Drainage Fund in the previous fiscal year. B. On August 29, 2016, the City Council adopted Resolution No. 9624, calling a Mail Ballot Election in connection with the City's proposed Storm Water Management Fee. C. On October 24, 2016, the City Council adopted Resolution No. 9635, proposing a Storm Water Management Fee to replace the Storm Drainage Fee, calling a Public Hearing for October 24, 2016 with respect to such Fee and adopting Procedures relating to the conduct of a Protest Hearing and Mail Ballot Election. D. On May 1, 2017, the City Council adopted Resolution 9677, which replaced the Storm Drain Oversight Committee with the Storm Water Management Oversight Committee. E. The City Council now intends to impose term limits on members of the Storm Water Management Oversight Committee by amending and restating Resolution 9677 as follows below. The City Council also intends to move the recruitment period to end with appointments in April from the past practice of May appointments. This effort is intended to mirror the same changes being made to the codified boards and commissions in an ordinance introduced in June 2021. The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. The Storm Drain Oversight Committee is decommissioned effective May 31, 2017. SECTION 2. Committee Established. The City of Palo Alto Storm Water Management Oversight Committee is hereby created to review proposed storm water management capital improvements and operating programs to be funded from the Storm Water Management Fees and to monitor expenditures of the fund. SECTION 3. Committee Membership and Appointment. The Committee shall consist of seven members who are selected and appointed by the City Council for a term of four years. 1 233_20210615_ts24 DocuSign Envelope ID: 9BE59BD2-345F-4E95-B165-FA4D3E99A121 *NOT YET APPROVED* Committee members shall serve without compensation. Each Committee member shall be a resident of Palo Alto, an employee of a business located in Palo Alto or an owner of real property within the City. No member shall be a council member, officer or employee of the City. Effective January 1, 2022, terms of office due to expire on May 31 of each year shall be extended to expire on March 31 of the following year, and thereafter terms of office shall commence on April 1. SECTION 4. Term limits. Effective January 1, 2022, no person may serve more than two consecutive terms of office as a member of the Committee. (a) For the purposes of this section, a member will be considered to have served a term of office if he or she serves more than two years within one term. (b) A member's service that began on or before January 1, 2022 shall count under the provisions of this section only for those members who served for at least one day on the Committee between January 1, 2021 and January 1, 2022. Notwithstanding the previous sentence, members on Committee as of January 1, 2022 shall be permitted to complete their term. (c) A member who has served two consecutive terms of office may remain as a member of the Committee for up to six months past the end of the term if no replacement is appointed or until a replacement is appointed, whichever comes first. (d) A member who has served two consecutive terms of office shall not be appointed to the Committee within one year of the last date of service. SECTION 5. Committee Duties. The Committee shall discharge its oversight duties by: (a) Meeting at least once a year to review the proposed operating and capital budgets of the Storm Water Management Fund for the next fiscal year. The Committee shall prepare a report documenting its findings with respect to the proposed budget and submit the report to the Finance Committee of the City Council prior to June 30th each year. (b) Meeting at least once a year to review the year-end financial report documenting the expenditures of the Storm Water Management Fund in the previous fiscal year. The Committee shall prepare a report documenting its findings with respect to the expenditures and submit the report to the City Council prior to May 31st each year. SECTION 6. Meeting Procedures. The Committee shall conduct open public meetings, duly noticed in accordance with the Ralph M. Brown Act. The Committee may establish rules and procedures governing the conduct of its meetings. SECTION 7. The City Clerk is directed to place advertisements announcing Committee vacancies in a newspaper of general circulation in the City, two times within a two week period. SECTION 8. This resolution supersedes Resolution 9677. SECTION 9. This resolution shall be effective January 1, 2022. 2 233_20210615_ts24 DocuSign Envelope ID: 9BE59BD2-345F-4E95-B165-FA4D3E99A121 *NOT YET APPROVED* SECTION 10. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: City Clerk Mayor APPROVED AS TO FORM: Deputy City Attorney City Manager Director of Public Works Director of Administrative Services 3 233_20210615_ts24 DocuSign Certificate Of Completion Envelope Id: 9BE59BD2345F4E95B165FA4D3E99A121 Subject: Please DocuSign: 6-21-2021 Item #18 At Place Memo.pdf Source Envelope: Document Pages: 10 Signatures: 1 Certificate Pages: 1 Initials: 0 AutoNav: Enabled Envelopeld Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) Status: Completed Envelope Originator: Bella Wu 250 Hamilton Ave Palo Alto , CA 94301 Bella.Wu@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original 6/15/2021 2:53:37 PM Security Appliance Status: Connected Storage Appliance Status: Connected Holder: Bella Wu Bella.Wu@cityofpaloalto.org Pool: StateLocal Pool: City of Palo Alto Location: DocuSign Location: DocuSign Signer Events Signature Timestamp Molly Stump molly.stump@cityofpaloalto.org City Attorney City of Palo Alto Security Level: Email, Account Authentication (None) Electronic Record and Signature Disclosure: Not Offered via DocuSign 1-DocuSigned by: Sfugp '-39A473B653574A9... Signature Adoption: Pre -selected Style Using IP Address: 199.33.32.254 Sent: 6/15/2021 2:56:42 PM Resent: 6/16/2021 9:45:34 AM Viewed: 6/16/2021 2:46:01 PM Signed: 6/16/2021 2:46:49 PM 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 Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Certified Delivered Signing Complete Completed Hashed/Encrypted Security Checked Security Checked Security Checked 6/15/2021 2:56:42 PM 6/16/2021 2:46:01 PM 6/16/2021 2:46:49 PM 6/16/2021 2:46:49 PM Payment Events Status Timestamps CVTY 0 PALO ALTO City of Palo Alto (ID # 12365) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: Second Reading: Temporarily Continuing the Expansion of Outdoor Dining, Retail and Other Activities Title: SECOND READING: Adoption of an Interim Ordinance of the Council Temporarily Continuing the Expansion of Outdoor Dining, Retail and Other Activities on Public and Private Property and Relaxing Regulations Regarding Onsite Parking, On -site Sale of Alcohol, Design/Architectural Review, Permit Fees, and Alcohol Consumption in Public Places, All to Facilitate Such Outdoor use (FIRST READING: June 7, 2021 PASSED: 5-2 DuBois, Kou no) From: City Manager Lead Department: City Clerk This was heard by the City Council on June 7, 2021 for a first reading. No changes were made to the Ordinance; it is now before you for a second reading. Attachments: • Attachment A: Ordinance Continuing Expansion of Outdoor Dining City of Palo Alto Page 1 *NOT YET APPROVED* Ordinance No. Interim Ordinance of the Council of the City of Palo Alto Temporarily Continuing the Expansion of Outdoor Dining, Retail and Other Activities on Public and Private Property and Relaxing Regulations Regarding Onsite Parking, On -Sale of Alcohol, Design/Architectural Review, Permit Fees, and Alcohol Consumption in Public Places, All to Facilitate Such Outdoor Use The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. On June 23, 2020, the City Council adopted Ordinance 5500, an emergency ordinance, in response to COVID-19 and its effects on local businesses. At that time and since then, county and state regulations related to COVID-19 have limited or curtailed many indoor activities, including dining, bars, retail, performances, and other recreational uses. B. Ordinance 5500 will sunset at the same time the City's declaration of local emergency due to COVID-19 is rescinded. (See section 14 of Ordinance 5500). C. The State of California has indicated that its COVID-19 related regulations for most businesses may end in June 2021 with the end of the state's "Blueprint for a Safer Economy," also known as the four -tiered system of regulations for businesses based on several COVID-19 public health metrics. In recent months, the County of Santa Clara has progressed from the highest level of restrictions, the purple tier, to the lowest yellow tier within the state's Blueprint for a Safer Economy. D. Through this Ordinance, the City Council desires to temporarily continue the provisions of Ordinance 5500 even if state, county, and/or City regulations related to COVID-19 become less restrictive or are rescinded completely. SECTION 2. City Manager Authorization The City Manager or his or her designee(s) may promulgate guidelines and implementing regulations for the uses and programs described in this Ordinance as long as such regulations do not conflict with this Ordinance. SECTION 3. Fee Waivers for Encroachment Permits and Parking Space Closures A. The permit fees set forth in the Municipal Fee Schedule are temporarily waived for applications for encroachment permits under Palo Alto Municipal Code Section 12.12.010 and Section 12.12.020, as modified by this Ordinance, to place structures and equipment 0230_20210525_ts24 1 *NOT YET APPROVED* in the public right-of-way (including closed streets and sidewalks) for purposes of outdoor dining and outdoor retail sales and display of wares. B. The parking space closure fee in the Municipal Fee Schedule collected by the Department of Planning and Development Services is temporarily waived for the use of a parking space(s) on -street or in a parking lot for purposes of outdoor dining and outdoor retail sales and display of wares as authorized through an encroachment permit, license, or agreement with the City. SECTION 4. Modified Review Process for Commercial Sidewalk Encroachment Permits Notwithstanding contrary provisions of PAMC Section 12.12.020, permits may be granted for commercial sidewalk encroachments for outdoor retail sales and display areas and outdoor eating areas. Permits for these purposes shall not be required to undergo and complete design review by the Planning Department described in subsection (d) of Section 12.12.020. Except as expressly modified herein, the provisions of Section 12.12.020 shall apply to commercial sidewalk encroachments. SECTION 5. Eating and Drinking Establishments Eating establishments, and drinking establishments may temporarily relocate some or all of their existing indoor seating capacity to outdoor seating capacity, as follows: A. Location. Outdoor eating areas may be placed in one or more of the following areas: 1. Public streets temporarily closed by the City of Palo Alto, through issuance of an encroachment permit under PAMC Section 12.12.010; 2. Sidewalks through issuance of an encroachment permit under PAMC Section 12.12.020, as modified by Section 4 of this Ordinance; 3. In on -street parking spaces approved for use as temporary parklets, in accordance with the Pilot Parklet Demonstration Project as first approved by Council Resolution No. 9909 and continued by subsequent resolutions; 4. Surface parking lots that currently provide required onsite parking for the eating/drinking establishment, through issuance of an approval by the Director of Planning, or his or her designee, as described in subsections C and D of this Section, below; 5. Other outdoor areas on the eating/drinking establishment site not originally permitted for outdoor seating in the establishment's approved site plan or planning entitlement (such as landscaped areas), through issuance of an approval by the 0230_20210525_ts24 2 *NOT YET APPROVED* Director of Planning, or his or her designee, in accordance with subsections C and D of this Section, below; and 6. In other areas that the Council identifies by resolution or ordinance. B. Use of Private Parking Lots —Temporary Reduction of Parking Requirements. 1. Notwithstanding the parking requirements applicable to eating/drinking establishments in Title 18 (Zoning) of the PAMC or in individual planning entitlements or approvals for eating/drinking establishments, an eating/drinking establishment may place outdoor eating areas in its parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles. If the establishment's parking lot has ten or fewer parking spaces, up to 100 percent of the parking lot may be used for outdoor eating, subject to review and approval of the Planning Director or his or her designee. 2. Notwithstanding the parking requirements applicable to shopping centers and their tenant businesses in Title 18 (Zoning) of the PAMC or in individual planning entitlements or approvals for shopping centers or their tenant businesses, a shopping center with an eating/drinking establishment tenant(s) may place outdoor eating areas for such tenant business(es) in the shopping center parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles. C. Application. An application in a form approved by the Director of Planning shall be submitted to the Planning and Development Services Department to relocate some or all of an eating/drinking establishment's permitted indoor restaurant seating to outdoor seating in privately -owned areas on the eating/drinking establishment site not originally permitted for outdoor eating. The Director of Planning is authorized to establish submittal requirements and procedures. Temporary Use Permits (TUP) under PAMC Section 18.42.050 may be utilized for this purpose. A TUP issued for this purpose may be valid for a specified period longer than 45 days, notwithstanding subsection (d) of Section 18.42.050. The Planning Director may extend a TUP issued prior to the effective date of this Ordinance to be valid beyond 45 days. D. Seating Layout Review. A Seating Layout Review is required to relocate some or all of an eating/drinking establishment's permitted indoor seating to outdoor seating in privately - owned areas on the eating/drinking establishment site not originally permitted for outdoor eating. The Seating Layout Review shall be conducted by a transportation planner, planner, and/or fire inspector who will review and either approve or require modifications to the proposed outdoor seating layout based on the following criteria: 1. Seating layout does not create a safety risk and adequate pedestrian and vehicular separation is maintained, including with movable barriers as appropriate where 0230_20210525_ts24 3 *NOT YET APPROVED* outdoor seating is to be placed in parking lots or on -street parking spaces. 2. Seating layout accommodates appropriate vehicle and pedestrian circulation and maintains adequate paths of travel and complies with accessibility requirements of the Americans with Disabilities Act. 3. Any tents must comply with fire codes and Palo Alto Fire Department issued standards for tents, and safety standards set forth by the National Fire Protection Association for fire-resistant tents and must include an affixed manufacturer's label stating the tent meets NFPA requirements. A State Fire Marshal seal on the tent or a certificate is needed to prove treatment. 4. Any heaters must comply with fire codes. 5. An adequate and visible barrier is placed that clearly separates the retail area from the parking area and provides sufficient protection for patrons. Adequacy shall be defined in standards and guidelines issued by the Director of Planning. 6. Other requirements established in the standards and guidelines issued by the Director of Planning. E. Fee. No fee will be charged for submittal and review of the Application and for conducting a Seating Layout Review. F. Occupancy. Total seating occupancy (including all indoor and outdoor seating) shall not exceed the overall occupancy for which the restaurant is permitted. G. Alcohol Service. Establishments that are allowed by the City to serve alcohol for onsite consumption by issuance of a conditional use permit ("CUP") as required by PAMC Section 18.42.090 or as a legal nonconforming use, and that both have an on -sale license from the Department of Alcoholic Beverage Control ("ABC") and are duly authorized by ABC to serve alcohol in outdoor areas, shall be allowed to serve alcohol for onsite consumption in such outdoor areas, notwithstanding any prohibition on outdoor alcohol service or consumption in the PAMC or planning entitlement issued under Title 18 (Zoning) of the PAMC. During the effective period of this Ordinance, establishments that meet the preceding requirements may expand their footprint to outdoor areas without an amendment of the CUP, notwithstanding PAMC Section 18.42.090(c). Outdoor alcohol service shall be in full compliance with ABC regulations, as amended. H. No Architectural Review. Notwithstanding PAMC Sections 18.77.077 and 18.76.020, architectural review shall not be required for proposed outdoor eating areas or signage related to such areas during the effective period of this Ordinance. 0230_20210525_ts24 4 *NOT YET APPROVED* SECTION 6. Retail Establishments Retail establishments may temporarily relocate some or all of their existing customer -accessible square footage to outdoor spaces as follows: A. Location. Outdoor retail sales and display areas and outdoor eating areas may be placed in one or more of the following areas: 1. Public streets temporarily closed by the City of Palo Alto, through issuance of an encroachment permit under PAMC Section 12.12.010; 2. Sidewalks through issuance of an encroachment permit under PAMC Section 12.12.020, as modified by Section 4 of this Ordinance; 3. Surface parking lots that currently provide required onsite parking for the retail establishment, through issuance of an approval by the Director of Planning, or his or her designee, as described in subsections C and D of this Section, below; 4. Other outdoor areas on the retail establishment site not originally permitted for retail sales and display or dining in the retail establishment's approved site plan or planning entitlement (such as landscaped areas), through issuance of an approval by the Director of Planning or his or her designee in accordance with subsections C and D of this Section, below; and 5. In other areas that the Council identifies by resolution or ordinance. B. Use of Private Parking Lots —Temporary Reduction of Parking Requirements. 1. Notwithstanding the parking requirements applicable to retail establishments in Title 18 (Zoning) of the PAMC or in individual planning entitlements or approvals for retail establishments, a retail establishment may conduct outdoor retail sales and display and may place outdoor eating areas in its parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles. If the establishment's parking lot has ten or fewer parking spaces, up to 100 percent of the parking lot may be used for outdoor dining/retail, subject to review and approval of the Planning Director or his or her designee. 2. Notwithstanding the parking requirements applicable to shopping centers and their tenant businesses in Title 18 (Zoning) of the PAMC or in individual planning entitlements or approvals for shopping centers or their tenant businesses, a shopping center with a retail establishment tenant(s) may place outdoor retail sales and display areas and outdoor eating areas for such tenant business(es) in the shopping center parking lot, so long as at least half of the parking spaces on the subject site remain available for use by vehicles. 0230_20210525_ts24 5 *NOT YET APPROVED* C. Application. An application in a form approved by the Director of Planning shall be submitted to the Planning and Development Services Department to relocate some or all of a retail establishment's customer -accessible square footage to outdoor retail sales and display in privately -owned areas on the retail establishment site not originally permitted for outdoor retail sales and display. The Director of Planning is authorized to establish submittal requirements and procedures. Temporary Use Permits (TUP) under PAMC Section 18.42.050 may be utilized for this purpose. A TUP issued for this purpose may be valid for a specified period longer than 45 days, notwithstanding subsection (d) of Section 18.42.050. The Planning Director may extend a TUP issued prior to the effective date of this Ordinance to be valid beyond 45 days. D. Merchandise or Seating Layout Review. A Layout Review is required to relocate some or all of an retail establishment's permitted indoor customer -accessible square footage to privately -owned areas on the retail establishment site not originally permitted for retail. The Layout Review shall be conducted by a transportation planner, planner, and/or fire inspector who will review and either approve or require modifications to the proposed retail layout based on the following criteria: 1. The placement of the merchandise, displays, or other items does not create a safety risk and adequate pedestrian and vehicular separation is maintained, including with movable barriers as appropriate where outdoor seating is to be placed in parking lots or on -street parking spaces. 2. The layout accommodates appropriate vehicle and pedestrian circulation and maintains adequate paths of travel and complies with accessibility requirements of the Americans with Disabilities Act. 3. Any tents must comply with fire codes and Palo Alto Fire Department issued standards for tents, and safety standards set forth by the National Fire Protection Association for fire-resistant tents and must include an affixed manufacturer's label stating the tent meets NFPA requirements. A State Fire Marshal seal on the tent or a certificate is needed to prove treatment. 4. Any heaters must comply with fire codes. 5. An adequate and visible barrier is placed that clearly separates the retail area from the parking area and provides sufficient protection for patrons. Adequacy shall be defined in standards and guidelines issued by the Director of Planning. 6. Other requirements established in the standards and guidelines issued by the Director of Planning. 0230_20210525_ts24 6 *NOT YET APPROVED* E. Fee. No fee will be charged for submittal and review of the Application and for conducting a Layout Review. F. No Architectural Review. Notwithstanding PAMC Sections 18.77.077 and 18.76.020, architectural review shall not be required for proposed outdoor retail areas or signage related to such areas during the effective period of this Ordinance. SECTION 7. Compliance with Other Regulations, Orders and Approvals The uses of public and private property allowed in this Ordinance shall be conducted in compliance with any applicable state or county mandate (including executive orders and health orders), this Ordinance, Resolution No. 9909 and its successors, and all other local and state regulations, orders, and approvals, as applicable (collectively, "Applicable Law"). Any approval, allowance or permit to conduct such temporary outdoor use(s) shall be subject to revocation by the issuing City official if the use is conducted in violation of Applicable Law, or poses a threat to public health, safety or welfare. SECTION 8. No Vested Rights The outdoor uses of public and private property allowed in this Ordinance are temporary and shall be terminated upon the earlier of the date stated in the applicable permit/approval or the expiration of this interim Ordinance, unless earlier revoked by the City Manager or other authorized official (or their designee) or terminated by action of the City Council. The City may discontinue one or more, or all, of the allowed outdoor uses at any time if the City Manager or designee determines that the public health, safety or welfare warrant such action. Nothing in this Ordinance shall establish a vested right. SECTION 9. Suspension of Prohibition on Alcohol Consumption in Lytton Plaza and Cogswell Plaza Notwithstanding PAMC Sections 22.04.330 and 22.04.331, the City Manager is authorized to suspend the prohibition on consumption of alcoholic beverages in the parking lots adjacent to Lytton Plaza and Cogswell Plaza. SECTION 10. Use of City Parking Lots for Reopening Activities A. The City Manager, or his or her designee ("City Manager"), is authorized to permit outdoor dining, retail and other activities necessary to facilitate the reopening of businesses, in public parking lots owned by the City, subject to the City Manager's adoption of rules, regulations, guidelines, and standards for such use ("Regulations"), and publication of such Regulations on the City's website. Use of parking lots, or portions thereof, by a business shall require a license or other agreement, including an agreement to indemnify and hold harmless the City, and provision of insurance. 0230_20210525_ts24 7 *NOT YET APPROVED* B. The City Manager is authorized to waive any fee in the Municipal Fee Schedule associated with the temporary use of parking areas for the purposes identified in Section A above. C. Notwithstanding PAMC Section 9.04.020, the City Manager is authorized to suspend the prohibition on consumption of alcoholic beverages in any City owned parking lot. SECTION 11. Personal Services, Indoor Recreation and Other Uses The authorized outdoor uses of public and private spaces authorized in this Ordinance may be applied to personal services, indoor recreation and other uses. Prior to authorizing these additional activities to occur, the City Manager, or his or her designee ("City Manager"), shall adopt rules, regulations, guidelines, and standards for these uses, and publish them on the City's website. SECTION 12. Severability 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. Environmental Review The Council finds that the Ordinance is categorically exempt from CEQA under CEQA Guidelines Sections 15301 (existing facilities) and 15304(e) (minor temporary use of land having negligible or no permanent effects on the environment). SECTION 14. Effective Date This Ordinance shall be effective 31 days after adoption and shall remain in effect until December 31, 2021 unless otherwise modified, repealed or extended by the City Council. // // // // // 0230_20210525_ts24 8 *NOT YET APPROVED* SECTION 15. Uncodified This Ordinance shall not be codified. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: City Clerk APPROVED AS TO FORM: Mayor APPROVED: Deputy City Attorney City Manager Director of Public Works Director of Planning & Development Services 0230_20210525_ts24 9 CVTY 0 PALO ALTO City of Palo Alto (ID # 12303) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2022 Title: PUBLIC HEARING: Adoption of a Resolution Determining the City's Proposition 4 Appropriations Limit (Gann Limit) for Fiscal Year 2022 From: City Manager Lead Department: Administrative Services Recommendation Staff recommends the Council adopt the attached Resolution determining the Proposition 4 (GANN) Appropriations Limit for Fiscal Year 2022 (Attachment A). The City's Fiscal Year 2022 appropriations are estimated to be $63.07 million under the limit based on the Fiscal Year 2022 Budget, as recommended to the City Council for review and adoption on June 21, 2021. Background California voters approved an initiative on November 6, 1979 that added Article XIIIB to the State Constitution, as amended by Proposition 98 in 1988 and Proposition 111 in 1990. The provisions of this article place limits on the amount of revenue that can be appropriated by all entities of government. The Appropriation Limit is based on actual appropriations during the 1978-1979 fiscal year, as increased each year using specified population and inflationary growth factors. The original legislation implementing the provisions of Article XIIIB became effective January 1, 1981. In accordance with that legislation, the governing body of each government jurisdiction must, by resolution, establish its annual Appropriation Limit for the coming year (prior to July 1) at a regularly scheduled meeting or noticed special meeting. Based on Article XIIIB, the City of Palo Alto can use the larger of two measurements of population growth, (county or city population growth) in the Appropriations Limit calculation. For Fiscal Year 2022, the City is using the 2020-2021 percent change in population growth of Santa Clara County in the calculation. The City typically uses the highest factor in order to provide maximum appropriation flexibility. City of Palo Alto Page 1 Discussion The Appropriations Limit is adjusted annually on the basis of population and per capita income changes provided annually by the California Department of Finance. This updated information is received from the California Department of Finance in May, after the City's proposed budget has been submitted to Council. Attached is the final Appropriations Limit calculation, based on the updated information as well as allowable appropriation limit adjustment factors such as voter -approved debt and capital outlay expenditures. The Appropriations Limit for Fiscal Year 2022 is $190.16 million for funds subject to the appropriation limits. The City's Fiscal Year 2022 budgeted appropriations are estimated to be $63.07 million under the limit. As required by state law, documentation used to compute the Appropriations Limit has been made available to the public at least fifteen days prior to the Council meeting at which the Appropriations Limit is being adopted, and notice was published of the availability of these materials. Resource Impact The adoption of the Fiscal Year 2022 Appropriations Limit has no impact on City resources. Policy Implications This recommendation is consistent with existing City policies. Environmental Review This is not a project under section 21065 of the California Environmental Quality Act. Attachments: • Attachment A: GANN Resolution FY 2022 • Attachment A, Exhibit 1: GANN Limit Compliance Calculation City of Palo Alto Page 2 NOT YET APPROVED ATTACHMENT A Resolution No. Resolution of the Council of the City of Palo Alto Determining the Calculation of the Appropriations Limit for Fiscal Year 2022 RECITALS 1. Under Article XI II B of the Constitution of the State of California, the City of Palo Alto (City) may not appropriate any proceeds of taxes in excess of its appropriations limit (Limit); and WHEREAS, since fiscal year 1991, the City is permitted to annually adjust its Limit in accordance with inflation and population adjustment factors; and 2. Pursuant to Government Code Section 37200, the calculation of the Limit and the total appropriations subject to the limit were set forth in the annual budget of the City for Fiscal Year 2022, which was adopted by ordinance of the Council on June 21, 2021; and 3. Pursuant to Government Code sections 7901 and 7910, the final calculation of the Limit has been determined, and the adjustment factors on which the calculation is based are a 5.73% percent change in California per capita income and a -0.56% percent change in the population growth for the County of Santa Clara; and 4. The documentation used in the determination of the Limit has been made available to the general public for fifteen (15) days prior to the date of adoption of this resolution; and 5. According to the final calculation, the City's net appropriations subject to limitation are approximately $127.09 million. NOW THEREFORE THE CITY COUNCIL OF THE CITY OF PALO ALTO RESOLVES AS FOLLOWS: SECTION 1. The Council of the City of Palo Alto hereby finds that, for Fiscal Year 2022, the final calculation of the Appropriations Limit of the City of Palo Alto has been determined in accordance with the adjustment factors referred to above, the documentation used in the determination of the calculation has been made available to the general public for the period of fifteen days as required by law, and the City's appropriations subject to limitation are under the Limit by approximately $63.07 million. 1 NOT YET APPROVED ATTACHMENT A SECTION 2. The Council hereby adopts the final calculation of the Appropriations Limit of the City for Fiscal Year 2022, a copy of which is attached hereto as Exhibit 1. SECTION 3. The Council finds that the adoption of this resolution does not constitute a project under the California Environmental Quality Act, and, therefore, no environmental assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Attorney 2 City Manager Administrative Services Director Attachment A, Exhibit 1 APPROPRIATIONS LIMITATION COMPLIANCE CALCULATION FOR FISCAL YEAR 2022 ADOPTED BUDGET ($ IN MILLIONS) Total Budgeted Appropriations FY 2022 Adopted Budget Less: Interfund Transfers Allocated Charges Non -Proceeds Net Appropriations Subject to Limit CITY 0 -- PALO ALTO General Fund s Capital Projects Funds 209.21 $ Special evenue Funds Debt Service Fund 69.03 $ 1 16.45 $ 1 Combined Funds 7.34 $ r- 302.03 $ (14.70) $ 2.38 $ (10.92) $ - $ (23.24) $ (20.12) $ - $ - $ - $ (20.12) $ (51.52) $ (64.45) $ (8.27) $ (7.34) $ (131.58) $ 122.87 $ 6.96 $ (2.74) $ 0.00 $ 127.09 FY 2022 Per Capita Income Change (CA Department of Finance) 5.73% 1.0573 FY 2022 Population Change (Santa Clara County) -0.56% 0.9999 Factor A Factor B FY 2021 Adopted Appropriations Limit $ 179.86 FY 2022 Adopted Appropriations Limit Net Appropriations Subject to Limit Amount Under the Limit Factor A x Factor B 1 .0572 $ 190.16 $ 127.09 $ 63.07 The City of Palo Alto remains well within its appropriations limit in FY 2022. Future year limit trends can be made based on the average change in regional population and income growth. The appropriations subject to limitation includes proceeds of taxes from the General Fund, Capital Projects Fund, and Special Revenue Funds. Fiscal Year 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Per Capita Income Factor 1.0373 1.0385 1.0367 1.0369 1.0537 1.0382 0.9977 1.0512 1.0377 1.0251 0.9746 Population Change Factor 1.0037 1.0033 1.0040 1.0082 1.0130 1.0113 1.0150 1.0157 1.0124 1.0089 1.0144 Total Adjustment Factor Appropriations Limit Appropriations Subject to Limit 1.0411 $ 179.86 $ 1.0419 $ 171.75 $ 1.0408 $ 164.83 $ 1.0454 $ 158.36 $ 1.0674 $ 151.48 $ 1.0499 $ 141.92 $ 1.0127 $ 135.17 $ 1.0677 $ 133.48 $ 1.0506 $ 125.01 $ 1.0342 $ 119.00 $ 0.9886 $ 115.06 $ Amount Under the Limit 113.06 $ 66.81 127.42 $ 45.34 114.94 $ 50.87 131.49 $ 26.88 109.51 $ 41.97 100.60 $ 41.31 82.93 $ 52.24 90.28 $ 43.20 96.73 $ 28.28 89.00 $ 30.00 78.94 $ 36.12 On November 6, 1979, California voters approved Proposition 4, an initiative that added Article XIIIB to the state Constitution. The provisions of this article place limits on the amount of revenue that can be appropriated by all entities of government. The Appropriations Limit is based on actual appropriations during the 1978-1979 fiscal year, as increased each year using specified population and inflationary growth factors. CITY OF PALO ALTO City of Palo Alto (ID # 12324) City Council Staff Report Report Type: Consent Calendar Meeting Date: 6/21/2021 Summary Title: RWQCP On -Call Construction Management and Inspection Services Title: Approval of Five 5.5 Years Contracts Numbers C21179265 A -E for RWQCP On -call Construction Management and Inspection Services With: 1) MNS Engineers, Inc.; 2) CDM Smith; 3) Carollo Engineers; 4) MCK Americas, Inc.; and 5)Tanner Pacific, Inc.; for a Total Not -to -Exceed Amount of $1 Per Contract; Approval and Authorization of the City Manager or their Designees to Select one Consultant for Construction Management Services for the Primary Sedimentation Tanks Rehabilitation and Equipment Room Electrical Upgrade Project (WQ-14003) at the Regional Water Quality Control Plant From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council: 1. Approve and authorize the City Manager or their designee to execute five (5) separate five -and -a -half -year contracts (Contract C21179265) with MNS Engineers, Inc.; CDM Smith; Carollo Engineers; MCK Americas, Inc. and Tanner Pacific, Inc.; (Contracts A, B, C, D, and E) for Regional Water Quality Control Plant (RWQCP) On -Call Construction Management and Inspection Services in a not -to -exceed total amount of $1 per contract; and 2. Approve and authorize the City Manager or their designee to select one consultant under the process described in Exhibit A to the contracts and to increase the not -to - exceed amount under that one agreement with the selected consultant to $1,600,000 ($1,450,000 for basic services and $150,000 for additional services) for construction management of the Primary Sedimentation Tanks Rehabilitation and Equipment Room Electrical Upgrade project funded in Wastewater Treatment Enterprise Fund Capital Improvement Program, Project WQ-14003, at the RWQCP. Executive Summary City of Palo Alto Page 1 The RWQCP capital program requires specialized consultant services to manage the construction and inspection of construction contract work. These services are an extension of staff and essential for providing quality assurance that the City is receiving the as -designed infrastructure in a transparent, efficient, and coordinated manner. The solicitation process identified qualified consultants that can provide on -call construction management and inspection services during construction of various capital projects recommended by the Long - Range Facilities Plan (LRFP). Services will be used on a per -project basis, at the City's discretion. For each construction project, staff will provide each of the five consultants a scope of services with a list of tasks needed for the upcoming construction project (i.e., Task Order). The resulting proposal and fee received back from the consultant will be evaluated before selecting one of the five firms for the upcoming work. Because staff desires to start construction management services in July 2021 concurrent to the expected notice to proceed date for Overaa Co. for the Primary Sedimentation Tank and Equipment Room Electrical Upgrade project (WQ-14003) awarded by Council May 17, 2021 (CMR 11735), staff is requesting authorization for the City Manager or their designee to select one of the five construction management firms to perform the project -specific construction management Task Order, for a total not -to -exceed amount of $1,600,000. This will avoid a several month delay that would occur if staff otherwise had to return to Council in August or September 2021 with an amendment to one of the five contracts. Amendments for future projects will be brought to Council simultaneous with a recommendation to award the construction contract for the capital project. The amendment to the construction management contract will set forth the project Task Order cost and include an explanation of how staff selected the firm. Background The RWQCP was originally constructed in 1934 and has undergone several expansions and upgrades, including the construction of the primary sedimentation tanks in 1972. In 2012, the Long -Range Facilities Plan Final Report (LRFP) for the RWQCP was completed addressing key issues of aging infrastructure and increasing regulatory requirements. The capital program was explained in greater detail at the April 20, 2021 Finance Committee meeting (CMR 12170). Discussion The solicitation process identified qualified consultants that could provide on -call construction management and inspection services for projects recommended by the LRFP on an as -needed basis, at the discretion of the City. During construction, the construction manager will coordinate between the contractor and the design engineer. In addition to the Primary Sedimentation and Equipment Room Electrical Upgrade project (WQ-14003), future projects that may need a construction manager include the following: • 12kV Medium Voltage Electrical Network (Loop) Rehabilitation (WQ-19002) • Secondary Treatment Upgrades (WQ-19001) • Outfall Line Construction and Rehabilitation (WQ-19000) • Advanced Water Purification Facility (WQ-19003) City of Palo Alto Page 2 • 72 -inch Joint Interceptor Sewer Rehabilitation (CIP No. TBD) • New Laboratory and Environmental Services Building (WQ-14002) • Headworks Facility Replacement (WQ-16002) • Recycled Water Improvements (CIP No. TBD) • Other miscellaneous RWQCP capital improvement projects (CIP No. TBD) The future work listed above is estimated at about $25 million in construction management services. The consultant skills needed for each project are similar, but some needed skills vary based on the type of project (e.g., specialized high voltage electrical cables, use of a building contractor instead of an industrial contractor, large diameter pipeline work, etc.). All five firms are large enough to provide the breadth of common construction management skills needed; however, the work will not be rotated between the five firms or given out by a randomized process because of the unique skill sets needed for some projects. Instead, each firm will propose a project -specific team, a fee, and a proposed approach. A mini -selection process, described in Exhibit A of these contracts and summarized below, will then be used to select which firm to utilize. Some of the RWQCP projects require coordination of work overlapping in time and/or with adjacency issues (e.g., coordination of electrical gear), in which case, staff may consider using the same construction management firm to provide a unitary coordination between multiple contractors and design engineers thereby reducing coordination risks. Due to project timing, size, and complexity, use of five firms in an on -call arrangement allows staff to choose and delegate to a project -specific task order. Prior to selecting a construction management firm for each project, staff will evaluate risks, project coordination, and complexity, and use these issues to inform the evaluation and selection. Use of multiple firms allows for a larger pool of qualified personnel with specific skills to support a variety of work (e.g., specialized inspection of 12,470 -volt electrical cables and switches; expertise with large diameter pipeline installation; process mechanical, instrumentation, and electrical heavy industrial construction; etc.). Having five firms provides access to specific skill sets, ensuring that the $310 million RWQCP capital program can be serviced by more than one firm should one firm potentially have inadequate resources for the foreseeable work. Near the end of each project design, staff will issue project -specific Task Orders requesting proposals from each firm to provide construction management services for the upcoming construction phase. For each Task Order proposal, the firm will include items such as: • proposed project team for consultant and subconsultants; • the firm and team's relevant experience for the work; • strategy and inspection approach; • proposed additions, subtractions, or modifications to the scope of services; and • schedule, staff availability, and fee. Task Orders for services may include: • preconstruction phase tasks; City of Palo Alto Page 3 • Clean Water State Revolving Fund (SRF) compliance tasks for project loan; • construction phase tasks; and • project closeout phase tasks. The five firms' fees and proposals will be evaluated by department staff using the City's standard consultant selection criteria (see Attachment A). Pre -approval of five firms is an approach that saves time and uses in-house engineering staff more efficiently. Pre -approval ensures a firm is ready to advise staff even during pre -construction phases, if necessary. For subsequent projects, staff will return to Council to recommend the selection of one of the five firms to be approved by the City Manager or their designee (e.g., Public Works Director) and explain the selection, and to request approval of an amendment to incorporate the project task order and its related fee. Table 1 below illustrates a typical process for the selection and execution of the Task Order for a project. Table 1: Process Flow for Typical Construction / Construction Management Process Project design engineer/architect develops Project Task Order/Scope of Work under supervision of department staff Construction Process Construction Management Process Department staff prepares a formal Invitation for Bid package for contractors per Purchasing process Designer/Architect's contract documents are shared with five firms to prepare a proposal based on both common and specific requests for services for that construction project Solicitation of bids issued to contractors Department staff reviews proposals received from firms and fee and makes a selection Together with Council's award of a construction contract for a capital project, Council approves an amendment to the selected construction management contract to incorporate the project - specific Task Order and increase the contract fee to support services needed during construction Solicitation Process for Prequalifying Construction Management Firms On August 17, 2020, the City issued a Request for Proposals (RFP) through PlanetBids for On - Call Construction Management Services (CIP WQ-14003). A total of 40 construction management firms, design firms, vendors, contractors, and Builders Exchanges downloaded the RFP documents with attachments related to the project through PlanetBids. A virtual pre - proposal meeting was held on August 25, 2020. The bid period was 36 days. On September 22, 2020, proposals were received from Tanner Pacific, Inc.; Swinerton Inc.; MNS Engineers; MCK Americas; HDR; CDM Smith; and Carollo Engineers. Request for Proposal (RFP) Issued Pre -Proposal Meeting Deadline for Questions, Clarifications Proposals Due August 17, 2020 August 25, 2020 September 8, 2020 September 22, 2020 City of Palo Alto Page 4 Proposals Received 7 Finalist Identified and Interviewed 5 Number of Vendors Selected for Contract 5 An evaluation committee consisting of Public Works Department staff was formed to review the seven proposals received and conduct interviews. The committee carefully reviewed each firm's qualifications and submittal in response to the criteria identified in the RFP, including quality and completeness of the proposal, quality and effectiveness of services, experience with projects of similar scope and complexity, prior record of performance, cost, proposer's financial stability, and ability to provide future maintenance and/or services. In addition to the Public Works Department staff, the RWQCP CIP Program Manager (Woodard & Curran) provided comments on the proposals. These comments were considered to shortlist the following five finalists for interviews: Carollo Engineers, MNS Engineers, CDM Smith, Tanner Pacific, Inc., and MCK Americas, Inc. After conducting the interviews, staff recommends engaging the five firms interviewed. These firms provided a more comprehensive approach to the services, demonstrated a clear understanding of needs, and proposed innovative solutions to the challenges of the complex capital program. Timeline The City is currently in the design and construction phase for several capital projects. Project construction is ongoing and will continue for approximately ten years. The On -Call Construction and Inspection Services Contracts have a term ending December 31, 2026, in compliance with procurement policies. Staff will solicit new proposals for construction management services for future capital work. Resource Impact As the lead agency, the City of Palo Alto has appropriated the $1,600,000 funding in the Fiscal Year 2021 Wastewater Treatment Fund Capital Budget for the first Task Order associated with Primary Sedimentation Tanks and Equipment Room Electrical Upgrades Project (WQ-14003). As one of six partners of this regional operation, the City is responsible for 38.16 percent of this contract cost. Costs will vary for the services needed for each project requiring external construction management. The costs typically depend on project size and complexity. The cost of construction management services on a recent large RWQCP project was about 10% of construction costs. A not -to -exceed expense of $1,600,000 was developed for the Primary Sedimentation Tanks and Equipment Room Electrical Upgrades Project following this same projected cost of construction management services at 10% of the total expected construction costs. Future construction management services will be funded by respective capital projects, and will be detailed in future reports when a contract amendment to one of the five firms is brought forward for Council approval. Based on an approximate 10% of on -hand preliminary City of Palo Alto Page 5 construction cost estimates, the future estimated construction management expenses are shown in Table 2 below. Funding for subsequent years of the contract for these projects is subject to the annual appropriation of funds through the budget process. Table 2: Estimated Future Construction Management Services Expenses Project Expense ($ million) 12kV Medium Voltage Electrical Network (Loop) Rehabilitation (WQ-19002) $0.8 Secondary Treatment Upgrades (WQ-19001) $12.8 Outfall Line Construction and Rehabilitation (WQ-19000) $1.1 Advanced Water Purification Facility (WQ-19003) $1.8 72 -inch Joint Interceptor Sewer Rehabilitation (CIP No. TBD) $1.0 New Laboratory and Environmental Services Building (WQ-14002) $3.6 Headworks Facility Replacement (WQ-16002) $3.9 Total $25.0 Other projects may be added to Table 2 (above) in the future as construction management services cost estimates are quantified. 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. For debt financed projects, Palo Alto's project share is 38.16% and the other five agencies' share is 61.84%, based on the fixed capacity established in partners' agreements. This contract uses the City's professional services contract template, which permits the City to terminate without cause/for convenience by providing written notice to the consultant. In the event the City finds itself facing a challenging budget situation, and it is determined that City resources need to be refocused elsewhere, the City can terminate for convenience. Other options include termination due to non -appropriation of funds or amending the contract to reduce the cost, for example, by reducing the scope of work. 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 major capital improvement program funded by Palo Alto and the five additional 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 major capital improvement program. With respect to Palo Alto itself, the open meetings on the budget City of Palo Alto Page 6 process serve as the main vehicle for engaging the community on both new projects such as this and associated rate impacts. In addition, staff have been reaching out to the water quality control plant community to gain increased insight into significant capital improvements to existing infrastructure. This has helped continue to inform staff's recommended approach to management of this over $300 million investment and how to best position the City for the inherent risks, uncertainties, and complexities. Environmental Review Approval of these contracts does not constitute a project under the California Environmental Quality Act (CEQA); therefore, an Environmental Assessment is not required. The capital projects associated with the On -Call Construction Management Services will each have their own applicable environmental reviews. Authorizing the City Manager to select one consultant to provide construction management services for the Primary Sedimentation Tanks Rehabilitation and Equipment Room Electrical Upgrade project is exempt from CEQA review because, on October 15, 2018, Council approved the determination that the construction of the Primary Sedimentation Tanks Rehabilitation and Electrical Upgrade Project is exempt from the California Environmental Quality Act and approved the preliminary design (CMR 9581). A Notice of Exemption has been submitted to Santa Clara County Clerk -Recorder's office and was recorded on October 31, 2018 (File No. ENV21843). Attachments: • Attachment A: Consultant Selection Criteria City of Palo Alto Page 7 Attachment A Proposal Evaluation Criteria and Selection Process City staff will evaluate the proposals provided based on the following criteria, at a minimum: 1. Quality and completeness of proposal; 2. Quality, performance and effectiveness of the solution, goods and/or services to be provided by the Proposer; 3. Proposers experience, including the experience of staff to be assigned to the project, the engagements of similar scope and complexity; 4. Cost to the city; 5. Proposer's financial condition and stability; 6. Proposer's ability to perform the work within the time specified; 7. Proposer's prior record of performance with City or other local, county or state agency; 8. Proposer's ability to provide future maintenance, repairs parts and/or services; and 9. Proposer's compliance with applicable laws, regulations, policies (including City Council policies), guidelines and orders governing prior or existing contracts performed by the contractor. 10.Any other factor the city deems relevant as specified in the Task Order. The selection committee will make a recommendation to the City Manager or their designee, if a recommendation for selection is made. CVTY 0 PALO ALTO City of Palo Alto (ID # 12387) City Council Staff Report Report Type: Action Items Meeting Date: 6/21/2021 Summary Title: Appointment of new City Clerk Title: Approval of an Employment Agreement and Appointment of Lesley Milton to the Position of City Clerk at an Annual Salary of $175,000 From: City Manager Lead Department: Human Resources Recommendation Approval of an employment agreement and appointment of Lesley Milton to the position of City Clerk at an annual salary of $175,000. Background The City Council makes appointments to council appointed officer positions. The appointment of the City Clerk position is subject to approval of the Council. The duties of the City Clerk are set forth in the Charter of the City of Palo Alto and in Palo Alto Municipal Code section 2.08.110. The City Clerk proactively supports the City Council and works collaboratively with other Council Appointed Officers (CAOs) and City departments to facilitate the Council's vision, while upholding the duties and role of the City Clerk's Office with confidence and independence. The City Clerk must apply accuracy, attention to detail and timely communication and responsiveness, and ensure high -quality work products. The City Clerk is responsible for providing clear communications and maintaining strict standards of accountability. Discussion Upon receiving notice of the current City Clerk's retirement, the City Council retained the services of the executive recruitment firm Peckham & McKenney to conduct an extensive search for the City of Palo Alto's next City Clerk. Qualified applicants were evaluated for the position, and Lesley Milton was selected by the City Council as the top candidate. Lesley has over 15 years of public service experience, of which 10 years has been working in the City Clerk profession. She spent the most recent years in the City of Seaside, where she has served in increasingly senior positions such as Assistant City Manager, City Clerk and Public Affairs Officer. Lesley has served as a team leader with a track record of leading innovative City of Palo Alto Page 1 processes that have increased the agencies transparency and citizen engagement. She earned her master's degree in Public Administration from the California State University, Dominguez Hills, and holds a Bachelor of Science in Political Science and Criminology from Washington State University. Lesley Milton will begin work on July 26, 2021. Resource Impact Lesley will be an at -will employee serving at the pleasure of the City Council. The employment agreement proposed for Lesley Milton includes an annual salary of $175,000. The agreement also includes a one-time amount of up to $10,000 for the reimbursement of relocation expenses. Lesley will receive standard management benefits consistent with the Compensation Plan for Unrepresented Management and Professional employees. The City Clerk position is budgeted within the City Clerk's Office and is included in the FY 22 proposed budget. Policy Implications This appointment is consistent with existing City policies. Environmental Review Approval of the appointment is not a project subject to environmental review. Attachments: • Attachment A - City Clerk Employment Agreement Lesley Milton June 16 2021 .docx City of Palo Alto Page 2 DocuSign Envelope ID: E9B6ADOF-600E-4867-8583-1A2COF08EA67 EMPLOYMENT AGREEMENT BETWEEN CITY OF PALO ALTO AND LESLEY MILTON THISAGREEMENT is between the City of Palo Alto, a municipal corporation and chartered city ("City") and Lesley Milton ("Milton"). It is effective on the latest date next to the signatures on the last page. This Agreement is entered into on the basis of the following facts: A. City, acting by and through its City Council, wishes to employ Milton as its City Clerk, subject to the terms and conditions set forth in this Agreement, the Palo Alto Municipal Code and the Charter of the City of Palo Alto (the "Charter"). B. Under the Charter, the City Clerk is appointed by the City Council. Notwithstanding any provision of the City of Palo Alto Merit System Rules and Regulations, the City Clerk serves on an at -will basis, with no expectation of continued employment, and with no right to pre -or post - separation due process or appeal. C. Milton desires to be employed by the City as its City Clerk, subject to the terms and conditions in this Agreement, the Palo Alto Municipal Code, the Charter, the Palo Alto Merit System Rules and Regulations, and all other applicable laws, resolutions, and policies. D. The City and Milton wish to establish specific terms and conditions relating to compensation and benefits and related matters. BASED UPON THE FOREGOING, THE CITY AND MILTON AGREE AS FOLLOWS: 1. Employment. The City appoints Milton as its City Clerk for an indefinite term to begin on July 26, 2021. If Milton does not actually report for or start work on July 26, 2021, the employment start date will be the date, if any, that is mutually agreed by the parties. Except as otherwise provided herein, Milton's employment with the City shall be governed by the City Council - adopted Compensation Plan for Management and Professional Personnel and Council Appointees, as it currently exists and may be changed from time to time. 1 DocuSign Envelope ID: E9B6ADOF-600E-4867-8583-1A2COF08EA67 2. Duties of the City Clerk. Milton will perform the duties established for the City Clerk by the Palo Alto City Charter, by the Palo Alto Municipal Code, by direction given by the City Council, and as otherwise provided by law, ordinance, or regulation. Milton agrees to comply with all federal, state and local laws, ordinances, rules and regulations applicable to or associated with these duties. 2.1. Full Energy and Skill. Milton will devote her full energy, skill, ability, and productive time to the performance of her duties. 2.2. No Conflict. Milton will not engage in any employment, activity, consulting service, or other enterprise, for compensation or otherwise, which is actually or potentially in conflict with or which interferes with the performance of her duties. Milton acknowledges that she is subject to the various conflict of interest requirements found in the California Government Code and state and local policies and regulations. 2.3. Permission Required For Outside Activities. Milton will not engage in any employment, activity, consulting service, or other enterprise, for compensation or not, without written permission of the City Council. 3. Salary. While performing the duties of City Clerk, Milton will receive a base salary within the range provided in the City Council -approved Compensation Plan for Management and Professional Personnel and Council Appointees, as it currently exists and may be changed from time to time. Milton will receive an initial gross base annual salary of one hundred seventy thousand dollars ($175,000.00), beginning on the Employment Start Date. This amount is subject to authorized or required deductions and withholding, prorated and paid on City's regular paydays. Milton is an exempt employee under applicable wage and hour law and her base salary shall be compensation for all hours worked. The City agrees that the amount of Milton's base annual salary will not decrease, except as part of a permanent decrease that is consistent with the Fair Labor Standards Act. 4. Benefits and Allowances. Milton will be eligible for, and shall receive, all regular benefits (i.e., health insurance, PERS contributions to the extent paid by the City, etc.) and vacation, sick leave, and management leave, as are generally provided to management employees under the City Council- approved Compensation Plan for Management and Professional Personnel and Council Appointees, as it currently exists and may be changed from time to time. 2 DocuSign Envelope ID: E9B6ADOF-600E-4867-8583-1A2COF08EA67 5. Additional Benefits and Allowances. In addition to the benefits specified in section 4, Milton will receive the following additional benefits and allowances: 5.1. Reimbursement for Relocation Expense. Milton shall be reimbursed up to ten thousand dollars ($10,000.00) moving and miscellaneous expenses associated with the relocation, consistent with the federal tax regulations for the year in which the move occurred. Reimbursement may also include: 5.1.1. Lodging - Up to thirty (30) days' temporary living expenses at 100% of actual and reasonable costs for all family members; 5.1.2. Per Diem — For the first 15 days: 100% of the established City rates for employee and spouse/partner, and 50% of the established City rate for dependents. For the last 15 days: 50% percent of the established City rate for employee and spouse/partner, and 25 percent of the established City rate for dependents. 5.1.3. Car Rental — Up to 30 days for a single vehicle is available. 5.2. Severance. If Milton is terminated or asked to resign she shall, upon execution of a release of all claims against the City, be eligible for a severance payment according to the City Council -adopted Compensation Plan for Management and Professional Personnel and Council Appointees, as it currently exists and may be changed from time to time, currently equivalent to a maximum of twelve (12) weeks of salary and benefits. No severance shall be paid if Milton is terminated for serious misconduct involving abuse of her office or position, including but not limited to waste, fraud, violation of the law under color of authority, misappropriation of public resources, violence, harassment or discrimination. If Milton is later convicted of a crime involving such abuse of her position, she shall fully reimburse the City as set forth in Government Code section 53243.3. 6. Additional Expenses of Employment. The City shall pay the cost of any fidelity or other bonds required by law for the City Clerk. 7. Duration of Employment. Milton understands and agrees that she has no constitutionally protected property or other interest in her employment as City Clerk. Milton waives any and all rights, if any, under the Merit System Rules and Regulations, including without limitation, the right to pre -or post -disciplinary due process. Milton understands and agrees that she works at the will and pleasure of the City Council and that she may be terminated or asked to resign at any time, 3 DocuSign Envelope ID: E9B6ADOF-600E-4867-8583-1A2COF08EA67 with or without cause. Milton may terminate this agreement (terminating all employment) upon 30 days written notice to the City Manager. 8. Miscellaneous. 8.1. Notices. Notices given under this Agreement shall be in writing and shall be either: a) served personally; or b) sent by facsimile (provided a hard copy is mailed within one(1) business day); or c) delivered by first-class United States mail, certified, with postage prepaid and a return receipt requested; or d) sent by Federal Express, or some equivalent private mail delivery service. Notices shall be deemed received at the earlier of actual receipt or three (3) days following deposit in the United States mail, postage prepaid. Notices shall be directed to the addresses shown below, provided that a party may change such party's address for notice by giving written notice to the other party in accordance with this subsection. CITY: Attn: Mayor, City Council 250 Hamilton Avenue, Palo Alto CA 94301 Phone (650) 329-2226 MILTON: Lesley Milton 250 Hamilton Avenue, Palo Alto CA 94301 Phone (650) 328-3631 8.2. Entire Agreement/ Amendment. This Agreement constitutes the entire understanding and agreement between the parties as to those matters contained in it, and supersedes any and all prior or contemporaneous agreements, representations and understandings of the parties. This Agreement may be amended at any time by mutual agreement of the parties, but any such amendment must be in writing, dated, and signed by the parties and attached hereto. 8.3. Applicable Law and Venue. This Agreement shall be interpreted according to the laws of the State of California. Venue of any action regarding this Agreement shall be in the proper court in Santa Clara County. 4 DocuSign Envelope ID: E9B6ADOF-600E-4867-8583-1A2COF08EA67 8.4. Severability. In the event any portion of this Agreement is declared void, such portion shall be severed from this Agreement and the remaining provisions shall remain in effect, unless the result of such severance would be to substantially alter this Agreement or the obligations of the parties, in which case this Agreement shall be immediately terminated. 8.5. Waiver. Any failure of a party to insist upon strict compliance with any term, undertaking, or condition of this Agreement shall not be deemed to be a waiver of such term, undertaking, or condition. To be effective, a waiver must be in writing, signed and dated by the parties. 8.6. Representation by Counsel. Milton and the City acknowledge that they each did, or had the opportunity to, consult with legal counsel of their respective choices with respect to the matters that are the subject of this Agreement prior to executing it. 8.7. Section Headings. The headings on each of the sections and subsections of this Agreement are for the convenience of the parties only and do not limit or expand the contents of any such section or subsection. MILTON DocuSigned by: (,t,S kl.(fDln, '-BC172B71B1294CD... CITY OF PALO ALTO Lesley Milton Mayor Tom Dubois Date: Date: APPROVED AS TO FORM: Assistant City Attorney Date: 5 CITY OF PALO ALTO City of Palo Alto (ID # 12307) City Council Staff Report Report Type: Action Items Meeting Date: 6/21/2021 Summary Title: FY 2022 Budget Adoption Title: PUBLIC HEARING: Adoption of Budget Ordinance for Fiscal Year 2022, Including Operating and Capital Budgets and Municipal Fee Schedule, and Adoption of a Revised Compensation Plan for Management and Professional Employees From: City Manager Lead Department: Administrative Services RECOMMENDATION Staff recommends that the City Council: 1. Adopt the Fiscal Year 2022 Budget Ordinance (Attachment A), which includes: a. City Manager's Fiscal Year 2022 Proposed Operating and Capital Budgets, previously released on April 30, 2021 and presented at the May 3,d City Council Meeting (Attachment A, Exhibit 1) b. Amendments to the City Manager's Fiscal Year 2022 Proposed Operating Budget (Attachment A, Exhibit 2) c. Amendments to the City Manager's Fiscal Year 2022 Proposed Capital Budget (Attachment A, Exhibit 3) d. Allocated Charge Amendments to the City Manager's Fiscal Year 2022 Proposed Operating and Capital Budgets (Attachment A, Exhibit 4) e. Fiscal Year 2022 City Table of Organization (Attachment A, Exhibit 5); and f. Fiscal Year 2022 Municipal Fee Changes (Attachment A, Exhibit 6) 2. Accept the Fiscal Year 2022 — 2026 Capital Improvement Plan 3. Adopt the attached cover letter altering the Management and Professional Personnel and Council Appointees Compensation Plan for one fiscal year (FY 2022) and extending it to June 30, 2022 (Attachment B) EXECUTIVE SUMMARY This memorandum summarizes changes to the City Manager's Fiscal Year (FY) 2022 Proposed Budget through Budget Hearings with the Finance Committee and City Council and brings forth refined actions to revise the FY 2022 Proposed Budget and FY 2022 Municipal Fee Schedule for final City Council review and adoption as required by the City Charter and Municipal Code. This memorandum includes the necessary supporting documents for formal adoption by the City Council, such as the FY 2022 Budget Ordinance and the Table of Organization. City of Palo Alto Page 1 Refined actions to revise the Proposed Budget, that were not part of the June 7th City Council budget review (CMR 12350), are discussed in the FY 2022 Final Recommended Changes section of this memorandum. All changes to the Proposed Budget tentatively approved by the City Council are detailed for the FY 2022 Operating Budget, by fund and by department, in Attachment A Exhibit 2; FY 2022 Capital Budget adjustments can be found in Attachment A, Exhibit 3; changes to the Table of Organization are discussed later in this memorandum, and an updated Table of Organization is included as Attachment A Exhibit 5. Links to the meetings with the Finance Committee and the City Council, as well as the memoranda, presentations, and additional information provided for discuss can be found on the City's website under the FY 2022 Budget Process section. The report is organized by the following sections: • Background and Discussion: Summary of FY 2022 budget process and overall balancing strategies organized by fund type. • FY2022 Final Recommended Changes: A summary of final direction given by the City Council on June 7 and additional recommended technical adjustments from staff organized by fund type. • Table of Organization: A summary of additional changes to the Table of Organization as a result of adjustments made to the proposed budget that was released on May 3, 2021. • Municipal Fee Schedule: A summary of the changes in the Review and Recommendations to Council on the FY 2022 Municipal Fee Schedule Amendments for Incorporation in the FY 2022 Proposed Budget (CMR 12193). • FY 2022 Rate Changes (various utilities such as electric): A brief overview of the rate changes reviewed by the Utilities Advisory Commission and Finance Committee and the final decision the City Council made in May 2021; each of these rate changes are included in the FY 2022 budget assumptions. A separate memorandum for adoption of these rates and financial plants is agendized in parallel with this item on June 21, 2021. • Review of Referral Items from the Full City Council: This report details a list of areas that the City Council by majority vote, approved for additional staff work as a result of discussions from the FY 2022 budget hearings. These are areas identified for deeper analysis or alternative funding strategies to be explored over the course of the next fiscal year. • Attachments: Attached to this report are several documents as outlined and referenced throughout the recommendation language and the report. In addition, links to all the materials presented throughout the budget process to the City Council such as staff reports, At Places Memorandums, presentations made during the budget hearings, and transcripts from City Council Budget Hearings are included. Not included in this staff report is the approval of the FY 2022 Appropriations (GANN) Limit that is required under Article XIIIB to the California State Constitution, as amended by proposition 98 in 1988 City of Palo Alto Page 2 and Proposition 111 in 1990. The GANN Limit calculation is transmitted separately for City Council consideration on June 21, 2021 (CMR #12303). BACKGROUND Per the Municipal Code, the City Manager is charged with proposing a budget that provides a clear and complete financial plan for all City activities proposed for the coming budget cycle, or fiscal year. The FY 2022 Proposed Operating and Capital Budgets were released April 30, 2021 and transmitted to the City Council on May 3, 2021. These documents represent the planned expenditures and revenues for FY 2022 for the various fund types that constitute the City's Budget: General Fund, Capital Fund, Enterprise Funds, Internal Service Funds, Special Revenue Funds, and Debt Service Funds. The budget documents contain an overview section with descriptions of each of these fund types and detailed information of the revenues and expenses for each fund as well as for each individual department. The FY 2022 Proposed Operating and Capital Budgets was presented to the City Council on May 3, 2021 and throughout the month of May, conducted Budget Hearings with the Finance Committee and City Council. Due to the significant economic impacts of the pandemic on the City's finances, the budget hearing process was modified this year to allow for more public discussion around the FY 2022 Budget. This process included the typical review by the Finance Committee and included an update with the City Council on May 17th that preceded the Budget Wrap -Up hearing with the Finance Committee on May 25th. In addition, the City Council reviewed the budget during the June 7th meeting that precedes final budget adoption on June 21St. The adjustments recommended recognition of 60% of the American Rescue Plan Act of 2021 (ARPA) federal funds in FY 2022, leaving 40% for use in FY 2023 and use of $2.5 million in General Fund Budget Stabilization Reserve (BSR) to reinstate services that were planned to be reduced in the FY 2022 Proposed Budget. These adjustments net of the reinstated services left $1.7 million in funds as unallocated and, in the event that the City is unable to achieve concessions with labor groups, to be used to offset additional expense or be placed in the BSR. The City Council reviewed the Finance Committee's recommendation on June 7, 2021 (CMR 12350) and ultimately moved to: A. Direct Staff to return on June 21, 2021 for adoption of the Fiscal Year 2022 Proposed Operating and Capital Budgets and Municipal Fee Schedule in alignment with the work completed by the Committee and Council during the month of May 2021 and provide direction on any final adjustments in preparation for City Council Adoption; B. Direct Staff to return on June 21, 2021 to accept the final FY 2022-2026 Capital Improvement Plan as amended by the actions outlined in this report (as recommended by the Finance Committee and Council); C. Direct Staff to return on June 21, 2021 to accept the alternative balancing strategy in the event the City does not reach agreement with labor groups on concessions in the General Fund, that the City Council utilize current unallocated funds of $1.7 million in the General Fund to offset the additional expense or be placed in the Budget Stabilization Reserve if remain unallocated; D. Recommend Option B.ii. for funding of the Roth building rehabilitation project as outlined by the Finance Committee on May 25, 2021; and E. Direct Staff to return by the end of October 2021 with preliminary Q2 financial results so that Council can consider budget adjustments. MOTION PASSED: 4-3 Cormack, Filseth, Tanaka no City of Palo Alto Page 3 Adoption of the City Manager's FY 2022 Proposed Operating and Capital Budgets and FY 2022 Municipal Fee Schedule, including the amendments summarized in the FY 2021 Budget Wrap-up Memorandum, and formalized in the attachments to this report will represent the ratification of the amendments that were approved by vote through the Budget Hearings. These amendments include all changes to the Municipal Fee Schedule and the Table of Organization. DISCUSSION The FY 2022 Proposed Budget was released April 30' 2021 and first presented to the City Council on May 3, 2021. This initial proposed budget included a budget balancing strategy that addressed the community's immediate service needs, while positioning to restore services and adapt as the community enters the next phase of recovery from the COVID-19 world-wide pandemic. The Proposed Budget was developed based on the City Council's directed financial balancing scenario (Scenario B) which outlined a conservative recovery from the pandemic over a three to five-year period. The details of Scenario B can be found in the FY 2022-2031 Long Range Financial Forecast (CMR 11954). Following an extremely difficult year of the community navigating through a multitude of uncertainties, staff presented balancing strategies to the City Council to communicate the potential impact of the fiscal challenges faced by the City as a result of the pandemic and City Council directed financial planning assumptions. The FY 2022 Budget, as recommended in this report for adoption, ensures that the City continues to proactively fund long term liabilities, continues capital investments in our most critical infrastructure, provides resources for the City to successfully transition through the next phase of recovery from the pandemic. The City has been forced to prioritize essential services and pare back discretionary services. The significant service delivery impacts taken in the FY 2021 Adopted Budget continue in this budget. Based on direction by the City Council, use of American Rescue Program Act of 2021 (ARPA) that was signed into law in March 2021 ensured the ability to maintain most community facing services at the reduced FY 2021 levels, stopping even further reductions to be required. General Fund Overall, the City's General Fund is recommended to have $206.5 million in revenues, $209.2 in expense, and a net draw from BSR and program revenue reserves totaling $0.9 million, a balanced budget for FY 2022. This includes a decrease of approximately 87 full-time staff (-67.73 FTE) and 102 part-time staff (- 24.73) in the General Fund, resulting in a workforce of 563.38 FTE full-time positions (956.00 FTE citywide) and 56.58 part-time positions (81.59 FTE citywide). These reductions primarily reflect positions that were frozen and defunded in FY 2021 and eliminated in the FY 2022 Proposed Budget. Overall, this reflects a $12.2 million, or 6.2 percent, increase compared to the FY 2021 Adopted Budget. Budget Stabilization Reserve The FY 2022 Proposed Budget recommended no adjustments to the projected FY 2021 Year -End BSR of $35.8 million. This BSR level was at 17.4 percent of the Proposed General Fund expense budget, which was approximately $2.2 million below the 18.5 percent target, but within the 15 to 20 percent range outlined in the City's BSR policy. On May 11th, staff informed the Finance Committee that FY 2021 General Fund major tax revenue are tracking to exceed the budget by a range of $2.0 to 3.5 million, and is further discussed in the Third Quarter Financial Status report distributed to Council on June 14, 2021 (CMR 12287). Based on this information, the low end of the range was assumed to be added to the BSR City of Palo Alto Page 4 and on May 12th the Finance Committee tentatively approved and forwarded to Council to use $2.5 million of the BSR to reinstate services that were reduced in the FY 2022 Proposed Budget. This action, along with adjustments to assumed wage increase discussed below, results in an estimated BSR balance totaling $36.0, or 17.2 percent of the total proposed General Fund budget. This level is $2.7 million less than the $38.7 million target. Based on the most current information, the status of parallel activities with the adoption of utility and public works enterprise rates, and ongoing conversations with our labor groups, additional adjustments are included in this report. Most significantly, this report includes recognition of $0.7 million in the General Fund ($1.4 million all funds) attributed to a zero wage increase for the City's Unrepresented Management and Professional and Service Employees International Union groups in FY 2022. It includes recognition of expenses associated with contractual general wage increases for public safety employees, as mutual agreement on a second deferral of this increase was not reached. Additional detail related to this can be found in the Final Recommended Changes section of this report. Capital Funds The City's Capital Improvement Plan reflects a $174.3 million FY 2022 budget, and a $747.1 million plan over the five-year CIP (FY 2022 -FY 2026). Of this, the General Capital Fund FY 2022 budget reflects expected expense of $68.2 million and $223.8 million over the five-year CIP. Capital Reappropriations The Municipal Code requires City Council authorization to reappropriate funds for capital projects from one fiscal year to the next. The FY 2022 budget process continues this procedure with the FY 2022 Proposed Capital Budget including approximately $56.6 million in reappropriated funds for project expenditures across all funds. In the time since the FY 2022 Proposed Budget figures, Council revisited the budget and provided further direction. Additional reappropriation adjustments, as reviewed and approved in the May 25th Budget Wrap -Up item, are recommended as part of this memorandum to update the FY 2022 Capital Budget with current, more refined estimated activity levels in FY 2021. Reappropriations from FY 2021 to FY 2022 increased by $21.0 million from an estimated $56.6 million in the Proposed budget to $77.6 million being recommended in the FY 2022 Adopted Capital Budget. Capital Improvement Plan reappropriations from FY 2021 to FY 2022 are summarized in the Budget Wrap -Up memo, Attachment B. Overall Capital Adjustments The City's Capital Improvement Plan reflects a $174.3 million FY 2022 budget, and a $747.1 million plan over the five-year CIP (FY 2022- FY 2026). Of this, the General Capital Fund FY 2022 budget reflects expected expenses of $68.2 million and $223.8 million over the five-year CIP. In total, the cumulative changes, including reappropriations, will increase the FY 2022 Capital Budget by a net total of $21.4 million, from $152.9 million to $174.3 million. As a result of reductions in the transfer from the General Fund and lower overall Transient Occupancy Tax (TOT) revenues dedicated by Council for infrastructure improvements, throughout FY 2021 staff and Council revisited timelines and reprioritized project funding in the Capital Budget five-year CIP. Changes in the FY 2022 five-year CIP include adjustments previously outlined, ensuring funds remain available at the onset of FY 2022 to continue infrastructure improvement work across the City and address critical "keep up" work while minimizing the increase to a "catch-up" backlog that would need to be addressed in future CIP planning. Overall Capital City of Palo Alto Page 5 adjustments to Proposed, including reappropriations, are detailed by projects in Attachment A, Exhibit 3. FY 2022 FINAL RECOMMENDED CHANGES During the most recent budget meeting on June 7, the City Council addressed the two remaining items recommended by the Finance Committee, which were: 1) Directing staff to use unallocated funds of $1.7 million to offset additional expenses restored by the Council through the budget process if agreements for labor concessions are not reached. An update to current labor Negotiations and Concessions is also included below. 2) Recommending a funding strategy for $4.0 million towards Phase One of the Roth Building Rehabilitation project. The Council recommended Option B.ii., which directs staff under this scenario: Utilize $2 million in SUMC funding from the community and infrastructure funds, and utilize $350,000 in impact fees for parks for the restroom and research the possibility of reallocating park impact fees to the Rinconada PE -08001 in lieu of community center fees, else use $1.65 million in Community Center Fees and defund the Rinonada Park Program. May 25, 2021 Finance Committee motion Passed 2-1 Burt no Staff proposed funding plan can be divided into three components: 1) Use of SUMC Funds, 2) use of Park Impact Fees, and 3) use of Community Center Impact Fees. Use of SUMC Funds. The following funding strategy makes available $2.0 million in SUMC funds for the Roth Rehabilitation project in the Infrastructure and Affordable Housing expense category. Staff recommends the following strategy to reallocate funds committed to the Fire Station 4 Replacement project (PE -18004) in FY 2024: • Fire Station 4 Replacement project (PE -18004). In FY 2024, shift $1.5 million from the Infrastructure and Affordable Housing category; move $750,000 to be funded by the Expansion Cost Mitigation SUMC category and $750,000 to be funded by the Capital Improvement Fund. • SUMC Expansion Cost Mitigation category revised balance: $1.08 million • Capital Improvement Infrastructure Reserve estimated balance in FY 2024: $1.2 million • Utilize $500,000 of funding currently not committed in the Infrastructure and Affordable Housing category • SUMC Infrastructure and Affordable Housing category revised balance: $0.34 million. Use of Park Impact Fees. Regarding the use of $350,000 of Parks Impact Fee Funds for the restroom construction, review of the true cost of restroom construction will need to be validated with Palo Alto Museum (PAM) and operating and use terms will need to be determined in conjunction with PAM in order to determine the amount of Parks Impact Fee Funds eligible for this use. The current estimate of $350,000 is based on the building design plans; to date, no final construction contract has been issued and terms of use have yet to be determined. City of Palo Alto Page 6 Use of Community Center Impact Fees. Staff recommends shifting $1.65 million of funding for the Rinconada Park project (PE -08001) from the Community Center Impact Fee Fund to the Parks Dedication Fund. This action would make available $1.65 million in the Community Center Impact Fee Fund to allocate towards eligible costs within the Roth Building project. Similar to the restroom construction, the $1.65 million amount is based on a square footage proportion of the building in the design plans; this amount must be validated with PAM to determine the true cost of the community center portion of the project and operating and use terms need to be determined in conjunction with PAM in order to determine the amount of Community Center funds eligible for this use. To date, no construction contract has been issued and this cost is based on a design estimate and terms of use have yet to be determined. In addition to these items, staff is proposing additional adjustments, discussed below, that were not part of the June 7th update with the City Council and recommends that these technical clean-up actions be incorporated into the adoption of the budget. These adjustments are included in Attachment A, Exhibit 2 for changes to the FY 2022 Operating Budget and Attachment A, Exhibit 3 for changes to the FY 2022 Capital Budget. Changes to the Table of Organization are discussed later in this memorandum, and an updated Table of Organization is included as Attachment A Exhibit 5. Recommended Additional Actions General Fund American Rescue Plan Act (ARPA) The FY 2022 Proposed Budget recognized 50 percent of the $12.5 million that the City anticipated receiving from ARPA as part of the federal government COVID-19 relief package (over 24 months), totaling $6.25 million. Of the $6.25 million, a total of $3.2 million was reserved for discussion and allocation by the Finance Committee and City Council during budget deliberations. At the May 11 meeting, staff provided an update to the City's anticipated ARPA allocation at $13.7 million, an increase of $1.2 million from the $12.5 million estimated in the FY 2022 Proposed Budget. The City Council approved a 60-40 split of the receipt and appropriation of the $13.7 million at the May 17 meeting. This action increases the FY 2022 allocation by $1,970,000, however $1,950,000 was identified as the adjustment to the budget. The difference of $20,000 is reflected in Attachment A, Exhibit 2. Junior Museum and Zoo (JMZ) Operating Plan On May 4 the Community Services Department presented Finance Committee with various JMZ operating plan scenarios (CMR 12050). The operating plan as approved in the FY 2021 budget process was titled Scenario 1 while adjusted scenarios were numbered 2-5. These scenarios included different estimated levels of net General Fund support required, based predominantly on revenue variables such as ticket and membership pricing. Other differences between scenarios 2-5 and the FY 2021 approved business plan included increases to facility rental and classes and camps revenue, given the capacity and quality of the new facility, and an FY 2022 proposed reduction of marketing expenses by $100,000. The FY 2022 net difference between the net General Fund impact of Scenario 1 and 5 was approximately $0.9 million, which the Finance Committee placed in the Parking Lot for further consideration. At the May 12 meeting the Finance Committee recommended Scenario 5 ($10 ticket price) as the new JMZ operating plan. This recommendation requires an update to the Municipal Fee Schedule, which is discussed in further detail in the Municipal Fee section of this report. On May 12, Finance Committee City of Palo Alto Page 7 also recommended restoring $50,000 of the proposed $100,000 reduction to the JMZ's annual marketing budget. This action aligns the budget to Scenario 5 and includes refined revenue and expense projections. The combined impact of all revenue and expenses adjustments to the JMZ for FY 2022 results in an estimated net General Fund impact of approximately $1.3 million, a $275,000 reduction from the Scenario 5 impact presented in CMR 12050. Excluding actions to restore marketing expense, this action increases the net cost from $0.91 million to $0.95 million, a difference of approximately $35,000. These adjustments are included in Attachment A, Exhibit 2. Labor Negotiations and Concessions The City has actively engaged with labor groups to negotiate concessions that generate cost savings to offset losses resulting from the pandemic. The FY 2021 Adopted Budget included compensation reductions in the Unrepresented Management and Professionals (MGMT) group equivalent to a 10 percent 'give -back' that consisted of a wage freeze, furlough, and reduced flexible management benefits. In total, this generated savings of $3.5 million citywide ($2.3 million in the General Fund). Agreements in FY 2021 with safety groups included a deferral of wage increases for one year in the Fire Chief's Association (FCA), Police Management Association (PMA), and Palo Alto Peace Officers' Association (PAPOA), and deferral of wage and step increases for one year in the International Association of Fire Fighters (IAFF) group. The savings achieved in the safety groups were used to fund retirement incentives and offset an attrition period that allowed the Fire and Police Departments to delay the separation of filled positions identified to be held vacant in FY 2021 (position freezes). The FY 2022 Proposed Budget presumed that the City would reach agreements with all labor groups to defer negotiated wage increases one year (zero wage increase) for potential savings of $2.5 million citywide ($1.6 million in the General Fund): 2.00 to 4.00 percent in Safety groups, 2.00 percent in the Utilities Management and Professionals Association (UMPAPA) group, and 2.00 percent in the Service Employee International Union (SEIU) group (upon expiration of the SEIU contract in Dec 2021); this was assumed for MGMT employees as well. Under these terms, employees would still be eligible for merit or step increases. The City did not reach mutual agreement with represented public safety bargaining groups and therefore, current terms of the Memorandum of Agreement's (MOA's) with public safety groups will be implemented, including scheduled general wage increases. An agreement for concessions cannot be taken unilaterally; therefore, actions in Attachment A, Exhibit 2 restore the $905,000 in savings assumed in public safety groups. The MOA for SEIU does not expire until December 2021, and negotiations are anticipated to continue in FY 2022. A zero percent wage increase is assumed upon contract expiration and generates $260,000 in savings in the General Fund ($725,000 million citywide), this assumption will be revisited as needed pending negotiations with this unit. The MGMT group is unrepresented and not subject to bargaining. A zero percent increase is assumed and generates $430,000 million in savings in the General Fund ($715,000 citywide). The attached cover sheet for the FY 2022 Management and Professional and Council Appointed Officials group (Attachment B) details adjustments the compensation plan of this group, which include continuation of no cost of living increase, sunset of the furlough and reduction in management excess benefits, and extension of the increase in vacation accrual cap through FY 2023. Enterprise Funds New Trash Capture Device Project (SD -22002) from CMR #12267 City of Palo Alto Page 8 On June 14, 2021, City Council is anticipated to approve a resolution to execute a Cooperative Implementation Agreement with the California Department of Transportation (Caltrans) to receive reimbursement of $0.6 million from Caltrans for the design and construction of a Trash Capture Device (TCD) in the planting strip along Embarcadero Road located in front of the parking lot of Palo Alto Baylands Golf Links. Adoption of the FY 2022 Capital Budget as outlined in this memorandum establishes the Trash Capture Device Installation capital project (SD -22002) in the Stormwater Management Fund to perform this work. The TCD will be integrated in a storm drain pipe to capture trash as small as five millimeters from a section of the storm drain system prior to discharging to the San Francisco Bay. The State Water Board encourages Caltrans to partner with local municipalities by providing funding for stormwater quality treatment facilities that address trash or other pollutants. After installation of the TCD is complete, the City agrees to fund the long-term operations and maintenance costs for the life of the asset, which will be absorbed in the Stormwater Management Fund's operating budget. TABLE OF ORGANIZATION During budget hearings, the Finance Committee and City Council recommended significant adjustments to restore staffing in Community, Library, Public Safety, and Planning service areas and the administrative staff necessary to support these functions. A more detailed description of these actions is included in Attachment A, Exhibit 2 and an updated Table of Organization is included in Attachment A, Exhibit 5: • Restore 0.50 Administrative Associate II in the Administrative Services Department to support the Purchasing Division • Restore 1.00 Administrative Assistant in the Community Services Department to support department -wide administrative functions • Restore 0.65 Junior Museum & Zoo Educator as part of Art Center restorations • Restore 0.75 Producer Arts/Science position as part of Cubberley Theater restorations • Restore two Producer Arts/Science positions by 0.50 as part of Art Center restorations • Restore two Produce Arts/Science positions by 0.75 to support Children's Theater outreach and the Summer Hot Dog Series • Restore 4.00 Library Specialists and 1.00 Librarian as part of Library open hour restorations • Restore 1.00 Associate Planner in the Planning and Development Services Department to support current planning • Restore 5.00 Police Officers in the Police Department as part of patrol service restorations • Reclassify a 0.48 part-time Administrative Specialist to a full-time 1.00 Administrative Associate II in the Fire Department to assist with higher level departmental assistance • Restore 1.00 Facilities Technician in the Public Works Department to maintain minimum levels of preventative maintenance work • Reclassify 5.00 Inspectors in the Utilities Department in accordance with arbitration (CMR 12156) • Restore 27 part time staff in the Community Services Department (6.51) and Library Department (0.28). Staff includes a Library Page, Technicians, Aides, Specialists, Recreation Leaders, and Arts & Sciences professionals that support the Library and various community services. MUNICIPAL FEE SCHEDULE On May 12, 2021, the Finance Committee reviewed the FY 2022 Proposed Municipal Fee Schedule and recommended approval as outlined in CMR #12193 and further amended by the At Places memorandum released on May 12, 2021, which can be found here. In addition to that report, on May 4 City of Palo Alto Page 9 the Finance Committee considered the impacts of various proposed changes to the operating plan of the Junior Museum and Zoo (JMZ) (CMR 12050) and recommended an adjusted operating plan including a $10 entry ticket and a corresponding membership price reduction. As a result of this direction, the municipal fee range for Family Membership was also reduced from a starting point of $150 to a starting point of $108 in alignment to the new operating plan. Attachment A, Exhibit 6 provides a summary of all recommended changes as reviewed by the City Council on May 17, 2021. FISCAL YEAR 2022 RATE CHANGES An overview of the rate changes was reviewed and approved by the Utilities Advisory Commission and Finance Committee in April 2021; each of these rate changes are included in the FY 2022 budget assumptions. This section references those changes for informational purposes only; a separate report recommending final rate changes will be considered concurrently by the City Council on June 21, 2021. • 0% rate change for Electric (recommended by Utilities Advisory Commission (UAC) and Finance Committee); • 2.0 % CPI increase for Fiber (recommended by UAC and Finance Committee); • 3.0% rate increase for Gas (recommended by UAC and Finance Committee); • 0% rate change for Refuse; • 2.0% CPI increase for Stormwater (recommended by UAC and Finance Committee); • 3.0% rate change for Wastewater (recommended by UAC and Finance Committee); and • 0% rate change for Water (recommended by UAC and Finance Committee) As part of ongoing efforts to mitigate impact from the COVID-19 pandemic, Council aimed to provide economic relief for residential and commercial customers by directing staff to keep rates flat or minimize rate increases without compromising the safety and integrity of the utility systems. Council approved of the 2.0 percent CPI increase for Fiber customers on the EDF-1 rate in accordance with the original dark fiber leasing agreement. Consistent with the 2017 Storm Water Management Fee ballot measure, Council also approved the 2.0 percent CPI increase for Stormwater to keep fund revenues consistent with inflationary cost increases and to provide sufficient funds for planned Stormwater Management capital and operating expenditures. Council approved a 3.0 percent increase for Gas to cover the substantial increases in Capital costs to support the cross -bore safety inspection program and resume a pattern of regular main replacement. Council also approved a 3.0 percent increase for Wastewater Collection due to increasing Capital costs in Wastewater Collection and Regional Water Quality Control Plant. REVIEW OF REFERRAL ITEMS FROM THE FULL CITY COUNCIL During the Budget Hearings, certain items were approved that require a longer timeline to return to the City Council and are recommended to be placed in the "long-term parking lot." The list below is reflective of the final referral items from the Budget Hearings that the City Council has directed staff to follow-up with additional work throughout FY 2022. Direct Staff to return by the end of October 2021 with preliminary 01 financial results so that the Council can consider budget amendments. City of Palo Alto Page 10 RESOURCE IMPACT This report summarizes and seeks the City Council approval of the FY 2022 Operating and Capital Budgets, the supporting fee schedules, and table of organization in order to support the projections and appropriations included. The approval of the City Manager's FY 2022 Capital and Operating Budget, as recommended to be amended in this report, would result in a projected General Fund Budget Stabilization Reserve of $36.0 million, which is below the City Council recommended level of 18.5 percent by $2.7 million. The projected changes to the fund balance for all other funds including Enterprise Funds, Internal Services Funds, Special Revenue Funds, and Capital Funds are outlined in Attachment A and accompanying exhibits and impacts to fund balance summarized as follows: Fund Type Capital Enterprise Internal Service Special Revenue Resource Impact (Non -General Fund) Fund Name Fund Balance Change Capital Improvement Fund -$13.2M Cubberley Infrastructure Fund -$0.6M Airport Fund -$0.5M Electric Fund -$8.3M Gas Fund +$2.8M Refuse Fund +$0.1M Stormwater Management Fund +$0.9M Utilities Administration Fund -$0.3M Wastewater Collection Fund -$0.4M Wastewater Treatment Fund +$12.5M Water Fund -$0.2M Printing and Mailing Fund -$1,000 Technology Fund +$0.2M Vehicle Fund -$29,000 Parks Impact Fee Fund -$7,000 Stanford University Medical Center Fund +$0.7M University Avenue Parking Permit Fund +$0.1M STAKEHOLDER ENGAGEMENT Community Budget Survey Results The City released an online survey on May 5, 2021 to facilitate community feedback on the FY 2022 budget, including prioritization of service areas, proposed reductions, and alternative funding sources. Results of the survey were provided to the City Council and Finance Committee throughout the budget process, at regular intervals, up through the closing of the budget survey on May 21, 2021 at 12:OOPM. Final survey results are available on the City's Budget website; for ease of reference results of the Community Budget Survey can be found in these memoranda: • May 12 At Places Memorandum: Additional Information and Clarification • May 17 At Place Memorandum: Budget Survey Results as of May 17th • May 25 At Place Memorandum: Budget Survey Results as of May 25th City of Palo Alto Page 11 ENVIRONMENTAL REVIEW This is not a project under Section 21065 for purposes of the California Environmental Quality Act (CEQA). Attachments: • Attachment A Exhibit 1 - City Manager's Fiscal Year 2022 Proposed Operating & Capital Budgets & Municipal Fee • Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2022 Proposed Operating and Capital Budget • Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2022 Proposed Operating and Capital Budget • Attachment A, Exhibit 4 - Central Adjustments in Various Funds • Attachment A, Exhibit 5 - Table of Organization • Attachment A, Exhibit 6 - Fiscal Year 2022 Municipal Fee Changes • Attachment B - Management and Professional Compensation Plan Cover Letter 2021-22 City of Palo Alto Page 12 CITY OF PALO ALTO ATTACHMENT A, EXHIBIT 1 Fiscal Year 2022 City Manager's Proposed Operating & Capital Budgets and Municipal Fees These documents were originally distributed on May 3, 2021. Printed copies are available upon request for $30 per book (FY 2021 fee). These documents may be viewed at any City of Palo Alto Library or the City's website: www.cityofpaloalto.org/Departments/Administrative-Services/City- Budget Changes to the Municipal Fee Schedule were distributed in Finance Committee Packet on May 12, 2021. The City Manager's Staff Report (#12193) can be viewed on the City's website: www.cityofpaloalto.org/files/assets/public/agendas- minutes-reports/reports/city-manager-reports-cmrs/2021/id-12193.pdf — At places memorandum: (Corrections and Clarifications to CMR #12193) www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/at- places-memo/05-12-21-fcm-at-places-memo-items-1-and-5.pdf In addition, various at places memorandum and presentations were presented throughout the Finance Committee Hearings in May 2021 to provide additional information. These documents can be found on the City's budget website under "FY 2022 Budget Process": www.cityofpaloalto.org/Departments/Administrative- Services/City-Budget ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Administrative Administrative Services Department Support Services Consistent with staff recommendation at the May 25 meeting, this action restores 0.50 Administrative Associate 11 in the Purchasing Division and realigns staff resources to allow for efficiencies in solicitation cycle time, such as changing levels for competitive solicitations and centralizing low dollar items from departments. $ $ 93,900 Administrative Business Registry Certificate (BRC) Revenue Adjustment $ (81,864) $ Services Consistent with staff recommendation at the May 25 meeting, this action reduces the revenue estimate for business registry fees to align with a fee waiver approved by the City Council (CMR 12167). City Attorney Restore City Attorney Administrative Support Consistent with staff recommendation at the May 25 meeting, this action restores vacancy savings that were recognized in the FY 2022 Proposed Budget from underfilling 1.0 Assistant City Attorney with 1.0 Deputy City Attorney, to help ensure that the Attorney's Office has adequate capacity to perform legal services. City Auditor Office City Auditor Administrative Support Consistent with staff recommendation at the May 25 meeting, this action partially restores auditing contract services with Baker -Tilly to help ensure that the Auditor's Office has adequate capacity to perform audit services. City Clerk Restore Transcription Services Consistent with Finance Committee recommendation at the May 12 meeting, this action restores transcription and production of sense minutes for the City Council meetings and Standing Committee meetings. Though transcribed minutes are not a legal requirement and do not represent the official record of Council and Committee action, they are a beneficial service to the community, Council, and City Staff. Restoring these services provides the community with a text summary of the minutes to review discussion and actions instead of the official action minutes and video. City Manager's Office Federal Lobbyist Contract Services Consistent with Finance Committee recommendation at the May 12 meeting, this action restores contract services for federal legislative lobbying to help ensure that the City stay informed on federal legislative activities, including funding opportunities for which the City may be eligible. $ $ $ $ $ 92,454 $ 30,000 $ 63,048 $ 40,000 ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Community Services Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation at the May 4 meeting, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108- $200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. $ (273,643) $ 675,000 Community Services Children's Theatre Outreach and Hot Dog Productions $ 118,425 $ 378,335 Consistent with City Council recommendation at the May 17 meeting, this action adds $378,000 of expenses, $118,000 of revenues, and the equivalent of 2.88 FTE to allow the Children's Theatre to provide Outreach and Hot Dog theater productions. These programs were reduced in the FY 2021 budget process. This expense is recommended to be partially offset in FY 2022 by $125,000 of one-time funding tentatively approved by the Finance Committee on May 12 for the Community Services Department. Community Services Community Services Arts Center Operating Hours, Programming, and Fees Consistent with Finance Committee recommendation at the May 12 meeting, this action restores the equivalent of 2.16 FTE staffing resources and $208,025 in corresponding expenses. This will allow the Art Center to continue to provide Family Days, exhibitions, school programs such as Project Look and Cultural Kaleidoscope, teen leadership programs, and volunteer and internship programs. This FY 2022 proposal included an increase in fees and corresponding revenue for Art Center programs and classes. As part of this recommendation, the revenue from the increased fees will still be increased ($64,000). Community Services Administrative Support Consistent with Finance Committee recommendation at the May 12 meeting, this action restores 1.00 FTE Administrative Assistant in the Community Services Department. This position supports the entire Community Services Department by coordinating the creation of marketing materials, managing agendas and reports, producing website content and responding to public request responses. This FY 2022 proposal included a reduction in printing costs for the Enjoy! Catalog. As part of this recommendation, the funding to print the Enjoy Catalog will still be reduced ($20,000). $ 208,025 $ 152,200 ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Community Services Human Service Resource Allocation Process (HSRAP) $ 50,000 $ 200,000 Consistent with Finance Committee and City Council recommendation at the May 12 and 17 meetings, this one-time action adds a total of $200,000 in additional expenses to be provided through the HSRAP process. This expense is partially offset by a $50,000 transfer from the Stanford University Medical Center (SUMC) Fund as recommended on May 12, 2021 by the Finance Committee, therefore the net impact to the General Fund is $150,000. Community Services Cubberley Theater Administrative Staffing $ $ 94,123 Consistent with Finance Committee recommendation at the May 12 meeting, this action restores 0.75 FTE Producer Arts/Science Program at the Cubberley Theater. This position supports the theater rental process, event scheduling, and various administrative and customer service duties. Community Services Children's Theatre Operations and Production Staffing Consistent with Finance Committee recommendation at the May 12 meeting, this action restores the equivalent of 1.32 FTE part- time staffing at the Children's Theatre. These positions provide costuming and customer service support. Community Services Teen Services Consistent with Finance Committee recommendation at the May 12 meeting, this action restores the equivalent of 1.21 FTE part- time staffing for Teen Services programming and Teen Center operations. This will allow the Teen Center to operate five days per week. The FY 2022 proposal included a recommendation to utilize the Bryant Street Garage/Think Fund resources to offset expenses in FY 2022. As part of this recommendation, this funding offset will still be applied ($150,000). Community Services Youth Community Services, Youth Connectedness Initiative Consistent with City Council recommendation at the May 17 meeting, this action allocates one-time funding of $50,000 to the Youth Community Services (YCS) Youth Connectedness Initiative (YCI). $ $ $ $ 68,224 $ 55,198 $ 50,000 ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Community Services Community Services Community Services Community Services Community Services Junior Museum and Zoo (JMZ) Marketing Consistent with Finance Committee recommendation at the May 12 meeting, this action restores $50,000 of the FY 2022 proposed $100,000 reduction to annual marketing budget for the JMZ. This will result in an annual marketing budget of approximately $150,000, or 75% of the original advertising resources. This level of marketing resources will allow the JMZ to partner with a marketing consultant to maximize the quality and impact of advertising campaigns. Sports and Recreation Reductions, Fees, and Staffing Consistent with Finance Committee recommendation at the May 12 meeting, this action restores 0.35 FTE Recreation Leader III that supports the Middle School Athletics (MSA) and Adult Sports programs and the bus transportation contract for Foothills Preserve summer camps. This position supports customer service; hiring of hourly staff; and coordination between the district, coaches, referees to support the MSA and Adult Sports programs. This FY 2022 proposal included an increase in athletic field rental fees. As part of this recommendation, the revenue from the increased fees will still be increased ($79,000). Twilight Concert Series Consistent with City Council recommendation at the May 17 meeting, this action adds $30,000 in expenses for the Twilight Concert Series. This program was reduced in the FY 2021 budget process. The Twilight Concert Series is the City of Palo Alto's summer events program. It includes concerts, movies nights, and other family -oriented community activities. This represents a 75% restoration of the program's prior resources and is expected to support three to four events. Baylands Interpretive Center Public Hours Consistent with Finance Committee recommendation at the May 12 meeting, this action restores the equivalent of 0.29 FTE and the public operating hours of the Baylands Interpretive Center. Cubberley Artist Studio Program (CASP) Administrative Staffing Consistent with Finance Committee recommendation at the May 12 meeting, this action restores 0.20 part-time Arts & Sciences Professional I. This position supports administrative, programmatic, and customer service tasks for the Public Art Division and the CASP. $ $ $ $ $ $ 50,000 $ 38,202 $ 30,000 $ 15,321 $ 12,173 ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Fire Fire Fire Human Resources Library Fire Station 2 Brown -out Consistent with Finance Committee recommendation at the May 11 meeting, this action restores overtime funding associated with the full brownout of Fire Station 2. This will restore staffing to FY 2021 levels that brownout on weekdays from 8pm to 8am and weekends at all hours. Fire Department Administrative Support Consistent with staff recommendation at the May 25 meeting, this action eliminates 0.48 part-time FTE Administrative Specialist and adds 1.00 FTE Administrative Associate 11. This will allow for additional departmental assistance with higher level tasks such as establishing the Subscription Fee online sign up portal and purchasing tasks related to the AED Maintenance contract. Equity Hiring Initiatives Consistent with Finance Committee recommendation at the May 12 meeting, this action allocates one-time funding for equity hiring initiatives. Human Resources Administrative Support Consistent with staff recommendation at the May 25 meeting, this action restores recruitment resources to keep pace with hiring for safety -sensitive and essential positions which have been exempted from the hiring freeze, assist with the current backlog, and address restored positions that must be filled from the FY 2022 budget process. Neighborhood Library Services Consistent with Finance Committee recommendation at the May 12 meeting, this action restores $545,000 of expenses and 5.28 FTE to maintain operating hours of the three smaller library branches: Children's, College Terrace, and Downtown. This will maintain FY 2021 service levels of 3 days per week at these branches. $ $ $ $ $ $ 709,000 $ 68,000 $ 50,000 $ 75,000 $ 544,918 ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Non -Departmental Reverse Savings for Potential Labor Concessions Consistent with City Council recommendation at the June 7 meeting, this one-time action uses unallocated funds to offset expense savings assumed in the FY 2022 Proposed budget for labor concessions that is in the Non -Departmental budget. As of the timing of this report, the City has not reached agreements with represented bargaining groups and is therefore reversing the assumed savings of $1.2M that was included in the FY 2022 Proposed Budget. Concessions to maintain a zero percent wage increase in the Management and Professional group are included in this budget and generate $0.4 million in savings in the General Fund ($0.7 million citywide). A corresponding action to add these savings to the BSR is included in this report. (see below) Non -Departmental Non -Departmental Establish Budget Uncertainty Reserve (City Council) Consistent with Finance Committee recommendation at the May 12 meeting, this action establishes a Budget Uncertainty Reserve (City Council) that the City Council may use to address unforeseen emergent issues that would otherwise impact City operations and services. Establish Reserve for Administrative Support Consistent with staff recommendation at the May 25 meeting, this action establishes a one-time reserve to provide funding for unforeseen resource needs in FY 2022. This funding will be used for one-time administrative support costs that are anticipated to materialize in various departments across the City as a result of service restoration and the City continuing to recover from effects of the COVID-19 pandemic. $ $ $ $ 905,000 $ 500,000 $ 300,000 Non -Departmental Reduce City Council Contingency $ $ (25,000) Consistent with Finance Committee recommendation at the May 25 meeting, this one-time action reduces Council Contingency by $25,000, to a remaining balance of $100,000. Non -Departmental Eliminate General Fund Transition Reserve $ $ (750,000) Consistent with staff recommendation at the May 25 meeting, this action eliminates the $750,0000 General Fund Transition Reserve. This reserve was established to offset the cost of severance, separation timing, and service changes that were anticipated to incur one-time transition costs in FY 2022. With the restoration of services and staffing, these costs are no longer anticipated. This funding is alternatively recommended to offset $875,000 in costs to restore administrative support functions. ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Non -Departmental Draw Unallocated American Rescue Plan Act (ARPA) Reserve The FY 2022 Proposed Operating Budget recognized 50 percent or $6.25 million of the $12.5 million that the City anticipated to receive from ARPA as part of the federal government COVID-19 relief package anticipated to be received over a 24 -month period. Of the $6.25 million, a total of $3.2 million was reserved for discussion and allocation by the Finance Committee and City Council during budget deliberations. This action recognizes the use of funds set aside in reserve. Non -Departmental Additional American Rescue Plan Act (ARPA) Allocation At the May 11 meeting, staff provided an update to the City's anticipated ARPA allocation at $13.7 million, an increase of $1.2 million from the $12.5 million estimated in the FY 2022 Proposed Budget. This additional funding was proposed by the Finance Committee to be split 50-50 over a 24 -month period, consistent with the allocation of the original estimate in the FY 2022 Proposed Budget. This recommendation was revised at the May 17 City Council meeting to reflect a 60-40 split of the receipt and appropriation of the $13.7 million over a 24 -moth period. This action recognizes the additional funding and revised funding split. $ $ (3,192,580) $ 1,970,000 $ Planning and Restore Current Planning Staffing $ $ 138,146 Development Consistent with Finance Committee recommendation at the May Services 12 meeting, this action restores 1.00 FTE Associate Planner that was eliminated in the FY 2022 Proposed Budget. This will support efficient processing timelines and timely permit issuance. Police Patrol Staffing $ $ 1,008,737 Consistent with Finance Committee recommendation at the May 11 meeting, this action restores 5.00 FTE Police Officers in Patrol Services that were eliminated in the FY 2022 Proposed Budget. This will maintain authorized sworn positions at FY 2021 levels. Police Crossing Guard Services Consistent with Finance Committee recommendation at the May 11 meeting, this action restores funding for crossing guard services that were reduced in the FY 2022 Proposed Budget. This will maintain crossing guard services at approximately 30 designated school area crosswalks and intersections, consistent with FY 2021 levels. $ $ 304,310 ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Police Police Public Works Public Works Reallocate Lieutenant from Police to City Manager's Office Consistent with Finance Committee recommendation at the May 11 meeting, this action restores funding for 1.00 FTE Lieutenant position that is reallocated to City Manager's Office to support community and business outreach and adaptation to the pandemic. This will allow the department to backfill the position during the temporary assignment. Administrative Programming Consistent with Finance Committee recommendation at the May 11 meeting, this action restores non -salary expenses to support the Citizen Academy, Reserve Dinner, DUI Campaign, PIO supplies/National Night Out, Bike Patrol, Explorer Program, and FBI academy that were reduced in the FY 2022 Proposed Budget. Restore Facilities Staffing Consistent with staff recommendation at the May 25 meeting, this action restores 1.00 FTE Facilities Technician to install, repair, and maintain systems at City facilities. As part of the FY 2022 Proposed Budget, this position was eliminated due to recommendations to close or reduce hours at several City facilities. During budget hearings, the Finance Committee and City Council recommended to restore operations at these facilities. This corresponding actions restores the position to help ensure timeliness for preventative maintenance work and add capacity to fulfill work orders of less critical or non -regulatory services (such as office/room reconfiguration, carpet/flooring repairs/replacement, furniture moving/set up for meetings, or treatment for nuisance pests). Restore Internal City Services for Citywide Facilities Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including custodial and utilities services essential to the maintenance and operation of these facilities. $ $ $ $ $ 292,903 $ 47,450 $ 136,178 $ 53,700 ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Various Fund Balance Fund Balance Fund Balance Fund Balance Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. $ $ 79,004 Draw on Budget Stabilization Reserve (BSR) $ $ (2,500,000) Consistent with Finance Committee recommendation at the May 12 meeting, this action reduces the BSR by $2,500,000, below the 18.5 percent target to approximately 17% of estimated FY 2022 expense levels. Adjustment to Fund Balance (Budget Stabilization Reserve) - $ $ 431,949 Management Wage Assumptions This action increases the General Fund Budget Stabilization Reserve for savings associated with a zero wage increase for the unrepresented Management and Profesionals group. Adjustment to Fund Balance (Budget Stabilization Reserve) - Service Employees International Union (SEIU) Wage Assumptions This action increases the General Fund Budget Stabilization Reserve for savings associated with a zero wage increase for SEIU upon contract expiration in December 2021. $ 260,000 Adjustment to Fund Balance (Budget Stabilization Reserve) $ $ This action adjusts the General Fund Budget Stabilization Reserve to offset the actions recommended in this report. GENERAL FUND (102 & 103) SUBTOTAL $ 1,782,918 $ 1,782,918 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment CAPITAL IMPROVEMENT FUNDS 1 1 CAPITAL IMPROVEMENT FUND (471) Capital Capital Improvement Project Amendments to Proposed This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. Projects with other recommended adjustments are detailed below. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. $ (538,735) $ 11,128,540 Capital Transfer from the Stanford University Medical Center Fund/ $ 1,200,000 $ 3,400,000 Charleston/Arastradero Project (PE -13011) On May 17th, the City Council directed staff to move forward in FY 2022 to fund the Charleston/Arastradero Corridor Project (PE - 13011) utilizing a combination of funding sources including $1.2 million from SUMC (Community Health and Safety) funding; $1.5 million from the Bike and Pedestrian Plan capital project (PL -04010); and $300,000 from FY 2021 savings in various street maintenance projects. This option allowed staff to award a contract immediately using current bids, adjusted the timeframe of this action from FY 2023, as initially indicated, to FY 2022 in the five-year CIP. Capital Transfer from the Stanford University Medical Center Fund/Bike $ (1,200,000) $ (1,500,000) and Pedestrian Plan Project (PL -04010) On May 17th, the City Council directed staff to move forward in FY 2022 to fund the Charleston/Arastradero Corridor Project (PE - 13011) utilizing a combination of funding sources including $1.2 million from SUMC (Community Health and Safety) funding; $1.5 million from the Bike and Pedestrian Plan capital project (PL -04010); and $300,000 from FY 2021 savings in various street maintenance projects. This resulted in subsequent funding realignments in revenues and expenses for the Bike and Pedestrian Plan Project (PL -04010). ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment CAPITAL IMPROVEMENT FUNDS 1 1 Capital Additional Funding to Charleston/Arastradero Project (PE -13011) $ $ (400,000) and realignment from Capital Improvement Fund Administration (AS -10000) On May 17th, the City Council directed staff to move forward in FY 2022 to fund the Charleston/Arastradero Corridor Project (PE - 13011) utilizing a combination of funding sources including $1.2 million from SUMC (Community Health and Safety) funding; $1.5 million from the Bike and Pedestrian Plan capital project (PL -04010); and $300,000 from FY 2021 savings in various street maintenance projects. To align salary expenses required for the Charleston/Arastradero Corridor Project, funding of $0.4 million will be reallocated from the Capital Improvement Fund Administration (AS -10000). Capital Transfer from the Gas Tax Fund/Streets Maintenance (PE -86070) $ (132,214) $ (132,214) The City received an updated Gas Tax revenue estimate for FY 2022. These revenues are generated by state collections of fuel taxes and vehicle registration fees and distributed to local jurisdictions to fund road rehabilitation and maintenance work on local streets and roads. This type of work is budgeted in the ongoing Streets Maintenance Capital Project (PE -86070) in the Capital Improvement Fund. The latest estimates results in a reduction of $132,214 in Gas Tax Revenue in the Gas Tax Fund offset by a $132,214 reduction in funding for the Streets Maintenance Capital Project (PE -86070) in the Capital Improvement Fund. Fund Balance Adjustment to Fund Balance (Infrastructure Reserve) This action adjusts the fund balance to offset adjustments recommended in this report. $ $ (13,167,275) CAPITAL IMPROVEMENT FUND (471) SUBTOTAL $ (670,949) $ (670,949) ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment CAPITAL IMPROVEMENT FUNDS CUBBERLEY INFRASTRUCTURE FUND (472) Capital Capital Improvement Project Amendments to Proposed $ - $ 557,204 This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Fund Balance Adjustment to Fund Balance (Infrastructure Reserve) This action adjusts the fund balance to offset adjustments recommended in this report. $ $ (557,204) CUBBERLEY INFRASTRUCTURE FUND (472) SUBTOTAL $ $ ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department ENTERPRISE FUNDS • AIRPORT FUND (530) Public Works Capital Improvement Project Adjustments to Proposed This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Public Works Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. Revenues Expenses Adjustment Adjustment $ 517,735 $ 924 Public Works Adjustment to Fund Balance $ $ (518,659) This action adjusts the fund balance to offset adjustments recommended in this report. AIRPORT FUND (530) SUBTOTAL $ ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department ENTERPRISE FUNDS UTILITIES ADMINISTRATION FUND (521) Utilities Restore Auditor Services Contract Consistent with staff recommendation at the May 25 meeting, this action partially restores auditing contract services with Baker -Tilly. Utilities Transfer to Capital Improvement Fund This action reappropriates funding for a transfer to the Capital Improvement Fund for work on the Facility Interior Finishes Replacement capital project (PF-02022). This work was unable to be completed in FY 2021, so the funding will be transferred when the work is completed in FY 2022. Utilities Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. Revenues Expenses Adjustment Adjustment $ 10,000 $ 169,000 $ 75,425 Utilities Adjustment to Fund Balance $ - $ (254,425) This action adjusts the fund balance to offset adjustments recommended in this report. UTILITIES ADMINISTRATION FUND (521) SUBTOTAL $ ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • ELECTRIC FUND (513 & 523) Utilities Capital Improvement Project Adjustments to Proposed $ - $ 8,452,009 This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Utilities Reclass to Inspector, WGW Utilities Field Service $ 3,340 Consistent with staff recommendation at the May 25 meeting, this action reclassifies 5.00 positions in the Utilities Department from a Field Service Inspector to a Water Gas Wastewater (WGW) Utilities Field Service Inspector classification due to an arbitration decision in January 2021 (CMR 12156). The new classification aligns the role with the specific service area and includes a 10 percent increase effective October 2016. Utilities Restore Internal City Services for Citywide Facilities $ 6,800 $ Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including allocated charges for custodial and utilities services essential to the maintenance and operation of these facilities. Utilities Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108-$200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Utilities Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. $ 100,143 $ $ - $ (8,348,406) ELECTRIC FUND (513 & 523) SUBTOTAL $ 106,943 $ 106,943 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • GAS FUND (514 & 524) Utilities Capital Improvement Project Adjustments to Proposed This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Utilities Gas Commodity Adjustments On May 25, 2021, the City Council approved a reduction to gas commodity costs for Carbon Neutral offsets accounted for in the financial plan. The proposed change reduces the commodity purchase costs by $1,623,991 from $18,031,102 to $16,431,102. Utilities Reclass to Inspector, WGW Utilities Field Service Consistent with staff recommendation at the May 25 meeting, this action reclassifies 5.00 positions in the Utilities Department from a Field Service Inspector to a Water Gas Wastewater (WGW) Utilities Field Service Inspector classification due to an arbitration decision in January 2021 (CMR 12156). The new classification aligns the role with the specific service area and includes a 10 percent increase effective October 2016. $ $ $ - $ (1,179,701) - $ (1,623,991) $ 19,429 Utilities Restore Internal City Services for Citywide Facilities $ 800 $ Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including allocated charges for custodial and utilities services essential to the maintenance and operation of these facilities. Utilities Junior Museum and Zoo (JMZ) Operating Plan $ 38,654 $ Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108-$200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Utilities Adjustment to Fund Balance $ - $ 2,823,717 This action adjusts the fund balance to offset adjustments recommended in this report. GAS FUND (514 & 524) SUBTOTAL $ 39,454 $ 39,454 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS REFUSE FUND (525) Public Works Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. Public Works Restore Internal City Services for Citywide Facilities Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including custodial and utilities services essential to the maintenance and operation of these facilities. Public Works Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108-$200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Public Works Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. $ - $ 5,829 $ 1,400 $ $ 92,416 $ $ $ 87,987 REFUSE FUND (525) SUBTOTAL $ 93,816 $ 93,816 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS STORMWATER MANAGEMENT FUND (528) Capital Capital Improvement Project Adjustments to Proposed This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. Projects with other recommended adjustments are detailed below. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. $ (875,033) Capital Revenue from the State of California/Trash Capture Device $ 613,000 $ 613,000 Installation (SD -22002) This action recognizes revenue ($0.6 million) from the State of California Department of Transportation (Caltrans) to reimburse the City for the design and construction of a Trash Capture Device (TCD) in the planting strip along Embarcadero Road located in front of the parking lot of Palo Alto Baylands Golf Links. This action also establishes the Trash Capture Device Installation capital project (SD -22002) in the Stormwater Management Fund to perform this work. The TCD will be integrated in a storm drain pipe to capture trash as small as five millimeters from a section of the storm drain system prior to discharging to the San Francisco Bay. Public Works Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. $ 4,562 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department ENTERPRISE FUNDS Public Works Restore Internal City Services for Citywide Facilities Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including custodial and utilities services essential to the maintenance and operation of these facilities. Public Works Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108-$200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Public Works Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. Revenues Expenses Adjustment Adjustment $ 500 $ $ 50,755 $ $ 921,725 STORMWATER MANAGEMENT FUND (528) SUBTOTAL $ 664,255 $ 664,255 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • WASTEWATER COLLECTION FUND (527) Utilities Capital Improvement Project Adjustments to Proposed $ - $ 420,000 This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Utilities Restore Internal City Services for Citywide Facilities $ 200 $ Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including allocated charges for custodial and utilities services essential to the maintenance and operation of these facilities. Utilities Reclass to Inspector, WGW Utilities Field Service $ - $ 5,968 Consistent with staff recommendation at the May 25 meeting, this action reclassifies 5.00 positions in the Utilities Department from a Field Service Inspector to a Water Gas Wastewater (WGW) Utilities Field Service Inspector classification due to an arbitration decision in January 2021 (CMR 12156). The new classification aligns the role with the specific service area and includes a 10 percent increase effective October 2016. Utilities Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108- $200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. $ 19,467 $ Utilities Adjustment to Fund Balance $ $ (406,300) This action adjusts the fund balance to offset adjustments recommended in this report. WASTEWATER COLLECTION FUND (527) SUBTOTAL $ 19,667 $ 19,667 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • WASTEWATER TREATMENT FUND (526) Public Works Capital Improvement Project Adjustments to Proposed This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Public Works Information Technology Administrative Support $ $ 27,608 Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. $ 12,502,000 $ (28,910) Public Works Adjustment to Fund Balance $ - $ 12,503,302 This action adjusts the fund balance to offset adjustments recommended in this report. WASTEWATER TREATMENT FUND (526) SUBTOTAL $ 12,502,000 $ 12,502,000 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • WATER FUND (522) Utilities Capital Improvement Project Adjustments to Proposed $ This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Utilities Junior Museum and Zoo (JMZ) Operating Plan $ 373,565 $ Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108-$200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Utilities Restore Internal City Services for Citywide Facilities $ 3,600 $ Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including allocated charges for custodial and utilities services essential to the maintenance and operation of these facilities. Utilities Reclass to Inspector, WGW Utilities Field Service Consistent with staff recommendation at the May 25 meeting, this action reclassifies 5.00 positions in the Utilities Department from a Field Service Inspector to a Water Gas Wastewater (WGW) Utilities Field Service Inspector classification due to an arbitration decision in January 2021 (CMR 12156). The new classification aligns the role with the specific service area and includes a 10 percent increase effective October 2016. $ 555,830 $ 13,554 Utilities Adjustment to Fund Balance $ $ (192,219) This action adjusts the fund balance to offset adjustments recommended in this report. WATER FUND (522) SUBTOTAL $ 377,165 $ 377,165 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment INTERNAL SERVICE FUNDS TECHNOLOGY FUND (682) Capital Capital Improvement Project Reappropriations $ $ (180,407) This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Information Information Technology Administrative Support $ 200,000 $ 200,000 Technology Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. Fund Balance Adjustment to Fund Balance $ - $ 180,407 This action adjusts the fund balance to offset adjustments recommended in this report. TECHNOLOGY FUND (682) SUBTOTAL $ 200,000 $ 200,000 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment INTERNAL SERVICE FUNDS VEHICLE REPLACEMENT FUND (681) Capital Capital Improvement Project Reappropriations This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Public Works Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. Fund Balance $ $ $ 22,870 $ 5,935 Adjustment to Fund Balance $ - $ (28,805) This action adjusts the fund balance to offset adjustments recommended in this report. VEHICLE REPLACEMENT FUND (681) SUBTOTAL $ $ ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment INTERNAL SERVICE FUNDS • PRINTING & MAILING FUND (683) Public Works Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. $ 712 Fund Balance Adjustment to Fund Balance $ $ (712) This action adjusts the fund balance to offset adjustments recommended in this report. PRINTING & MAILING FUND (683) SUBTOTAL $ $ ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment SPECIAL REVENUE FUNDS PARKS IMPACT FEE FUND (210) Community Transfer to the Capital Improvement Fund Services This action reappropriates funding for a transfer to the Capital Improvement Fund for work on the Park Restroom Installation Project (PG -19000). This work was unable to be completed in FY 2021, so the funding will be transferred when the work is completed in FY 2022. Fund Balance Ending Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. $ 6,561 $ (6,561) PARKS IMPACT FEE FUND (210) SUBTOTAL $ $ GAS TAX FUND (231) Non- State Gas Tax Funding Adjustment/Transfer to the Capital Departmental Improvement Fund The City received an updated Gas Tax revenue estimate for FY 2022 that is $132,214 lower than the state projection used in the FY 2022 Proposed Budget. This revenue is generated by state collections of fuel taxes and vehicle registration fees and distributed to local jurisdictions to fund road rehabilitation and maintenance work on local streets and roads. This type of work is budgeted in the ongoing Streets Maintenance Capital Project (PE -86070) in the Capital Improvement Fund. Staff recommends a reduction of $132,214 in Gas Tax Revenue in the Gas Tax Fund offset by a $132,214 reduction in funding for the Streets Maintenance Capital Project (PE -86070) in the Capital Improvement Fund. $ (132,214) $ (132,214) GAS TAX FUND (231) SUBTOTAL $ (132,214) $ (132,214) ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment SPECIAL REVENUE FUNDS COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) Planning & FY 2021-22 CDBG Grant Funding/Program Allocation Development Consistent with the staff recommendation at the May 25 meeting, Services this net -neutral action aligns the FY 2022 CDBG allocation with revised estimates from the department of Housing and Urban Development (HUD). On May 4, 2021, the City Council approved the FY 2021-22 CDBG annual action plan (CMR 12014). On May 13, 2021, HUD informed the City that they discovered an error in the formula calculations for the CDBG program and revised Palo Alto's annual allocation from $528,961 to $536,756, an increase of $7,795. This funding is recommended to be allocated to the Rebuilding Together Peninsula Safe at Home project, which focuses on critical health and safety related home repair needs for low-income Palo Alto homeowners. 7,795 $ 7,795 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) SUBTOTAL $ 7,795 $ 7,795 UNIVERSITY AVENUE PARKING PERMITS FUND (236) Office of Transportation Management Authority (TMA) $ $ (200,000) Transportation Consistent with City Council recommendation at the May 17 meeting, this one-time action reduces the funding to the TMA to $150,000 in FY 2022. The decrease in funding may impact the level of support the TMA can provide to low-income workers and may reduce the number of workers the TMA programs could serve. Office of Transfer to Capital Improvement Fund $ $ 72,400 Transportation This action reappropriates funding for a transfer to the Capital Improvement Fund for work on the University Avenue Parking Improvements capital project (PF-14003). This work was unable to be completed in FY 2021, so the funding will be transferred when the work is completed in FY 2022. Fund Balance Ending Fund Balance $ 127,600 This action adjusts the fund balance to offset the actions recommended in this report. UNIVERSITY AVENUE PARKING PERMITS FUND (236) SUBTOTAL $ ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment SPECIAL REVENUE FUNDS STANFORD UNIVERSITY MEDICAL CENTER (SUMO) FUND (260) Non- Transfer to the General Fund/HSRAP Funding $ $ 50,000 Departmental Consistent with the Finance Committee recommendation approved on May 25, 2021 this one-time action increases the transfer to the General Fund from the Stanford University Medical Center (SUMC) Fund to provide additional funding for Human Service Resource Allocation Process (HSRAP). The total increase in funding to HSRAP in FY 2022 is $200,000; $50,000 from the SUMC Fund and $150,000 from the General Fund. Non- Transfer to the Capital Improvement Fund for the Charleston $ Departmental Arastradero Corridor Project, Phase 4 Consistent with the Finance Committee recommendation on May 11 and City Council direction on May 17, this action increases the transfer from the SUMC Fund (Community Health and Safety) by $1.2 million in FY 2022 to support Phase Three of the Charleston Arastradero capital Project (PE -13011). Additional funding will come from the Bicycle and Pedestrian Plan (PL -04010) capital improvement project ($1.5 million) and from various street maintenance projects ($300,000). Non- Transfer to the Capital Improvement Fund for the Bicycle and $ Departmental Pedestrian Transportation Plan Consistent with the Finance Committee recommendation on May 11 and City Council direction on May 17, this action decreases the transfer from the SUMC Fund (Climate Change and Sustainable Communities) by $2.0 million in FY 2022 for the Bicycle and Pedestrian Plan capital Project (PL -04010). Due to staff constraints, work will be done to complete Phase Three of the Charleston Arastradero capital Project (PE -13011) in FY 2022, so work on PL - 04010 will be programmed in FY 2023, along with the transfer from the SUMC Fund. Fund Balance Ending Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. - $ 1,200,000 - $ (1,986,696) 736,696 STANFORD UNIVERSITY MEDICAL CENTER (SUMC) FUND (260) SUBTOTAL $ ATTACHMENT A, EXHIBIT 3 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED CAPITAL IMPROVEMENT PROGRAM FY 2022 Funding: Project Project Proposed Capital Title Number Budget Document FY 2022 Funding Adjustment Fundi CAPITAL IMPROVEMENT FUND Americans With Disabilities Act Compliance PF-93009 $ 832,326 $ (64,550) $ 767,776 Animal Shelter Renovation PE -19002 $ - $ 1,196,195 $ 1,196,195 Baylands Boardwalk Improvements PE -14018 $ - $ 8,630 $ 8,630 Bicycle and Pedestrian Transportation Plan Implementation PL -04010 $ 1,858,633 $ (1,327,991) $ 530,642 Boulware Park Improvements (merged with Birch Street Project PE -19003) PE -17005 $ 3,865,693 $ (65,050) $ 3,800,643 Building Systems Improvements PF-01003 $ 467,054 $ 558,037 $ 1,025,091 California Avenue District Gateway Signs PE -17004 $ - $ 141,238 $ 141,238 Cameron Park Improvements PG -14002 $ - $ 160,000 $ 160,000 Capital Improvement Fund Administration AS -10000 $ 1,439,507 $ (400,000) $ 1,039,507 Charleston/Arastradero Corridor Project PE -13011 $ 4,600,000 $ 3,400,000 $ 8,000,000 City Bridge Improvements PE -20001 $ 143,400 $ 5,630 $ 149,030 Civic Center Electrical Upgrade & EV Charger Installation PE -17010 $ 432,259 $ 82,452 $ 514,711 Civic Center Waterproofing Study and Repairs PE -15020 $ - $ 561,856 $ 561,856 Facility Interior Finishes Replacement PF-02022 $ 472,100 $ 228,000 $ 700,100 Fire Station 4 Replacement PE -18004 $ 949,999 $ (100,000) $ 849,999 Foothills Park Boronda Lake Dock Replacement 0S-18000 $ - $ 210,000 $ 210,000 Magical Bridge Playground Rubber and Synthetic Turf Resurfacing PE -21003 $ 487,550 $ 367,750 $ 855,300 Municipal Service Center A, B, & C Roof Replacement PF-17000 $ - $ 168,533 $ 168,533 Municipal Service Center Lighting, Mechanical, and Electrical Improvements PF-16006 $ 6,382,994 $ 115,632 $ 6,498,626 New California Avenue Area Parking Garage PE -18000 $ - $ 1,010,336 $ 1,010,336 New Downtown Parking Garage PE -15007 $ - $ 10,600 $ 10,600 New Public Safety Building PE -15001 $ 3,400,000 $ 5,636,041 $ 9,036,041 Newell Road/San Francisquito Creek Bridge Replacement PE -12011 $ 136,100 $ 320,088 $ 456,188 Performing Arts Venues Seat Replacement AC -18000 $ 381,200 $ (10,000) $ 371,200 Ramos Park Improvements PG -14000 $ - $ 137,000 $ 137,000 Roofing Replacement PF-00006 $ 692,800 $ 20,494 $ 713,294 Safe Routes To School PL -00026 $ 931,128 $ 210,000 $ 1,141,128 Street Maintenance PE -86070 $ 2,936,900 $ (132,214) $ 2,804,686 Transportation and Parking Improvements PL -12000 $ 510,400 $ 75,000 $ 585,400 University Avenue Parking Improvements PF-14003 $ 125,200 $ 72,400 $ 197,600 Water, Gas, Wastewater Office Remodel PE -19001 $ 777,904 $ (99,781) $ 678,123 CUBBERLEY INFRASTRUCTURE FUND Cubberley Field Restroom CB -17002 $ 334,787 $ (16,063) $ 318,724 Cubberley Repairs CB -17001 $ 206,600 $ 136,747 $ 343,347 Cubberley Roof Replacements CB -16002 $ 686,500 $ 436,520 $ 1,123,020 Airport Apron Reconstruction AIRPORT FUND AP -16000 $ 50,800 $ 441,940 $ 492,740 Airport Facilities Electrical Improvements AP -20000 $ - $ 75,795 $ 75,795 ELECTRIC FUND 1115 kV Electric Intertie 1EL-06001 1 $ 127,481 1 $ 51,000 1 $ 178,481 ATTACHMENT A, EXHIBIT 3 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED CAPITAL IMPROVEMENT PROGRAM P4 Capacitor Bank Installation EL -16002 $ 400,000 $ 145,616 $ 545,616 Colorado Power Station Equipment Upgrades EL -19001 $ 200,000 $ 640,003 $ 840,003 Colorado Substation Site Improvements EL -19002 $ 150,000 $ 588,570 $ 738,570 Electric Utility Geographic Information System EL -02011 $ 270,000 $ 222,100 $ 492,100 Facility Relocation for Caltrain Modernization Project EL -17007 $ - $ 556,286 $ 556,286 Foothills Rebuild (Fire Mitigation) EL -21001 $ 2,000,000 $ 1,878,351 $ 3,878,351 Inter -substation Line Protection Relay EL -17005 $ 150,000 $ 281,483 $ 431,483 Rebuild Underground District 15 EL -11003 $ 1,225,000 $ 25,000 $ 1,250,000 Rebuild Underground District 16 EL -13003 $ 350,000 $ 7,995 $ 357,995 Rebuild Underground District 24 EL -10006 $ - $ 526,294 $ 526,294 Rebuild Underground District 26 EL -16000 $ 255,000 $ 26,890 $ 281,890 Reconfigure Quarry Feeders EL -14005 $ 150,000 $ 10,306 $ 160,306 SCADA System Upgrades EL -02010 $ 400,000 $ 5,675 $ 405,675 Substation 60kV Breaker Replacement EL -17002 $ 900,000 $ 608,066 $ 1,508,066 Substation Physical Security EL -16003 $ 300,000 $ 1,153,447 $ 1,453,447 Underground District 46 - Charleston/EI Camino Real EL -12001 $ - $ 235,000 $ 235,000 Wood Pole Replacement EL -19004 $ 250,000 $ 1,489,927 $ 1,739,927 Gas Main Replacement - Project 23 GS -13001 $ 1,140,697 $ (679,701) $ 460,996 Gas Meters and Regulators GS -80019 $ 1,000,000 $ (500,000) $ 500,000 Corporation Way System Upgrades and Pump Station SD -21000 $ 3,354,594 $ (12,135) $ 3,342,459 Storm Drainage System Replacement And Rehabilitation SD -06101 $ 1,881,757 $ (868,694) $ 1,013,063 Trash Capture Device Installation SD -22002 $ - $ 613,000 $ 613,000 West Bayshore Road Trunk Line Improvements SD -23000 $ - $ 5,796 $ 5,796 THIVOLOIY AMID Development Center Blueprint Technology Enhancements TE-12001 $ 223,641 $ 68,587 $ 292,228 Public Safety Records Management System (RMS) Replacement TE-21000 $ 649,181 $ (309,781) $ 339,400 Radio Infrastructure Replacement TE-05000 $ 199,137 $ 60,787 $ 259,924 VEHICLE REPLACEMENT FUND Scheduled Vehicle and Equipment Replacement - Fiscal Year 2020 VR-20000 $ 1,523,803 $ (10,167) $ 1,513,636 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2021 VR-21000 $ 660,165 $ 33,037 $ 693,202 WASTEWATER COLLECTION FUND Wastewater Collection System Rehabilitation/Augmentation WC -16001 $ - Project 29 $ 350,000 $ 350,000 Wastewater General Equipment and Tools WC -13002 $ 50,000 $ 70,000 $ 120,000 ATTACHMENT A, EXHIBIT 3 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED CAPITAL IMPROVEMENT PROGRAM Project Title FY 2022 Funding: Project Proposed Capital Number Budget Document FY 2022 Funding Adjustment Fundin T•T•LW•STEW•TE'C0LLECTI9NFII• ° " ° l I 17 - - 420,000 $ WASTEWATER TREATMENT FUND New Laboratory And Environmental Services Building WQ-14002 $ 2,642,234 $ (7,362) $ 2,634,872 Plant Repair, Retrofit, and Equipment Replacement WQ-19002 $ 8,791,959 $ (21,548) $ 8,770,411 "f a q_ _tZ_! ,.k o a _i, WATER FUND Water Main Replacement - Project 28 WS -14001 $ 11,000,000 $ (90,000) $ 10,910,000 Water Regulation Station Improvements WS -07000 $ - $ 645,830 $ 645,830 ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Administrative Administrative Services Department Support Services Consistent with staff recommendation at the May 25 meeting, this action restores 0.50 Administrative Associate 11 in the Purchasing Division and realigns staff resources to maintain minimum procurement staffing necessary to support the organization and service levels. Namely, it maintains FY 2021 reduced staffing levels and restores further reductions in the FY 2022 Proposed Budget. This realignment of staff resources will allow for efficiencies in solicitation cycle time, such as changing levels for competitive solicitations and centralizing low -dollar items from departments. $ $ 93,900 Administrative Business Registry Certificate (BRC) Revenue Adjustment $ (81,864) $ Services Consistent with staff recommendation at the May 25 meeting, this action reduces the revenue estimate for business registry fees to align with a fee waiver approved by the City Council (CMR 12167). City Attorney Restore City Attorney Administrative Support This action restores funding for 1.00 Assistant City Attorney previously proposed to be underfilled at 1.00 Deputy City Attorney. This will restore the Office's ability to address complex strategic initiatives, manage response times and reliance on outside counsel expertise. This will ensure continued support of current complex and high priority goals adopted by the Council (e.g. but not limited to sustainability initiatives, ballot initiatives, and public private partnerships). City Auditor Office City Auditor Administrative Support Consistent with staff recommendation at the May 25 meeting, this action partially restores auditing contract services with Baker -Tilly to help ensure that the Auditor's Office has adequate capacity to perform audit services. City Clerk Restore Transcription Services Consistent with Finance Committee recommendation at the May 12 meeting, this action restores transcription and production of sense minutes for the City Council meetings and Standing Committee meetings. Though transcribed minutes are not a legal requirement and do not represent the official record of Council and Committee action, they are a beneficial service to the community, Council, and City Staff. Restoring these services provides the community with a text summary of the minutes to review discussion and actions instead of the official action minutes and video. $ $ $ $ 92,454 $ 30,000 $ 63,048 ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) City Manager's Office Federal Lobbyist Contract Services Consistent with Finance Committee recommendation at the May 12 meeting, this action restores contract services for federal legislative lobbying to help ensure that the City stay informed on federal legislative activities, including funding opportunities for which the City may be eligible. Community Services Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation at the May 4 meeting, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108- $200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Community Services Children's Theatre Outreach and Hot Dog Productions Consistent with City Council recommendation at the May 17 meeting, this action adds $378,000 of expenses, $118,000 of revenues, and the equivalent of 2.88 FTE to allow the Children's Theatre to provide Outreach and Hot Dog theater productions. These programs were reduced in the FY 2021 budget process. This expense is recommended to be partially offset in FY 2022 by $125,000 of one-time funding tentatively approved by the Finance Committee on May 12 for the Community Services Department. Community Services Arts Center Operating Hours, Programming, and Fees Consistent with Finance Committee recommendation at the May 12 meeting, this action restores the equivalent of 2.16 FTE staffing resources and $208,025 in corresponding expenses. This will allow the Art Center to continue to provide Family Days, exhibitions, school programs such as Project Look and Cultural Kaleidoscope, teen leadership programs, and volunteer and internship programs. This FY 2022 proposal included an increase in fees and corresponding revenue for Art Center programs and classes. As part of this recommendation, the revenue from the increased fees will still be increased ($64,000). $ 40,000 $ (273,643) $ 675,000 $ 118,425 $ 378,335 $ 208,025 ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Community Services Community Services Community Services Community Services Community Services Community Services Administrative Support Consistent with Finance Committee recommendation at the May 12 meeting, this action restores 1.00 FTE Administrative Assistant in the Community Services Department. This position supports the entire Community Services Department by coordinating the creation of marketing materials, managing agendas and reports, producing website content and responding to public request responses. This FY 2022 proposal included a reduction in printing costs for the Enjoy! Catalog. As part of this recommendation, the funding to print the Enjoy Catalog will still be reduced ($20,000). Human Service Resource Allocation Process (HSRAP) Consistent with Finance Committee and City Council recommendation at the May 12 and 17 meetings, this one-time action adds a total of $200,000 in additional expenses to be provided through the HSRAP process. This expense is partially offset by a $50,000 transfer from the Stanford University Medical Center (SUMC) Fund as recommended on May 12, 2021 by the Finance Committee, therefore the net impact to the General Fund is $150,000. Cubberley Theater Administrative Staffing Consistent with Finance Committee recommendation at the May 12 meeting, this action restores 0.75 FTE Producer Arts/Science Program at the Cubberley Theater. This position supports the theater rental process, event scheduling, and various administrative and customer service duties. Children's Theatre Operations and Production Staffing Consistent with Finance Committee recommendation at the May 12 meeting, this action restores the equivalent of 1.32 FTE part- time staffing at the Children's Theatre. These positions provide costuming and customer service support. Teen Services Consistent with Finance Committee recommendation at the May 12 meeting, this action restores the equivalent of 1.21 FTE part- time staffing for Teen Services programming and Teen Center operations. This will allow the Teen Center to operate five days per week. The FY 2022 proposal included a recommendation to utilize the Bryant Street Garage/Think Fund resources to offset expenses in FY 2022. As part of this recommendation, this funding offset will still be applied ($150,000). $ 152,200 $ 50,000 $ 200,000 $ 94,123 $ 68,224 $ 55,198 ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Community Services Community Services Youth Community Services, Youth Connectedness Initiative Consistent with City Council recommendation at the May 17 meeting, this action allocates one-time funding of $50,000 to the Youth Community Services (YCS) Youth Connectedness Initiative (YCI). Junior Museum and Zoo (JMZ) Marketing Consistent with Finance Committee recommendation at the May 12 meeting, this action restores $50,000 of the FY 2022 proposed $100,000 reduction to annual marketing budget for the JMZ. This will result in an annual marketing budget of approximately $150,000, or 75% of the original advertising resources. This level of marketing resources will allow the JMZ to partner with a marketing consultant to maximize the quality and impact of advertising campaigns. Community Services Sports and Recreation Reductions, Fees, and Staffing Consistent with Finance Committee recommendation at the May 12 meeting, this action restores 0.35 FTE Recreation Leader III that supports the Middle School Athletics (MSA) and Adult Sports programs and the bus transportation contract for Foothills Preserve summer camps. This position supports customer service; hiring of hourly staff; and coordination between the district, coaches, referees to support the MSA and Adult Sports programs. This FY 2022 proposal included an increase in athletic field rental fees. As part of this recommendation, the revenue from the increased fees will still be increased ($79,000). Community Services Twilight Concert Series Consistent with City Council recommendation at the May 17 meeting, this action adds $30,000 in expenses for the Twilight Concert Series. This program was reduced in the FY 2021 budget process. The Twilight Concert Series is the City of Palo Alto's summer events program. It includes concerts, movies nights, and other family -oriented community activities. This represents a 75% restoration of the program's prior resources and is expected to support three to four events. Community Services Baylands Interpretive Center Public Hours Consistent with Finance Committee recommendation at the May 12 meeting, this action restores the equivalent of 0.29 FTE and the public operating hours of the Baylands Interpretive Center. $ $ $ $ $ $ 50,000 $ 50,000 $ 38,202 $ 30,000 $ 15,321 ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Community Services Fire Fire Fire Human Resources Library Cubberley Artist Studio Program (CASP) Administrative Staffing Consistent with Finance Committee recommendation at the May 12 meeting, this action restores 0.20 part-time Arts & Sciences Professional!. This position supports administrative, programmatic, and customer service tasks for the Public Art Division and the CASP. Fire Station 2 Brown -out Consistent with Finance Committee recommendation at the May 11 meeting, this action restores overtime funding associated with the full brownout of Fire Station 2. This will restore staffing to FY 2021 levels that brownout on weekdays from 8pm to 8am and weekends at all hours. Fire Department Administrative Support Consistent with staff recommendation at the May 25 meeting, this action reclassifies 0.48 part-time FTE Administrative Specialist to 1.00 FTE Administrative Associate 11. This will allow for additional departmental assistance with higher level tasks such as establishing the Subscription Fee online sign up portal and purchasing tasks related to the AED Maintenance contract. Equity Hiring Initiatives Consistent with Finance Committee recommendation at the May 12 meeting, this action allocates one-time funding for equity hiring initiatives. Human Resources Administrative Support Consistent with staff recommendation at the May 25 meeting, this action restores recruitment resources to keep pace with hiring for safety -sensitive and essential positions which have been exempted from the hiring freeze, assist with the current backlog, and address restored positions that must be filled from the FY 2022 budget process. Funding may be used for staffing support or contractual support depending on the immediate needs and availability of resources. Neighborhood Library Services Consistent with Finance Committee recommendation at the May 12 meeting, this action restores $545,000 of expenses and 5.28 FTE to maintain operating hours of the three smaller library branches: Children's, College Terrace, and Downtown. This will maintain FY 2021 service levels of 3 days per week at these branches. $ $ $ $ $ $ $ 12,173 $ 709,000 $ 68,000 $ 50,000 $ 75,000 $ 544,918 ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Non -Departmental Reverse Savings for Potential Labor Concessions Consistent with City Council recommendation at the June 7 meeting, this action reinstates expected expenses for contractually obligated general wage increases for the City's Public Safety labor groups: Palo Alto Police Officers Association/Police Managers Association (PAPOA/PMA) ($0.5 million); and International Association of Fire Fighters/Fire Chiefs Association (IAFF/FCA) ($0.4 million). The City is currently in contract with PAPOA, PMA, IAFF, and FCA after reaching agreement with these groups last year for zero (0) percent general wage increases, deferring the contractual increase from June 2020 to June 2021. The City has not reached agreements with represented bargaining groups and is therefore reversing the assumed savings that was included in the FY 2022 Proposed Budget. Non -Departmental Non -Departmental Establish Budget Uncertainty Reserve (City Council) Consistent with Finance Committee recommendation at the May 12 meeting, this action establishes a Budget Uncertainty Reserve (City Council) that the City Council may use to address unforeseen emergent issues that would otherwise impact City operations and services. Establish Reserve for Administrative Support Consistent with staff recommendation at the May 25 meeting, this action establishes a one-time reserve to provide funding for unforeseen resource needs in FY 2022. This funding will be used for one-time administrative support costs that are anticipated to materialize in various departments across the City as a result of service restoration and the City continuing to recover from effects of the COVID-19 pandemic. $ $ $ $ 905,000 $ 500,000 $ 300,000 Non -Departmental Reduce City Council Contingency $ $ (25,000) Consistent with Finance Committee recommendation at the May 25 meeting, this one-time action reduces Council Contingency by $25,000, to a remaining balance of $100,000. Non -Departmental Eliminate General Fund Transition Reserve $ $ (750,000) Consistent with staff recommendation at the May 25 meeting, this action eliminates the $750,0000 General Fund Transition Reserve. This reserve was established to offset the cost of severance, separation timing, and service changes that were anticipated to incur one-time transition costs in FY 2022. With the restoration of services and staffing, these costs are no longer anticipated. This funding is alternatively recommended to offset $875,000 in costs to restore administrative support functions. ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Non -Departmental Draw Unallocated American Rescue Plan Act (ARPA) Reserve The FY 2022 Proposed Operating Budget recognized 50 percent or $6.25 million of the $12.5 million that the City anticipated to receive from ARPA as part of the federal government COVID-19 relief package anticipated to be received over a 24 -month period. Of the $6.25 million, a total of $3.2 million was reserved for discussion and allocation by the Finance Committee and City Council during budget deliberations. This action recognizes the use of funds set aside in reserve. Non -Departmental Additional American Rescue Plan Act (ARPA) Allocation At the May 11 meeting, staff provided an update to the City's anticipated ARPA allocation at $13.7 million, an increase of $1.2 million from the $12.5 million estimated in the FY 2022 Proposed Budget. This additional funding was proposed by the Finance Committee to be split 50-50 over a 24 -month period, consistent with the allocation of the original estimate in the FY 2022 Proposed Budget. This recommendation was revised at the May 17 City Council meeting to reflect a 60-40 split of the receipt and appropriation of the $13.7 million over a 24 -moth period. This action recognizes the additional funding and revised funding split. $ $ (3,192,580) $ 1,970,000 $ Planning and Restore Current Planning Staffing $ $ 138,146 Development Consistent with Finance Committee recommendation at the May Services 12 meeting, this action restores 1.00 FTE Associate Planner that was eliminated in the FY 2022 Proposed Budget. This will support efficient processing timelines and timely permit issuance. Police Patrol Staffing $ $ 1,008,737 Consistent with Finance Committee recommendation at the May 11 meeting, this action restores 5.00 FTE Police Officers in Patrol Services that were eliminated in the FY 2022 Proposed Budget. This will maintain authorized sworn positions at FY 2021 levels. Police Crossing Guard Services Consistent with Finance Committee recommendation at the May 11 meeting, this action restores funding for crossing guard services that were reduced in the FY 2022 Proposed Budget. This will maintain crossing guard services at approximately 30 designated school area crosswalks and intersections, consistent with FY 2021 levels. $ $ 304,310 ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Police Police Public Works Public Works Reallocate Lieutenant from Police to City Manager's Office Consistent with Finance Committee recommendation at the May 11 meeting, this action restores funding for 1.00 FTE Lieutenant position that is reallocated to City Manager's Office to support community and business outreach and adaptation to the pandemic. This will allow the department to backfill the position during the temporary assignment. Administrative Programming Consistent with Finance Committee recommendation at the May 11 meeting, this action restores non -salary expenses to support the Citizen Academy, Reserve Dinner, DUI Campaign, PIO supplies/National Night Out, Bike Patrol, Explorer Program, and FBI academy that were reduced in the FY 2022 Proposed Budget. Restore Facilities Staffing Consistent with staff recommendation at the May 25 meeting, this action restores 1.00 FTE Facilities Technician to install, repair, and maintain systems at City facilities. As part of the FY 2022 Proposed Budget, this position was eliminated due to recommendations to close or reduce hours at several City facilities. During budget hearings, the Finance Committee and City Council recommended to restore operations at these facilities. This corresponding actions restores the position to help ensure timeliness for preventative maintenance work and add capacity to fulfill work orders of less critical or non -regulatory services (such as office/room reconfiguration, carpet/flooring repairs/replacement, furniture moving/set up for meetings, or treatment for nuisance pests). Restore Internal City Services for Citywide Facilities Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including custodial and utilities services essential to the maintenance and operation of these facilities. $ $ $ $ $ 292,903 $ 47,450 $ 136,178 $ 53,700 ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Various Fund Balance Fund Balance Fund Balance Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. $ $ 79,004 Draw on Budget Stabilization Reserve (BSR) $ $ (2,500,000) Consistent with Finance Committee recommendation at the May 12 meeting, this action reduces the BSR by $2,500,000, below the 18.5 percent target to approximately 17% of estimated FY 2022 expense levels. Adjustment to Fund Balance (Budget Stabilization Reserve) - $ $ 431,949 Management Wage Assumptions This action increases the General Fund Budget Stabilization Reserve for savings associated with a zero wage increase for the unrepresented Management and Profesionals group. Adjustment to Fund Balance (Budget Stabilization Reserve) - Service Employees International Union (SEIU) Wage Assumptions This action increases the General Fund Budget Stabilization Reserve for savings associated with a zero wage increase for SEIU upon contract expiration in December 2021. $ 260,000 GENERAL FUND (102 & 103) SUBTOTAL $ 1,782,918 $ 1,782,918 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment CAPITAL IMPROVEMENT FUNDS 1 1 CAPITAL IMPROVEMENT FUND (471) Capital Capital Improvement Project Amendments to Proposed This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. Projects with other recommended adjustments are detailed below. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. $ 247,961 $ 11,128,540 Capital Transfer from the Stanford University Medical Center Fund/ $ 1,200,000 $ 3,400,000 Charleston/Arastradero Project (PE -13011) On May 17th, the City Council directed staff to move forward in FY 2022 to fund the Charleston/Arastradero Corridor Project (PE - 13011) utilizing a combination of funding sources including $1.2 million from SUMC (Community Health and Safety) funding; $1.5 million from the Bike and Pedestrian Plan capital project (PL -04010); and $300,000 from FY 2021 savings in various street maintenance projects. This option allowed staff to award a contract immediately using current bids, adjusted the timeframe of this action from FY 2023, as initially indicated, to FY 2022 in the five-year CIP. Capital Transfer from the Stanford University Medical Center Fund/Bike $ (1,986,696) $ (1,500,000) and Pedestrian Plan Project (PL -04010) On May 17th, the City Council directed staff to move forward in FY 2022 to fund the Charleston/Arastradero Corridor Project (PE - 13011) utilizing a combination of funding sources including $1.2 million from SUMC (Community Health and Safety) funding; $1.5 million from the Bike and Pedestrian Plan capital project (PL -04010); and $300,000 from FY 2021 savings in various street maintenance projects. The $2.0 million transfer from the SUMC Fund (Climate Change and Sustainable Communities) scheduled for FY 2022 for the Bike and Pedestrian Plan Project (PL -04010) will be shifted to FY 2023 in the 2022-2026 Capital Improvement Plan to cover costs planned in FY 2023 for PL -04010. ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment CAPITAL IMPROVEMENT FUNDS 1 1 Capital Additional Funding to Charleston/Arastradero Project (PE -13011) $ $ (400,000) and realignment from Capital Improvement Fund Administration (AS -10000) On May 17th, the City Council directed staff to move forward in FY 2022 to fund the Charleston/Arastradero Corridor Project (PE - 13011) utilizing a combination of funding sources including $1.2 million from SUMC (Community Health and Safety) funding; $1.5 million from the Bike and Pedestrian Plan capital project (PL -04010); and $300,000 from FY 2021 savings in various street maintenance projects. To align salary expenses required for the Charleston/Arastradero Corridor Project, funding of $0.4 million will be reallocated from the Capital Improvement Fund Administration (AS -10000). Capital Transfer from the Gas Tax Fund/Streets Maintenance (PE -86070) $ (132,214) $ (132,214) The City received an updated Gas Tax revenue estimate for FY 2022. These revenues are generated by state collections of fuel taxes and vehicle registration fees and distributed to local jurisdictions to fund road rehabilitation and maintenance work on local streets and roads. This type of work is budgeted in the ongoing Streets Maintenance Capital Project (PE -86070) in the Capital Improvement Fund. The latest estimates results in a reduction of $132,214 in Gas Tax Revenue in the Gas Tax Fund offset by a $132,214 reduction in funding for the Streets Maintenance Capital Project (PE -86070) in the Capital Improvement Fund. Fund Balance Adjustment to Fund Balance (Infrastructure Reserve) This action adjusts the fund balance to offset adjustments recommended in this report. $ $ (13,167,275) CAPITAL IMPROVEMENT FUND (471) SUBTOTAL $ (670,949) $ (670,949) ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment CAPITAL IMPROVEMENT FUNDS CUBBERLEY INFRASTRUCTURE FUND (472) Capital Capital Improvement Project Amendments to Proposed $ - $ 557,204 This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Fund Balance Adjustment to Fund Balance (Infrastructure Reserve) $ $ (557,204) This action adjusts the fund balance to offset adjustments recommended in this report. CUBBERLEY INFRASTRUCTURE FUND (472) SUBTOTAL $ $ ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department ENTERPRISE FUNDS • AIRPORT FUND (530) Public Works Capital Improvement Project Adjustments to Proposed This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Public Works Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. Revenues Expenses Adjustment Adjustment $ 517,735 $ 924 Public Works Adjustment to Fund Balance $ $ (518,659) This action adjusts the fund balance to offset adjustments recommended in this report. AIRPORT FUND (530) SUBTOTAL $ ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department ENTERPRISE FUNDS UTILITIES ADMINISTRATION FUND (521) Utilities Restore Auditor Services Contract Consistent with staff recommendation at the May 25 meeting, this action partially restores auditing contract services with Baker -Tilly. Utilities Transfer to Capital Improvement Fund This action reappropriates funding for a transfer to the Capital Improvement Fund for work on the Facility Interior Finishes Replacement capital project (PF-02022). This work was unable to be completed in FY 2021, so the funding will be transferred when the work is completed in FY 2022. Utilities Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. Revenues Expenses Adjustment Adjustment $ 10,000 $ 169,000 $ 75,425 Utilities Adjustment to Fund Balance $ - $ (254,425) This action adjusts the fund balance to offset adjustments recommended in this report. UTILITIES ADMINISTRATION FUND (521) SUBTOTAL $ ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • ELECTRIC FUND (513 & 523) Utilities Capital Improvement Project Adjustments to Proposed $ - $ 8,452,009 This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Utilities Reclass to Inspector, WGW Utilities Field Service $ 3,340 Consistent with staff recommendation at the May 25 meeting, this action reclassifies 5.00 positions in the Utilities Department from a Field Service Inspector to a Water Gas Wastewater (WGW) Utilities Field Service Inspector classification due to an arbitration decision in January 2021 (CMR 12156). The new classification aligns the role with the specific service area and includes a 10 percent increase effective October 2016. Utilities Restore Internal City Services for Citywide Facilities $ 6,800 $ Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including allocated charges for custodial and utilities services essential to the maintenance and operation of these facilities. Utilities Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108-$200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Utilities Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. $ 100,143 $ $ - $ (8,348,406) ELECTRIC FUND (513 & 523) SUBTOTAL $ 106,943 $ 106,943 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • GAS FUND (514 & 524) Utilities Capital Improvement Project Adjustments to Proposed This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Utilities Gas Commodity Adjustments On May 25, 2021, the City Council approved a reduction to gas commodity costs for Carbon Neutral offsets accounted for in the financial plan. The proposed change reduces the commodity purchase costs by $1,623,991 from $18,031,102 to $16,431,102. Utilities Reclass to Inspector, WGW Utilities Field Service Consistent with staff recommendation at the May 25 meeting, this action reclassifies 5.00 positions in the Utilities Department from a Field Service Inspector to a Water Gas Wastewater (WGW) Utilities Field Service Inspector classification due to an arbitration decision in January 2021 (CMR 12156). The new classification aligns the role with the specific service area and includes a 10 percent increase effective October 2016. $ $ $ - $ (1,179,701) - $ (1,623,991) $ 19,429 Utilities Restore Internal City Services for Citywide Facilities $ 800 $ Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including allocated charges for custodial and utilities services essential to the maintenance and operation of these facilities. Utilities Junior Museum and Zoo (JMZ) Operating Plan $ 38,654 $ Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108-$200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Utilities Adjustment to Fund Balance $ - $ 2,823,717 This action adjusts the fund balance to offset adjustments recommended in this report. GAS FUND (514 & 524) SUBTOTAL $ 39,454 $ 39,454 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS REFUSE FUND (525) Public Works Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. Public Works Restore Internal City Services for Citywide Facilities Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including custodial and utilities services essential to the maintenance and operation of these facilities. Public Works Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108-$200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Public Works Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. $ - $ 5,829 $ 1,400 $ $ 92,416 $ $ $ 87,987 REFUSE FUND (525) SUBTOTAL $ 93,816 $ 93,816 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS STORMWATER MANAGEMENT FUND (528) Capital Capital Improvement Project Adjustments to Proposed This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. Projects with other recommended adjustments are detailed below. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. $ (875,033) Capital Revenue from the State of California/Trash Capture Device $ 613,000 $ 613,000 Installation (SD -22002) This action recognizes revenue ($0.6 million) from the State of California Department of Transportation (Caltrans) to reimburse the City for the design and construction of a Trash Capture Device (TCD) in the planting strip along Embarcadero Road located in front of the parking lot of Palo Alto Baylands Golf Links. This action also establishes the Trash Capture Device Installation capital project (SD -22002) in the Stormwater Management Fund to perform this work. The TCD will be integrated in a storm drain pipe to capture trash as small as five millimeters from a section of the storm drain system prior to discharging to the San Francisco Bay. Public Works Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. $ 4,562 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department ENTERPRISE FUNDS Public Works Restore Internal City Services for Citywide Facilities Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including custodial and utilities services essential to the maintenance and operation of these facilities. Public Works Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108-$200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Public Works Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. Revenues Expenses Adjustment Adjustment $ 500 $ $ 50,755 $ $ 921,725 STORMWATER MANAGEMENT FUND (528) SUBTOTAL $ 664,255 $ 664,255 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • WASTEWATER COLLECTION FUND (527) Utilities Capital Improvement Project Adjustments to Proposed $ - $ 420,000 This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Utilities Restore Internal City Services for Citywide Facilities $ 200 $ Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including allocated charges for custodial and utilities services essential to the maintenance and operation of these facilities. Utilities Reclass to Inspector, WGW Utilities Field Service $ - $ 5,968 Consistent with staff recommendation at the May 25 meeting, this action reclassifies 5.00 positions in the Utilities Department from a Field Service Inspector to a Water Gas Wastewater (WGW) Utilities Field Service Inspector classification due to an arbitration decision in January 2021 (CMR 12156). The new classification aligns the role with the specific service area and includes a 10 percent increase effective October 2016. Utilities Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108- $200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. $ 19,467 $ Utilities Adjustment to Fund Balance $ $ (406,300) This action adjusts the fund balance to offset adjustments recommended in this report. WASTEWATER COLLECTION FUND (527) SUBTOTAL $ 19,667 $ 19,667 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • WASTEWATER TREATMENT FUND (526) Public Works Capital Improvement Project Adjustments to Proposed This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Public Works Information Technology Administrative Support $ $ 27,608 Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. $ 12,502,000 $ (28,910) Public Works Adjustment to Fund Balance $ - $ 12,503,302 This action adjusts the fund balance to offset adjustments recommended in this report. WASTEWATER TREATMENT FUND (526) SUBTOTAL $ 12,502,000 $ 12,502,000 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • WATER FUND (522) Utilities Capital Improvement Project Adjustments to Proposed $ This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Utilities Junior Museum and Zoo (JMZ) Operating Plan $ 373,565 $ Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108-$200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Utilities Restore Internal City Services for Citywide Facilities $ 3,600 $ Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including allocated charges for custodial and utilities services essential to the maintenance and operation of these facilities. Utilities Reclass to Inspector, WGW Utilities Field Service Consistent with staff recommendation at the May 25 meeting, this action reclassifies 5.00 positions in the Utilities Department from a Field Service Inspector to a Water Gas Wastewater (WGW) Utilities Field Service Inspector classification due to an arbitration decision in January 2021 (CMR 12156). The new classification aligns the role with the specific service area and includes a 10 percent increase effective October 2016. $ 555,830 $ 13,554 Utilities Adjustment to Fund Balance $ $ (192,219) This action adjusts the fund balance to offset adjustments recommended in this report. WATER FUND (522) SUBTOTAL $ 377,165 $ 377,165 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment INTERNAL SERVICE FUNDS TECHNOLOGY FUND (682) Capital Capital Improvement Project Reappropriations $ $ (180,407) This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Information Information Technology Administrative Support $ 200,000 $ 200,000 Technology Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. Fund Balance Adjustment to Fund Balance $ - $ 180,407 This action adjusts the fund balance to offset adjustments recommended in this report. TECHNOLOGY FUND (682) SUBTOTAL $ 200,000 $ 200,000 ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment INTERNAL SERVICE FUNDS VEHICLE REPLACEMENT FUND (681) Capital Capital Improvement Project Reappropriations This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Public Works Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. Fund Balance $ $ $ 22,870 $ 5,935 Adjustment to Fund Balance $ - $ (28,805) This action adjusts the fund balance to offset adjustments recommended in this report. VEHICLE REPLACEMENT FUND (681) SUBTOTAL $ $ ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment INTERNAL SERVICE FUNDS • PRINTING & MAILING FUND (683) Public Works Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. $ 712 Fund Balance Adjustment to Fund Balance $ $ (712) This action adjusts the fund balance to offset adjustments recommended in this report. PRINTING & MAILING FUND (683) SUBTOTAL $ $ ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment SPECIAL REVENUE FUNDS PARKS IMPACT FEE FUND (210) Community Transfer to the Capital Improvement Fund Services This action reappropriates funding for a transfer to the Capital Improvement Fund for work on the Park Restroom Installation Project (PG -19000). This work was unable to be completed in FY 2021, so the funding will be transferred when the work is completed in FY 2022. Fund Balance Ending Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. $ 6,561 $ (6,561) PARKS IMPACT FEE FUND (210) SUBTOTAL $ $ GAS TAX FUND (231) Non- State Gas Tax Funding Adjustment/Transfer to the Capital Departmental Improvement Fund The City received an updated Gas Tax revenue estimate for FY 2022 that is $132,214 lower than the state projection used in the FY 2022 Proposed Budget. This revenue is generated by state collections of fuel taxes and vehicle registration fees and distributed to local jurisdictions to fund road rehabilitation and maintenance work on local streets and roads. This type of work is budgeted in the ongoing Streets Maintenance Capital Project (PE -86070) in the Capital Improvement Fund. Staff recommends a reduction of $132,214 in Gas Tax Revenue in the Gas Tax Fund offset by a $132,214 reduction in funding for the Streets Maintenance Capital Project (PE -86070) in the Capital Improvement Fund. $ (132,214) $ (132,214) GAS TAX FUND (231) SUBTOTAL $ (132,214) $ (132,214) ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment SPECIAL REVENUE FUNDS COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) Planning & FY 2021-22 CDBG Grant Funding/Program Allocation Development Consistent with the staff recommendation at the May 25 meeting, Services this net -neutral action aligns the FY 2022 CDBG allocation with revised estimates from the department of Housing and Urban Development (HUD). On May 4, 2021, the City Council approved the FY 2021-22 CDBG annual action plan (CMR 12014). On May 13, 2021, HUD informed the City that they discovered an error in the formula calculations for the CDBG program and revised Palo Alto's annual allocation from $528,961 to $536,756, an increase of $7,795. This funding is recommended to be allocated to the Rebuilding Together Peninsula Safe at Home project, which focuses on critical health and safety related home repair needs for low-income Palo Alto homeowners. 7,795 $ 7,795 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) SUBTOTAL $ 7,795 $ 7,795 UNIVERSITY AVENUE PARKING PERMITS FUND (236) Office of Transportation Management Authority (TMA) $ $ (200,000) Transportation Consistent with City Council recommendation at the May 17 meeting, this one-time action reduces the funding to the TMA to $150,000 in FY 2022. The decrease in funding may impact the level of support the TMA can provide to low-income workers and may reduce the number of workers the TMA programs could serve. Office of Transfer to Capital Improvement Fund $ $ 72,400 Transportation This action reappropriates funding for a transfer to the Capital Improvement Fund for work on the University Avenue Parking Improvements capital project (PF-14003). This work was unable to be completed in FY 2021, so the funding will be transferred when the work is completed in FY 2022. Fund Balance Ending Fund Balance $ 127,600 This action adjusts the fund balance to offset the actions recommended in this report. UNIVERSITY AVENUE PARKING PERMITS FUND (236) SUBTOTAL $ ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment SPECIAL REVENUE FUNDS STANFORD UNIVERSITY MEDICAL CENTER (SUMO) FUND (260) Non- Transfer to the General Fund/HSRAP Funding $ $ 50,000 Departmental Consistent with the Finance Committee recommendation approved on May 25, 2021 this one-time action increases the transfer to the General Fund from the Stanford University Medical Center (SUMC) Fund to provide additional funding for Human Service Resource Allocation Process (HSRAP). The total increase in funding to HSRAP in FY 2022 is $200,000; $50,000 from the SUMC Fund and $150,000 from the General Fund. Non- Transfer to the Capital Improvement Fund for the Charleston $ Departmental Arastradero Corridor Project, Phase 4 Consistent with the Finance Committee recommendation on May 11 and City Council direction on May 17, this action increases the transfer from the SUMC Fund (Community Health and Safety) by $1.2 million in FY 2022 to support Phase Three of the Charleston Arastradero capital Project (PE -13011). Additional funding will come from the Bicycle and Pedestrian Plan (PL -04010) capital improvement project ($1.5 million) and from various street maintenance projects ($300,000). Non- Transfer to the Capital Improvement Fund for the Bicycle and $ Departmental Pedestrian Transportation Plan Consistent with the Finance Committee recommendation on May 11 and City Council direction on May 17, this action decreases the transfer from the SUMC Fund (Climate Change and Sustainable Communities) by $2.0 million in FY 2022 for the Bicycle and Pedestrian Plan capital Project (PL -04010). Due to staff constraints, work will be done to complete Phase Three of the Charleston Arastradero capital Project (PE -13011) in FY 2022, so work on PL - 04010 will be programmed in FY 2023, along with the transfer from the SUMC Fund. Fund Balance Ending Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. - $ 1,200,000 - $ (1,986,696) 736,696 STANFORD UNIVERSITY MEDICAL CENTER (SUMC) FUND (260) SUBTOTAL $ ATTACHMENT A, EXHIBIT 3 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED CAPITAL IMPROVEMENT PROGRAM FY 2022 Funding: Project Project Proposed Capital Title Number Budget Document FY 2022 Funding Adjustment Fundi CAPITAL IMPROVEMENT FUND Americans With Disabilities Act Compliance PF-93009 $ 832,326 $ (64,550) $ 767,776 Animal Shelter Renovation PE -19002 $ - $ 1,196,195 $ 1,196,195 Baylands Boardwalk Improvements PE -14018 $ - $ 8,630 $ 8,630 Bicycle and Pedestrian Transportation Plan Implementation PL -04010 $ 1,858,633 $ (1,327,991) $ 530,642 Boulware Park Improvements (merged with Birch Street Project PE -19003) PE -17005 $ 3,865,693 $ (65,050) $ 3,800,643 Building Systems Improvements PF-01003 $ 467,054 $ 558,037 $ 1,025,091 California Avenue District Gateway Signs PE -17004 $ - $ 141,238 $ 141,238 Cameron Park Improvements PG -14002 $ - $ 160,000 $ 160,000 Capital Improvement Fund Administration AS -10000 $ 1,439,507 $ (400,000) $ 1,039,507 Charleston/Arastradero Corridor Project PE -13011 $ 4,600,000 $ 3,400,000 $ 8,000,000 City Bridge Improvements PE -20001 $ 143,400 $ 5,630 $ 149,030 Civic Center Electrical Upgrade & EV Charger Installation PE -17010 $ 432,259 $ 82,452 $ 514,711 Civic Center Waterproofing Study and Repairs PE -15020 $ - $ 561,856 $ 561,856 Facility Interior Finishes Replacement PF-02022 $ 472,100 $ 228,000 $ 700,100 Fire Station 4 Replacement PE -18004 $ 949,999 $ (100,000) $ 849,999 Foothills Park Boronda Lake Dock Replacement 0S-18000 $ - $ 210,000 $ 210,000 Magical Bridge Playground Rubber and Synthetic Turf Resurfacing PE -21003 $ 487,550 $ 367,750 $ 855,300 Municipal Service Center A, B, & C Roof Replacement PF-17000 $ - $ 168,533 $ 168,533 Municipal Service Center Lighting, Mechanical, and Electrical Improvements PF-16006 $ 6,382,994 $ 115,632 $ 6,498,626 New California Avenue Area Parking Garage PE -18000 $ - $ 1,010,336 $ 1,010,336 New Downtown Parking Garage PE -15007 $ - $ 10,600 $ 10,600 New Public Safety Building PE -15001 $ 3,400,000 $ 5,636,041 $ 9,036,041 Newell Road/San Francisquito Creek Bridge Replacement PE -12011 $ 136,100 $ 320,088 $ 456,188 Performing Arts Venues Seat Replacement AC -18000 $ 381,200 $ (10,000) $ 371,200 Ramos Park Improvements PG -14000 $ - $ 137,000 $ 137,000 Roofing Replacement PF-00006 $ 692,800 $ 20,494 $ 713,294 Safe Routes To School PL -00026 $ 931,128 $ 210,000 $ 1,141,128 Street Maintenance PE -86070 $ 2,936,900 $ (132,214) $ 2,804,686 Transportation and Parking Improvements PL -12000 $ 510,400 $ 75,000 $ 585,400 University Avenue Parking Improvements PF-14003 $ 125,200 $ 72,400 $ 197,600 Water, Gas, Wastewater Office Remodel PE -19001 $ 777,904 $ (99,781) $ 678,123 CUBBERLEY INFRASTRUCTURE FUND Cubberley Field Restroom CB -17002 $ 334,787 $ (16,063) $ 318,724 Cubberley Repairs CB -17001 $ 206,600 $ 136,747 $ 343,347 Cubberley Roof Replacements CB -16002 $ 686,500 $ 436,520 $ 1,123,020 Airport Apron Reconstruction AIRPORT FUND AP -16000 $ 50,800 $ 441,940 $ 492,740 Airport Facilities Electrical Improvements AP -20000 $ - $ 75,795 $ 75,795 ELECTRIC FUND 1115 kV Electric Intertie 1EL-06001 1 $ 127,481 1 $ 51,000 1 $ 178,481 ATTACHMENT A, EXHIBIT 3 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED CAPITAL IMPROVEMENT PROGRAM P4 Capacitor Bank Installation EL -16002 $ 400,000 $ 145,616 $ 545,616 Colorado Power Station Equipment Upgrades EL -19001 $ 200,000 $ 640,003 $ 840,003 Colorado Substation Site Improvements EL -19002 $ 150,000 $ 588,570 $ 738,570 Electric Utility Geographic Information System EL -02011 $ 270,000 $ 222,100 $ 492,100 Facility Relocation for Caltrain Modernization Project EL -17007 $ - $ 556,286 $ 556,286 Foothills Rebuild (Fire Mitigation) EL -21001 $ 2,000,000 $ 1,878,351 $ 3,878,351 Inter -substation Line Protection Relay EL -17005 $ 150,000 $ 281,483 $ 431,483 Rebuild Underground District 15 EL -11003 $ 1,225,000 $ 25,000 $ 1,250,000 Rebuild Underground District 16 EL -13003 $ 350,000 $ 7,995 $ 357,995 Rebuild Underground District 24 EL -10006 $ - $ 526,294 $ 526,294 Rebuild Underground District 26 EL -16000 $ 255,000 $ 26,890 $ 281,890 Reconfigure Quarry Feeders EL -14005 $ 150,000 $ 10,306 $ 160,306 SCADA System Upgrades EL -02010 $ 400,000 $ 5,675 $ 405,675 Substation 60kV Breaker Replacement EL -17002 $ 900,000 $ 608,066 $ 1,508,066 Substation Physical Security EL -16003 $ 300,000 $ 1,153,447 $ 1,453,447 Underground District 46 - Charleston/EI Camino Real EL -12001 $ - $ 235,000 $ 235,000 Wood Pole Replacement EL -19004 $ 250,000 $ 1,489,927 $ 1,739,927 Gas Main Replacement - Project 23 GS -13001 $ 1,140,697 $ (679,701) $ 460,996 Gas Meters and Regulators GS -80019 $ 1,000,000 $ (500,000) $ 500,000 Corporation Way System Upgrades and Pump Station SD -21000 $ 3,354,594 $ (12,135) $ 3,342,459 Storm Drainage System Replacement And Rehabilitation SD -06101 $ 1,881,757 $ (868,694) $ 1,013,063 Trash Capture Device Installation SD -22002 $ - $ 613,000 $ 613,000 West Bayshore Road Trunk Line Improvements SD -23000 $ - $ 5,796 $ 5,796 THIVOLOIY AMID Development Center Blueprint Technology Enhancements TE-12001 $ 223,641 $ 68,587 $ 292,228 Public Safety Records Management System (RMS) Replacement TE-21000 $ 649,181 $ (309,781) $ 339,400 Radio Infrastructure Replacement TE-05000 $ 199,137 $ 60,787 $ 259,924 VEHICLE REPLACEMENT FUND Scheduled Vehicle and Equipment Replacement - Fiscal Year 2020 VR-20000 $ 1,523,803 $ (10,167) $ 1,513,636 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2021 VR-21000 $ 660,165 $ 33,037 $ 693,202 WASTEWATER COLLECTION FUND Wastewater Collection System Rehabilitation/Augmentation WC -16001 $ - Project 29 $ 350,000 $ 350,000 Wastewater General Equipment and Tools WC -13002 $ 50,000 $ 70,000 $ 120,000 ATTACHMENT A, EXHIBIT 3 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED CAPITAL IMPROVEMENT PROGRAM Project Title FY 2022 Funding: Project Proposed Capital Number Budget Document FY 2022 Funding Adjustment Fundin T•T•LW•STEW•TE'C0LLECTI9NFII• ° " ° l I 17 - - 420,000 $ WASTEWATER TREATMENT FUND New Laboratory And Environmental Services Building WQ-14002 $ 2,642,234 $ (7,362) $ 2,634,872 Plant Repair, Retrofit, and Equipment Replacement WQ-19002 $ 8,791,959 $ (21,548) $ 8,770,411 "f a q_ _tZ_! ,.k o a _i, WATER FUND Water Main Replacement - Project 28 WS -14001 $ 11,000,000 $ (90,000) $ 10,910,000 Water Regulation Station Improvements WS -07000 $ - $ 645,830 $ 645,830 ATTACHMENT A, EXHIBIT 4: Technology CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGE GENE'ALFUN. General Fund Administrative Services Information Technology Adjustment $ - $ 3,865 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund City Attorney Information Technology Adjustment $ - $ 1,611 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund City Auditor Information Technology Adjustment $ - $ 383 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund City Clerk Information Technology Adjustment $ - $ 576 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund City Council Information Technology Adjustment $ - $ 194 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund City Manager Information Technology Adjustment $ - $ 1,461 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Community Services Information Technology Adjustment $ - $ 13,108 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Fire Information Technology Adjustment $ - $ 15,532 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Human Resources Information Technology Adjustment $ - $ 1,662 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Library Information Technology Adjustment $ - $ 3,892 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Office of Emergency Services Information Technology Adjustment $ - $ 627 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Office of Transportation Information Technology Adjustment $ - $ 880 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Planning and Development Services Information Technology Adjustment $ - $ 8,035 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Police Information Technology Adjustment $ - $ 18,660 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Public Works Information Technology Adjustment $ - $ 8,517 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. GENE' ,LFUN1 SU:TIT,L $ - $ 7•, I. ENTERPRISE FUNIS Airport Enterprise Fund 530 Information Technology Adjustment $ - $ 924 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. Refuse Fund 525 Information Technology Adjustment $ - $ 5,829 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. Attachment A, Exhibit 4 page 1 ATTACHMENT A, EXHIBIT 4: Technology CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGE Fund Department/ Fund Title Revenue Expense Comments Stormwater Management Fund 528 Information Technology Adjustment $ - $ 4,562 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. Utilities Administration Fund 521 Information Technology Adjustment $ - $ 75,425 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. Wastewater Treatment Fund 526 Information Technology Adjustment $ - $ 27,608 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. ENTERPRISE FUNDS SUBTOTAL $ - $ 114,349 INTERNAL SERVICE FUNDS Printing & Mailing Services Fund 683 Information Technology Adjustment $ - $ 712 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. Vehicle Replacement & Maintenance Fund 681 Information Technology Adjustment $ - $ 5,935 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. INTERNAL SERVICE FUNDS SUBTOTAL $ - $ 6,647 Attachment A, Exhibit 4 page 2 ATTACHMENT A, EXHIBIT 5 Table of Organization TABLE OF ORGANI TIO FY 2019 Actuals FY 2020 Actuals FY 2021 Adopted Budgeta FY 2022 Proposed Budget FY 2022 Change FTE FY 2022 Change % General Fund Administrative Services Account Specialist Account Specialist (Freeze) Account Specialist -Lead Accountant Administrative Assistant Administrative Associate II 4.63 4.63 3.13 1.50 3.45 3.45 3.45 3.00 3.00 3.00 1.00 1.00 1.00 1.00 1.00 0.50 Administrative Associate II (Freeze) - - 0.50 Administrative Associate III 1.00 1.00 1.00 Assistant Director Administrative Services 1.65 1.65 1.65 Buyer 1.00 1.00 1.00 Chief Procurement Officer 1.00 1.00 1.00 Contracts Administrator 2.70 2.70 2.30 Contracts Administrator (Freeze) - - 0.40 Director Administrative Services/CFO 0.80 0.80 0.80 Director Office of Management and Budget 1.00 1.00 Director Office of Management and Budget (Freeze) Management Analyst 1.00 2.00 2.00 2.00 -% Manager Budget 2.00 2.00 2.00 2.00 - -% Manager Real Property 1.00 1.00 1.00 1.00 -% Manager Revenue Collections 0.62 0.62 0.62 0.62 -% Manager Treasury, Debt & Investments 0.60 0.60 0.60 0.60 - -% Manager, Finance 1.00 1.00 1.00 1.00 -% Payroll Analyst 2.00 2.00 2.00 2.00 -% Performance Auditor II (Freeze) - - 1.00 - (1.00) (100.0)% Senior Accountant 3.00 3.00 3.00 3.00 -% Senior Buyer 1.00 1.00 1.00 1.00 -% 1.00 4.13 3.45 2.00 1.00 0.50 1.00 1.65 2.00 1.00 1.70 0.80 1.00 1.00 (1.50) (1.00) (0.50) 1.00 31.9% (100.0)% -% (33.3)% -% (0.60) (26.0)% (0.40) (100.0)% 1.00 (1.00) CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 411 ATTACHMENT A, EXHIBIT 5 Table of Organization Senior Management Analyst Storekeeper Storekeeper -Lead Warehouse Supervisor Total Administrative Services FY 2019 Actuals 2.30 1.00 0.20 0.20 38.15 FY 2020 Actuals 2.30 1.00 0.20 0.20 39.15 FY 2021 Adopted Budgeta 2.30 1.00 0.20 0.20 40.15 FY 2022 Proposed Budget 2.30 1.00 0.20 0.20 37.15 FY 2022 Change FTE (3.00) FY 2022 Change % - % - % - % - % (7.5) % City Attorney Assistant City Attorney Chief Assistant City Attorney City Attorney Claims Investigator Deputy City Attorney Legal Fellow Legal Fellow (Freeze) Secretary to City Attorney Senior Management Analyst Total City Attorney 3.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 10.00 3.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 10.00 3.00 1.00 1.00 1.00 1.00 0.50 0.50 1.00 1.00 10.00 1.00 1.00 10.00 - % - % - % 3.00 1.00 1.00 1.00 -% 1.00 - -% 1.00 0.50 100.0% (0.50) (100.0)% -% - % - OA City Auditor City Auditor Performance Auditor I Performance Auditor 11 Senior Performance Auditor Total City Auditor 1.00 1.00 1.00 1.00 4.00 1.00 2.00 1.00 4.00 1.00 2.00 3.00 (1.00) (100.0)% -% -% (2.00) (100.0)% (3.00) (100.0)% City Clerk Administrative Associate II I Assistant City Clerk City Clerk Deputy City Clerk Total City Clerk 2.00 1.00 1.00 1.00 5.00 2.00 1.00 1.00 1.00 5.00 2.00 1.00 1.00 1.00 5.00 2.00 1.00 1.00 1.00 5.00 _OA City Manager Administrative Assistant Administrative Associate III Assistant City Manager Assistant City Manager/Utilities General Manager 1.00 2.00 1.00 0.25 2.00 2.00 1.00 1.00 1.00 412 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET ATTACHMENT A, EXHIBIT 5 Table of Organization TABLE OF ORGANIZATION FY 2021 FY 2022 FY 2019 FY 2020 Adopted Proposed FY 2022 Actuals Actuals Budgeta Budget Change FTE FY 2022 Change % Assistant to the City Manager Assistant to the City Manager (Freeze) Chief Communications Officer Chief Sustainability Officer City Manager Deputy City Manager Executive Assistant to the City Manager Management Analyst Manager Communications Total City Manager 2.00 1.00 1.00 1.00 2.00 1.00 0.75 1.00 12.00 2.00 1.00 1.00 1.00 1.00 0.75 1.00 10.75 1.00 1.00 1.00 1.00 1.00 1.00 1.00 10.00 1.00 1.00 1.00 1.00 1.00 1.00 9.00 (1.00) Community Services Administrative Assistant Administrative Associate III Administrative Associate III (Freeze) Assistant Director Community Services Assistant Director Community Services (Freeze) Building Serviceperson Building Serviceperson-Lead Coordinator Recreation Programs Director Community Services Division Manager Open Space, Parks and Golf Heavy Equipment Operator Inspector, Field Services Junior Museum & Zoo Educator Junior Museum & Zoo Educator (Freeze) Management Analyst Management Assistant Manager Community Services Manager Community Services (Freeze) Manager Community Services Senior Program Manager Human Services Park Maintenance Person Park Maintenance -Lead Park Ranger 1.00 1.00 1.00 1.00 1.00 1.00 1.00 (1.00) 2.00 2.00 1.00 1.00 - -% - - 1.00 - (1.00) (100.0)% 1.25 1.25 1.00 1.00 - -% 0.60 0.60 0.60 0.60 - -% 3.00 4.00 4.00 4.00 - -% 1.00 1.00 1.00 1.00 - -% 1.00 1.00 - - -% 0.07 0.07 0.07 - (0.07) (100.0)% 2.00 2.00 2.00 2.00 - -% 3.60 3.60 3.25 3.25 - -% - - 0.35 ((0.35) (100.0)% 1.00 1.00 1.00 1.00 - -% 1.00 1.00 1.00 1.00 - -% 5.00 5.00 4.00 5.00 1.00 25.0% - - 1.00 - (1.00) (100.0)% 4.00 4.00 4.00 4.00 - -% 1.00 1.00 1.00 1.00 - -% 6.00 6.00 6.00 6.00 - -% 1.00 1.00 1.00 1.00 - -% 5.00 5.00 5.00 5.00 - -% TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 413 ATTACHMENT A, EXHIBIT 5 Table of Organization 1 Parks/Golf Crew -Lead Producer Arts/Science Program Producer Arts/Science Program (Freeze) Program Assistant I Program Assistant I (Freeze) Program Assistant II Project Manager Senior Management Analyst Sprinkler System Representative Superintendent Community Services Superintendent Recreation Superintendent Recreation (Freeze) Theater Specialist WGW Heavy Equipment Operator Total Community Services FY 2019 Actuals 2.00 11.00 FY 2020 Actuals 2.00 11.00 8.00 8.00 4.00 0.10 1.00 4.00 2.00 1.00 2.00 75.62 3.00 0.10 1.00 4.00 2.00 1.00 FY 2021 Adopted Budgeta 2.00 10.25 1.75 3.00 4.00 4.00 0.10 1.00 4.00 2.00 1.00 2.00 2.00 75.62 75.37 FY 2022 Proposed Budget 2.00 11.00 3.00 4.00 0.10 1.00 4.00 2.00 2.00 0.07 67.02 (1.00) (100.0)% (8.35) FY 2022 Change FTE FY 2022 Change % -% 0.75 (12.0)% (1.75) (100.0)% -% 0.07 -% (11.1)% Fire 40 -Hour Training Battalion Chief 1.00 40 -Hour Training Captain 1.00 1.00 - 1.00 1.00 100.0% 40 -Hour Training Captain (Freeze) - 1.00 - (1.00) (100.0)% Administrative Assistant 1.00 1.00 1.00 1.00 - -% Administrative Associate 11 2.20 2.20 1.20 2.20 1.00 83.3% Administrative Associate II (Freeze) - - 1.00 - (1.00) (100.0)% Battalion Chief 3.00 3.00 3.00 3.00 - -% Business Analyst 0.80 0.80 0.80 0.80 - -% Deputy Chief/Fire Marshal 0.05 0.05 0.05 0.05 - -% Deputy Director Technical Services Division 0.20 0.20 - - - -% Deputy Director Technical Services Division (Freeze) Deputy Fire Chief 2.00 2.00 2.00 1.00 (1.00) (50.0)% Emergency Medical Service Director 1.00 1.00 1.00 1.00 - -% Emergency Medical Services Data Specialist 1.00 1.00 1.00 1.00 -% Fire Apparatus Operator 26.00 26.00 26.00 26.00 -% Fire Captain 21.00 21.00 21.00 20.00 (1.00) (4.8)% Fire Chief 1.00 1.00 1.00 1.00 -% Fire Fighter 34.00 34.00 29.00 29.00 - -% 1.00 1.00 0.20 1.00 (0.20) -% (100.0)% 414 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET ATTACHMENT A, EXHIBIT 5 Table of Organization Fire Fighter (Freeze) Fire Inspector Fire Inspector (Freeze) Geographic Information System Specialist Hazardous Materials Inspector Senior Management Analyst Total Fire FY 2019 Actuals 0.80 0.50 0.30 1.00 97.85 TABLE OF ORGANIZATION FY 2020 Actuals 0.80 0.50 0.30 1.00 97.85 FY 2021 Adopted Budgeta 5.00 0.40 0.40 0.50 0.30 1.00 97.85 FY 2022 Proposed Budget 0.40 0.50 0.30 1.00 90.25 FY 2022 Change FTE (5.00) FY 2022 Change % (100.0)% -% (0.40) (100.0)% (7.60) -% Human Resources Assistant Director Human Resources Director Human Resources/CPO Human Resources Representative Human Resources Representative (Freeze) Human Resources Technician Human Resources Technician (Freeze) Manager Employee Benefits Manager Employee Relations Senior Human Resources Administrator Senior Management Analyst Total Human Resources 1.00 1.00 3.00 4.00 1.00 1.00 3.00 2.00 16.00 1.00 1.00 3.00 4.00 1.00 1.00 3.00 2.00 16.00 1.00 1.00 2.50 0.50 3.50 0.50 1.00 1.00 3.00 2.00 16.00 1.00 1.00 2.00 3.00 1.00 1.00 3.00 2.00 14.00 -% (0.50) (20.0)% (0.50) (100.0)% (0.50) (14.0)% (0.50) (100.0)% - -% -% (2.00) - % - % (12.5) % Library Administrative Associate III Administrative Associate III (Freeze) Assistant Director Library Services Assistant Director Library Services (Freeze) Business Analyst Coordinator Library Programs 1.00 1.00 1.00 1.00 Director Libraries 1.00 Division Head Library Services 1.00 Librarian 7.00 Library Associate 7.00 Library Associate (Freeze) Library Specialist 11.50 Library Specialist (Freeze) Management Analyst 1.00 1.00 1.00 1.00 - - - 1.00 1.00 1.00 1.00 - -% 1.00 1.00 1.00 - -% 1.00 1.00 1.00 - -% 1.00 1.00 1.00 - -% 6.00 6.00 6.00 - -% 7.00 6.00 6.00 - -% 1.00 (1.00) (100.0)% 11.50 10.50 10.50 - -% 1.00 (1.00) (100.0)% 1.00 1.00 1.00 -% -% (1.00) (100.0)% -% (1.00) (100.0)% TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 415 ATTACHMENT A, EXHIBIT 5 Table of Organization Manager Library Services Senior Librarian Senior Librarian (Freeze) Supervising Librarian Total Library FY 2019 Actuals 4.00 9.00 2.00 47.50 FY 2020 Actuals 3.00 8.00 4.00 46.50 FY 2021 FY 2022 Adopted Proposed Budgeta Budget 3.00 6.00 2.00 4.00 46.50 3.00 6.00 4.00 40.50 FY 2022 Change FTE FY 2022 Change % -% -% (2.00) (100.0)% (6.00) - % Office of Emergency Services Director Office of Emergency Services Office of Emergency Services Coordinator Program Assistant 11 Program Assistant 11 (Freeze) Total Office of Emergency Services 1.00 1.00 1.00 3.00 1.00 1.00 1.00 3.00 1.00 1.00 1.00 3.00 1.00 1.00 2.00 (1.00) - % -% (1.00) (100.0)% (33.3) % Office of Transportationb Administrative Assistant Administrative Associate!!! Associate Engineer Associate Planner Chief Transportation Official Coordinator Transportation Systems Management Management Analyst 0.02 Parking Operations -Lead Project Engineer Senior Engineer Senior Planner Traffic Engineering -Lead Transportation Planning Manager Total Office of Transportation 0.30 0.65 0.24 0.55 0.74 0.28 0.65 0.36 4.39 0.50 0.50 0.60 0.10 20.0% - % 0.30 0.30 0.35 0.05 16.7% 0.30 0.45 0.40 (0.05) (11.1)% 0.70 0.70 0.70 - -% 1.25 1.25 0.65 (0.60) (48.0)% 0.50 0.10 - 0.50 0.45 0.20 0.50 0.35 1.15 6.20 0.50 0.50 - -% - 0.05 0.05 -% 0.45 0.25 (0.20) (44.4)% 0.20 0.20 -% 0.50 0.15 (0.35) (70.0)% 0.35 0.35 - -% 1.15 1.00 (0.15) (13.0)% 6.35 5.20 (1.15) (18.1)% Planning and Development Services` Administrative Assistant Administrative Associate' Administrative Associate II Administrative Associate III Assistant Chief Building Official Assistant Director PCE 2.00 1.00 2.80 3.29 1.00 1.00 1.00 1.00 2.80 4.00 1.00 1.00 1.00 1.00 2.80 4.00 1.00 1.00 1.00 1.00 2.80 3.00 1.00 1.00 - % - % -% (1.00) (25.0)% 416 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET ATTACHMENT A, EXHIBIT 5 Table of Organization i FY 2019 Actuals TABLE OF ORGANIZATION FY 2020 Actuals FY 2021 Adopted Budgeta FY 2022 Proposed Budget Associate Engineer 0.02 0.22 0.20 I Associate Planner 3.03 3.15 3.00 3.25 Building Inspector Specialist 4.00 4.00 6.00 6.00 Building/Planning Technician 3.00 3.00 2.00 2.00 Building/Planning Technician (Freeze) - - 1.00 - (1.00) (100.0)% Business Analyst 1.00 - - -% Chief Building Official 1.00 1.00 1.00 1.00 - -% Chief Planning Official 1.00 1.00 1.00 1.00 - -% Chief Transportation Official 0.09 - - - - -% Code Enforcement Officer 2.00 2.00 - - - -% Code Enforcement Officer (Freeze) - - 2.00 - (2.00) (100.0)% Code Enforcement -Lead 1.00 1.00 1.00 1.00 - -% Deputy Chief/Fire Marshal 0.80 0.80 0.80 0.80 - -% Development Project Coordinator!! 2.00 2.00 2.00 2.00 - -% Development Project Coordinator III 3.00 3.00 3.00 3.00 - -% Development Services Director 1.00 - - -% Director Planning/Community Environment 1.00 1.00 1.00 1.00 - -% Engineer 0.64 0.64 0.52 0.52 - -% Engineering Technician 111 1.78 1.78 1.50 1.50 - -% Fire Inspector 3.20 3.20 1.60 1.60 - -% Fire Inspector (Freeze) 1.60 (1.60) (100.0)% Hazardous Materials Inspector 1.60 1.60 1.60 1.60 - -% Industrial Waste Inspector 0.01 0.01 - - - -% Industrial Waste Investigator 0.35 0.35 0.35 0.35 - -% Inspector, Field Services 0.68 0.68 0.68 0.68 - -% Landscape Architect Park Planner 0.50 0.50 0.50 0.50 - -% Management Analyst 1.79 0.01 - - -% Manager Development Center 1.00 - - - -% Manager Environmental Control Program 0.10 0.10 - - -% Manager Planning 3.00 5.00 4.00 4.00 - -% Manager Urban Forestry 0.04 0.04 - - -% Planner 4.00 4.00 4.00 4.00 - -% Planning Division Manager 1.00 - - - -% Principal Management Analyst 1.00 - - -% Principal Planner 1.00 2.00 1.00 1.00 - -% FY 2022 Change FTE FY 2022 Change % (0.20) 0.25 (100.0)% 8.3% -% -% TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 417 ATTACHMENT A, EXHIBIT 5 Table of Organization FY 2021 FY 2022 FY 2019 FY 2020 Adopted Proposed FY 2022 Actuals Actuals Budgeta Budget Change FTE FY 2022 Change % Principal Planner (Freeze) Program Assistant Program Assistant I (Freeze) Project Engineer Senior Business Analyst Senior Engineer Senior Industrial Waste Investigator Senior Management Analyst Senior Planner Senior Planner (Freeze) Supervisor Inspection and Surveying Traffic Engineering -Lead Transportation Planning Manager Total Planning and Development Services [Police Administrative Assistant Administrative Associate II Administrative Associate II (Freeze) Animal Control Officer Animal Control Officer (Freeze) Animal Control Officer -Lead Animal Services Specialist II Assistant Police Chief Business Analyst Code Enforcement Officer Communications Manager Communications Manager (Freeze) Communications Technician Communications Technician (Freeze) Community Service Officer Community Service Officer (Freeze) Court Liaison Officer Crime Analyst Deputy Director Technical Services Division 1.00 1.00 1.00 0.33 0.13 0.10 (1.00) (100.0)% -% (1.00) (100.0)% (0.10) (100.0)% - 1.00 1.00 1.00 - -% 0.46 0.46 0.40 0.40 - -% 0.01 0.01 - - -% 1.88 2.00 2.00 2.00 - -% 3.60 3.60 2.60 3.65 1.05 40.0% - 1.00 - (1.00) (100.0)% 0.27 0.27 0.25 0.25 - -% 0.10 0.10 0.05 (0.05) (50.0)% 0.05 - 0.05 0.05 -% 62.32 62.45 61.60 54.00 (7.60) (12.3)% 1.00 3.00 3.00 1.00 2.00 1.00 1.20 1.00 1.00 1.00 7.50 1.00 1.00 0.80 1.00 3.00 3.00 1.00 1.00 1.20 1.00 1.00 1.00 7.50 1.00 1.00 0.80 1.00 1.00 - -% 2.00 2.00 - -% 1.00 - (1.00) (100.0)% 2.00 2.00 - -% 1.00 - (1.00) (100.0)% 1.00 1.00 -% - -% 1.00 1.20 1.00 1.00 1.00 5.63 1.87 1.00 1.00 1.00 1.20 1.00 - %o - %o - % - % (1.00) (100.0)% -% (1.00) (100.0)% 5.63 - -% (1.87) (100.0)% 1.00 - -% 1.00 - -% -% 418 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET ATTACHMENT A, EXHIBIT 5 Deputy Director Technical Services Division (Freeze) Table of Organization FY 2019 Actuals TABLE OF ORGANIZATION FY 2020 Actuals FY 2021 Adopted Budgeta 0.80 FY 2022 Proposed Budget FY 2022 Change FTE (0.80) FY 2022 Change % (100.0)% Geographic Information System Specialist 0.50 0.50 0.50 0.50 - -% Police Agent 19.00 19.00 19.00 19.00 - -% Police Captain 2.00 2.00 2.00 2.00 - -% Police Chief 1.00 1.00 1.00 1.00 - -% Police Lieutenant 5.00 5.00 4.00 4.00 -% Police Lieutenant (Freeze) 1.00 - (1.00) (100.0)% Police Officer 50.00 50.00 39.00 39.00 - -% Police Officer (Freeze) 11.00 - (11.00) (100.0)% Police Records Specialist II 6.00 6.00 6.00 6.00 - -% Police Records Specialist -Lead 1.00 1.00 1.00 1.00 - -% Police Sergeant 14.00 14.00 14.00 14.00 - -% Program Assistant II 1.00 1.00 1.00 1.00 - -% Property Evidence Technician 2.00 2.00 2.00 2.00 - -% Public Safety Communications Manager 1.00 1.00 - - -% Public Safety Communications Manager - 1.00 - (1.00) (100.0)% (Freeze) Public Safety Dispatcher 16.00 16.00 12.00 12.00 - -% Public Safety Dispatcher (Freeze) - 4.00 - (4.00) (100.0)% Public Safety Dispatcher -Lead 4.00 4.00 4.00 4.00 - -% Public Safety Program Manager 2.00 2.00 2.00 1.00 (1.00) (50.0)% Senior Management Analyst 1.00 1.00 1.00 1.00 - -% Superintendent Animal Services 1.00 - - - - -% Veterinarian 1.00 Veterinarian Technician 2.00 Total Police 155.00 149.00 149.00 124.33 (24.67) -% -% (16.6)% Public Works Administrative Assistant Administrative Associate I Administrative Associate II Administrative Associate III Assistant Director Public Works Associate Engineer Building Serviceperson-Lead 1.00 0.60 2.65 0.01 0.87 0.30 1.00 1.00 0.10 2.65 0.01 0.73 1.00 1.00 0.10 2.65 0.01 0.73 1.00 0.50 (0.50) (50.0)% (0.10) (100.0)% 2.65 - -% (0.01) (100.0)% 0.73 1.00 - % - % -% TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 419 ATTACHMENT A, EXHIBIT 5 Table of Organization i Cement Finisher Cement Finisher -Lead Coordinator Public Works Projects Director Public Works/City Engineer Electrician Engineer Engineering Technician 111 Equipment Operator Facilities Carpenter Facilities Maintenance -Lead Facilities Painter Facilities Technician Heavy Equipment Operator Heavy Equipment Operator -Lead Inspector, Field Services Landscape Architect Park Planner Management Analyst Manager Facilities Manager Maintenance Operations Manager Urban Forestry Manager Watershed Protection Project Engineer Project Manager Project Manager (Freeze) Senior Engineer Senior Management Analyst Senior Project Manager Supervisor Inspection and Surveying Surveyor, Public Works Traffic Controller Maintainer I Traffic Controller Maintainer II Tree Maintenance Person Tree Trim/Line Clear Tree Trim/Line Clear -Lead WGW Heavy Equipment Operator FY 2019 Actuals FY 2020 Actuals FY 2021 Adopted Budgeta FY 2022 Proposed Budget 2.00 2.00 2.00 I 2.00 0.26 0.26 0.26 0.26 1.50 1.50 1.50 1.50 - 1.00 1.00 1.00 1.00 - 0.80 0.80 0.80 0.80 - 0.66 0.36 0.48 0.48 - 1.47 1.47 1.75 1.75 - 2.46 2.46 2.46 2.46 - 1.00 1.00 1.00 1.00 - 1.85 1.85 1.85 1.85 - 1.75 1.75 1.75 1.75 - 4.05 4.05 4.05 4.05 - 2.33 2.33 2.33 2.10 (0.23) (9.9)% 0.85 0.85 0.85 0.85 - -% 0.11 0.11 0.11 0.11 - -% 0.60 0.60 0.60 0.60 -% 0.70 0.70 1.45 1.45 - -% 0.90 0.90 0.90 0.90 - -% 1.20 1.20 1.20 1.20 - -% 0.96 0.96 1.00 1.00 - -% 0.05 0.05 0.05 0.05 - -% 0.50 - - - -% 2.65 2.65 2.00 2.00 - -% - 0.65 - (0.65) (100.0)% 0.79 0.59 0.60 0.60 - -% 1.11 1.11 1.11 1.11 - -% 0.10 - - - -% 0.10 0.10 0.10 0.10 - -% 0.33 0.33 0.33 0.33 - -% 1.94 1.94 1.94 1.94 -% 2.00 2.00 2.00 1.00 (1.00) (50.0)% 1.00 1.00 1.00 1.00 - -% 7.00 7.00 7.00 7.00 - -% 1.00 1.00 1.00 1.00 - -% - - - 0.23 0.23 -% FY 2022 Change FTE FY 2022 Change % 420 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET ATTACHMENT A, EXHIBIT 5 Table of Organization TABLE OF ORGANIZATION FY 2021 FY 2022 FY 2019 FY 2020 Adopted Proposed FY 2022 FY 2022 Actuals Actuals Budgeta Budget Change FTE Change % Total Public Works Total General Fund Enterprise Fund 51.45 49.41 50.61 48.35 (2.26) (4.5) % 582.28 574.93 574.43 506.80 (67.63) (11.8)% Public Works Account Specialist Accountant Administrative Associate I Administrative Associate 11 Administrative Associate I I I Assistant Director Public Works Assistant Manager WQCP Associate Engineer Chemist Deputy Chief/Fire Marshal Electrician Electrician -Lead Engineer Engineering Technician I II Environmental Specialist Equipment Operator Facilities Maintenance Lead Facilities Technician Hazardous Materials Inspector Heavy Equipment Operator Heavy Equipment Operator -Lead Industrial Waste Inspector Industrial Waste Investigator Laboratory Technician WQC Landfill Technician Management Analyst Manager Airport Manager Environmental Control Program Manager Laboratory Services Manager Maintenance Operations 0.30 0.30 0.30 - 0.40 0.40 0.40 0.70 0.10 0.10 0.10 2.15 2.15 2.15 2.15 0.10 0.10 0.10 0.20 1.30 1.30 1.30 1.30 2.00 2.00 2.00 2.00 2.99 2.99 3.00 3.00 3.00 3.00 3.00 2.00 0.07 0.07 0.07 0.07 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 0.90 0.90 0.90 0.90 0.25 0.25 0.25 0.25 2.00 2.00 2.00 2.00 0.54 0.54 0.54 0.54 1.00 1.00 1.00 1.00 1.50 1.50 1.50 1.50 0.04 0.04 0.04 0.04 0.90 0.90 0.90 0.90 1.15 1.15 1.15 1.15 2.99 2.99 3.00 3.00 1.15 1.15 1.15 1.15 3.00 3.00 3.00 3.00 1.00 1.00 1.00 1.00 2.30 2.30 2.30 2.30 1.00 1.00 1.00 1.00 4.90 4.90 5.00 5.00 1.00 1.00 1.00 1.00 1.96 1.96 1.96 1.96 (100.0) % 75.0% (100.0)% -% TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 421 ATTACHMENT A, EXHIBIT 5 Table of Organization 1 Manager Solid Waste Manager Water Quality Control Plant Manager Watershed Protection Plant Mechanic Program Assistant Program Assistant II Project Engineer Project Manager Senior Accountant Senior Buyer Senior Chemist Senior Engineer Senior Industrial Waste Investigator Senior Management Analyst Senior Mechanic Senior Operator WQC Senior Technologist Storekeeper Street Maintenance Assistant Street Sweeper Operator Supervisor WQCP Operations Surveyor, Public Works Technologist Traffic Controller Maintainer I WQC Plant Operator II Zero Waste Coordinator Total Public Works FY 2019 Actuals FY 2020 Actuals FY 2021 FY 2022 Adopted Proposed Budgeta Budget � 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.95 0.95 0.95 0.95 - 7.00 7.00 7.00 7.00 - 1.00 1.00 1.00 1.00 - 2.00 2.00 2.00 2.00 - 1.83 1.83 1.83 1.83 - 1.35 1.35 1.35 1.35 - 0.30 0.30 0.30 0.30 - 1.00 1.00 1.00 1.00 - 1.00 1.00 1.00 2.00 1.00 100.0% 3.76 3.76 3.76 3.76 - 0.99 0.99 1.00 1.00 - 0.21 0.21 0.21 0.21 - 1.00 1.00 1.00 1.00 - 6.00 6.00 6.00 6.00 - 1.00 1.00 1.00 1.00 - 1.00 1.00 1.00 1.00 - 1.00 1.00 1.00 1.00 - 1.63 1.63 1.63 1.63 - 3.00 3.00 3.00 3.00 - 0.12 0.12 0.12 0.12 - 1.00 1.00 1.00 1.00 - 0.06 0.06 0.06 0.06 - 16.00 16.00 16.00 16.00 - 1.00 1.00 1.00 1.00 101.19 101.19 101.32 101.32 FY 2022 Change FTE FY 2022 Change % -% Utilities Account Specialist Accountant Administrative Assistant Administrative Associate II Assistant City Manager/Utilities General Manager Assistant Director Administrative Services 1.70 0.60 1.00 7.00 0.75 1.70 0.60 1.00 6.00 0.25 0.25 1.70 0.60 1.00 6.00 1.00 1.30 1.00 6.00 (0.70) (41.2)% 0.70 116.7% -% 0.25 0.25 - -% 422 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET ATTACHMENT A, EXHIBIT 5 Table of Organization FY 2019 Actuals Assistant Director Utilities Customer Support 1.00 Services Assistant Director Utilities Engineering Assistant Director Utilities Engineering (Freeze) - Assistant Director Utilities Operations 1.00 Assistant Director Utilities/Resource 1.00 Management TABLE OF ORGANIZATION FY 2020 Actuals 1.00 1.00 1.00 1.00 1.00 FY 2021 Adopted Budgeta 1.00 FY 2022 Proposed Budget 1.00 FY 2022 Change FTE FY 2022 Change % -% - 1.00 - -% 1.00 1.00 1.00 100.0% 1.00 (1.00) (100.0)% 1.00 1.00 - -% Business Analyst 6.00 6.00 5.00 6.00 1.00 20.0% Business Analyst (Freeze) - - 1.00 - (1.00) (100.0)% Cathodic Protection Technician Assistant 1.00 1.00 1.00 1.00 -% Cathodic Technician 1.00 1.00 1.00 1.00 -% Cement Finisher 2.00 2.00 2.00 2.00 - -% Contracts Administrator 0.70 0.70 0.70 0.70 - -% Coordinator Utilities Projects 6.00 6.00 6.00 6.00 - -% Customer Service Representative 7.00 7.00 7.00 7.00 - -% Customer Service Specialist 2.00 2.00 2.00 2.00 - -% Customer Service Specialist -Lead 2.00 2.00 2.00 2.00 - -% Deputy Chief/Fire Marshal 0.08 0.08 0.08 0.08 - -% Deputy City Attorney 1.00 1.00 1.00 1.00 - -% Director Administrative Services/CFO 0.20 0.20 0.20 0.20 - -% Electric Heavy Equipment Operator - - 2.00 2.00 - -% Electric Project Engineer 2.00 4.00 4.00 4.00 - -% Electric Underground Inspector 2.00 2.00 2.00 2.00 - -% Electric Underground Inspector -Lead 1.00 1.00 1.00 1.00 - -% Electrical Equipment Technician 1.00 1.00 1.00 1.00 - -% Electrician Assistant 1 3.00 3.00 3.00 3.00 - -% Engineer 4.00 4.00 4.00 4.00 - -% Engineering Manager - Electric 1.00 1.00 1.00 1.00 - -% Engineering Manager - WGW 1.00 1.00 1.00 1.00 - -% Engineering Technician 111 3.00 3.00 3.00 3.00 - -% Gas and Water Meter Measurement and 4.00 4.00 4.00 4.00 - -% Control Technician Gas and Water Meter Measurement and 1.00 1.00 1.00 1.00 - -% Control Technician - Lead Hazardous Materials Inspector 0.06 0.06 0.06 0.06 -% Heavy Equipment Operator 6.70 6.70 - - - -% TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 423 ATTACHMENT A, EXHIBIT 5 Table of Organization Heavy Equipment Operator - Install/Repair Human Resources Representative Industrial Waste Investigator Inspector, WGW Utilities Field Services Lineperson/Cable Specialist Lineperson/Cable Specialist -Lead Maintenance Mechanic -Welding Manager Communications Manager Customer Service Manager Electric Operations Manager Treasury, Debt & Investments Manager Utilities Compliance Manager Utilities Credit & Collection Manager Utilities Operations WGW Manager Utilities Program Services Manager Utilities Strategic Business Manager Utilities Telecommunications Meter Reader Meter Reader -Lead Metering Technician Metering Technician -Lead Offset Equipment Operator Overhead Underground Troubleman Power Engineer Principal Business Analyst Program Assistant I Program Assistant II Project Engineer Project Manager Resource Planner Restoration Lead SCADA Technologist Senior Accountant Senior Business Analyst Senior Electrical Engineer FY 2019 Actuals FY 2020 Actuals FY 2021 Adopted Budgeta 4.00 4.00 4.00 0.50 0.50 0.50 5.00 5.00 5.00 11.00 11.00 10.00 4.00 4.00 4.00 2.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.40 0.40 0.40 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 6.00 6.00 6.00 1.00 1.00 1.00 3.00 3.00 3.00 1.00 1.00 1.00 0.48 0.48 0.48 2.00 2.00 2.00 3.00 1.00 1.00 1.00 1.00 1.00 1.50 1.50 1.50 1.00 1.00 5.00 5.00 5.00 0.75 0.75 0.75 6.00 5.00 5.00 1.00 1.00 1.00 2.00 2.00 2.00 0.70 0.70 0.70 3.00 3.00 3.00 4.00 4.00 4.00 FY 2022 Proposed Budget 4.00 1.00 0.50 5.00 10.00 4.00 2.00 1.00 1.00 1.00 0.40 1.00 1.00 1.00 1.00 1.00 1.00 6.00 1.00 3.00 1.00 0.48 2.00 1.00 1.00 1.50 1.00 5.00 0.75 5.00 1.00 2.00 0.70 3.00 5.00 FY 2022 Change FTE 1.00 1.00 FY 2022 Change % 424 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET ATTACHMENT A, EXHIBIT 5 Table of Organization Senior Engineer Senior Management Analyst Senior Mechanic Senior Performance Auditor Senior Resource Planner Senior Utilities Field Service Representative Senior Water Systems Operator Storekeeper Storekeeper -Lead Street Light, Traffic Signal & Fiber Technician Street Light, Traffic Signal & Fiber -Lead Substation Electrician Substation Electrician (Freeze) Substation Electrician -Lead Supervising Electric Project Engineer Sustainability Programs Administrator Tree Maintenance Person Utilities Chief Operating Officer Utilities Chief Operating Officer (Freeze) Utilities Compliance Technician Utilities Compliance Technician -Lead Utilities Credit/Collection Specialist Utilities Director Utilities Engineer Estimator Utilities Field Services Representative Utilities Install Repair -Lead -Welding Certified Utilities Install Repair -Welding Certified Utilities Install/Repair Utilities Install/Repair Assistant Utilities Install/Repair-Lead Utilities Key Account Representative Utilities Locator Utilities Marketing Program Administrator Utilities Safety Officer Utilities Supervisor FY 2019 Actuals 5.00 0.70 1.00 1.00 6.00 1.00 2.00 1.00 0.80 5.00 2.00 6.00 TABLE OF ORGANIZATION FY 2020 Actuals 5.00 0.70 1.00 1.00 6.50 1.00 2.00 1.00 0.80 5.00 2.00 6.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 1.00 1.00 2.00 2.00 1.00 5.00 5.00 5.00 5.00 2.00 2.00 3.00 3.00 10.00 10.00 1.00 1.00 5.00 5.00 3.00 3.00 3.00 3.00 3.00 4.00 1.00 1.00 12.00 12.00 FY 2021 Adopted Budgeta FY 2022 Proposed Budget 5.00 ' 5.00 0.70 0.70 1.00 1.00 1.00 FY 2022 Change FTE FY 2022 Change % - % - % - % (1.00) (100.0)% 6.50 6.50 - -% 1.00 1.00 - -% 2.00 2.00 - -% 1.00 1.00 - -% 0.80 0.80 - -% 5.00 5.00 - -% 2.00 2.00 - -% 5.00 6.00 1.00 20.0% 1.00 - (1.00) (100.0)% 2.00 2.00 - -% 1.00 (1.00) (100.0)% - 4.00 4.00 -% 1.00 1.00 - -% - 1.00 1.00 100.0% 1.00 (1.00) (100.0)% 3.00 3.00 - -% 1.00 1.00 - -% 2.00 2.00 - -% 1.00 1.00 - -% 5.00 5.00 - -% 5.00 5.00 - -% 2.00 2.00 - -% 3.00 3.00 - -% 10.00 10.00 - -% 1.00 1.00 - -% 5.00 5.00 - -% 3.00 3.00 - -% 3.00 3.00 - -% 4.00 - (4.00) (100.0)% 1.00 1.00 - -% 11.00 12.00 1.00 100.0% TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 425 ATTACHMENT A, EXHIBIT 5 Table of Organization i FY 2021 FY 2022 FY 2019 FY 2020 Adopted Proposed FY 2022 Actuals Actuals Budgeta Budget Change FTE FY 2022 Change % Utilities Supervisor (Freeze) Utilities System Operator Utility Engineering Estimator - Lead Warehouse Supervisor Water System Operator II WGW Heavy Equipment Operator Total Utilities Total Enterprise Fund Other Funds 5.00 1.00 0.80 4.00 256.67 257.42 357.86 358.61 5.00 1.00 0.80 4.00 1.00 5.00 1.00 0.80 4.00 4.70 257.42 358.74 5.00 1.00 0.80 4.00 4.70 257.42 358.74 (1.00) (0.00) (0.00) (100.0)% _OA Capital Project Fund Administrative Assistant Administrative Associate I Administrative Associate III Assistant Director Public Works Associate Engineer Associate Engineer (Freeze) Associate Planner Building Serviceperson 0.15 0.15 0.80 0.80 0.80 1.09 0.89 0.89 0.80 0.58 0.72 0.72 0.72 0.65 0.50 333.3% (0.80) (100.0)% (0.09) (10.1)% -% 3.04 2.49 1.50 1.65 0.15 10.0% - 1.00 (1.00) (100.0)% 0.31 0.30 0.30 0.35 0.05 16.7% 0.75 0.75 1.00 1.00 - -% Building Serviceperson-Lead 1.40 1.40 1.40 Cement Finisher -Lead 0.74 0.74 0.74 Chief Transportation Official 0.36 0.30 0.30 Contracts Administrator 0.60 0.60 0.60 Coordinator Public Works Projects 1.30 1.30 1.30 Coordinator Transportation Systems 0.76 0.75 0.75 Management Engineer 2.80 3.10 2.10 2.10 - -% Engineer (Freeze) - 1.00 (1.00) (100.0)% Engineering Technician 111 0.50 0.50 0.50 0.50 -% Facilities Technician 1.50 1.50 1.50 1.50 - -% Inspector, Field Services 1.21 1.21 1.21 1.21 - -% Landscape Architect Park Planner 0.90 0.90 0.90 0.90 - -% Management Analyst 0.82 0.94 0.95 0.95 - -% Manager Facilities 0.10 0.10 0.10 0.10 - -% Manager Maintenance Operations 0.65 0.65 0.65 0.65 - -% 1.40 - -% 0.74 - -% 0.30 - -% 0.60 - -% 1.30 - -% 1.35 0.60 80.0% 426 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET Table of Organization i Parking Operations -Lead Project Engineer Project Manager Project Manager (Freeze) Senior Engineer Senior Management Analyst Senior Planner Senior Project Manager Supervisor Inspection and Surveying Surveyor, Public Works Traffic Engineering -Lead Transportation Planning Manager Total Capital Project Fund FY 2019 Actuals 0.35 6.84 1.15 1.99 0.72 0.72 0.90 0.63 0.55 0.35 0.35 34.76 FY 2020 Actuals 0.40 7.59 1.15 2.99 0.60 0.50 1.00 0.63 0.55 0.55 0.35 36.40 ATTACHMENT A, EXHIBIT 5 TABLE OF ORGANIZATION FY 2021 Adopted Budgeta 0.40 7.62 0.80 0.35 4.04 0.60 0.50 0.65 0.55 0.55 0.35 36.77 0.65 0.55 0.60 0.45 35.48 FY 2022 Proposed Budget 0.30 7.92 0.80 FY 2022 Change FTE (0.10) 0.30 FY 2022 Change % (0.35) (100.0)% 4.04 - -% 0.60 - -% 0.80 0.30 60.0% 0.05 0.10 (1.29) - % Printing and Mailing Services Manager Revenue Collections Offset Equipment Operator Total Printing and Mailing Services 0.10 1.52 1.62 0.10 1.52 1.62 0.10 1.52 1.62 0.10 1.52 1.62 - % Special Revenue Funds Account Specialist Account Specialist (Freeze) Account Specialist -Lead Administrative Assistant Administrative Associate II Administrative Associate III Associate Planner Community Service Officer Community Service Officer (Freeze) Coordinator Public Works Projects Electrician Facilities Maintenance -Lead Facilities Painter Facilities Technician Management Analyst Manager Community Services Senior Program 1.87 1.87 1.37 0.50 0.55 0.55 0.55 0.35 0.35 0.20 0.20 0.20 0.21 - 0.42 0.25 0.25 0.50 0.50 0.37 0.13 1.37 0.55 0.25 (0.10) (28.6)% 0.20 - (0.25) (100.0)% 0.37 - -% (0.13) (100.0)% -% (0.50) (100.0)% -% - % -% 0.20 0.20 0.20 0.20 -% 0.20 0.20 0.20 0.20 - -% 0.15 0.15 0.15 0.15 - -% 0.25 0.25 0.25 0.25 - -% 0.45 0.45 0.45 0.45 - -% 0.17 0.35 0.35 0.35 - -% 1.00 1.00 1.00 1.00 - -% TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 427 ATTACHMENT A, EXHIBIT 5 Table of Organization Manager Maintenance Operations Manager Revenue Collections Parking Operations -Lead Senior Planner Street Maintenance Assistant Street Sweeper Operator Transportation Planning Manager Total Special Revenue Funds FY 2019 Actuals 0.19 0.28 0.55 0.40 2.00 0.37 0.24 10.20 FY 2020 Actuals 0.19 0.28 0.60 0.40 2.00 0.37 0.50 10.66 FY 2021 Adopted Budgeta 0.19 0.28 0.60 0.40 2.00 0.37 0.50 10.66 FY 2022 Proposed Budget 0.19 0.28 0.65 0.40 2.00 0.37 0.50 9.73 FY 2022 Change FTE 0.05 (0.93) FY 2022 Change % - % - % (8.7) % Technology Fund Administrative Assistant Assistant Director Administrative Services Business Analyst Desktop Technician Director Information Technology/CIO Director Information Technology/CIO (Freeze) Manager Information Technology 3.00 Manager Information Technology Security 1.00 Principal Business Analyst 1.00 Senior Business Analyst 2.00 Senior Management Analyst 1.00 Senior Technologist Senior Technologist (Freeze) Technologist Technologist (Freeze) Total Technology Fund 1.00 0.10 1.00 6.00 1.00 18.00 1.00 36.10 1.00 0.10 1.00 6.00 1.00 1.00 0.10 1.00 6.00 1.00 0.10 1.00 6.00 - 1.00 1.00 100.0% 1.00 (1.00) (100.0)% 3.00 3.00 3.00 -% 1.00 1.00 - (1.00) (100.0)% 1.00 1.00 (1.00) (100.0)% 2.00 2.00 2.00 -% 1.00 1.00 1.00 - -% 18.00 16.00 14.00 (2.00) (12.5) % 2.00 (2.00) (100.0)% 1.00 36.10 1.00 36.10 29.10 (1.00) (100.0)% (7.00) (19.4)% Vehicle Replacement and Maintenance Fund Administrative Associate III Assistant Director Public Works Assistant Fleet Manager Equipment Maintenance Service Person Fleet Services Coordinator Management Analyst Management Assistant Manager Fleet 1.00 0.25 1.00 2.00 2.00 0.20 1.00 0.25 1.00 2.00 1.00 0.20 1.00 1.00 0.25 1.00 2.00 1.00 0.20 1.00 1.00 0.25 1.00 1.00 1.00 0.20 1.00 1.00 - % - % -% (1.00) (50.0)% 428 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET ATTACHMENT A, EXHIBIT 5 Table of Organization ■ Motor Equipment Mechanic II Motor Equipment Mechanic II (Freeze) Motor Equipment Mechanic -Lead Project Manager Senior Management Analyst Total Vehicle Replacement and Maintenance Fund FY 2019 Actuals 6.00 2.00 1.00 0.08 16.53 TABLE OF ORGANIZATION FY 2020 Actuals 6.00 2.00 1.00 0.08 15.53 FY 2021 Adopted Budgeta 5.00 1.00 2.00 1.00 0.08 15.53 FY 2022 Proposed Budget 5.00 FY 2022 Change FTE FY 2022 Change % -% (1.00) (100.0)% 2.00 - -% 1.00 -% 0.08 - -% (12.9)% 13.53 (2.00) Workers' Compensation Program Fund Senior Human Resources Administrator Total Workers' Compensation Program Fund Total Other Funds Total Citywide Positions 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 100.21 101.31 101.68 90.46 (11.22) (11.0)% -% _OA 1,040.35 1,034.85 1,034.85 956.00 (78.85) (7.6)% a.The FY 2021 Adopted Budget includes position freezes that reduced the funding equivalent to holding a position vacant. The positions impacted by this action are identified with "(Freeze)" following the job classification title and summarized in two rows; one to reflect the total FTE authorized (less freezes), and another to reflect FTE freezes. The FY 2022 Proposed Budget includes City Council direction to eliminate these positions (CMR 11872). b. The Office of Transportation was created within the City Manager's Office in FY 2020 through the reallocation of staff and resources from the Planning and Development Services Department (previously the Planning and Community Environment Department). Prior year staffing levels have been restated for demonstrative purposes. c. The Planning and Development Services Department was established in FY 2020 through the merging of the Development Services Department and Planning and Community Environment Department and the reallocation of resources to create a dedicated Office of Transportation within the City Manager's Office. Prior year staffing levels have been restated for demonstrative purposes. TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 429 ATTACHMENT A, EXHIBIT 5 CITY OF PALO ALTO Municipal Fee Schedule Amendements for FY 2022 Changed Fees ATTACHMENT A, EXHIBIT 6 Administrative Services Department FY2�21A•••t-• FY2�22 r•••se• %Ch -n:- Justificati.n Budget Book $30.00 each $35.00 each 16.67% Fees aligned to cover minimum material and staffing costs Citywide Utility Standards - WGW Standards, Latest Edition Utility Standards - Project Plan Set (Up to 25 sheets) $30.D0 each $30.00 each $65.00 each $56.00 each 116.67% 86.67% Fees aligned to cover minimum material costs Community Services Department Arts & Sciences (Art Center) Locker Rental - Large Wr.7171777171mlir 11•11211271=. Justification $35.00 per season $39.00 per season 11.43% Locker Rental - Small $23.00 per season $25.00 per season 10.00% Administration Fee Per Registration $0.00 1 •s each $0.00 00 each 110% Arts & Sciences (Arts Activities) Field Trips $138.00 per group $152.00 per group 10.00% Workshop Supplies $0.50 - $88.00 per person $0.50 - $97.00 per person 10.00% Arts & Sciences (Junior Museum & Zoo) Family Membership $150.00 - $430.00 each $108.00 - $430.00 each Other Rentals & Reservations (Athletic Fields) Grass Fields Resident Fee: $49.00 - $87.00 per hour; Non -Resident Fee: 89.00- 174.00 •er hour Resident Fee: $54.00 per hour; Non -Resident Fee: $98.00 per hour 10.16% Grass Fields - Palo Alto Based Non -Profits Resident Fee: $27.00 - $58.00 per hour; Non -Resident Fee: Not Resident Fee: $30.00 per hour; Non -Resident Fee: Not Available Available Resident Fee: $3.00 - $29.00 per hour; Non -Resident Fee: Not Available 10.00% Grass Fields - Palo Alto Based Youth Sports Organizations Synthetic Turf Field Synthetic Turf Field - Palo Alto Based Non -Profits Resident Fee: $9.00 per hour; Non -Resident Fee: Not Available Resident Fee: $66.00 - $174.00 per hour; Non -Resident Fee: Resident Fee: $73.00 per hour; Non -Resident Fee: $163.00 per $148.00 - $232.00 per hour hour Resident Fee: $47.00 - $116.00 per hour; Non -Resident Fee: Resident Fee: $52.00 per hour; Non -Resident Fee: Not available 10.63% Not Available 28.00% 10.37% Synthetic Turf Field - Palo Alto Based Youth Sports Organizations Rentals & Reservations (Cubberley Community Center) Additional hours past ten daily Resident Fee: $35.00 - $58.00 per hour; Non -Resident Fee: Not Available Resident Fee: $39.00 per hour; Non -Resident Fee: Not Available 11.43% A. Performance Day Package Basic Rate: $225.00 per hour; Non -Profit Rate: $158.00 per hour Basic Rate: $1,600.00 each; Non -Profit Rate: $1,120.00 each $250.00 per hour $1,650.00 each 11.00% 3.00% B. Production Day Package Basic Rate: $130.00 per hour; Non -Profit Rate: $91.00 per hour $135.00 per hour 4.00% C. Rehearsal Day Package Basic Rate: $1,350.00 each; Non -Profit Rate: $945.00 each $1,400.00 each 4.00% D. Dark Day Package Basic Rate: $960.00 each; Non -Profit Rate: $672.00 each $1,000.00 each 4.16% Additional Performance Hours Past Four per Performance Dressing Room - M3 Basic Rate: $225.00 per hour; Non -Profit Rate: $158.00 per hour $250.00 per hour Basic Rate: $26.00 per hour; Non -Profit Rate: $22.00 per hour $30.00 per hour 15.39% Recreation (Recreation Activities) Teen Center Membership - Monthly A $10.00 per month $5.00 - $10.00 per month Other Fees aligned with market conditions and service delivery model Attachment A: Page 1 of 2 Municipal Fee Schedule Amendements for FY 2022 Changed Fees ATTACHMENT A, EXHIBIT 6 Office of Transportation (OOT) All Downtown and SOFA Lots and Garages Annual Parking Permit California Avenue Area All Garages and Lots Annual Parking Permit Downtown RPP - Reduced -Price Employee Parking Permit Downtown RPP - Full Price Employee Parking Permit Evergreen RPP- MayField RPP Reduced -Price Employee Parking Permit Evergreen RPP - MayField RPP Full Price Employee Parking Permit Southgate RPP - Reduced -Price Employee Parking Permit $830.00 per year 5620.00 per year $50.00 each $806.00 per year 5403.00 per year $50.00 each 5415 each $50 each $310 each $403 each $25 each $201.50 each 50 each $25 each Southgate RPP - Full Price Employee Parking Permit 5310 each $201.50 each Planning and Development Services (Public Works) e7_.]._ .: . '_. Wa.idg d iT Tree Inspection for Private Development $161.00 per inspection $208.00 per inspection 27.30% Fee aligned to increased salary costs of staff time required for this service Revert to pre-pandamic FY 2020 pricing Planning and Development Services (Impact & In -Lieu Fees) Park Impact Fee Single Family $13,103.00 per residence or $19,565.00 per Single Family $57,420.00 per unit; Multi -Family 542,468.00 per residence larger than 3,000 sq. ft.; Multi -Family $8,577.00 per unit unit or $4,337.00 per unit smaller than or equal to 900 sq. ft. Park Impact Fee Commercial/Industrial $5,564.00 per 1,000 sq. ft. or fraction thereof; Hotel/Motel 52,516.00 per 1,000 sq. ft. or fraction thereof Commercial/Industrial $16,837.00 per net new 1000 sq. ft.; Hotel/Motel 52,866.00 per net new 1000 sq. ft. Community Center Impact Fee Single Family $3,499.00 per residence or $5,086.00 per residence larger than 3,000 sq. ft.; Multi -Family $2,235.00 per unit or 51,128.00 per unit smaller than or equal to 900 sq. ft. Single Family $4,438.00 per unit; Multi -Family $3,283.00 per unit Community Center Impact Fee Commercial/Industrial $314.00 per 1,000 sq. ft. or fraction thereof; Hotel/Motel $142.00 per 1,000 sq. ft. or fraction thereof Commercial/Industrial 51,301.00 per net new 1000 sq. ft.; Hotel/Motel $222.00 per net new 1000 sq. ft. Library Impact Fee Library Impact Fee Single Family 51,187.00 per residence or 51,7666 per residence larger than 3,000 sq. ft.; Multi -Family $710.00 per unit or 5390.00 per unit small than 900 sq. ft. Commercial/Industrial $299.00 per 1,000 sq. ft. or fraction thereof; Hotel/Motel 5126.00 per 1,000 sq. ft. or fraction thereof Single Family $2,645.00 per unit; Multi -Family $1,956.00 per unit Commercial/Industrial $776.00 per net new 1000 sq. ft.; Hotel/Motel $132.00 per net new 1000 sq. ft. Fees aligned to fee study (CMR 12163) Attachment A: Page 2 of 2 ATTACHMENT B REDLINE Cover Sheet For Fiscal Year 20221 City of Palo Alto Compensation Plan Management and Professional Personnel, And Council Appointees Due to the impacts of the COVID-19 health pandemic, the City of Palo Alto Management and Professional employees will make the following adjustments to the Compensation Plan for the period of July 1, 20291 through June 30, 20224. All other terms not listed below remain the same as provided in the Management Compensation Plan and shall continue through June 30, 20224. For Fiscal Year 20224, there will be no cost of living increase. Individual base salary incr ases e -r —compensation adjustments tied to the performance appraisal process will be carried out according to the provisions of the compensation plan. I I. Employees laid off as part of the Fiscal YearY 20242 budget reductions, shall be eligible for a severance payment equivalent to four weeks of salary, unless otherwise specified (At -Will). I II. For Fiscal Y ar 2021, all employees will take 13 unpaid furlough days (104 hours). At least, one unpaid furlough day of 8 hours will be taken per month. VIII. For Calendar Year 2022, tThe City will maintain the maximum City contributions to health care that went into effect January 1, 2021. to health care in alignment with budgeted incr ases. Effective January 1, 2021, the City will incr ase its maximum contribution by 50% of average of the incr aces to Kaiser and PERS Choice. Provided however, that the total incr asc of the maximum City contribution shall not exceed 4%. V IV. For Fiscal Calendar Year 20242, the City will reduce reinstate the "Excess Benefit" reduced in 2021 by 50%. Employees will receive $24,2500 to put toward options designated in the Compensation Plan. V-hV. For FY21Fiscal Year 2022, the City Manager is authorized to increase vacation accrual maximums by 80 hours for employees who would hit their respective cap. Unless otherwise amended the vacation accrual maximum will return to its normal level in Fiscal Year ¥223. Any leave hours an employee has above the vacation accrual maximum will be cashed out on the next paycheck. Except as herein modified, all other provision of the Compensation Plan shall remain in effect. ATTACHMENT B Cover Sheet For Fiscal Year 2022 City of Palo Alto Compensation Plan Management and Professional Personnel, And Council Appointees Due to the impacts of the COVID-19 health pandemic, the City of Palo Alto Management and Professional employees will make the following adjustments to the Compensation Plan for the period of July 1, 2021 through June 30, 2022. All other terms not listed below remain the same as provided in the Management Compensation Plan and shall continue through June 30, 2022. I. For Fiscal Year 2022, there will be no cost of living increase. Individual compensation adjustments tied to the performance appraisal process will be carried out according to the provisions of the compensation plan. II. Employees laid off as part of the Fiscal Year 2022 budget reductions, shall be eligible for a severance payment equivalent to four weeks of salary, unless otherwise specified (At -Will). III. For Calendar Year 2022, the City will maintain the maximum City contribution to health care that went into effect January 1, 2021. IV. For Calendar Year 2022, the City will reinstate the "Excess Benefit" reduced in 2021 by 50%. Employees will receive $2,500 to put toward options designated in the Compensation Plan. V. For Fiscal Year 2022, the City Manager is authorized to increase vacation accrual maximums by 80 hours for employees who would hit their respective cap. Unless otherwise amended the vacation accrual maximum will return to its normal level in Fiscal Year 23. Any leave hours an employee has above the vacation accrual maximum will be cashed out on the next paycheck. Except as herein modified, all other provision of the Compensation Plan shall remain in effect. DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC CITY OF PALO ALTO CITY COUNCIL MEETING 6/21/2021 [X] Placed Before Meeting [ ] Received at Meeting 22 TO: HONORABLE COUNCIL MEMBERS FROM: KIELY NOSE, ADMINISTRATIVE SERVICES DIRECTOR DATE: JUNE 21, 2021 SUBJECT: AGENDA ITEM NUMBER 22 — Replacement of Attachment A, & Exhibits 1-6 Subsequent to the release of Staff Report 12307 to Adopt the Fiscal Year 2022 Budget, staff identified that the FY 2022 Budget Adoption Ordinance (Attachment A to the staff report) was inadvertently omitted. Additionally, staff noted that Attachment A, Exhibits 2 and 3 may appear twice. For ease of review and clarity of the official pubic record, this memorandum provides the Attachment A, "Ordinance of the Council of the City of Palo Alto, Adopting the Budget for Fiscal Year (FY) 2022" and all supporting exhibits 1-6 as referenced in the ordinance for City Council adoption as part of item #22 on the June 21, 2021 City Council agenda (Agenda). � DocuSigned by: Ll.Y�e. ss—T1513O4LE3t5g440`J... Kiely Nose Administrative Services Director 1-DocuSigned by: El 54,.4414 �FLDIiA 1`dl.l.l.i5U4F`J_.. Ed Shikada City Manager DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A ORDINANCE NO. XXXX ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING THE BUDGET FOR FISCAL YEAR 2022 SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 6(g) of Article IV of the Charter of the City of Palo Alto and Chapter 2.28 of the Palo Alto Municipal Code, the City Manager has prepared and submitted to the City Council, by letter of transmittal, a budget proposal for Fiscal Year 2022; and B. Pursuant to the provisions of Section 12 of Article II I of the Charter, the Council did, on June 21, 2021, hold public hearings on the budget after publication of notice in accordance with Section 2.28.070 of the Palo Alto Municipal Code; and C. In accordance with the provisions of Chapter 8 of Division 1, of Title 7, commencing with Section 66016 of the Government Code, as applicable, the Council did on June 21, 2021, hold a public hearing on the proposed amendments to the Municipal Fee Schedule, after publication of notice and after availability of the data supporting the amendments was made available to the public at least 10 days prior to the hearing. SECTION 2. Pursuant to Chapter 2.28 of the Palo Alto Municipal Code, the following documents, collectively referred to as "the budget" are hereby approved and adopted for Fiscal Year 2021: (a) The budget document (Exhibit "1") containing the proposed operating and capital budgets submitted on May 3, 2021, by the City Manager for Fiscal Year 2022, entitled "City of Palo Alto - City Manager's Fiscal Year 2022 Proposed Budget" covering General Government Funds, Enterprise Funds, Special Revenue Funds, and Internal Service Funds, a copy of which is on file in the Department of Administrative Services, to which copy reference is hereby made concerning the full particulars thereof, and by such reference is made a part hereof; and (b) The Amendments to the City Manager's Fiscal Year 2022 Proposed Budget, attached hereto as Exhibit "2", Exhibit "3", and Exhibit "4" and made a part hereof; and (c) Changes and revised pages in the Table of Organization, as displayed on pages 339 through 356 in "Exhibit 1," and amended in Exhibit "5" made a part hereof; and 1 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A (d) Fee changes of the Municipal Fee Schedule attached hereto as Exhibit "6". SECTION 3. The sums set forth in the budget for the various departments of the City, as herein amended, are hereby appropriated to the uses and purposes set forth therein. SECTION 4. All expenditures made on behalf of the City, directly or through any agency, except those required by state law, shall be made in accordance with the authorization contained in this ordinance and the budget as herein amended. SECTION 5. Appropriations for the Fiscal Year 2021 that are encumbered by approved purchase orders and contracts for which goods or services have not been received or contract completed, and/or for which all payments have not been made, by the last day of the Fiscal Year 2021 shall be carried forward and added to the fund or department appropriations for Fiscal Year 2022. SECTION 6. The City Manager is authorized and directed to make changes in the department and fund totals and summary pages of the budget necessary to reflect the amendments enumerated and aggregated in the budget as shown in Exhibit "2", Exhibit "3", and Exhibit "4" and the Fiscal Year 2021 appropriations carried forward as provided in Section 5. SECTION 7. As specified in Section 2.04.320 of the Palo Alto Municipal Code, a majority vote of the City Council is required to adopt this ordinance. SECTION 8. As specified in Section 2.28.140(b) of the Palo Alto Municipal Code, the Council of the City of Palo Alto hereby delegates the authority to invest the City's funds to the Director of Administrative Services, as Treasurer, in accordance with the City's Investment Policy for Fiscal Year 2022. SECTION 9. The Council of the City of Palo Alto adopts the changes to the Municipal Fee Schedule as set forth in Exhibit "6". The amount of the new or increased fees and charges is no more than necessary to cover the reasonable costs of the governmental activity, and the manner in which those costs are allocated to a payer bears a fair and reasonable relationship to the payer's burden on, or benefits received from, the governmental activity. All new and increased fees shall go into effect immediately; provided that pursuant to Government Code Section 66017, all Planning & Community Environment Department fees relating to a "development project" as defined in Government Code Section 66000 shall become effective sixty (60) days from the date of adoption. SECTION 10. Fees in the Municipal Fee Schedule are for government services provided directly to the payor that are not provided to those not charged. The amount of this fee does not 2 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A exceed the reasonable costs to the City of providing the services. Consequently, pursuant to Art. XIII C, Section 1(e)(2), such fees are not a tax. SECTION 11. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 12. The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: Enter Date Here AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: City Manager City Attorney Director of Administrative Services 3 DocuSign Envelope ID: 7AC1 E5F8-59B9-4EC1-A5A2-97ED89B7DABC CITY OF PALO ALTO ATTACHMENT A, EXHIBIT 1 Fiscal Year 2022 City Manager's Proposed Operating & Capital Budgets and Municipal Fees These documents were originally distributed on May 3, 2021. Printed copies are available upon request for $30 per book (FY 2021 fee). These documents may be viewed at any City of Palo Alto Library or the City's website: www.cityofpaloalto.org/Departments/Administrative-Services/City- Budget Changes to the Municipal Fee Schedule were distributed in Finance Committee Packet on May 12, 2021. The City Manager's Staff Report (#12193) can be viewed on the City's website: www.cityofpaloalto.org/files/assets/public/agendas- minutes-reports/reports/city-manager-reports-cmrs/2021/id-12193.pdf — At places memorandum: (Corrections and Clarifications to CMR #12193) www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/at- places-memo/05-12-21-fcm-at-places-memo-items-1-and-5.pdf In addition, various at places memorandum and presentations were presented throughout the Finance Committee Hearings in May 2021 to provide additional information. These documents can be found on the City's budget website under "FY 2022 Budget Process": www.cityofpaloalto.org/Departments/Administrative- Services/City-Budget 4 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Administrative Administrative Services Department Support Services Consistent with staff recommendation at the May 25 meeting, this action restores 0.50 Administrative Associate 11 in the Purchasing Division and realigns staff resources to maintain minimum procurement staffing necessary to support the organization and service levels. Namely, it maintains FY 2021 reduced staffing levels and restores further reductions in the FY 2022 Proposed Budget. This realignment of staff resources will allow for efficiencies in solicitation cycle time, such as changing levels for competitive solicitations and centralizing low -dollar items from departments. $ $ 93,900 Administrative Business Registry Certificate (BRC) Revenue Adjustment $ (81,864) $ Services Consistent with staff recommendation at the May 25 meeting, this action reduces the revenue estimate for business registry fees to align with a fee waiver approved by the City Council (CMR 12167). City Attorney Restore City Attorney Administrative Support This action restores funding for 1.00 Assistant City Attorney previously proposed to be underfilled at 1.00 Deputy City Attorney. This will restore the Office's ability to address complex strategic initiatives, manage response times and reliance on outside counsel expertise. This will ensure continued support of current complex and high priority goals adopted by the Council (e.g. but not limited to sustainability initiatives, ballot initiatives, and public private partnerships). City Auditor Office City Auditor Administrative Support Consistent with staff recommendation at the May 25 meeting, this action partially restores auditing contract services with Baker -Tilly to help ensure that the Auditor's Office has adequate capacity to perform audit services. City Clerk Restore Transcription Services Consistent with Finance Committee recommendation at the May 12 meeting, this action restores transcription and production of sense minutes for the City Council meetings and Standing Committee meetings. Though transcribed minutes are not a legal requirement and do not represent the official record of Council and Committee action, they are a beneficial service to the community, Council, and City Staff. Restoring these services provides the community with a text summary of the minutes to review discussion and actions instead of the official action minutes and video. $ $ $ $ 92,454 $ 30,000 $ 63,048 5 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) City Manager's Office Federal Lobbyist Contract Services Consistent with Finance Committee recommendation at the May 12 meeting, this action restores contract services for federal legislative lobbying to help ensure that the City stay informed on federal legislative activities, including funding opportunities for which the City may be eligible. Community Services Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation at the May 4 meeting, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108- $200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Community Services Children's Theatre Outreach and Hot Dog Productions Consistent with City Council recommendation at the May 17 meeting, this action adds $378,000 of expenses, $118,000 of revenues, and the equivalent of 2.88 FTE to allow the Children's Theatre to provide Outreach and Hot Dog theater productions. These programs were reduced in the FY 2021 budget process. This expense is recommended to be partially offset in FY 2022 by $125,000 of one-time funding tentatively approved by the Finance Committee on May 12 for the Community Services Department. Community Services Arts Center Operating Hours, Programming, and Fees Consistent with Finance Committee recommendation at the May 12 meeting, this action restores the equivalent of 2.16 FTE staffing resources and $208,025 in corresponding expenses. This will allow the Art Center to continue to provide Family Days, exhibitions, school programs such as Project Look and Cultural Kaleidoscope, teen leadership programs, and volunteer and internship programs. This FY 2022 proposal included an increase in fees and corresponding revenue for Art Center programs and classes. As part of this recommendation, the revenue from the increased fees will still be increased ($64,000). $ 40,000 $ (273,643) $ 675,000 $ 118,425 $ 378,335 $ 208,025 6 DocuSign Envelope ID: 7AC1E5F8-5969-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Community Services Community Services Community Services Community Services Administrative Support Consistent with Finance Committee recommendation at the May 12 meeting, this action restores 1.00 FTE Administrative Assistant in the Community Services Department. This position supports the entire Community Services Department by coordinating the creation of marketing materials, managing agendas and reports, producing website content and responding to public request responses. This FY 2022 proposal included a reduction in printing costs for the Enjoy! Catalog. As part of this recommendation, the funding to print the Enjoy Catalog will still be reduced ($20,000). Human Service Resource Allocation Process (HSRAP) Consistent with Finance Committee and City Council recommendation at the May 12 and 17 meetings, this one-time action adds a total of $200,000 in additional expenses to be provided through the HSRAP process. This expense is partially offset by a $50,000 transfer from the Stanford University Medical Center (SUMC) Fund as recommended on May 12, 2021 by the Finance Committee, therefore the net impact to the General Fund is $150,000. Cubberley Theater Administrative Staffing Consistent with Finance Committee recommendation at the May 12 meeting, this action restores 0.75 FTE Producer Arts/Science Program at the Cubberley Theater. This position supports the theater rental process, event scheduling, and various administrative and customer service duties. Community Services Children's Theatre Operations and Production Staffing Consistent with Finance Committee recommendation at the May 12 meeting, this action restores the equivalent of 1.32 FTE part- time staffing at the Children's Theatre. These positions provide costuming and customer service support. Community Services Teen Services Consistent with Finance Committee recommendation at the May 12 meeting, this action restores the equivalent of 1.21 FTE part- time staffing for Teen Services programming and Teen Center operations. This will allow the Teen Center to operate five days per week. The FY 2022 proposal included a recommendation to utilize the Bryant Street Garage/Think Fund resources to offset expenses in FY 2022. As part of this recommendation, this funding offset will still be applied ($150,000). $ 152,200 $ 50,000 $ 200,000 $ 94,123 $ 68,224 $ 55,198 7 DocuSign Envelope ID: 7AC1E5F8-5969-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Community Services Youth Community Services, Youth Connectedness Initiative Consistent with City Council recommendation at the May 17 meeting, this action allocates one-time funding of $50,000 to the Youth Community Services (YCS) Youth Connectedness Initiative (YCI). Community Services Junior Museum and Zoo (JMZ) Marketing Consistent with Finance Committee recommendation at the May 12 meeting, this action restores $50,000 of the FY 2022 proposed $100,000 reduction to annual marketing budget for the JMZ. This will result in an annual marketing budget of approximately $150,000, or 75% of the original advertising resources. This level of marketing resources will allow the JMZ to partner with a marketing consultant to maximize the quality and impact of advertising campaigns. Community Services Sports and Recreation Reductions, Fees, and Staffing Consistent with Finance Committee recommendation at the May 12 meeting, this action restores 0.35 FTE Recreation Leader III that supports the Middle School Athletics (MSA) and Adult Sports programs and the bus transportation contract for Foothills Preserve summer camps. This position supports customer service; hiring of hourly staff; and coordination between the district, coaches, referees to support the MSA and Adult Sports programs. This FY 2022 proposal included an increase in athletic field rental fees. As part of this recommendation, the revenue from the increased fees will still be increased ($79,000). Community Services Twilight Concert Series Consistent with City Council recommendation at the May 17 meeting, this action adds $30,000 in expenses for the Twilight Concert Series. This program was reduced in the FY 2021 budget process. The Twilight Concert Series is the City of Palo Alto's summer events program. It includes concerts, movies nights, and other family -oriented community activities. This represents a 75% restoration of the program's prior resources and is expected to support three to four events. Community Services Baylands Interpretive Center Public Hours Consistent with Finance Committee recommendation at the May 12 meeting, this action restores the equivalent of 0.29 FTE and the public operating hours of the Baylands Interpretive Center. $ $ $ $ $ $ 50,000 $ 50,000 $ 38,202 $ 30,000 $ 15,321 8 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Community Services Fire Fire Fire Human Resources Library Cubberley Artist Studio Program (CASP) Administrative Staffing Consistent with Finance Committee recommendation at the May 12 meeting, this action restores 0.20 part-time Arts & Sciences Professional!. This position supports administrative, programmatic, and customer service tasks for the Public Art Division and the CASP. Fire Station 2 Brown -out Consistent with Finance Committee recommendation at the May 11 meeting, this action restores overtime funding associated with the full brownout of Fire Station 2. This will restore staffing to FY 2021 levels that brownout on weekdays from 8pm to 8ann and weekends at all hours. Fire Department Administrative Support Consistent with staff recommendation at the May 25 meeting, this action reclassifies 0.48 part-time FTE Administrative Specialist to 1.00 FTE Administrative Associate 11. This will allow for additional departmental assistance with higher level tasks such as establishing the Subscription Fee online sign up portal and purchasing tasks related to the AED Maintenance contract. Equity Hiring Initiatives Consistent with Finance Committee recommendation at the May 12 meeting, this action allocates one-time funding for equity hiring initiatives. Human Resources Administrative Support Consistent with staff recommendation at the May 25 meeting, this action restores recruitment resources to keep pace with hiring for safety -sensitive and essential positions which have been exempted from the hiring freeze, assist with the current backlog, and address restored positions that must be filled from the FY 2022 budget process. Funding may be used for staffing support or contractual support depending on the immediate needs and availability of resources. Neighborhood Library Services Consistent with Finance Committee recommendation at the May 12 meeting, this action restores $545,000 of expenses and 5.28 FTE to maintain operating hours of the three smaller library branches: Children's, College Terrace, and Downtown. This will maintain FY 2021 service levels of 3 days per week at these branches. $ $ $ $ $ $ $ 12,173 $ 709,000 $ 68,000 $ 50,000 $ 75,000 $ 544,918 9 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Non -Departmental Non -Departmental Reverse Savings for Potential Labor Concessions Consistent with City Council recommendation at the June 7 meeting, this action reinstates expected expenses for contractually obligated general wage increases for the City's Public Safety labor groups: Palo Alto Police Officers Association/Police Managers Association (PAPOA/PMA) ($0.5 million); and International Association of Fire Fighters/Fire Chiefs Association (IAFF/FCA) ($0.4 million). The City is currently in contract with PAPOA, PMA, IAFF, and FCA after reaching agreement with these groups last year for zero (0) percent general wage increases, deferring the contractual increase from June 2020 to June 2021. The City has not reached agreements with represented bargaining groups and is therefore reversing the assumed savings that was included in the FY 2022 Proposed Budget. Establish Budget Uncertainty Reserve (City Council) Consistent with Finance Committee recommendation at the May 12 meeting, this action establishes a Budget Uncertainty Reserve (City Council) that the City Council may use to address unforeseen emergent issues that would otherwise impact City operations and services. Non -Departmental Establish Reserve for Administrative Support Consistent with staff recommendation at the May 25 meeting, this action establishes a one-time reserve to provide funding for unforeseen resource needs in FY 2022. This funding will be used for one-time administrative support costs that are anticipated to materialize in various departments across the City as a result of service restoration and the City continuing to recover from effects of the COVID-19 pandemic. $ $ $ $ 905,000 $ 500,000 $ 300,000 Non -Departmental Reduce City Council Contingency $ $ (25,000) Consistent with Finance Committee recommendation at the May 25 meeting, this one-time action reduces Council Contingency by $25,000, to a remaining balance of $100,000. Non -Departmental Eliminate General Fund Transition Reserve $ $ (750,000) Consistent with staff recommendation at the May 25 meeting, this action eliminates the $750,0000 General Fund Transition Reserve. This reserve was established to offset the cost of severance, separation timing, and service changes that were anticipated to incur one-time transition costs in FY 2022. With the restoration of services and staffing, these costs are no longer anticipated. This funding is alternatively recommended to offset $875,000 in costs to restore administrative support functions. 10 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Non -Departmental Non -Departmental Draw Unallocated American Rescue Plan Act (ARPA) Reserve The FY 2022 Proposed Operating Budget recognized 50 percent or $6.25 million of the $12.5 million that the City anticipated to receive from ARPA as part of the federal government COVID-19 relief package anticipated to be received over a 24 -month period. Of the $6.25 million, a total of $3.2 million was reserved for discussion and allocation by the Finance Committee and City Council during budget deliberations. This action recognizes the use of funds set aside in reserve. Additional American Rescue Plan Act (ARPA) Allocation At the May 11 meeting, staff provided an update to the City's anticipated ARPA allocation at $13.7 million, an increase of $1.2 million from the $12.5 million estimated in the FY 2022 Proposed Budget. This additional funding was proposed by the Finance Committee to be split 50-50 over a 24 -month period, consistent with the allocation of the original estimate in the FY 2022 Proposed Budget. This recommendation was revised at the May 17 City Council meeting to reflect a 60-40 split of the receipt and appropriation of the $13.7 million over a 24 -moth period. This action recognizes the additional funding and revised funding split. $ $ (3,192,580) $ 1,970,000 $ Planning and Restore Current Planning Staffing $ $ 138,146 Development Consistent with Finance Committee recommendation at the May Services 12 meeting, this action restores 1.00 FTE Associate Planner that was eliminated in the FY 2022 Proposed Budget. This will support efficient processing timelines and timely permit issuance. Police Patrol Staffing $ $ 1,008,737 Consistent with Finance Committee recommendation at the May 11 meeting, this action restores 5.00 FTE Police Officers in Patrol Services that were eliminated in the FY 2022 Proposed Budget. This will maintain authorized sworn positions at FY 2021 levels. Police Crossing Guard Services Consistent with Finance Committee recommendation at the May 11 meeting, this action restores funding for crossing guard services that were reduced in the FY 2022 Proposed Budget. This will maintain crossing guard services at approximately 30 designated school area crosswalks and intersections, consistent with FY 2021 levels. $ $ 304,310 11 DocuSign Envelope ID: 7AC1E5F8-5969-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Police Police Public Works Public Works Reallocate Lieutenant from Police to City Manager's Office Consistent with Finance Committee recommendation at the May 11 meeting, this action restores funding for 1.00 FTE Lieutenant position that is reallocated to City Manager's Office to support community and business outreach and adaptation to the pandemic. This will allow the department to backfill the position during the temporary assignment. Administrative Programming Consistent with Finance Committee recommendation at the May 11 meeting, this action restores non -salary expenses to support the Citizen Academy, Reserve Dinner, DUI Campaign, PIO supplies/National Night Out, Bike Patrol, Explorer Program, and FBI academy that were reduced in the FY 2022 Proposed Budget. Restore Facilities Staffing Consistent with staff recommendation at the May 25 meeting, this action restores 1.00 FTE Facilities Technician to install, repair, and maintain systems at City facilities. As part of the FY 2022 Proposed Budget, this position was eliminated due to recommendations to close or reduce hours at several City facilities. During budget hearings, the Finance Committee and City Council recommended to restore operations at these facilities. This corresponding actions restores the position to help ensure timeliness for preventative maintenance work and add capacity to fulfill work orders of less critical or non -regulatory services (such as office/room reconfiguration, carpet/flooring repairs/replacement, furniture moving/set up for meetings, or treatment for nuisance pests). Restore Internal City Services for Citywide Facilities Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including custodial and utilities services essential to the maintenance and operation of these facilities. $ $ $ $ $ 292,903 $ 47,450 $ 136,178 $ 53,700 12 DocuSign Envelope ID: 7AC1E5F8-5969-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment GENERAL FUND (102 & 103) Various Fund Balance Fund Balance Fund Balance Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. $ $ 79,004 Draw on Budget Stabilization Reserve (BSR) $ $ (2,500,000) Consistent with Finance Committee recommendation at the May 12 meeting, this action reduces the BSR by $2,500,000, below the 18.5 percent target to approximately 17% of estimated FY 2022 expense levels. Adjustment to Fund Balance (Budget Stabilization Reserve) - $ $ 431,949 Management Wage Assumptions This action increases the General Fund Budget Stabilization Reserve for savings associated with a zero wage increase for the unrepresented Management and Profesionals group. Adjustment to Fund Balance (Budget Stabilization Reserve) - Service Employees International Union (SEIU) Wage Assumptions This action increases the General Fund Budget Stabilization Reserve for savings associated with a zero wage increase for SEIU upon contract expiration in December 2021. $ 260,000 GENERAL FUND (102 & 103) SUBTOTAL $ 1,782,918 $ 1,782,918 13 DocuSign Envelope ID: 7AC1E5F8-5969-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment CAPITAL IMPROVEMENT FUNDS I 1 T CAPITAL IMPROVEMENT FUND (471) Capital Capital Improvement Project Amendments to Proposed This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. Projects with other recommended adjustments are detailed below. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. $ 247,961 $ 11,128,540 Capital Transfer from the Stanford University Medical Center Fund/ $ 1,200,000 $ 3,400,000 Charleston/Arastradero Project (PE -13011) On May 17th, the City Council directed staff to move forward in FY 2022 to fund the Charleston/Arastradero Corridor Project (PE - 13011) utilizing a combination of funding sources including $1.2 million from SUMC (Community Health and Safety) funding; $1.5 million from the Bike and Pedestrian Plan capital project (PL -04010); and $300,000 from FY 2021 savings in various street maintenance projects. This option allowed staff to award a contract immediately using current bids, adjusted the timeframe of this action from FY 2023, as initially indicated, to FY 2022 in the five-year CIP. Capital Transfer from the Stanford University Medical Center Fund/Bike $ (1,986,696) $ (1,500,000) and Pedestrian Plan Project (PL -04010) On May 17th, the City Council directed staff to move forward in FY 2022 to fund the Charleston/Arastradero Corridor Project (PE - 13011) utilizing a combination of funding sources including $1.2 million from SUMC (Community Health and Safety) funding; $1.5 million from the Bike and Pedestrian Plan capital project (PL -04010); and $300,000 from FY 2021 savings in various street maintenance projects. The $2.0 million transfer from the SUMC Fund (Climate Change and Sustainable Communities) scheduled for FY 2022 for the Bike and Pedestrian Plan Project (PL -04010) will be shifted to FY 2023 in the 2022-2026 Capital Improvement Plan to cover costs planned in FY 2023 for PL -04010. 14 DocuSign Envelope ID: 7AC1 E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment CAPITAL IMPROVEMENT FUNDS 1 Capital Additional Funding to Charleston/Arastradero Project (PE -13011) $ $ (400,000) and realignment from Capital Improvement Fund Administration (AS -10000) On May 17th, the City Council directed staff to move forward in FY 2022 to fund the Charleston/Arastradero Corridor Project (PE - 13011) utilizing a combination of funding sources including $1.2 million from SUMC (Community Health and Safety) funding; $1.5 million from the Bike and Pedestrian Plan capital project (PL -04010); and $300,000 from FY 2021 savings in various street maintenance projects. To align salary expenses required for the Charleston/Arastradero Corridor Project, funding of $0.4 million will be reallocated from the Capital Improvement Fund Administration (AS -10000). Capital Transfer from the Gas Tax Fund/Streets Maintenance (PE -86070) $ (132,214) $ (132,214) The City received an updated Gas Tax revenue estimate for FY 2022. These revenues are generated by state collections of fuel taxes and vehicle registration fees and distributed to local jurisdictions to fund road rehabilitation and maintenance work on local streets and roads. This type of work is budgeted in the ongoing Streets Maintenance Capital Project (PE -86070) in the Capital Improvement Fund. The latest estimates results in a reduction of $132,214 in Gas Tax Revenue in the Gas Tax Fund offset by a $132,214 reduction in funding for the Streets Maintenance Capital Project (PE -86070) in the Capital Improvement Fund. Fund Balance Adjustment to Fund Balance (Infrastructure Reserve) This action adjusts the fund balance to offset adjustments recommended in this report. $ $ (13,167,275) CAPITAL IMPROVEMENT FUND (471) SUBTOTAL $ (670,949) $ (670,949) 15 DocuSign Envelope ID: 7AC1 E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment CAPITAL IMPROVEMENT FUNDS CUBBERLEY INFRASTRUCTURE FUND (472) Capital Capital Improvement Project Amendments to Proposed This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. $ $ 557,204 Fund Balance Adjustment to Fund Balance (Infrastructure Reserve) $ $ (557,204) This action adjusts the fund balance to offset adjustments recommended in this report. CUBBERLEY INFRASTRUCTURE FUND (472) SUBTOTAL $ $ 16 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • AIRPORT FUND (530) Public Works Capital Improvement Project Adjustments to Proposed This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Public Works Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. $ 517,735 $ 924 Public Works Adjustment to Fund Balance $ $ (518,659) This action adjusts the fund balance to offset adjustments recommended in this report. AIRPORT FUND (530) SUBTOTAL $ 17 DocuSign Envelope ID: 7AC1E5F8-5969-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS UTILITIES ADMINISTRATION FUND (521) Utilities Restore Auditor Services Contract Consistent with staff recommendation at the May 25 meeting, this action partially restores auditing contract services with Baker -Tilly. Utilities Transfer to Capital Improvement Fund This action reappropriates funding for a transfer to the Capital Improvement Fund for work on the Facility Interior Finishes Replacement capital project (PF-02022). This work was unable to be completed in FY 2021, so the funding will be transferred when the work is completed in FY 2022. Utilities Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. $ 10,000 $ 169,000 $ 75,425 Utilities Adjustment to Fund Balance $ - $ (254,425) This action adjusts the fund balance to offset adjustments recommended in this report. UTILITIES ADMINISTRATION FUND (521) SUBTOTAL $ $ 18 DocuSign Envelope ID: 7AC1E5F8-5969-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • ELECTRIC FUND (513 & 523) Utilities Capital Improvement Project Adjustments to Proposed $ - $ 8,452,009 This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Utilities Reclass to Inspector, WGW Utilities Field Service $ 3,340 Consistent with staff recommendation at the May 25 meeting, this action reclassifies 5.00 positions in the Utilities Department from a Field Service Inspector to a Water Gas Wastewater (WGW) Utilities Field Service Inspector classification due to an arbitration decision in January 2021 (CMR 12156). The new classification aligns the role with the specific service area and includes a 10 percent increase effective October 2016. Utilities Restore Internal City Services for Citywide Facilities $ 6,800 $ Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including allocated charges for custodial and utilities services essential to the maintenance and operation of these facilities. Utilities Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108-$200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Utilities Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. $ 100,143 $ - $ (8,348,406) ELECTRIC FUND (513 & 523) SUBTOTAL $ 106,943 $ 106,943 19 DocuSign Envelope ID: 7AC1E5F8-5969-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • GAS FUND (514 & 524) Utilities Capital Improvement Project Adjustments to Proposed $ - $ (1,179,701) This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Utilities Gas Commodity Adjustments $ - $ (1,623,991) On May 25, 2021, the City Council approved a reduction to gas commodity costs for Carbon Neutral offsets accounted for in the financial plan. The proposed change reduces the commodity purchase costs by $1,623,991 from $18,031,102 to $16,431,102. Utilities Reclass to Inspector, WGW Utilities Field Service $ - $ 19,429 Consistent with staff recommendation at the May 25 meeting, this action reclassifies 5.00 positions in the Utilities Department from a Field Service Inspector to a Water Gas Wastewater (WGW) Utilities Field Service Inspector classification due to an arbitration decision in January 2021 (CMR 12156). The new classification aligns the role with the specific service area and includes a 10 percent increase effective October 2016. Utilities Restore Internal City Services for Citywide Facilities Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including allocated charges for custodial and utilities services essential to the maintenance and operation of these facilities. Utilities Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108-$200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Utilities Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. $ 800 $ $ 38,654 $ - $ 2,823,717 GAS FUND (4 & 524) SUBTOTAL $ 39,454 $ 39,454 DocuSign Envelope ID: 7AC1E5F8-5969-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS REFUSE FUND (525) Public Works Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. Public Works Restore Internal City Services for Citywide Facilities Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including custodial and utilities services essential to the maintenance and operation of these facilities. Public Works Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108-$200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Public Works Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. $ 5,829 $ 1,400 $ $ 92,416 $ $ 87,987 REFUSE FUND (525) SUBTOTAL $ 93,816 $ 93,816 21 DocuSign Envelope ID: 7AC1E5F8-5969-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS STORMWATER MANAGEMENT FUND (528) Capital Capital Improvement Project Adjustments to Proposed This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. Projects with other recommended adjustments are detailed below. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. $ (875,033) Capital Revenue from the State of California/Trash Capture Device $ 613,000 $ 613,000 Installation (SD -22002) This action recognizes revenue ($0.6 million) from the State of California Department of Transportation (Caltrans) to reimburse the City for the design and construction of a Trash Capture Device (TCD) in the planting strip along Embarcadero Road located in front of the parking lot of Palo Alto Baylands Golf Links. This action also establishes the Trash Capture Device Installation capital project (SD -22002) in the Stormwater Management Fund to perform this work. The TCD will be integrated in a storm drain pipe to capture trash as small as five millimeters from a section of the storm drain system prior to discharging to the San Francisco Bay. Public Works Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. $ 4,562 22 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS Public Works Restore Internal City Services for Citywide Facilities Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including custodial and utilities services essential to the maintenance and operation of these facilities. Public Works Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108-$200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Public Works Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. $ 500 $ $ 50,755 $ $ 921,725 STORMWATER MANAGEMENT FUND (528) SUBTOTAL $ 664,255 $ 664,255 23 DocuSign Envelope ID: 7AC1E5F8-5969-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • WASTEWATER COLLECTION FUND (527) Utilities Capital Improvement Project Adjustments to Proposed $ - $ 420,000 This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Utilities Restore Internal City Services for Citywide Facilities $ 200 $ Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including allocated charges for custodial and utilities services essential to the maintenance and operation of these facilities. Utilities Reclass to Inspector, WGW Utilities Field Service $ - $ 5,968 Consistent with staff recommendation at the May 25 meeting, this action reclassifies 5.00 positions in the Utilities Department from a Field Service Inspector to a Water Gas Wastewater (WGW) Utilities Field Service Inspector classification due to an arbitration decision in January 2021 (CMR 12156). The new classification aligns the role with the specific service area and includes a 10 percent increase effective October 2016. Utilities Junior Museum and Zoo (JMZ) Operating Plan Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108- $200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. $ 19,467 $ Utilities Adjustment to Fund Balance $ $ (406,300) This action adjusts the fund balance to offset adjustments recommended in this report. WASTEWATER COLLECTION FUND (527) SUBTOTAL $ 19,667 $ 19,667 24 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • WASTEWATER TREATMENT FUND (526) Public Works Capital Improvement Project Adjustments to Proposed This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Public Works Information Technology Administrative Support $ $ 27,608 Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. $ 12,502,000 $ (28,910) Public Works Adjustment to Fund Balance $ - $ 12,503,302 This action adjusts the fund balance to offset adjustments recommended in this report. WASTEWATER TREATMENT FUND (526) SUBTOTAL $ 12,502,000 $ 12,502,000 25 DocuSign Envelope ID: 7AC1E5F8-5969-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment ENTERPRISE FUNDS • WATER FUND (522) Utilities Capital Improvement Project Adjustments to Proposed $ This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Utilities Junior Museum and Zoo (JMZ) Operating Plan $ 373,565 $ Consistent with the Finance Committee recommendation on May 4, this action adjusts the JMZ operating plan and corresponding revenue budget by reducing ticket prices from $18 to $10, reducing membership prices from $150-$430 to $108-$200, increasing facility rental and class/camp revenue estimates, and refining expenses. Further detail can be found under Scenario 5 in CMR 12050. The adjusted FY 2022 JMZ cost recovery level is estimated to be 60%, which falls in the medium cost recovery policy range. Utilities Restore Internal City Services for Citywide Facilities $ 3,600 $ Consistent with Finance Committee recommendation at the May 25 meeting, this action restores internal City services associated with the proposed closure of the Baylands Interpretive Center and the neighborhood library branches (Children's, College Terrace, and Downtown), including allocated charges for custodial and utilities services essential to the maintenance and operation of these facilities. Utilities Reclass to Inspector, WGW Utilities Field Service Consistent with staff recommendation at the May 25 meeting, this action reclassifies 5.00 positions in the Utilities Department from a Field Service Inspector to a Water Gas Wastewater (WGW) Utilities Field Service Inspector classification due to an arbitration decision in January 2021 (CMR 12156). The new classification aligns the role with the specific service area and includes a 10 percent increase effective October 2016. $ 555,830 $ 13,554 Utilities Adjustment to Fund Balance $ $ (192,219) This action adjusts the fund balance to offset adjustments recommended in this report. WATER FUND (522) SUBTOTAL $ 377,165 $ 377,165 26 DocuSign Envelope ID: 7AC1E5F8-5969-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment INTERNAL SERVICE FUNDS TECHNOLOGY FUND (682) Capital Capital Improvement Project Reappropriations $ $ (180,407) This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Information Information Technology Administrative Support $ 200,000 $ 200,000 Technology Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. Fund Balance Adjustment to Fund Balance $ - $ 180,407 This action adjusts the fund balance to offset adjustments recommended in this report. TECHNOLOGY FUND (682) SUBTOTAL $ 200,000 $ 200,000 27 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment INTERNAL SERVICE FUNDS VEHICLE REPLACEMENT FUND (681) Capital Capital Improvement Project Reappropriations This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2021 to FY 2022. All recommended changes to proposed capital projects are outlined in Attachment A, Exhibit 3. Public Works Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. Fund Balance $ $ $ 22,870 $ 5,935 Adjustment to Fund Balance $ - $ (28,805) This action adjusts the fund balance to offset adjustments recommended in this report. VEHICLE REPLACEMENT FUND (681) SUBTOTAL $ $ 28 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment INTERNAL SERVICE FUNDS PRINTING & MAILING FUND (683) Public Works Information Technology Administrative Support Consistent with staff recommendation at the May 25 meeting, this action increases funding by $200,000 for Information Technology professional services support. IT professional services contracts provide flexible access to resources with specific skill sets, allowing IT to respond efficiently to a wide variety of department needs. Examples of anticipated applications are supplementary or specialized professional technical support for the onboarding of staff, return to work initiatives, and audio-visual efforts to continue to support virtual public meetings from City Hall. The cost of these services are budgeted as allocated charges in citywide departments; therefore, corresponding increases in various departments' allocated charges for internal services provided by the Information Technology Department are also recommended to offset this expense. The impact to the General Fund in FY 2022 is $79,004; other funds $120,996. A detailed list of impacts by department and fund can be found in Attachment A, Exhibit 4. Fund Balance Adjustment to Fund Balance $ This action adjusts the fund balance to offset adjustments recommended in this report. PRINTING & MAILING FUND (683) SUBTOTAL $ $ 712 29 DocuSign Envelope ID: 7AC1E5F8-5969-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 Department CITY OF PALO ALTO Revenues Expenses Adjustment Adjustment SPECIAL REVENUE FUNDS PARKS IMPACT FEE FUND (210) Community Transfer to the Capital Improvement Fund Services This action reappropriates funding for a transfer to the Capital Improvement Fund for work on the Park Restroom Installation Project (PG -19000). This work was unable to be completed in FY 2021, so the funding will be transferred when the work is completed in FY 2022. Fund Balance Ending Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. $ 6,561 $ (6,561) PARKS IMPACT FEE FUND (210) SUBTOTAL $ $ GAS TAX FUND (231) Non- State Gas Tax Funding Adjustment/Transfer to the Capital Departmental Improvement Fund The City received an updated Gas Tax revenue estimate for FY 2022 that is $132,214 lower than the state projection used in the FY 2022 Proposed Budget. This revenue is generated by state collections of fuel taxes and vehicle registration fees and distributed to local jurisdictions to fund road rehabilitation and maintenance work on local streets and roads. This type of work is budgeted in the ongoing Streets Maintenance Capital Project (PE -86070) in the Capital Improvement Fund. Staff recommends a reduction of $132,214 in Gas Tax Revenue in the Gas Tax Fund offset by a $132,214 reduction in funding for the Streets Maintenance Capital Project (PE -86070) in the Capital Improvement Fund. $ (132,214) $ (132,214) GAS TAX FUND (231) SUBTOTAL $ (132,214) $ (132,214) 30 DocuSign Envelope ID: 7AC1E5F8-5969-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 Department CITY OF PALO ALTO Revenues Expenses Adjustment Adjustment SPECIAL REVENUE FUNDS COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) Planning & FY 2021-22 CDBG Grant Funding/Program Allocation Development Consistent with the staff recommendation at the May 25 meeting, Services this net -neutral action aligns the FY 2022 CDBG allocation with revised estimates from the department of Housing and Urban Development (HUD). On May 4, 2021, the City Council approved the FY 2021-22 CDBG annual action plan (CMR 12014). On May 13, 2021, HUD informed the City that they discovered an error in the formula calculations for the CDBG program and revised Palo Alto's annual allocation from $528,961 to $536,756, an increase of $7,795. This funding is recommended to be allocated to the Rebuilding Together Peninsula Safe at Home project, which focuses on critical health and safety related home repair needs for low-income Palo Alto homeowners. $ 7,795 $ 7,795 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) SUBTOTAL $ 7,795 $ 7,795 UNIVERSITY AVENUE PARKING PERMITS FUND (236) Office of Transportation Management Authority (TMA) $ $ (200,000) Transportation Consistent with City Council recommendation at the May 17 meeting, this one-time action reduces the funding to the TMA to $150,000 in FY 2022. The decrease in funding may impact the level of support the TMA can provide to low-income workers and may reduce the number of workers the TMA programs could serve. Office of Transfer to Capital Improvement Fund $ $ 72,400 Transportation This action reappropriates funding for a transfer to the Capital Improvement Fund for work on the University Avenue Parking Improvements capital project (PF-14003). This work was unable to be completed in FY 2021, so the funding will be transferred when the work is completed in FY 2022. Fund Balance Ending Fund Balance $ 127,600 This action adjusts the fund balance to offset the actions recommended in this report. UNIVERSITY AVENUE PARKING PERMITS FUND (236) SUBTOTAL $ 31 DocuSign Envelope ID: 7AC1 E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 2 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED BUDGET Department Revenues Expenses Adjustment Adjustment SPECIAL REVENUE FUNDS STANFORD UNIVERSITY MEDICAL CENTER (SUMO) FUND (260) Non- Transfer to the General Fund/HSRAP Funding $ $ 50,000 Departmental Consistent with the Finance Committee recommendation approved on May 25, 2021 this one-time action increases the transfer to the General Fund from the Stanford University Medical Center (SUMC) Fund to provide additional funding for Human Service Resource Allocation Process (HSRAP). The total increase in funding to HSRAP in FY 2022 is $200,000; $50,000 from the SUMC Fund and $150,000 from the General Fund. Non- Transfer to the Capital Improvement Fund for the Charleston $ - $ 1,200,000 Departmental Arastradero Corridor Project, Phase 4 Consistent with the Finance Committee recommendation on May 11 and City Council direction on May 17, this action increases the transfer from the SUMC Fund (Community Health and Safety) by $1.2 million in FY 2022 to support Phase Three of the Charleston Arastradero capital Project (PE -13011). Additional funding will come from the Bicycle and Pedestrian Plan (PL -04010) capital improvement project ($1.5 million) and from various street maintenance projects ($300,000). Non- Transfer to the Capital Improvement Fund for the Bicycle and $ Departmental Pedestrian Transportation Plan Consistent with the Finance Committee recommendation on May 11 and City Council direction on May 17, this action decreases the transfer from the SUMC Fund (Climate Change and Sustainable Communities) by $2.0 million in FY 2022 for the Bicycle and Pedestrian Plan capital Project (PL -04010). Due to staff constraints, work will be done to complete Phase Three of the Charleston Arastradero capital Project (PE -13011) in FY 2022, so work on PL - 04010 will be programmed in FY 2023, along with the transfer from the SUMC Fund. Fund Balance Ending Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. - $ (1,986,696) 736,696 STANFORD UNIVERSITY MEDICAL CENTER (SUMC) FUND (260) SUBTOTAL $ 32 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 3 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED CAPITAL IMPROVEMENT PROGRAM FY 2022 Funding: Project Project Proposed Capital Title Number Budget Document FY 2022 Funding Adjustment CAPITAL IMPROVEMENT FUND Americans With Disabilities Act Compliance PF-93009 $ 832,326 $ (64,550) $ 767,776 Animal Shelter Renovation PE -19002 $ - $ 1,196,195 $ 1,196,195 Baylands Boardwalk Improvements PE -14018 $ - $ 8,630 $ 8,630 Bicycle and Pedestrian Transportation Plan Implementation PL -04010 $ 1,858,633 $ (1,327,991) $ 530,642 Boulware Park Improvements (merged with Birch Street Project PE -19003) PE -17005 $ 3,865,693 $ (65,050) $ 3,800,643 Building Systems Improvements PF-01003 $ 467,054 $ 558,037 $ 1,025,091 California Avenue District Gateway Signs PE -17004 $ - $ 141,238 $ 141,238 Cameron Park Improvements PG -14002 $ - $ 160,000 $ 160,000 Capital Improvement Fund Administration AS -10000 $ 1,439,507 $ (400,000) $ 1,039,507 Charleston/Arastradero Corridor Project PE -13011 $ 4,600,000 $ 3,400,000 $ 8,000,000 City Bridge Improvements PE -20001 $ 143,400 $ 5,630 $ 149,030 Civic Center Electrical Upgrade & EV Charger Installation PE -17010 $ 432,259 $ 82,452 $ 514,711 Civic Center Waterproofing Study and Repairs PE -15020 $ - $ 561,856 $ 561,856 Facility Interior Finishes Replacement PF-02022 $ 472,100 $ 228,000 $ 700,100 Fire Station 4 Replacement PE -18004 $ 949,999 $ (100,000) $ 849,999 Foothills Park Boronda Lake Dock Replacement OS -18000 $ - $ 210,000 $ 210,000 Magical Bridge Playground Rubber and Synthetic Turf Resurfacing PE -21003 $ 487,550 $ 367,750 $ 855,300 Municipal Service Center A, B, & C Roof Replacement PF-17000 $ - $ 168,533 $ 168,533 Municipal Service Center Lighting, Mechanical, and Electrical Improvements PF-16006 $ 6,382,994 $ 115,632 $ 6,498,626 New California Avenue Area Parking Garage PE -18000 $ - $ 1,010,336 $ 1,010,336 New Downtown Parking Garage PE -15007 $ - $ 10,600 $ 10,600 New Public Safety Building PE -15001 $ 3,400,000 $ 5,636,041 $ 9,036,041 Newell Road/San Francisquito Creek Bridge Replacement PE -12011 $ 136,100 $ 320,088 $ 456,188 Performing Arts Venues Seat Replacement AC -18000 $ 381,200 $ (10,000) $ 371,200 Ramos Park Improvements PG -14000 $ - $ 137,000 $ 137,000 Roofing Replacement PF-00006 $ 692,800 $ 20,494 $ 713,294 Safe Routes To School PL -00026 $ 931,128 $ 210,000 $ 1,141,128 Street Maintenance PE -86070 $ 2,936,900 $ (132,214) $ 2,804,686 Transportation and Parking Improvements PL -12000 $ 510,400 $ 75,000 $ 585,400 University Avenue Parking Improvements PF-14003 $ 125,200 $ 72,400 $ 197,600 Water, Gas, Wastewater Office Remodel PE -19001 $ 777,904 $ (99,781) $ 678,123 CUBBERLEY INFRASTRUCTURE FUND Cubberley Field Restroom CB -17002 $ 334,787 $ (16,063) $ 318,724 Cubberley Repairs CB -17001 $ 206,600 $ 136,747 $ 343,347 Cubberley Roof Replacements CB -16002 $ 686,500 $ 436,520 $ 1,123,020 Airport Apron Reconstruction AIRPORT FUND AP -16000 $ 50,800 $ 441,940 $ 492,740 Airport Facilities Electrical Improvements AP -20000 $ - $ 75,795 $ 75,795 ELECTRIC FUND 115 kV Electric Intertie EL -06001 313$ 127,481 51,000 178,481 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 3 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED CAPITAL IMPROVEMENT PROGRAM UricIn Capacitor Bank Installation EL -16002 $ 400,000 $ 145,616 $ 545,616 Colorado Power Station Equipment Upgrades EL -19001 $ 200,000 $ 640,003 $ 840,003 Colorado Substation Site Improvements EL -19002 $ 150,000 $ 588,570 $ 738,570 Electric Utility Geographic Information System EL -02011 $ 270,000 $ 222,100 $ 492,100 Facility Relocation for Caltrain Modernization Project EL -17007 $ - $ 556,286 $ 556,286 Foothills Rebuild (Fire Mitigation) EL -21001 $ 2,000,000 $ 1,878,351 $ 3,878,351 Inter -substation Line Protection Relay EL -17005 $ 150,000 $ 281,483 $ 431,483 Rebuild Underground District 15 EL -11003 $ 1,225,000 $ 25,000 $ 1,250,000 Rebuild Underground District 16 EL -13003 $ 350,000 $ 7,995 $ 357,995 Rebuild Underground District 24 EL -10006 $ - $ 526,294 $ 526,294 Rebuild Underground District 26 EL -16000 $ 255,000 $ 26,890 $ 281,890 Reconfigure Quarry Feeders EL -14005 $ 150,000 $ 10,306 $ 160,306 SCADA System Upgrades EL -02010 $ 400,000 $ 5,675 $ 405,675 Substation 60kV Breaker Replacement EL -17002 $ 900,000 $ 608,066 $ 1,508,066 Substation Physical Security EL -16003 $ 300,000 $ 1,153,447 $ 1,453,447 Underground District 46 - Charleston/EI Camino Real EL -12001 $ - $ 235,000 $ 235,000 Wood Pole Replacement EL -19004 $ 250,000 $ 1,489,927 $ 1,739,927 Gas Main Replacement - Project 23 GS -13001 $ 1,140,697 $ (679,701) $ 460,996 Gas Meters and Regulators GS -80019 $ 1,000,000 $ (500,000) $ 500,000 Corporation Way System Upgrades and Pump Station SD -21000 $ 3,354,594 $ (12,135) $ 3,342,459 Storm Drainage System Replacement And Rehabilitation SD -06101 $ 1,881,757 $ (868,694) $ 1,013,063 Trash Capture Device Installation SD -22002 $ - $ 613,000 $ 613,000 West Bayshore Road Trunk Line Improvements SD -23000 $ - $ 5,796 $ 5,796 THIVOLCLY AMID Development Center Blueprint Technology Enhancements TE-12001 $ 223,641 $ 68,587 $ 292,228 Public Safety Records Management System (RMS) Replacement TE-21000 $ 649,181 $ (309,781) $ 339,400 Radio Infrastructure Replacement TE-05000 $ 199,137 $ 60,787 $ 259,924 VEHICLE REPLACEMENT FUND Scheduled Vehicle and Equipment Replacement - Fiscal Year 2020 VR-20000 $ 1,523,803 $ (10,167) $ 1,513,636 Scheduled Vehicle and Equipment Replacement - Fiscal Year 2021 VR-21000 $ 660,165 $ 33,037 $ 693,202 WASTEWATER COLLECTION FUND Wastewater Collection System Rehabilitation/Augmentation WC -16001 $ - Project 29 $ 350,000 $ 350,000 Wastewater General Equipment and Tools WC -13002 3.$ 50,000 $ 70,000 $ 120,000 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 3 CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 PROPOSED CAPITAL IMPROVEMENT PROGRAM Project Title FY 2022 Funding: Project Proposed Capital Number Budget Document FY 2022 Funding Adjustment Funding T'T•LW•STEW•TE• C•LLECTI.NFUy g , •,•• .- 50,000 $ 420,000 $ WASTEWATER TREATMENT FUND New Laboratory And Environmental Services Building WQ-14002 $ 2,642,234 $ (7,362) $ 2,634,872 Plant Repair, Retrofit, and Equipment Replacement WQ-19002 $ 8,791,959 $ (21,548) $ 8,770,411 ROJECT ADJUSTMENTS $ WATER FUND Water Main Replacement - Project 28 WS -14001 $ 11,000,000 $ (90,000) $ 10,910,000 Water Regulation Station Improvements WS -07000 $ - $ 645,830 $ 645,830 35 DocuSign Envelope ID: 7AC1 E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 4: Technology CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGET 1 GENE'ALFUNI General Fund Administrative Services Information Technology Adjustment $ - $ 3,865 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund City Attorney Information Technology Adjustment $ - $ 1,611 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund City Auditor Information Technology Adjustment $ - $ 383 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund City Clerk Information Technology Adjustment $ - $ 576 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund City Council Information Technology Adjustment $ - $ 194 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund City Manager Information Technology Adjustment $ - $ 1,461 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Community Services Information Technology Adjustment $ - $ 13,108 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Fire Information Technology Adjustment $ - $ 15,532 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Human Resources Information Technology Adjustment $ - $ 1,662 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Library Information Technology Adjustment $ - $ 3,892 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Office of Emergency Services Information Technology Adjustment $ - $ 627 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Office of Transportation Information Technology Adjustment $ - $ 880 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Planning and Development Services Information Technology Adjustment $ - $ 8,035 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Police Information Technology Adjustment $ - $ 18,660 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. General Fund Public Works Information Technology Adjustment $ - $ 8,517 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. ffli AL. GENERAL FUND SUBTOTAL $ $ 79,004 •; IL`I•x� Airport Enterprise Fund 530 Information Technology Adjustment $ - $ 924 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. Refuse Fund 525 Information Technology Adjustment $ - $ 5,829 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. 36 DocuSign Envelope ID: 7AC1 E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 4: Technology CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2022 BUDGE 1 Fund Department/ Fund Title Revenue Expense Comments Stormwater Management Fund 528 Information Technology Adjustment $ - $ 4,562 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. Utilities Administration Fund 521 Information Technology Adjustment $ - $ 75,425 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. Wastewater Treatment Fund 526 Information Technology Adjustment $ - $ 27,608 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. ENTERPRISE FUNDS SUBTOTAL $ - $ 114,349 INTERNAL SERVICE FUNDS Printing & Mailing Services Fund 683 Information Technology Adjustment $ - $ 712 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. Vehicle Replacement & Maintenance Fund 681 Information Technology Adjustment $ - $ 5,935 Adjustment to allocated charges for technology services to align with service restorations in FY 2022. INTERNAL SERVICE FUNDS SUBTOTAL $ - $ 6,647 37 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 General Fund 0 ORGANI TIO Table of Organization FY 2019 Actuals FY 2020 Actuals FY 2021 Adopted Budgeta FY 2022 Proposed Budget FY 2022 Change FTE FY 2022 Change % Administrative Services Account Specialist Account Specialist (Freeze) Account Specialist -Lead Accountant Administrative Assistant Administrative Associate II 4.63 4.63 3.13 4.13 1.50 3.45 3.45 3.45 3.45 3.00 3.00 3.00 2.00 (1.00) 1.00 1.00 1.00 1.00 1.00 1.00 0.50 0.50 1.00 (1.50) Administrative Associate II (Freeze) - - 0.50 - (0.50) Administrative Associate III 1.00 1.00 1.00 1.00 -% Assistant Director Administrative Services 1.65 1.65 1.65 1.65 -% Buyer 1.00 1.00 1.00 2.00 1.00 100.0% Chief Procurement Officer 1.00 1.00 1.00 1.00 -% Contracts Administrator 2.70 2.70 2.30 1.70 (0.60) (26.0)% Contracts Administrator (Freeze) - - 0.40 - (0.40) (100.0)% Director Administrative Services/CFO 0.80 0.80 0.80 0.80 -% Director Office of Management and Budget 1.00 1.00 1.00 1.00 -% Director Office of Management and Budget - - 1.00 - (1.00) (100.0)% (Freeze) Management Analyst 1.00 2.00 2.00 2.00 -% Manager Budget 2.00 2.00 2.00 2.00 - -% Manager Real Property 1.00 1.00 1.00 1.00 -% Manager Revenue Collections 0.62 0.62 0.62 0.62 -% Manager Treasury, Debt & Investments 0.60 0.60 0.60 0.60 - -% Manager, Finance 1.00 1.00 1.00 1.00 -% Payroll Analyst 2.00 2.00 2.00 2.00 -% Performance Auditor II (Freeze) - - 1.00 - (1.00) (100.0)% Senior Accountant 3.00 3.00 3.00 3.00 -% Senior Buyer 1.00 1.00 1.00 1.00 -% 31.9% (100.0)% -% (33.3)% CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 411 38 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization Senior Management Analyst Storekeeper Storekeeper -Lead Warehouse Supervisor Total Administrative Services FY 2019 Actuals 2.30 1.00 0.20 0.20 38.15 FY 2020 Actuals 2.30 1.00 0.20 0.20 39.15 FY 2021 Adopted Budgeta 2.30 1.00 0.20 0.20 40.15 FY 2022 Proposed Budget 2.30 1.00 0.20 0.20 37.15 FY 2022 Change FTE (3.00) FY 2022 Change % - % - % - % - % (7.5) % City Attorney Assistant City Attorney Chief Assistant City Attorney City Attorney Claims Investigator Deputy City Attorney Legal Fellow Legal Fellow (Freeze) Secretary to City Attorney Senior Management Analyst Total City Attorney 3.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 10.00 3.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 10.00 3.00 1.00 1.00 1.00 1.00 0.50 0.50 1.00 1.00 10.00 3.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 10.00 0.50 (0.50) - % - % - % - % - OA City Auditor City Auditor Performance Auditor I Performance Auditor 11 Senior Performance Auditor Total City Auditor 1.00 1.00 1.00 1.00 4.00 1.00 2.00 1.00 4.00 1.00 2.00 3.00 (1.00) (2.00) (3.00) (100.0) % -% - % (100.0)% (100.0) % City Clerk Administrative Associate II I Assistant City Clerk City Clerk Deputy City Clerk Total City Clerk 2.00 1.00 1.00 1.00 5.00 2.00 1.00 1.00 1.00 5.00 2.00 1.00 1.00 1.00 5.00 2.00 1.00 1.00 1.00 5.00 _OA City Manager Administrative Assistant Administrative Associate III Assistant City Manager Assistant City Manager/Utilities General Manager 1.00 1.00 0.25 2.00 1.00 2.00 1.00 2.00 1.00 412 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 39 DocuSign Envelope ID: 7AC1 E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization FY 2021 FY 2022 FY 2019 FY 2020 Adopted Proposed FY 2022 Actuals Actuals Budgeta Budget Change FTE FY 2022 Change % Assistant to the City Manager Assistant to the City Manager (Freeze) Chief Communications Officer Chief Sustainability Officer City Manager Deputy City Manager Executive Assistant to the City Manager Management Analyst Manager Communications Total City Manager 2.00 1.00 1.00 1.00 2.00 1.00 0.75 1.00 12.00 2.00 1.00 1.00 1.00 1.00 0.75 1.00 10.75 1.00 1.00 1.00 1.00 1.00 1.00 1.00 10.00 1.00 1.00 1.00 1.00 1.00 1.00 9.00 -% (1.00) (100.0)% (1.00) (10.0)% Community Services Administrative Assistant Administrative Associate III Administrative Associate III (Freeze) Assistant Director Community Services Assistant Director Community Services (Freeze) Building Serviceperson Building Serviceperson-Lead Coordinator Recreation Programs Director Community Services Division Manager Open Space, Parks and Golf Heavy Equipment Operator Inspector, Field Services Junior Museum & Zoo Educator Junior Museum & Zoo Educator (Freeze) Management Analyst Management Assistant Manager Community Services Manager Community Services (Freeze) Manager Community Services Senior Program Manager Human Services Park Maintenance Person Park Maintenance -Lead Park Ranger 1.00 1.00 1.00 1.00 1.00 1.00 1.00 (1.00) 2.00 2.00 1.00 1.00 - -% - - 1.00 - (1.00) (100.0)% 1.25 1.25 1.00 1.00 - -% 0.60 0.60 0.60 0.60 - -% 3.00 4.00 4.00 4.00 - -% 1.00 1.00 1.00 1.00 - -% 1.00 1.00 - - -% 0.07 0.07 0.07 - (0.07) (100.0)% 2.00 2.00 2.00 2.00 - -% 3.60 3.60 3.25 3.25 - -% - - 0.35 ((0.35) (100.0)% 1.00 1.00 1.00 1.00 - -% 1.00 1.00 1.00 1.00 - -% 5.00 5.00 4.00 5.00 1.00 25.0% - - 1.00 - (1.00) (100.0)% 4.00 4.00 4.00 4.00 - -% 1.00 1.00 1.00 1.00 - -% 6.00 6.00 6.00 6.00 - -% 1.00 1.00 1.00 1.00 - -% 5.00 5.00 5.00 5.00 - -% TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 413 40 DocuSign Envelope ID: 7AC1 E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization 1 Parks/Golf Crew -Lead Producer Arts/Science Program Producer Arts/Science Program (Freeze) Program Assistant I Program Assistant I (Freeze) Program Assistant II Project Manager Senior Management Analyst Sprinkler System Representative Superintendent Community Services Superintendent Recreation Superintendent Recreation (Freeze) Theater Specialist WGW Heavy Equipment Operator Total Community Services FY 2019 Actuals 2.00 11.00 FY 2020 Actuals 2.00 11.00 8.00 8.00 4.00 0.10 1.00 4.00 2.00 1.00 2.00 75.62 3.00 0.10 1.00 4.00 2.00 1.00 FY 2021 Adopted Budgeta 2.00 10.25 1.75 3.00 4.00 4.00 0.10 1.00 4.00 2.00 1.00 2.00 2.00 75.62 75.37 FY 2022 Proposed Budget 2.00 11.00 3.00 4.00 0.10 1.00 4.00 2.00 2.00 0.07 67.02 (1.00) (100.0)% (8.35) FY 2022 Change FTE FY 2022 Change % -% 0.75 (12.0)% (1.75) (100.0)% -% 0.07 -% (11.1)% Fire 40 -Hour Training Battalion Chief 1.00 40 -Hour Training Captain 1.00 1.00 - 1.00 1.00 100.0% 40 -Hour Training Captain (Freeze) - 1.00 - (1.00) (100.0)% Administrative Assistant 1.00 1.00 1.00 1.00 - -% Administrative Associate 11 2.20 2.20 1.20 2.20 1.00 83.3% Administrative Associate II (Freeze) - - 1.00 - (1.00) (100.0)% Battalion Chief 3.00 3.00 3.00 3.00 - -% Business Analyst 0.80 0.80 0.80 0.80 - -% Deputy Chief/Fire Marshal 0.05 0.05 0.05 0.05 - -% Deputy Director Technical Services Division 0.20 0.20 - - - -% Deputy Director Technical Services Division (Freeze) Deputy Fire Chief 2.00 2.00 2.00 1.00 (1.00) (50.0)% Emergency Medical Service Director 1.00 1.00 1.00 1.00 - -% Emergency Medical Services Data Specialist 1.00 1.00 1.00 1.00 -% Fire Apparatus Operator 26.00 26.00 26.00 26.00 -% Fire Captain 21.00 21.00 21.00 20.00 (1.00) (4.8)% Fire Chief 1.00 1.00 1.00 1.00 -% Fire Fighter 34.00 34.00 29.00 29.00 - -% 1.00 1.00 0.20 1.00 (0.20) -% (100.0)% 414 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 41 DocuSign Envelope ID: 7AC1 E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization Fire Fighter (Freeze) Fire Inspector Fire Inspector (Freeze) Geographic Information System Specialist Hazardous Materials Inspector Senior Management Analyst Total Fire FY 2019 Actuals 0.80 0.50 0.30 1.00 97.85 FY 2020 Actuals 0.80 0.50 0.30 1.00 97.85 FY 2021 Adopted Budgeta 5.00 0.40 0.40 0.50 0.30 1.00 97.85 FY 2022 Proposed Budget 0.40 0.50 0.30 1.00 90.25 FY 2022 Change FTE (5.00) FY 2022 Change % (100.0)% -% (0.40) (100.0)% (7.60) - % - % - % (7.8)% Human Resources Assistant Director Human Resources Director Human Resources/CPO Human Resources Representative Human Resources Representative (Freeze) Human Resources Technician Human Resources Technician (Freeze) Manager Employee Benefits Manager Employee Relations Senior Human Resources Administrator Senior Management Analyst Total Human Resources 1.00 1.00 3.00 4.00 1.00 1.00 3.00 2.00 16.00 1.00 1.00 3.00 4.00 1.00 1.00 3.00 2.00 16.00 1.00 1.00 2.50 0.50 3.50 0.50 1.00 1.00 3.00 2.00 16.00 1.00 1.00 2.00 3.00 1.00 1.00 3.00 2.00 14.00 -% -% (0.50) (20.0)% (0.50) (100.0)% (0.50) (14.0)% (0.50) (100.0)% - -% -% (2.00) -% - % (12.5) % Library Administrative Associate III Administrative Associate III (Freeze) Assistant Director Library Services Assistant Director Library Services (Freeze) Business Analyst Coordinator Library Programs 1.00 1.00 1.00 1.00 Director Libraries 1.00 Division Head Library Services 1.00 Librarian 7.00 Library Associate 7.00 Library Associate (Freeze) Library Specialist 11.50 Library Specialist (Freeze) Management Analyst 1.00 1.00 1.00 1.00 - - - 1.00 1.00 1.00 1.00 - -% 1.00 1.00 1.00 - -% 1.00 1.00 1.00 - -% 1.00 1.00 1.00 - -% 6.00 6.00 6.00 - -% 7.00 6.00 6.00 - -% 1.00 (1.00) (100.0)% 11.50 10.50 10.50 - -% 1.00 (1.00) (100.0)% 1.00 1.00 1.00 -% -% (1.00) (100.0)% -% (1.00) (100.0)% TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 415 42 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization Manager Library Services Senior Librarian Senior Librarian (Freeze) Supervising Librarian Total Library FY 2019 Actuals 4.00 9.00 2.00 47.50 FY 2020 Actuals 3.00 8.00 4.00 46.50 FY 2021 FY 2022 Adopted Proposed Budgeta Budget 3.00 6.00 2.00 4.00 46.50 3.00 6.00 4.00 40.50 (6.00) FY 2022 Change FTE FY 2022 Change % -% -% (2.00) (100.0)% - % (12.9)% Office of Emergency Services Director Office of Emergency Services Office of Emergency Services Coordinator Program Assistant 11 Program Assistant 11 (Freeze) Total Office of Emergency Services 1.00 1.00 1.00 3.00 1.00 1.00 1.00 3.00 1.00 1.00 1.00 3.00 1.00 1.00 2.00 (1.00) - % -% - % (1.00) (100.0)% (33.3) % Office of Transportationb Administrative Assistant Administrative Associate 111 Associate Engineer Associate Planner Chief Transportation Official Coordinator Transportation Systems Management Management Analyst 0.02 Parking Operations -Lead Project Engineer Senior Engineer Senior Planner Traffic Engineering -Lead Transportation Planning Manager Total Office of Transportation 0.30 0.65 0.24 0.55 0.74 0.10 0.50 0.28 0.65 0.36 4.39 0.50 0.50 0.60 0.10 20.0% - % 0.30 0.30 0.35 0.05 16.7% 0.30 0.45 0.40 (0.05) (11.1)% 0.70 0.70 0.70 - -% 1.25 1.25 0.65 (0.60) (48.0)% 0.50 0.45 0.20 0.50 0.35 1.15 6.20 0.50 0.50 -% - 0.05 0.05 -% 0.45 0.25 (0.20) (44.4)% 0.20 0.20 -% 0.50 0.15 (0.35) (70.0)% 0.35 0.35 1.15 1.00 (0.15) (13.0)% 6.35 5.20 (1.15) - % (18.1)% Planning and Development Services Administrative Assistant Administrative Associate 1 Administrative Associate 11 Administrative Associate 1 1 1 Assistant Chief Building Official Assistant Director PCE 2.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 2.80 2.80 2.80 2.80 3.29 4.00 4.00 3.00 (1.00) (25.0)% 1.00 1.00 1.00 1.00 - -% 1.00 1.00 1.00 1.00 -% -% - % - % 416 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 43 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization i Associate Engineer Associate Planner Building Inspector Specialist Building/Planning Technician Building/Planning Technician (Freeze) Business Analyst Chief Building Official Chief Planning Official Chief Transportation Official Code Enforcement Officer Code Enforcement Officer (Freeze) Code Enforcement -Lead Deputy Chief/Fire Marshal Development Project Coordinator II Development Project Coordinator 1 11 Development Services Director Director Planning/Community Environment Engineer Engineering Technician 1 1 1 Fire Inspector Fire Inspector (Freeze) Hazardous Materials Inspector Industrial Waste Inspector Industrial Waste Investigator Inspector, Field Services Landscape Architect Park Planner Management Analyst Manager Development Center Manager Environmental Control Program Manager Planning Manager Urban Forestry Planner Planning Division Manager Principal Management Analyst Principal Planner FY 2019 Actuals 0.02 3.03 4.00 3.00 1.00 1.00 1.00 0.09 2.00 1.00 0.80 2.00 3.00 1.00 1.00 0.64 1.78 3.20 FY 2020 Actuals 0.22 3.15 4.00 3.00 FY 2021 Adopted Budgeta 0.20 3.00 6.00 2.00 1.00 FY 2022 Proposed Budget FY 2022 Change FTE (0.20) 3.25 0.25 6.00 -% 2.00 -% (1.00) (100.0)% FY 2022 Change % (100.0) % 8.3% - % 1.00 1.00 1.00 -% 1.00 1.00 1.00 - -% - -% 2.00 -% - 2.00 - (2.00) (100.0)% 1.00 1.00 1.00 -% 0.80 0.80 0.80 -% 2.00 2.00 2.00 - -% 3.00 3.00 3.00 -% - % 1.00 1.00 1.00 - -% 0.64 0.52 0.52 -% 1.78 1.50 1.50 -% 3.20 1.60 1.60 - -% 1.60 (1.60) (100.0)% 1.60 1.60 1.60 1.60 -% 0.01 0.01 - - - -% 0.35 0.35 0.35 0.35 -% 0.68 0.68 0.68 0.68 -% 0.50 0.50 0.50 0.50 - -% 1.79 0.01 - - -% 1.00 -% 0.10 0.10 - - - -% 3.00 5.00 4.00 4.00 -% 0.04 0.04 -% 4.00 4.00 4.00 4.00 - -% 1.00 - - -% 1.00 - -% 1.00 2.00 1.00 1.00 - -% TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 417 44 DocuSign Envelope ID: 7AC1 E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization FY 2021 FY 2022 FY 2019 FY 2020 Adopted Proposed FY 2022 Actuals Actuals Budgeta Budget Change FTE FY 2022 Change % Principal Planner (Freeze) Program Assistant Program Assistant I (Freeze) Project Engineer Senior Business Analyst Senior Engineer Senior Industrial Waste Investigator Senior Management Analyst Senior Planner Senior Planner (Freeze) Supervisor Inspection and Surveying Traffic Engineering -Lead Transportation Planning Manager Total Planning and Development Services [Police Administrative Assistant Administrative Associate II Administrative Associate II (Freeze) Animal Control Officer Animal Control Officer (Freeze) Animal Control Officer -Lead Animal Services Specialist II Assistant Police Chief Business Analyst Code Enforcement Officer Communications Manager Communications Manager (Freeze) Communications Technician Communications Technician (Freeze) Community Service Officer Community Service Officer (Freeze) Court Liaison Officer Crime Analyst Deputy Director Technical Services Division 1.00 1.00 1.00 0.33 0.13 0.10 (1.00) (100.0)% -% (1.00) (100.0)% (0.10) (100.0)% - 1.00 1.00 1.00 - -% 0.46 0.46 0.40 0.40 - -% 0.01 0.01 - - -% 1.88 2.00 2.00 2.00 - -% 3.60 3.60 2.60 3.65 1.05 40.0% - 1.00 - (1.00) (100.0)% 0.27 0.27 0.25 0.25 - -% 0.10 0.10 0.05 (0.05) (50.0)% 0.05 - 0.05 0.05 -% 62.32 62.45 61.60 54.00 (7.60) (12.3)% 1.00 3.00 3.00 1.00 2.00 1.00 1.20 1.00 1.00 1.00 7.50 1.00 1.00 0.80 1.00 3.00 3.00 1.00 1.00 1.20 1.00 1.00 1.00 7.50 1.00 1.00 0.80 1.00 1.00 - -% 2.00 2.00 - -% 1.00 - (1.00) (100.0)% 2.00 2.00 - -% 1.00 - (1.00) (100.0)% 1.00 1.00 -% - -% 1.00 1.20 1.00 1.00 1.00 5.63 1.87 1.00 1.00 1.00 1.20 1.00 - % - % - % - % (1.00) (100.0)% -% (1.00) (100.0)% 5.63 - -% (1.87) (100.0)% 1.00 - -% 1.00 - -% -% 418 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 45 DocuSign Envelope ID: 7AC1 E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization Deputy Director Technical Services Division (Freeze) FY 2019 Actuals FY 2020 Actuals FY 2021 Adopted Budgeta 0.80 FY 2022 Proposed Budget FY 2022 Change FTE (0.80) FY 2022 Change % (100.0)% Geographic Information System Specialist 0.50 0.50 0.50 0.50 - -% Police Agent 19.00 19.00 19.00 19.00 - -% Police Captain 2.00 2.00 2.00 2.00 - -% Police Chief 1.00 1.00 1.00 1.00 - -% Police Lieutenant 5.00 5.00 4.00 4.00 -% Police Lieutenant (Freeze) 1.00 - (1.00) (100.0)% Police Officer 50.00 50.00 39.00 39.00 - -% Police Officer (Freeze) 11.00 - (11.00) (100.0)% Police Records Specialist II 6.00 6.00 6.00 6.00 - -% Police Records Specialist -Lead 1.00 1.00 1.00 1.00 - -% Police Sergeant 14.00 14.00 14.00 14.00 - -% Program Assistant II 1.00 1.00 1.00 1.00 - -% Property Evidence Technician 2.00 2.00 2.00 2.00 - -% Public Safety Communications Manager 1.00 1.00 - - -% Public Safety Communications Manager - 1.00 - (1.00) (100.0)% (Freeze) Public Safety Dispatcher 16.00 16.00 12.00 12.00 - -% Public Safety Dispatcher (Freeze) - 4.00 - (4.00) (100.0)% Public Safety Dispatcher -Lead 4.00 4.00 4.00 4.00 - -% Public Safety Program Manager 2.00 2.00 2.00 1.00 (1.00) (50.0)% Senior Management Analyst 1.00 1.00 1.00 1.00 - -% Superintendent Animal Services 1.00 - - - - -% Veterinarian 1.00 Veterinarian Technician 2.00 Total Police 155.00 149.00 149.00 124.33 (24.67) -% - % (16.6)% Public Works Administrative Assistant Administrative Associate I Administrative Associate II Administrative Associate III Assistant Director Public Works Associate Engineer Building Serviceperson-Lead 1.00 0.60 2.65 0.01 0.87 0.30 1.00 1.00 0.10 2.65 0.01 0.73 1.00 1.00 0.10 2.65 0.01 0.73 1.00 0.50 (0.50) (50.0)% (0.10) (100.0)% 2.65 - -% (0.01) (100.0)% 0.73 1.00 - % - % -% TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 419 46 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization Cement Finisher Cement Finisher -Lead Coordinator Public Works Projects Director Public Works/City Engineer Electrician Engineer Engineering Technician I I I Equipment Operator Facilities Carpenter Facilities Maintenance -Lead Facilities Painter Facilities Technician Heavy Equipment Operator Heavy Equipment Operator -Lead Inspector, Field Services Landscape Architect Park Planner Management Analyst Manager Facilities Manager Maintenance Operations Manager Urban Forestry Manager Watershed Protection Project Engineer Project Manager Project Manager (Freeze) Senior Engineer Senior Management Analyst Senior Project Manager Supervisor Inspection and Surveying Surveyor, Public Works Traffic Controller Maintainer 1 Traffic Controller Maintainer 11 Tree Maintenance Person Tree Trim/Line Clear Tree Trim/Line Clear -Lead WGW Heavy Equipment Operator FY 2019 Actuals 2.00 0.26 1.50 1.00 0.80 0.66 1.47 2.46 1.00 1.85 1.75 4.05 2.33 0.85 0.11 0.60 0.70 0.90 1.20 0.96 0.05 0.50 2.65 0.79 1.11 0.10 0.10 0.33 1.94 2.00 1.00 7.00 1.00 FY 2020 Actuals 2.00 0.26 1.50 1.00 0.80 0.36 1.47 2.46 1.00 1.85 1.75 4.05 2.33 0.85 0.11 0.60 0.70 0.90 1.20 0.96 0.05 2.65 0.59 0.10 0.33 1.94 2.00 1.00 7.00 1.00 FY 2021 Adopted Budgeta 2.00 0.26 1.50 1.00 0.80 0.48 1.75 2.46 1.00 1.85 1.75 4.05 2.33 0.85 0.11 0.60 1.45 0.90 1.20 1.00 0.05 2.00 0.65 0.60 1.11 0.10 0.33 1.94 2.00 1.00 7.00 1.00 FY 2022 Proposed Budget 2.00 0.26 1.50 1.00 0.80 0.48 1.75 2.46 1.00 1.85 1.75 4.05 2.10 0.85 0.11 0.60 1.45 0.90 1.20 1.00 0.05 2.00 0.60 0.10 0.33 1.94 1.00 1.00 7.00 1.00 0.23 FY 2022 Change FTE (0.23) (0.65) (1.00) 0.23 FY 2022 Change % 420 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 47 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization FY 2021 FY 2022 FY 2019 FY 2020 Adopted Proposed FY 2022 FY 2022 Actuals Actuals Budgeta Budget Change FTE Change % Total Public Works Total General Fund Enterprise Fund 51.45 49.41 50.61 48.35 (2.26) (4.5) % 582.28 574.93 574.43 506.80 (67.63) (11.8)% Public Works Account Specialist Accountant Administrative Associate I Administrative Associate 11 Administrative Associate I I I Assistant Director Public Works Assistant Manager WQCP Associate Engineer Chemist Deputy Chief/Fire Marshal Electrician Electrician -Lead Engineer Engineering Technician I II Environmental Specialist Equipment Operator Facilities Maintenance Lead Facilities Technician Hazardous Materials Inspector Heavy Equipment Operator Heavy Equipment Operator -Lead Industrial Waste Inspector Industrial Waste Investigator Laboratory Technician WQC Landfill Technician Management Analyst Manager Airport Manager Environmental Control Program Manager Laboratory Services Manager Maintenance Operations 0.30 0.30 0.30 - 0.40 0.40 0.40 0.70 0.10 0.10 0.10 2.15 2.15 2.15 2.15 0.10 0.10 0.10 0.20 1.30 1.30 1.30 1.30 2.00 2.00 2.00 2.00 2.99 2.99 3.00 3.00 3.00 3.00 3.00 2.00 0.07 0.07 0.07 0.07 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 0.90 0.90 0.90 0.90 0.25 0.25 0.25 0.25 2.00 2.00 2.00 2.00 0.54 0.54 0.54 0.54 1.00 1.00 1.00 1.00 1.50 1.50 1.50 1.50 0.04 0.04 0.04 0.04 0.90 0.90 0.90 0.90 1.15 1.15 1.15 1.15 2.99 2.99 3.00 3.00 1.15 1.15 1.15 1.15 3.00 3.00 3.00 3.00 1.00 1.00 1.00 1.00 2.30 2.30 2.30 2.30 1.00 1.00 1.00 1.00 4.90 4.90 5.00 5.00 1.00 1.00 1.00 1.00 1.96 1.96 1.96 1.96 (0.30) 0.30 (0.10) 0.10 (1.00) TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 421 48 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization ■ FY 2019 Actuals Manager Solid Waste 1.00 Manager Water Quality Control Plant 1.00 Manager Watershed Protection 0.95 Plant Mechanic 7.00 Program Assistant I 1.00 Program Assistant II 2.00 Project Engineer 1.83 Project Manager 1.35 Senior Accountant 0.30 Senior Buyer 1.00 Senior Chemist 1.00 Senior Engineer 3.76 Senior Industrial Waste Investigator 0.99 Senior Management Analyst Senior Mechanic Senior Operator WQC Senior Technologist Storekeeper Street Maintenance Assistant Street Sweeper Operator Supervisor WQCP Operations Surveyor, Public Works Technologist Traffic Controller Maintainer I WQC Plant Operator II Zero Waste Coordinator Total Public Works 0.21 1.00 6.00 1.00 1.00 1.00 1.63 3.00 0.12 1.00 0.06 16.00 1.00 101.19 FY 2020 Actuals 1.00 1.00 0.95 7.00 1.00 2.00 1.83 1.35 0.30 1.00 1.00 3.76 0.99 0.21 1.00 6.00 1.00 1.00 1.00 1.63 3.00 0.12 1.00 0.06 16.00 1.00 101.19 FY 2021 FY 2022 Adopted Proposed Budgeta Budget 1.00 1.00 0.95 7.00 1.00 2.00 1.83 1.35 0.30 1.00 1.00 3.76 1.00 0.21 1.00 6.00 1.00 1.00 1.00 1.63 3.00 0.12 1.00 0.06 16.00 1.00 101.32 1.00 1.00 0.95 7.00 1.00 2.00 1.83 1.35 0.30 1.00 2.00 3.76 1.00 0.21 1.00 6.00 1.00 1.00 1.00 1.63 3.00 0.12 1.00 0.06 16.00 1.00 101.32 FY 2022 Change FTE FY 2022 Change % -% Utilities Account Specialist Accountant Administrative Assistant Administrative Associate II Assistant City Manager/Utilities General Manager Assistant Director Administrative Services 1.70 0.60 1.00 7.00 0.75 1.70 0.60 1.00 6.00 0.25 0.25 1.70 0.60 1.00 6.00 1.00 1.30 1.00 6.00 0.25 0.25 (0.70) 0.70 (41.2)% 116.7% -% 422 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 49 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization 111 11011116011 FY 2019 Actuals Assistant Director Utilities Customer Support 1.00 Services FY 2020 Actuals 1.00 FY 2021 Adopted Budgeta 1.00 FY 2022 Proposed Budget 1.00 FY 2022 Change FTE FY 2022 Change % -% Assistant Director Utilities Engineering 1.00 1.00 - 1.00 - -% Assistant Director Utilities Engineering (Freeze) 1.00 1.00 1.00 100.0% Assistant Director Utilities Operations 1.00 1.00 1.00 (1.00) (100.0)% Assistant Director Utilities/Resource 1.00 1.00 1.00 1.00 - -% Management Business Analyst 6.00 6.00 5.00 6.00 1.00 20.0% Business Analyst (Freeze) - - 1.00 - (1.00) (100.0)% Cathodic Protection Technician Assistant 1.00 1.00 1.00 1.00 -% Cathodic Technician 1.00 1.00 1.00 1.00 -% Cement Finisher 2.00 2.00 2.00 2.00 - -% Contracts Administrator 0.70 0.70 0.70 0.70 -% Coordinator Utilities Projects 6.00 6.00 6.00 6.00 -% Customer Service Representative 7.00 7.00 7.00 7.00 - -% Customer Service Specialist 2.00 2.00 2.00 2.00 -% Customer Service Specialist -Lead 2.00 2.00 2.00 2.00 -% Deputy Chief/Fire Marshal 0.08 0.08 0.08 0.08 - -% Deputy City Attorney 1.00 1.00 1.00 1.00 -% Director Administrative Services/CFO 0.20 0.20 0.20 0.20 -% Electric Heavy Equipment Operator - - 2.00 2.00 - -% Electric Project Engineer 2.00 4.00 4.00 4.00 -% Electric Underground Inspector 2.00 2.00 2.00 2.00 -% Electric Underground Inspector -Lead 1.00 1.00 1.00 1.00 - -% Electrical Equipment Technician 1.00 1.00 1.00 1.00 -% Electrician Assistant I 3.00 3.00 3.00 3.00 -% Engineer 4.00 4.00 4.00 4.00 - -% Engineering Manager - Electric 1.00 1.00 1.00 1.00 -% Engineering Manager - WGW 1.00 1.00 1.00 1.00 -% Engineering Technician III 3.00 3.00 3.00 3.00 - -% Gas and Water Meter Measurement and 4.00 4.00 4.00 4.00 -% Control Technician Gas and Water Meter Measurement and 1.00 1.00 1.00 1.00 - -% Control Technician - Lead Hazardous Materials Inspector 0.06 0.06 0.06 0.06 -% Heavy Equipment Operator 6.70 6.70 - - -% TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 423 50 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization Heavy Equipment Operator - Install/Repair Human Resources Representative Industrial Waste Investigator Inspector, WGW Utilities Field Services Lineperson/Cable Specialist Lineperson/Cable Specialist -Lead Maintenance Mechanic -Welding Manager Communications Manager Customer Service Manager Electric Operations Manager Treasury, Debt & Investments Manager Utilities Compliance Manager Utilities Credit & Collection Manager Utilities Operations WGW Manager Utilities Program Services Manager Utilities Strategic Business Manager Utilities Telecommunications Meter Reader Meter Reader -Lead Metering Technician Metering Technician -Lead Offset Equipment Operator Overhead Underground Troubleman Power Engineer Principal Business Analyst Program Assistant I Program Assistant II Project Engineer Project Manager Resource Planner Restoration Lead SCADA Technologist Senior Accountant Senior Business Analyst Senior Electrical Engineer FY 2019 Actuals 4.00 0.50 5.00 11.00 4.00 2.00 1.00 1.00 1.00 0.40 1.00 1.00 1.00 1.00 1.00 1.00 6.00 1.00 3.00 1.00 0.48 2.00 3.00 1.00 1.50 5.00 0.75 6.00 1.00 2.00 0.70 3.00 4.00 FY 2020 Actuals 4.00 0.50 5.00 11.00 4.00 2.00 1.00 1.00 1.00 0.40 1.00 1.00 1.00 1.00 1.00 1.00 6.00 1.00 3.00 1.00 0.48 2.00 1.00 1.00 1.50 1.00 5.00 0.75 5.00 1.00 2.00 0.70 3.00 4.00 FY 2021 Adopted Budgeta 4.00 0.50 5.00 10.00 4.00 2.00 1.00 1.00 1.00 0.40 1.00 1.00 1.00 1.00 1.00 1.00 6.00 1.00 3.00 1.00 0.48 2.00 1.00 1.00 1.50 1.00 5.00 0.75 5.00 1.00 2.00 0.70 3.00 4.00 FY 2022 Proposed Budget 4.00 1.00 0.50 5.00 10.00 4.00 2.00 1.00 1.00 1.00 0.40 1.00 1.00 1.00 1.00 1.00 1.00 6.00 1.00 3.00 1.00 0.48 2.00 1.00 1.00 1.50 1.00 5.00 0.75 5.00 1.00 2.00 0.70 3.00 5.00 FY 2022 Change FTE 1.00 1.00 FY 2022 Change % 424 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 51 DocuSign Envelope ID: 7AC1 E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization 1 Senior Engineer Senior Management Analyst Senior Mechanic Senior Performance Auditor Senior Resource Planner Senior Utilities Field Service Representative Senior Water Systems Operator Storekeeper Storekeeper -Lead Street Light, Traffic Signal & Fiber Technician Street Light, Traffic Signal & Fiber -Lead Substation Electrician Substation Electrician (Freeze) Substation Electrician -Lead Supervising Electric Project Engineer Sustainability Programs Administrator Tree Maintenance Person Utilities Chief Operating Officer Utilities Chief Operating Officer (Freeze) Utilities Compliance Technician Utilities Compliance Technician -Lead Utilities Credit/Collection Specialist Utilities Director Utilities Engineer Estimator Utilities Field Services Representative Utilities Install Repair -Lead -Welding Certified Utilities Install Repair -Welding Certified Utilities Install/Repair Utilities Install/Repair Assistant Utilities Install/Repair-Lead Utilities Key Account Representative Utilities Locator Utilities Marketing Program Administrator Utilities Safety Officer Utilities Supervisor FY 2019 Actuals 5.00 0.70 1.00 1.00 6.00 1.00 2.00 1.00 0.80 5.00 2.00 6.00 FY 2020 Actuals 5.00 0.70 1.00 1.00 6.50 1.00 2.00 1.00 0.80 5.00 2.00 6.00 2.00 2.00 1.00 1.00 1.00 1.00 1.00 1.00 2.00 2.00 1.00 1.00 2.00 2.00 1.00 5.00 5.00 5.00 5.00 2.00 2.00 3.00 3.00 10.00 10.00 1.00 1.00 5.00 5.00 3.00 3.00 3.00 3.00 3.00 4.00 1.00 1.00 12.00 12.00 FY 2021 Adopted Budgeta FY 2022 Proposed Budget 5.00 ' 5.00 0.70 0.70 FY 2022 Change FTE 1.00 1.00 - 1.00 6.50 6.50 - -% 1.00 1.00 - -% 2.00 2.00 - -% 1.00 1.00 - -% 0.80 0.80 - -% 5.00 5.00 - -% 2.00 2.00 - -% 5.00 6.00 1.00 20.0% 1.00 - (1.00) (100.0)% 2.00 2.00 - -% 1.00 (1.00) (100.0)% - 4.00 4.00 -% 1.00 1.00 - -% - 1.00 1.00 100.0% 1.00 (1.00) (100.0)% 3.00 3.00 - -% 1.00 1.00 - -% 2.00 2.00 - -% 1.00 1.00 - -% 5.00 5.00 - -% 5.00 5.00 - -% 2.00 2.00 - -% 3.00 3.00 - -% 10.00 10.00 - -% 1.00 1.00 - -% 5.00 5.00 - -% 3.00 3.00 - -% 3.00 3.00 - -% 4.00 - (4.00) (100.0)% 1.00 1.00 - -% 11.00 12.00 1.00 100.0% FY 2022 Change % - % - % - % (1.00) (100.0)% TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 425 52 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization FY 2021 FY 2022 FY 2019 FY 2020 Adopted Proposed FY 2022 FY 2022 Actuals Actuals Budgeta Budget Change FTE Change % Utilities Supervisor (Freeze) Utilities System Operator Utility Engineering Estimator - Lead Warehouse Supervisor Water System Operator II WGW Heavy Equipment Operator Total Utilities Total Enterprise Fund Other Funds 5.00 5.00 1.00 1.00 0.80 0.80 4.00 4.00 256.67 257.42 357.86 358.61 1.00 5.00 1.00 0.80 4.00 4.70 257.42 358.74 5.00 1.00 0.80 4.00 4.70 257.42 358.74 (1.00) (0.00) (0.00) - % - % Capital Project Fund Administrative Assistant Administrative Associate 1 Administrative Associate I I I Assistant Director Public Works Associate Engineer Associate Engineer (Freeze) Associate Planner Building Serviceperson - 0.15 0.15 0.65 0.80 0.80 0.80 1.09 0.89 0.89 0.80 0.58 0.72 0.72 0.72 - 3.04 2.49 1.50 1.65 0.15 1.00 (1.00) 0.31 0.30 0.30 0.35 0.05 0.75 0.75 1.00 1.00 -% 0.50 (0.80) (0.09) 333.3% (100.0) % (10.1)% - % 10.0% (100.0)% 16.7% Building Serviceperson-Lead 1.40 1.40 1.40 1.40 -% Cement Finisher -Lead 0.74 0.74 0.74 0.74 - -% Chief Transportation Official 0.36 0.30 0.30 0.30 -% Contracts Administrator 0.60 0.60 0.60 0.60 - -% Coordinator Public Works Projects 1.30 1.30 1.30 1.30 - -% Coordinator Transportation Systems 0.76 0.75 0.75 1.35 0.60 80.0% Management Engineer 2.80 3.10 2.10 2.10 - -% Engineer (Freeze) 1.00 (1.00) (100.0)% Engineering Technician I I I 0.50 0.50 0.50 0.50 -% Facilities Technician 1.50 1.50 1.50 1.50 - -% Inspector, Field Services 1.21 1.21 1.21 1.21 -% Landscape Architect Park Planner 0.90 0.90 0.90 0.90 -% Management Analyst 0.82 0.94 0.95 0.95 - -% Manager Facilities 0.10 0.10 0.10 0.10 -% Manager Maintenance Operations 0.65 0.65 0.65 0.65 -% 426 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 53 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization i Parking Operations -Lead Project Engineer Project Manager Project Manager (Freeze) Senior Engineer Senior Management Analyst Senior Planner Senior Project Manager Supervisor Inspection and Surveying Surveyor, Public Works Traffic Engineering -Lead Transportation Planning Manager Total Capital Project Fund FY 2019 Actuals 0.35 6.84 1.15 1.99 0.72 0.72 0.90 0.63 0.55 0.35 0.35 34.76 FY 2020 Actuals 0.40 7.59 1.15 2.99 0.60 0.50 1.00 0.63 0.55 0.55 0.35 36.40 FY 2021 Adopted Budgeta 0.40 7.62 0.80 0.35 4.04 0.60 0.50 0.65 0.55 0.55 0.35 36.77 FY 2022 Proposed Budget 0.30 7.92 0.80 4.04 0.60 0.80 0.65 0.55 0.60 0.45 35.48 FY 2022 Change FTE (0.10) 0.30 (0.35) 0.30 0.05 0.10 (1.29) FY 2022 Change % (100.0)% - % - % 60.0% - % Printing and Mailing Services Manager Revenue Collections Offset Equipment Operator Total Printing and Mailing Services 0.10 1.52 1.62 0.10 1.52 1.62 0.10 1.52 1.62 0.10 1.52 1.62 Special Revenue Funds Account Specialist Account Specialist (Freeze) Account Specialist -Lead Administrative Assistant Administrative Associate II Administrative Associate III Associate Planner Community Service Officer Community Service Officer (Freeze) Coordinator Public Works Projects Electrician Facilities Maintenance -Lead Facilities Painter Facilities Technician Management Analyst Manager Community Services Senior Program 1.87 0.55 0.20 0.21 0.42 0.25 0.25 0.50 0.50 0.37 0.37 0.13 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.15 0.15 0.15 0.15 0.25 0.25 0.25 0.25 0.45 0.45 0.45 0.45 0.17 0.35 0.35 0.35 1.00 1.00 1.00 1.00 1.87 0.55 0.35 0.20 1.37 0.50 0.55 0.35 0.20 1.37 0.55 0.25 0.20 -% (0.50) (100.0)% - % (0.10) (28.6)% -% - % (0.25) (100.0)% -% (0.13) (100.0)% TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 427 54 DocuSign Envelope ID: 7AC1E5F8-59B9-4EC1-A5A2-97ED89B7DABC ATTACHMENT A, EXHIBIT 5 Table of Organization ■ Manager Maintenance Operations Manager Revenue Collections Parking Operations -Lead Senior Planner Street Maintenance Assistant Street Sweeper Operator Transportation Planning Manager Total Special Revenue Funds FY 2019 Actuals 0.19 0.28 0.55 0.40 2.00 0.37 0.24 10.20 FY 2020 Actuals 0.19 0.28 0.60 0.40 2.00 0.37 0.50 10.66 FY 2021 Adopted Budgeta 0.19 0.28 0.60 0.40 2.00 0.37 0.50 10.66 FY 2022 Proposed Budget 0.19 0.28 0.65 0.40 2.00 0.37 0.50 9.73 FY 2022 Change FTE 0.05 (0.93) FY 2022 Change % - % - % (8.7) % Technology Fund Administrative Assistant Assistant Director Administrative Services Business Analyst Desktop Technician Director Information Technology/CIO Director Information Technology/CIO (Freeze) Manager Information Technology 3.00 Manager Information Technology Security 1.00 Principal Business Analyst 1.00 Senior Business Analyst 2.00 Senior Management Analyst 1.00 Senior Technologist Senior Technologist (Freeze) Technologist Technologist (Freeze) Total Technology Fund 1.00 0.10 1.00 6.00 1.00 18.00 1.00 36.10 1.00 0.10 1.00 6.00 1.00 1.00 0.10 1.00 6.00 1.00 0.10 1.00 6.00 - 1.00 1.00 100.0% 1.00 (1.00) (100.0)% 3.00 3.00 3.00 -% 1.00 1.00 - (1.00) (100.0)% 1.00 1.00 (1.00) (100.0)% 2.00 2.00 2.00 -% 1.00 1.00 1.00 - -% 18.00 16.00 14.00 (2.00) (12.5) % 2.00 (2.00) (100.0)% 1.00 36.10 1.00 36.10 29.10 (1.00) (100.0)% (7.00) (19.4) % Vehicle Replacement and Maintenance Fund Administrative Associate III Assistant Director Public Works Assistant Fleet Manager Equipment Maintenance Service Person Fleet Services Coordinator Management Analyst Management Assistant Manager Fleet 1.00 0.25 1.00 2.00 2.00 0.20 1.00 0.25 1.00 2.00 1.00 0.20 1.00 1.00 0.25 1.00 2.00 1.00 0.20 1.00 1.00 0.25 1.00 1.00 1.00 0.20 1.00 1.00 - % - % -% (1.00) (50.0)% 428 TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 55 DocuSign Envelope ID: 7AC1 E5F8-59B9-4EC1-A5A2-97ED89B7DABC Table of Organization Motor Equipment Mechanic II Motor Equipment Mechanic II (Freeze) Motor Equipment Mechanic -Lead Project Manager Senior Management Analyst Total Vehicle Replacement and Maintenance Fund FY 2019 Actuals 6.00 2.00 1.00 0.08 16.53 FY 2020 Actuals 6.00 2.00 1.00 0.08 15.53 FY 2021 Adopted Budgeta 5.00 1.00 2.00 1.00 0.08 15.53 ATTACHMENT A, EXHIBIT 5 ■ FY 2022 Proposed Budget 5.00 FY 2022 Change FTE FY 2022 Change % - % (1.00) (100.0)% 2.00 - -% 1.00 -% 0.08 - -% (12.9)% 13.53 (2.00) Workers' Compensation Program Fund Senior Human Resources Administrator Total Workers' Compensation Program Fund Total Other Funds Total Citywide Positions 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 100.21 101.31 101.68 90.46 (11.22) (11.0)% - % - % 1,040.35 1,034.85 1,034.85 956.00 (78.85) (7.6)% a.The FY 2021 Adopted Budget includes position freezes that reduced the funding equivalent to holding a position vacant. The positions impacted by this action are identified with "(Freeze)" following the job classification title and summarized in two rows; one to reflect the total FTE authorized (less freezes), and another to reflect FTE freezes. The FY 2022 Proposed Budget includes City Council direction to eliminate these positions (CMR 11872). b. The Office of Transportation was created within the City Manager's Office in FY 2020 through the reallocation of staff and resources from the Planning and Development Services Department (previously the Planning and Community Environment Department). Prior year staffing levels have been restated for demonstrative purposes. c. The Planning and Development Services Department was established in FY 2020 through the merging of the Development Services Department and Planning and Community Environment Department and the reallocation of resources to create a dedicated Office of Transportation within the City Manager's Office. Prior year staffing levels have been restated for demonstrative purposes. TABLE OF ORGANIZATION • CITY OF PALO ALTO FISCAL YEAR 2022 PROPOSED OPERATING BUDGET 429 56 DocuSign Envelope ID: 7AC1 E5F8-59B9-4EC1-A5A2-97ED89B7DABC Municipal Fee Schedule Amendements for FY 2022 Changed Fees ATTACHMENT A, Exhibit 6 Administrative Services Department Citywide Utility Standards - WGW Standards, Latest Edition Utility Standards - Project Plan Set (Up to 25 sheets) $30.00 each $30.110 each $30.00 each $35.00 each $65.00 each $56.00 each 16.67% Fees aligned to cover minimum material and staffing costs 116.67% 86.67% Fees aligned to cover minimum material costs Community Services Department Arts & Sciences (Art Center) Locker Rental - Large Wir,7777:71mItr 1•11211271=. Justification $35.00 per season $39.00 per season 11.43% Locker Rental - Small $23.00 per season $25.00 per season 10.00% Administration Fee Per Registration I •o r •r each 110% Arts & Sciences (Arts Activities) Field Trips $138.00 per group $152.00 per group 10.00% Workshop Supplies $0.50 - $88.00 per person $0.50 - $97.00 per person 10.00% Arts & Sciences (Junior Museum & Zoo) Family Membership $150.00 - $430.00 each $108.00 - $430.00 each Other Rentals & Reservations (Athletic Fields) Grass Fields Resident Fee: $49.00 - $87.00 per hour; Non -Resident Fee: 89.00- 174.00•erhour Resident Fee: $54.00 per hour; Non -Resident Fee: $98.00 per hour 10.16% Grass Fields - Palo Alto Based Non -Profits Resident Fee: $27.00 - $58.00 per hour; Non -Resident Fee: Not Resident Fee: $30.00 per hour; Non -Resident Fee: Not Available Available Resident Fee: $3.00 - $29.00 per hour; Non -Resident Fee: Not Available 10.00% Grass Fields - Palo Alto Based Youth Sports Organizations Synthetic Turf Field Synthetic Turf Field - Palo Alto Based Non -Profits Resident Fee: $9.00 per hour; Non -Resident Fee: Not Available Resident Fee: $66.00 - $174.00 per hour; Non -Resident Fee: Resident Fee: $73.00 per hour; Non -Resident Fee: $163.00 per $148.00 - $232.00 per hour hour Resident Fee: $47.00 - $116.00 per hour; Non -Resident Fee: Resident Fee: $52.00 per hour; Non -Resident Fee: Not available 10.63% Not Available 28.00% 10.37% Synthetic Turf Field - Palo Alto Based Youth Sports Organizations Rentals & Reservations (Cubberley Community Center) Additional hours past ten daily Resident Fee: $35.00 - $58.00 per hour; Non -Resident Fee: Not Available Resident Fee: $39.00 per hour; Non -Resident Fee: Not Available 11.43% A. Performance Day Package Basic Rate: $225.00 per hour; Non -Profit Rate: $158.00 per hour Basic Rate: $1,600.00 each; Non -Profit Rate: $1,120.00 each $250.00 per hour $1,650.00 each 11.00% 3.00% B. Production Day Package Basic Rate: $130.00 per hour; Non -Profit Rate: $91.00 per hour $135.00 per hour 4.00% C. Rehearsal Day Package Basic Rate: $1,350.00 each; Non -Profit Rate: $945.00 each $1,400.00 each 4.00% D. Dark Day Package Basic Rate: $960.00 each; Non -Profit Rate: $672.00 each $1,000.00 each 4.16% Additional Performance Hours Past Four per Performance Dressing Room - M3 Basic Rate: $225.00 per hour; Non -Profit Rate: $158.00 per hour $250.00 per hour Basic Rate: $26.00 per hour; Non -Profit Rate: $22.00 per hour $30.00 per hour 15.39% Recreation (Recreation Activities) Teen Center Membership - Monthly A $10.00 per month $5.00 - $10.00 per month Other Fees aligned with market conditions and service delivery model 57 DocuSign Envelope ID: 7AC1 E5F8-59B9-4EC1-A5A2-97ED89B7DABC Municipal Fee Schedule Amendements for FY 2022 Changed Fees ATTACHMENT A, Exhibit 6 Office of Transportation (OOT) All Downtown and SOFA Lots and Garages Annual Parking Permit California Avenue Area All Garages and Lots Annual Parking Permit Downtown RPP - Reduced -Price Employee Parking Permit Downtown RPP - Full Price Employee Parking Permit Evergreen RPP- MayField RPP Reduced -Price Employee Parking Permit Evergreen RPP - MayField RPP Full Price Employee Parking Permit Southgate RPP - Reduced -Price Employee Parking Permit $830.00 per year 5620.00 per year $50.00 each $806.00 per year $403.00 per year $50.00 each $415 each $50 each $310 each $403 each $25 each $201.50 each 50 each $25 each Southgate RPP - Full Price Employee Parking Permit $310 each $201.50 each Planning and Development Services (Public Works) e7_.]._ .:.'_. Wa.idg dtiT Tree Inspection for Private Development $161.00 per inspection $208.00 per inspection 27.30% Fee aligned to increased salary costs of staff time required for this service Revert to pre-pandamic FY 2020 pricing Planning and Development Services (Impact & In -Lieu Fees) Park Impact Fee Single Family $13,103.00 per residence or $19,565.00 per Single Family $57,420.00 per unit; Multi -Family $42,468.00 per residence larger than 3,000 sq. ft.; Multi -Family $8,577.00 per unit unit or $4,337.00 per unit smaller than or equal to 900 sq. ft. Park Impact Fee Commercial/Industrial $5,564.00 per 1,000 sq. ft. or fraction thereof; Hotel/Motel 52,516.00 per 1,000 sq. ft. or fraction thereof Commercial/Industrial $16,837.00 per net new 1000 sq. ft.; Hotel/Motel 52,866.00 per net new 1000 sq. ft. Community Center Impact Fee Single Family $3,499.00 per residence or $5,086.00 per residence larger than 3,000 sq. ft.; Multi -Family $2,235.00 per unit or $1,128.00 per unit smaller than or equal to 900 sq. ft. Single Family $4,438.00 per unit; Multi -Family $3,283.00 per unit Community Center Impact Fee Commercial/Industrial $314.00 per 1,000 sq. ft. or fraction thereof; Hotel/Motel $142.00 per 1,000 sq. ft. or fraction thereof Commercial/Industrial 51,301.00 per net new 1000 sq. ft.; Hotel/Motel $222.00 per net new 1000 sq. ft. Library Impact Fee Library Impact Fee Single Family 51,187.00 per residence or 51,7666 per residence larger than 3,000 sq. ft.; Multi -Family $710.00 per unit or 5390.00 per unit small than 900 sq. ft. Commercial/Industrial $299.00 per 1,000 sq. ft. or fraction thereof; Hotel/Motel 5126.00 per 1,000 sq. ft. or fraction thereof Single Family $2,645.00 per unit; Multi -Family $1,956.00 per unit Commercial/Industrial $776.00 per net new 1000 sq. ft.; Hotel/Motel $132.00 per net new 1000 sq. ft. Fees aligned to fee study (CMR 12163) 58 CVTY 0 PALO ALTO City of Palo Alto (ID # 12240) City Council Staff Report Report Type: Action Items Meeting Date: 6/21/2021 Summary Title: FY 2022 Rates and Financial Plans Title: Adoption of six Resolutions: 1) Approving the Fiscal Year (FY) 2022 Electric Utility Financial Plan, Including Proposed Reserve Transfers, and Amending Utility Rate Schedules E -EEC -1, E-NSE-1, E -2-G, E -4-G and E -7-G; 2) Amending Utility Rate Schedule E-HRA; 3) Approving the FY 2022 Gas Utility Financial Plan, Including Proposed Transfers, Amending the Gas Utility Reserve Management Practices, and Adopting a Gas Rate Increase by Amending Utility Rate Schedules G-1, G-2, G-3 and G-10; 4) Approving the FY 2022 Water Utility Financial Plan and Reserve Transfer; 5) Amending Utility Rate Schedule D-1 Increasing the Storm Water Management Fee by 2.0 Percent per Month per Equivalent Residential Unit for FY 2022; and 6) Amending Utility Rate Schedules EDF-1 and EDF-2 to Increase Dark Fiber Rates 2.0 Percent From: City Manager Lead Department: Utilities Recommendation 1) Staff and the Finance Committee recommend that the City Council approve and adopt the following Resolutions: a. Approving the Fiscal Year (FY) 2022 Electric Utility Financial Plan, including reserve transfers, and amending Utility Rate Schedules E -EEC -1, E-NSE-1, E -2-G, E -4-G and E -7-G (Attachment A); b. Amending Utility Rate Schedule E-HRA (Attachment B); c. Approving the FY 2022 Gas Utility Financial Plan, including reserve transfers, amending the Gas Utility Reserve Management Practices, and adopting a Gas Rate Increase by Amending Utility Rate Schedules G-1, G-2, G-3 and G-10 (Attachment C); d. Approving the FY 2022 Water Utility Financial Plan, and reserve transfer (Attachment D); and e. Amending Utility Rate Schedules EDF-1 and EDF-2 to increase Dark Fiber Rates 2.0 percent (Attachment F); f. Amending Utility Rate Schedule D-1 increasing the Storm Water Management Fee by 2.0 City of Palo Alto Page 1 percent per month per Equivalent Residential Unit for FY 2022 (Attachment E); 2) On April 6, 2021, the Finance Committee introduced and recommended, with Staff's approval, that the City Council: a. Direct Staff to return after the summer recess with a systematic communication plan to provide customers with rate histories, trends, and competitive standing compared to other jurisdictions and forward to the Utilities Advisory Commission for review and recommendation; and b. Direct Staff to return after the summer recess with the evaluation of the Electric Bill Utility reliability history and comparative performance to other jurisdictions to the extent that is available and forward to the Utilities Advisory Commission for review and recommendation. The recommendations for approval of the FY 2022 Wastewater Collection Utility Financial Plan, including reserve transfers, amending the Wastewater Collection Utility Reserve Management Practices, and the public hearing on rate approvals will be held on August 9, 2021. Executive Summary From February through April 2021, the Utilities Advisory Commission (UAC) and Finance Committee reviewed various rate changes recommended by staff for Fiscal Year 2022. This report summarizes the meetings that occurred, including all staff recommendations. This comprehensive utility rates report includes separate sections for each of the Utilities: electric, gas, water, dark fiber, and storm drainage and surface water. Estimates for retail revenue impacts are included in the FY 2022 budget assumptions. This report outlines the actions requested, transmits the resolutions from these reviews, and requests City Council approval and adoption. Approval of this item would result in the finalized rates for FY 2022, beginning July 2021. Background Electric Utilities staff presented to the UAC on March 3, 2021 and the Finance Committee on April 6, 2021 a recommendation that Council amend the FY 2022 Electric Utility Financial Plan, propose the following transfers: a. Up to $5 million from the Capital Improvement Project (CIP) Reserve to the Distribution Operations Reserve at the end of FY 2021; b. Up to $1 million from the Supply Operations Reserve to the Electric Special Projects (ESP) reserve at the end of FY 2021; and c. Up to $1.19 million from the Cap -and -Trade Program Reserve at the end of FY 2021 to be spent on local decarbonization programs; In addition, staff recommended updating the Export Electricity Compensation (E -EEC -1) rate to reflect current projections of avoided cost, updating the Net Surplus Electricity Compensation (E-NSE-1) rate to reflect current projections of avoided cost, and updating the Palo Alto Green program pass -through premium charge on the Residential Master -Metered and Small Non - City of Palo Alto Page 2 Residential Green Power Electric Service (E -2-G), the Medium Non -Residential Green Power Electric Service (E -4-G), and the Large Non -Residential Green Power Electric Service (E -7-G) rate schedules to reflect current costs (Staff Report #11887'). The Finance Committee unanimously recommended approval of this proposal. Gas Utilities staff presented to the UAC on March 3, 2021 and the Finance Committee on April 6, 2021 a recommendation that the City Council amend the FY 2022 Gas Utility Financial Plan, increase gas utility rates by 3% overall (an 5% distribution rate increase) by amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master -Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G-10 (Compressed Natural Gas Service), revise the Gas Utility Reserve Management Practices, and include transfers of 1) Up to $3.9 million from the Rate Stabilization Reserve to the Operation Reserve; and 2) Up to $4.542 million from the Rate Stabilization Reserve to the Cap and Trade Program Reserve (Staff Report #118882). The Finance Committee unanimously recommended approval of this proposal. Water: Utilities staff presented to the UAC on March 3, 2021 and the Finance Committee on April 6, 2021 a recommendation to approve the Fiscal Year (FY) 2022 Water Utility Financial Plan and approve a transfer of up to $13.4 million from the Operations Reserve to the CIP Reserve in FY 2022 (Staff Report #118893). No rate increase was recommended as part of this proposal. The Finance Committee recommended approval of these staff recommendations unanimously. Storm Drain On April 20, 2021, Public Works staff presented the Finance Committee with a recommendation that the City Council adopt a resolution amending Utiity Rate Schedule D-1 (Storm and Surface Water Drainage) to implement a 2.0 percent rate increase consistent with the applicable Consumer Price Index, increasing the monthly charge per Equivalent Residential Unit by $0.30, from $15.04 to $15.34 for Fiscal Year 2022 (Staff Report #121694). The Finance Committee unanimously recommended approval of this proposal. Wastewater The recommendations for approval of the FY 2022 Wastewater Collection Utility Financial Plan, including reserve transfers, amending the Wastewater Collection Utility Reserve Management Practices, and the public hearing on rate approvals will be held August 9, 2021. 1 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/current-year/2021/id-11887.pdf 2 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/current-year/2021/id-11888.pdf 3 https://www.cityofpa loa lto.org/files/assets/public/agendas-mi n utes-reports/reports/city-manager-reports- cmrs/current-year/2021/id-11889.pdf 4 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/current-year/2021/id-12169.pdf City of Palo Alto Page 3 Discussion From February through April 2021, the Utilities Advisory Commission and Finance Committee received and reviewed various utility financial plans, transfer requests, and rate changes recommended by staff. This report outlines the actions requested, transmits the resolutions from these reviews, and requests City Council approval and adoption. Attached to this report are several documents, referenced throughout the recommendation language and the report. In addition, this report also includes links to the City's website for all the staff reports presented throughout the review process to the Utilities Advisory Commission, Finance Committee, and City Council. Staff and the Finance Committee recommend that the City Council approve the Utility financial plans and rate changes listed below. Proposed Rate Changes and Financial Plans Electric Proposal The FY 2022 Electric Utility Financial Plan (Attachment B) includes projections of the utility's costs and revenues through FY 2026. Staff projects costs for the Electric Utility to increase steadily through the forecast period. On the Supply side, rising transmission costs are the primary contributor to the increases. In Distribution, Operations costs are expected to increase at or near the inflation rate (2% to 3% per year) through the forecast period, and projected capital expenses are higher due to the rebuilding of existing underground districts, substation, the Foothills rebuild, and line voltage upgrades. The City is also evaluating the cost and scope of other system resiliency projects, such as pole replacements, which may increase costs as well as rates in the future. Revenue increases between 0% to 5% are projected to be necessary to keep revenues in line with expenses over the next five years. Electric loads have been gradually decreasing and are expected to continue to decrease in the long-term, mainly due to declining consumption in the commercial sector, putting gradual upward pressure on rates. This decline has been exacerbated by the COVID pandemic. Consumption is currently 5% to 10% below long-term consumption trends. Current models suggest that pandemic economic recovery will take place through 2021 and 2022, with electric consumption stabilizing on the long run average by 2023. Staff is also proposing several transfers. A transfer from the CIP Reserve will help fund CIP projects, keep the Distribution Operations reserve above minimum guideline levels and balance year to year changes in capital investment. The transfer of up to $1 million to the Electric Special Projects reserve will work towards repaying the remaining $5 million of a $10 million short-term loan taken from the ESP reserve in FY 2018, during the last drought. Repaying the City of Palo Alto Page 4 full $5 million in FY 2021, which was part of last year's financial plan, is not recommended as the Supply Operations Reserve would likely go below the minimum guideline level in FY 2023 as a result. Also, this Financial Plan, and as described in Staff Report #115565, staff is allocating Cap and Trade funds equivalent to 1/3 of the FY 2021 REC Exchange program revenues, or $1.19 million, for future local decarbonization projects. Based on the relative health of the various Electric reserve funds, staff is recommending no rate increase for FY 2022, however this will likely result in reserves falling close to the minimum guideline levels over the next two to three years In addition, staff recommended making adjustments to several of the City's Electric rate schedules to reflect current costs (Attachment G -Link A2): 1. Customers on the City of Palo Alto's (CPAU) original Net Energy Metering (NEM) program, also called NEM 1, who have chosen to have the value of any annual net generation they produced over the past 12 months credited back to their account do so under the Net Metering Net Surplus Electricity Compensation (E-NSE-1) rate, which is calculated using the utility's avoided costs from the prior year. The compensation rate paid to these customers is increasing due to a small increase in the value of the energy and in the City's avoided transmission charges. 2. Solar customers served by the NEM successor program, or NEM 2 (effective after the City reached its NEM 1 cap at the end of 2017), are compensated at the Export Electricity Compensation (E -EEC -1) rate for exported electricity. This buyback rate also reflects the avoided cost or value of customer -generated electricity in Palo Alto, calculated on a forward -looking basis for the upcoming fiscal year. The compensation rate paid to these customers is also increasing due to a small increase in the value of the energy and in the City's avoided transmission charges. 3. The PaloAltoGreen (PAG) program provides CPAU's commercial customers an opportunity to voluntarily pay a premium to receive renewable electricity credits to match their energy usage. The PAG charge is a pass -through charge; the revenue collected through the PAG rate premium is set to fully recover the costs of administering the program. This change is increasing, reflecting a significant increase in the wholesale cost of Green -e certified RECs in the Western US market. The updated charge will be reflected on the Residential Master -Metered and Small Non -Residential Green Power Electric Service (E -2-G), the Medium Non -Residential Green Power Electric Service (E -4- G), and the Large Non -Residential Green Power Electric Service (E -7-G) rate schedules. After deliberating the proposal, the three members of the Finance Committee voted unanimously in favor of the recommendations put forth by staff. Council Member Burt made a general comment regarding all utilities that staff should focus on communications regarding competitiveness with rates and reliability. A motion was made and unanimously approved that would recommend the City Council: 5 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/current-year/2020/id-11566.pdf City of Palo Alto Page 5 a. Direct Staff to return after the summer recess with a systematic communication plan to provide customers with rate histories, trends, and competitive standing compared to other jurisdictions and forward to the Utilities Advisory Commission for review and recommendation; and b. Direct Staff to return after the summer recess with the evaluation of the Electric Bill Utility reliability history and comparative performance to other jurisdictions to the extent that is available and forward to the Utilities Advisory Commission for review and recommendation. Electric — Hydroelectric Rate Adjuster information In an effort to manage the financial impacts of the annual variability in production of the City's hydroelectric resources, and to allow for the City to maintain a lower target level for its Hydroelectric Stabilization (HS) Reserve, the City adopted a Hydroelectric Rate Adjuster (HRA) mechanism effective July 1, 2018 (CMR 8962, March 19, 2018). California precipitation has been lower than normal during FY 2021, and the projection is that hydroelectric generation levels will remain below normal for FY 2022. However, the beginning HS Reserve level for FY 2022 is currently projected to be $15.4 million, and the target range for the HS Reserve is $11 million to $27 million. As such, Staff does not recommend the HRA's activation for FY 2022. In addition, when Council adopted the HRA rate schedule in 2018, an average year's total hydro output level was 548 GWh. A re-evaluation of historical hydro facility output levels found that, based on changes in climatological conditions and environmental policies in recent years, the average annual generation had dropped to 480 GWh. Similarly, the +/- 1 standard deviation levels for the two projects had fallen from 364 GWh and 733 GWh, to 319 GWh and 642 GWh, respectively. Staff is recommending an amendment to the Electric Hydro Adjuster Rate (E-HRA) to update the stated hydro generation average and +/- one standard deviation values, which have changed since the schedules adoption in 2018 (Attachment G — Link B1). Gas The FY 2022 Gas Utility Financial Plan (Attachment G — Link C1) includes projections of the utility's costs and revenues for FY 2022 through FY 2026. Gas utility costs are made up of supply -related costs (27 percent of costs in FY 2020), which are collected through a pass - through supply rate that varies monthly, and distribution -related costs (73 percent of costs in FY 2020), which are collected through a distribution rate that is typically adjusted not more than one time per year. The City's natural gas rates are based on the 2019 Natural Gas Cost of Service and Rates Study, updated with current and proposed operating costs. Gas commodity costs are the most variable factor in customer gas bills, being subject to market forces, and are currently projected to grow by about 4 percent per year between FY 2022 and 2026 (which is equivalent to a 1.2% City of Palo Alto Page 6 increase in total gas rates). Much of this has to do with increased cost projections related to cap -and -trade allowance costs, carbon neutrality costs as well as transportation. Operations costs are projected to increase at 3 to 4 percent annually, partially due to inflation and salary and benefit increases, and partially due to a large one-time increase in costs to pay for phase two of a cross -bore safety verification program. One of the main drivers for the increase in the Gas Utility's short-term costs (and therefore rates) over the next several years are increases in capital improvement costs to maintain a safe and reliable system. CIP expenditures for the last several years have been lower than normal while the City was completing the Upgrade Downtown project, but this current financial plan works to address these challenges in a way that will allow City of Palo Alto Utilities (CPAU) to meet its gas main replacement (GMR) needs. The next focus of the GMR program will be the replacement of all Polyvinyl Chloride (PVC) mains with Polyethylene (PE) mains. The proposed FY 2022 Gas Utility Financial Plan includes an increase in distribution rates effective July 1, 2021 and will result in a 3 percent increase to the total system average gas rate if supply rates remain unchanged.6 This will be done by amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master -Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G-10 (Compressed Natural Gas Service) (Attachment G — Link C3). Additional 5 percent increases to the total system average gas rate are projected over the next three years. In addition, staff proposes a transfer to the Operations Reserve of up to $3.9 million from the Rate Stabilization Reserve to ensure adequate operating reserves. A transfer of $4.542 million to the Cap -and -Trade Program Reserve from the Rate Stabilization Reserve is also proposed to account for revenues related to the State's Cap and Trade program that are required to be used for specific purposes. The Cap -and -Trade Program Reserve is new and included in an update to the Gas Reserves Management Practices (Attachment G — Link C2) In the interest of providing options to help the community keep its utility bills low during the economic crisis created by the COVID-19 pandemic, the Utilities Department also provided an alternative rate plan involving a 2 percent rate increase in FY 2022 and no more than 5% rate increases in the subsequent financial plan years. This alternative plan is projected to bring reserves below minimum guideline levels unless $700,000 in budget cuts could be achieved between FY 2023 to FY 2025. After deliberating the proposal, the three members of the Finance Committee voted unanimously in favor of the 3% rate increase proposal put forth by staff. Water The FY 2022 Water Utility Financial Plan (Attachment G — Link D1) includes projections of the utility's costs and revenues for FY 2021 through FY 2026. Operational costs for the water utility 6 Supply costs are forecasted to rise 1.2%, for an overall 4% rate increase, approximately. However, forecasts are uncertain, and these supply cost changes may be lower or higher than projected depending on market conditions. City of Palo Alto Page 7 have increased at approximately 3% per year for the last five years while capital costs have fluctuated from year to year. The financial plan conservatively projects that capital and operational costs will increase on average at approximately 3% per year over the next five years. Active use of the CIP Reserve will help keep the fluctuations in capital spending from impacting the Operations Reserve or customer rates. Although capital investment needs will fluctuate from FY 2021 through FY 2026, there are enough funds currently in reserves to leave rates unchanged in FY 2022 while still funding budgeted and essential capital investments. In addition, the financial plan proposes a transfer of up to $13.24 million from the Operations Reserve to the CIP reserve in FY 2022: up to $5 million in FY 2022 for one-time costs related to seismic water system upgrades and replacements, and $8.24 million in annual capital program contributions. The Finance Committee reviewed the recommendations at the April 4, 2021 meeting and voted to pass them unanimously. Wastewater Collection The recommendations for approval of the FY 2022 Wastewater Collection Utility Financial Plan, including reserve transfers, amending the Wastewater Collection Utility Reserve Management Practices, and the public hearing on rate approvals will be held on August 9, 2021. Storm Water and Surface Water Drainage On April 11, 2017, a majority of Palo Alto property owners approved a ballot measure approving a monthly Storm Water Management Fee. This fee funds thirteen storm drainage capital improvement projects listed in the ballot measure, enhanced maintenance of the storm drainage system, and a variety of stormwater quality protection programs. The approved ballot measure allows for an annual adjustment based on the Consumer Price Index (CPI) or six percent, whichever is less. The Storm Water and Surface Drainage Rate (Attachment S) will increase 2.0 percent, increasing the monthly charge per Equivalent Residential Unit by $0.30, from $15.04 to $15.34 for Fiscal Year 2022 effective July 1, 2021, to reflect the annual CPI change. See Staff Report #121697 for more information. Dark Fiber Since 2007, the EDF-1 and EDF-2 rates for Dark Fiber (Attachment G — Link F1) customers have increased annually by the annual December change in the Consumer Price Index for All Urban Consumers (CPI -U) in the San Francisco area, as stated in their dark fiber agreements. Based on prior Utilities Advisory Committee and City Council direction, these rate changes are routinely included as part of the Budget adoption process and rather than in a separate staff report. This year's change in CPI -U was 2.0 percent, as reported by the Bureau of Labor Statistics. https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/current-year/2021/id-12169.pdf City of Palo Alto Page 8 Stakeholder Engagement The UAC reviewed preliminary financial forecasts for the Electric, Gas, Water and Wastewater Collection utilities at its December 2, 2020 meeting (Staff Report #116498), and the Finance Committee reviewed the same preliminary forecasts at its February 16, 2021 meeting (Staff Report #118649). The UAC reviewed staff's final recommendations for the Wastewater Collection utility at its February 3, 2021 meeting (Staff Report #118821°) and final recommendations for the following utilities at its March 3, 2021 meeting: a. Electric (Staff Report #1188311) b. Gas (Staff Report #1188412) c. Water (Staff Report #1188513) The Wastewater Collection recommendation was passed unanimously by the UAC (7-0). The Electric, Gas and Water recommendations were passed 6-0, with Commissioner Scharff absent. The Finance Committee reviewed staff's proposals for the following utilities at its April 6, 2021 meeting, which were all passed unanimously (3-0): a. Wastewater Collection (Staff Report #1188614) b. Electric (Staff Report #1188715) c. Gas (Staff Report #1188816) d. Water (Staff Report #1188917) The Finance Committee reviewed staff's proposals for the Stormwater Management rate (Staff 8 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-advisory- commission/archived-agenda-and-minutes/agendas-and-minutes-2020/12-02-2020-special/id-11649-item-no- 3.pdf 9 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/current-year/2021/id-11864.pdf 1° https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities- advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2021/02-03-2021-special/id-11882- item-no-1.pdf 11 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities- advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2021/03-03-2021-special/id-11883.pdf 12 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities- advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2021/03-03-2021-special/id-11884.pdf 13 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities- advisory-commission/archived-agenda-and-minutes/agendas-and-minutes-2021/03-03-2021-special/id-11885.pdf 14 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/current-year/2021/id-11886.pdf 15 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/current-year/2021/id-11887.pdf 16 https://www.cityofpa loalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cm rs/cu rrent-year/2021/id-11888. pdf 17 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/current-year/2021/id-11889.pdf City of Palo Alto Page 9 Report #1216918) at its April 20, 2021 meeting, which was passed unanimously (3-0). Timeline Electric, Gas, Dark Fiber and Storm Water rates, as well as Utility Financial Plans The electric, gas, dark fiber and storm drainage rates will be considered at the June 21, 2021 public hearing. Should the City Council take action to approve any or all of these rates, they will become effective July 1, 2021. The City Council will also consider changes to Financial Plans and/or Reserve Management Policies for electric, gas and water utilities, and should they take action to approve any or all of these Plans and/or Policies, they will also become effective July 1, 2021. Resource Impact Normal year sales revenues for the Gas Utility are projected to increase by roughly 3 percent or $1.2 million as a result of the proposed rate increases, not including fluctuations in commodity revenue/cost. The 2.0 percent increase in Stormwater rates is expected to increase annual revenue to the Stormwater Management Fund by approximately $152,000 and, if recommended, will be reflected in the Public Works Department Stormwater Management Fund Fiscal Year 2022 Operating Budget revenue. The 2.0 percent increase in EDF-1 fiber rate is expected to increase annual revenue by approximately $11,000. The Financial Plans and rate trajectories presented for the Electric, Gas, and Water funds are projected to keep their respective Operating Reserves with the minimum and maximum guideline levels over the entire forecast period. Policy Implications Policy Implications related to the proposed Gas and Electric rate actions are detailed fully in the linked Finance Committee reports. There are no policy changes contained in the adoption of the proposed new Dark Fiber and Storm Drainage Rates. Environmental Review Adoption of the attached Financial Plans and budgeted transfers does not meet the California Environmental Quality Act's definition of a project, pursuant to Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(4) and (5), because it is a governmental fiscal and administrative activity which will not cause a direct or indirect physical change in the environment. Adoption of the proposed gas, electric, storm water management fee, and dark fiber rates to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code 18 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/current-year/2021/id-12169.pdf City of Palo Alto Page 10 Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. Attachments: • Attachment A: Electric Resolution • Attachment B: Hydroelectric Resolution • Attachment C: Gas Resolution • Attachment D: Water Resolution • Attachment E: StormWater Resolution • Attachment F: Dark Fiber Resolution • Attachment G: Resolution Back -Up Information City of Palo Alto Page 11 Attachment A * NOT YET APPROVED * Resolution No. Resolution of the Council of the City of Palo Alto Approving the Fiscal Year 2022 Electric Utility Financial Plan and Reserve Transfers and Amending Utility Rate Schedules E -EEC -1 (Export Electricity Compensation), E-NSE-1 (Net Surplus Electricity Compensation Rate), E -2-G (Residential Master -Metered and Small Non -Residential Green Power Electric Service), E -4-G (Medium Non - Residential Green Power Electric Service), and E -7-G (Large Non -Residential Green Power Electric Service) RECITALS A. Each year the City of Palo Alto ("City") regularly assesses the financial position of its utilities with the goal of ensuring adequate revenue to fund operations. This includes making long-term projections of market conditions, the physical condition of the system, and other factors that could affect utility costs, and setting rates adequate to recover these costs. It does this with the goal of providing safe, reliable, and sustainable utility services at competitive rates. The City adopts Financial Plans to summarize these projections. B. The City uses reserves to protect against contingencies and to manage other aspects of its operations, and regularly assesses the adequacy of these reserves and the management practices governing their operation. The status of utility reserves and their management practices are included in Reserves Management Practices attached to and made part of the Financial Plans. C. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges. D. On June 21, 2021, the City Council heard and approved the proposed rate increase at a noticed public hearing. The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The Council hereby approves the FY 2022 Electric Utility Financial Plan. SECTION 2. The Council hereby approves the following transfers as described in the FY 2022 Electric Utility Financial Plan: 1. Approve a transfer of up to $5 million from the Capital Improvement Project Reserve to the Distribution Operations Reserve; 2. Approve a transfer of up to $1 million from the Supply Operations Reserve to the Electric Special Project reserve; 6055487 Utility Electric Rate Schedules FY22 Electric Financial Plan Attachment A * NOT YET APPROVED * 3. Approve an allocation of up to $1.189 million from the Cap and Trade Program Reserve for local decarbonization programs. SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E -EEC -1 (Export Electricity Compensation) is hereby amended to read as attached and incorporated. Utility Rate Schedule E -EEC -1, as amended, shall become effective July 1, 2021. SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-NSE-1 (Net Surplus Electricity Compensation Rate) is hereby amended to read as attached and incorporated. Utility Rate Schedule E-NSE-1, as amended, shall become effective July 1, 2021. SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E -2-G (Residential Master -Metered and Small Non -Residential Green Power Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E -2-G, as amended, shall become effective July 1, 2021. SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E -4-G (Medium Non -Residential Green Power Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E -4-G, as amended, shall become effective July 1, 2021. SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E -7-G (Large Non -Residential Green Power Electric Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule E -7-G, as amended, shall become effective July 1, 2021. SECTION 8. The Council makes the following findings: a. The revenue derived from the adoption of this resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. b. The fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product. // // // // 6055487 Utility Electric Rate Schedules FY22 Electric Financial Plan Attachment A * NOT YET APPROVED * /1 // SECTION 9. The Council finds that approving the Financial Plan does not meet the California Environmental Quality Act's (CEQA) definition of a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment, and therefore, no environmental assessment is required. The Council finds that changing electric rates to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Utilities Director of Administrative Services 6055487 Utility Electric Rate Schedules FY22 Electric Financial Plan Attachment B *NOT YET APPROVED* Resolution No. Resolution of the Council of the City of Palo Alto Amending Electric Rate Schedule E-HRA (Electric Hydro Rate Adjuster) RECITALS A. Hydroelectric Rate Adjustment mechanisms are designed to modify customer rates, either up or down, such that overall sales revenue is aligned with supply costs for the electric utility. B. Hydroelectric Rate Adjustment mechanisms are intended to enable the electric utility to maintain a reasonably stable level of financial reserves, potentially at a lower average level. C. When Council adopted the HRA rate schedule in 2018, an average year's total hydro output level was 548 GWh. A re-evaluation of historical hydro facility output levels found that, based on changes in climatological conditions and environmental policies in recent years, the average annual generation had dropped to 480 GWh. Similarly, the +1- 1 standard deviation levels for the two projects had fallen from 364 GWh and 733 GWh, to 319 GWh and 642 GWh, respectively. D. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges. The Council of the City of Palo Alto hereby RESOLVES as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule E-HRA (Electric Hydro Rate Adjuster) is added as attached and incorporated. Utility Rate Schedule E-HRA, as amended, shall become effective July 1, 2021. SECTION 2. The Council finds that the revenue derived from the adoption of this resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. SECTION 3. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product. 6505522 1 Reference Document: Utility Rate Schedule E-HRA Attachment B *NOT YET APPROVED* SECTION 4. The Council finds that the adoption of this resolution changing electric rates to meet operating expenses and meet financial reserve needs is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Utilities Director of Administrative Services 6505522 2 Reference Document: Utility Rate Schedule E-HRA Attachment C * NOT YET APPROVED * Resolution No. Resolution of the Council of the City of Palo Alto Approving the Fiscal Year 2022 Gas Utility Financial Plan, Including Proposed Transfers and an Amendment to the Gas Utility Reserve Management Practices, and Increasing Gas Rates by Amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master -Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G- 10 (Compressed Natural Gas Service) RECITALS A. Each year the City of Palo Alto ("City") regularly assesses the financial position of its utilities with the goal of ensuring adequate revenue to fund operations. This includes making long-term projections of market conditions, the physical condition of the system, and other factors that could affect utility costs, and setting rates adequate to recover these costs. It does this with the goal of providing safe, reliable, and sustainable utility services at competitive rates. The City adopts Financial Plans to summarize these projections. B. The City uses reserves to protect against contingencies and to manage other aspects of its operations, and regularly assesses the adequacy of these reserves and the management practices governing their operation. The status of utility reserves and their management practices are included in Reserves Management Practices attached to and made part of the Financial Plans. C. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges. D. On June 21, 2021, the City Council heard and approved the proposed rate increase at a noticed public hearing. The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The Council hereby approves the FY 2022 Gas Utility Financial Plan. SECTION 2. The Council hereby approves the transfer of up to $3.9 Million from the Rate Stabilization Reserve to the Operations Reserve, and up $4.542 Million from the Rate Stabilization Reserve to the Cap and Trade Program Reserve, as described in the FY 2022 Gas Utility Financial Plan approved via this resolution. SECTION 3. The Council hereby approves the amendments to the Gas Utility Reserves Management Practices relating to the Cap and Trade Program Reserve. 6055486A Reference Documentation: FY22 Gas Utility Financial Plan Gas Utility Reserve Management Practices Utility Rate Schedules G I, G-2 (i-3 and G -It) Attachment C * NOT YET APPROVED * SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-1 (Residential Gas Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule G-1, as amended, shall become effective July 1, 2021. SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-2 (Residential Master -Metered and Commercial Gas Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule G-2, as amended, shall become effective July 1, 2021. SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-3 (Large Commercial Gas Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule G-3, as amended, shall become effective July 1, 2021. SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule G-10 (Compressed Natural Gas Service Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule G-10, as amended, shall become effective July 1, 2021. SECTION 8. The City Council finds as follows: a. Revenues derived from the gas rates approved by this resolution do not exceed the funds required to provide gas service. b. Revenues derived from the gas rates approved by this resolution shall not be used for any purpose other than providing gas service, and the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. SECTION 9. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product. /1 // // // // 6055486A Reference Documentation FY22 Gas Utility Financial Plan Gas Utility Reserve Management Practices Utility Rate Schedules G-1, G-2, Cr-; and G -I_1) Attachment C * NOT YET APPROVED * /1 SECTION 10. The Council finds that approving the Financial Plan and amending the Gas Utility Reserves Management Practices does not meet the California Environmental Quality Act's (CEQA) definition of a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment, and therefore, no environmental assessment is required. The Council finds that changing gas rates to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Utilities Director of Administrative Services 6055486A Reference Documentation FV GIs Utility Financial Plan Gas Utility Reserve Management Practices Utility Rate Schedules (i I, G-2 G-3 and G -1I) Attachment D * NOT YET APPROVED * Resolution No. Resolution of the Council of the City of Palo Alto Approving the FY 2022 Water Utility Financial Plan and Reserve Transfer RECITALS A. Each year the City of Palo Alto ("City") regularly assesses the financial position of its utilities with the goal of ensuring adequate revenue to fund operations. This includes making long-term projections of market conditions, the physical condition of the system, and other factors that could affect utility costs, and setting rates adequate to recover these costs. The City does this with the goal of providing safe, reliable, and sustainable utility services at competitive rates. The City adopts Financial Plans to summarize these projections. B. The City uses reserves to protect against contingencies and to manage other aspects of its operations, and regularly assesses the adequacy of these reserves and the management practices governing their operation. The status of utility reserves and their management practices are included in Reserves Management Practices attached to and made part of the Financial Plans. The Council of the City of Palo Alto does hereby RESOLVE, as follows: SECTION 1. The Council hereby approves the FY 2022 Water Utility Financial Plan. SECTION 2. The Council hereby approves a transfer from the Operations Reserve to the Capital Improvement Projects Reserve of up to $13,240,000 in FY 2022 as described in the FY 2022 Water Utility Financial Plan. Annual capital program contributions beyond FY 2022 will be approved by Resolution annually. // // // 6055486 Reference Document: FY22 Water Utility Financial Plan Attachment D * NOT YET APPROVED * SECTION 3. The Council finds that the adoption of this resolution does not meet the California Environmental Quality Act's (CEQA) definition of a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment, and therefore, no environmental review is required. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Utilities Director of Administrative Services 6055486 Reference Document: FY22 Water Utility Financial Plan Attachment E NOT YET APPROVED Resolution No. Resolution of the Council of the City of Palo Alto Amending Utility Rate Schedule D-1 (Storm and Surface Water Drainage) Increasing the Storm Water Management Fee by 2.0 Percent Per Month Per Equivalent Residential Unit for Fiscal Year 2022 The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule D-1 (Storm and Surface Water Drainage) is hereby amended to read in accordance with sheet D-1-1, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2021. SECTION 2. The Council finds that this rate increase is being imposed to offset the effects of inflation on labor and material costs pursuant to the annual inflationary fee escalator provision of the Storm Water Management Fee ballot measure, which was approved by a majority of Palo Alto property owners on April 11, 2017. SECTION 3. The Council finds that the revenue derived from the authorized adoption enumerated herein shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. // // // // // // // // // // 6055501 Reference Document: Utility Rate Schedule D-1 1 Attachment E SECTION 4. The Council finds that the adoption of this resolution changing the Storm Water Management Fee to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Public Works Director of Administrative Services 6055501 Reference Document: Utility Rate Schedule D-1 2 Attachment F * NOT YET APPROVED * Resolution No. Resolution of the Council of the City of Palo Alto Adopting a Dark Fiber Rate Increase and Amending Rate Schedules EDF-1 (Dark Fiber Licensing Services) and EDF-2 (Dark Fiber Connection Fees) The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule EDF-1 (Dark Fiber Licensing Services) is hereby amended to read as attached and incorporated. Utility Rate Schedule EDF-1, as amended, shall become effective July 1, 2021. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule EDF-2 (Dark Fiber Connection Fees) is hereby amended to read as attached and incorporated. Utility Rate Schedule EDF-2, as amended, shall become effective July 1, 2021. SECTION 3. The Council finds that the revenue derived from the adoption of this resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. 1/ // // // // // // // // // // // // 6055523 1 Reference Document: Utility Rate Schedules EDF-1 and EDF-2 Attachment F * NOT YET APPROVED * SECTION 4. The Council finds that the adoption of this resolution increasing dark fiber rates by the Consumer Price Index to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Utilities Director of Administrative Services 6055523 2 Reference Document: Utility Rate Schedules EDF-1 and EDF-2 Resolutions are attached to the Staff Report ID 12240 Resolutions are linked within the Staff Report ID 12240 and below for reference Each Resolution has reference information which has been linked below and set inside the Resolution Attachment A: Attachment B: Attachment C: Attachment D: Attachment E: Resolution Approving the Fiscal Year (FY) 2022 Electric Utility Financial Plan, including reserve transfers, and amending Utility Rate Schedules E -EEC, E-NSE, E -2-G, E -4-G and E -7-G Resolution Amending Utility Rate Schedule E-HRA Resolution Approving the FY 2022 Gas Utility Financial Plan, including reserve transfers, amending the Gas Utility Reserve Management Practices, and adopting a Gas Rate Increase by Amending Utility Rate Schedules G-1, G-2, G-3 and G-10 Resolution Approving the FY 2022 Water Utility Financial Plan, including reserve transfers Resolution Amending Utility Rate Schedule D-1 increasing the Storm Water Management Fee by 2.0 percent per month per Equivalent Residential Unit for FY 2022 Attachment F: Resolution Amending Utility Rate Schedules EDF-1 and EDF-2 to increase Dark Fiber Rates 2.0 percent Linked Al: Linked A2: Linked B1: Linked C1: Linked C2: Linked C3: Linked D1: Linked E1: Linked F1: Fiscal Year (FY) 2022 Electric Utility Financial Plan Utility Rate Schedules E -EEC, E-NSE, E -2-G, E -4-G and E -7-G Utility Rate Schedule E-HRA FY 2022 Gas Utility Financial Plan Gas Utility Reserve Management Practices Utility Rate Schedules G-1, G-2, G-3 and G-10 FY 2022 Water Utility Financial Plan Utility Rate Schedule D-1 Utility Rate Schedules EDF-1 and EDF-2 CVTY 0 PALO ALTO City of Palo Alto (ID # 11740) City Council Staff Report Report Type: Action Items Meeting Date: 6/21/2021 Summary Title: Supercharger License Agreement with Tesla, Inc. Title: Approve and Authorize the City Manager or Their Designee to Execute a Seven-year License Agreement With Two Five-year Renewal Options and Monthly Rent Payments of $2,100 Between the City and Tesla, Inc. for a 19 - stall Tesla Supercharging Station in the Bryant/Lytton Garage at 445 Bryant Street; Review and Provide Direction on a Draft Administrative Policy on Unsolicited Proposals From: City Manager Lead Department: Administrative Services Recommendation Staff recommends that the City Council: 1. Approve and authorize the City Manager, or their designee, to sign a license agreement (Attachment A), with Tesla, Inc.to install and operate a 19 -stall Tesla Supercharging Station within a portion of the city -owned Bryant/Lytton Garage located at 445 Bryant Street for an initial term of seven years, with two options to extend for five years each, and a monthly rent of $2,100; and 2. Delegate authority to the City Manager, or their designee, to execute on behalf of the City, any documents necessary to administer the agreement. 3. Review the attached framework regarding Unsolicited Proposals for Use of City Property and provide direction to staff. Executive Summary Achieving the City's Sustainability and Climate Action Plan is heavily dependent on dramatic growth in electric vehicles. A key tool for supporting this growth, particularly among multifamily and rental residents, is the availability of charging in centrally located public facilities. Convenient, fast charging provides an amenity for customers that supports economic recovery and growth of downtown retail and service businesses. The recommended agreement advances all of these goals. On January 19, 2021, City Council authorized Staff in Closed Session to negotiate, and potentially return for Council approval, a license agreement to permit Tesla to use and occupy on a non-exclusive basis a portion of the third floor of the Bryant/Lytton Garage, located at 445 Bryant Street, for a new Tesla V3 Supercharging Station. Staff has since negotiated a seven - City of Palo Alto Page 1 year license agreement with two automatic five-year renewal options. The monthly rent will be $2,100 and Tesla will be responsible for the cost of utilities and maintenance of the Supercharger Station. The City's normal responsibility to maintain the common areas of the Property will apply to the paved portions of the Premises. This report also outlines a framework for handling of unsolicited proposals for the use of City property providing a predictable process while allowing for new innovations or unexpected partnerships in the interest of the City's goals. Background The City of Palo Alto electric vehicle market share continues to be dominated by Tesla vehicles, with an estimated 50 percent market share. City staff has been in discussion with Tesla on prospective supercharger locations for more than two years. While initially focused on providing origin -to -destination connectivity, Tesla's supercharging priorities have evolved to include urban area chargers to support Tesla drivers' ability to conduct daily activities while charging. In addition, Tesla recognizes that home -based charging is unavailable for many renters and that nearly 50 percent of Palo Alto residents are renters. There is an existing 12 -stall, Level 2, ChargePoint and PowerFlex charging station located on the second floor of the Bryant/Lytton Garage, directly beneath Tesla's proposed location. These stations on the second level were heavily used by Tesla vehicles prior to the pandemic. Providing superchargers on the third floor would draw Tesla traffic up to the third floor, allowing for additional EV capacity for all types of vehicles. This installation would provide an additional amenity to downtown customers and residents, and support the City's sustainability goals. The existing supercharger station nearest the Bryant/Lytton Garage is the 20 -stall Tesla Supercharging Station at the Stanford Shopping Center. That station opened on November 4, 2019 and is reportedly one of Tesla's busiest stations. Given downtown destinations and more than 500 residential parcels within a quarter -mile, Tesla is optimistic that the proposed Bryant/Lytton Supercharging Station will support hundreds and eventually thousands of monthly visits as an amenity for Tesla owners locally and from all over the Bay Area. This additional amenity will support recovery efforts by providing another destination to attract visitors to support downtown retail businesses as well as prospectively the fiscal benefit of Tesla sales and support for the electrification and mobility focus priorities of the City's sustainability goals. Discussion Staff negotiated a license agreement (Attachment A) with Tesla under the basic terms listed below. Premises: The premises consist of approximately 200 to 400 square feet of space on the exterior of the first floor of the garage for equipment and 21 existing parking spaces located on the third floor of the Bryant/Lytton Garage that will be converted to 19 Supercharger stalls, as shown in the image below. The Supercharger stalls are wider than the existing stalls, resulting in a loss of two parking spaces due to adjusted stripping, but all stalls will continue to be available for general parking in addition to Tesla charging. City of Palo Alto Page 2 City of Palo Alto Page 3 Term: Seven-year initial term automatically extended for two additional consecutive five-year terms, provided that either party may terminate the agreement at any time after the initial term for any reason with at least 90 days' written notice. This is to provide assurance to prospective vehicle buyers living or working downtown that the station would not be at -risk of removal in the near term. Rent: $2,100 per month. Utilities: Testa arranges and pays. Maintenance: Testa is responsible for maintaining the Supercharger Station and Premises, subject to City's normal responsibility to maintain the common areas of the garage which will apply to the paved portions of the Premises. The project's scope of work is listed below. • Install five Testa Supercharger cabinets • Install 19 Testa V3 Supercharger posts • Install one Level 2 charger on the second floor • Upgrade one utility transformer • Install one precast transformer pad • Install one switchgear assembly City of Palo Alto Page 4 • Install one poured in place switchgear pad • Install one transition cabinet • Install one poured in place cabinet pad • Install Testa provided signage, conductors, and precast foundations • Restripe parking stalls • Demo and resurface curb • Route four, five -inch conduits to a pad mounted switch near the corner of Bryant Street and Lytton Avenue The City will be responsible for upgrading the transformer on the Property, adjacent to the Florence Street entrance, at its cost using Low Carbon Fuel Standard (LCFS) funds, up to a maximum amount of $200,000. Testa will be responsible for excess costs. In addition to the proposed License Agreement, staff have attached a draft framework regarding Response to Unsolicited Proposals for Use of City Property, which sets forth guidelines for staff when responding to similar proposals in the future. The draft framework will be incorporated into the City's Policy and Procedures manual, which is adopted and updated from time to time under the City Manager's authority. Staff welcome any Council feedback on the draft framework. Staff plans to use this framework to update and modernize an existing policy regarding the leasing of City property last updated in October 2006. Timeline Tesla will need to obtain permits, approval, and insurance, as well as conduct a walk through with City prior to beginning the construction. The project is expected to be completed and open to the public within 180 days from commencement. Testa has committed to keep the City informed as to the status and completion and will promptly notify City of any delays outside of Tesla's control. Resource Impact The City will upgrade the existing transformer at a current estimated cost of between $150,000 to $200,000 and is recommended to be funded by Low Carbon Fuel Standard (LCFS) funds appropriated in the Electric Fund. The ongoing operational revenue to the City from Supercharging Station electricity usage will benefit the Electric Fund, sales taxes associated with electric vehicle sales will benefit the General Fund, and rental payments of $2,100 will benefit the General Fund. Staff will return to Council after the installation is complete to recognize the rental revenue in FY 2022, presumably as part of the FY 2022 Mid -Year Budget Review. Rental revenue in subsequent years will be budgeted as part of the annual budget process, subject to Council's approval. As a comparison, annual parking permits available to employees of businesses in the downtown parking assessment district for long-term parking is currently $806, for 21 parking spaces, that equates to $1,410 per month. Policy Implications The Bryant/Lytton garage was funded by the issuance of tax-exempt debt serviced by receipt from an assessment fee in the downtown core. Therefore, restrictions in public use versus private use must be evaluated. As a non-exclusive agreement, the City's Bond Counsel, Jones Hall, has determined that the installation of the Supercharging Station under the proposed terms would be allowable under the City's tax-exempt financing obligations. City of Palo Alto Page 5 Entering into a new license agreement with Tesla to install and operate a Supercharging Station is consistent with the Sustainability Implementation Plan 2018 — 2020 goals to accelerate electric vehicle growth for both Palo Alto and inbound vehicles and make "Going EV" more convenient and economical than using fossil fueled vehicles. The agreement is also consistent with the strategic move to buildout public infrastructure to support rising EV use and key action to publicize CPAU-funded transformer upgrades and expanding EV charging infrastructure on publicly -owned property. Article VII, Section 7 of the Charter of the City of Palo Alto, Palo Alto (Lease of city land), permits Council to lease real property owned by the city for a period not to exceed fifty years. In addition to the attached framework on Response to Unsolicited Proposals, staff is in the process of modernizing other policies and procedures related to leased use of City land/facilities to ensure that decisions regarding the leased use of City real property are made effectively and efficiently. Stakeholder Engagement As the proposal by Tesla was unsolicited and there is currently no framework in place to respond to unsolicited proposals, Staff is proposing the attached policy "Response to Unsolicited Proposals" for Council consideration and potential future approval to respond to similar proposals (Attachment B). The policy respects private party interests while also reinforcing public transparency as part of the decision -making process. Environmental Review Approval of the Agreement does not require review under the California Environmental Quality Act for the installation of EV Chargers, which is categorically exempt pursuant to CEQA Guidelines section 15303 (construction and location of limited numbers of new, small facilities and structures) and CEQA Guidelines section 15301 (existing facilities). Attachments: • Attachment A: Supercharger License Agreement • Attachment B: Draft Framework - Response to Unsolicited Proposals City of Palo Alto Page 6 DocuSign Envelope ID: F3A117D2-7BA6-4F7E-8CC7-E13387EDBEEA Attachment A SUPERCHARGER LICENSE AGREEMENT This Supercharger License Agreement (this "Agreement") is effective as of the date last signed below ("Effective Date") by and between the City of Palo Alto, a California chartered municipal corporation ("City") and Testa, Inc., a Delaware corporation ("Testa"). Tesla and City are each referred to herein as a "Party" and collectively as the "Parties." WHEREAS, Tesla desires to construct and operate an electric vehicle charging station at the Property (as defined below) owned by City; and WHEREAS, Tesla, at its sole cost and expense, desires to construct an electric vehicle charging station at the Property and City desires to grant a license to Tesla to use the Premises (as defined below) pursuant to the terms set forth herein. NOW THEREFORE, in consideration of the above and for other good and valuable consideration, the receipt and legal sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. CONTACT INFORMATION: City: City of Palo Alto 250 Hamilton Ave Palo Alto, CA 94301 Attention: Real Property Manager Phone: 650-329-2264 With a copy to: Email: real.property@cityofpaloalto.org Testa: Testa, Inc. 3500 Deer Creek Road Palo Alto, CA 94304 Attention: Supercharger Team Phone: (650) 681-5000 With a copy to: Email: superchargerhost@tesla.com 24 -hour Technical Support & Service: 877-79-TESLA (877-798-3752) 2. PREMISES: City hereby grants to Testa a revocable (after the Initial Term only and pursuant to the express terms of this Agreement), personal, non-exclusive, and non -possessory license (upon the terms expressly provided herein) to enter upon, use, encroach, and improve twenty-one (21) parking spaces, up to five (5) feet of additional parking width to provide disability access located on the 3rd floor of the garage and approximately 200-400 square feet of space for equipment on the exterior of the 1St floor of the garage (the "Premises") on the property commonly known as the Bryant/Lytton Garage, located at 445 Bryant St, Palo Alto, CA 94301 and as depicted on Exhibit A attached hereto (the "Property") for the sole purposes of building and operating a Supercharger Station (as defined in Exhibit B) subject to the terms and conditions of this Agreement. The right of access across the Property to and from the Premises shall be the most direct route and/or least likely to interfere with City and public uses. Testa accepts the Premises "as is" in the current condition as on the Entry Date and the City shall not have any obligation to make any alterations, repairs, maintenance or improvements to the Premises except for the City's Work. 3. FOOTPRINT: Within the Premises, a total of nineteen (19) parking spaces shall be outfitted with Superchargers (as defined in Exhibit B). The nineteen (19) parking spaces shall serve as both Page 1 v.20181012 Attachment A - 1 DocuSign Envelope ID: F3A117D2-7BA6-4F7E-8CC7-E13387EDBEEA Attachment A charging stalls for electric vehicles and general parking for all vehicles ("Enabled Stalls"). The Enabled Stalls shall be clearly marked on the Signage (as defined in Section 16). For the avoidance of doubt, the Premises shall consist of twenty-one (21) parking spaces to be reconfigured to nineteen (19) spaces which are outfitted with Superchargers. 4. CONSTRUCTION AND ALTERATIONS: Testa shall provide notice to City not less than (a) one (1) business day prior to any work in and to the Premises and (b) three (3) business days prior to any drilling, excavating, and other work in connection with any portion of the Premises likely to cause material noise and/or vibrations within the Property, and in all events Tesla shall cause its contractors to perform such work as expeditiously as possible in order to minimize the interference with the use and quiet enjoyment of the Property. Tesla shall, at its sole cost, construct, maintain, alter, and remove the Supercharger Station in accordance with the terms of this Agreement ("Tesla's Work"). In addition to Tesla's Work, Tesla shall outfit one (1) parking space on the 2nd floor of the Property with a Level 2 connector ("ADA Stall") for the benefit of the City and Property in accordance with the Approved Plans (as defined below); provided that the City acknowledges and agrees that Testa shall have no obligations, including but not limited to, any indemnity, utility, or maintenance obligations arising from the ADA Stall or the Level 2 connector. During the Term (as defined below), the City shall be solely responsible for all matters arising from or related to the ADA Stall. Tesla acknowledges that Tesla's Work and the work at the ADA Stall shall only begin after: (a) City has approved the plans and specifications for Tesla's Work and the ADA Stall, including equipment and signage locations and the approval of Tesla's general contractor by City, such approval not to be unreasonably withheld, conditioned, or delayed (the "Approved Plans"); (b) Tesla has obtained all permits and approvals required by applicable governing bodies for Tesla's Work and the work related to the ADA Stall (c) Testa has provided proof of insurance, as more specifically described in Section 24; and (d) Testa and City have conducted an onsite walk-through and agreed on a construction schedule and the storage locations of any equipment and materials required for the performance of Tesla's Work (including the work Tesla is performing at the ADA Stall) following the completion of City's Work. Any alterations to the construction schedule shall be approved in advance by City; in the event of alterations to the construction schedule, Testa shall additionally provide notice to City not less than three (3) business days prior to any drilling, excavating, and other work in connection with any portion of the Premises likely to cause material noise and/or vibrations within the Property. City's approval of the Approved Plans, any alterations to the Approved Plans or Supercharger Station, and acceptance of the ADA Stall may be by e-mail from City Manager or designee. Testa shall promptly repair any damage to the Property to the extent caused by Tesla, its agents, contractors and employees while performing Tesla's Work or the installation of the ADA Stall and restore the Property. Testa shall perform Tesla's Work in accordance with the construction schedule and all applicable Laws (as defined in Section 34), including any prevailing wage requirements, and during the performance of Tesla's Work Tesla at the Property, Tesla shall use commercially reasonable efforts to minimize any impairment to the ingress, egress, business operations or quiet enjoyment of the Property by the public or the City's other tenants or occupants. Prior to the Entry Date, City will perform such work to deliver the Premises in compliance with Laws and make such installations, if any, in the Property as are expressly set forth in Exhibit C as the responsibility of City (such work and installations are called "City's Work" and Exhibit C is called the "Work Letter"). The cost of City's Work shall be paid as provided in the Work Letter. Page 2 v.20181012 Attachment A - 2 DocuSign Envelope ID: F3A117D2-7BA6-4F7E-8CC7-E13387EDBEEA Attachment A 5. ENTRY DATE: The first date that Testa may enter the Premises and Property to begin Tesla's Work shall be mutually agreed upon by both Parties and such approval shall not be unreasonably withheld, conditioned, or delayed by either Party (the "Entry Date"). 6. COMMENCEMENT DATE: Testa shall open the Supercharger Station to the public (the "Commencement Date") within one hundred eighty (180) days following the Entry Date, provided that such time shall be extended to the extent a delay is due to permitting, utility, or other requirements beyond Tesla's control, or is due to Force Majeure (as defined in Section 32). Testa shall keep City informed as to the status and completion of Tesla's Work and shall promptly notify City of any delays outside of Tesla's control that may reasonably cause Tesla's Work to exceed such one hundred eighty (180) day period. Testa shall deliver written notice to City promptly following the Commencement Date to confirm such date for recordkeeping purposes. In the event that the Commencement Date has not occurred within fifteen (15) months following the Entry Date, City may immediately terminate this Agreement in its sole discretion upon at least thirty (30) days written notice to Testa. 7. TERM AND TERMINATION: The initial term of this Agreement shall expire seven (7) years from the last day of the month in which the Commencement Date occurs (the "Initial Term"). At the end of the Initial Term, this Agreement shall automatically renew for two (2) consecutive five (5) year extensions (each a "Renewal Term" and together with the Initial Term, the "Term"), upon the same terms contained in this Agreement, provided that no Event of Default (as defined in Section 17) by Testa exists at the time of extension; and provided further that either Party may terminate this Agreement at any time after the Initial Term or during any Renewal Term for any reason by sending the other Party at least ninety (90) days' written notice of its intention to terminate this Agreement. 8. REMOVAL: Testa shall, at its' sole cost, remove the Trade Fixtures (as defined in Exhibit B) promptly following termination of this Agreement and restore the Premises to a condition commensurate with the rest of the Property, subject to exceptions for reasonable wear and tear and, except to the extent caused by Testa, damage by casualty or condemnation. City agrees that all Trade Fixtures and related intellectual property are and shall remain the personal property of Testa. The Infrastructure (as defined in Exhibit B) shall be left in good and safe condition and shall become the property of City upon termination of this Agreement. If Testa fails to remove the Trade Fixtures within thirty (30) days of the termination or expiration of this Agreement, then City shall deliver written notice to Testa, and if Testa fails to commence the diligent removal of the Trade Fixtures within ten (10) days of the notice, then City shall have the right (without any obligation) to remove, ship and/or store the Trade Fixtures and restore the Premises at Tesla's sole cost and expense. If Testa fails to perform its obligations as provided in this Section 8, Testa shall reimburse City for the reasonable costs so incurred within thirty (30) days written notice, which notice shall be accompanied by paid receipts. 9. INTENTIONALLY OMITTED. 10. RENT: Testa will pay the City Two Thousand One Hundred Dollars ($2,100.00) per month (the "Rent") for the Premises in advance on the first business day of each calendar month during the Term. If the Commencement Date is any day other than the first business day of a month, the first rent payment shall include payment for the partial month in which the Commencement Date occurs, prorated based on the number of days in such month. All Rent payments shall be made Page 3 v.20181012 Attachment A - 3 DocuSign Envelope ID: F3A117D2-7BA6-4F7E-8CC7-E13387EDBEEA Attachment A either electronically to an account specified by City to Testa in writing, or by check to the City at City of Palo Alto, Attention: Revenue Collections, 250 Hamilton Avenue, Palo Alto, CA 94301, or to such other places as City may from time to time designate in a written notice to Testa. Testa hereby acknowledges that late payment by Testa of Rent will cause City to incur costs not contemplated by this Agreement, the exact amount of which will be extremely difficult to ascertain. Accordingly, if any Rent shall not be received by City within ten (10) days after such amount is due, then, Testa shall pay to City a one-time late charge equal to ten percent (10%) of said Rent as a late charge. The Parties hereby agree that such late charge represents a fair and reasonable estimate of the costs City will incur by reason of such late payment. Acceptance of such late charge by City shall in no event constitute a waiver of Tesla's Event of Default (as defined in Section 17) with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies granted hereunder. 11. UTILITIES: Testa agrees to arrange and pay the charges for all Tesla-related utility services provided or used in or at the Premises during the Term. Testa shall pay directly to the utility company the cost of installation of any and all such Tesla-related utility services and shall arrange to have the utility service separately metered. City shall not be responsible for any damages suffered by Testa in connection with the quality, quantity or interruption of utility service, unless the cause of the disruption or damage was City's gross negligence or intentional misconduct. 12. USE: Testa shall use and occupy the Premises during the Term for a Supercharger Station and incidental purposes ("Permitted Use"). Testa is authorized to operate and collect payment for use of the Supercharger Station year round, twenty-four (24) hours per day and seven (7) days per week. City acknowledges and agrees that the Premises shall not be outfitted with non -Testa charging equipment; provided, however, nothing herein shall be interpreted to prevent City from installing non -Testa charging equipment at any location on the Property, including immediately adjacent to the Premises. Testa understands, acknowledges, accepts and agrees that City is entering into this Agreement in its capacity as a property owner with a proprietary interest in the Premises and not as a regulatory agency with police powers. Nothing herein shall limit in any way Tesla's obligation to obtain any required regulatory approvals from City departments, boards or commissions or other governmental regulatory authorities or limit in any way City's exercise of its police powers. 13. MAINTENANCE AND TEMPORARY IMPAIRMENT: Testa shall be responsible for maintaining the Supercharger Station (including repair and replacement of equipment, as necessary) at its' sole cost, and City shall have no liability for damage to the Supercharger Station unless caused by City's gross negligence or willful misconduct. City's normal responsibility to maintain the common areas of the Property which shall also only apply to the paved portions of the Premises and City agrees to coordinate maintenance that will impair the Premises with Testa; provided that City shall use commercially reasonable efforts to minimize any impairment of the Premises, including, without limitation, by limiting such impairment to times of day and days of the week that are not busy charging periods, and except in the case routine maintenance that will not impair the Premises or an emergency, City shall provide Testa at least three (3) days advance written notice stating the date, time, duration and scope of the planned impairment. 14. CITY COVENANTS: City represents that: (a) it is the owner of the Property and has the power and authority to enter into this Agreement on the terms hereof; (b) it has obtained any required consents to enter into this Agreement; (c) during the Term, it will not lease, license or commit the Page 4 v.20181012 Attachment A - 4 DocuSign Envelope ID: F3A117D2-7BA6-4F7E-8CC7-E13387EDBEEA Attachment A parking spaces within the Premises to a third party; (d) the Property is subject to no conditions, restrictions or covenants incompatible with the Permitted Use; and (e) this Agreement does not violate any agreement, lease or other commitment by which City is bound. Nothing herein shall prevent City from installing non -Testa charging equipment at any location on the Property, including immediately adjacent to the Premises; provided that such equipment shall not be installed within the Premises. City agrees to notify Testa within a commercially reasonable time if it obtains knowledge of a needed repair to the Supercharger Station. If non -Testa motorists repeatedly park in the Enabled Stalls, then the Parties shall reasonably cooperate to explore, but City shall have no obligation to approve an effective strategy for preventing such impairment if the City determines, in its sole discretion, that such strategies violate applicable laws or will materially impair the Property or access thereto, which may include, without limitation, alternative signage and painted asphalt; provided that, if a strategy is approved, Testa shall, at its sole cost and expense, implement such strategy in compliance with all Laws. 15. PAYMENTS TO CITY: Nothing in this Agreement limits City's ability to collect fees for parking or otherwise regulate public access to the Premises or Property subject to Section 10, provided, however, that City shall have no right to request or accept payment from Testa, Testa customers or any other third -parties for Testa customers' use of the Supercharger Station itself. 16. SIGNAGE: Subject to applicable Laws (as defined in Section 34), Testa shall install signage for the Enabled Stalls substantially similar to the signage represented in Exhibit B ("Signage"). Any material revisions or additions to the Signage shall be subject to City approval, which shall not be unreasonably withheld, conditioned, or delayed. 17. DEFAULT: Each of the following shall constitute an "Event of Default" under this Agreement: A. Breach: The failure by either Party to perform or observe any material term or condition of this Agreement and such failure continues for a period of thirty (30) days after receipt of written notice thereof from the other Party, provided, however, that if the nature of such default is such that it cannot reasonably be cured within such thirty (30) day period and the defaulting Party commences to cure within the thirty (30) day period and proceeds with diligence and continuity, then such Party shall have additional time to cure as is reasonably required. Notwithstanding the foregoing, Tesla's failure to pay Rent when due that continues for at least ten (10) days shall be an Event of Default. B. Bankruptcy; Insolvency: The appointment of a receiver or trustee to take possession of all or substantially all of the assets of Testa located at the Premises if possession is not restored to Testa within sixty (60) days; or a general assignment by Testa for the benefit of creditors; or any action or proceeding is commenced by or against Testa under any insolvency or bankruptcy act, or under any other statute or regulation having as its purpose the protection of creditors and, in the case of actions filed against Testa, is not discharged within sixty (60) days. 18. REMEDIES: City and Testa acknowledge and agree that each Party shall have all remedies available at law or in equity if an Event of Default by the other Party has occurred and is continuing. In addition, if an Event of Default by Testa has occurred and is continuing, then City, may at its option: (a) continue this Agreement in effect by not terminating Tesla's right to use said Premises and thereby be entitled to enforce all City's rights and remedies under this Agreement; Page 5 v.20181012 Attachment A - 5 DocuSign Envelope ID: F3A117D2-7BA6-4F7E-8CC7-E13387EDBEEA Attachment A (b) terminate this Agreement and City shall be entitled to recover from Testa the unpaid Rent which had been earned at the time of termination and any cost of recovering possession of the Premises, including necessary renovation and alteration of the Premises as more particularly described in Section 8, and any reasonable and documented attorneys' fees, and/or (c) bring an action to recover and regain possession of said Premises in the manner provided by the laws of eviction of the state where the Premises are located then in effect. 19. EXCLUSIONS: Notwithstanding anything herein to the contrary, each Party expressly releases the other from any claims for, speculative, indirect, consequential or punitive damages, including any lost sales or profits of the other Party. 20. ASSIGNMENT: Testa shall not assign this Agreement voluntarily or by operation of law, or any right hereunder, nor sublet the Premises or any part thereof, without the prior written consent of City; provided that the foregoing prohibition shall not limit Tesla's ability to transfer this Agreement to a Testa Affiliate. "Affiliate" means an entity which: (a) controls or is controlled by a Party hereto or (b) is under common control with a Party hereto: where "control" means that more than fifty percent (>50%) of the controlled entity's shares or ownership interest representing the right to make decisions for such entity are owned or controlled, directly or indirectly, by the controlling entity. 21. INDEMNIFICATION: A. City: Except to the extent a claim arises from any negligence or willful misconduct of a City Indemnified Party, Testa hereby agrees to indemnify, hold harmless and defend City, its elected and appointed officials, officers, managers, members, employees, agents and representatives (each a "City Indemnified Party") from and against any and all demands, claims, legal or administrative proceedings, penalties, fines, judgments, losses, and liabilities ("Claims"), including court costs, experts' fees, and reasonable attorneys' fees, arising out of third party claims related to (a) any injury to or death of any person or damage to or destruction of any property caused by the use of the Trade Fixtures (b) Tesla's breach of this Agreement, (c) Tesla's Work (excluding the ADA Stall and Level 2 Connector) the use of the Premise or any activities conducted thereon by Testa, its agents, contractor, employees or subcontractors. For the avoidance of doubt, Testa shall have no obligation to indemnify the City for any claims related to the ADA Stall or the Level 2 connector. B. Testa: Except to the extent a claim arises from any negligence or willful misconduct of a Testa Indemnified Party, City hereby agrees to indemnify, hold harmless and defend Testa, its Affiliates and their respective directors, officers, managers, members, employees, agents and representatives (each a "Testa Indemnified Party") from all Claims arising out of or alleged to have arisen out of third party claims related to: (a) City's entry onto the Premises or the City's Work; or (b) City's breach of this Agreement. 22. LIENS: Within thirty (30) days of written notice thereof from City, Testa shall pay all claims relating to a lien arising from labor or materials due to Tesla's Work. If Testa shall contest the validity of any such lien, claim or demand, then Testa shall, at its sole expense indemnify, defend, and hold City harmless from and against any third party costs related to or resulting from such lien filed against the Premises or Property due to Tesla's Work except to the extent caused by the negligence or willfully misconduct of the City. In the event Testa fails, within thirty (30) days of Page 6 v.20181012 Attachment A - 6 DocuSign Envelope ID: F3A117D2-7BA6-4F7E-8CC7-E13387EDBEEA Attachment A written notice from City, to pay such claims or inform City of its intent to contest such claims and indemnify City in accordance with Section 21A, City may, in its sole discretion, take all commercially reasonable steps to remove a lien from the Property and recover the reasonable and documented costs thereof from Tesla. 23. DESTRUCTION: Any total destruction of the Premises shall, at City's or Tesla's written election within thirty (30) days of such destruction, terminate this Agreement. 24. INSURANCE: Tesla shall carry commercial general liability insurance with limits of not less than Two Million Five Hundred Thousand dollars ($2,500,000) for bodily injury or death and property damage and an umbrella insurance policy of not less than Five Million dollars ($5,000,000). The total limits required above may be met by any combination of primary and excess liability insurance. A certificate evidencing such insurance shall be delivered to City upon the execution of this Agreement and from time to time thereafter as may be requested by City. Upon request, Tesla shall include City as additional insured on its commercial general liability and umbrella insurance policies. Tesla will also carry worker's compensation insurance in accordance with state and federal law. 25. PUBLICITY: Neither Party will use the other Party's name, trademark or logo without obtaining the other Party's prior written consent. 26. ENVIRONMENTAL MATTERS: "Hazardous Substance" or "Hazardous Material" means any substance, material, waste, pollutant or contaminant, which is regulated by law now or in the future as being hazardous, toxic, flammable, carcinogenic, explosive or radioactive, or is potentially injurious to the public health, safety or welfare or the environment. Tesla shall not use, produce, manage, contain, store, treat or dispose of Hazardous Substances in, on or about the Premises, provided that Tesla's internal combustion engine vehicles may access the property, in compliance with all applicable Laws, during the initial construction of Tesla's Work; without the express prior written consent of City and timely compliance with all applicable Laws. City may condition its consent as City reasonably deems necessary to protect itself, the public, the Premises and/or the environment against damage, contamination, injury and/or liability related to Hazardous Material. In the event that any Hazardous Material is spilled, leaked or otherwise released on the Premises or its vicinity caused by the Trade Fixtures, or by Tesla, its agents, contractor, employees or subcontractors, Tesla shall, at its sole costs, promptly undertake all necessary actions to remediate or remove such contaminating material or substance from the Premises or vicinity thereof in compliance with all applicable laws and requirements at no cost to City. City represents and warrants that the Premises shall be delivered free of environmental contamination that violates any applicable environmental law. City agrees that it will indemnify and hold Tesla harmless from all costs from, and Tesla shall have no liability for, any environmental contamination of the Property, unless caused by Tesla, its agents, employees or contractors or as the result of the use of the Trade Fixtures, as provided herein. During the Term, City is responsible for remediating any pre-existing contamination and any contamination not caused by Tesla, its agents, contractors, subcontractors or employees, but only to the extent required by applicable environmental law. Page 7 v.20181012 Attachment A - 7 DocuSign Envelope ID: F3A117D2-7BA6-4F7E-8CC7-E13387EDBEEA Attachment A 27. NOTICES: All notices, demands and approvals shall be in writing and shall be delivered by prepaid first class certified mail, or by a reputable overnight delivery service, to the addresses of the respective Party as specified in Section 1. Notice given by certified mail shall be deemed given on the second business day after deposit in the United States Mail, and any notice given by overnight delivery service shall be deemed given on the next business day after deposit with such overnight delivery service. Copies of notices, demands and approvals shall also be delivered if a "copy to" e-mail or other address is specified in Section 1. Notwithstanding the foregoing, as provided in Section 4, City may approve the plans and specifications by e-mail. Either Party may change their respective address for notices by giving written notice of such new address in accordance with the provisions of this Section 27. 28. BROKERS: Each Party represents to the other Party that it has not dealt with any broker and each Party hereby agrees to indemnify and hold the other Party harmless from all losses and liabilities, including court costs and reasonable attorneys' fees, arising out of any claims for commissions or fees related to any broker, finder or similar person with whom the indemnifying Party has dealt, or purportedly has dealt, in connection with this Agreement. 29. SALE OR TRANSFER: In the event of a sale or transfer of all or a portion of City's interest in the Property or Premises while this Agreement is in effect, Tesla's rights shall be conveyed with the Property or Premises and City warrants that any transferee shall be bound by all terms and conditions of this Agreement, and shall obtain any necessary documents to confirm such assignment. 30. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon and shall inure to the benefit of City and Tesla and their respective successors and assigns. 31. SUBORDINATION: This Agreement is subject to and subordinate to all ground or superior leases and to all mortgages which may now or hereafter affect such leases or the real property of which the Premises are a part and to all renewals, modifications, consolidations, replacements and extensions of any such ground or superior leases and mortgages; provided that Tesla's rights under this Agreement shall not be disturbed by such subordination so long as no Event of Default by Tesla exists. This Section 31 shall be self -operative and no further instrument of subordination or non -disturbance shall be required by any ground or superior lessor or by any mortgagee, affecting any lease or the Property. 32. FORCE MAJEURE: If either Party's performance of its obligations under this Agreement is delayed by Force Majeure, then such Party's time of performance will be extended by a corresponding number of days; provided that Force Majeure shall not excuse timely payments when due under this Agreement, except that Rent shall abate to the extent the Permitted Use is completely frustrated as a direct result of a Force Majeure event in spite of Tesla's good faith and diligent efforts. As used in this Agreement, "Force Majeure" means an act, event, condition or requirement beyond such party's reasonable control, including, without limitation, labor disputes, governmental restrictions, natural disasters, fire, flood, inclement weather, explosion, embargoes, war, terrorism, civil disturbance or other similar events. 33. INCENTIVES: City agrees that Tesla shall own and receive the benefit of any Incentives derived from the construction, ownership, use and operation of the Supercharger Station. City will cooperate with Tesla in obtaining all Incentives, provided that City is not obligated to incur any Page 8 v.20181012 Attachment A - 8 DocuSign Envelope ID: F3A117D2-7BA6-4F7E-8CC7-E13387EDBEEA Attachment A out-of-pocket costs in doing so unless reimbursed by Testa. If any Incentives are paid directly to City, City agrees to immediately pay such amounts over to Testa. "Incentives" means (i) electric vehicle charging or renewable energy credits or certificates, carbon credits and any similar environmental or pollution allowances, credits or reporting rights, (ii) rebates or other payments based in whole or in part on the cost or size of equipment, (iii) performance -based incentives paid as periodic payments, (iv) tax credits, grants or benefits, and (v) any other attributes, commodities, revenue streams or payments, in each of (i) through (v) under any present or future law, standard or program, or paid by a utility or any governmental, regulatory or administrative authority. 34. COMPLIANCE WITH LAW: Each Party shall comply with all applicable codes, laws and ordinances ("Laws") in fulfilling its respective obligations under this Agreement. Each Party represents that it is in good standing under the Laws of the state of its organization. To the extent the Infrastructure or Trade Fixtures installed by Testa are considered a "public work," as defined in Labor Code § 1720, et. seq., Testa shall comply with the state prevailing wage law, California Labor Code §§ 1720 et seq. and 8 CCR § 16000 et seq. for any "public work" (as that term is defined in the statutes) performed pursuant to this Agreement. For purposes of compliance with prevailing wage law, Testa shall comply with provisions applicable to an awarding body. Compliance with state prevailing wage law includes, without limitation, payment of at least prevailing rates as determined by the Director of Industrial Relations, overtime and working hour requirements, apprenticeship obligations, payroll record -keeping requirements, and other obligations as required by law. Each Party accepts and shall enforce the statements of policy set for in Palo Alto Municipal Code Section 9.73.010 with respect to all of the activities conducted upon the Premises and Property. The Premises have undergone an inspection by a Certified Access Specialist (CASp), and it was determined that the Premises did not meet all applicable construction -related accessibility standards pursuant to California Civil Code §55.51 et seq. To the best of City's knowledge, there have been only minor modifications or alterations completed or commenced between the date of the inspection and the Effective Date which have further impacted the Premises' compliance with construction -related accessibility standards. City has provided, at least forty-eight (48) hours prior to execution of this Agreement, a copy of such CASp report to Testa. Because a disability access inspection certificate, as described in subdivision (e) of Section 55.53 of the California Civil Code, was not issued for the Premises. Testa is advised of the following (pursuant to Section 1938 of the California Civil Code): "A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction -related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction -related accessibility standards within the premises." The Parties hereby agree that Testa shall have the right, but not the obligation, to have a CASp ordered to further inspect the Premises. If Testa elects to obtain a CASp inspection, Testa shall be responsible for the payment of the CASp inspection. Additionally, if Testa elects to make any repairs directly related to Tesla's Work necessary to correct violations of construction -related accessibility standards, Testa may do so, at its sole cost and expense, subject to Section 4 hereof. Notwithstanding anything herein to the contrary, the City may choose to make any structural alterations or repairs to correct any such non-compliance applicable to construction -related Page 9 v.20181012 Attachment A - 9 DocuSign Envelope ID: F3A117D2-7BA6-4F7E-8CC7-E13387EDBEEA Attachment A accessibility standards referenced above and in no event will Testa incur any liability or be required to make any structural repairs or alterations to the Premises to the extent the modifications are required because of any non-compliance (even if "grandfathered") that existed before the Commencement Date except to the extent solely required by the performance of Tesla's Work (specifically excluding the ADA Stall). 35. POSSESSORY INTEREST TAXES: Testa understands and acknowledges that the license granted in this Agreement may be subject to possessory interest taxes pursuant to Section 107 of the Revenue and Taxation Code, Section 33673 of the Health and Safety Code, or other provision of state or local law. Testa shall be solely responsible and liable and shall promptly pay such taxes directly to the administering government agency when due. Testa shall have the right to challenge such tax. In the event City receives any notices or other documents relating to possessory interest taxes owed by Testa due to this Agreement or the Supercharger Station, City shall provide such information to Testa within five (5) working days. 36. GOVERNING LAW AND JURISDICTION: This Agreement shall be governed by the Laws of California and any dispute with respect to this Agreement shall be subject to the jurisdiction of the Superior Court of Santa Clara County. 37. WAIVER OF JURY TRIAL: CITY AND TESLA EACH WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAWS, THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON OR RELATED TO, THE SUBJECT MATTER OF THIS AGREEMENT. 38. INTERPRETATION: The headings and defined terms in this Agreement are for reference purposes only and may not be construed to modify the terms of this Agreement. Neither Party shall have the right to unilaterally revoke or terminate this Agreement, unless such revocation or termination is pursuant to the explicit terms of this Agreement. 39. SEVERABILITY: If any provision of this Agreement is invalid or unenforceable, the remainder of this Agreemeent shall not be affected, and each provision shall be valid and enforceable to the fullest extent permitted by law. 40. COUNTERPARTS: This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together will constitute one agreement. Electronic signatures and other signed copies transmitted electronically in PDF or similar format shall be treated as originals. Signature page follows. Page 10 v.20181012 Attachment A - 10 DocuSign Envelope ID: F3A117D2-7BA6-4F7E-8CC7-E13387EDBEEA Attachment A IN WITNESS WHEREOF, the Parties have each caused an authorized representative to execute this Agreement as of the date signed below. CITY: TESLA: City of Palo Alto, Tesla, Inc. a California chartered municipal corporation a Delaware corporation c—DocuSigned by: By: By: Atzt), ett.Aiiktx "-9517E5EDFFF0487... Ed Shikada Name: Name: Title: Title: Date: Date: APPROVAL AS TO FORM: By: Albert Yang Name: Title: Date: Page 11 Max de zegher Sr Manager, charging North America 6/2/2021 v.20181012 Attachment A - 11 DocuSign Envelope ID: F3A117D2-7BA6-4F7E-8CC7-E13387EDBEEA Attachment A EXHIBIT A Premises and Property Depiction and Address Property Address: 445 Bryant St, Palo Alto, CA 94301 Premises and Property Depiction: RAO FLOOR OF MADE) SEE SHEET G-100.0 tenNr NWINNN LAI Is1!EE TRANSFORM L”NO TRANOINON CALMAT SIM AM0 TESTA SIIPERCHAAGER CN1iNETG ESTREET LEVELI IN) LNL R CHARGER AT (£I ADA STALL MO LEVEL) OVERALL BITE PLAN TVIGLn /HP OFJ,131FEK 1.19.3.13 BLYMYER Exhibit A-1 Attachment A - 12 DocuSign Envelope ID: F3A117D2-7BA6-4F7E-8CC7-E13387EDBEEA Attachment A Exhibit A-2 Attachment A - 13 DocuSign Envelope ID: F3A117D2-7BA6-4F7E-8CC7-E13387EDBEEA Attachment A EXHIBIT B Supercharger Station Testa shall install the Supercharger Station on the Premises pursuant to the terms of this Agreement and the Approved Plans. The "Supercharger Station" shall consist of: (a) necessary utility infrastructure, which may include a utility transformer, metering equipment, conduit, wiring and concrete pads (collectively, the "Infrastructure"); and (b) certain trade fixtures as determined by Testa and approved by City, which shall include twenty (20)charge posts ("Superchargers"), power electronics equipment, switchgear and Signage, and may also include, without limitation, fence or other visual barriers that do not impair the use of the Premises as parking for the general public (collectively, the "Trade Fixtures"). Signage Enabled Stall Sign Example SUPERCHARGER GENERAL PARKING Work Letter Prior to the Entry Date, City will perform City's Work in the Property as are expressly set forth in this Work Letter. The City shall be responsible for maintaining the equipment installed pursuant to the City's Work (including repair and replacement of equipment, as necessary) at its' sole cost, and Testa shall have no liability for damage to such equipment unless caused by Tesla's gross negligence or willful misconduct. The cost of City's Work shall be paid as provided in this Work Letter and the City shall be responsible for obtaining all necessary permits and approvals related to the City's Work. City shall upgrade the transformer in the Property, adjacent to the Florence Street entrance, consisting of the items shown below. City's Work shall be completed with new and suitable materials, free of defects and in a good and workmanlike manner and in compliance with all permits, approvals, and Laws. The cost of City's Work shall be paid for by City up to a maximum amount of Two Hundred Thousand and 00/100 Dollars ($200,000.00) ("City's Work Cap"). The City shall notify Testa in writing before incurring any costs that Exhibit C-1 Attachment A - 14 DocuSign Envelope ID: F3A117D2-7BA6-4F7E-8CC7-E13387EDBEEA Attachment A exceed the City's Work Cap, which notice shall include an explanation for the changes to the City's Work and reasonable evidence for the costs in excess of the City's Work Cap. Upon Tesla's written approval (not to be unreasonably withheld, conditioned, or delayed), Tesla shall pay such cost in excess of the City's Work Cap within thirty (30) days' of Tesla's written approval of such costs in excess of the City's Work Cap. 1. Labor to Install/ Removal Transformer 2. Labor to Install Switch / New transformer 3. Splices, Elbows, Fault Indicators, racks 4. 6X12 vault, 3'X5' vault, and transformer pad, Primary cable 5. Engineer, Estimator, Inspection 6. Special Facility Cost 7. Cost of Switch ( lead time 6 months ) 8. Cost of Transformer 9. Invoice for Tesla in the event the City exceeds the City's Work Cap Exhibit C-2 Attachment A - 15 Attachment B DRAFT FRAMEWORK RESPONSE TO UNSOLICTED PROPOSALS POLICY STATEMENT The purpose of this policy is to establish a framework for the City to respond to unsolicited proposals for use of City property, where such proposals have the likelihood of advancing the City's goals and operations. This policy ensures public transparency in a timely manner appropriate to public discussion of the merits, tradeoffs, and possible alternatives to the proposed use as part of the decision -making process. BACKGROUND City staff occasionally receive unsolicited proposals for the use of City property. This policy and procedure is intended to address situations in which a private party (potentially a non-profit or for-profit organization) expresses an interest in making use of a City -owned property or facility in a manner that provides benefit to the Palo Alto community. PROCEDURES 1. Staff shall forward unsolicited proposals to their Department Director or designee(s) for review and consideration. 2. The Department Director shall have the discretion to forward unsolicited proposals to the City Manager for further review if the proposal appears to advance common goals in support of the City's strategy and operations. 3. The City Manager, or their designee(s), shall be authorized to hold initial discussions with a proposer to develop sufficient detail regarding the proposal and may seek modifications to improve its ability to advance common goals. 4. Through initial discussions, the City Manager shall strive to gather sufficient detail regarding the purpose of the proposal, a description of the project, the proposed terms, and any other relevant information to make an informed decision on whether a proposal is of interest to the City and whether it would produce operational, financial, or other advantage for the City to publicly solicit alternative proposals for the property at issue. 5. If the proposed terms are outside of the City Manager's authority, the City Manager will bring forward the information gathered to the City Council at the earliest practical opportunity. 6. For projects that exceed the City Manager's authority, no commitment to proceeding with a proposal will be granted outside an open session of the City Council. Attachment B - 1 Attachment B 7. Should the City Council approve the proposal, the City Manager and appropriate staff will proceed with implementing actions consistent with City Council direction and applicable delegation of authority. NOTE: Questions and/or clarification of this policy should be directed to the Administrative Services Department Attachment B - 2 City of Palo Alto CITY ©F COLLEAGUES MEMO L -r c• DATE: June 21, 2021 TO: City Council Members FROM: Council Member Stone, Council Member Kou, Council Member Burt SUBJECT: COLLEAGUES MEMO REGARDING THE PALO ALTO MUSEUM (ROTH BUILDING) FROM COUNCIL MEMBERS KOU AND STONE, AND VICE MAYOR BURT Issue The City purchased the historic Roth Building in 2000 and issued a Lease Option to the Palo Alto History Museum (now the Palo Alto Museum) in 2007. The Museum has invested $1.8M in approved plans to rehabilitate the Roth Building, generated several million dollars to both rehabilitate the building and to then install a museum in the National Register building. The momentum to install a museum in the Roth Building has been inhibited by inconsistent action from the City. As a City -owned asset, the hard shell of the building would normally be the responsibility of the landlord (the City) with the tenant being responsible for interior build -outs, other than "tenant improvements" funded or provided by the landlord. In addition, the City is scheduled to receive multiple significant community assets and benefits that are outside of museum -based functions or obligations including; publicly accessible park restrooms, a cafe accessible to the park, community meeting spaces, and resources for youth research and education. Partnership Goals The partnership goals include rehabilitation of an historically significant building which is listed on the National Register of Historic Places according to the Secretary of Interior's Standards, and support for a significant community serving facility. The building is an especially important City -owned property that embodies our history of innovation, and the legacies of the community, all in one building, https://en.wikipedia.orq/wiki/Palo Alto Medical Foundation: • The entrepreneurs and founders, including Dr. Russell Lee and Dr. Edward Roth, of the innovative "community clinic" model of the Palo Alto Medical Clinic (later Foundation) at the Roth Building (constructed in 1932); • Clinic co-founder, Dr. Esther Clark, was a trailblazing female pediatrician; • Artist and Stanford Professor, Victor Arnautoff, whose world-renowned frescoes depicting medical history adorn the entrance and are perhaps the most important public art in the city; and June 21, 2021 (ID # 12173) Page 1 of 5 • Architecture by Palo Alto's Birge Clark, whose renowned architectural legacy is embedded in our residential, commercial, and public properties. Consequently, the Roth Building is the uniquely ideal building to house the Palo Alto Museum and related public facilities. Background and Discussion 2000 City purchases Roth Building and approves historic designation 2004 Council accepts Palo Alto Historical Association (PAHA) RFP proposal 2005 Council approves 40 -year lease option to Palo Alto Museum (PAM), formerly Palo Alto History Museum (PAHM) 2007 PAM lease option agreement approved 2010 Roth Building placed on National Register of Historic Places 2017 City challenges the Museum to raise $1.75M by year end which was met and confirmed by an independent review in late 2019. The Lease Option was not extended as indicated. From 2017 — 2020, the City has conveyed inconsistent messages to the Museum and the public with confusing directions. The City challenged the Museum to raise $1.75M in exchange for a Lease Option, then pursued rezoning, investigated other uses, issued a new RFP, and discussed selling the building. These inconsistent messages and lack of a promised Lease Option have made fundraising extremely challenging for the Palo Alto Museum. Completed by PAM: • Design, Approval of Architectural Plans and City Permits acquired at $1.8 million Museum expense. • Plans conform to requirements as an historical building enabling the sale of Transfer of Development Rights (TDR) funds to pay for rehabilitation work. • Partnered with Vance Brown for construction contract services. • Procured grants from Santa Clara County for roof replacement. Grants are restricted to the PAM rehabilitation plans. Additional grant funding was also secured for Arnautoff frescoes restoration. • Identified potentially applicable development impact fees as outlined in Finance Committee Staff report dated 11/17/20201 According to the approved plans, the establishment of the Museum in the Roth Building is expected to bring a number of contributions to the community. Those include: • A public restroom at Heritage Park (as required by the initial RFP) • Permanent home for the City -owned historic archives • Community meeting spaces 1 https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?t=59923.76&BIoblD=79089 June 21, 2021 (ID # 12173) Page 2 of 5 • Unique Palo Alto and Stanford social, cultural, and technological exhibits • Resources for required studies by second - fourth grade students not currently available elsewhere • Lab of evolving technologies for all students • Park -side cafe • Venue for speakers and authors The Council in its 2020-2021 budget discussions directed that shovel -ready projects take priority. The Museum has brought forward the rehabilitation of the City -owned Roth Building with approved plans and permits. By partnering with the Museum, the City can take advantage of the millions of dollars in project financing the Museum brings for the fastest and most cost-efficient means to rehabilitate the historic Roth Building. Timing is critical. This project needs to move forward quickly to preserve this vulnerable historic building, take advantage of the existing permit, and move forward this construction season to avoid winter rains. Recommendation 1) Issue a lease or lease -option between the City and PAM, which would allow for donor and restricted funds for the rehabilitation pursuant to the Secretary of the Interior's Standards and County grants to be released for construction of Phase 1 (Phase 1 is the rehabilitation and build out of the facility to make it suitable for occupancy also known as a "warm shell" estimated at $10.5 million); 2) Direct City Staff to identify additional funding to help complete the rehabilitation funding gap ranging between $4.0 - $4.3 million (PAM estimate at $3.71 million in 2020) from possible library, community center, and/or parks impact fees, Stanford Development Funds, cost savings from CIP projects and other identifiable sources; 3) Release the amended Lease Agreement to the Museum for timely review and finalization; and 4) Commit to a partnership with the Museum for the rehabilitation of the Roth Building and for mutual long-term success of the project. Resource Impact Staff and the Council have reviewed the partnership with the Palo Alto Museum at numerous points with varying points of direction. The direction outlined in the memo has two resource impacts; 1) Identification of funding sources for the rehabilitation of the facility, and 2) the issuance of a lease or lease option between the City and PAM. 1) Identification of funding sources for the rehabilitation of the facility Staff is currently working with the City Council on identification of funding of $4 million to $4.3 million to complete the rehabilitation of the 300 Homer Ave. also known as the June 21, 2021 (ID # 12173) Page 3of5 Roth building. Funding as tentatively approved by the Council is focused on funding from the Federal Government, the Stanford University Medical Center Fund, and appropriate impact fee funds. After a review by an outside third party, it was determined that the museum successfully raised funding, however, funding was not set aside for the capital improvement of the facility and much was spent on operating expenses. In partnership with PAM, PAM identified $500,000 in funding available in cash contribution in addition to pledged funds (funds not yet in hand however pledged in a variety of forms). A summary table of funding for the rehabilitation project is below that outlines current available funds and the remaining gap in funding based on the results of the financial review and prior Council actions. This presumes a rehabilitation cost of $10.5 million as quoted by the PAM construction contractor Vance Brown. AVAILABLE FINANCIAL cu c FUNDING SOURCE TDR proceeds and a $1.0 million a ) contribution from the General Fund O 3 Grants from the County of Santa Clara aa, ro(roof replacement $0.3 million) u, 0 Library impact fees designated for the (6 c establishment of the City archives PAM cash on hand (MGO reports a approximately $0.8 million available with some needs for operating costs) Readily Available Funds PROJECTED ESTIMATED GAP TO FUNDING PHASE 1 CONTRIBUTION $10.5M $4.9 M $0.3 M $0.3 M $0.5 M $6.0 M ($4.5 M) \ Q PAM pledges; MGO Audit report _fn vo = estimated $0.2 million are more likely to $0.2 - $0.5 M w ▪ t o be collectable c W > -0p a u ° Additional Funds including pledges E p g $6.2 - $6.5 M ($4.0 — 4.3M) F As outlined in the various budget staff reports for FY 2022, staff have researched feasible funding sources to assist in fully funding the project in addition to the current federal funding request currently under review as submitted by Congresswoman Eshoo as part of the FY 2022 federal budget process. 2) The issuance of a lease or lease option between the City and PAM In 2007, the City granted PAM a 24 -month exclusive option to lease the Roth Building. The option provided that its purpose was to allow the Museum to develop specific June 21, 2021 (ID # 12173) Page 4 of 5 plans, obtain financing, and satisfy other conditions set forth in the option. The City extended the term of the option numerous times. It expired in November 2018, during the period that the third -party financial review occurred, which confirmed available funds and funding gaps. Substantial work from an interdepartmental team will be required to update the lease document and, if needed, an option to enter into the lease, and to negotiate with the PAM to achieve final agreement on these documents. Note that a lease option is an agreement to refrain from contracting with others for a limited period, typically in order to provide time for one or both parties to complete tasks needed to determine whether to enter into a full lease. If the Council identifies sufficient funding for the Roth Building rehabilitation and is prepared to enter into a long-term lease to the PAM, an option may not be needed; rather, it may be appropriate to simply enter into a lease. The lease will define the rights and obligations of the PAM and the City during the rehabilitation phase and the subsequent long-term operating phase for the Museum. In addition to the PAM program and legal support teams, this will require staff from the City Attorney's Office, Administrative Services, Community Services, and Public Works. A negotiation such as this has typically taken a focused four to six months or longer, based on the City's prior experience with other public -private partnerships, such as the Junior Museum and Zoo, the City's partnership with OB Sports, and Pets in Need. While we recognize that each of these projects is distinct, all required focused attention and multiple reviews by both the City and the City's non-profit partner and their team. For City staff, this will require prioritization of this within the context of other work current on these teams' plates, including but not limited to: continued tracking of FEMA reimbursements and American Rescue Plan Act (ARPA) reporting requirements, Business Registry and Downtown BID assessments, implementation of the City tenant rent relief program, and real estate agreements (easements, leases, etc.) for a number of capital projects and city facilities such as Mitchell Park (cafe), LATP, lease and procurement of property for the RWQCP rebuild, Newell Road Bridge, and review feasibility of partnership in development of both housing and parking using downtown public parking lots for sites. June 21, 2021 (ID # 12173) Page 5of5 CITY © F QA LC, A LT Co City of Palo Alto COLLEAGUES MEMO DATE: June 21, 2021 TO: City Council Members FROM: Council Member Filseth, Council Member Kou SUBJECT: COLLEAGUES MEMO ON AFFORDABLE HOUSING COMMERCIAL IMPACT FEES FROM COUNCIL MEMBERS FILSETH AND KOU Goals Increase funding for Affordable Housing projects in Palo Alto. Background and Discussion While Palo Alto's share of Below Market Rate (BMR) housing as a percent of total housing is among the higher in the Santa Clara County (9.0% in Palo Alto vs the County average of 5.4%)1, supply still lags demand. For example, fewer than 10% of PAUSD and City Staff actually live in Palo Alto, in part due to the high cost of market -rate housing here. Below Market Rate Housing can be produced either through BMR inclusion rates or through subsidies. To reach Palo Alto's presumptive RHNA Cycle 6 target of 3,465 Very Low -to -Moderate Income units at a 15% inclusion rate, roughly 20,000 new market -rate homes would have to be permitted by 2030. This is slightly less than 10X Palo Alto's actual 2030 market -rate RHNA target, and over 30X Palo Alto's current 2022 market -rate RHNA target; which seems unlikely. In order to produce Affordable Housing without relying on the above mechanism, Palo Alto must find money for subsidies; State RHNA mandates do not provide the necessary funding. Since 2015 Palo Alto has dedicated approximately $40 million in City affordable housing funds to the Buena Vista Rescue, the Wilton Court project, and the Grant Avenue Teacher Housing project. The City's Affordable Housing Fund is now nearly depleted and needs replenishing. Since demand for housing, including housing affordable to low- and moderate -income residents, is driven primarily by job growth, it makes sense to fund Affordable Housing subsidies from that job growth, through commercial development impact fees which reflect that impact. Palo Alto's current commercial office/R+D development impact fee for Affordable Housing is $38.48/square foot. The Santa Clara County's corresponding fee of $68.50/sf2 was established during the Stanford GUP process and is based on a 2018 County nexus study indicating the full "Stanford Academic Space" impact at $143.10/sf June 21, 2021 (ID # 12347) Page 1 of 2 and the full "Office" impact at $113.40/sf3. A 2020 San Jose nexus study placed the full impact of "Tech Office" in that city at $151.50/sf4. A 2015 Palo Alto nexus study showed an even higher office/R+D impact, above $250/sf. Recommendation The City Council should vote to raise Palo Alto's Office/R+D development impact fee for Affordable Housing from $38.48/sf to $68.50/sf, in alignment with the Santa Clara County action. Staff Impact The last feasibility study prepared by the City analyzing potential increases to the commercial office/R+D impact fee for affordable housing documents a maximum feasible fee of $60. The effort to update the commercial impact fee is included in the Planning and Development Services housing workplan and work is currently underway to secure a consultant to prepare a new feasibility study. The new study would update findings from six years ago and include an analysis of Santa Clara County's nexus study, make recommendations on different commercial and R+D subgroups, such as life sciences and medical office, account for other recent changes to City impact fees and current construction costs. The feasibility study is expected to cost approximately $40,000 and will take about three months to complete. This effort is already funded using the department's Planning general contract expenses. Accordingly, staff anticipates this work can be presented to the Council in late September. While staff recommends the Council wait for the updated feasibility study prior to acting, if the Council decides otherwise, the fee should not exceed $60 to be inline with the City's own prior studies. References 1. SV@Home, "Existing Affordable Housing Assets" https://siliconvalleyathome.org/resources/#existing-affordable- housing-assets 2. County of Santa Clara, "Draft Affordable Housing Mitigation Fee Ordinance" http://sccgov. igm2.com/Citizens/Detail_LegiFile.aspx?Frame=&MeetinglD=9990&MediaPosition=&ID=92374&CssCla ss 3. Keyser June 21, 2021 (ID # 12347) Page 2 of 2 CVTY 0 PALO ALTO City of Palo Alto (ID # 12208) City Council Staff Report Report Type: Informational Report Meeting Date: 6/21/2021 Summary Title: Parking Workplan and Schedule Informational Update Title: Parking Workplan and Schedule Informational Update From: City Manager Lead Department: Transportation Department Recommendation This is an informational report and no City Council action is required. Background/Discussion On May 13, 2019, the City Manager brought forth a report from the consultant, Municipal Resource Group (MRG), with 35 recommendations related to the Residential Preferential Parking (RPP) Program. The report identified aspects of the program in need of improvement as well as other parking -related items that will be coming forward to the City Council before the end of June 2019. Here is the May 13, 2019 staff report and the MRG report. This informational item transmits a draft schedule of near -term upcoming parking items, and how they relate to the 35 recommendations and the Parking Workplan. Upcoming Parking Items Schedule: Item Committee Date Parking Workplan Item # Automated Parking Guidance System (APGS) for Downtown Parking Garages; construction contract award Council June 21, 2021 8, 9 Parking Enforcement in RPP's and Commercial Zones NA September 2021 (Pending COVID Restrictions) NA Updates to Parking Fund Programs, Employee Parking Permit Allocation in Garages/Lots and RPP's, Permit Pricing, and Low -Income Permit in Garages Finance Committee August 17, 2021 26, 28, 31, 32, 34 City of Palo Alto Page 1 Item Committee Date Parking Workplan Item # Updates to Parking Fund Programs, Employee Parking Permit Allocation in Garages/Lots and RPP's, Permit Pricing, and Low -Income Permit in Garages City Council August / September 2021 26, 28, 31, 32, 34 RPP Employee Permit Sales in Downtown and Evergreen Park- Mayfield NA September 2021 NA RPP Employee Permits Expire in Downtown and Evergreen Park- Mayfield NA October 1, 2021 NA Parking Items for Finance Committee and City Council in August In August, staff plans to bring forward an item that evaluates the various parking permit funds, the allocations of employee permit in both RPP districts and public garages and lots, permit pricing, and recommend establishing a low-income permit in the garages and lots (this permit only exists in RPP districts currently). This timing is important, as it allows for decreasing the total amount of available employee permits in the RPP zones, and to increase the availability of off-street employee permits in the public garages and lots prior to the expiration of current RPP employee permits (October 2021). The items that are being developed for Finance Committee and City Council in August tie to the following parking workplan items: Summary of Recommendati on Full text of the MRG report recommendation Prioritized Action for Progress (City Council, City Manager, PTC) Parking Workpla n Item # Subsidize RPP Program appropriately Review the Level of Funding Subsidy of the Residential Permit Parking Program — A review of the expenditures and revenues for the Residential Permit Parking Fund should be performed to ensure the level of support from the General Fund is appropriate. City Manager — Action by City Manager and Return to City Council as Needed 26 City of Palo Alto Page 2 Summary of Recommendati on Full text of the MRG report recommendation Prioritized Action for Progress (City Council, City Manager, PTC) Parking Workpla n Item # Reduce availability of employee RPP permits Establish Approach to Reduce Employee Parking Permits — Develop a "quid -pro -quo" approach to reduce RPP employee permits where the addition of "employee spaces" in garages and lots triggers the reduction of RPP employee parking permits. Community Engagement — Obtain Community Input and Return to City Council with Recommendations 28 Increase cost RPP employee permit over garage & lot permits Increase Cost of Employee Parking Permits — Consideration should be given to increase the cost of an RPP employee parking permit so that it is greater than the cost of a reserved space in a garage or lot, in order to incentivize parkers to choose off- street parking over on -street parking. Community Engagement — Obtain Community Input and Return to City Council with Recommendations 31 Standardize em to ee ploy permit costs Standardize Cost of Employee Parking Permits — The cost of employee parking permits between the RPP districts should be the same, unless there are extenuating circumstances. The cost of a six-month employee parking permit is $74.50 in the Southgate District; $187.50 in the Evergreen Park -Mayfield District; and $375.00 in the Downtown District. Community Engagement — Obtain Community Input and Return to City Council with Recommendations 32 City of Palo Alto Page 3 Summary of Recommendati on Full text of the MRG report recommendation Prioritized Action for Progress (City Council, City Manager, PTC) Parking Workpla n Item # Standardize # of resident permits, cost of resident permits, availability of single day permits Remove Inconsistences Between Districts — Inconsistencies between Residential Preferential Permit Parking districts should be eliminated, unless there are extenuating circumstances. The inconsistences include, but are not necessarily limited to, the number of resident permits, the cost of resident permits, and the number of single -day permits. Community Engagement — Obtain Community Input and Return to City Council with Recommendations 34 Parking Enforcement/Permit Schedules To preserve parking availability for residents, employees, and visitors as more businesses continue to adapt to COVID-19 impacts and reopen, parking enforcement has been on hold, noting that there have been a few attempts to restart it since the COVID restrictions were put in place in March 2020. Residential Preferential Parking (RPP) and Commercial Garage/Lot enforcement are currently scheduled to resume in September 2021, following soft - enforcement (warnings only). Residents and permit holders will be notified about resuming enforcement via US mail. Additional announcements will be made via the City's communication channels, and enforcement will resume "softly" for a limited time. Residents in districts up for renewal have been and will continue to be, contacted with instructions for how to sign up via the new online RPP Permit portal. The portal is currently active for the College Terrace, Crescent Park, Old Palo Alto, and Southgate College Terrace and Crescent Park districts. Downtown and Evergreen Park -Mayfield RPP Permit portals are scheduled to open for the next employee sales cycles, in September. Additional information on the City's parking programs is available at: https://www.cityofpaloalto.org/Departments/Transportation/Parking Policy Implications Regulating parking is consistent with the City's three -pronged approach to reduce traffic and parking demand and to manage parking. In addition, the programs discussed in this report address the following existing Comprehensive Plan policies, goals, and programs: • Policy T-1.1 Take a comprehensive approach to reducing single -occupant vehicle trips by involving those who live, work and shop in Palo Alto in developing strategies that make it easier and more convenient not to drive. City of Palo Alto Page 4 • Goal T-5 Encourage attractive, convenient, efficient and innovative parking solutions for all users. • Policy T-5.2 Continue to implement a comprehensive program of parking supply and demand management strategies citywide to optimize the use of existing parking spaces. • Program T5.2.1 Use technology to help identify parking availability and make it easy to pay any parking fees. • Program T5.2.2 Study and implement pricing strategies for public parking in commercial districts, taking into consideration both employee parking demand and the needs of retailers and customers. Use pricing to encourage short term parking on street, long term parking in parking garages and the use of alternative modes of transportation. • Program T5.2.3 Implement Council -adopted recommendations from the parking management study for the Downtown area, which address the feasibility of removing color -coded parking zones, and dynamic pricing and management policies to prioritize short term parking spaces closest to the commercial core for customers, garage parking for employees and neighborhood parking for residents. • Policy T-5.3 Work with merchants when designating dedicated employee (long term) parking areas in public parking lots and garages • Policy T-5.5 Minimize the need for employees to park in and adjacent to commercial centers, employment districts and schools. • Policy T-5.11 Work to protect residential areas from parking impacts of nearby businesses and uses, recognizing that fully addressing some existing intrusions may take time. • Policy B-1.2 Promote Palo Alto's image as a business -friendly community. Assume an active role in fostering businesses, including small start-ups, entrepreneurs, and innovative businesses. • Policy B-1.3 Engage with all stakeholders in the community, including businesses of all sizes, local retailers, the public, and City decision -makers in order to understand the challenges businesses and employers face. • Policy B-2.3 Recognize that employers, businesses and neighborhoods share many values and concerns, including traffic and parking issues and preserving Palo Alto's livability, and need to work together with a priority on neighborhood quality of life. • Policy B-3.3 Develop strategies for promoting businesses and employers that generate City of Palo Alto Page 5 revenues that will support a full range of high -quality City services, including retain and attract revenue -generating businesses. • Policy B-4.2 Attract and support small businesses, start-ups, non-profit organizations, and professional services, which are vital to a diverse and innovative economy. • Policy B-6.1 Support and enhance the University Avenue/ Downtown area as a vital mixed use area prioritizing retail, personal service, small office, start-ups, restaurant, residential and arts and entertainment uses. Recognize the importance of an appropriate retail mix, including small local businesses, to the continued vitality of Downtown. • Program B6.1.1 Actively work with Downtown businesses, professional associations and the Palo Alto Chamber of Commerce to retain successful retail businesses that contribute to the City's goals for Downtown. Environmental Review This is an informational item; no action will be taken, therefore no environmental review is required. City of Palo Alto Page 6 CVTY 0 PALO ALTO City of Palo Alto (ID # 12315) City Council Staff Report Report Type: Informational Report Meeting Date: 6/21/2021 Summary Title: Informational Report for Foothills Fire Mitigation Strategies Title: Informational Report for Community and Economic Recovery: City Priority Initiatives Focus Area - Foothills Fire Mitigation and Safety Improvement Strategies From: City Manager Lead Department: Office of Emergency Services Recommendation No Council action is required. This is an update requested by the City Council as part of the City's Community and Economic Recovery workplan. This report provides a status of numerous related ongoing activities, and is provided to give the City Council and public an initial overview of this work. Staff anticipate bringing this topic for discussion with the City Council following the July recess, at which time further strategic direction will be communicated. Background The COVID-19 pandemic necessitates that the City conduct contingency planning and to concurrently address other hazards and to maintain essential public safety services. With the wildland fire season of CY 2020 in the State of California in mind and as we enter the 2021 fire season, and at the direction of City Council, it is imperative that the City improve situational awareness and efficiencies in mitigation, response and recovery in the greater Palo Alto foothills, as described below. CAL FIRE stated in a recent press release: "Because of dryer and warmer conditions, coupled with a second year of drought, fuels are apt to burn. Rainfall totals are 50% of normal for this time of year for the region. ... This is shaping up to be a potentially significant wildfire year."1 1 https://files.constantcontact.com/13ae4c7f701/51545f4e-d548-45f7-84b7-713554c4b5e3.pdf City of Palo Alto Page 1 Human activity is the cause of the vast majority of wildland fire ignitions (such as sparks from vehicles, cigarettes, gardening equipment, and electrical utility lines).2 Arson is another cause of wildland fires. The Council directed staff specifically to identify improvements to the: A. Foothills Fire Management PIan3 B. Capabilities to detect fires and means to notify the public C. Coordination and communication among first responders and other assisting agencies, including the use of volunteers and other non -government resources Where applicable, the above topics will be addressed with respect to: • Current State: What exists already; what is being done now. • Near Term: What is planned or possible using existing resources (staff, budget). • Longer Term: What might be done; what are the potential resource impacts and requirements. This topic is part of the Community and Economic Recovery workplan, specifically 'Item K — Create a Foothills Fire Protection Plan' under the City Priority Initiatives focus area. As shelter in place and other health orders have substantially increased use of our parks and open spaces, the demands on public safety and open space ranger staff have outstripped resources, not just in the City but in the region, especially these open spaces that are in our Wildland Urban Interface (WUI). The City Council has also noted the increased utilization of parks and open spaces and the risks associated. Furthermore, staffing reductions for public safety and open space rangers occurred in FY21 and additional reductions are proposed in FY22 as a consequence of the financial disruptions and budgetary uncertainty.4 Finally, fires are only one of several hazards and risks in the foothills. Earthquakes, dam failures, landslides, medical incidents, missing persons, crimes, and other scenarios must be considered, as described in our community's plans already.6 Discussion The lead agency for this effort is the City's Office of Emergency Services (OES) with the direct support of the Palo Alto City Manager's Office (CMO) (executive), the Palo Alto 2 See March 2021 wildfire presentation conducted by the Bill Lane Center at Stanford University: https://www.youtube.com/watch?v=YszXvIfV8Qg 3 https://www.cityofpaloalto.org/files/assets/public/oes/plans/foothills-fire-management-plan-update-2016- final.pdf 4 The City Council will deliberate on these reductions during the FY22 budget process. 5 We have recently seen increases in reckless driving, drunk driving, and illegal fireworks being set off in the greater Palo Alto foothills, for example. This includes "side shows" — large convoys of vehicles racing and doing "stunts" in our foothills. This sort of dangerous activity is occurring throughout the U.S. 6 www.cityofpaloalto.orq/thira City of Palo Alto Page 2 Fire Department (PAFD), the Palo Alto Police Department (PAPD), the Palo Alto Utilities Department (CPAU), the Palo Alto Public Works Department (PWD), the Community Services Department (CSD), the Information Technology Department (IT), and other City departments. Geographic Scope of Project: The general focus of most of what is described herein will be on the longstanding region defined as the "greater Palo Alto foothills," which includes areas of the Wildland Urban Interface (WUI), regions defined by Cal Fire (both SCU and CZU) as Mutual Threat Zones (MTZ), by the California Public Utilities Commission (CPUC) as Tier 2 & 3 (high and extreme) fire zones, considered High Fire Threat Designation (HFTD), and sites of significant critical infrastructure and key resources (CIKR) and precious environmental resources. The boundaries of this Area of Operation (AO) are: • West Side: Skyline Blvd (Hwy 35) from Route 84 (Woodside Rd/La Honda Rd.) to Hwy 9 • North Side: Route 84 from Skyline to Alameda de las Pulgas • East Side: Alameda de las Pulgas to Santa Cruz Ave to Junipero Serra Rd. to Foothill Expwy. • South Side: Draw a line from the intersection of Hwy 9 @ Hwy 35 to the intersection of Foothill Expwy @ Magdalena The Palo Alto City Council has determined this area to be at "significant risk of catastrophic wildfire," as have other authorities.' Please refer to our online Fire Hazard and Evacuation Route Map8: https://drive.google.com/open?id=lv - rjWXC 6h7gwvzCa4oK6FLqTziB6U2&usp=sharing http://cityofpaloalto.org/civicax/filebank/documents/74692 8 Note this map is static and for planning purposes. A future objective of FFEWS is to turn this into a dynamic map with views for agencies and a version for the public, similar to https://www.google.com/maps/d/u/0/edit?mid=1 upb4XwdtJzrHXsNOsMgQuJHshrY&usp=sharing The San Mateo County Grand Jury (looking at our area's similarities to the Town of Paradise after the Camp Fire) also noted a need (at the top of p. 12) for such dynamic maps: https://www.sanmateocourt.orq/documents/qrand jury/2018/wildfire.pdf City of Palo Alto Page 3 PALO ALl'O tOMPREFIEMS IVE PLAN 'a.0.FF 1 'i _ _r"Ir IT S rrucc Gtyaf'aio-Mo. =7I?; CAI IRE andSrta Ora Cauirry tre D partrnmk 0013; 9404CA Erurcnrr rs,bJ Ccr rr5. 2017; E. 1.201 Mira- Lfies, I PlareWorla201'7. reat1SanWleoCarty} • `rsa1=acl:tr �-- ?aioais `_rt`F3E re' mterxe -. I_ji .i)JrFdve Asrwsa-nert 6.rira Clara Cncn.'yi Modefge 411 Li'e171e Figure 1: City of Palo Alto Wildfire Hazard Zones NAP a WILDFIRE HAZARD ZONES The City of Palo Alto Comprehensive Plan identifies wildfire hazards in the Safety Element. Policy S-2.14 "requires that the planning and design of development in areas City of Palo Alto Page 4 exposed to wildland fire hazards minimize the risks of wildfire and include adequate provisions for vegetation management, emergency access and firefighting." This policy describes the related programs to reduce risk including funding, implementation of the Foothills Fire Management Plan, low density zoning, treatment and management of vegetative fuels, mutual aid relationships, and citizen engagement. A. Foothills Fire Management Plan Santa Clara County follows the State of California best management practices in developing and maintaining a Community Wildfire Protection Plan (CWPP).9 The City, along with other jurisdictions and applicable special districts, integrates its respective Foothills Fire Management Plan as an annex thereof. Current State: The Foothills Fire Management Plan (FFMP) is complete and available on the web.'° The discussion below will focus on the mitigation and prevention measures, such as the removal of flammable vegetation ("fuel"), evacuation routes, and so on. The City first published a Foothills Fire Management Plan in 1982 to provide a planning framework for fire control activities for the City and the Palo Alto Foothills Area. The goal of the 1982 Fire Management Plan is "to reduce government costs and citizen losses from wildland fire by increasing initial attack success and/or protecting assets at risk through focused pre -fire management activities".11 Since that time there have been three updates to the FFMP: 1997 (a draft that was never adopted), 2009, and 2016. The 2009 FFMP update had three main goals, that also followed in the 2016 update. 1. Develop recommendations for wildland fuels (vegetation) and fire management to reduce fire hazards in Palo Alto's Wildland Urban Interface. 2. Maintain ecological and aesthetic values of Foothills Nature Preserve and Pearson-Arastradero Preserve consistent with fire reduction goals. 3. Provide a fuel management plan for Foothills Nature Preserve and Pearson- Arastradero Preserve that is cost effective and sustainable for the City of Palo Alto. The Plan identifies 58 areas (approximately 330 acres of City land) where treatments are to be conducted. These treatments are found within Foothills Nature Preserve (formerly Foothills Park), Pearson-Arastradero Preserve, and 12 miles of City roadways. The highest priorities are the treatment of roadways which are evacuation routes and entrapment hazards (citizens to evacuate and allow emergency personnel and 9 https://www.sccfd.org/santa-clara-county-community-wildfire-protection-plan 10 https://www.cityofpaloalto.orq/files/assets/public/oes/plans/foothills-fire-management-plan-update-2016- final.pdf 11 Palo Alto Foothills Fire Management Plan, 2009, p.14. City of Palo Alto Page 5 equipment to access safety). The plan has a five-year time horizon in order to manage the annual cyclical growth of fuels, as well as a longer -term strategy to reduce slower growing fuels over the plan's time horizon. In FY2012, Council approved a new Capital Improvement Plan (CIP) (P0-12003) Foothills Wildland Fire Mitigation Program, which was funded for $200,000 for FY2012 shared among the departments with FFMP responsibilities. This CIP ceased in FY2016, but since there was a continued need for funding, the City allocated specific funds annually to three departments to pursue the goals of the FFMP: Fire Department ($60,000), the Public Works Department ($ 54,800), and the Community Services Department ($66,700) for a total of $181,500. Appendix A provides annual funding for FFMP related activities from 2009 to 2021. The City has also used various methods to meet the goals of the FFMP. For many years, each department implemented local staff or contracts with small businesses for departmental responsibilities. This required a large amount of staff time and resources to manage FFMP activities. In 2013 the City entered into a five-year Stewardship Agreement, S13147834, for the Santa Clara County Fire Safe Council (SCCFSC) and City of Palo Alto to cooperate in the preservation, protection, and enhancement of the Foothills Fire Management Plan project area in which the City allotted $50,000 per year to the SCCFSC for FFMP activities. By doing so, the City was able to manage the 58 required FFMP treatment areas using a combination of City staff resources and SCCFSC contracted efforts. In 2017, the City amended this agreement for an additional 2 -year term and increased the allotment to $181,500. During this time the City has successfully implemented the FFMP through the partnership with the SCCFSC; they provided significant accomplishments on behalf of the City of Palo Alto. In the last seven years, the City used an interdepartmental staff team to manage the program activities of the FFMP and provide oversight to the SCCFSC, comprised of the Fire Department, Public Works Department, Community Services Department, Office of Emergency Services, and the Palo Alto Utilities Department. In additional to FFMP related projects, the Fire Department provides annual "defensible space" assessments to residences within the Palo Alto jurisdiction of the WUI. These visits by fire crews provide an opportunity for the residents to receive specific input on what they can do to reduce fire hazards on their properties. After that, it is up to the residents to take action or not. In 2019, the City of Palo Alto Utilities Department (CPAU) began work on the Utilities Wildfire Mitigation Plan mandated by SB901. The Utilities Wildfire Mitigation Plan was presented to the City Council in January 2020 (CMR 10670). This plan, among other elements, provides mitigation actions in the form of recurring maintenance of overhead electrical lines (inspections, vegetation management along lines, and maintenance of electrical hardware) as well as longer -term capital projects such as undergrounding City of Palo Alto Page 6 lines in the WUI area. CPAU has completed two pilot projects to underground electrical lines at the Foothills Country Club Golf Course (800 feet of electrical line and the reduction of 4 poles and associated overhead wires) and Arastradero Road (2000 feet of electric line and fiber wire as well as the removal of 8 poles and associated overhead wires. On April 7, 2021, the Utilities Advisory Commission (UAC) received a staff update regarding the Utilities Fire Mitigation project EL -21001 Overhead Line Project Wildfire Plan (Staff Report 12064). This report describes the undergrounding of certain electrical lines as an ongoing capital improvement program and a key element of risk mitigation. On June 2, 2021 the UAC received a staff report on the annual update to the Utilities Wildfire Mitigation Plan (Staff Report 12190). Near Term: The Foothills Fire Management Plan will go through a revision cycle, in coordination with the County's Community Wildfire Protection Plan. The County anticipates a revision later in 2021, but that may be delayed, due to the pandemic. Until this update is performed, the City will continue to use the 2016 FFMP to guide the program efforts of the FFMP interdepartmental team. As discussed below, the City does not anticipate major changes to the FFMP in the next revision and is facing challenges to implement already -identified mitigation tasks. The City is looking at alternative ways to meet the recurring program requirements, some of which will be a return to more staff supported work while others will require separate contracting efforts as a result of resource reductions across multiple departments in the City including Public Works and Community Services. Of the 58 current Foothills Fire Management Plan plan actions, staff believes 44 can be done with existing staff resources or existing contracts, while 10 will require outside capacity. Staff has deferred maintenance on 4 areas and are re-examining the necessity of these areas. In early 2021, the City began renegotiations with the Santa Clara County Fire Safe Council (SCCFSC) for either a new or amended service agreement, since the prior agreement expired in 2020. The City is currently at an impasse with the SCCFSC because the work under the Stewardship Agreement between them and the City of Palo Alto likely is subject to prevailing wage and related labor laws — including but not limited to registering with the Department of Industrial Relations (DIR) and the provision of certified payroll records to DIR by the contractor and its subcontractors. The SCCFSC (a small non-profit) believed this to be too complex an issue for them to adhere to and therefore were unwilling to move forward with a new stewardship agreement. Staff is considering new contracts to perform the work in light of this. The resource reductions due to the contraction in the FY 2021 and FY 2022 budgets reflect a need to staff to look across departments and share resources to the extent City of Palo Alto Page 7 practical and feasible, however, an increase reliance on inhouse prioritization of FFMP while balancing safety, maintenance, and services. Longer Term: The future revisions to the FFMP may or may not have additional elements to support projects or initiatives beyond its current scope. The State of California may change some of the guidance, as well. The Palo Alto lands within the WUI are predominantly Public Conservation Land, followed by Open Space/Controlled Development. These include properties along the following routes and associated side streets: Los Trancos Road, Page Mill Road, Alpine Road, Arastradero Road, and Skyline Boulevard. Such properties include single family residences, public, educational, commercial, and agricultural lands. Public infrastructure in the area includes electrical and water distribution, wastewater, telecommunications, and public buildings. The California state building code chapter 7A describes materials and construction methods for exterior wildfire exposure.12 The Palo Alto building code incorporates this chapter into our local building code. Fire resistant construction is effective: analysis shows that many homes in the Town of Paradise during the Camp Fire in 2018 were saved because of the building codes that called for fire resistant construction. (This is also coming from our direct observation: Palo Alto OES staff spent weeks deployed to assist in the Town of Paradise and deployed to other fires and recovery efforts subsequently.) In response to Senate Bill 190 signed into law in 2019, the City could also adopt a local ordinance requiring the enforcement of defensible space and related mitigation measures for the properties located in the WUI. While the Palo Alto Fire Department conducts annual inspections, there is not a direct consequence for those who do not mitigate identified hazards. City Code Enforcement and other resources could facilitate accountability following fire department inspections, however, additional resources would be necessary as there is only one code enforcement officer citywide and is a severely stretched work unit. Additionally, the City could provide resources such as free wood chipping days to encourage participation as is commonly done in other jurisdictions. B. Capabilities to Detect Fires & Means to Notify the Public Unlike fires in urban and suburban settings, WUI fires often can be difficult to detect in a timely manner. This section provides a brief overview of the issues and potential 12 ch7a.pdf - note: copy and paste this link into your browser. https://hcd.ca.gov/buildinq-standards/state-housing-law/wildland-urban-interface/docs/2010-part-2-cbc- City of Palo Alto Page 8 actions the City and other partners are taking and might consider. This is a highly complex topic, but a few improvements could greatly enhance the situation. Current State: Current means to detect fires and other unsafe conditions are inefficient and labor- intensive: • City staff patrols • Emergency Services Volunteers (ESV) deployments • Reports to 9-1-1 from witnesses/victims • Occasional use of public safety aircraft from other agencies such as the Civil Air Patrol Consider the case of an "unwitnessed" fire that might start in the middle of the night and remain undetected for a period of hours, leading to a major conflagration. To modify an aphorism: If a tree burns in the forest, and nobody is there to call 9-1-1, is there still a fire? The answer, of course, is yes, and it will be a much larger fire the longer a wildland fire burns without being reported. Early detection is of paramount importance to facilitate public warning, evacuation, and first responder mobilization. Pease see the wildfire evacuation and warning information on www.cityofpaloalto.org/wildfire It is also important to consider the indirect effects of wildland fires, such as air quality, traffic disruption, loss of utilities and other infrastructure (including Public Safety Power Shutoffs or unplanned failures that could result in widespread power outages). Most fundamentally: If firefighting resources are not brought to bear quickly enough, many wildland fires quickly move past the point of realistic intervention, meaning a "defensive" posture is the only option left for the first responders. Near Term: The City is supporting regional efforts to expand the AlertWildfire camera system.13 The City is working to replace legacy (non-functioning) City -owned cameras covering the WUI, including improvements to CPAU cameras. The City is partnering with Carnegie Mellon University to explore Internet of Things (IoT) and other novel approaches regarding data communications and sensors. The City has a research agreement with a local startup, Perimeter, to help staff evaluate various tools to improve government as well as Emergency Services Volunteer coordination methods. OES is also in contact with other potential research developers and commercial entities to evaluate new and emerging solutions. OES also routinely 13 http://www.alertwildfire.orq City of Palo Alto Page 9 meets with venture capital investment firms, academic researchers, and others to see what emerging potential technologies could be applicable. The City has been working with the County on the Zonehaven evacuation zone project. The City has a public -private partnership with VMware to leverage their solar -battery micro grid to allow the operation of the Mobile Emergency Operations Center (MEOC) and other incident command resources at the company's Palo Alto campus. This could provide an incident base during a major fire in our foothills. The City has partnered with Stanford Land Management on the new Stanford Research Park Emergency Radio Network (SRP ERN) to facilitate two-way radio communication among SRP tenants and with Palo Alto public safety agencies. The MOU with VMware anticipates possible hosting of radio and wireless data and sensor equipment that could support the longer term FFEWS project, described below. Longer Term: The City is exploring the creation of a Foothills Fire Early Warning System (FFEWS). The City has gained some experience in the use of advanced sensor technology, artificial intelligence, and remote monitoring services through the Intrusion Detection System (IDS).14 Sonoma County is also deploying cameras and artificial intelligence tools for wildfire detection.15 Australia is developing an even more ambitious program, called Fire Shield.16 The City of Palo Alto seeks to join these other efforts as a partner and innovator. The City may issue a Request for Information (RFI) to gain more knowledge about the complex technologies and other best practices, many of which are evolving. Likely elements of a future RFI would ask respondents to provide their input on providers, system integrators, and other services regarding: • Cameras, thermal imaging, and other sensors • Locations: Evaluate site and equipment locations • Methods to verify or evaluate fixed -sensor (fixed -site cameras, etc.) data. For example, if a "plume of smoke" is seen, could a UAS be flown to the location to provide further information, validation? • Networking: Some sites have fiber optics; others require wireless (microwave, etc.) • Emergency back-up power: solar, battery storage • Sensor/camera monitoring: use of artificial intelligence, rules -based systems, third -party monitoring. 14 https://www.cityofpaloalto.orq/civicax/filebank/documents/58232 15 https://www.firerescue1.com/fire-products/technology/articles/calif-county-tests-ai-technology-to- combat-wildfires-izxku ldJcCSeOCvw 16 https://cdn.minderoo.orq/content/uploads/2020/09/14223039/MFFFR-Blueprint-V1-200915.pdf City of Palo Alto Page 10 • Other methods to warn the public: sirens, digital signage (networked), fixed signage. • Integration of utility related wildfire plans • Criminal activities (deter, detect, facilitate prosecution): arson, vandalism, environmental crimes; awareness of existing and planned license plate reader (LPR) systems in the foothills, such as the Town of Portola Valley has recently installed in the Wildland Urban Interface in numerous locations. • Information Sharing: "middleware" to facilitate the efficient and intuitive information sharing among 1) City of Palo Alto users, 2) allied agency and non - government organizations, and 3) the public. • Costs of the above: acquisition, recurring fees (SaaS, monitoring services, UAS as a service, and so forth) • Service Level Agreement (SLA) options • Warranty and Support: maintenance contracts, other ongoing costs, including equipment replacement and repair. Ongoing legislation may also provide guidance and perhaps funding for FFEWS: • After Action Reports (AAR) from CA Fires'' • Recent CA legislation such as AB 477 re: Emergency Preparedness18 and SB 901 (Utilities) The FFEWS information presented below is preliminary but gives a flavor of the challenges and some possible solutions. Purpose of Project: This Foothills Fire Early Warning System (FFEWS) is envisioned to provide public safety agencies, allied organizations (rangers, hospitals, etc.), and the general public with timely and accurate situational awareness (SA) regarding fires and other critical incidents in the greater foothills of Palo Alto. Current State: The greater Palo Alto foothills AO presents a number of challenges for public safety agencies with increased risk to the community: • Jurisdictional Complexity: The various city limit lines are obtuse. Certain ZIP codes and "city names" do not, in fact, reflect the actual jurisdiction. There are two counties (San Mateo, Santa Clara, and this operational area (OA) touches Santa Cruz County). There are two Cal Fire units (SCU & CZU). 17 This report is particularly salient: https://www.dhs.gov/sites/default/files/publications/wui fire report of findings July 24 2019v2 508.pdf 18 https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill id=201920200AB477 City of Palo Alto Page 11 • Assets at Risk: In addition to the priceless environmental resources and habitats, the foothills are the location of high -value residences, commercial buildings, and infrastructure (known as critical infrastructure and key resources, CIKR). • Command and Control: There is no unified system (platform) to facilitate unified command or on -scene management. Incident Command System (ICS) implementation is brought about through paper forms, in -person briefings, and other mechanisms that are indeed tried and true, but also wholly inadequate for a wildland fire in an area such as this. There are times where multiple 9-1-1 Centers receive calls about the same incident (deconfliction). See the North Bay 2018 and 2019 fire after action reports for what could happen: assumptions that another jurisdiction "has it" or there are, in fact, multiple incidents, but the various centers falsely assume otherwise. • Communications: The area is rife with "dead zones" where cell phones, public safety radios, etc. do not function at all or are intermittent.19 • Public Warning: In addition to residents, businesses, and people on other private lands, there is a significant number of visitors: hikers, bicyclists, motorcycle riders, equestrians, etc. • Evacuation Routes & Public Safety Vehicle Access/Egress: The area is served by narrow, winding, dangerous mountain roads. Civilians evacuating are likely to interfere with first responders' egress. Routing needs to be dynamic and real-time, based on current conditions and circumstances (a fixed, static plan is wholly inadequate). • First Responder Resources: There are generally very few public safety responders in the foothills, except the MRSOD and Palo Alto open space rangers. These rangers do not operate at nighttime, however. Thus, early detection is a core goal of FFEWS, along with "force multiplier" concepts to improve the efficiency of response. Desired End State: FFEWS seeks to address, resolve or mitigate many of the above issues through a phased deployment of equipment and a novel approach to community risk reduction. Some of the key anticipated outcomes include: • Improved Situational Awareness: Sensors will allow public safety agencies to be aware of emergent conditions. Future "middleware" (platform) will integrate such data and help represent it geospatially and otherwise to 19 There is ca. $200,000 in CIP TE-05000 that will be used to improve public safety (and other government) radio communications in the foothills. Some of the CPAU improvements to the Montebello Reservoir site, especially the extension of fiber optic cables to that location, will be supportive of that effort. City of Palo Alto Page 12 facilitate a common operating picture (COP) among 911 Centers, EOCs, and ICPs, etc. Early detection is key as is being able to share and visualize data. • Emergency Public Warning and Information: Members of the public (the vast majority of whom, realistically, will not be in any "opt in" database) will receive timely, trusted, accessible (AFN), actionable information. • Efficiency: Limited public safety resources will be utilized effectively. Responding to the same call when multiple agencies believe the same call is "theirs" will be curtailed, as will the more dire case of them believing multiple incidents are the same call. Furthermore, "good intent" responses to what turns out to be steam, a barbeque, etc. will be reduced. • Innovation: It is a core mission of the City of Palo Alto's Office of Emergency Services to foster new technologies. We anticipate all technologies to change over time, some rapidly. This is an opportunity for regional leadership in this regard, as well. Note: Because of the high risk of power failure in these areas and the criticality of FFEWS, solar -battery backup systems will be part of the design. Unmanned Aircraft System (UAS): As cited above, the CPAU Utilities Wildfire Mitigation PIan20 (presented to Council in January 2020) references a number of specific use cases for UAS, including power line inspection, visual inspections of infrastructure, vegetation encroachment, and other related activities. Like other utility operators, such systems in the foothills are both at risk for damage from wildfires and other hazards (such as earthquakes) but are potential source of ignition. Thus, the so-called Public Safety Power Shutdown (PSPS) practice has been implemented by PG&E and other electric utilities to de - energize such lines when conditions dictate. Utilities staff have reviewed the capabilities as part of this Staff Report and are in support of the FFEWS. Camera networks such as ALERTWildfire (see above) are starting to be deployed, but, for the reasons stated in the CPAU Utilities Wildfire Mitigation Plan, cannot practicably achieve the coverage and inspection use case objectives. UAS are also preferable to the current practice of using helicopters, since helicopters are expensive, noisy, polluting, and are often in short supply. Cameras do have the advantage of providing constant coverage. However, even if multiple additional sites were added with cameras, the topography (valleys, etc.) and dense forestation would make it impractical to have full coverage of the area. Furthermore, a camera that sees a possible plume of smoke or even a 911 call "begs the question" of what is going on and where, exactly, the problem (or lack thereof) is. 20 https://www.cityofpaloalto.orq/civicax/filebank/blobdload.aspx?t=53268.17&BIoblD=74684 City of Palo Alto Page 13 Thus, FFEWS will include UAS (drones) as part of the approach. Furthermore, as part of the 2019 4th of July Safety Watch, OES had a local UAS company, Impossible Aerospace, fly drones over the foothills to evaluate their effectiveness. The live video from the drones which was fed to the Incident Commander and others involved in the operation was quite useful. UAS options may be part of the aforementioned RFI, since there are so many options and legal complexities in this arena. Future UAS Options: FFEWS could be expanded to have drones stationed at various FFEWS sites that would be auto -launched when certain conditions or events are triggered (or called in to 911). In addition, UAS platforms can also serve as a "flying network node" to help with coverage issues — and Palo Alto OES and Carnegie Mellon University have conducted proof of concept exercises in the foothills to that end. We also intend to evaluate the addition of UAS to the Intrusion Detection System21, since the IDS does not currently cover the entire rail corridor.22 C. Coordination and Communication among First Responder and other Assisting Agencies, including the use of Volunteers and other Non - Government Resources The stakeholder engagement necessary for the successful implementation of this FFEWS will be robust. It is anticipated that regional partners will collaborate and coordinate on this effort, including, but not limited to: • San Mateo County: Public Safety (Sheriff, OES, Fire), Rangers, others • Santa Clara County: Public Safety (Sheriff, OEM, Fire), Rangers, others • Special Districts: Midpeninsula Regional Open Space District (MROSD), Woodside Fire Protection District, Foothill -De Anza College District Police Department, Menlo Park Fire Protection District, Valley Water, SFPUC (Crystal Springs and water infrastructure in WUI) 21 https://www.cityofpaloalto.orq/civicax/filebank/documents/58232 22 This is being done with a similar IDS rail operator in another state: https://www.palmbeachpost.com/business/20191204/brightline-ramps-up-push-to-prevent-suicide-by-train City of Palo Alto Page 14 • State Agencies: Cal OES, Cal Fire (CZU, SCU), CHP, National Guard, Fish and Wildlife, San Jose State University (research partner) • Federal Agencies: FEMA, EPA, USGS, USFS, Civil Air Patrol, FAA • Municipalities: Los Altos, Los Altos Hills, Woodside, Portola Valley, La Honda, etc. • Site Hosts and Research Partners: Stanford University, Stanford Health Care (Stanford Hospital), SLAC, Stanford Jasper Ridge Preserve, Stanford Research Park (SRP), Carnegie Mellon University (CMU) (research partner) • Private Sector: VMware, California Water Service Co. (Cal Water) (site host), Perimeter (www.perimeterplatform.com) • Regional Organizations: Bay Area Urban Areas Security Initiative (UASI), South Bay Incident Management Team (South Bay IMT), Fire Safe Councils (FSCs) (San Mateo, Santa Clara, South Skyline, etc.) • Private Property Owners and Associations: Palo Alto Hills Neighborhood Association, Los Trancos/Vista Verde Neighborhood Association, etc. A great deal of stakeholder engagement has already been done in various meetings over the past several months. OES has socialized this concept to the vast majority of the listed stakeholders, including a wildfire preparedness community meeting in Palo Alto Hills on 20 July 2019 where we described a vision for some of these proposed improvements and where those community members present were supportive thereof. More stakeholder engagement will continue once council authorizes the FFEWS to promote the technology and resulting capabilities. Since FFEWS will be accessible by all member agencies, by Emergency Services Volunteers (ESVs), and depending on the architecture, eventually by the general public (like the former fire camera on Fire Station 8 and the emergent AlertWildfire camera network), OES will continue to coordinate an ongoing dialog among stakeholders. It should be noted that most of the above agencies and entities already participate annually in a coordinated 4th of July Safety Watch operation. This entails an Incident Action Plan (IAP) to facilitate unified command (UC) among these various agencies, some of which are deployed for that evening and several of which are on call (contingency). The Safety Watch also includes Emergency Services Volunteers (ESVs), such as Community Emergency Response Team (CERT) and Amateur Radio (ham) operators.23 In addition to 4th of July, such ESVs are also routinely deployed by Palo Alto OES at certain look -out locations during high fire conditions (Red Flag). The ESVs utilize binoculars and two-way radios with cell phones being unreliable. 23 www.cityofpaloalto.org/emergencyvolunteers City of Palo Alto Page 15 The technologies discussed in this Proposal will allow ESVs (and, of course, public safety staff) to view the Foothills remotely, to receive alerts (with "conditional selectivity" depending on conditions, time of day, and so forth), and to "compare notes" with others much more rapidly. One might call this a "Virtual Safety Watch." Thus, the FFEWS also seeks to use ESVs more efficiently to help monitor for unsafe actions, events or hazards. Timeline, Resource Impact, Policy Implications The timeline for each component is addressed earlier in the report and recongnizes that the future state of wildfire mitigation actions is to be determined. Wildfire mitigation resources will continue to be prioritized along with other programs in a fiscally constrained budget environment. Additionally, further expansion and build out of capabilities will likely require augmenting resources depending on the tools that City Council wants to further pursue. Stakeholder Engagement OES developed this staff report in conjunction with the Community Services Department, the Public Works Department, the Fire Department, and the Utilities Department. As previously mentioned in this staff report OES among other departments have engaged the Foothills community and allied public safety agencies with respect to this subject matter. Environmental Review This informational report is not a project under the California Environmental Quality Act (CEQA). City of Palo Alto Page 16 CVTY 0 PALO ALTO City of Palo Alto (ID # 12327) City Council Staff Report Report Type: Informational Report Meeting Date: 6/21/2021 Summary Title: 2020 Palo Alto TMA Annual Report Title: 2020 Palo Alto Transportation Management Association Annual Report, 2020 Downtown Commute Survey, and 2021 Strategic Business Plan Summary From: City Manager Lead Department: Transportation Department Description Attached is the Final 2020 Annual Report and the 2021 Strategic Plan Summary from the Palo Alto Transportation Management Association (TMA). The TMA will return to Council with a presentation for discussion and feedback in FY 2022. Attachments: • Palo Alto Transportation Management Association Annual Report 2020 City of Palo Alto Page 1 p��toTMA CY 2020 Annual Report and Strategic Plan June 1, 2021 Palo Alto TMA Management by ALTRANS TMA Inc 855 El Camino Real #13A-200, Palo Alto, CA 94301 P: (650) 324-3127 www.paloaltotma.org Contents 1. Funding Request by PATMA to COPA, 5/9/21 2. About PATMA & PATMA Strategy 3. FAQ for Citizen Watchdogs 4. 16 -month Income Statement & Metrics 5. Funding Request "Commute Level" Forecast 6. Bike Love Commuter Incentives Project 7. Appendix A: COPA, Council & PATMA Advocacy to Caltrain 8. Appendix B: May 2021 COVID Transportation Trends 9. Appendix C: TMA Funding Precedents CY 2020 Annual Report paltoTMA` 1. Funding Request by PATMA to COPA, 5/11/21 May 11, 2021 To: Sylvia Star -Lack, Transportation Manager, City of Palo Alto From: PATMA Board of Directors: Brad Ehikian, Premier Properties; Philip Kamhi, City of Palo Alto; Matthew Weinberg, Amazon/A9; Jessica Roth, The Cobblery; Rob George (ex -officio member), Joint Venture Silicon Valley; and PATMA Staff: Steve Raney and Kruti Ladani Subject: FY22 request for funding • For 5/12 City Council Finance Committee item #3.c: Planning and Transportation / Parking Special Revenue Funds 1. BACKGROUND: PATMA programs support three of four 2021 City Council Priorities: • Economic Recovery - PATMA's transit pass program accelerates economic recovery by providing PA businesses with a competitive hiring advantage that doubles employee retention. • Social Justice - PATMA's transit pass program tops the entire nation in improving social equity for service workers' transportation. • Climate Change - PATMA's programs reduce GHG, and PATMA's Bike Love Commuter Incentives Project aligns uniquely with The City's S/CAP goal to increase biking. 2. ACCOMPLISHMENT: Council has asked PATMA to "graduate," meaning to develop revenue beyond City of Palo Alto (COPA) funding and to collaborate sub -regionally to increase cost -efficacy. In response, • PATMA won a $100,000 federal grant for the Bike Love Commuter Incentives Project. • PATMA will provide fee-for-TDM-service to the new Marriotts at 744 San Antonio. At 75% hotel occupancy, the Marriotts will generate $141,600 fee-for-TDM-service revenue per year to the TMA. • We have verbal agreements for two additional fee-for-TDM-service workstreams. • PATMA and MVgo formed a cost -saving collaboration to bring free public transit Caltrain shuttle service to San Antonio Road by the Marriotts. This represents the first sub -regional collaboration between two TMAs. 3. COUNCIL ADVOCACY REQUEST: At the May 4 Finance Committee meeting, Mayor DuBois floated the idea of freezing the transit pass program. PATMA counterproposes as follows: • PATMA has purchased $582,000 in Caltrain passes over the past three years. We request that Council help advocate at the June 3 Caltrain Board meeting for Caltrain to donate $582,000 worth of new passes back to PATMA. Council leadership has been assumed in reducing PATMA's funding request. 4. FUNDING REQUEST: The TMA requests a $240,000 FY22 (July 2021 - June 2022) COPA budget allocation @ $80,000 for the first three quarters, $0 in the final. 11 CY 2020 Annual Report • $750,000 was allocated in FY20. $453,000 was allocated in FY21, but PATMA subsequently made an updated request for only $350,000. We're asking for $240,000 in FY22. 4A. CALCULATIONS for the $240,000 Funding request: • The Nov/Dec 2020 pandemic surge brought economic performance below COPA's adopted FY21 economic scenario/forecast. PATMA's FY21 funding request reflected that scenario, resulting in PATMA accumulating a CY21 savings of $248,464. • To build our funding needs forecast, we have developed a granular FY22 Commute Level Forecast of the number of commuters leaving the house each weekday. We have reached out to the Finance Committee in hopes of syncing this forecast with COPA's adopted Long Range Financial Forecast. We believe that on 5/1/22, the number of commuters leaving the house each weekday will be 80% of 2019: FORECAST Jul -Sep 21 Oct -Dec 21 Jan -Mar 22 Apr -June 22 % commute activity vs. 2019, WFH-enabled jobs (50% of jobs) % commute activity vs. 2019, other jobs (retail, etc.) 25% 40% 54% 70% 50% 63% 76% 90% Combined 38% 52% 65% 80% Table 1: Commute Level Forecast • Given commute level, we can project expenses to determine the amount of funds to request. A "small" COVID-reduced month of 2020 PATMA expenses was $27,000, for a quarterly expense of $80,000. A "large" PATMA "downtown -only" month is $70,000 in expenses, for a quarterly expense of $210,000. • In May 2020, Council authorized PATMA to serve the Cal Ave area. Our numbers show that 80% commute level for Downtown combined with 80% for Cal Ave equates to 100% of large "downtown -only" month. • Further, with Council's assistance, we expect that Caltrain's Go Pass Donation Program will commence in Jan 2022, yielding $120,000 worth of budget savings for PATMA from Jan -June 2022. Caltrain transit pass subsidies typically take up two-thirds of PATMA transit passes. • In the table below, we extrapolate quarterly expenses from "small" to "large" We subtract expected Caltrain donations. We then start with a July 2020 balance, add in payments, saving from COVID-reduced demand, $240,000 funding request. Then we subtract expenses to yield a small Oct 22 balance: 1 J" ' atibiliktP Expenses $80,000 $120,000 $170,000 Less Caltrain discount 450,000 total $80,000 $120,000 $120,000 July 2020 IPATMA checking balance + 4th COPA FY21 funding pymt + savings due to COVID-reduced demand + FY22 Funding request $25,000 $87,500 $248,464 $240,000 total revenue Less July 21 - Sept 22 expenses $600,964 -$600,000 Net PATMA balance 10/1/22 $964 Table 2: Projected Quarterly expenses, FY2022 $210,000 $210,000 470,000 -$70,000 $140,000 $140,000 $600,000 21 CY 2020 Annual Report 5. COUNCIL PROCESS REQUEST: As far as COPA's "adapt with recovery" strategy, PATMA would like to return to Council Finance Committee in Feb 2022 with an update and potentially a request for an additional FY22 allocation. • Vice Mayor Burt expects stronger growth than LRFF Scenario B, possibly the strongest growth in decades. • Mayor DuBois is bullish on the economic recovery. • Councilmember Filseth is also bullish, believing we need to plan for fiscal upside contingency. • The $8.4M Utilities Transfer Legislation issue may resolve favorably. • Additional stimulus funding may be applicable to the FY22 budget. 6. COUNCIL ADVOCACY REQUEST: As far as is allowable during entitlements, COPA staff should help PATMA "graduate" by ensuring that new developments join PATMA and use PATMA's expert fee-for-TDM-services. In the past, COPA entitlements have required 611 Cowper, the Marriotts, and Hotel Parmani to join the TMA. The City's TDM Ordinance Update should recommend PATMA because PATMA's city-wide scale provides more cost-effective TDM than individual projects can achieve. Santa Monica and Carlsbad provide examples of cities advantaging their TMA. 7. COUNCIL ADVOCACY REQUEST: To further accelerate economic recovery, we request that COPA analyze and remove any substantial hurdles to leasing vacant space in the Cal Ave area. • Reactivation of the Parking Assessment District might be warranted. • Increased ability to change uses may help. Thanks for your consideration, PATMA 2. About PATMA & PATMA Strategy • Palo Alto Transportation Management Association (PATMA) is a transportation demand management (TDM) innovator and multiple times federal grant winner. PATMA maintains a 501c3 nonprofit status. Established in 2016, PATMA is responsible for reducing single -occupant vehicle trips, reducing congestion and demand for parking, and improving the quality of life in Palo Alto by mitigating transportation -related emissions. • PATMA is a TDM social equity leader, undertaking three unique-in-the-U.S. activities: o Buying and managing monthly transit passes for 290 low-income commuters (pre-COVID) o Providing "after hours" Lyft subsidy for low-income commuters before 6am and after 8pm o Undertaking door-to-door, in -person outreach to 800 Palo Alto businesses. • PATMA also provides Palo Alto in -commuters with subsidized Waze Carpool rides, without income restriction. • PATMA also provides TDM services to multi -family residential, major employers, mixed -use projects, hotels, schools, and medical facilities. 31 CY 2020 Annual Report Our fee-for-TDM service portfolio includes: • TDM Implementation Plans for office/employers, residential, hotels, schools, mixed -use, medical centers, etc. • For project entitlements, TDM analysis using a flexible VMT/GHG/trip reduction model based on quantified real -world results, enabling collaborative what -if scenario planning to maximize cost -efficacy. • TDM compliance monitoring and reporting by properties to the public sector. • Shuttle operation, including quality assurance monitoring and customer support. • Transit pass program for Caltrain, SamTrans, VTA, and Dumbarton Express, including discounts for low-income / below -market -rate commuters. • Bike commute incentive program. • Waze Carpooling discount. • Lyft discount • Emergency Ride Home • Commute surveys that increase TDM program utilization by 30% (another unique-in-the-U.S. activity) and improve COPA's Business Registry. • New employee/student commuting orientation and one-on-one commuting assistance for employees and students. Our programs have the largest scale in Palo Alto. We pool resources across projects to provide TDM cost-effectively beyond the capabilities of a single, isolated project. • PATMA has reduced demand for more than 300 parking spaces, equivalent to a $20M parking structure. • PATMA enjoys a strong relationship with the City of Palo Alto, which provides a Board member and a staff liaison. The majority of our funding comes from City of Palo Alto parking permit revenue. • Out of approximately 40 proposals, PATMA was one of only two winners of a $100,000 federal Transportation Research Board "Transit IDEA" grant to increase bike commuting. For this project, PATMA's unique entrepreneurship and software development expertise enable the development of the technologically -intensive location -tracking fintech mobile app. PATMA is pioneering this nationally visible bike program with 20 partners. • PATMA also enjoys a unique position among U.S. TMAs in "COVID-safe return -to -work," pioneering safe protocols and developing the most accurate forecasting methodology for post-COVID commute mode share. • ALTRANS TMA Inc. provides staffing services to PATMA. ALTRANS is a 29 -year -old Bay Area firm providing TDM services to TMAs and employers, including shuttle bus operation and analytics. 2.1 PATMA CY 2021-2023 Strategic Plan Strategies (in priority order) 1. Collaborate with City Council to define "self-sustaining," also known as "graduation." Part of this notion is to develop revenue beyond COPA funding and to collaborate sub -regionally to increase cost -efficacy. 41 CY 2020 Annual Report • Currently, the main funding source for PATMA is the University Avenue Parking Fund, where out-of-town commuters and employers pay in. The commute behavior nexus of SOV commuters paying for the TMA's trip reduction is more direct than other funding mechanisms. Through this mechanism, residents pay nothing for the TMA. The TMA will develop an understanding of why Council prefers to move away from the Parking Fund. • In the past, Council has expressed interest in providing funding for the TMA via a business tax. The TMA will explain U.S. TMA funding precedents (please see Appendix C: TMA Funding Precedents) and will develop an understanding of Council's thinking about funding. • Understand Council's reaction to the TMA's graduation progress {$100,000 federal Bike Love grant, $141,600/year Marriotts TDM, two additional fee-for-TDM-service workstreams, cost -saving collaboration with MVgo}. Collaborate with Council to balance Board meeting transparency (open -to -the -public -meetings) against the need to maintain sensitive client relationships. • Advocate for COPA's 2021 TDM Ordinance Update to honor Council's "self-sustaining" definition. Once the definition of "self-sustaining" is set, define annual progress goals. 2. Cost -efficacy: Decrease cost per SOV reduced by 60%. We expect to lower costs via the Caltrain Go Pass Donation Program and via Bike Love. 3. Increase cars removed back to 118% of pre -pandemic levels (456 cars) in June '22. • Pre -pandemic in Feb '20, cars removed was 387. The lowest point in the pandemic was 36 cars removed in May of '20. 4. Organization Growth. Appoint a new Board Chair. Add one or more Board members. 5. Cash Flow Management. In anticipation of tight funding combined with significant program growth, expertly manage cash flow by throttling back programs as needed in Dec '21, Mar '22, and June '22. • Using PATMA's advanced methodology, a Spring 2022 commute survey can be expected to increase program uptake by 30%. Before embarking on the survey, PATMA will ensure there is financial capability for this increase. The survey could be tightly coupled with improving COPA's Business Registry. As an alternative, PATMA can forego the opportunity to increase program uptake by administering a less innovative commute survey. 3. FAQ for Citizen Watchdogs We encourage scrutiny of our operations by COPA and citizen watchdogs, including pointed questions asking us to justify our existence. Previously, we benefited from a "nonprofit audit" undertaken by the City Auditor. Some watchdog questions are repetitious, to the point where we can provide this FAQ that can help inform subsequent questions/issues that are submitted: 3.1 ROI, metrics, management & administrative overhead WATCHDOG ISSUE: PATMA is a small, one -city TMA focused on two commercial cores. Due to Covid, the potential for PATMA success has been significantly reduced by clinical precautions and preference for 51 CY 2020 Annual Report WFH. The duration of these factors is unknown but easing steadily. Palo Alto's ambition for TDM and TMA potential also is severely limited by the higher ROI programs operated by Stanford University, Stanford Medical Center/School, and Stanford Research Park's SRPgo. TDM is expensive. The claim that PATMA has low ROI is false. PATMA is the national leader in creating advanced TDM metrics, having invented the apples -to -apples comparison metric: "Annual cost of a single non-SOV commute." Thanks to City Councilmembers, including Eric Filseth, for urging PATMA to move from touchy-feely "effort -based" TDM metrics to MBA -style "performance -based" metrics. By the apples -to -apples measure, PATMA operates programs that are cost -competitive with major employer TDM programs and SRPgo. Unlike major employers, Stanford Campus TDM is more cost-effective. Motivated partly by the 1980's General Use Permit I ("add buildings with no new net peak hour trips"), Stanford Campus TDM has a $0 "Annual cost of a single non-SOV commute." The Gates Foundation has a negative $432 cost of a year's worth of trip reduction: Annual cost of Row # For comparison: TDM Program efficacy non-SOV commute 1 Gates Foundation TDM: $12 SOV fee yields 32% SOV -$432 2 "Stanford -like" TDM: $3 SOV fee yields 50% SOV $0 3 Self -motivated bike or carpool 4 Go Pass for downtown TechCo at 35% Caltrain mode $0 $814 5 Go Pass for Stanford campus @ 17% mode share $1,676 6 Go Pass for an employer with 10% mode share $2,850 7 Private express bus service from SF, 25 riders $3,508 8 New structured parking space (SOV commute) $3,908 9 Employer housing stipend to live close to work $10,000 Table 3: from PATMA's CY2018 Annual Report. Explanations and calculations for each row are provided. Compared to typical US TDM program efficacy, PATMA is cost-effective: PATMA Program Efficacy Annual cost of AL non-SOV Waze Carpool $1,224 Transit Pass Subsidy - pass outlay $1,572 Transit pass subsidy including staff time: $2,072 Lyft Program $1,855 Scoop Program $2,729 Table 4: from PATMA's CY2018 Annual Report. PATMA's management and administrative overhead is low compared to other TMAs. During COVID, PATMA developed the Bike Love program and built a fee-for-TDM-services business, building two new PATMA programs. Pre-COVID, the TMA: • Lowered hourly labor costs to one-half of other Bay Area TMAs. 61 CY 2020 Annual Report • Decreased management overhead percentage -of -expense to 10.5%. In comparison, larger TMAs have higher management overhead: • Chester County TMA ($1.6M annual revenue) 15% • Greater Valley Forge TMA ($1.2M) 22% • St. Paul TMO ($1.2M) 16% • Washington Park (Portland) ($1.1M) 14% Our well -researched insights into WFH are covered in Appendix B. 3.2 Fold PATMA into COPA's Office of Transportation? WATCHDOG COMMENT: Please consider folding PATMA into the COPA OOT (Office of Transportation), bringing the work in-house. PATMA staff (Steve Raney & Kruti Ladani) combine for more than 40 hours per week of labor, so the TMA's work cannot be added to the duties of an existing COPA staffer. A new Full -Time -Equivalent (FTE) COPA staff member would be required. PATMA's annual labor cost is 38% less than the average annual $241K burdened cost of a COPA employee. PATMA's work requires a unique skill set. It will be challenging for COPA to hire an FTE with the necessary skillset: Unique PATMA staff capabilities: • Bizdev: Ranked #1 out of 79 proposals to win a $1.1M FTA Mobility on Demand Sandbox grant. • Bizdev: Ranked #2 out of 40 proposals to win a $346K TRB Transit IDEA grant. • Operate U.S.'s largest equity- and employee -retention -increasing transit pass program. Data -scraping backend. Bilingual rider support. • U.S.'s first Apple/Google Wallet (fintech) bike commute incentive program. • Mobile app software product development and project management. • Commute surveys that increase TDM program utilization by 30%. 3X higher response rate with 40% lower cost than the previous vendor. Provide better data for COPA Business Registry. • Inventor: MBA -style TDM metrics including "cost per year per SOV de -generated." • Inventor: Mobility on Demand -based regional 50% SOV Cap, including state bill. • Inventor: Rapid ranking of eight regional congestion pricing policies on {political viability, equity, cost -efficacy, ease -of -implementation, congestion reduction, GHG reduction}, in collaboration with MTC, Bay Area Council, FWHA, and WSDOT. • MBA -style post-COVID forecast of commute traffic level and lunchtime retail foot traffic. • COVID-safe return -to -office planning, mode split forecasting, and confidence -boosting messaging. • Authored 18 peer -reviewed TDM and transportation research papers. • From an operations and customer support standpoint, it matters that PATMA staff reside in PA and San Mateo, closer than other staffing options. 3.3 Single -city, small employer TMA WATCHDOG ISSUE: I continue to question PATMA's potential for success as a single -city, small employer TMA. I can support TMA and city staff to search for proven small -employer model TMA in comparable 71 CY 2020 Annual Report regions anywhere in the US. If best practices exist, let's understand their success before, during, and after Covid 19. PATMA has no peers. We are unique. You are experiencing best practices in Palo Alto. See Section 2 above, "About PATMA," for five PATMA activities that are unique-in-the-U.S. PATMA bylaws have been changed to encourage PATMA to provide fee-for-TDM-services to nearby cities, as part of helping to accelerate sub -regional TDM collaborations. PATMA and MVgo formed a cost -saving collaboration to bring free public transit Caltrain shuttle service to San Antonio Road by the Marriotts. This represents the first sub -regional collaboration between two TMAs. 3.4 Scenario planning for slower/faster recovery? WATCHDOG COMMENT: For FY22, COPA has contingency planning to address slower recovery. Rather than selecting a "most likely" scenario, Caltrain developed four "plausible and divergent" future scenarios, with preparations to adapt to reality as it evolves. Palo Alto depends heavily on inbound office/retail/restaurant customers, employees, and tenants. It has been nearly impossible to project return -to -normal. The City is developing scenarios to anticipate tenant and sales tax metrics. Integrating these scenarios into PATMA operations will be a challenge. Garage occupancy and foot traffic are a proxy for local economic recovery, although the citizen car count method may not be as accurate as a traffic engineer. It's been observed that streets are filled up while the garages are empty. Typically, Thur/Fri are the busiest at noon. As the City's parking enforcement changes, these observations will change accordingly. Saturdays have more garage usage throughout the day rather than typical lunch/dinner peak times. I ask that PATMA devote significant time to disclose how PATMA revenues and expenses will flex to uncertain expectations of the employees and employers served by the PATMA. Twice in the past, PATMA has throttled back our overly -popular programs to prevent bankruptcy. We have a proven track record of expert cash flow management and nimbly reacting as future scenarios become a reality. In the case of a slower economic recovery scenario, our financial levers include: • reducing labor costs. • reducing program costs via throttling. • in Section 1, we ask the COPA to assist in lowering our Caltrain transit pass costs. • PATMA's unique, persuasive commute survey increases program participation by 30% and provides improved data for COPA's Business Registry. If there isn't a way to fund 30% program growth, we won't undertake the commute survey (or we'll neuter the survey). • increasing grant writing and philanthropic fundraising. • growing our fee-for-TDM-service business. We have verbal agreements for two new projects. In Section 1, we ask the Finance Committee for assistance in this. • pursuing short-term loans. In the case of a faster economic recovery scenario where program demand will outstrip our financial resources, our financial levers include: 81 CY 2020 Annual Report • in Section 1, we ask to return to the Finance Committee in Feb 2022 to potentially make a mid -fiscal -year request for additional funds. • reducing program costs via throttling. • increasing grant writing and philanthropic fundraising. • expanding our fee-for-TDM-service business. • pursuing short-term loans. At the 4/20/21 Finance Committee meeting, PATMA asked to contribute to a City -operated economic recovery dashboard with longitudinal tracking of the following monthly indicators: • Clipboard patron, bike, pedestrian counts of downtown & Cal Ave (PATMA assists these) • Parking garage occupancy (residents have been taking counts already) • Parking permit revenue • Monthly tax receipts (Kiely Nose indicated COPA is putting a focus on this) • PATMA's monthly "cars removed" metric • Commercial leasing status. PATMA has provided (and has offered to continue to) a CoStar commercial leasing report on 600 Palo Alto buildings encompassing 4M square feet in Downtown and Cal Ave. 4. 16 -month Income Statement & Metrics For COPA FY 2021 (July '21 -June '22), City Council allowed the use of City funds to apply to both Downtown and California Avenue Business District TDM. Due to the shelter -in -place public health order, April -June 2020 saw an 87% drop in demand for TMA transit fare subsidies and carpool app subsidies. During this time, VTA, SamTrans, and the AC Transit Dumbarton Express stopped collecting fares on their services, and the City suspended parking enforcement in the Downtown and California Avenue Business Districts. However, July -December 2020 showed increasing demand for TMA services as fare collection resumed by VTA on 8/1/20 and SamTrans on 8/16/20. Once fare collection resumed, the TMA saw demand for its services rise by 50%. September 2020 transit subsidy demand equaled 29% of the pre -pandemic peak. February 2020 brought peak demand for TMA activity in Calendar Year 2020, with 387 cars removed from Downtown due to TMA programs. 82 cars were removed from the Downtown and California Avenue Business Districts during September 2020, and cars removed per month grew by 12 cars per month. The direct subsidy cost per car removed remained stable at $135 per car per month. The third COVID spike around the Thanksgiving and December 2020 holidays set the economic recovery back considerably, and impacted demand for TMA programs. Demand for TMA services is expected to follow the public health orders. For example, more permissive public health orders allowing additional retail and business activity are likely to see a rise in demand for TMA services. Demand for these programs is also impacted by the City resuming residential permit and commercial parking restrictions. 91 CY 2020 Annual Report NUMBER OF CARS REMOVED PER MONTH 400 350 - 300 250 200 150 100 50 0 375 387 Jill 34 tit { 36 51 + t r -•. ++ -`- -- ,�� .11 --ter 66 69 82 1 1 1 1 94 1 76 1 $70,000 $60,000 $50,000 $40,000 $30,000 99 $20,000 1 JAN '20 FEB '2O MAR '20 APR '2O MAY '20 JUN '2O JUL '2O AUG '2O SEP '2O OCT '2O NOV '2O DEC '2O JAN '21 FEB '21 MAR '21 APR '21 Transit: cars removed Waze: cars removed Lyft: cars removed Total Cars Removed — —Total Expenses Figure: Graph showing the monthly cars removed and the total monthly expenses. $10,000 $- TOTAL MONTHLY EXPENSES 101 CY 2020 Annual Report 'alttoTMAI 20 totals COPA FUNDS RECEIVED $187,500 EXPENSES Administrative expense Management Labor Biz (rent, office, ins, etc) Program expense Transit subsidy Program Operation Labor Waze Carpool (Google) Lyft Bike Love TOTAL EXPENSES Savings due to COVID $187,500 $187,500 $87,500 $6,140 $6,140 $6,324 $6,324 $6,324 $6,324 $6,324 $6,324 $6,324 $6,324 $6,324 $6,324 $650,000 $87,500 $86,832 $1,019 $1,480 $1,042 $1,414 $1,075 $1,268 $1,053 $339 $317 $1,247 $169 $193 $10,619 $35,276 $36,737 $33,955 $4,892 $3,313 $6,012 $7,451 $10,420 $6,140 $6,324 $6,324 $6,324 $6,324 $6,324 $4,500 $13,482 $11,147 $4,068 $1,101 $261 $93 $1,590 $1,754 $2,092 $1,705 $757 $739 $821 $4,200 $58,944 $65,733 $60,885 $24,728 $18,895 $20,929 $26,266 $8,817 $10,015 $11,597 $11,255 $6,324 $6,324 $6,324 $6,324 $120 $126 $90 $959 $1,095 $1,136 $1,426 $87,500 $6,324 $6,324 $6,324 $6,324 $42 $64 $42 $654 $11,585 $180,904 $11,592 $11,698 $6,324 $68,492 $6,324 $6,324 $3 $1,425 $15,498 $1,474 $1,526 $34,991 $9,576 $11,214 $6,324 $6,324 $9 $1,672 $1,589 $4,200 $22,884 $24,201 $26,718 $25,499 $25,854 $401,536 $25,757 $25,936 $23,948 $26,106 $248,464 Metric Jan '20 Feb '20 Mar '20 Apr '20 May '20 Jun '20 Jul '20 Aug '20 Sep '20 Oct '20 Nov '20 Dec '20 Transit: cars removed Waze: cars removed Lyft: cars removed TOTAL CARS REMOVED 253 271 255 113 9 104 49 12 8 37 28 46 13 4 375 387 312 54 4 4 1 4 35 51 61 1 4 62 76 78 80 65 2 1 0 0 0 5 5 7 7 7 66 68 82 85 87 72 Table 5: Monthly expenses and number of cars removed. Jan '21 Feb '21 Mar '21 Apr '21 78 86 69 92 0 0 7 8 0 8 0 8 85 95 77 100 111 CY 2020 Annual Report paltooTMAI 5. Funding Request "Commute Level" Forecast PATMA has developed a forecast of 2022 Commute Level and lunchtime retail foot traffic. The forecast covers Summer 2021 - Summer 2022 for the "most likely scenario" of: • downtown & Cal Ave Palo Alto commute traffic level • and lunchtime retail foot traffic level relative to 2019. In contrast, Caltrain is developing four "plausible and divergent" future scenarios and is planning to respond to whichever occurs flexibly.' We have accessed some unique data sources: • CoStar commercial leasing report on 600 Palo Alto buildings encompassing 4M square feet • Property manager insights on "zombie leases" • Smith Travel Research hotel "RevPAR" forecast • PATMA's COVID transportation trends and confidence -in -travel -modes analysis • Updated work -from -home predictions by Stanford Prof. Nicholas Bloom • UCLA Anderson's "Roaring Twenties" economic forecast Forecast: On 5/1/22, the number of commuters leaving the house each weekday will be 80% of 2019: FORECAST Jul -Sep 21 Oct -Dec 21 Jan -Mar 22 Apr -June 22 % commute activity vs. 2019, WFH-enabled jobs (50% of 25% 40% 54% 70% jobs) % commute activity vs. 2019, other jobs (retail, etc.) 50% 63% 76% 90% Combined 38% 52% 65% 80% Table 6: Commute Forecast for spring 2022. We split our commute analysis in two: • Work From Home (WFH)-enabled commuters, where workers will gradually Return to Office (RIO). Employment has been stable in this sector. Employees in offices will strengthen retail performance. • And non-WFH-enabled workers, where employment has been less stable. In Santa Clara County, we have a 50/50 split between WFH-enabled and non-WFH-enabled. WFH-enabled commute level = • function of {office leasing decrease, COVID anxiety, telework increase, % students in classroom} Other jobs commute level = • Function of {WFH-enabled commute level, Palo Alto WFH resident retail trips, federal stimuli, employment decrease, leasing decrease, COVID anxiety} 1 The Caltrain scenarios are combinations of two factors: {high/modest Work From Home (WFH) increase} and {high/low public support for Caltrain funding}. Caltrain Biz Strategy: Scenario Planning Feb 2021 121 CY 2020 Annual Report Some of our data sources are economically optimistic and some are economically pessimistic. Our forecast leans optimistic. We have undertaken stepwise refinement, subjecting the forecast to critique by subject matter experts.2 Our analysis detail (below) includes: assumptions, inputs, sources, WFH, and transportation. Assumptions • Any substantial hurdles to leasing vacant space in Palo Alto's second downtown, Cal Ave, will be reduced. (Reactivation of the Parking Assessment District might be warranted. Increased ability to change uses may help.) • All schools will be safe and open in the Fall, eliminating the need for parents to stay home. • Silicon Valley will avoid a fourth COVID wave. • A federal infrastructure program, The American Jobs Plan, will be enacted. • Overall COVID anxiety levels among people will gradually decrease. First -movers will prove out the return to the new normal, making followers sufficiently confident to jump in. Some Work From Home (WFH) survey research incorrectly forecasts based on the current (rather than future) anxiety level. • We make no assumption about requiring vaccination passports to re-enter buildings. Some Universities are already mandating passports. We are watching to see if influential first -mover employers will create a tipping point for mandatory vaccination - will interpretation of liability motivate this? This will accelerate confidence and economic recovery. Forecast Inputs Table r Jul -Sep 21 Oct -Dec 21 Jan -Mar 22 Apr -June 22 % Bay Area eligible vaccinated 80% 85% 90% 90% % office bldgs re -opened 65% 80% 90% 95% % Office workers in the office each day 40% 50% 60% 70% % hotel $ per avail rm vs. 2019 62% 66% 70% 74% % occupied comm. space vs. 2019. 85% 88% 91% 94% % comm. lease $/sf vs. 2019. (estimated forgiveness added to 70% 77% 84% 91% CoStar) % days week HS students physically in school 100% 100% 100% 100% Table 7: Commute forecast inputs 2 Thanks to Palo Alto Chamber of Commerce and Premier Properties for March review & improvements. 131 CY 2020 Annual Report Economically Optimistic Sources UCLA Forecast: • There will be a "Roaring Twenties" economic snapback • 3/10/21: UCLA Anderson is bullish • 12/9/20: booming 6% growth in Apr -June 2021, followed by 3% growth each Q into 2023. • The tourist -dependent hospitality sector will remain 20% below peak until 12/2023. Travelers are concerned about safety. Consumers feel pinched by lost income. • "It has permanently eliminated many service and retail sector jobs and made the economy more unequal" • "If WFH & online shopping persists, we'll be over -supplied on office and retail space." Vaccinations • California Governor Newsom expects that the state will be fully re -opened on 6/15/21. • 4/6/21: Santa Clara County Public Health (SCCPH) expects that 80% of eligible people will be vaccinated by August 2021. • U.S. willingness to vaccinate has been growing with the number of vaccines given. Now only 17% of eligible people are anti-vax. Bay Area has fewer Republican and evangelical refuseniks, so it will have a higher vaccination rate than the U.S. average. 3/30/21: https://www.yahoo.comjnews/only-17-percent-americans-now-151200713.html. Jobs • As of February 2021, the U.S. economy was down 10M jobs since Dec 2019, from 152M to 142M. 4.3 million left the labor force, with the rest becoming unemployed. The "realistic unemployment rate" is 8.3%, not the reported 6.3%. Leisure/hospitality is down 4M jobs. • The March 2021 U.S. jobs report was encouraging, adding 916K jobs. • On 4/16/21, Joint Venture reports: Silicon Valley Unemployment Falls To 5.1%. Rate is less than half of the April high of 11.6% and higher than 3.2% mid -March last year. As the Iockdown eases amid declining coronavirus case rates, Silicon Valley's unemployment rate is back to where it was in November 2020. Late 2020 economic restrictions, along with a wave of COVID-19 cases, contributed to an unemployment rate reaching nearly 6% in December. Since then, the region has experienced a gradual decline to 5.1% as of March. The March data reflect month -over -month employment upticks in retail, social assistance and ambulatory health care services, and restaurants and food services. Return to Workplace • Google joins tech's reopening wave with April return to office, 3/31/21. Google: some U.S. employees back this month (April). Workers can voluntarily return or continue working remotely until September. Plans to have employees back in the office three days a week in the fall as it tests a hybrid work model. • 3/31/21 article: Facebook's phased reopening starts in May for 10% of regl workforce. • 3/31/21 by The Information. Re Amazon Return to Workplace: "Our plan is to return to an office -centric culture as our baseline." Amazon employees in the U.S. "will start coming into the office through the summer, with most back in the office by early fall." • 3/31/21 article: Uber re -opened its SF offices on Mar 29th, at 20% occupancy and on a voluntary basis. 141 CY 2020 Annual Report • Salesforce Tower reopens in May. https://www.cnbc.com/2021/04/12/salesforce-will-reopen-san-francisco-tower-in-may.html • A study led by the Greater Washington (DC) Partnership (3/31/21, WaPo) - An alliance of the region's top chief executives, found employers expect 75 percent of their workforce to return by the end of fall. Economically Pessimistic Sources Commercial Leasing • CBRE 2021 Outlook. Expect a gradual improvement, no Roaring 20s. Bioscience demand for space in Silicon Valley will continue to increase. • Premier Properties (large local property manager): As of Mar '21, commercial leasing revenue is off by a vast, hidden amount. Some "leased" offices have gone into "storage mode" - empty with a 60% rent discount - sort of a Zombie Lease. For retail, some rent has been forgiven. Some new retail lease offers expect a gradual recovery - for example: first six months free, 30% of 2019 rate for next 12 mo, 70% of 2019 rate for months 19-30. • CoStar downtown PA commercial leasing report (3.7M sf, 447 bldgs). a) "Vacancy" up from 6% in Apr '20 to 12% Mar '21 (does not include "storage mode"). b) Asking rent/sf down: $8.20 in 4/2020 to $6.80 in 3/2021. • CoStar Cal Ave commercial leasing report (117 bldgs, 1.1M sf). a) "Vacancy" up from 6% in Apr '20 to 12% Mar '21, b) Median months to lease a space: 18 mo. California Restaurant Association • Up to 900,000 out of 1,400,000 California restaurant jobs have been lost. • Nationwide, 110,000 restaurants — or 1 in 6 — closed • "The economic losses to restaurants, our workforce, and their communities have been disproportionately enormous. The road to true recovery will be long." Hotels • Smith Travel Research (STR) is one of the best sources. They expect 2024 for a full Bay Area hotel recovery. RevPAR is revenue per available room: STR Hotel fcast (inputs) 1 % Rev per avail room (RevPAR) vs. 2019 100% 51% K2021 66% 2022 83% Average Daily Rate $131 $104 $109 Occupancy 66% 42% 52% RevPAR in $ $87 $43 $75 2023 89% Table 8: Smith Travel Research hotel recovery forecasts 151 CY 2020 Annual Report CALIFORNIA HOTEL OCCUPANCY 100% 75% 5096 25% 0% A h ill Ili!!! Nov Feb Mar Apr May Jun Jul Aug Sep Oct Dec Jan Figure: Mar 2020 - Feb 2021 Work From Home (WFH) Analyses Work from Home (WFH) - Stanford Professor Nicholas Bloom • expects about 1.5 WFH days per week post-COVID, for workers who can work from home (50% in Silicon Valley). Workers desire 40% of working days from home. Firms are planning on 20 to 25% of working days from home. Better educated and higher -income workers will WFH more than others. • Broadly speaking, I would say Palo Alto will be similar or faster than the national recovery in terms of jobs and income because of the outperformance of tech, plus the relatively higher rates of vaccinations. With Stanford returning to campus gradually, this should also help retail spending a bit. • Longer run as I mentioned, I think WFH is net neutral probably for PA as I suspect we are about net neutral on commuting (probably more people commute in than out, but higher earners live here so having them stay locally for 2/5 days a week will boost local spending to offset the reduction in local commuting in). • Why working from home will stick, 1/21/21: How WFH works out, June 2020. Work from Home (WFH) - Glassdoor • Most employees Prefer a Hybrid/WFH Model, Even After Offices Reopen. 86% say they would prefer to WFH at least part of the time after offices reopen. https://www.glassdoor.com/blog/covid-19-return-to-work-survey/ Work from Home (WFH): Remote Work in the Bay Area: Preliminary Findings • By Bay Area Council's Economic Institute, 9/25/20 • Bay Area has the highest % of remote eligible workers in the state. • Within the region, San Francisco and Santa Clara counties (both 51 percent) have the highest share of their workforce able to work from home. • As average income increases, the share of workers eligible to work from home rises. • Among those employed in the Bay Area in occupations with an average annual income below $40,000, only 6 percent are eligible to work from home. • Among those employed in an occupation with an average annual income over $150,000, 76 percent are eligible for remote work. • There are racial and ethnic inequities in the share of workers eligible to work from home: • 51 percent of the white workforce is eligible to work remotely, while only 33 percent of Black individuals and 30 percent of Latinx individuals employed in the region are remote work eligible. 161 CY 2020 Annual Report Transportation Info PATMA's COVID transport & confidence -in -travel -modes - Appendix B, 3/8/21 • PATMA's COVID transportation trends and confidence -in -travel -modes analysis • SJSU MTI is bullish re transit bouncing back. • Bay Area Healthy Transit (BART, AC Transit are leaders) provides confidence -boosting messaging for safe return -to -transit Federal transit stimulus for the Bay Area is providing more $ than expected losses from Mar '20 thru June '21. Caltrain & VTA to get $39M, SamTrans $16M • Bay Area transit received $2.2B from the first stimulus, covering expected losses. The Bay Area is likely to receive an additional $1.7B. BART ridership and revenue likely to lag. • Budget officials say both will be behind pre -pandemic levels for most of the decade. But even with greater access to coronavirus vaccines over the coming months and the Bay Area workforce's eventual return in some form to office buildings, agency officials don't expect ridership to return even to 80% of pre -pandemic levels until the end of the decade. BART Financial Planning Director Michael Eiseman told the agency's Board of Directors that BART's ridership growth in recent years has been inextricably linked to the economic growth of downtown San Francisco. "Before the pandemic, two-thirds of our trips had an origin or destination at Market Street station," Eiseman said. "So if those regional travel trends do shift away from downtown, our recovery may depend on our ability to adapt and serve other markets. Cars Removed and Cost per SOV Removed Forecast PATMA removed 387 cars from the downtown area in Feb 2020, just before the pandemic hit. Based on our Commute Level Forecast, in Spring 2020, we expect to be at 80% commute level for downtown and for Cal Ave, equaling 100% of a large "downtown -only" month. In addition to recovering PATMA cars removed to pre -pandemic levels with our current programs in June 2022, we add in the Bike Love program that grows to an additional 60 cars removed. To fit our funding request, we froze growth at the June 2022 level for the next three months. PATMA has the ability to throttle back programs to meet cash flow requirements. The table below provides our Feb 2020 pre -pandemic month, and then shows program growth from June 2021 through June 2022, with Bike Love initiating in July 2021: Metric Caltrain: cars removed Bus: cars removed Waze: cars removed Lyft: cars removed Bike Love: cars removed TOTAL CARS REMOVED 387 ILFeb Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep '20 '21 s1 121 '21 '21 '21 , '2_i '22 j '22; ;22 '22 '22 '_22. '22 '21 '21 q 182 73 82 91 100 109 118 127 136 145 154 163 173 182 182 182 182 89 36 40 45 49 54 58 63 67 72 76 81 85 89 89 89 89 104 0 9 19 28 38 47 57 66 75 85 94 104 113 113 113 113 12 7 7 8 8 9 9 10 10 10 11 11 12 12 12 12 12 0 5 10 15 20 25 30 35 40 45 50 55 60 60 60 60 116 144 173 201 229 258 286 314 343 371 399 428 456 456 456 456 171 CY 2020 Annual Report We forecast a 60% reduction in monthly subsidy per car removed from • $141/month in June 2021 to $56/month in June 2022. ($1,698/year to $676/year.) This will represent one of the lowest TDM costs in the U.S. The primary driver of this cost reduction will be the initiation of Caltrain's Go Pass Donation Program, which we expect to launch in January 2022. In Dec 2021, Caltrain will represent 58% of our program subsidy, going straight to zero in the next month. Our new Bike Love program also projects to be substantially more cost-effective than bus, Waze Carpool, or Lyft subsidies. The graph below shows projected cars removed growth on the left-hand axis, with average monthly subsidy on the right-hand axis. Our first data point shows the pre -pandemic Feb 2020 level. 181 CY 2020 Annual Report 500 - NUMBER OF CARS REMOVED PER MON'T'H: 450 - 400 - 350 - 300 250 200 150 100 50 0 $153 f•Pk%`.� $141 ri $136 •••11..._ $132 $130 $128 $126 $ 5 • '#- - -i-_— $12 1 t s 1 NMI A $55 1 FEB '20 MAY '20 JUN '21 JUL '21 AUG '21 SEP '21 OCT '21 NOV '21 DEC '21 JAN '22 FEB '22 MAR '22 APR '22 MAY '22 JUN '22 Caltrain Bus Waze Lyft Bike Love — — Cost/SOV/mo Figure: Graph showing the monthly cars removed forecast, FY22 CAST PER CARD REMOVED PER MONTH 191 CY 2020 Annual Report jal oTMAI 6. Bike Love Commuter Incentives Project Who, What, When, Where • CONCEPT SUMMARY: Palo Alto TMA is developing a first -in -the -world "Bike Love" pilot with software partner ByCycling. We will provide daily incentives for verifiable active mode first -mile commute trips to transit and active mode commutes from home to work, up to $600 per year per commuter. Geofenced location tracking will confirm bike, e -bike, e -scooter, and e -skateboard trips. Within 60 seconds, incentive dollars may be redeemed at local merchants via Apple/Google Wallet e -debit cards. By restricting transaction authorization to local merchants, program funds are recycled back into the local economy, multiplying program impact. Bike Love scales to other cities and major employer commute programs, increasing transit ridership at no cost to transit operators. • Bike Love Summary in 60 seconds (video) • Our 15 -month project, funded by a $100,000 TRB Transit IDEA grant, commenced Feb 2021. We will develop and implement Bike Love for commuting to Palo Alto job sites, measuring program efficacy and scalability. Total budget, including partner matching, is $346,000. Our project begins with a five -month software development and validation phase, followed by a ten-month deployment phase. • Not to brag, but we estimate that about 40 TRB Transit IDEA grant proposals were submitted and two awards were made. So that's approximately a 5% chance of winning. • 20 research partners include federal Transportation Research Board, American Public Transit Association, public transit operators (Caltrain, VTA, LA Metro, City of Palo Alto, Commute.org, Austin Capital Metro Transit), Bay Area MTC, Caltrain's secure bike storage vendors (BikeHub, eLock BikeLink), City of Menlo Park, City of Redwood City, bike shop (Palo Alto Bicycles), regional planning advocates (Silicon Valley Leadership Group), fintech industry leaders (Virtual Incentives, Marqeta, Sutton Bank), Silicon Valley Bike Coalition, & Altrans TMA Inc. • About the federal Transportation Research Board's "Transit IDEA" grant program: "The Transit IDEA Program (started in 1992) is a part of the Transit Cooperative Research Program and is designed to foster innovative concepts that have the potential to enhance security, increase ridership, improve efficiency for transit agencies, and protect the environment. IDEA programs differ from traditional research programs in two ways: IDEA projects are initiated by researchers rather than by a request for proposals, and funding can support initial testing of unproven concepts." • Our fintech software stack: Sutton Bank issues reloadable, digital VISA cards for our commuters' Apple/Google Wallets. Virtual Incentives, a Marqeta white labeler, provides access/APIs for the cards. ByCyling authorizes transactions, constrained by merchant location and by each commuter's incentive balance. We are pushing the edge of digital incentive wallets, bypassing physical gift cards. • Bike Love addresses the public transit First -Mile problem, which consists of: 1) Transit agencies have difficulty increasing ridership. According to Cato, San Jose -area transit ridership declined by 23% from 2008 to 2017. 2) Most commuters are "comfortable" walking less than a quarter mile to or from public transit stops. Problematically, the vast majority of Americans live outside the 201 CY 2020 Annual Report comfortable walking distance. Hence, to increase transit ridership, there is a need to provide compelling options for potential transit riders to travel from home to transit. In addition, the City of Palo Alto's Bicycle and Pedestrian Plan calls for a doubling of biking and the Sustainability/Climate Action Plan calls for increased biking and transit use. Selected Quotes • "We find PATMA to be very innovative. We view them as a leader in the TDM field. We have referenced their pioneering annual cost of reducing one single -occupancy vehicle (SOV) commute metric that provides an apples -to -apples comparison between alternative modes." - Avital Shavit, LA Metro Office of Extraordinary Innovation • ".....the City is excited to learn from the innovative projects that the Palo Alto TMA is leading." - Nicholas Yee, TDM Coordinator, City of Menlo Park • "The Leadership Group applauds the potential to scale Bike Love to other cities." - Silicon Valley Leadership Group • (regarding FIRST MILE) "VTA supports active modes and recognizes the importance of bicycles as a way to extend the reach of transit. One of the greatest challenges we face as a transit operator is the low density of our suburban county and long distances to transit stops." • (regarding FIRST MILE) "Caltrain encourages passengers to use sustainable transportation modes, including bicycling, to get to and from stations." • Silicon Valley should be America's biking capital. According to SFMTA Executive Director Jeff Tumlin's keynote presentation at Joint Venture Silicon Valley's 201.7 State of the Valley Conference,' "American visitors to Amsterdam, Copenhagen and other European cities are startled to learn the bicycle is the dominant mode of commuting, despite the cold weather and challenging terrain. Why not Silicon Valley? We have a Mediterranean climate, a flat landscape, and a health -conscious population that cares about the environment." Joint Venture and the Silicon Valley Bicycle Coalition produced the Silicon Valley Bike Vision report, providing a vision for Silicon Valley becoming the national bike commuting leader and a roadmap for getting there.' • MTC expects that biking will win the most mode shift away from SOV commuting. From the MTC Horizon Futures Final Report presentation, slide 18: "When it comes to achieving mode shift to address traffic congestion across the future planning scenarios, strategies that prioritized active transportation saw the most pronounced shifts in the regional model. Given the low cost relative to other investments studied, the benefit -cost ratio is greater than one in all three Futures and the equity scores suggested that lower -income individuals received a larger share of accessibility benefits than higher -income individuals, meaning this strategy advances equity outcomes too." • Founded in 2017, we are ByCycling, a technology company that has developed a platform to help organizations change commuters' behavior towards active micromobility transport modes in a very easy and effective way. We aim to deliver meaningful change to organizations and communities, whether in reducing their carbon footprint or embracing a culture of wellness. We are an aggressively growing company that is focused on the very specific area of implementing Commuter Programs for organizations around the world. Backed by years of experience, we have learned that designing Commuter Programs needs to take into account the real needs and desires of the commuters themselves, who in many cases are not athletes or even dedicated riders. Commuters are making trips for the primary reason of getting to and from work (or school, 3 JVSV 2017 State of the Valley Conference, https://youtu.be/V8rV0ZUNRvE. 4 Silicon Valley Bike Vision report, by JVSV and SVBC, https://iointventure.org/publications/joint-venture-publications/1522-silicon-vallev-bike-vision 211 CY 2020 Annual Report childcare, etc.) and need tools that respect and reward that specific behavior. We are sensitive to the fact that our "threshold users" (users whose behavior may not be strongly oriented toward either cars or bicycles) can actually be put off by barriers "to entry" for a Program or by the public display of too much information. -Jose Diaz, Founder and Director, ByCycling Appendix A: COPA, Council, & PATMA Advocacy to Caltrain 4/12/21 TO: • Vice Mayor Pat Burt, Caltrain Local Policy Maker Group (LPMG) • Councilmember Lydia Kou, Council Liaison to PATMA CC: • Sylvia Star -Lack, COPA Staff Liaison to PATMA Subject: Request re Caltrain Go Pass Donation Program Dear Vice Mayor Burt and Councilmember Kou, Over the past three years, PATMA has purchased $582,000 in Caltrain monthly passes for low-income workers with median annual income of $31,200. Caltrain's Board has agreed to an Employer Go Pass Donation Program. Caltrain staff are preparing an implementation plan that they indicate will come to Caltrain's Board on June 3. We expect the Donation Program to be something on the order of: • Major employers buy Go Passes for all employees. More than 50% of Passes go unused. • Employers distribute unused Go Passes to their part-time and contract workers • Leftover Passes are donated to Caltrain, creating a pool of Passes • Nonprofits submit applications for the unused Passes OUR REQUEST: PATMA requests Council advocate to Caltrain to ensure that Caltrain prioritizes • nonprofits that have previously purchased Caltrain transit passes for low-income commuters over • nonprofits that have not previously purchased passes for low-income commuters. For financial fairness, PATMA should receive $582,000 worth of donated Caltrain passes before other nonprofits can obtain any donated passes. In a year where COPA faces a budget shortfall and as PATMA accelerates Palo Alto economic recovery, forceful advocacy by Council to Caltrain will maximize PATMA program cost -efficacy. DETAILS FOLLOW BELOW: 1. Our program changes lives, increases employee retention, and increases Palo Alto's competitiveness. 221 CY 2020 Annual Report Testimonials "Without this program, !wouldn't be able to work here. This is instrumental in helping people have a job out here." • "Our hardest thing is hiring people. Alleviating an employee's cost of traveling to work by $150/month is like getting a $1/hour raise." • "Being able to offer potential employees the TMA transit pass gives us a leg up to hire new employees. For some people, it's a deciding point about whether they will work here or not." • "I love when my employees take the train because then they're on time for their shifts. When they drive they're often late because they're stuck in traffic." The program changes lives and improves hiring For program participants, the median income is $31,200 while the mean income is $31,440: Figure: Annual income distribution of transit pass program participants $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45;000 $50,000 $55,000 $60,000 $65,000 $70,000 Annual Income 231 CY 2020 Annual Report Downtown businesses have a 200% annual turnover (16% monthly turnover) of employees. The TMA's transit pass program reduces turnover to about half as much. A lower turnover rate means that the transit pass full subsidy also helps employers retain their employees by giving them a sustainable commute. Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun TRANSIT PASSES '18 '18 '18 '18 '18 '19 '19 '19 '19 '19 '19 Passes Activated 117 149 214 227 241 240 245 229 214 198 187 New applications 36 49 74 33 40 22 28 0 0 0 0 Turnover 17 9 20 26 23 23 16 15 16 11 Percent turnover 11.4% 4.2% 8.8% 10.8% 9.6% 9.4% 7.0% 7.0% 8.1% 5.9% Table 9: Monthly turnover rate of transit pass program participants The Federal Transit Administration highlighted this unique-in-the-U.S. program, in PATMA's peer -reviewed Social Equity and Accessibility: Low-income Transit Pass Program, for City of Palo Alto's Fair Value Commuting Project, Part of the Federal Transit Administration's Mobility on Demand Sandbox: http://bit.ly/FVCequitvSummary 2. In the U.S., equity -increasing TDM programs are rare A query on the national TDM professionals listsery (transp-tdm) produced only 11 additional equity -increasing programs, with none as generous as the PATMA Transit Subsidy Program.' 3. Caltrain's equity analysis motivated the creation of the Go Pass Donation Program The analysis found lower prices for technology workers than for low-income commuters. The finding that justifies the Donation Program: • Caltrain shall prioritize the needs of riders/communities who depend on transit for essential travel. Caltrain will work to enhance equity in its system, making its services more accessible and relevant to lower income people and members of racial groups and communities who have historically been marginalized and overlooked in planning and government processes. • 1/12/21 Friends of Caltrain article 4. Past PATMA advocacy on this issue: • Advocacy: June 2017 memo to Caltrain BOD requesting cost reduction. • Advocacy: May 2018 PATMA letter to MTC in support of Proposed Means -Based Fare Discount Program • Support letter for Caltrain means -based fare pilot for Caltrain Jan 10, 2019 BOD mtng, item #9. Thanks in advance for your consideration, Palo Alto TMA PATMA CY 2018 Annual Report: http://bit.ly/PATMA2018report Section 2 241 CY 2020 Annual Report Appendix B: May 2021 COVID Transportation Trends Recent Bay Area VMT & Congestion Bay Area trails rest of U.S. in return to roads Percentage change in vehicle miles traveled, a measure of how much people are driving, compared to before the pandemic 1 United States H BayArea percent of pre-pa nd ern ic travel 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 'L`� 'L "lr� 'Ya `4 `'4 'la ry0 16, ti� .l4 'o Yo ,gyp tia a 4 ti� ,D `49 16 tia yo tib 0;\ Source: Mercury News, 3/8/21 Shorter and less severe Bay Area rush hour: • Highway 101 from Sunnyvale to N. Si. Pre-COVID: average speeds once dipped as low as 12 mph. Cars averaged less than 35 miles per hour each weekday, from 2-8pm. Current: 29 mph, traffic flows well after 6pm: October 2019 October 2020 70 65 60 55 50 45 M 40 tD 35 m 30 m 25 20 15 10 5 0 <0 <0 F` <0" <0" fi F <{ - <0" < < <<" ¢" <" <" F €" fi" 44" 'v° La 3° p,8 `'° `°a 1a qs. fli® tae rya .S ti4 ,y9 59 p4 439 .i,'2 AL 9,9 <y)9'N. .6) 251 CY 2020 Annual Report palo altOTMA Passenger vehicle travel rebounding to pre -pandemic levels, AP, 3/29/21 • In San Francisco, Inrix data shows that passenger vehicle miles traveled reached 88% of their pre -pandemic levels over the weekend of March 20-21, their highest mark since March 11, 2020. • While higher traffic volumes show "there is more economic activity happening," they also reflect a shift away from mass transit, said Jeff Bellisario, executive director of the Bay Area Council Economic Institute. In February, ridership on the Bay Area Rapid Transit rail system remained at just 12.5% of pre -pandemic levels, he said. Summary: COVID Impacts on TDM Programs Twelve months into the COVID-19 pandemic, driving mileage has recovered while other modes have maintained lowered utilization. Caltrain ridership is down by 95%. Uber and Lyft ridership is down 75%, with both laying off 25% of their workforce. Waze Carpool ridership is down by 99%. As far as COVID-safe commuting while in the "substantial cases" Red Tier in March 2021, public transit is working hard to implement best practice safety measures while also developing confidence -boosting messaging to lure more riders back. The current thinking on safe carpooling is one driver, one rider, two opposing windows open halfway. As we progress from Red to Orange to Yellow COVID tiers, we envision a gradual return to transit and carpooling, with a gradual increase in capacity. Biking holds the potential to gain share at the expense of other modes. Travel changes from COVID-19 For driving, a graph from the Bureau of Transportation Statistics shows the U.S. bounce back to about 90% of March 2020 Vehicle Miles Traveled (VMT): 3.0 N P N AL 2 2 O 0 Q t''t N 4 Q N O p. p h` lY lat. in �. D 2 N g 0 0 ird h a v Q O a o ftE F�l (D tV 47 fV 01 Figure: Vehicle Travel Trends Compiled by Bureau of Transportation Statistics 261 CY 2020 Annual Report The Santa Clara County driving bounce back is less because 51% of the county's jobs can be worked from home, the highest percentage in the U.S. This yields a much -lower commute VMT. Our partners at Waze Carpool provided us with the following San Francisco VMT dashboard. Given a Feb 2020 pre -pandemic baseline, VMT declined by 80% on 3/29/20, recovering to a 36% decline by 5/22/21. Percent Change Driven Miles/Kilometers by Day 20% 0% -20% -40% m -60% t U -80% At*,10,it May 22, 2021 San Francisco: -36% -100% Mar 1 2020 Apr 26.2020 Jun 21, 2020 Aug 16, 2020 Oct 11, 2020 Dec 6.2020 Jan 31, 2021 Mar 28, 2021 Mar 29, 2020 May 24, 2020 Jul 19, 2020 Sep 13. 2020 Nov 8, 2020 Jan 3, 2021 Feb 28, 2021 Apr 25, 2021 Year: 2020 San Francisco Gwaze Figure: Waze's COVID-19 VMT trend for San Francisco Biking is a very COVID-safe mode; thus, biking has increased during the pandemic. Bay Area public transit ridership is experiencing small increases in ridership as the vaccinated population increases and businesses reopen in the orange tier. Caltrain ridership is down 92% from normal, with March 2021 Average Weekday Ridership down from 65,057 in March 2019 to 3,952. For Samtrans, Average Weekday Ridership fell by 68% in March 2021, compared to pre -pandemic levels in March 2019. Although BART ridership in May is 84% less than the pre -pandemic levels, Friday, May 5th, was the highest ridership day since the start of the pandemic. 271 CY 2020 Annual Report SamTrans Monthly Trend Total Ridership (Fixed -Route Only) 1,200,000 1,000,000 M • ♦ ♦ ■ ■ 800,000 *• • 600,000 400,000 • • • • • • • • • 200,000 0 ■ ■ ■ ♦ • ♦ Jul AugSep OctNovDec Jan FebMarAprMayJun • FY 2019 • FY 2020 • FY 2021 Caltrain Monthly Trend Total Ridership 2,100,000 1,750,000 • ♦ • • i • 1,400,000 ♦ ♦ • • • 1,050,000 700,000 350,000 • • • • • • • • • ■ • • 0 • • • Jul AugSep Oct NovDee Jan FebMarAprMayJun • FY 2019 • FY 2020 • FY 2021 Figure: Small increases in SamTrans and Caltrain Ridership. Caltrain first -mile shuttle ridership is down an equivalent amount, and service levels have been adjusted. City of Palo Alto Embarcadero and Crosstown shuttle service was suspended in July of 2020. MVgo shuttle service has been suspended. BART ridership and revenue is likely to lag by Eli Walsh San Mateo Daily Journal, Feb 25, 2021. Budget officials say both will be behind pre -pandemic levels for most of the decade. But even with greater access to coronavirus vaccines over the coming months and the Bay Area workforce's eventual return in some form to office buildings, agency officials don't expect ridership to return even to 80% of pre -pandemic levels until the end of the decade. BART Financial Planning Director Michael Eiseman told the agency's Board of Directors that BART's ridership growth in recent years has been inextricably linked to the economic growth of downtown San Francisco. "Before the pandemic, two-thirds of our trips had an origin or destination at Market Street station," Eiseman said. "So if those regional travel trends do shift away from downtown, our recovery may depend on our ability to adapt and serve other markets." Monthly bookings for Uber and Lyft in March were the highest since March 2020. Both companies report an upward trend in ridership as vaccines are more widely distributed. As far as apps that match carpools between commuters, Waze Carpool trips to/from downtown Palo Alto dropped 99% from 2,500 in February 2020 to 30 in June 2020. 281 CY 2020 Annual Report As far as post-COVID, Mineta Transportation Institute's Frances Edwards predicts that transit ridership in congested corridors will quickly spring back to 75% of pre-COVID and 100% within a year. Stanford Professor Nicholas Bloom undertook survey research about permanent increases in working from home. For workers with the ability to work from home, he predicts between 20% to 40% of working days from home, with employers inclined towards fewer and employees desiring more. How to Make Travel COVID-Safe Biking is very COVID-safe and should be encouraged. Return-from-COVID creates a psychological "fresh start," where new commuting habits may be formed. Different travel modes' perceived safety will impact their utilization, requiring confidence -boosting marketing to persuade riders to come back. There is a psychological and educational component that cannot be overlooked in these uncharted waters. The leading edge of transportation COVID safety is focused on improved ventilation. This focus stemmed from the National Academy of Science's 8/26/20 workshop entitled Airborne Transmission of SARS-CoV-2: A NASEM Virtual Workshop, hosted by Dr. Fauci and CDC's Deputy Director. The workshop concluded that the primary driver of superspreading is small airborne virus particles (aerosols) that travel farther than six feet, resulting in the need to prevent stagnant indoor air. On 2/24/21, Santa Clara County Public Health Officer Dr. Sara Cody stated, "We now know much of COVID transmission is AEROSOL or airborne, a bit of it is droplets, and very little on surface." • Depending on where you live, the scientific understanding of COVID transmission varies. For Santa Clara County, Dr. Cody's statement implies that previous health orders resulted in over -spending on cleaning and under -spending on ventilation. BART and AC Transit are national public transit ventilation research leaders. • The ventilation on BART cars is 80% recycled and 20% fresh. The recirculated air is filtered before being dispersed through the window frame. The air in each rail car is entirely replaced fifty times per hour. BART is installing MERV 14 filters in all train vehicles. BART combines their ventilation effort with 14 other safety measures, including mandatory masking, "quiet ride" (no talking to reduce the number of virus particles exhaled into the railcar air), maximum occupancy to ensure social distancing, and thorough cleaning. Caltrain is following BART's lead, and we are in communication with Caltrain about both Caltrain and their shuttles. • Using a consumer fog machine that is more typically used for Halloween Haunted Houses, AC Transit ran smoke tests for multiple air safety scenarios. Opening bus windows created counterproductive turbulence. For maximum safety, bus HVAC is set to provide fresh air, and the ceiling hatch in the back is opened, creating positive pressure to exhaust stale in -vehicle air every 70 seconds. Quiet ride, markings for open and closed seats, and thorough cleaning are also part of every bus's COVID safety protocol. Both BART and AC Transit participate in the Bay Area Healthy Transit coalition of transit agencies that have developed confidence -boosting messaging for return -to -transit. Best practices for VTA, COPA Crosstown Shuttle, and MVgo buses: (Marguerite?) • Apply regional best COVID-safety practices to each bus • Communicate confidence -boosting messaging to travelers 291 CY 2020 Annual Report • Optionally audit the buses' air safety by measuring for stagnant indoor air with an NDIR CO2 meter. As far as COVID-safe carpooling in cold weather, two -person carpools following a best practices protocol will be safest (three -person carpools should be avoided until Yellow COVID Tier). Travelers will need to wear extra clothing layers. A quiet ride (no talking) with the non -driver sitting in the back on the right (far away from the driver) with two opposite windows open halfway will be safest. This protocol follows computational fluid dynamics analysis by UMass Professor Varghese Mathai. It is also informed by work by Professor Richard Corsi and Stanford Professor Wayne Ott. Best safety practices from carpooling apps Scoop and Waze Carpool are also given consideration. Safe three -person carpool protocols will be designed and available in the future. Within -pod three -person carpools can also be permitted during Red COVID Tier. Organizations can optionally require completion of brief carpool safety training before allowing that commute mode. We envision a stair -step return to the new normal, with gradual increases in transit and carpool utilization, accompanied by updated public health orders that increase maximum occupancy. In a few other countries, public transit social distancing has already been reduced from 6' to 3'. Not all Caltrain shuttles are currently running. They will ramp back up over time, improving first -mile commute options to Caltrain. Appendix C: TMA Funding Precedents C1. Comparison of 11 Bay Area TMAs on programs and funding pa.OTMA alamedaTMA LJETMA Emr➢7riIl. Trmrp.rddn Mr.pm..t Ars.ri.rim 4.M�mvgo WEST BERKELEY VA/Mt missionhavShuttle LANDING TRANSPORTATION san loandro 01 Moffett Park Business Group BUILDING A SUSTAINABLE COMMUNITY CONTRA COSTA CENTRE TRANSIT VILLAGE tmasf connec 301 CY 2020 Annual Report Not all TMAs are the same. There are different types of TMAs with different emphasis: • operating buses • coordinating TDM efforts across employers • reducing suburban downtown traffic • residential trip reduction • etc. TMA rev/yr % bus TMA scale staff cost Formation & funding Emeryville TMA $4.2M 82% yes $417K $3.4M Business Improvement District (BID) Mission Bay TMA $1.7M 91% yes $95K $1.5M property assessments Mtn View TMA $1.4M 65% yes $190K Employers: transit service agreement funds San Leandro TMO $1.3M 77% $50K $780K BID Berkeley Gateway TMA $296K 91 % yes $0K Bayer HealthCare & Wareham Devt fund it West Alameda TMA $224K 60% yes $46K Property assessments fund TMASF $799K yes $516K SF TDM reqt => 82 bldgs formed & fund. Palo Alto TMA $569K $115K Council formed. Parking permits fund. Contra Costa Centre (estimate) $309K 31% yes 14 property owners formed. TDM District. Moffett Park Biz Group $168K yes $96K Formed by employers. Member dues fund. Alameda (Point) TMA $98K yes $31 K Property assessment funds Table 10: Comparison of Bay Area TMAs using 2019 data Of these 11 TMAs: • Six are "bus -centered," with 60% or more of the budget dedicated to running shuttles. • Nine have local fee -generating real-estate scale to motivate TMA formation, such as Mountain View TMA has major employers with large buildings in the North Bayshore area and TMASF has an agglomeration of tall buildings in downtown. The two exceptions are San Leandro and Palo Alto - neither has typical TMA real-estate scale. • Four TMAs are privately funded: Berkeley Gateway, TMASF, Contra Costa, and Moffett. TMASF's formation was motivated as a direct response to San Francisco enacting TDM Ordinance 163. • Public sector TMAs are typically organized as 501c3 nonprofits and funded by property assessments or business improvement districts. Mountain View TMA funds similarly via a "transit service agreement." Palo Alto TMA has the strongest TDM behavior change nexus, as it is funded by out-of-town in -commuters buying parking permits for downtown garages (The University Avenue Parking Fund). The eleven TMAs do NOT draw funding from their city's General Fund. Berkeley Gateway is an "empty organization" that contracts operations through Emeryville TMA. The San Mateo Rail Corridor TMA (SMRCTMA) was left off this list because of lack of TMA-level activity and small budget. Properties in the SMRCTMA area undertake strong individual TDM efforts but have not seen fit to develop programs that cross property lines. Commute.org is contracted to manage this TMA. Most Bay Area TMAs are staffed by contractors, with service provided by ALTRANS, Wendy Silvani, Commute.org, or Gray Bowen Scott. The three exceptions are Moffett, Contra Costa, and TMASF. Moffett and TMASF have full-time Executive Directors. TMASF has four staff members, Moffett has one. 311 CY 2020 Annual Report For hourly rates, Emeryville TMA pays contractor Gray Bowen Scott's Executive Director $225/hour, Operations Administrator $165/hour, and Executive Assistant $89/hour. On the low end, Palo Alto TMA pays contractor ALTRANS' Executive Director $85/hour and TDM Project Manager $52/hour. (2019 rates) East Palo Alto (EPA) and Menlo Park have undertaken recent TMA analyses. EPA may approve a Ravenswood Business District / Four Corners Specific Plan for about 1.7M square feet of new development, with new entitlement fees providing the scale to fund TMA. Menlo Park has a less clear path towards funding a TMA, hindered by a small development pipeline. C2. Santa Monica TMA's best practices Santa Monica TMA best practices from a presentation at the 2019 ACT Conference by Colleen Stoll, TDM Program Manager, City of Santa Monica. Santa Monica TMA is called GoSaMo • There is no free parking in Santa Monica commercial centers. • Charges $15 per employee to review TDM compliance reports from parcels. This funds three employees for TDM • Santa Monica is under TDM Rule 2202 from the Air District (from 1995), requiring mandatory TDM for employers w 250 jobs. Employers may pay a per -employee fee to buy out of mandatory TDM. 80% of SoCal employers take it. • Rule 2202 has AVR (average vehicle ridership) targets. This has increased to 2.2 or about 60% non-SOV mode share. • In 2016, Santa Monica modified their implementation of Rule 2202 to apply to employers with 30+ employees. Rather than the buy-out, Santa Monica has 80% of employers implementing TDM. • In terms of compliance, employers submit a trip reduction plan. If California's Parking Cashout law applies, then Santa Monica requires implementation • QUESTION: Where do you get # of employees? ANSWER: From the Santa Monica Business License database • The CA state parking cash out law only applies in rare instances when building leases have unbundled parking. Santa Monica changed local cashout law to encourage unbundling. Santa Monica has consistently gone beyond state and regional TDM law. Santa Monica is attempting to convert employers to daily cashout rather than monthly cashout, but employers are pushing back. Employers complain that they need help on days when it rains and SOV increases and The City is considering dedicating public parking garage spaces for this. • GoSAMo requires residential TDM on new bldgs. Requires $110 per month transport allowance (only spendable on certain non-SOV modes stuff) for residents who shed cars. Colleen checks leases for compliance. C3. Carlsbad's TDM best practices (From a presentation at the 2019 ACT Conference.) Carlsbad has a preferred consultant that helps employers and developers with TDM plan preparation and implementation. • They make it easy. COPA should refer parcels to PATMA and encourage TMA membership. • Driven both by their adopted climate plan and mobility plan, they passed their TDM ordinance six months ago. Applies to building changes for building with 30+ employees. Requires a 321 CY 2020 Annual Report transportation coordinator. Mandated commute alternative training for new employee on -boarding (new hire flyer). • Attempt is to "make TDM a way of life." • Carlsbad has 82K jobs (Palo Alto -sized) 331 CY 2020 Annual Report CVTY 0 PALO ALTO City of Palo Alto (ID # 12345) City Council Staff Report Report Type: Informational Report Meeting Date: 6/21/2021 Summary Title: Informational Report: City's Relationship with ABAG Title: The City's Relationship With the Association of Bay Area Governments (ABAG) From: City Manager Lead Department: City Manager Recommendation Staff recommends that Council accept this information report about the Association of Bay Area Governments (ABAG) and the City's ongoing relationship with ABAG. Background The City Council has asked questions about the Association of Bay Area Governments (ABAG) and the City's interaction with ABAG. This memo provides some basic information about ABAG and City delegates and dues. Discussion ABAG was created in 1961 to provide a forum for local elected officials to discuss topical issues, specifically around regional planning and, in later years, services. ABAG was the first Council of Governments established in California. Recognizing that community issues transcend local boundaries, ABAG now examines issues of regional and local concern addressing planning and research needs related to land use, environmental, and water resource protection; builds local governments' capacity regarding disaster resilience and energy and water efficiency; and when needed, provides financial services to local counties, cities and towns. ABAG is a joint powers authority and membership is comprised of the 101 cities and towns and the nine counties of the San Francisco Bay Area. Elected officials from each serve as governance for the organization. The governance structure is included below. Palo Alto signed an initial agreement dated on June 27, 1960 and has been a member since. The table below includes information about the City of Palo Alto's membership dues in the past nine (9) years based on information included in the annual ABAG budget. The population estimates are the numbers used by ABAG to calculate the membership rate for Palo Alto. The list of membership dues by jurisdiction is included as an appendix in the annual ABAG budget. City of Palo Alto Page 1 Annual ABAG Membership Dues for the City of Palo Alto (FY 2014-2022) Fiscal Year Amount Palo Alto Population* 2014 $12,364 66,368 2015 $12,780 66,368 2016 $13,231 66,932 2017 $13,576 66,932 2018 $14,320 68,691 2019 $15,212 68,691 2020 $16,197 69,721 2021 $16,560 (was $19,208 before adjustment) 69,226 2022 $16,764 69,226 * Population estimates are ABAG estimates This governance structure information is also in Attachment A on slide 5. ABAG Governance Structure 0 INTER -AGENCY COMMITTEES RegwnalAilpad Planning Commit.. Bay Aran Regional Eolavtonolam APPOINTMENTS bay Cannervotion awe Development Comm.saton N) Matropalitaa Transportation Commission (10 Bay bee. Council Economic lostiluto 03) San Francisco Estuary Partnership (31, Regona Seaport Rdeeery Committee 121 San Francisca Bay Florio aeon Aathonty (y) MEMBERS 101 Teens and Cnyn and Milo Gammtas GENERAL ASSEMBLY AI3AG EXECUTIVE BOARD Prns.0ant _lasso Arrnyuln LOCAL GOVERNMENT SERVICES POLICY Ake Beckelman Deputy Executive Director STANDING COMMITTEES ADMIN STRATIVE COMMITTEE FINANCE COMMRTEE REGIONAL PLANNING COMMITTEE. LEGLSLAT ION COMMITTEE PC METROPOLITAN TRANSPORTATION COMMISSION Chun ScoO 'Low ty Adrionnu Weil Mee 50 General Cdunsal Exacuare Adtniaiatratita 51945 C pl C.en.utrca Davao, OPERATIONS Andrew learner Deputy Exacunva tweeter FINANCE Phan nlaynen 5551 Fnancel Pacer .Sian Franeigeo Estuary Partnonshp Staffing far San arm..., Bay Restored. AWhonly Enorgy Programs POWER BayfiEN Adven.in5C9lIPornia rinanne AlMclny Bay Lai Inyeryated Regional — Planning Program - Prpypmanng aea Allocations _ Legisatian and Public AReas - Adinlnlalyalien and Feeilit'los — Tachnalagy Services OPacat s — Elecarani, Payments Elude,. and Ray.ua TroaSury Palo Alto's Representation ABAG's General Assembly (GA), which meets at least once a year as part of the GA Conference, determines policy and adopts the annual budget and work program. In addition, the GA reviews policy recommendations from the ABAG Executive Board, establishes annual membership fees, and reviews ABAG Association bylaws. The GA is composed of delegates (or alternates) from each ABAG member town, city and county. Each delegate has one vote. San Francisco is counted as both a city and county and has two delegates. Palo Alto has always had GA representation. City of Palo Alto Page 2 In addition to the GA, there are Executive Board members and ABAG standing committee members. Those positions allow for more influence over ABAG policies, etc. Palo Alto does not currently have a current Councilmember on the Executive Board or a standing committee though the City has had an Executive Board member in the past. Roster information is available online at: https://abag.ca.gov/about-abag/what-we-do/how-we-govern. Lastly, ABAG has appointments to many commissions, and they share open calls for applications to those commissions (such as the Bay Conservation and Development Commission). Former Mayor Greg Scharff serves on the ABAG Regional Planning Standing Committee and was appointed by the Bay Conservation and Development Commission to serve as the Commission's representative. There is an overview of ABAG including information about the Regional Housing Needs Allocation (RHNA) in Attachment A, a slide presentation from ABAG staff. The RHNA information is on slides 33-39. In addition to the overview, Attachment B are the ABAG bylaws. Attachment C is the signed Palo Alto agreement. Timeline and Resource Impact The ABAG General Assembly will be considering the budget and work plan on June 25, 2021 at their next meeting. The agenda packet for June 25 is available online at: https://abag.ca.gov/sites/default/files/meetings/agendas/5107 A ABAG General Assembly 21-06- 25 Generic.pdf Attachments: • Attachment A: ABAG Orientation-June2021 • Attachment B: ABAG Bylaws as approved by GA on June 11 2020 • Attachment C: ABAG Member Agreement Palo Alto June 1960 City of Palo Alto Page 3 Attachment A Introduction to the Association of Bay Area Governments (ABAG) 0 A ssociation of Bay A rea Gov ern ments Se rving the co unties, citie s and towns of the Bay Area since 1961 To day's Agenda ABAG's history, structure, Local Government Services and housing implementation work Overview of Plan Bay Area 2050 and ABAG's role in Regional Housing Needs Assessment (RHNA) and RHNA Appeals Process New funds and technical assistance ABAG is offering local jurisdictions to help with their next Housing Element and the building of more housing ABAG Formation Formed in 1961 to address common issues and challenges from a regional perspective Established as joint powers authority (JPA), ABAG is unique among regional agencies in mission and governance ■ Fosters partnerships among local jurisdictions and provides support through its Local Government Services ABAG/MTC Memorandum of Understanding related to staff consolidation and governance May 2016, ABAG and MTC governing boards voted to support full staff consolidation on July 1, 2017 July 2017 ABAG/MTC created single staff to serve both agencies and their separate responsibilities July 2018 MTC and ABAG Staff began researching future governance options for July 2019 Two boards voted no t to consolidate for now but to look at consolidating similar committees Sept 2020, two boards voted to create a single joint Legislation Committee serving both boards ABAG Go vernance Structure CT INTER -AGENCY COMMITTEES Regional Airport Pla nning Co mmittee Ba y Area Regional Co llaborative APPOINTM ENTS Bay Conserva tion and De velopment Co mmission (4) Metropolita n Tra nsporta tion Commission (1) Ba y Are a Co uncil Economic Institu te (13) San Francisco Estuary Pa rtne rship (3) Regional Sea port Advisory Co mmittee (2) San Francisco Ba y Resto ration Autho rity (7) MEMBERS 101 T owns and Citi es and Nine Co unti es GENERAL ASSEMBLY ABAG EXECUTIVE BOARD Pre side nt Je sse Arreguin STANDING COMMITTEES C ontr acMngNw es sta ADM INISTRATIVE COMMITTEE FINANCE COM MITTEE REGIONAL PLANNING COMMITTEE LEGISLATION COMMITTEE METROPOLIT AN TRANSPORTATION COMMISSION Ch air Sc ott H aggerty Therese W. McMillan Executive Director Adrienne Weil Offi ce of General Counsel E xec utive Administrative Staff LOCAL GOVERNMENT SERVICES Brad Pa ul Deputy Ex ecuti ve Director POLICY Alix Bockelm an Deputy Executive Director OPERATIONS Andr ew Fremier Deputy Executive Director FINANCE Brian Mayhew Chief Financial Officer S an Fr ancisc o Estuary Partnership St affing f or San Fr an cisc o Bay Restoration Authority Energy Programs POWER B ayREN Adva nci ng C alif or ni a Financ e A uth ority - B ay Tr ail _ Integrated Region al Pl anning Pr ogram Consolidated Staff CT METROPOLITAN TRANSPORTATION COMMISSION Chair Scott Haggerty Therese W. McMillan Exe cutive Direc tor Pr ogr amming and Alloc ati ons Legislation and Public Affairs A drienne Weil Office of General Counsel Executiv e Administr ative Staff LOCAL GOVERNMENT SERVICES Bra d Paul Deputy Execu tive Director POLICY Alix Bockelman Depu ty Execu tiv e Director OPERATIONS Andrew Fremier Deputy Exe cutiv e Director FINANCE Brian M ayhew Chief Financial Officer Sa n Fran cisc o Estuary Partnership - Sta ffing for San Francisco Bay Restoration Authority Energy Programs POWER BayREN _ Adv ancing Ca lifornia Fina nce Authority Integra ted Regio nal Planning Progra m Programming and Alloca tions Le gislation and Public Affairs Adminis tration a nd Fa cilitie s — Te chnology Services Operations — Electro nic Pa yments Budget and Revenue Tre as ury Administr ation and Facilities Technology Services Op er ati ons El ectronic Payments B udget and Reven ue Treasury - Bay Trail ABAG L ocal Government Ser vices ■ ABAG POWER BayREN SF Estuary Partnership ABAG Finance Authority (FAN/ACFA) Regional Trails Program (Bay and Water Trails) ABAG Power Natural gas program About 22nd Year of Operation ■ Local Gov't Leadership in Energy Procurement / Management Natural Gas Purchasing & Transportation 38 Participating Members Program Goals Cost Savings Price Stability Services to Communities Enviro nmental Sustainability Single Family • Free ste p-by-step technica l assistanc e to co nsumers & contract ors fo r e ne rgy & water e fficiency programs • Reba tes, educa tio n & outre ac h Multifamily • Technic al assistan ce to property owners for energy upgr ades & rebates C od es & St andards • Advocacy & supp ort f or gre en building codes • Tr ainings to governments on st and ards & best practices Commercial • Opti ons to assist business with energy pr ojects BayREN's Water Upgrades $ave program Allows water utilities to install improvements field tested in Windsor and Hayward No up -front payment, credit checks, or liens Monthly surcharge lower than savings Pay only while a customer at that location Contact: jberg@bayareametro.gov With PAYS, custo mers enjoy lower utility bills and new equipment. WATER ENERGY UTILITY BILL WATER ENERGY UTILITY BILL Before Upgrade After Upgra de Savings on Bill PAYS repayment for new e quipment (showerhe ads, wa she rs, toilets, la ndscaping) SF Estuary Partnership Bolster resilience of ecosystems, shorelines, and communities to climate change Improve water quality/quantity of fresh water SF Bay Restoration Authority ($25M/year) Champion the Estuary ✓ Annual Conference ✓ NEP Conference www. sfestuary.org Measure AA S AN FRANCISCO -simL-410 ESTUARY PARTNERSHIP In 2016, residents of nine Bay Area county's passed Measure AA by 70% Parcel tax of $12 per year, raises $25 million annually for twenty years to fund shoreline projects that protect and restore San Francisco Bay Funds raised are allocated by SF Bay Restoration Authority, staffed by San Francisco Estuary Partnership and the State Coastal Conservancy Advancing CA Financing Authority (ACFA) ■ Since 1978, provided $8 billion in tax-exempt financing to help meet needs of public agencies and their nonpr ofit partners Financings constructed/preserved/refinanced ■ 12,000 units of housing ■ Schools ■ Hospitals and clinics ■ Water Districts ■ Municipal Infrastructure ■ Museums ■ CFDs Key Benefits of Working with ACFA • Simple, fast and low-cost financing • Proven Track Record • Experienced Staff • Streamlined Approvals Process Staff expertise in local land use/housing issues Fee revenue supports ABAG and its Local Government Services Fo r mo re info co ntact: bpaul@bayareametro .go v San Francisco Bay Trail San Francisco Bay Trail Vision connecting 9 counties via 500 miles of bike/pedestrian paths ■ Links 47 cities and over seven toll bridges ■ 360 miles (72%) complete SAN FRANCISCO BayTrail 30 YEARS San Francisco Bay Trail ■ Initiated in 1989 Three ABAG/MTC staff and 30 -member non-profit board coordinate completion Cost $1. 4 billion to close remaining 140 miles of gaps, with $230 million in funding needs over next five years Bay Area Water Trail SAN FRANCISCO BAY AREA WATER TRAIL Bay Area Regional Collaborative (BARC) A network of launching and landing sites around the Bay for non -motorized small boats r Links over 500 -square miles of navigable waters -- by far the region's largest open space N Inundation Ex tents ►� 0 - 6 Feet Sea Level Rise BARC MEMBERS Asso ciatio n of Bay Area Governments (ABAG) Bay Area Air Quality Management District (BAAQMD) Bay Co nservation and Development Commission (BCDC) Metropolitan Transportation Commissio n (MTC) California State Coastal Conservancy (SCC) Caltrans District 4 BARC Areas of Focus 1) Coordinated Regional -Scale Planning to Foster: a. Climate Adaptation and Resilience b. Building and Transportation Decarbonization c. Social and Racial Equity 2) Advanced Planning and Implementation a. Climate Adaptation Project Implementation in Bay Area Cities and Counties b. Guiding state legislation and local and regional policymaking to accelerate progress Plan Bay Area ■ State mandated regional plan or blueprint for growth and infrastructure over the next 30 years ■ Updated every 4 years, next update due in 2021. ■ Reflection of the shared priorities of a diverse nine -co unty San Francisco Bay Area ■ Fiscally -constrained, aspires to tackle the Bay Area's big challenges with specific strategies ■ E121 an expenditure plan; focused on setting long term priorities that look holistically across "silos" Identifies local and regional strategies Meets federal Ft state requirements Establishes a long-range regional vision across multiple topic areas Refresher on Past Actions: Plan Scope & Vision WHAT IS THE PLAN? VISION & GUIDING PRINCIPLES FOUR ELEMENTS OF THE PLAN Plan Bay Area 2050 is the long-range pl an ch arting a course for the nine - co unty San Francisco B ay Area, slated for adoption in fall 2021. Ensure by the year 2050 that the Bay Area is affordable, co nnected, divers_, and for all. • Transportation Strategies • Housing Geographies Et Strategies • Economic Geographies Et Strategies • Environment & Strategies 21 Looking Back at the Fo ur -Year Planning Process Kicked off in early 2018, Horizo n and Plan Bay Area 2050 focused on planning for an uncertain future, while advancing more equitable outcomes for all residents. Adoption of the Final Plan, slated fo r fall 2021, will be the final step in a four-year planning process that engaged tens of thousands of Bay Area residents. FUTURES ,.,EMM.... OPPORTUNITIES AND CHALLENG ES M ARCH 2019 FUTURES VIM REPO RT RESILIENT AND EQ UITABLE STRA TEGIES FO R THE BAY AREA'S FUTURE JANUARY2020 `2019 ` FALL2019 Futures Planning Perspective Papers Project Performance HORIZON PLAN BAY AREA 2050 Draft Blueprint & Final Blueprint Plan Document & Implementatio n Plan Environmental Impact Report (EIR) 22 SPRING 2021 Refresher on Past Actions: Growth Geographies 1.4 million new ho useholds between 2015 and 2050 • 1.4 kp‘ new j betwee nobs 2015 i 4ir million and 2050 Protect Areas Outside Urban Growth Boundaries (including PCAs) Unmitigated High Hazard Areas Prioritize FirPriority Devel opment Areas (PDAs) laPriority Production Areas (PPAs) (TRAs) High -Reso urce Areas (HRAs) as PDAs PPAs TRAs HRAs Refresher on Past Actions: Themes & Strategies Maintain and Optimize the Existing System Create Healthy and Safe Stre ets Build a Next - Generation Transit Network Protect and Preserve Affordable Housing Spur Housing Production at All Income Le vels Create Inclusive Communities Plan Bay Area 2050 35 Adopted Strategies • 15, Improve Economic M obility V; Shift the Location of Jobs Reduce Risks from Hazards Expand Access to Parks and Open Space Reduce Climate Emissions 5=R .. ritt. a w7.. .. m...==inn*" »a 5319 . €. T. ��. „Y:. ,... . . n. ..«....V o N/a ..n N/A Eca nc mic Strategies -Cu rt -$2l4 Billio n .r dwmr.. ,-. u.—. N,a Learn more about each of the 35 strategies in Chapters 2 through 5 of the Draft Plan Document at planbavarea. org. 24 Refresher on Past Actions: Revenues Transportation Element $469 billio n in existing funding $110 billion in new revenues ■ Existing Revenues ■ New Revenues ■ Existing Revenues New Revenues No te: $12 billion in existing transportation funding is shown in Environment Element for climate & sea level rise strategies. Housing Element $122 billi on in existing funding $346 billion in new revenues No te: new housing revenues could come from a mix of federal, state, regional, or lo cal sources. Economy Element N/A in existing funding $234 billion in new revenues ■ Existing Re venues New Revenues Environment Element $15 billi on in existing funding $87 billion in new revenues ■ Existi ng Revenues New Revenues Note: as Needs & Revenue data is unavailable Note: as Needs & Revenue data is for economic development, existing funding is unavailable for parks & conservation, underrepresented. existing funding is underrepresented. 25 Refresher on Past Actions: Growth Pattern MAP LEGEND CDCounty' s share of regional growth, sized based upon to tal number of new hou seholds KEY GROWTH STATISTICS 43% in Big 3 Cities 34% in Bayside Cities 18% in Inland/Coastal/Delta 5% in Uninco rporated Areas* 85% in Growth Geographies 72% in Priority Development Areas 82% in Transit -Rich Areas 28% in High -Resource Areas Job Growth: 2015 to 2050 MA P LEGEND County's share of regiona l gro wth, sized based upon total number of new jobs KEY GROWTH STATISTICS 39% in Big 3 Cities 45% in Bayside Cities 1 3% in Inland/Coastal/Delta 3% in Unincorporated Areas* 55% in Growth Geographie s 48% in Priority De velopme nt Areas 63% in Transit -Rich Areas 14% in High -Reso urce Areas * All urbanized growth in unincorporated areas is focused within existing urban growth boundaries (Strategy EN4). For brea kdowns on the subcou nty lev el, plea se refer to the Fina l Blu eprin t Gro wth Pattern on plan baya rea .ora. To tals do no t alwa ys sum to 100% due to roun ding. 26 Refresher on Past Actions: Key Outcomes AFFORDABLE CONNECTED DIVERSE HEALTHY Plan would reduce housing & transportation cost burden by 13 percentage points, with even greater improvements for low-income households Plan would improve access to frequent transit and to safe bicycle & pel t r^-r, f-,r^l^ti c's, enabling nearly 20 percent of workers to shift away from commuting by auto Plan would pr ovide more affordabl e h ousi ng in historically- excl usionary jurisdictions, while helping at least 10 percent of the region's low-income residents to buy their first home an wo uld meet the state -mandated greenh ouse as reduction target, while concurrently protecting nearly all homes from sea level rise impacts through 2050 would improve jobs -housing balance in counties thrc 'ou t the Bay Area, yielding shorter commutes for all workers 27 IMP PLAN BAY AREA 2050 Draft Implementation Plan (IP): Overview What is the Implementatio n Plan? Integrated as the final chapter of the Plan Document, the Implementation Plan identifies success factors for each of the 35 strategies, the pro po sed ro le fo r MTC/ABAG, and nearly 70 specific implementation actions for MTC/ABAG. Plan Bay Area 2050 Implementation Plan 30 -year strategies • 40 rigiliplig 'Mt! Authority Financial Technical Public Et Resources Capacity Political Support Success Facto rs 5 -year near -term actions 111‘ Sift& Lead Partner Support Po tential Roles 7 I Implementatio n Plan 28 Draft EIR: Spotlight on Alternatives Analysis How do strategies & growth ge ographies differ between the Draft Plan and each alternative? No Project Alternative Alternative 1 Required as part of CEQA, this alternative explores what the Bay Area would look like if the Draft Plan is not adopted. • Further concentrates housing growth in transit -rich areas (TRAs) by further increasing developable capacities and by shrinking urban growth boundaries • Adds a new ec onomy strategy to charge VMT-based devel opment fees for new office developments • Funds additio nal core capacity transit in vestments in lieu of highway expansion to support this gr owth pattern • r!rrthA.- ;r (UDI' by further increasing developable capacity in jobs -rich exclusionary jurisdictions a new econ strategy piiement office aeveiopment cap: in jobs -rich exclusionary jurisdictions & their neighbors arvice, expanded transit it. _ disc , nts, and enhan ce(/ped infrastruc to supp ort this growth pattern, while reducing funding for rail expansion 29 Draft EIR: Spotlight on Alternatives Analysis How does the growth pattern differ between the Draft Plan and each alternative? No Project Alternative Alternative 1 I Housing Growth More aispersed Significantly more growth in Contra Costa County Mo re concentrated Significantly more growth in San Francisco & San Mateo County ated Significantly more growth in Santa Clara County 11WMJob Growth Mo re concentrated More growth in San Francisco & Santa Clara County Similar to Draft Plan Slightly more growth in Contra Costa County Significantly more growth in San Francisco Jobs -Housing Balance Less Cidiai Leif "Status quo"; continued imbalances between co unties More balanced Improved performance in San Francisco & Contra Costa County Less balanced Greater imbalances in San Francisco and San Mateo counties 30 Draft EIR: Spotlight on Alternatives Analysis How do equity & performance outcomes differ between the Draft Plan and each alternative? Draft Plan (Fina l Blueprint) No Project Alternative Alternative 1 Greenhouse Gas Emissions Target -22% in 2035 + 1% in 2035 -22% in 2035 4/ -23% in 2035 For Ho useholds with Low Inc omes Housing + Transp ortation Affordability 57% of income 88% of income 57% of income 57% of income Household Share in High -Resource Areas Displaceme nt Risk in Equity Pri ority Communities (Tracts Losing Low -Inc ome HHs) 24 % 40 % 21 % 45% 25% 27% 35 % 31 What's Next: Final Round of Public Engagement Draft Plan Bay Area 2050 is available fo r public review on planbayarea.org, including: • Draft Plan Document + Implementation Plan • Draft Supplemental Reports • Draft Environmental Impact Report (co min g soo n!) The public comment period will continue through July 20th at 5:00 PM - for more info rmation on how to submit comments, go to planbayarea.org. —//1 I• ®Hu® • • Ora Abo ll 011•101110 r Virtual Public Workshops • June 14 at 5:00 PM • June 17 at 12:00 PM • June 28 at 5:00 PM • June 30 at 12:00 PM Virtual Public Hearings • June 11 at 9:30 AM • June 22 at 5:30 PM • July 7 at 1:30 PM Overview Videos a Web Resource s Youth Workshop £t Video Challenge Virtual Tribal Summit 32 ABAG, RHNA and Local Government ■ State -mandated process to plan for housing every 8 -years CA Dept of HCD identifies total need for region: 441,176 units ABAG creates RHNA methodology to distribute regional housing numbers to individual jurisdictions ■ Jurisdictions update Housing Elements to show zoning changes and potential sites to accommodate new RHNA numbers. RHNA Methodology Development Process October 2019 to September 2020 October 15, 2020 October 24 — November 27, 2020 January 2021 February 11, 2021 April 12, 2021 May 2021 Housing Methodology Committee (HMC) worked collaboratively and voted to recommend a Proposed RHNA Methodology. ABAG Executive Board approved Proposed RHNA Methodology. Public comment period on Proposed RHNA Methodology, including public hearing on November 12. 4 ABAG Regional Planning Committee and Executive Board voted to include "equity adjustment" as part of the Draft RHNA Methodology. As required by law, ABAG submitted Draft RHNA Methodology to HCD for review. HCD confirmed Draft RHNA Methodology furthers statutory objectives. ABAG Regional Planning Committee and Executive Board consider approval of Final RHNA Methodology and release of Draft RHNA Allocatio ns. 34 Final 2023-2031 RHNA Methodology Overview C.) Association of Bay Area Governments STEP 1: Group RHND by in come STEP 2: Fa cto r weight = units allocated by factor STEP 3: Calculate ju risdiction's u nits from each factor STEP 4: Apply equity adjustment Total R egional Housing Ne ed Determination (RHND) from HCD 114,442 65,892 441,176 72,712 ABOVE MODERATE of Allocation Factors for Very Low - and Low -Income Units Access to High Opportunity Areas (AHOAs) 126,234 Job Proximity —Auto (JPA) 27,050 Job Proximity — Transit (JPT) 27,050 Allocation Factors for Moderate - and Above Mod erate -Income Units Access to High Opportunity Areas (AHOAs) 104,337 Job Proximity — Auto (JPA) 156,505 x Jurisdiction score on factor AHOAs 1 Jurisdiction score on factor JURISDICTION BASELINE ALLOCATION hare of households in Year 2050 from Plan Bay Area 2050 Final Blueprint cation of VERY L and LOW Units Allocation of ABOVE MODERATE Units Equity Adjustm ent redistributes low er -incom e units to ensure all 49 jurisdictions identified as exhibiting above average racial and economic exclusion receive an allocation of lower -income units that is at least proportional to its share of households in 2020 Key Milestones & Timeline: RHNA Appeals Process Ov erv iew TOTAL JURISDICTION ALLOCATION Who can appeal? A jurisdiction or HCD can appeal jurisdiction's RHNA Allocation. • A jurisdiction can appeal its own allocatio n and/or another jurisdiction's allocation. • A jurisdiction that is the subject of an appeal filed by another jurisdiction/HCD will have the opportunity to challenge the appeal at the appeal public hearing. What are the major steps in the appeals process? Jurisdictions/HCD have 45 days to submit an appeal i writing. L> Jurisdictions/HCD have 45 days comment on L, ABAG must conduct a public hearing to consider appeals Per Government Code Section 65584.05 36 Key Milestones & Timeline: What is the Anticipated Appeals Schedule? Late May Early July End of August September and/or October October or November November or December Following action by ABAG Executive Board, ABAG notifies jurisdictions/HCD about adoption of Final RHNA Methodology and Draft Allocations. Deadline for jurisdictions/HCD to submit appeals to ABAG; ABAG notifies jurisdictions/HCD about appeals submitted . 1 Deadline for jurisdictions/HCD to c omment on appeals submitted; ABAG notifies jurisdictions/HCD about comments received. ABAG conducts public hearing to consider appeals and comments received; ABAG must notify jurisdictions at least 21 days prior to hearing. ABAG ratifies written final determination on each appeal and issues Final RHNA Allocations that include adjustments resulting from successful appeals . ABAG Executive Board conducts public hearing to adopt Final RHNA Plan. Considering Appeals: What Have Other COGs Experienced? Los Angeles Region (SCAG) — 202 • 48 appeals • 2 partially upheld (affecting 3,132 units) • 46 hours of hearings held on 8 days, plus final meeting for ratifying decisions San Diego Region (SANDAG) — 2020 • 4 appeals • 1 partially upheld (affecting 135 units) • Public hearing conducted in one day ABAG — 2013 (prior cycle) • 8 appeals • 3 upheld (affecting 674 units) • Public hearing conducted in one day 38 7 Milling an Appeal: What are Allowable Reasons for an Appeal? dp An appeal can be filed only if: 1. ABAG failed to adequately consider information submitted in the local jurisdiction survey . 2. ABAG did not determine the jurisdiction's allocation in acc ordance with its adopted methodology and in a manner that furthers, and does not undermine, the RHNA objectives . 3. A significant and unforeseen change in circumstances has occurred in the local jurisdiction that merits revision of informatio n submitted as part of local jurisdiction survey . Appeals on this basis sh all only be made by the jurisdiction where the change in circumstances has occurred . By law, appeals ca nnot be based on: • Any local ordinance, policy, voter -approved measure or standard limiting residential development. • Underproduction of housing from the last RHNA cycle. • Stable population numbers in a jurisdiction. AB 1487 — Bay Area Housing Finance Act I. Granted authority to ABAG and MTC to raise funding across 9 -counties Under AB1487, ABAG and MTC decide: 1) when to advance ballot measure; 2) revenue source; and 3) how to spend regional share of funds Decided not to pursue 2020 bond but: 1) Created new ABAG Housing Committee 2) Focus now on Expan ded Re gional H ousing Portfolio for ABAG and MTC r, pit ill WI TION OF BAY AREA GOVERN 1LITAN TRA SPORTAT N COMMISSION 112 Supporting L ocal Capacity and Expertise The role of Expanded Regional Housing Portfolio is to complement and f ortify local efforts, increasing access to technical expertise and new resources New Activ ity: Develop a Public Sector Cohort of Local Housing Staff • Regularly convene local housing staff to facilitate relationship -building and shared learning, and identify and disseminate best practices • Identify longer -term technical assistance needs that region can provide, secure resources r. ASSOCIATION OF BAY AREA GOVERNMENTS . .� nA T METROPOLITAN TRANSPORTATION COMM ISSION IlL gional Funding (REAP) Direct Lo cal Funding (SB2 & LEAP) 5B2+LEAP Direct to # Bay Area Lo cal Bay Area Jurisdicti ons Jurisdictions Awarded $2,125,000 2 $1,375,000 1 $1,125,000 1 $810,000 15 $610,000 21 $515,000 1 $460,000 1 $310,000 28 $237,610 1 $225,000 33 $150,000 2 $65,000 3 $49,522,610 109 State Planning Grants to Bay Area Grants from state directly to local jurisdictions 171 $23 .9M REAP GRANT FROM STATE TO ABAG $13M Regional TA ABAG Allocations to Local Jurisdictions Non -Competitive (Already Approved) $4.7M County Collaboratives $3M RHNA-Based Allocations $2.2M Minimum All ocations Competitive $1M Scoring -based Allocati ons* REGIONAL "VALUE ADD" Pro duce co mmon products like staff presentatio ns of new laws o nce vs. 109 times HCD SAFE HARBORS 0 n O 1I Leer -to -Peer Collaboration o O ODO O 0 no--) no-) Cost Savings *65 LOIs seeking $6M ABAG staff met with local planners in each county and asked how ABAG co uld be helpful. These are the things local jurisdictions said would help them the most. Standardized Regional Data Data Packets: Responding to Local Needs Local Need: Ho using Element law requires Housing Needs Section that quantifies and analyzes jurisdiction's housing needs and resources available to address them Key Product Features Response: Data packets with tables, figures, and accompanying text that can be placed directly into the Housing Needs Section Pre -reviewed by HCD for consistency with state requirements Editable Word Document and Excel Workbook that can be tailored by each jurisdiction as they see fit IL: Streamlined data collection to allow jurisdictions to focus on developing meaningful policies & programs 1 Contextual Narrative 3 LOOKING TO THE FU TURE: REGIONAL HOUSIN G NEEDS 3.1 R egional Ho using Ne eds Determination The Plan Bay Ar ea 2050' Final Blueprint forecasts th at Hie nire0wunty Bay 0204 will add 1 .4 million new househ old s between 2015 a nd 2050. For the epht"y eartime frame cov ered by this Ho2dng Element Updat e, the Departme nt of Hwaim and Community Development (I1CD) has ide ntified the region's housi ng need as 441,176 units . The total number of tnusing units assign 0 by HCD is separat ed Int o ro urinr am e categorlos that cov er ho using types 102 all Income levels, from very low4 ncome hous eh olds to market rate housing' This c alc ul ati on, known as the Regional Honing N eeds D etermin ation (RHN0), is baud on popul ati on proj ectio ns produced by the California Dep artment °, Finance as well as adembnents that incorporate Me regim 's eclstin0 honing deed. The adjutmenl5 result from recent l egislation r equiring HCD 10 apply factors to IM RHND related to a target yore, rat e, th e rate of overcrowding , and the share of cwt.b urde ned households.s Th es e new laws governing Me methodol ogy Mr how HCD calculates the MIND result ed in a sig nificantly higher number of housi ng units forwhich Me Bay Area must plan compared to previ ous PIMA cycles. 3.2 Regional Housing H eads Allocati on A st arting point for the Honing Eleme nt Upd ate pro cess for ev ery Californi a Jurisdiction Is Me R egi onal Housing Needs Allocation or RNNA-t he share of the RHND assigned to e ach (udsdic3on by th e Associ ation of Bay Are a Gov ernme nts ( ARA M. Stat e Housing Eleme nt law requires ABAG to develop a m ethodology that calculates the number of honing units assigned to each city and county and distributes each jurisdiction's lousing wit allocation among f our affordability l evels , For mor e information on the RHNA pmress this cycl e, see ABAG's webs) e: https:l labae.ca .g ov/wr- wo rk/housing rho egroal4musing-n eeds 'all ac atio n most elf (,,4,000om in Me B ay Area had a higher RHNA this cycle, primarily due to changes in state law that fed to a much high er RHND compared to pr evio us cycles. For Oakla nd, the proposed RHNA to be planned for fills cycle is 26,252 units, a 11.84I ncreas e from Me last cycle. Per st at e law, cities reed to Put In dace any z oning Mat m ay be rented and address consb alnt s to enur e Mat develo pmen t is possible. Th e RHNA is broken dow n by income c ategory as IGllovn: ',Mangey.. 2050 is a l0 q. z%e plan durHng the co urse for the future°, the nire cmwty San Franco° Bay Area. It cmtrs kw key isues: Me economy, the cb vbmoe 1, Iwnm and 10524 orta.m VHCD di.ihs the RH N01nto Me fallowing for 01.1'22 catego ries: ery Wreinmme: 0.50%of Area AMR. Income Wwdscv ne: 506¢6 of Area Median Income Modualein come: 60.120 of Area M edian Income Above M o deraRkwm e:1206 or more . Area Median Income Form are N foma tlmw H.O's RHND alwra tim for Me Bay Area, see M rs letter sent to1BAG fr om NCO 9 2020:blurs:row, vw..1.ca suittt anmwltv-dot e1°om enNn ln oeeemen trdas/abaulmatinal0bw2001 ,2411r1 .edl Table 1: Propos ed Regio nal Housing Ne eds Alloc atio n V ery Low Income ( c50, of Area Media n 6.512 23,608 114.442 24.00 26 .50 25.9. I nc ome) Incnrw(50-80%W ra Median Income) Ierate income (80. yr of A rea Media n I nc ome) Prate Income (312 11.533 37,362 18.8130 43.93 42.00 42.60 Media n Income) 4 ,45) 1 4,438 )2.)12 t2.0} 16.2E 16.5% Housing) Needs Data Packets. • Jurisdiction -level data, charts and graphs to insert into housing element • Key statistics disaggregated by race • Coming Soon: Additional data related to Affirmatively Furthering Fair Housing (AFFH) HOUSING ELEMENT DATA PACKETS edpe%b0 pro, 4bcn.. Cm anti Corm 90 91 140 1 0.0 r.°29mN.Htiant . 20/11 1440 Ian Age of 64ei1Mnts Compared to Co unty (9001) 80%51 % 60% p% 20% >N 13. t.• ]r d�4 °. I>a.416 t16Maa rHm06S 0. 05 Ape of Resl/ems (9001) /9 .914 VW. 14.9 191. Yo on , 19141 141,4 ro on 14 1,9 Average Household Mee 40 20 0 Two of/ cob Bp MA PCouty 600.400,011 OrmAO 2110 0 Owners and Renters DO% 110% 40% 20. 11k e% N /.. . RreYr foe% 1006 00% g 4 RY A • gy House hold Inco me (2001) =.1 tram H000001eld Typo Mob ono. or on to a ndly October 29th Joint webinar with HCD GOAL: SAFE HARBOR 1 Figures with Automated Text Explanations 4 POPULATION, EMPLOYMENT. @ HOUSEHOLD CHAR ACTERISTICS 4.1 P op ulation TM g ay Area Is the f ounh.langest metropolitan area in the n ation and h as seen a st eady I ncre ase In population si nce 1990, ex cept fora dip d uring th e Great Rec es sion . Most citi es in the region rope..ed a similar p attern of fob and populati on growthduring th6 time, yet th e production of housing did net meet the demo.. This has r esulted In higher horsing c osts and i nsufficient ho rsing to m eet th e nods of c omm uniti es. Si nc e 2000, Oakla nd has grow n abo ve tha n th e regi on as whol e, with a tot al poa.°. of 7.790,537 In 2020. T abl e 2: P opulati on Gr owth Tre nds eda County 1276782 1344157 1443939 1498963 1510271 1613528 1670834 Bay Area 6020147 6381961 6781348 7073912 7150739 7595694 7790537 Source 17(w nr n 0epwlmanl of Finm7r.£-512,,7,. 4.2 Ag e The 73211butl on of ag e gr oups in a city shapes what typ es of horsing th e commmdty may need In... nea1Su3ia. M Incre ase in th e old er popul ati on c an mean th er e hammed for more senfor housing aptbru, while higher lumb ers of children and you ng famili es can point to the need for more family housing options. Th ere h as also been a move by many to age -In -pl ace or down nze to stay within their co mm.0es, which can mean mor e ...dry y a nd ac cessible units are also needed. RMPuulm n 69 ag e, 2020.7016 } s a t 0 ���a 9m�mn Figure 2: Popula tion by Age, 2000-2019 Source: U .S. Cen su s B ure au, Ce nsus r, T able P a; U .S. Ce nsus aren a, ce mmzolo s Fn , Tabl e 022; U.S. cemu BUR, A merica n co ne ty Sunni Pl...Rarsml9i. Tablr mo on In Oakland , the medi an age In 2000 w as 32.6; by 2019. this fig ure had in creased , landi ng at around 36.6 years . More spe cifically, the popul ation of those under 14 .larg ely remained steady since 2010 . while the 65-aM.over popul atio n has incr eased. Looking at Me s eni or a nd youth popul ation by r ac e c an add an addit ional l ayer of unde rsta nding, as famines and seniors of c olor are even more lik ely to experi ence chdlmges finding aff ordable having People or color makeup 63.1% of seniors and 72 .5% of youth u nder 18 (see figure 3). Figur e 3: S eni or and Youth Pop ulati on by Rac e 4.3 Race and Ethnicity Understa ndi ng the r aci al. m ak eup of a dry and region is Imp ortant. Th ese patterns are sh aped by broth mor el fact ors and go vernment actions. such as excl usionary zoning. discriminato ry ter.ng practices and displacement that has incurred o ver time and continur to impact c ommunities of col or mdaya. Si nce 2000. Me percent age of resident s id entifying as White has i ncre ased. ch angi ng by 16.319 with the 2019 pop ulati on stvding at 28.3% (s ee Figur e 4). 8y compari so n, ail other r ams and eth nirities decreas tl by a tot al of AIM. Overall, th e His.. or L at. populat. Increased the most while the Block or African America n, H nn. Hispor2c population decreased the most. •Mtte: we contain non.wmte raci al groups for manilla. Ro thstei n. R. (2017). The alt ar of l aw: a forg ott en hist ory of ho w o ur gove rnm ent segregated Am erica. Hew York, to H Imam, UM tiredght Publishing. Interactiv e Site Selection Thco RHNA site Re sou rce O pportunity Are as MI High Se gregation & Pov erty MI Low Re source Highe st Resource Transit Priority Are a 2015-2023 sites that need to be zoned for higher density 6 and "by right" if used fo r affo rdable ho using ° cgs- i Maps potential sites for Housing Element site inventory Screens sites based on HCD requirements • Flags rezoning needed to be used • Pre -populates HCD's new reporting form October 29th Joint webinar with HCD GOAL: SAFE HARBOR Simp ' yi g Tech_ ical Assistance REAP and PDA Planning Grants Program • Two funding sources with o verlapping eligible uses & similar timelines • Opportunity to maximize the impact of funding and minimize local staff burden • Delivered by a single integrated regional planning department and single consultant bench Simplified Application Process Grant Typ e Summary Am ount ❑ Specific Plan ❑ Housing Element ❑ Parking ordinance ❑ Zoning amendment ❑ Station access plan ❑ Nexus study Eligible projects matched to funding and consultant team, maximizing impact Technical Assist ance f or Lo cal Pl anning HOUSING Regional Consulting Bench CEQA Gov Tech Mobility Site Analysis Parking Specific Plans Objective Design Housing Elements Resilience Fair Housing ADUs Housing Finance Zoning Urban Economics & More. .. Background & Context Nov 2020 regional housing revenue measure was postponed due to COVID Pivot to expand existing housing portfolios of MTC/ABAG over next 2-3 years ■ ABAG's Advancing California Finance Authority (ACFA) ■ Regional Housing Technical Assistance Program ■ BayREN energy/water conservation programs reduce operating costs Phased Approach ■ Phase 1: Research and Planning [DONE] ■ Phase 2: Early -Stage Pilot Activities & Launch BAHFA Business Plan ■ Phase 3: Build on Early Successes to Achieve Scale with regional revenue measure Transition to Phase 2: Goals As BAHFA seeks to strengthen regional 3Ps capacity, new activities will be guided by three intermediate goals: 1. Make meaningful impact on housing and homelessness in the Bay Area. 2. Establish proof of concept for a coordinated regional housing strategy that will inspire investment in more ambitious future programs. 3. Incrementally build capacity and expertise to ensure that significant future capital resources can be deployed efficiently and effectively. Building Regional Capacity and Expertise Expanded Regional Housing Portfolio is critical opportunity to increase capacity and expertise at ABAG/MTC in advance a regional housing initiative and funding New Activ ity: Launch Pilot Pr ojects • Five pilot projects designed to incrementally build our regional staffing and expertise, so ABAG and MTC are ready to deploy future regional capital swiftly • Launching pilot projects contingent on securing new resources 0 iCAT ASSOCIATION OF BAY AREA GOVERNM ENTS M ETROPOLITAN TRANSPORTATION COMM ISSION 5 Pilot Programs Doorway: Online platform to connect residents to affordable housing opportunities Affordable Housing Pipeline: Database to track the production and preservation of affo rdable homes Preservation Strategy: Financing and technical assistance to support and scale preservation efforts Anti -Displacement Services Network: Coordinatio n and best practices for deployment of rental assistance and tenant protection services Homelessness Prev ention System: Integrated resources and services to keep people housed Pilot #5 Homelessness Prevention System Approach: Partner with Regio nal Impact Council, led by All Home to develop a path for bold actions to end homelessness. Support design and launch of regional homelessness prevention system to equip local service providers with new tools and resources. Funding Plan Seek $18. 5 million one-time State budget appropriation: • Fund 5 pilot projects across the 3Ps • Enhance longer -term BAHFA Business Plan • $5M capital funding for regional preservation pilot program Seek additional funds through partnerships with philanthropic and corporate secto rs Impact: Coordinated, regional homelessness prevention system that can efficiently deploy flexible resources and inspire the investment of significant new public and private resources . New Resources and Options New Funding: REAP/RHTA/BAHFA New tools to help l ocal staff with Housing Elements Share best practices to help create housing solutions that fit each community's unique situation and opportunities - ADUs/JDUs - Repurposed commercial space: + malls to mixed use + office buildings to housing + retail to mixed use Schedule and Next Steps Launch BAHFA Concept Paper — Late January 2021 Seek new resources to suppo rt fiv e pilo t projects — Spring -Winter 2021 Conv ene local housing staff by county — Summer 2021 So ft launch several pilots with new resources — late 2021 Monitor state/federal legislation, intervene as appro priate — Ongoing a e; ASSOCIATION OF BAY AREA GOVERNMENTS METROPOLITAN TRANSPORTATION COMMISSION Attachment B BYLAWS OF THE ASSOCIATION OF BAY AREA GOVERNMENTS As Amended June 11, 2020 ARTICLE I. PURPOSE The Association of Bay Area Governments (hereinafter "Association") is hereby created as a separate entity established by agreement among its members pursuant to the Joint Exercise of Powers Act, California Government Code Sections 6500, et seq. (hereinafter "Act"). The Association is organized for the purposes of establishing a permanent forum for discussion and study of regional and subregional problems of interest and concern to the counties and cities of the San Francisco Bay Area, developing policies and actions, and providing services and undertaking actions addressing such problems. ARTICLE II. DEFINITIONS A. "Agreement" means the Agreement with the Association of Bay Area Governments entered into under the Act by the Association Members. B. "Association" means the Association of Bay Area Governments as established by the Agreement and these Bylaws. c. "Executive Board" means the Association's President, Vice President and Immediate Past President and the body of representatives which meet from time to time as provided in these Bylaws to govern the affairs of the Association between meetings of the General Assembly. D. "General Assembly" means the body of the delegates of the Members of the Association as set forth in these Bylaws. E. City, county, or city and county members of the Association may be referred to as "Members." F. "Delegate" means a delegate of a Member of the Association to the General Assembly, or the alternate acting in the delegate's absence. G. "Representative" means a representative to the Executive Board, or the alternate acting in the representative's absence. H. "Regional Plan" means the comprehensive plan for the San Francisco Bay Region adopted and amended from time to time by the Association. �. "Regional Problem" means an issue concerning the public health, safety or welfare of substantially all of the Association's Members, a solution to which may require intergovernmental cooperation or assistance of the Association. -1- ABAG Bylaws June 11, 2020 BYLAWS OF THE ASSOCIATION OF BAY AREA GOVERNMENTS J. "Subregional Problem" means an issue concerning the public health, safety or welfare of one or more of the Association's Members, a solution to which may require intergovernmental cooperation or assistance of the Association. ARTICLE III. MEMBERSHIP A. MEMBERS (1) The counties of Alameda, Contra Costa, Marin, Napa, San Mateo, Santa Clara, Solano, and Sonoma, the City and County of San Francisco, and within the area of such counties all cities and incorporated towns (hereinafter referred to as "cities") now existing or formed in the future are eligible for membership in the Association. (2) All eligible cities and counties become Members of the Association upon execution of the Agreement and payment of the annual assessment and annual membership fee. B. COOPERATING MEMBERS (1) Subject to the approval of the Executive Board or the Executive Director as set forth in Article III.B(4), any governmental entity, public agency, or non-profit organization not eligible for membership under Article III.A of these Bylaws may elect to join the Association as a Cooperating Member. (2) Cooperating Members shall be entitled to attend all meetings of the General Assembly and of the Executive Board, but shall not be entitled to vote or participate in debate. No Cooperating Member shall be considered a "contracting party" as that term is used in the Act. (3) Cooperating Members shall be entitled to receive data, studies, planning documents, special services, and other written materials and services of the Association subject to policies adopted by the Executive Board. (a) The Executive Director of the Association may approve the admission of any governmental entity or public agency electing to join the Association as a Cooperating Member pursuant to this Article III.B. (b) The Executive Board of the Association may approve the admission of any non-profit organization electing to join the Association as a Cooperating Member pursuant to this Article III.B. ARTICLE IV. POWERS A. GENERAL The Association may exercise in its own name the following powers when the exercise of these powers is necessary to, in furtherance of, or in support of the Association, the exercise of any other powers provided for in these Bylaws or the Agreement, or any other authorized activity -2- ABAG Bylaws June 11, 2020 BYLAWS OF THE ASSOCIATION OF BAY AREA GOVERNMENTS undertaken by the Association: make and enter into contracts, memoranda of understanding, and other agreements; employ and appoint employees and agents; acquire, hold, protect, dispose of, construct, operate, and maintain real and personal property; incur debts, liabilities, obligations, and encumber or hypothecate real or personal property; sue and be sued; and, accept grants, gifts, donations, and other monies. B. INFORMATION GATHERING The Association may request, collect, store, correlate, transfer, and otherwise manage information and data in any manner necessary to, in furtherance of, or in support of the exercise of any other power under this Article or any other authorized activity undertaken by the Association. C. STUDIES The Association may perform studies to identify and/or analyze regional or subregional problems, the purpose and subject matter of such studies to be determined as provided in these Bylaws. D. REGIONAL PLANNING The Association shall have the power to perform regional or subregional planning without limitation as to subject matter: (1) that it is eligible or authorized to do; or, (2) that it is required to do under State or Federal authority; or, (3) that is authorized under other provisions of these Bylaws or as a result of the Association's studies of regional or subregional problems. E. POLICIES AND ACTIONS (1) The Association may develop and adopt policies and/or actions. (2) The Association may advocate and otherwise act to advance its positions, studies, plans, and policies both within and outside the region and may accept delegations of authority from Federal, State, regional, or local bodies to this end. F. INTERAGENCY COOPERATION (1) The Association may appoint representatives, in its own name, to other agencies, Boards, commissions, or official bodies to which it is required or eligible to make appointments. (2) The Association may perform and participate in governmental coordination and respond to efforts at such coordination. -3- ABAG Bylaws June 11, 2020 BYLAWS OF THE ASSOCIATION OF BAY AREA GOVERNMENTS (3) In the exercise of its powers under Article IV.F(1) and (2), the Association may request or transmit information or studies; exercise any voting or veto power given to it; participate in grant applications, administration, and disbursements; and, do any other acts necessary to or in support of the exercise of such powers. G. INFORMATION, SERVICES, AND ASSISTANCE (1) The Association may provide information, assistance, services, studies, plans, recommendations, and reports or such other information, assistance, and services requested by specific Members or nonmembers. Information, services, and assistance may include, without limitation, preparing or making of grant applications on behalf of or in conjunction with Members, training programs for local government staff, technical assistance on particular projects, or review of particular projects. The Association may provide information, assistance and services in conjunction with other entities and may organize and/or participate in committees, task forces, and subsidiary entities necessary to or in support of this or its other powers. (2) The Association may charge reasonable fees for information, services, and assistance that it provides. H. POWER TO FINANCE PROPERTY FOR MEMBERS The Association shall have the power to finance and acquire, by lease purchase, installment sale or other financing agreements, both real and personal property necessary or convenient for the operation of the Members and Cooperating Members, and to sell or lease such property to such members pursuant to installment sale or lease purchase agreements between the Association and the members acquiring such property. i. SELF-INSURANCE POOLS Pursuant to Government Code Sections 989-991.2 and Labor Code Section 3700, as may be amended from time to time, ABAG shall have the power to provide insurance for some or all of its Members through self-insurance or the purchase of insurance, excess insurance or reinsurance against public liability, errors and omissions, inverse condemnation or workers' compensation; and, further, shall have such other reasonable and necessary powers, which are necessary or convenient to further, support or implement the self-insurance program, including without limitation, financing self-insurance reserve funds through the issuance of certificates of participation, or other instruments of indebtedness. J. OTHER POWERS The Association may exercise other reasonable and necessary powers in furtherance or support of any purpose of the Association or power granted by the Act, the Agreement, or the General Assembly or the Executive Board as provided for in these Bylaws. ARTICLE V. RESTRICTIONS ON POWERS -4- ABAG Bylaws June 11, 2020 BYLAWS OF THE ASSOCIATION OF BAY AREA GOVERNMENTS Pursuant to Articles 1 and 5 of the Agreement and to the extent required by Government Code Section 6509, the Association shall be restricted in the exercise of its powers in the same manner as the City and County of San Francisco is restricted in its exercise of similar powers; provided that, if the City and County of San Francisco shall cease to be a Member of the Association, then the Association shall be restricted in the exercise of its powers in the same manner as the County of Alameda. ARTICLE VI. GENERAL ASSEMBLY A. MEMBERSHIP (1) Each Member city and Member county shall have one seat in the General Assembly. San Francisco shall be counted as both a city and a county for purposes of membership in the General Assembly. (2) The mayor or member of the governing body of each Member city and the chairperson of the board of supervisors or member of the governing body of each Member county, or their respective alternates, shall be delegates to the General Assembly. (3) Each city council and board of supervisors may designate an alternate who shall be either a member of such body or the chief executive officer of the Member; provided that, the mayor of the City and County of San Francisco may designate as an alternate (a) any officer of the City and County of San Francisco who may be either an elected or principal appointed official of the City and County of San Francisco or (b) the chief executive officer of the City County of San Francisco. (4) An alternate appointed pursuant to Article VI.A(3) may act in the absence of the delegate. B. MEETINGS (1) The time, date, and location of the annual meeting of the General Assembly shall be determined by the Executive Board, provided it is no later than June 30. (2) Notice of the annual meeting of the General Assembly shall be given to the delegates of each Member city and Member county at least thirty (30) days prior to the meeting. An agenda for the meeting shall accompany the notice. (3) Special meetings of the General Assembly may be called by the Executive Board upon its own motion. A special meeting shall be called by the Executive Board upon written request of fifteen (15) Member cities and three (3) Member counties. (4) Ten-day written notice of special meetings shall be given to the delegates of each Member city and Member county. An agenda specifying the subject of a special meeting shall accompany the notice. -5- ABAG Bylaws June 11, 2020 BYLAWS OF THE ASSOCIATION OF BAY AREA GOVERNMENTS c. POWERS AND FUNCTIONS The powers and functions of the General Assembly shall include: (1) Exercising as appropriate all of the powers of the Association as set forth in these Bylaws or the Agreement. The General Assembly shall have the power to limit the Executive Board's exercise of any power or authority set aside to the Executive Board under these Bylaws. (2) Any delegate may at any meeting of the General Assembly propose a subject or subjects for study by the Association. The General Assembly may take action upon such proposals and, if requested by any delegate, determine whether a study will be made of the subject or subjects so proposed or may refer such subject or subjects to the Executive Board. (3) Any delegate may at any meeting of the General Assembly request review by the General Assembly of any action of the Executive Board which has been taken between meetings of the General Assembly. (4) The budgetary duties and responsibilities set forth in Article XI. ARTICLE VII. EXECUTIVE BOARD A. EXECUTIVE BOARD There shall be an Executive Board of the Association which shall be organized and shall be responsible for functions as hereinafter set forth: (1) Voting Membership. The voting membership of the Executive Board shall consist of a maximum of 38 voting members (representatives and ex officio members). The representative shall be either a councilmember of a Member city or a supervisor of a Member county of the Association, or be eligible to be Executive Board representative or alternate representative from the City and County of San Francisco under Article VII.A(1)(e), if that jurisdiction is an Association member. Representatives to the Executive Board shall be selected as follows: (a) Alameda County. Two representatives of the county to be appointed by the Board of Supervisors; two representatives of Member cities within the county to be appointed by the mayors of Member cities meeting in conference, and three representatives to be appointed by the City Council of the City of Oakland. (b) Contra Costa County. Two representatives of the county to be appointed by the Board of Supervisors; two representatives of Member cities within the county to be appointed by the mayors of Member cities meeting in conference. (c) Marin County. One representative of the county to be appointed by the Board of Supervisors; and one representative of Member cities within the county to be appointed by the mayors of Member cities meeting in conference. -6- ABAG Bylaws June 11, 2020 BYLAWS OF THE ASSOCIATION OF BAY AREA GOVERNMENTS (d) Napa County. One representative of the county to be appointed by the Board of Supervisors; and one representative of Member cities within the county to be appointed by the mayors of Member cities meeting in conference. (e) San Francisco City and County. The Mayor and one other elective officer or member of the Mayor's staff of the City and County appointed by the Mayor; two representatives of the City and County appointed by the Board of Supervisors, and a fifth representative to be appointed alternately by the Mayor and the Board of Supervisors, with two- year appointments beginning in years evenly divisible by four to be made by the Mayor and with two-year appointments made in even -numbered years not evenly divisible by four to be made by the Board of Supervisors. When such fifth representative is selected by the Mayor, the representative may be an elective or appointive officer or member of the Mayor's staff of the City and County. (t) San Mateo County. Two representatives of the county to be appointed by the Board of Supervisors; two representatives of Member cities within the county to be appointed by the mayors of Member cities meeting in conference. (g) Santa Clara County. Two representatives of the county to be appointed by the Board of Supervisors; two representatives of Member cities within the county to be appointed by the mayors of Member cities meeting in conference, and three representatives to be appointed by the City Council of the City of San Jose. (h) Solano County. One representative of the county to be appointed by the Board of Supervisors; and one representative of Member cities within the county to be appointed by the mayors of Member cities meeting in conference. (i) Sonoma County. One representative of the county to be appointed by the Board of Supervisors; and one representative of Member cities within the county to be appointed by the mayors of Member cities meeting in conference. 0) Alternates. Each of the appointing bodies named in Article VII.A(1)(a)-(i) may designate an alternate for each of their representatives to act in the representative's absence. Appointments of alternates shall be made in the same manner, with the same qualifications and for the same term as representatives. (2) Advisory Membership. The Association shall maintain effective communication and coordination with agencies of the State of California and the United States of America. To that end, the Executive Board shall invite, following nomination by the Association's President, such representatives of state and federal governments as it deems appropriate and desirable as advisory, non -voting members of the Executive Board. Such members shall serve at the pleasure of the Executive Board. No advisory member shall be considered a "contracting party" as that term is used in the Act. (3) Terms of Office. Representatives shall serve for terms of two years. Appointments -7- ABAG Bylaws June 11, 2020 BYLAWS OF THE ASSOCIATION OF BAY AREA GOVERNMENTS of representatives to the Executive Board shall become effective biennially on July 1. (4) Staggered Terms. The terms of the representatives to the Executive Board shall be staggered so that the terms of approximately one-half of the representatives expire each year. The terms of the representatives of the cities in the counties of Alameda, Marin, Napa, San Francisco (mayor and representative), and Santa Clara, and the representatives of the counties of Contra Costa, San Mateo, Solano, and Sonoma shall expire in the even- numbered years; the terms of the representatives of the cities in the counties of Contra Costa, San Mateo, Solano, and Sonoma, and the representatives of the counties of Alameda, Marin, Napa, San Francisco (representatives of the Board of Supervisors), and Santa Clara shall expire in the odd -numbered years. (5) Officers. The President and the Vice President of the Association shall be Chairperson and Vice Chairperson, respectively, of the Executive Board. (6) Duties. (a) The Executive Board shall have the budgetary duties and responsibilities set forth in Article XI. (b) The Executive Board shall submit a full report of its activities at the General Assembly's annual meeting. (c) Subject to any constraint or limitation imposed by the General Assembly, the Executive Board shall exercise all powers of the Association between meetings of the General Assembly; provided that, the Executive Board shall not amend these Bylaws, nor shall it exercise the budgetary powers reserved to the General Assembly under Article XI of the these Bylaws except as provided in Article XI B (5). (d) The Executive Board shall be responsible for carrying out policy decisions made by the General Assembly. (e) Recommendations from committees for policy actions shall be made to the Executive Board. Unless otherwise directed by the General Assembly, the Executive Board may take action on such recommendations. (7) Per Diem. Each voting member of the Executive Board, or of a standing and/or joint committee, and where expressly designated by the Executive Board, individuals participating in special committees, task forces or other meetings, shall receive a per diem of $150 for each meeting attended. The per diem shall be paid for a maximum of forty-eight (48) meetings per year. Per diem may also be received by a Board or committee member representing the Association before an agency or body of the State or Federal government. B. MEETINGS The Executive Board shall meet at least four times each year. Additional meetings shall be held upon the call of the Chairperson or upon the call of five voting members of the Executive -8- ABAG Bylaws June 11, 2020 BYLAWS OF THE ASSOCIATION OF BAY AREA GOVERNMENTS Board. C. ADMINISTRATIVE COMMITTEE There shall be an Administrative Committee of the Executive Board of the Association whose composition shall be determined by the Executive Board and which shall, subject to any constraint or limitation imposed by the Executive Board or the General Assembly, exercise all powers of the Executive Board between meetings of the Executive Board; provided that, the Administrative committee shall not: (1) Amend the Agreement or Bylaws; (2) Exercise the budgetary duties of the Executive Board set forth in Article XII; (3) Exercise the powers of appointment of officers as set forth in Article IX. The Administrative Committee shall meet upon the call of the President or Vice President and in compliance with the Ralph M. Brown Act. Further, the Administrative Committee shall submit a full report of its activities to the Executive Board at the first meeting immediately following the Administrative Committee meeting. ARTICLE VIII. VOTING A. Voting in the General Assembly shall be conducted in the following manner. (1) A quorum of the General Assembly shall consist of a majority of the city delegates and a majority of the county delegates. (2) Each county delegate and each city delegate shall have one vote. Votes shall be tabulated separately for county delegates and for city delegates. The affirmative votes of a majority of a quorum of county delegates and of a majority of a quorum of city delegates are required for action by the General Assembly, except as provided for in Article XIV. B. Voting in General Assembly meetings may be either by voice or roll call vote. A roll call vote shall be conducted upon the demand of five delegates present, or at the discretion of the presiding officer. C. Voting in the Executive Board shall be conducted in the following manner: (1) A majority of the voting members of the Executive Board shall constitute a quorum. (2) The affirmative votes of a majority of the members present provided that there is a quorum are required for action by the Executive Board. D. Except as the Executive Board may otherwise provide, all other committees of the Association may act upon the affirmative vote of a majority of the committee members present. -9- ABAG Bylaws June 11, 2020 BYLAWS OF THE ASSOCIATION OF BAY AREA GOVERNMENTS ARTICLE IX. OFFICERS, ELECTIONS AND VACANCIES A. Officers of the Association shall be: (1) The President, who shall serve as Chairperson of the Executive Board and General Assembly. (2) The Vice President, who shall serve as Vice Chairperson of the Executive Board and General Assembly. (3) The Immediate Past President. (4) An Executive Director and a Legal Counsel to be appointed by and serve at the pleasure of the Executive Board. Section 2.1 of the Contract for Services, dated May 30, 2017, between ABAG and the Metropolitan Transportation Commission (MTC) (the CS) provides that MTC's Executive Director shall perform the functions and duties with respect to ABAG and the local collaboration programs that were formerly performed by ABAG's Executive Director. For purposes of these Bylaws, so long as the CS is in effect, references to the "Executive Director" shall be deemed to refer to the MTC Executive Director. Section 3.4 of the CS provides that legal services shall be performed by MTC's Office of General Counsel. Subject to the terms of the CS pertaining to potential conflicts of interest, obtaining outside specialized legal services, and the discretion of ABAG or the local collaboration programs to directly retain outside counsel, references in these Bylaws to the legal counsel shall be deemed to refer to the MTC Office of General Counsel. B. The President and Vice President of the Association shall be elected biennially by secret ballot of supervisors, mayors and city councilmembers of member jurisdictions. Nominations for the offices of the President and Vice President shall be by petition of at least fifteen (15) mayors, councilmembers or supervisors. A plurality vote shall be required for election to any office. All other election procedures shall be determined by the Executive Board, provided that these procedures shall be disseminated to all member jurisdictions at least thirty (30) days prior to the date determined and designated for counting of secret ballots. If, at the close of nominations, only one candidate is nominated for President or for Vice President, the election procedures may waive the ballot requirement and provide, instead, that the nominee be declared elected to that office. C. The President and Vice President shall be either a councilmember of a Member city or a supervisor of a Member county of the Association, or a General Assembly delegate or alternate or Executive Board representative or alternate representative from the City and County of San Francisco if that jurisdiction is an Association member. D. The terms of office of the President and Vice President shall be determined as follows: (1) Except as otherwise provided in this section, the term of office of the President, -10- ABAG Bylaws June 11, 2020 BYLAWS OF THE ASSOCIATION OF BAY AREA GOVERNMENTS Vice President and Immediate Past President is two (2) years. (2) If the President vacates his/her office as required by Article IX.C. or any other reason, the Vice President shall assume the office of President for the balance of the original term. If the balance of the original term is less than five hundred forty-eight (548) calendar days, then the new President may choose to run for an additional one (1) year term as President. The new President shall notify the Executive Board no later than September 1 of the year in which the original term ends whether he/she shall run for an additional one (1) year term. The President's election to run for an additional one (1) year term shall also modify the term of office of the Vice President to conform to that of the office of the President. (3) respects. Article IX.B. shall govern the special elections for one (1) year terms in all other (4) In the event that the President is disabled or for any other reason temporarily unable to act, the Vice President shall act in place and perform the duties of President until return or recovery from disability. (5) In the event of a vacancy in the office of Vice President due to the Vice President's permanently serving as President, vacating the office as required by Article IX.C., or for any other reason, the Executive Board shall fill the office of Vice President by appointment for the unexpired portion of the Vice President's term. In the event of a simultaneous vacancy in the offices of President and Vice President due to their vacating the respective offices as required by Article IX.C., or any other reason, the Executive Board shall fill both offices by appointment for the unexpired portion of the respective terms. In either event, the procedures of Article IX.I shall govern the process of filling said vacant office. E. A newly elected President and Vice President shall take office on January 1 of the year following certification of the election results. F. The President, subject to the advice and consent of the Executive Board, shall appoint committees and determine the committees' structure, charge, size and membership. Committees may be established to consider any matter within the jurisdiction of the Association. Committees shall operate according to the policies adopted by the Executive Board, and shall submit their reports and recommendations to the Executive Board. Committees shall meet on the call of their chairpersons, who shall be (1) an elected official or the elective or appointive officer of the City and County of San Francisco appointed by the Mayor of the City and County of San Francisco to the Executive Board or General Assembly, and (2) a member of such committee; and who shall be elected by the members of each committee. At the initial meeting of each committee, and annually thereafter at the first committee meeting following January 1 of each year, the committees shall elect their chairpersons and such other officers as may be specified. Committee chairpersons shall be subject to confirmation by the Executive Board. Unless otherwise authorized by the Executive Board, committees of the Association shall be advisory. G. Each delegate or alternate to the General Assembly and each representative or alternate to the Executive Board shall cease to be such immediately upon ceasing to hold the -11- ABAG Bylaws June 11, 2020 BYLAWS OF THE ASSOCIATION OF BAY AREA GOVERNMENTS elective or appointive office which is required of a delegate or representative or their alternates under VI.A or VII.A(1). g. In the event that any delegate or alternate to the General Assembly or any representative or alternate to the Executive Board shall for any reason cease to hold the elective or appointive office which is required of a delegate or representative or their alternates under Article VI.A or VII.A(1), the vacancy created thereby shall be filled for the unexpired term, in the same manner and with the same qualifications as the original appointment. 1. The Executive Board shall fill the office of Vice President or President pursuant to Article IX.D., at the first meeting of the Executive Board held after the occurrence of the event which causes the office(s) to be vacated. The meeting shall be chaired by the President, or if said office is vacant, by the Immediate Past President. Nominations for the vacant office(s) may be made from the floor. All nominations require a second. The office(s) may be filled only if a nominee receives a majority vote of the members of the Executive Board constituting the quorum for that meeting. If no nominee receives a majority vote on the first ballot, the two nominees receiving the highest number of votes shall be voted upon again until one of them receives a majority vote. If the selection process results in a tie, or no nominee receives a majority vote after three rounds of balloting, the acting Chairperson of the Executive Board may, at his or her discretion, decide the matter by lot between the two nominees then remaining. ARTICLE X. EXECUTIVE DIRECTOR The Executive Director shall be the Chief Administrative Officer of the Association. The powers and duties of the Executive Director are: A. To appoint and remove all employees of the Association. B. To perform the budgetary duties and responsibilities of the Executive Director as set forth in Article XI. C. To serve as the Secretary -Treasurer of the Association and of the Executive Board. D. To perform such other and additional duties as the Executive Board may require. In the event the CS is terminated or is no longer in effect: (1) The Executive Board shall have the authority to appoint, fix the salary of, and remove an Executive Director of the Association and shall have the authority to create and discontinue positions in the office of the Executive Director and fix salaries; provided however the Administrative Committee of the Executive Board shall not have the power to appoint, fix the salary of, or remove an Executive Director of the Association. (2) In order to appoint or remove the Executive Director, the affirmative vote of not less than a majority of the voting members of the Executive Board present at the meeting of the Executive Board where the matter is considered, is required. -12- ABAG Bylaws June 11, 2020 BYLAWS OF THE ASSOCIATION OF BAY AREA GOVERNMENTS ARTICLE XI. FINANCES A. FISCAL YEAR The fiscal year of the Association shall commence on July 1. B. BUDGET (1) At least forty-five (45) days prior to the annual meeting of the General Assembly the Executive Director shall submit to the Executive Board, for the next fiscal year of the Association, a proposed general budget and summary work program. The proposed general budget shall include annual membership fee and assessment schedules and a summary of revenue and expenditures, actual or projected, for the preceding, current, and next fiscal years. (2) The Executive Board shall review the proposed general budget and summary work program, amend them as necessary, and submit them to the General Assembly for review and adoption at the annual meeting of the Assembly. (3) The General Assembly shall adopt a summary work plan and general budget, including yearly membership assessment and annual membership fee. (4) The Executive Board shall adopt a detailed budget and work program on or before July 1 of each year, and thereafter monitor their execution and amend them as necessary. The work program shall give effect to any priorities set forth in the general budget and summary work program, unless financially infeasible. (5) The Executive Director shall manage all expenditures, subject to control of the Executive Board. The Executive Board shall have power to transfer funds within the total detailed budget to meet unanticipated needs or changed situations and to amend the detail budget as necessary to accommodate new or additional grant or other revenue sources received after the July 1 adoption of the detail budget. Such action shall be reported to the General Assembly by an electronic communication within thirty (30) days of such amendment. C. YEARLY MEMBERSHIP ASSESSMENT The amount of each Member's assessment shall be determined in accordance with the formula set out in Paragraph D following. Any Member city or county whose annual assessment and annual membership fee has not been paid by the time of the annual meeting of the General Assembly shall not be entitled to vote at such meeting. D. METHOD OF ASSESSMENT The annual assessment for members of the Association shall be based upon population as determined by the State Controller in making the most recent allocations to counties and cities pursuant to California Revenue and Taxation Code Section 11005, except that, beginning in -13- ABAG Bylaws June 11, 2020 BYLAWS OF THE ASSOCIATION OF BAY AREA GOVERNMENTS 1987-88, in the case of newly incorporated cities, until such time as an official census is conducted and population is established therewith, the population as estimated by the Executive Director shall be used for assessment purposes. (1) The General Assembly shall adopt a per capita rate or rates of assessment for each fiscal year. (2) For purposes of assessment San Francisco shall be considered as both a city and a county. E. ANNUAL AUDIT The Executive Board shall cause an annual audit of the financial affairs of the Association to be made by a certified public accountant at the end of each fiscal year. The Executive Board shall employ a certified public accountant of its choosing. The audit report shall be made available to Association member counties and cities. F. ANNUAL MEMBERSHIP FEE The membership fee shall be uniform for all members of the Association and shall not be less than $10.00 per month or $120.00 per year. G. DATE OF PAYMENT Unless a Member has withdrawn as provided in Article XIII of these Bylaws, the Member's annual assessment and annual membership fee shall be due and payable to the Association on July 1 of the fiscal year for which it is levied. ARTICLE XII. STATUTORY AUTHORITY The Association is an agency established by a joint powers agreement among the Members pursuant to Title 1, Division 7, Chapter 5, of the Government Code of the State of California. The Association is an entity separate and apart from its Members. The debts, liabilities and obligations of the Association shall not be debts, liabilities or obligations of the Association's Members. ARTICLE XIII. WITHDRAWAL Any member county or city may, at any time up to 30 days prior to the beginning of the Association's fiscal year, withdraw from the Association effective the next fiscal year; provided that the intent to withdraw must be stated in the form of a resolution executed by the legislative body of the jurisdiction wishing to withdraw. The resolution must be given to the Executive Director at least 30 days prior to the effective date of the withdrawal. ARTICLE XIV. AMENDMENTS Amendments to these Bylaws may be proposed by a delegate or by the Executive Board. -14- ABAG Bylaws June 11, 2020 BYLAWS OF THE ASSOCIATION OF BAY AREA GOVERNMENTS If proposed by a delegate, the amendment shall be submitted to the Executive Board at least 45 days prior to an annual meeting of the General Assembly. Each proposed amendment shall be considered by the Executive Board and a copy thereof, with the recommendations of the Executive Board and its reasons therefor, forwarded to the delegate of each Member jurisdiction at least 30 days prior to the meeting at which such proposed amendment will be voted upon. A majority vote of the county delegates present and a majority vote of the city delegates present are required to adopt an amendment to these Bylaws. ARTICLE XV. EFFECTIVE DATE These Bylaws shall go into effect immediately upon the effective date of the Agreement. -15- ABAG Bylaws June 11, 2020 Attachment C ASSOCIATION OF BAY AREA GOVERNMENTS AGREEMENT THIS AGREEMENT made and entered into by and between the City of Palo Alto and those county and city governments within the Counties of Alameda, Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano and Sonoma, other than the of who, either before or after this date, become signatories hereto; Witnesseth: WHEREAS, there is a demonstrated need for the establishment of an associa- tion of county and city governments within the San Francisco Bay Area to provide a forum for discussion and study of metropolitan area problems of mutual interest and concern to the counties and cities, and to facilitate the development of policy and action recommendations for the solution of such problems; and WHEREAS, Title 1, Division 7, Chapter 5 of the Government Code of the State of California authorizes the joint exercise by agreement of two or more public agencies of any power common to them; and WHEREAS, the parties hereto possess in common the power to study, discuss and recommend policies for the solution of metropolitan area problems of direct concern to the performance of their constitutional and statutory functions and to join associations and expend public funds for these purposes; NOW, THEREFORE, in consideration of the mutual terms, covenants and condi- tions herein agreed, the parties hereto agree as follows: 1 .. Purpose of Agreement. The purpose of this Agreement shall be to provide for the participation by the City _ of Palo 61tn as a member of the Association of Bay Area Governments (hereinafter referred to as the Association) jointly with the other county and city governments which be- come parties hereto in accordance with the By -Laws of said Association which are attached hereto, and incorporated herein as a part of this Agreement; provided, however, that nothwithstanding the provisions of Article IX of the By -Laws, the budget for operations during the period ending July 1, 1961, shall be prepared and adopted by the Executive Committee in an amount not to exceed $55,000, and assessments therefor shall be imposed by the Executive Committee, such assessments not to exceed the amounts that would have been paid by each member if all. eligible jurisdictions had become members of the Association, unless, by resolu- tion of its governing body, a member jurisdiction agrees to pay only for the period ending July 1, 1961, an amount exceeding that which would have been paid if all eligible jurisdictions had become members of the Association. 2. Agency to Administer the Agreement, The Association as constituted by this Agreement is designated as the agency to administer this Agreement. 3. Powers of Association. The Association shall have the power, in its own name, to make and enter into contracts, to employ agents and employees, to acquire, hold and dispose of property, and to incur debts, liabilities or obliga- tions necessary for the accomplishment of the purposes of this Agreement. The exercise by the Association of the power to sue or be sued in its own name shall be subject to the restrictions on the exercise of such power applicable to the County of Alameda. 4. Contributions and Payments. Contributions in the form of yearly membership assessments shall be made annually by the parties to this Agreement from the treasuries or other available public funds of the parties for the pur- pose of defraying the costs of providing the annual benefits accruing directly to each party from this Agreement. All such payments of public funds shall be paid to and disbursed by the Association, which shall be strictly accountable for all funds and responsible for reporting to the parties hereto concerning all receipts and disbursements. 5. Amendment. This Agreement may be amended at any time by the written agreement of all parties to it, or by amendment of the By -Laws in the manner provided therein. 2 6. Duration of Agreement.. This Agreement shall continue in effect until it is rescinded or terminated in the manner provided in t-he2By-Laws; provided, that the termination of the Agreement or withdrawal from membership in the Associa- tion by individual counties or cities shall not operate to terminate this Agree- ment. 7. Disposition of Property upon Termination. Upon termination of this Agreement any property acquired by the Association under this Agreement shall be distributed among the parties hereto in accordance with the respective contribu- tions of each of said parties to the cost of said property. 8. Disposition of Funds upon Termination. Upon termination of this Agreement any money in possession of the Association after the payment of all costs, expenses and charges validly incurred under this Agreement shall be re- turned to the parties in proportion to their contribution determined as of the time of termination, 9. Execution of Agreement. This Agreement shall be effective upon its execution by five (5) counties and forty-two (42) cities. Executed by the City _ of Palo Alto Juno , 1960 By/e be this 27th day AJ Mayor Attest (f/ City Cl rk • /1 ikze 3 • • 0 CITY OF PALO ALTO City of Palo Alto (ID # 12362) City Council Staff Report Report Type: Informational Report Meeting Date: 6/21/2021 Summary Title: Community and Economic Recovery Workplan (Update #2) Title: Second Progress Report on Palo Alto's Community and Economic Recovery Workplan From: City Manager Lead Department: Administrative Services This informational memorandum transmits updates for each of the eleven (11) work items in the Community and Economic Recovery Workplan as it was approved by the City Council on March 22, 2021. No action is required. It is anticipated that this report will be provided on a regular schedule in order to keep the City Council and the Community up to date on developments of the workplan. Additionally, individual items will continue to be brought forward to the City Council for discussion and action as appropriate to make progress on the workplan. More information on the City's Community and Economic Recovery Workplan can be found at www.cityofpaloalto.org/communityrecovery and information on upcoming events can be found at the City's calendar online here: https://www.cityofpaloalto.org/Home/Calendar Community and Economic Recovery Workplan Updates: Manage through the Pandemic a) Maintaining services while managing daily pandemic needs such as testing, contact tracing, exposures, and other tasks necessitated by COVID-19 is currently the highest need of the City. UPDATE: The local conditions related to COVID-19 have improved significantly since the last Community and Economic Recovery Update; infection rates have decreased as vaccination rates have increased. This has resulted in continued progression through the State's Blueprint for a Safer Economy; the County moved from Orange to Yellow tier between the last reporting period and this report. The Governor's Office has announced a retirement of the Blueprint and a reopening of California effective June 15 to resume usual activities without restrictions. As an employer, the City is required to comply with regulations mandated by California Occupational Safety and Health (Cal/OSHA), the County of Santa Clara, CDC and other entities that provide guidance applicable to the workplace. Staff will continue to monitor regulations, requirements, and guidance as they are issued by various regulatory bodies to ensure compliance as well as the health and safety of the workforce and community. City of Palo Alto Page 1 b) Continue high -volume public communications and enhanced community engagement on managing through the COVID-19 pandemic to the City and the Community. • • 0 • • 0 r r r r r r UPDATE: The frequency of the City's COVID-19 newsletter, which is sent to more than 50,000 followers, has changed from twice a week with special reports as needed, to once a week. Staff expects that cadence to continue. In June, the Coronavirus Report, the current weekly digital newsletter, will transition to be focused on community recovery; specifically connecting the community together to City service changes and programs; restaurant and retail opportunities; wellbeing, wellness and family resources; and community engagement and ways to get help or help those in need through volunteer opportunities. The goal will be to further the City's community recovery efforts and connect the whole community - residents, non -profits, public art opportunities, and business- together. Since the last reporting period, the following activities took place with enhanced communications to engage and inform the community: Wellness Wednesday event series continued, staff hosted a Budget Town Hall and launched a budget related online survey, a series of Asian American and Pacific Islander Heritage Month and race and equity events took place through May, and more race and equity events are scheduled in June and July. c) Provide an updated clear comprehensive Workplace Activation Plan (including remote staffing models) ($500k) UPDATE: The updated Workplace Activation Plan was submitted to the City Council as an informational item on April 5, 2021 as CMR 12161. A study session was also held with the City Council on June 1, 2021 in regards to the format of public meetings tentatively beginning in August 2021 where the Council affirmed direction to pursue necessary adjustments for a hybrid meeting with both in -person and remote capabilities for all participants. Santa Clara County Public Health required all to make a first round of self -certifications to confirm the vaccination status of employees by June 1. Employers are required to continue follow-up every 14 days for employees who reported their status as not vaccinated or declined to state. For this first round of reporting, 76% of the workforce responded, with 62% reporting their status as fully vaccinated. Human Resources staff are continuing to follow up, with a goal of obtaining 100% reporting. On June 3, the Board of Cal/OSHA acted to require employers to exempt vaccinated employees from masks and distancing in the workplace. If one employee in the work group is not vaccinated, all employees in the work group must continue wearing masks and distancing while indoors. Masks are not required at outdoor worksites, except for unvaccinated employees who are unable to maintain 6 -foot distance from others. These revised regulations take effect June 15 to coincide with the Governor's plan to drop the color coded tier system of restrictions for the general public. State officials and other agencies have acknowledged the difficulty on employers to monitor and enforce the revised rules. Cal/OSHA adopted several other workplace regulations that staff are reviewing to include in the City's workplace reactivation planning; as noted in Item A, staff will continue to monitor rules, regulations, and guidance as they are released to ensure the health and safety of the workforce and the community. City of Palo Alto Page 2 Community Wellness and Wellbeing d) Support Community Wellness and Wellbeing through development of a series of community events, presentations, and engagement opportunities e.g. Wellness Wednesdays • • 0 • • 0 r r r r r r UPDATE: As briefly discussed above, a full calendar of City events can be found on the City's website. As of this update, three Wellness Wednesdays have been held: Introduction to Mindfulness for adults and teens, and Earthquake Preparedness. These online events are held every third Wednesday of the month at 5:00 PM. A recording of each is available on the City's YouTube channel. The next event, Wellness Resources for Seniors, will be Wednesday June 16. Registration for the Wellness Wednesday series, as well as additional resources for the community to access, can be found here: http://www.cityofpaloalto.org/bewell. Other programs and events include a Summit on Women and Girls on June 12, movies in the park, and summer concerts. Summer camps begin in June offering a wide range of programs including art and science camps, sports, special interest, and Foothills camps. A community event to celebrate the Fourth of July is in development for July 4, from 11 AM to 3 PM at Mitchell Park and will feature the Radio City All Stars band, food trucks, and a kids play area. The Library's Summer Reading Program started June 1 and runs through September 8. The theme this year is "Reconnect With Your Community". The Library has a list of various programs, including weekly Wacky Wednesdays for kids and families, a few author events and more! Focused Business Support e) Continue, and further promote, Uplift Local and other retail supportive strategies UPDATE: The Uplift Local initiative is an effort to connect the community with outdoor activities. Several community -facing opportunities are currently underway including a monthly community -check in to hear from the community on their experience with the program and ArtLift, a series of art focused initiatives located throughout Palo Alto. More on this effort can be found here: https://viewer.mapme.com/cc87a9ff-ceaa-4f89-a05a-678fb335bf3c/ The City continues to engage with local businesses through monthly meetings with merchants from California Avenue, University Avenue, and hotel partners. Staff completed a vacancy assessment of downtown, California Avenue, Town and Country and Stanford Shopping Center. Point -in -time vacancy rates were approximately 16% for the California Avenue district, approximately 15% for the downtown district, approximately 11% for Stanford Shopping Center, and approximately 20% for Town and Country Village. Staff is conducting further point -in -time vacancy assessments along El Camino Real as well as the midtown district. This data, and other inputs, will help shape the future of Uplift Local programs as well as aid in formulating the recommended scope of economic development consulting work. In June the City Council will consider several actions to support economic recovery in business districts, including the plan for rescission of the City's Proclamation of Emergency as well as installation of advanced parking management infrastructure and convenient, fast electric vehicle charging infrastructure. City of Palo Alto Page 3 f) Provide technical support for workplace environmental upgrades to mitigate risks for local businesses 1 1 1 1 1 1 • • 0 • • 0 1 1 1 r r r r r r • • 0 r r r UPDATE: The City has proactively reached out to local businesses to facilitate indoor air quality improvements. The City's consultant that will provide technical support for workplace environmental upgrades has received 28 signed agreements for scheduling onsite consultations; expected to begin mid -June. Consultations can provide recommendations ranging from explaining the American Society of Heating, Refrigerating, and Air -Conditioning Engineers (ASHRAE) guideline of hourly fresh air circulations to optimizing Heating, Ventilating, and Air - Conditioning (HVAC) systems. Staff continues to use a variety of marketing tools to promote the program to local businesses with the goal of contacting as many of the commercial customers throughout the city for the entire program. g) Refine the scope and breadth of the City's economic support activities UPDATE: The City Council addressed this item through a discussion facilitated by the Good City Company on June 1, 2021. After discussing economic development and the potential range of options, the City Council directed staff to return to the City Council with a Request for Proposals for an economic development strategy consultant and an internal staffing plan to support connection to the business community with a focus on specific areas. Staff anticipates returning with the request for proposal and options for a scalable internal staffing plan to complement proposals after the City Council's summer break. City Priority Initiatives h) Further accelerate Fiber to the Home (FTTH) and pursue expanded community engagement UPDATE: On May 24, Staff and Magellan presented the fiber backbone expansion and FTTH business case to the City Council. The Council discussion focused on the importance of affordable, fast, reliable, and City -operated ISP broadband service at homes and businesses. Staff, UAC and Magellan recommend the City -operated ISP model with insource and outsource functions because it provides the City full control of pricing and customer experience and significantly higher financial return in the long-term. The FTTH business case assumes a take rate of 32%, which is conservative compared to a take rate of 42% for other municipal owned FTTH networks. Council unanimously approved (7-0) staff and Utilities Advisory Commission's recommendation to complete the detailed engineering design of the City's fiber backbone and FTTH distribution network; accelerate community education and engagement regarding FTTH; complete a residential and commercial broadband survey, and return to Council with a City -operated internet service provider (ISP) model and business plan to offer FTTH service. City of Palo Alto Page 4 Downtown redesign for cars, pedestrians, and bicycle travelers and visitors ($150k, design work only) • • 0 • • 0 • • 0 r r r r r r r r r UPDATE: As the City considers plans for reopening University Avenue and California Avenue to vehicular traffic (to be discussed by City Council on June 22), efforts are underway to evaluate updating the streetscape and activating public spaces to support vibrancy of these spaces. The City is developing potential shorter -term street configurations and improvements that would allow for flexible closure of blocks along University Avenue and provide additional outdoor space for businesses once the street is reopened to traffic. Staff is also looking into more attractive methods to close California Avenue, as closures for the Farmers Market will be ongoing and California Avenue restaurants will have the opportunity to provide outdoor parklet dining. Lastly, staff is preparing a Request for Proposals (RFP) to prepare conceptual designs and community engagement, including a potential design charrette, for University Avenue streetscape improvements by expanding pedestrian and outdoor spaces available for use by visitors and businesses. j) Exploration of potential ballot measures UPDATE: The Finance Committee will be discussing potential ballot measures on June 15, 2021 — subsequent to the release of this report. Potential ballot measures include options ranging from a business tax, which was previously discussed with the City Council prior to COVID-19, to other taxes, and options for raising revenue from specific uses such as affordable housing to funding general services. Staff hopes to narrow the range of options through discussion with the Finance Committee to ensure optimal use of limited staff resources in pursuit of potential ballot measures which will require additional contractual funding this calendar year. k) Research and return to Council with recommendations for updates to the Foothills Fire Management Plan and certain other measures, including a Foothills Fire Early Warning Systems (FFEWS). UPDATE: The Office of Emergency Services has prepared an Informational Report, CMR 12315, as part of the June 21 City Council packet. The report provides details and updates regarding wildland fire preparation, mitigation, and planning efforts from various departments (including the Office of Emergency Services, Fire, Police, Community Services, Utilities, Public Works, and Information Technology). The Report focuses on the Wildland Urban Interface (WUI) and wildfire but also touches on other hazards, which can be found in the community risk assessment. Staff anticipates returning to the City Council for discussion as well as regular updates through this CER Update as well as subsequent information about ongoing conditions, actions, and needs. City of Palo Alto Page 5 Legend As seen in the updates above, a stoplight symbol is displayed to the left of each individual work item. This indicator is meant to provide a visual indication of the status of each work item as described below. 0 • r r • Green — Progress on this work item is underway, consistent with what was described in the Community and Economic Workplan as adopted by the City Council. • Yellow — Progress on this work item is underway, but may have upcoming vulnerabilities or decisions that need to be made to impact future progress. • Red — Progress on this work item is not underway; this represents when work has stalled or encountered barriers that need to be overcome in order for work to continue. City of Palo Alto Page 6 CITY OE PALO ALTO City of Palo Alto (ID # 12384) City Council Staff Report Report Type: Informational Report Meeting Date: 6/21/2021 Summary Title: Private Tree Failure Report Title: Private Tree Failure at 2353 Webster Street From: City Manager Lead Department: Public Works Recommendation This report is intended to provide Council and the public with information about the failure of a private tree; no Council action is required. Background On Saturday, May 22, 2021, a mature Valley Oak (Quercus lobata) located in the rear yard of 2353 Webster Street suffered a failure of the entire canopy. This oak is a private tree and is not included in any City -maintained tree inventory database. It was the primary subject of an appeal of Director's Decision on an Individual Review application at the same address in 2020 (Report #11411). Construction work on the site had not yet begun at the time of the tree failure. Based on available pre -failure images, staff estimates the tree to have been approximately 60 feet tall and 40 feet wide with a 70 -inch trunk diameter measured at 54" above grade (DBH). The falling canopy of this tree damaged several nearby homes to varying degrees and caused a localized power outage when falling limbs damaged nearby electric lines. Photo 1 Photo 2 City of Palo Alto Page 1 Photos: Photo #1 shows remaining trunk and large limbs on the ground. Photo #2 shows remaining trunk and utility pole where outage occurred. Discussion An immediate City response was initiated on May 22 because falling limbs from the tree's canopy damaged nearby electric utility lines. On -call Public Works Department Urban Forestry staff were called out to assist Utilities Department staff in clearing the area to enact repairs. The tree's location was far enough away from the electric utility lines that it was not a part of the regular line clearance maintenance program. Despite being outside the line clearance maintenance zone, the tree's large size was sufficient to damage the utility when it failed. On Monday, May 24, staff began reviewing information and photos obtained from the on -call crew that responded to the failure. Based on photos and site visits to the scene, staff believes the failure began in the crown of the tree where scaffold limbs originated from the main trunk (25-30 feet above ground level). Several existing cavities were observed on the fallen scaffold limbs including a possible active beehive. A tree support cable was also observed. The cable that staff observed on the ground was broken. Photo 3 Photo 4 City of Palo Alto Page 2 Photos: Photo #3 shows cable and cavity present on scaffold limb. Photo #4 shows broken cable attachment. Staff also observed a large cavity on the main trunk approximately 10 feet above grade. This wound displayed extensive callus, indicating this was an older wound and that the tree was actively working to heal over the cavity. The cavity was filled with various plastic debris and sealed with a foam substance. There is no indication that this cavity was a primary factor in the recent failure. Photo 5 Photo 6 City of Palo Alto Page 3 Photos: Photo #5 shows foam sealant on old cavity wound. Photo #6 shows plastic debris that was filling cavity. Researching this property resulted in staff finding images from approximately 2018 that show the intact tree support cable spanning a large distance between limbs in the canopy. Photo 7 Photo #7 shows intact tree support cable in canopy. Staff believes the most probable initial cause of this failure was a broken limb from the upper canopy. This falling limb likely impacted additional limbs or possibly the intact tree support cable when falling, subjecting these other limbs to strong horizontal forces. This abrupt lateral movement could be strong enough to cause these limbs to fail in turn. The presence of multiple cavities in the upper limbs as well as the support cable make it more probable for a single upper City of Palo Alto Page 4 limb failure to trigger a cascading failure of the entire canopy. City of Palo Alto Page 5