HomeMy WebLinkAbout2022-12-05 City Council Agenda Packet1
City Council
Special Meeting
Monday, December 5, 2022
5:00 PM
Council Chamber & Virtual
AMENDED AGENDA
Pursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with the
option to attend by teleconference/video conference or in person. To maximize public safety
while still maintaining transparency and public access, members of the public can choose to
participate from home or attend in person. Information on how the public may observe and
participate in the meeting is located at the end of the agenda. Masks are strongly
encouraged if attending in person.
HOW TO PARTICIPATE
VIRTUAL PARTICIPATION
CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238)
Meeting ID: 362 027 238 Phone:1(669)900-6833
The meeting will be broadcast on Cable TV Channel 26, live on YouTube at
https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media
Center at https://midpenmedia.org.
TIME ESTIMATES
Time estimates are provided as part of the Council's effort to manage its time at
Council meetings. Listed times are estimates only and are subject to change
at any time, including while the meeting is in progress. The Council reserves
the right to use more or less time on any item, to change the order of items and/or
to continue items to another meeting. Particular items may be heard before or after
the time estimated on the agenda. This may occur in order to best manage the time
at a meeting or to adapt to the participation of the public.
REVISED PUBLIC COMMENTS
Public Comments will be accepted both in person and via Zoom for up to three
minutes or an amount of time determined by the Chair. All requests to speak
will be taken until 5 minutes after the staff’s presentation. Written public
comments can be submitted in advance to city.council@cityofpaloalto.org and
will be provided to the Council and available for inspection on the City’s
website. Please clearly indicate which agenda item you are referencing in your
email subject line.
PowerPoints, videos, or other media to be presented during public comment are
accepted only by email to city.clerk@cityofpaloalto.org at least 24 hours prior
to the meeting. Once received, the City Clerk will have them shared at public
comment for the specified item. To uphold strong cybersecurity management
practices, USB’s or other physical electronic storage devices are not accepted.
2 Special Meeting December 5, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for
public inspection at www.CityofPaloAlto.org.
CALL TO ORDER
SPECIAL ORDER OF THE DAY (5:00 -5:10 PM)
AA1. Neighbors Abroad Presentation: Sister City Mayor Ando of Tsuchiura,
Japan
STUDY SESSION (5:10 – 6:30 PM)
AA2. Study Session to Receive an Update on the Santa Clara County’s Effort
to Update the Stanford Community Plan.
CLOSED SESSION (6:30 – 8:00 PM)
Public Comments: Members of the public may speak to the Closed Session item(s); three minutes per
speaker.
1.CONFERENCE WITH LABOR NEGOTIATORS City Designated
Representatives: City Manager and his Designees Pursuant to Merit
System Rules and Regulations (Ed Shikada, Kiely Nose, Sandra Blanch,
Nicholas Raisch, Molly Stump, and Terence Howzell) Employee
Organization: Service Employees International Union, (SEIU) Local
521, Utilities Management and Professional Association of Palo Alto
(UMPAPA)Palo Alto Peace Officer’s Association (PAPOA), Palo Alto
Police Management Association (PMA), International Association of Fire
Fighters (IAFF) local 1319, Palo Alto Fire Chiefs Association (FCA), ;
Authority: Government Code Section 54957.6 (a)
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (8:30 – 8:50 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of
Oral Communications period to 30 minutes.
CONSENT CALENDAR (8:50 – 9:00 PM)
Items will be voted on in one motion unless removed from the calendar by three Council Members.
2.Adoption of a Resolution Authorizing Use of Teleconferencing for
Council Meetings During Covid-19 State of Emergency
3.Approval of a Professional Services Agreement With CLEAResult, Inc.,
for Residential Energy Efficiency and Electrification Advising, Rebate
Processing and Optional Heat Pump Water Heater Pilot Program
Administration for a Total Not-to-Exceed Amount of $2,940,400 for a
4-Year Term Through December 2026
Q&A
Presentation
3 Special Meeting December 5, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for
public inspection at www.CityofPaloAlto.org.
4.Approve Contract C23185850 With Thomas Sarsfield for a Not-To-
Exceed Amount of $395,000 for a Term of Three Years to Provide a
Tennis Recreation Program
5.Approval of the Acceptance of State of California Citizens Options for
Public Safety (COPS) Funds of $172,000 and a Budget Amendment in
the Supplemental Law Enforcement Services Fund (2/3 vote required)
6.Approval of the Office of the City Auditor's Fiscal Year (FY) 2023 Task
Orders
7.Adoption of a Resolution Declaring Weeds to be a Public Nuisance and
Setting February 27, 2023 for a Public Hearing for Objections to the
Proposed Weed Abatement (ITEM CONTINUED TO DECEMBER 19,
2022)
CITY MANAGER COMMENTS
ACTION ITEMS
Include: Reports of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Reports of Officials,
Unfinished Business and Council Matters.
8.Approval of a Construction Contract With Anderson Pacific Engineering
Construction (APEC) in the Total Amount of $161,846,500; Approval of
Three Amendments to Existing Agreements with: 1) Stanford
University, 2) East Palo Alto Sanitary District, and 3) Mountain View
and Los Altos; Approval of Amendment #2 to Contract Number
C19171565 with Brown & Caldwell to Add Services, to Increase
Compensation by $1,484,689 for a New Maximum Compensation Not-
to-Exceed $5,908,791, and to Extend the Contract Term through
March 31, 2028; Approval of Amendment #2 to Contract Number
C21176592C with Carollo Engineers to Add Construction Management
Services, to Increase Compensation by $8,237,021; approval of a
resolution to increase Clean Water State Revolving Fund financing to
$193,000,000; approval of a budget appropriation increasing revenue
and expenses; and approval of an exception to Debt Policy 1-65 for
the Secondary Treatment Upgrades Project (WQ-19001) at the
Regional Water Quality Control Plant. (9:00 – 9:30 PM)
9.PUBLIC HEARING / QUASI-JUDICIAL. 1700 Embarcadero Road [21PLN-
00191]: Consideration of a Site and Design Review, Design Enhance
Exception, Variance and Off-Street Loading Space Modification to Allow
the Demolition of a Vacant Restaurant and the Construction of a new
two-Story 31,000 Square Foot Automobile Dealership. The PTC and
the ARB Recommend Approval of the Project. Environmental
Assessment: Addendum to a Mitigated Negative Declaration. Zoning
Q&A
Public Letter
Public Letter
Presentation
Staff Presentation
Applicant Presentation
Presentation
4 Special Meeting December 5, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for
public inspection at www.CityofPaloAlto.org.
District: CS(D)(AD) Service Commercial (Site & Design Review /
Automobile Dealership Combining Districts). (9:30 – 10:30 PM)
10.Staff and the Council Sustainability and Climate Action (S/CAP) Ad Hoc
Committee Recommend That Council Review and Provide Feedback to
Staff on the Draft 2023-2025 S/CAP Work Plan and Direction on
Governance of the Work Plan (ITEM CONTINUED TO FUTURE DATE)
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS
Members of the public may not speak to the item(s)
ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for
action during this meeting’s agenda.
11.Annual Status Report on the Developer Impact Fees Schedule as of
June 30, 2022
OTHER INFORMATION
Standing Committee Meetings
Finance Committee Meeting December 6, 2022
Public Comment Letters
Schedule of Meetings
AMENDED AGEND ITEMS
Items that have been added/modified from the original publication of the agenda are listed below. Any
corresponding materials are appended to the end of the initial packet. If full items have been added to the Agenda,
they will be denoted with a number staring with AA, meaning Amended Agenda item.
AA1. Neighbors Abroad Presentation: Sister City Tsuchiura, Japan
AA2. Study Session to Receive an Update on the Santa Clara County’s Effort
to Update the Stanford Community Plan.
10.Staff and the Council Sustainability and Climate Action (S/CAP) Ad Hoc
Committee Recommend That Council Review and Provide Feedback to
Staff on the Draft 2023-2025 S/CAP Work Plan and Direction on
Governance of the Work Plan (ITEM CONTINUED TO FUTURE DATE)
10.Staff and the Council Sustainability and Climate Action (S/CAP) Ad Hoc
Committee Recommend That Council Review and Provide Feedback to
Staff on the Draft 2023-2025 S/CAP Work Plan and Direction on
Governance of the Work Plan (ITEM CONTINUED TO FUTURE DATE)
7.Adoption of a Resolution Declaring Weeds to be a Public Nuisance and
Setting February 27, 2023 for a Public Hearing for Objections to the
Proposed Weed Abatement(ITEM CONTINUED TO DECEMBER 19, 2022)
5 Special Meeting December 5, 2022
Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for
public inspection at www.CityofPaloAlto.org.
PUBLIC COMMENT INSTRUCTIONS
Members of the Public may provide public comments to teleconference meetings via
email, teleconference, or by phone.
1.Written public comments may be submitted by email to
city.council@cityofpaloalto.org.
2.Spoken public comments using a computer will be accepted through the
teleconference meeting. To address the Council, click on the link below to
access a Zoom-based meeting. Please read the following instructions
carefully.
A.You may download the Zoom client or connect to the meeting in-
browser. If using your browser, make sure you are using a current,
up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+,
Safari 7+. Certain functionality may be disabled in older browsers
including Internet Explorer.
B.You may be asked to enter an email address and name. We request
that you identify yourself by name as this will be visible online and will
be used to notify you that it is your turn to speak.
C.When you wish to speak on an Agenda Item, click on “raise hand.” The
Clerk will activate and unmute speakers in turn. Speakers will be
notified shortly before they are called to speak.
D.When called, please limit your remarks to the time limit allotted.
E.A timer will be shown on the computer to help keep track of your
comments.
3.Spoken public comments using a smart phone will be accepted through
the teleconference meeting. To address the Council, download the Zoom
application onto your phone from the Apple App Store or Google Play Store
and enter the Meeting ID below. Please follow the instructions B-E above.
4.Spoken public comments using a phone use the telephone number listed
below. When you wish to speak on an agenda item hit *9 on your phone so
we know that you wish to speak. You will be asked to provide your first and
last name before addressing the Council. You will be advised how long you
have to speak. When called please limit your remarks to the agenda item and
time limit allotted.
CLICK HERE TO JOIN Meeting ID: 362 027 238 Phone:1(669)900-6833
City of Palo Alto (ID # 14437)
Office of the City Clerk
City Council CAO Report
Meeting Date: 12/5/2022 Report Type: Consent Calendar
Title: Adoption of a Resolution Authorizing Use of Teleconferencing for Council
Meetings During Covid-19 State of Emergency
From: Lesley Milton, City Clerk
Recommendation
Adopt a Resolution (Attachment A) authorizing the use of teleconferencing under Government
Code Section 54953(e) for meetings of the Council and its committees due to the Covid-19
declared state of emergency.
Background
In February and March 2020, the state and the County declared a state of emergency due to
the Covid-19 pandemic. Both emergency declarations remain in effect.
On September 16, 2021, the Governor signed AB 361, a bill that amends the Brown Act,
effective October 1, 2021, to allow local policy bodies to continue to meet by
teleconferencing during a state of emergency without complying with restrictions in State
law that would otherwise apply, provided that the policy bodies make certain findings at
least once every 30 days.
AB 361, codified at California Government Code Section 54953(e), empowers local
policy bodies to convene by teleconferencing technology during a proclaimed state of
emergency under the State Emergency Services Act in any of the following
circumstances:
(A) The legislative body holds a meeting during a proclaimed state of emergency,
and state or local officials have imposed or recommended measures to
promote social distancing.
(B) The legislative body holds a meeting during a proclaimed state of emergency
for the purpose of determining, by majority vote, whether as a result of the
emergency, meeting in person would present imminent risks to the health or
safety of attendees.
2
Packet Pg. 6
Page 2
(C) The legislative body holds a meeting during a proclaimed state of emergency
and has determined, by majority vote, pursuant to subparagraph (B) (B), that,
as a result of the emergency, meeting in person would present imminent risks
to the health or safety of attendees. (Gov. Code § 54953(e)(1).)
In addition, Section 54953(e)(3) requires that policy bodies using teleconferencing reconsider
the state of emergency within 30 days of the first teleconferenced meeting after October 1,
2021, and at least every 30 days thereafter, and find that one of the following circumstances
exists:
1. The state of emergency continues to directly impact the ability of the
members to meet safely in person.
2. State or local officials continue to impose or recommend measures to
promote social distancing.
2
Packet Pg. 7
Page 3
Discussion
At this time, the circumstances in Section 54953(e)( 1)(A) exist. The Santa Clara County Health
Officer continues to recommend measures to promote outdoor activity, physical distancing and
other social distancing measures, such as masking, in certain contexts. (See August 2, 2021
Order.) In addition, the California Department of Industrial Relations Division of Occupational
Safety and Health (Cal/OSHA) has promulgated Section 3205 of Title 8 of the California Code of
Regulations, which requires most employers in California, including in the City, to train and
instruct employees about measures that can decrease the spread of COVID-19, including
physical distancing and other social distancing measures.
Accordingly, Section 54953(e)(1)(A) authorizes the City to continue using teleconferencing for
public meetings of its policy bodies, provided that any and all members of the public who wish
to address the body or its committees have an opportunity to do so, and that the statutory and
constitutional rights of parties and the members of the public attending the meeting via
teleconferencing are protected.
To comply with public health directives and promote public safety, Palo Alto policy bodies
have been meeting via teleconference since March 2020. On September 27, 2021, Council
considered the format for future Council, committee, and Board and Commission meetings.
Council determined that beginning November 1, 2021, Council meetings would be
conducted using a hybrid format that allows Council Members and the public to decide
whether to attend in person, following masking and distancing protocols, or participate via
teleconference. Council directed that Council standing and ad-hoc committees and Boards
and Commissions would continue meeting via teleconference through January 2022.
Adoption of the Resolution at Attachment A will make the findings required by Section
54953(e)(3) to allow the continued use of teleconferencing for Council meetings (for those
Council Members who elect to participate remotely) and for Council standing and ad hoc
committees. Each Board and Commission will consider and make similar findings.
ATTACHMENTS:
• Attachment2.a: Attachment A: Resolution Allowing Hybrid In-Person and
Teleconferenced Meetings under Section 54953(e) (PDF)
2
Packet Pg. 8
NOT YET APPROVED
Resolution No. ____
Resolution Making Findings to Allow Teleconferenced Meetings Under California Government
Code Section 54953(e)
R E C I T A L S
A. California Government Code Section 54953(e) empowers local policy bodies to convene
by teleconferencing technology during a proclaimed state of emergency under the State Emergency
Services Act so long as certain conditions are met; and
B. In March 2020, the Governor of the State of California proclaimed a state of emergency
in California in connection with the Coronavirus Disease 2019 (“COVID-19”) pandemic, and that state
of emergency remains in effect; and
C. In February 2020, the Santa Clara County Director of Emergency Services and the
Santa Clara County Health Officer declared a local emergency, which declarations were
subsequently ratified and extended by the Santa Clara County Board of Supervisors, and
those declarations also remain in effect; and
D. On September 16, 2021, the Governor signed AB 361, a bill that amends the Brown Act
to allow local policy bodies to continue to meet by teleconferencing during a state of emergency
without complying with restrictions in State law that would otherwise apply, provided that the
policy bodies make certain findings at least once every 30 days; and
E. While federal, State, and local health officials emphasize the critical importance of
vaccination and consistent mask-wearing to prevent the spread of COVID-19, the Santa Clara County
Health Officer has issued at least one order, on August 2, 2021 (available online at here), that continues
to recommend measures to promote outdoor activity, physical distancing and other social distancing
measures, such as masking, in certain contexts; and
F. The California Department of Industrial Relations Division of Occupational Safety and
Health (“Cal/OSHA”) has promulgated Section 3205 of Title 8 of the California Code of Regulations,
which requires most employers in California, including in the City, to train and instruct employees
about measures that can decrease the spread of COVID-19, including physical distancing and other
social distancing measures; and
G. The Palo Alto City Council has met remotely during the COVID-19 pandemic and can
continue to do so in a manner that allows public participation and transparency while minimizing
health risks to members, staff, and the public that would be present with in-person meetings while
this emergency continues; now, therefore,
2.a
Packet Pg. 9
NOT YET APPROVED
The Council of the City of Palo Alto RESOLVES as follows:
1. As described above, the State of California remains in a state of emergency due to the
COVID-19 pandemic. At this meeting, the Palo Alto City Council has considered the
circumstances of the state of emergency.
2. As described above, State and County officials continue to recommend measures
to promote physical distancing and other social distancing measures, in some
settings.
AND BE IT FURTHER RESOLVED, That for at least the next 30 days, meetings of the Palo Alto City
Council and its committees will occur in a hybrid format, where both members of the policy body
and members of the public may elect to be present in person, utilizing appropriate distancing and
masking practices, or participate by teleconferencing technology. Such meetings of the Palo Alto City
Council and its committees that occur using teleconferencing technology will provide an opportunity
for any and all members of the public who wish to address the body its committees and will
otherwise occur in a manner that protects the statutory and constitutional rights of parties and the
members of the public attending the meeting via teleconferencing; and, be it
FURTHER RESOLVED, That the City Clerk is directed to place a resolution substantially similar to this
resolution on the agenda of a future meeting of the Palo Alto City Council within the next 30 days. If
the Palo Alto City Council does not meet within the next 30 days, the City Clerk is directed to place a
such resolution on the agenda of the immediately following meeting of Palo Alto City Council.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
City Attorney City Manager
2.a
Packet Pg. 10
City of Palo Alto (ID # 14543)
City Council Staff Report
Meeting Date: 12/5/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of a Professional Services Agreement With CLEAResult, Inc.,
for Residential Energy Efficiency and Electrification Advising, Rebate
Processing and Optional Heat Pump Water Heater Pilot Program
Administration for a Total Not-to-Exceed Amount of $2,940,400 for a 4-Year
Term Through December 2026
From: City Manager
Lead Department: Utilities
Recommendation
Staff recommends that Council approve and authorize the City Manager or their designee to
execute a professional services agreement C23186588 (Linked Document) with CLEAResult
Consulting, Inc (CLEAResult) for:
1) free energy and water efficiency phone advising and home efficiency assessment
services for residential customers (the Home Efficiency Genie program),
2) residential rebate processing and support services, and
3) the option to provide turnkey installation services in support of the Advanced Heat
Pump Water Heater Pilot Program.
The total not-to-exceed (NTE) amount for the contract covering these services is $2,940,400
over a 4-year term through December 4, 2026.
Executive Summary
The Home Efficiency Genie (HEG) program is an existing, highly-rated Utilities program offering
efficiency and electrification advising and home assessment services to residential customers.
Staff recommends continuing the services offered by the HEG program because customers
know, like and trust the program. The program supports the City’s Sustainability and Climate
Action Plan (S/CAP) goals by providing Home Electrification Readiness Assessments to
residents. Staff also intends to expand the HEG program to provide customer intake for the
Advanced Heat Pump Water Heater (HPWH) Pilot Program.1 CLEAResult currently provides HEG
program services. Their contract ends December 31, 2022. On June 24, 2021, staff issued RFP
#181953 for services provided under the HEG program and other services, including
administrative support for the City’s rebate programs. The City received seven proposals that
1 Approved October 3, 2022 after continuation from September 27, 2022. See Staff Report 14606.
3
Packet Pg. 11
City of Palo Alto Page 2
addressed one or more of those services. Staff selected CLEAResult based on its experience, its
network of local trade allies (contractors), and its experience as the administrator for the
rebate platform of the Bay Area Regional Energy Network (BayREN), an efficiency resource for
nine San Francisco Bay Area counties. The contract that is the subject of this staff report covers
HEG program services, rebate processing and support services, and it also gives the City the
flexibility to call upon CLEAResult to provide turnkey HPWH installation services if issues arise
with the primary turnkey installation vendor or if additional contractors are needed to keep up
with the pace of Advanced HPWH Pilot program adoption.
Background
Home Efficiency Genie – Valued Program
The City of Palo Alto’s Home Efficiency Genie (HEG) program, administered by CLEAResult since
2015, is a well-established trusted advisor in the community, offering phone advising and home
assessment services to help residents with home efficiency and electrification improvements.
Residents can call “the Genie” for free phone advice to learn how to lower their utility bills and
improve the comfort and safety of their homes. The HEG program offers residents
City-subsidized home assessments, available either in-home or virtually, to identify efficiency
and electrification opportunities. All home assessments include a Home Electrification
Readiness Assessment, or HERA, which helps residents determine if their old gas appliances and
equipment are ready to be replaced and if their electric panel can support new, efficient
electric equipment alternatives. Customers who receive home assessments can also receive
post-assessment advising, including reviewing HERA or home efficiency reports, offering a list of
vetted contractors, assisting with evaluating contractor bids and providing general project
guidance. Follow-ups with customers indicate that 40% of home assessment participants
complete efficiency or electrification projects.
The HEG program is highly valued by participants, as demonstrated by responses to its
customer satisfaction surveys. The results of 96 surveys collected from program participants
show an average rating of 9.1 when customers are asked the question, “How likely are you to
refer us to a friend or colleague?” where 0 is not at all likely and 10 is extremely likely. This
question is known as a “Net Promoter Score” question, and responses can be used to calculate
a Net Promoter Score (NPS) value. The NPS value is calculated by subtracting the percentage of
“Detractors” (those scoring from 0 to 6) from the percentage of “Promoters” (those scoring 9 or
10). NPS values can range from -100 to 100, and the creators of the NPS rating system (Bain &
Company) suggest that any score above 0 is good, above 20 is favorable, above 50 is excellent,
and above 80 is world class.2 The responses from HEG survey results translate to an NPS value
of 78. As further evidence of the program’s value, a 2018 RKS survey of City of Palo Alto Utilities
(CPAU) customers showed that HEG customers had a higher overall satisfaction with CPAU than
non-HEG customers (Staff Report #10596, Appendix D).
2Description of Net Promoter Score by Qualtrics, provider of customer experience tools.
3
Packet Pg. 12
City of Palo Alto Page 3
On October 3, 2022 (after continuation from September 27, 2022), Council approved an
Advanced HPWH Pilot program, featuring turnkey (start-to-finish) installation by a City-provided
contractor, as well as a low up-front cost and an option for on-bill financing (Staff Report
14606). The program has a goal of installing 1000 heat pump water heaters within one year. On
October 3, 2022 Council also approved a contract with a third-party vendor (Synergy Company)
to provide turnkey HPWH installation services (Staff Report #14542).3 While the Synergy
contract provides installation services, the program also requires customer intake services,
which Synergy is not providing. These customer intake services include speaking with individual
residents to determine their eligibility for the program, helping residents apply for site
assessments, performing a friendly hand-off to the turnkey installer, and tracking data for both
customers who participate in the program and those who do not. As a trusted advisor, the HEG
program administrator is well positioned to provide these customer intake services.
Discussion
The City’s contract with CLEAResult as a provider of HEG program services has a term end date
of December 31, 2022 and in early 2021 staff drafted a Request for Proposals (RFP) to provide
these and other residential efficiency and electrification services. Council’s strong support of
climate action activities at the April 19, 2021 City Council meeting reinforced staff’s inclusion of
elements such as turnkey installation of home efficiency and electrification services in the RFP.
In addition, while internal staff currently process all residential customer rebates, rebate
administration services were also included as part of the RFP to support possible expansion of
rebates to a broader range of home efficiency and electrification measures.
Solicitation Process
On June 24, 2021 staff issued the RFP noted above and described in Staff Report #14542. Staff
selected CLEAResult to provide phone advising and rebate administration services based on
their team’s extensive experience providing home efficiency and electrification advisory
services as well as their network of local trade allies, which they could tap for recommending
contractors to residents. In addition, staff selected CLEAResult based on its experience as the
administrator for the rebate platform of the Bay Area Regional Energy Network (BayREN), an
efficiency resource for nine Bay Area counties. Vendors selected as part of the competitive RFP
process received intent to award letters in November 2021, but contract negotiations did not
begin in earnest until June 2022, after the stakeholder engagement process led by the Council
Ad Hoc S/CAP Committee narrowed the near-term priorities for S/CAP implementation.
Table 1: Information related to City-issued request for proposals (RFP) #181953
for residential program services.
3 City of Palo Alto City Council Action Minutes October 3, 2022
3
Packet Pg. 13
City of Palo Alto Page 4
PROPOSAL DESCRIPTION/
NUMBER
IMPLEMENTATION OF 3RD PARTY ENERGY AND WATER
EFFICIENCY AND ELECTRIFICATION PROGRAMS FOR
RESIDENTIAL, LOW-INCOME, AND MULTIFAMILY
CUSTOMERS / RFP #181953
Proposed Program Length 36 months, with two possible 12-month extensions
Number of Notices Sent to Vendors via
City’s Procurement System (Planetbids) 1,733
Number of Packages Downloaded by
Vendors 25
Total Days to Respond to RFP 34
Number of Proposals Received for
Category 1 7
The following categories of programs and services are included in this CLEAResult contract
scope:
A. Home Efficiency Genie Program
B. Residential rebate services
C. Turnkey Installation Program
Task A: Home Efficiency Genie Program
Administering the Home Efficiency Genie program involves providing energy and water advising
and home assessment services.
Energy and water advising
Phone advising is a key component of the current HEG program, providing free guidance to
customers with questions about how to reduce their greenhouse gas (GHG) emissions, lower
their utility bills, or proceed with energy efficiency and building electrification projects. This
contract adds advising specifically targeted to help low-income customers, helping increase
their awareness of programs for income-qualified customers and assisting them with program
application processes.
In addition to providing support for income-qualified customers, phone advising services are
being expanded to include specific support for the Advanced HPWH Pilot program. The call to
action for customers interested in participating in the program will be to “Call the Genie,” and
the Genie will serve the important role as a trusted advisor and first point of contact, speaking
with residents to determine their eligibility, helping them apply for site assessments,
performing a friendly hand-off to the turnkey installer, and tracking data for both customers
who participate in the program and those who do not. The Genie will also help customers
determine whether they are eligible for financing programs, including on-bill financing that is
part of the Advanced HPWH Pilot program, and the Genie will educate customers on financing
terms and conditions.
3
Packet Pg. 14
City of Palo Alto Page 5
The consultant will be compensated for energy and water advising services based on hourly
rates included in Exhibit C (“Compensation”) of the contract, up to a not to exceed amount of
$250,000 annually. The $250,000 annual budget for energy and water advising services
accounts for the addition of case management services plus an expected increase in general
inquiries as the City steps up its outreach efforts on sustainability. The budget also covers
maintenance of a network of trade allies, a service designed to provide customers with
qualified and vetted contractors. A separate advising budget also based on the hourly rates in
Exhibit C, not to exceed $270,000 spanning the entire term of the contract, is allocated
specifically for the Advanced HPWH Pilot program. This budget applies to customer intake
services, assuming roughly 2 to 3 hours per customer for 1000 HPWH customers, including time
spent supporting the program’s data management activities.
Home efficiency and electrification assessments
The HEG program offers three types of home assessments: 1) Virtual; 2) In-Home; and 3)
Advanced In-Home. Virtual and In-Home Assessments give customers an initial idea of
efficiency improvement opportunities, types of electric equipment they could consider (e.g.,
HPWH, heat pump space heating, electric vehicle charging, etc.), and projects they could
complete without an electric panel upgrade. Advanced In-Home Assessments build upon Virtual
and In-Home Assessments, adding diagnostic tests that provide customers with more robust
efficiency and building electrification recommendations. This added information is helpful for
customers who want to understand their home’s existing performance and how that
performance would improve with the implementation of building envelope improvement
projects. Advanced In-Home Assessment reports also include sizing of space heating, ventilation
and air conditioning (HVAC) equipment with and without building envelope improvements. This
information helps customers right-size HVAC equipment, potentially saving them money and
improving comfort. Understanding the existing and potential power needs for residential space
heating and cooling is also useful for staff planning the City’s electric distribution system
upgrades.
All three types of home assessments would provide customers and the City with an inventory of
customers’ existing gas equipment, electric equipment load and electric panel size. Data
provided to the City could be combined with the City’s Graphical Information System (GIS)
platform and used along with maps of the electric distribution system capacity to identify areas
for targeted marketing of ongoing electrification and energy efficiency programs. Perhaps more
importantly, though, the information provided by home assessments offered as part of this
CLEAResult contract serves an important role in bridging the gap between electrifying 1000
water heaters through the Advanced HPWH Pilot program and fully electrifying all the roughly
15,000 single-family homes in Palo Alto. Each home is unique, and each will need a plan for
electrification laying out which equipment choices make the most sense for that specific home
and its residents. Virtual and In-Home Assessments provide a starting point for building such a
plan, and Advanced In-Home Assessments can provide a complete picture of equipment
needed to fully electrify the home.
3
Packet Pg. 15
City of Palo Alto Page 6
The budget for home assessment services assumes roughly 20 assessments per month, split
among the three types of assessments. One goal is to accommodate potential block-by-block
electrification as grid modernization progresses. Oftentimes eight homes share a single 25kVA
transformer; thus, the City may choose to offer Advanced In-Home Assessments to groups of
eight homes over a short time period.
Task B: Residential Rebates
Incentives for home efficiency and electrification measures bring multiple benefits, including
the following:
• They can be a focal point for raising awareness of the City’s sustainability goals
• They support early adopters of building electrification and home efficiency
• They can serve as a “staging ground” for a possible next turnkey installation offering, if
turnkey installation is found to be viable through the Advanced HPWH Pilot program
• Building envelope rebates help tell the story of being grid friendly and enable customers
to save money and right-size space heating and cooling equipment
Residential Rebate Program Services included as part of this CLEAResult contract support the
City’s residential rebate program through three primary categories of work:
1. Development of a rebate measure list
2. Support for residential rebate program, e.g., rebate processing
3. Development of a Rebate Administration Platform
Development of a rebate measure list
In recent years, the number of residential rebates offered has been reduced significantly
because cost-effective rebate levels, particularly for gas-reducing measures, dropped
precipitously with the price of natural gas.4 Staff is planning to revise the methodology for
determining rebate levels – basing the selection of rebates on cost effectiveness of avoiding
emissions – and to increase the suite of rebates offered. Through this CLEAResult contract, the
City can call upon CLEAResult to provide energy and emissions savings values for a list of home
efficiency and electrification rebate measures provided by staff. Staff can then use the savings
information to develop a new list of customer rebates.
Support for residential rebate program
Currently, internal staff process residential rebates, except for those for water measures, which
are processed through the City’s partnership with Valley Water (Staff Report #14384). Staff can
process up to 20 rebates per month internally with existing resources. Above that level,
external resources may be needed, and these services are included as part of this contract. This
4 Cost effective rebates are rebates that cost the utility less than the cost of purchasing the amount of energy
saved by the rebate measure. A challenge of providing cost-effective rebates for home efficiency measures (e.g.,
attic insulation) in recent years has been the low cost of gas, combined with the relatively small amount of
achievable energy savings because of Palo Alto’s mild climate. Staff is examining evaluating all rebates in terms of
the cost per metric ton of GHG emissions avoided as an alternate cost effectiveness test.
3
Packet Pg. 16
City of Palo Alto Page 7
contract gives the City the option to call upon CLEAResult staff to review and approve rebate
applications and process the applications using the Energy Efficiency Collaboration Platform
(EECP) that the City is currently using to manage its rebate program data.
Development of a Rebate Administration Platform
If the City determines for any reason that it wishes to discontinue use of the database platform
it is currently using to manage residential rebate program data, CLEAResult can be called upon
at the City’s discretion through services described in this contract to develop a Rebate
Administration Platform similar to the rebate platform that CLEAResult developed for BayREN.
Additional Services
Budget for Additional Services is included to account for possible higher-than-expected demand
for phone advising or home assessment services.
Task C: Turnkey Installation Program
The Advanced HPWH Pilot program (described in detail in Staff Report #14606) is a key first
step in advancing the City towards meeting its climate action goals. This contract gives the City
the flexibility to call upon CLEAResult to provide turnkey installation services as a backup for the
primary turnkey installation vendor or if additional contractors are needed to keep up with the
pace of Advanced HPWH Pilot program adoption. Staff selected CLEAResult to provide these
optional services because CLEAResult has a California Contractors State License Board (CSLB)
general contractor's license allowing them to manage a broad range of sub-contractors, and
they have extensive familiarity with local electrification contractors through their oversight and
management of over 150 contractors in the BayREN regional program.
The $500,000 designated in this contract towards providing optional turnkey installation
services in support of the Advanced HPWH Pilot program are not in addition to the budget for
turnkey installation services included in the recently approved contract with Synergy Company
for providing these services (Staff Report #14542). Both use the same budget sources, which
are described in Staff Report #14606 and are meant to fund 1000 heat pump water heater
installations, regardless of which contractor does the installation. The $500,000 contract limit
proposed for the CLEAResult contract would enable CLEAResult to install about 20 HPWHs per
month for roughly two to three months in the event the City needed to call on them to do
installations. This $500,000 would allow enough money for CLEAResult to temporarily do
installations while a contract amendment to add funds to the contract is completed in the
event turnkey installation is shifted to CLEAResult.
Resource Impact
The contract limits for the various tasks are shown in Table 2 below:
Table 2: Total Compensation Not to Exceed (NTE) Amounts
Task Subtasks Year 1
NTE
Year 2
NTE
Year 3
NTE
Year 4
NTE
Total
NTE
3
Packet Pg. 17
City of Palo Alto Page 8
Task A:
Home
Efficiency
Genie
Program
Energy and Water
Advising Services,
Marketing, and
Trade Ally
Management a
$250,000 $250,000 $250,000
$250,000
$1,000,000
Advanced Heat
Pump Water
Heater Pilot
Advising Services b
$270,000 $270,000
Home Efficiency
and Electrification
Assessments b
$160,000 $160,000 $160,000 $160,000 $640,000
Task B:
Residential
Rebate
Program
Services
Residential Rebate
Eligible Measure
List c
$7,500 $7,500
Residential Rebate
Program Support a $50,000 $50,000 $50,000 $50,000 $200,000
Rebate
Administration
Platform
Development c
$75,700 $75,700
Residential Rebate
Administration
Platform Technical
Services d
$11,800 $11,800 $11,800 $11,800 $47,200
Task C:
Turnkey Installation Program e $500,000 $500,000
Total Task A-C NTE $2,740,400
Additional Services f $50,000 $50,000 $50,000 $50,000 $200,000
Maximum Total NTE $2,940,400
a Consultant is compensated for advising services, Trade Ally management, and residential rebate program support based on
hourly rates provided in Exhibit C, “Compensation,” of the contract.
b Consultant is compensated for Home Assessments on a per-completed-assessment basis and according to pricing provided in
Exhibit C, “Compensation,” of the contract.
c This is a fixed-cost item for work that will commence at City’s discretion, where the cost may not exceed that listed in Table C-
1, Exhibit C, “Compensation,” of the contract.
d This is an annual fee, for work that will commence at City’s discretion.
e Consultant is compensated for turnkey installation services on a per-unit-installed basis, where the work included is described
in Table C-4 of Exhibit C, “Compensation,” of the contract. Work related to this task will commence at City’s discretion.
f Additional Services is to cover higher-than-expected demand for advising and home assessment services.
Spending authority to cover the first year of Tasks A, B and additional services of the CLEAResult
3
Packet Pg. 18
City of Palo Alto Page 9
agreement (HEG program and residential rebate services), which is $875,000 if all one-time
expenses are incurred in Year 1, is available in the FY 2023 Adopted Operating Budget of the
Electric, Gas and Water Funds. Funding will come from five sources: Electric Public Benefits5,
Gas and Water Efficiency funds6, Electric Cap and Trade funds7, and the Electrification Loan
Reserve funds approved on October 3, 2022 (Staff Report #14606). Table 3 shows funding from
each revenue source for FY 2023.
Table 3: Funding Sources for Year 1 Contract Budget, Tasks A, B and Additional Services
FY 2023 Funding Source Year 1 NTE
Electric Public Benefits $385,000
Gas Efficiency $110,000
Water Efficiency $30,000
Electric Cap & Trade $80,000
Electrification Loan Reserve $270,000
Total $875,000
Spending authority to cover Task C of this contract, turnkey installation for the Advanced Heat
Pump Water Heater Pilot, was approved on October 3, 2022 (Staff Report #14606, Section 3,
Resource Impact Section, and Attachment B Sections 5-8). Funding for future years is
contingent upon Council’s approval through the annual budget process.
Policy Implications
The proposed contract supports the Council-approved Sustainability Plan, the Council-approved
Ten-year Energy Efficiency Targets, Comprehensive Plan Goals N4.2.1 (educate customers on
efficient water use), N7.4.2 (implement cost effective energy efficiency programs for all
customers) and N7.7.2 (explore the transition of existing buildings from gas to electric or solar
water and space heating). The contract also furthers the Utilities Strategic Plan Collaboration
priority (Strategy 1, increasing communication and engagement with the community.
Stakeholder Engagement
The City issued the Request for Proposal (RFP) on June 24, 2021, for third-party energy and
water efficiency and electrification program services for residential customers. Proposal
submission deadline was on July 28, 2021. Stakeholder engagement for the Advanced Heat
5 Electric Public Benefit funds are collected via a state-mandated (Public Utilities Code section 385) public benefit
surcharge with revenues required to fund any of these four program areas: (i) cost effective energy efficiency and
energy conservation programs; (ii) renewable energy resources and technologies; (iii) electricity-related research,
development, and demonstration projects; and (iv) low-income customer assistance.
6 An average of 1% of natural gas and water utility funds are used for gas and water public benefit and
conservation programs.
7 Electric Cap and Trade funds are auction proceeds resulting from the sale of free allowances allocated to the City
under the State's Cap and Trade Program and must be spent on greenhouse gas emissions reducing activities like
building electrification.
3
Packet Pg. 19
City of Palo Alto Page 10
Pump Water Heater Program is discussed in the Stakeholder Engagement section of the
September 27, 2022 study session staff report (Staff Report #14606)
Environmental Review
Approval of the attached agreement does not meet the definition of a project under the
California Environmental Quality Act (CEQA), pursuant to the California Public Resources Code
Section 21065, because it is not an activity that will cause a direct physical change in the
environment. In the alternative, Council’s approval of this agreement is exempt from review
under CEQA Guidelines Section 15302, as replacement of existing facilities, and Section 15308,
as an action taken for the protection of the environment.
Attachments:
• Attachment3.a: Attachment A: C23186588 Contract
3
Packet Pg. 20
Professional Services Rev. Dec.15, 2020 Page 1 of 62
CITY OF PALO ALTO CONTRACT NO. C23186588 AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALO ALTO AND CLEARESULT CONSULTING INC. This Agreement for Professional Services (this “Agreement”) is entered into as of the 5th day of December, 2022 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California
chartered municipal corporation (“CITY”), and CLEARESULT CONSULTING, INC., a Texas
Corporation, located at 6504 BridgePoint Parkway, Suite 425, Austin, TX 78730. (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein
by this reference: RECITALS A. CITY intends to award a contract for (the “Project”) and desires to engage the consultant to provide residential CPAU natural gas, electric, and water customers with building
electrification (BE) (defined as the replacement of natural gas equipment for space heating, water
heating, cooking and clothes drying with efficient electric alternatives), energy efficiency (EE) and/or water efficiency (WE) programs and services, to promote voluntary adoption of EE, WE, and BE upgrade projects in the residential sector (the “Services”, as detailed more fully in Exhibit A).
B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services.
C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide
the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows:
SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY.
SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through December 4, 2026 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.
SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 21
Professional Services Rev. Dec.15, 2020 Page 2 of 62
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 Two Million Seven Hundred Forty Thousand Four Hundred Dollars ($2,740,400.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.
Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-
to-exceed compensation amount of Two Hundred Thousand Dollars ($200,000) 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 Forty Thousand Four
Hundred Dollars ($2,940,400.00), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional
Services up to the maximum amount of compensation set forth for Additional Services in
this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in
substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK
ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit
C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed
Task Order shall become part of this Agreement. The cumulative total compensation to
CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 22
Professional Services Rev. Dec.15, 2020 Page 3 of 62
authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement.
SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly
invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C. If applicable, the invoice shall also describe the percentage of
completion of each task. The information in CONSULTANT’s invoices shall be subject to
verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice.
SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed
by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT
represents that it, its employees and subcontractors, if any, have and shall maintain during the term
of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work
throughout California under the same or similar circumstances.
SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to
perform Services under this Agreement, as amended from time to time. CONSULTANT shall
procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs,
including, but not limited to, increases in the cost of Services, arising from or caused by
CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions.
SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works
project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY
approved recommendations, and revise the design to meet the Project budget, at no additional cost
to CITY. SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 23
Professional Services Rev. Dec.15, 2020 Page 4 of 62
that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status
with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY
pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar
responsibilities related to CONSULTANT’s performance of the Services, or any agent or
employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s
provision of the Services only, and not as to the means by which such a result is obtained.
SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s
obligations hereunder without the prior written approval of the City Manager. Any purported
assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties.
SECTION 12. SUBCONTRACTING. Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City
Manager or designee. In the event CONSULTANT does subcontract any portion of the work to
be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY
agrees that subcontractors may be used to complete the Services. The subcontractors authorized
by CITY to perform work on this Project are: CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning
compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts
and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Alex Scott,
180 Grand Ave Suite 850, Oakland, CA 94612, Telephone: 504-717-9171, Email:
Alex.Scott@clearesult.com 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
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 24
Professional Services Rev. Dec.15, 2020 Page 5 of 62
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 Scott Mellberg, Utilities Department, Resource Management Division,
250 Hamilton Ave., Palo Alto, CA, 94301 Telephone: (650) 329-2659, Email:
Scott.Mellberg@CityofPaloAlto.org . CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time.
SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without
limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights
which arise from creation of the work product pursuant to this Agreement are vested in CITY, and
CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the
suitability of the work product for use in or application to circumstances not contemplated by the
Scope of Services. SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4)
years from the date of final payment, CONSULTANT’s records pertaining to matters covered by
this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the
completion of any audit hereunder, whichever is later.
SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify,
defend and hold harmless CITY, its Council members, officers, employees and agents (each an
“Indemnified Party”) from and against any and all 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
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 25
Professional Services Rev. Dec.15, 2020 Page 6 of 62
require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement.
16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement.
SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under
this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or
remedy will preclude any other or further exercise of any right or remedy.
SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in
full force and effect during the term of this Agreement, the insurance coverage described in Exhibit
D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies.
18.2. All insurance coverage required hereunder shall be provided through
carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY
as an additional insured under such policies as required above.
18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary
coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except
after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s
receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates
evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be
construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification
provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 26
Professional Services Rev. Dec.15, 2020 Page 7 of 62
such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES.
19.1. The City Manager may suspend the performance of the Services, in whole
or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of
termination. Upon receipt of any notice of suspension or termination, CONSULTANT will
discontinue its performance of the Services on the effective date in the notice of suspension or termination. 19.2. In event of suspension or termination, CONSULTANT will deliver to the
City Manager on or before the effective date in the notice of suspension or termination, any and
all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials).
19.3. In event of suspension or termination, CONSULTANT will be paid for the
Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services
provided in material conformity with this Agreement as such determination is made by the City
Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30.
19.4. No payment, partial payment, acceptance, or partial acceptance by CITY
will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES.
All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk
City of Palo Alto
Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager
To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 27
Professional Services Rev. Dec.15, 2020 Page 8 of 62
CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST.
21.1. In executing this Agreement, CONSULTANT covenants that it presently
has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this
Agreement, it will not employ subcontractors or other persons or parties having such an interest.
CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any
conflict arises.
21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the
Political Reform Act of 1974, as amended from time to time.
SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended
from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not
discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section
2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the
penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans
Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to
the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate
against persons with disabilities in the provision of services, benefits or activities provided under
this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby
incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and,
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 28
Professional Services Rev. Dec.15, 2020 Page 9 of 62
third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports,
and public education materials, shall be double-sided and printed on a minimum of 30% or greater
post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in
accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended
Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from
the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a
calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in
accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the
event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal
year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement.
SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS.
26.1. Portions of the Project performed at multifamily properties are subject to prevailing wages and related requirements as “public works” under California Labor Code Sections 1720 et seq. and related regulations. CONSULTANT is required to pay general prevailing wages for rehabilitation and installation work performed at multifamily and any other non-exempt properties, as defined in California Labor Code Section 1773.1 and
Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended
from time to time. Pursuant to Labor Code Section 1773, the CITY has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 29
Professional Services Rev. Dec.15, 2020 Page 10 of 62
the State of California Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the CITY’s Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, web site (see e.g. http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. CONSULTANT
shall post a copy of the general prevailing wage rates at all Project job sites and shall pay the
adopted prevailing wage rates as a minimum. CONSULTANT shall comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq.), including but not limited to Sections 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations, including
but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et
seq. (8 CCR Section 16000 et seq.), as amended from time to time. CONSULTANT shall comply with the requirements of Exhibit E, entitled “DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS”, for any contract for public works construction, alteration, demolition, repair or maintenance, including but not limited to the obligations to register with, and furnish certified
payroll records directly to, DIR.
SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public
improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code
Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. This Project is not a 9204 Public Works Project.
SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential
Information in strict confidence, not disclose it to any third party, and will use it only for the
performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its
employees, agents and subcontractors, if any, to the extent they have a need to know in order to
perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement.
28.2. “Confidential Information” means all data, information (including without
limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that
CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it
was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 30
Professional Services Rev. Dec.15, 2020 Page 11 of 62
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
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.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 31
Professional Services Rev. Dec.15, 2020 Page 12 of 62
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 D: INSURANCE REQUIREMENTS EXHIBIT E: DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS
EXHIBIT F: INFORMATION PRIVACY POLICY
EXHIBIT G: CYBERSECURITY TERMS AND CONDITIONS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 32
Professional Services Rev. Dec.15, 2020 Page 13 of 62
CONTRACT No. C23186588 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written.
CITY OF PALO ALTO
____________________________
City Manager
APPROVED AS TO FORM: __________________________ City Attorney or designee
CLEARESULT CONSULTING INC. Officer 1
By:__________________________________ Name:_______________________________
Title:________________________________
Officer 2
By:__________________________________
Name:_______________________________ Title:________________________________
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
SVP West
Kecia Davison
Chet Kwasnisk
CFO
3.a
Packet Pg. 33
Professional Services Rev. Dec.15, 2020 Page 14 of 62
EXHIBIT “A” SCOPE OF SERVICES The City of Palo Alto (“CITY”) has adopted an aggressive greenhouse gas (“GHG”) emissions
reduction goal of reducing emissions to 80% below 1990 levels by 2030. To meet its sustainability
goals, the City is encouraging residential City of Palo Alto Utilities (“CPAU”) customers and building owners to pursue cost-effective efficiency savings and building electrification to reduce the use of natural gas.
The City seeks to provide residential CPAU natural gas, electric, and water customers with
building electrification (BE) (defined as the replacement of natural gas equipment for space heating, water heating, cooking and clothes drying with efficient electric alternatives), energy efficiency (EE) and/or water efficiency (WE) programs and services. A goal of these programs and services is to promote voluntary adoption of EE, WE, and BE upgrade projects in the
residential sector through incentives, advising, technical assistance, planning tools, and other
innovative means. CONSULTANT will leverage its residential demand side management program implementation expertise and experience to deliver the following programs and services to
residential customers within the City of Palo Alto:
I. The Home Efficiency Genie Program II. Residential Rebate Services
III. Turnkey Installation Program I. OVERVIEW OF HOME EFFICIENCY GENIE PROGRAM
The Home Efficiency Genie Program (“HEG Program”) is an EE, WE, and BE assessment and
advising program for single-family and multifamily CPAU customers, including renters. Consultant will provide HEG Program technical assistance via three program elements: 1) Energy and Water Advising;
2) Home Efficiency and Electrification Assessments (“Home Assessments”);
3) Contractor or Trade Ally Management.
Consultant will serve 4 categories of residential customers through the HEG Program:
1) General Inquiry Customers: customers that have not completed a Home Assessment.
2) Home Assessment Customers: customers that are enrolled to complete a Home Assessment and have executed a Home Assessment Agreement; 3) Case Management Customers: customers that meet the income criteria defined by the CITY’s Rate Assistance Program (“RAP”) or other applicable criteria to participate in
CITY, State, or Federal assistance programs;
4) Advanced Heat Pump Water Heater Pilot (“AHPWHP”) Program Customers: customers that have expressed interest in replacing their gas water heater with an electric heat pump water heater (“HPWH”), or customers participating in the City’s AHPWHP Program.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 34
Professional Services Rev. Dec.15, 2020 Page 15 of 62
A. Energy and Water Advising CONSULTANT will provide phone and email-based advising and EE, WE, and BE project support to residential customers. Energy and Water Advising will be an entry point to enroll customers in Home Assessments and CITY’s residential sustainability and electrification
programs, with the ultimate goal of reducing residents’ building and transportation emissions.
CONSULTANT may also provide supporting services to optimize the HEG program.
B. Home Assessments
CONSULTANT will offer and provide Home Assessment Customers with 3 types of Home Assessments: Virtual, In-Home, and Advanced In-Home, as described in Table A-1. During In-Home and Advanced In-Home Assessments, CONSULTANT will provide CITY customers with an Energy and Water Efficiency Toolkit (“Efficiency Toolkit”), which may include items such as
faucet aerators, high-efficiency showerheads, smart power strips, and LED lightbulbs. After the
Home Assessment, CONSULTANT will provide customers with a Home Assessment Report, which documents the Home Assessment findings. With Virtual and In-Home Assessments, CONSULTANT will offer customers an analysis of EE
improvement opportunities and of whether they would need an electric panel upgrade as part of
installing various BE projects. The Virtual and In-Home Assessments would also provide customers and CITY with an inventory of customers’ existing gas equipment, electric panel size, and existing electric equipment load.
The Advanced In-Home Assessment builds upon Virtual and In-Home Assessments.
CONSULTANT will perform diagnostic tests with the Advanced In-Home Assessment to provide customers with more targeted EE and BE recommendations, include sizing of space heating and cooling equipment with and without EE improvements.
Table A-1 – Overview of Home Assessments
Virtual In-Home Advanced In-Home
Description The Virtual Home Assessment uses an interactive smart phone
platform that allows CONSULTANT to visit the home virtually.
The In-Home Home Assessment includes an in-person visit by
CONSULTANT to the customer’s home.
The Advanced In-Home Home Assessment provides the same
services as the In-Home Assessment with additional features. Services Provided • Review conditions of the home
• Review comfort and
energy use concerns
• Document existing equipment and opportunities for equipment upgrades
• Review Home Assessment Report
• Includes all services provided in Virtual Assessment
• Includes firsthand and comprehensive review of existing equipment
• Includes Efficiency Toolkit
• Includes all services provided in In-Home Assessment
• Includes diagnostic
testing including blower door test, duct system pressure test, and infrared camera
scans where
applicable
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 35
Professional Services Rev. Dec.15, 2020 Page 16 of 62
Key Differentiators • No Efficiency
Toolkit
• Because the assessment is performed virtually,
comprehensive
equipment data may not be available
• Offers one-on-one
engagement with homeowner as CONSULTANT performs Assessment
• Offers diagnostic
testing services to inform equipment sizing and design
C. Contractor or Trade Ally Management CONSULTANT will vet and enroll qualified general contractors (each, a “Trade Ally”) to participate in the HEG Program to install EE, WE, and BE projects recommended through the
HEG Program. CONSULTANT will recruit and train Trade Allies as described in Task 5 below
to be included on a list to be provided to customers. D. Home Efficiency Genie Program Targets
CONSULTANT’s targets for the term of the HEG Program are provided in Table A-2. The
parties will review the targets regularly to determine whether the HEG Program is on target or
whether the HEG Program design or goals require adjustment.
Table A-2. Home Efficiency Genie Program Targets
The “Net Promoter Score (NPS)” is calculated based on an industry-recognized customer satisfaction question. CONSULTANT will email all HEG Program participants a Customer Feedback Form (Task A.7) that will include an NPS question to measure customer satisfaction
with the HEG Program. CONSULTANT will provide survey data to enable the CITY to analyze
the four HEG Program customer categories so that the quality of services for specific customer categories can be measured. The target NPS value shown in Table A-1 applies for services in all 4 customer categories.
The “Project Conversion Rate” is the total number of EE, WE, or BE projects completed by
Home Assessment Customers divided by the number of completed Home Assessments. During an In-Home or Advanced In-Home Assessment, CONSULTANT may install some or all of the items that are part of the Efficiency Toolkit at the residence. The energy and water savings
associated with installation of items in the Efficiency Toolkit are not required and not a part of
the HEG Program targets; however, CONSULTANT will report these savings as noted in Task A.1.5. E. Staffing Plan
Term Year 1 Year 2 Year 3
Net Promoter Score (NPS) 70 70 70
Project Conversion Rate 40% 45% 45%
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 36
Professional Services Rev. Dec.15, 2020 Page 17 of 62
CONSULTANT agrees to staff the HEG Program in accordance with the Staffing Plan set forth below in Table A-3. CONSULTANT shall notify the CITY concerning proposed changes to the Staffing Plan; all such changes require prior written consent via email of the CITY.
CITY may (i) request CONSULTANT conduct criminal background checks to CITY’s satisfaction
on all CONSULTANT’s staff, contractors or agents that may enter customer property, and (ii) require that any staff, contractor, or agent of CONSULTANT that fails the background check shall not be permitted to enter any customer premises.
Table A-3 Home Efficiency Genie Program Staff Contacts
Name Title Phone Email
Kim DiCello
Sr. Program Director 415-965-3023 Kim.DiCello@clearesult.com
Develops strategies and tactics to deliver effective program performance by directing the work of employees assigned to the program from technical, marketing, operations, analytics, and administrative areas.
Marc Bigby
Sr. Program Manager 925-297-5057 marc.bigby@clearesult.com
Responsible for overseeing the portfolio of downstream residential
programs in California and will instill best practices to enable the Program
to be delivered within budget to meet Program goals.
Paul Koepke
Associate Program
Manager
650-226-4010
ext 2
paul.koepke@clearesult.com
Serves as primary point of contact for the CITY. Verifies the Program is
delivered within budget and is responsible for managing, training, and mentoring the implementation team.
Tony Jung
Sr. Residential
Auditor
650-226-4010
ext. 4 tony.jung@clearesult.com
Building Performance Institute (BPI) trained professional who will perform
remote and in-person audits and technical assistance
Robert Brigham
Sr. Field Manager 510-756-5776 robert.brigham@clearesult.com
General Contractor responsible for overseeing subcontracting and quality assurance for any direct installations of electrification technologies.
To Be Hired Residential Auditor N/A N/A
BPI trained professional who will perform remote and in-person audits and technical assistance
To Be Hired
Energy Advisor N/A N/A
Specialized customer support to provide technical assistance, facilitate the
customer journey, and enable enrollment in City programs.
To Be Hired
Operations Specialist N/A N/A
Desktop review, quality control, and operational support for rebate administration.
F. HEG Program Implementation and Delivery
TASK A.1 HOME EFFICIENCY GENIE PROGRAM PLANNING AND KICK OFF
Task A.1.1 Program Kick-Off Meeting
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 37
Professional Services Rev. Dec.15, 2020 Page 18 of 62
CONSULTANT will develop an agenda for the Program Kick Off Meeting and organize the Kick-Off Meeting with CITY staff to review HEG Program design and delivery, roles, timelines and priorities in the delivery of the HEG Program. The meeting will also cover
logistics, marketing, coordination, measurement and verification activities, establishing
CONSULTANT systems, invoicing requirements, reports, and any remaining implementation questions. CONSULTANT and CITY will refine timelines and identify additional CITY needs for the Program. CONSULTANT will identify customer data needs from CITY to inform customer segment analyses and outreach.
Task A.1.1 Deliverable: Meeting agenda and meeting minutes Task A.1.2 Develop HEG Program Policies and Procedures Manual
CONSULTANT shall develop the HEG Policies and Procedures Manual for use by CITY and CONSULTANT, which will include, at a minimum, the following: i. the terms and conditions for eligible customers to participate in the HEG Program; ii. the process for customers to participate in the HEG Program;
iii. the process for providing Energy and Water Advising Services to General Inquiry,
Home Assessment, Case Management and AHPWHP Program Customers in the HEG Program (Task A.3); iv. an exhaustive list of services included with Virtual, In-Home, and Advanced In-Home Assessments per descriptions in Table A-1;
v. the process for scheduling, performing, delivering Home Assessments (Task A.4) and
other HEG Program activities; vi. the process to recruit, enroll, and manage Trade Allies (Task A.5.1); vii. the process for obtaining and delivering the completed HEG Customer Feedback Form (Task A.1.7) and Trade Ally Feedback Form (Task A.1.9);
viii. the process for managing and entering HEG Program data into CITY’s program
platform(s), such as the CITY’s Energy Efficiency Collaboration Platform (Tasks A.7.1); ix. the process for providing HEG Program Reports (Task A.7.2); x. the process for completing HEG Program Invoices (Tasks A.7.3).
CONSULTANT will submit a draft HEG Program Policies and Procedures Manual to CITY for review and approval before finalizing and will provide written revisions and updates to the HEG Program Policies and Procedures Manual upon CITY request. CONSULTANT will adhere to and document its compliance with applicable policies and procedures in the HEG
Program Policies and Procedures Manual as it performs the Services in this Scope of Work.
Task A.1.2 Deliverable: HEG Program Policies and Procedures Manual
Task A.1.3 Update Home Assessment Agreement CONSULTANT will update the existing Home Assessment Agreement to include the following, at a minimum: i. Provides an overview of the HEG Program
ii. Grants CONSULTANT permission to perform the Home Assessment to
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 38
Professional Services Rev. Dec.15, 2020 Page 19 of 62
determine energy, water, and electrification opportunities available to customer under the City’s HEG Program; iii. Fully indemnifies CITY against all loss, damages, costs, and liability arising from any claims stemming from the Home Assessment;
iv. Collects basic information from the customer, including but not limited to
customer contact information and installation address; v. States customer co-payment amount, which will be mutually agreed upon by CITY and CONSULTANT
CONSULTANT will submit the Home Assessment Agreement to CITY for review and
approval and will revise and update the Home Assessment Agreement, including adding additional elements, as directed by CITY before use. CONSULTANT will provide the Home Assessment Agreement to customers in both electronic and paper formats. CONSULTANT will scan paper forms completed by customers and submit them to CITY electronically, as
well as in their original paper format.
Task A.1.3 Deliverable: Home Assessment Agreement Task A.1.4 Update Home Assessment Report Templates
CONSULTANT will provide a Home Assessment Report to the customer following their
Home Assessment. CONSULTANT will update the existing Home Assessment Report templates for Virtual and In-Home Assessments which will include the following elements: i. Inventory and photos of physical conditions, effective age and estimated remaining lifespans of equipment and appliances;
ii. Identification of whole house efficiency and optimization opportunities including, but
not limited to, building envelope, lighting, various energy appliances, measures, and potential occupant behaviors; iii. Quantification of each device's estimated energy consumption and opportunities for enhanced energy-use efficiency, water efficiency, and electrification;
iv. Evaluation of the condition and capacity of the existing electric panel and
recommended upgrades that may be necessary to enable the proposed measures; v. Recommended locations for new electrical equipment, noting any observed space or structural constraints and possible remedies; vi. Clear and actionable energy and water savings and electrification recommendations to
educate the customer.
The Home Assessment Report for Advanced In-Home Assessments will include all elements included in Virtual and In-Home Assessment Reports, as well as the following elements: i. Home performance information and parameter values resulting from diagnostic
testing including blower door test, duct system pressure test, and infrared camera
scans where applicable; ii. Identification of whole house efficiency and optimization opportunities including, but not limited to, building envelope, lighting, various energy appliances, measures, and potential occupant behaviors;
iii. Home performance information and parameter values expected after recommended
building envelope improvements are made; iv. Size recommendations of HVAC equipment without building envelope
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 39
Professional Services Rev. Dec.15, 2020 Page 20 of 62
improvements; v. Size recommendations of HVAC equipment with building envelope improvements. CONSULTANT will submit the Home Assessment Report Templates for CITY review and
approval and will revise as directed by CITY before use. Once finalized and approved by
CITY, the Home Assessment Report Templates will be provided by CONSULTANT to the customer and will include information necessary for the customer to understand energy and water efficiency opportunities available to them. CONSULTANT will provide written revisions and updates to the Home Assessment Reports upon CITY request.
Task A.1.4 Deliverable: Virtual, In-Home, and Advanced In-Home Assessment Report Templates
Task A.1.5 Update HEG Program Report Template
CONULTANT will update the standard HEG Program Report template to meet CITY’s reporting requirements and deliver it to the CITY monthly, quarterly, and annually. CONSULTANT will assist CITY in finalizing HEG Program performance metrics to include in the HEG Program Reports. The HEG Program Report will also provide summary statistics
which shall include the following at minimum:
i. Number of pending and completed Home Assessments; ii. Number of Efficiency Toolkits provided; iii. Number of EE, WE, and BE projects completed by customer that customer completed
via their participation in CONSULTANT’s Energy and Water Advising or Home
Assessment services; iv. Program referrals and additional customer participation in City programs resulting from Energy and Water Advising or Home Assessment services; v. Savings associated with Energy Toolkit or completed projects including:
a) Gross and net annual deemed kWh;
b) Gross and net lifetime kWh deemed savings; c) Gross and net annual kW demand deemed savings; d) Gross and net lifetime kW demand deemed savings; e) Gross and net annual therms deemed savings;
f) Gross and net lifetime therms deemed savings;
g) Gross and net annual deemed greenhouse gas (GHG) emissions savings; h) Gross and net lifetime deemed GHG emissions savings;
vi. Number of Trade Allies enrolled; vii. Number of Trade Ally trainings completed;
viii. Program dashboards with the following information:
a) Account type totals; b) New account totals; c) Net Promoter Score; d) Project Conversion Rates;
e) New lead totals;
f) Program savings totals (by period and total for program). CONSULTANT will submit the HEG Program Report Template to CITY for review and
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 40
Professional Services Rev. Dec.15, 2020 Page 21 of 62
approval and will revise and update the HEG Program Report Template as directed by CITY before use. Task A.1.5 Deliverable: HEG Program Report Template
Task A.1.6 Update HEG Program Invoice Template
CONSULTANT will update the standard HEG Program Invoice Template to meet CITY’s invoicing requirements, including, but not limited to:
i. Name of company providing invoice (CLEAResult, Inc.); ii. Invoice number; iii. Invoice date; iv. CONSULTANT’s remit-to address for invoicing;
v. Description of work performed;
vi. Narrative describing the items billed in the applicable period; vii. Invoice amount, broken down as requested by CITY according to category of work viii. Number of advising hours, including report detailing activities completed during advising hours;
ix. Number of completed Home Assessments by category: 1) Virtual, 2) In-Home, and 3) Advanced In-Home; x. Additional services performed.
CONSULTANT will submit the HEG Program Invoice Template to CITY for review and approval and will revise and update the HEG Program Invoice Template as directed by CITY
before use. Task A.1.6 Deliverable: HEG Program Invoice Template
Task A.1.7 Update HEG Customer Feedback Forms
CONSULTANT will update the HEG Customer Feedback Form Template for each of the 4 customer types described in the Overview section. The HEG Customer Feedback Form gives
customers the opportunity to evaluate the HEG services that were provided to the customer, including Energy and Water Advising Services, the Home Assessment, the on-going customer support, and the overall customer experience associated with the HEG Program. The HEG Customer Feedback Form must include a question for the customer that enables CITY to
calculate a Net Promotor Score (NPS) value, which is a standardized metric used to assess customer satisfaction. CONSULTANT will pursue continuous improvements to achieve the target NPS score in Table A-2.
CONSULTANT will submit the HEG Customer Feedback Form Templates to CITY for review
and approval and will revise and update them as directed by CITY before use. CONSULTANT will provide the HEG Customer Feedback Forms to customers in either electronic and paper formats. CONSULTANT will scan paper forms completed by customers and submit them to CITY electronically, as well as in their original paper format.
Task A.1.7 Deliverable: HEG Customer Feedback Form Template
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 41
Professional Services Rev. Dec.15, 2020 Page 22 of 62
Task A.1.8 Update Trade Ally Participation Agreement
CONSULTANT will update a Trade Ally Participation Agreement that includes the following, at a minimum: i. Provides an overview of the Trade Ally network; ii. Provides requirements for Trade Allies to participate, including but not limited to
insurance certification and information, W9, and attending a Trade Ally training;
iii. Collects basic information from the Trade Ally, including but not limited to contact information and Contractor’s License(s). CONSULTANT will submit the Trade Ally Participation Agreement to CITY for review and
approval and will revise and update the Trade Ally Participation Agreement, including
adding additional elements, as directed by CITY before use. CONSULTANT will provide the Trade Ally Participation Agreement to Trade Allies in both electronic and paper formats. CONSULTANT will scan paper forms completed by Trade Allies and submit them to CITY electronically, as well as in their original paper format.
Task A.1.8 Deliverable: Trade Ally Participation Agreement Template Task A.1.9 Update Trade Ally Feedback Forms
CONSULTANT will update a Trade Ally Feedback Form Template. The Trade Ally Feedback Form gives customers the opportunity to evaluate the Trade Ally network, the on-going customer support, and the programs and policies associated with the Trade Ally network. The Trade Ally
Feedback Form must include a question for the Trade Ally that enables CITY to calculate a Net
Promotor Score value. CONSULTANT will pursue continuous improvements to achieve the target NPS score in Table A-2. CONSULTANT will submit the Trade Ally Feedback Form Templates to CITY for review and
approval and will revise and update them as directed by CITY before use. CONSULTANT will provide the Trade Ally Feedback Forms to Trade Allies in both electronic and paper formats. CONSULTANT will scan paper forms completed by Trade Allies. Task A.1.9 Deliverable: Trade Ally Feedback Form Template
Task A.1.10 Host Ongoing Program Implementation Meetings
CONSULTANT’s assigned point of contact will meet with the CITY team on a monthly basis and will also be available for a weekly check-in phone call with the CITY team. CONSULTANT will be available as necessary at any time to ensure effective Program implementation.
TASK A.2 – HOME EFFICIENCY GENIE PROGRAM MARKETING Task A.2.1 Implement Marketing and Outreach Activities
CONSULTANT will market the HEG Program as directed by the CITY’s Project Manager. These marketing activities shall include the following at minimum, and any changes must be
mutually agreed upon in writing via email:
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 42
Professional Services Rev. Dec.15, 2020 Page 23 of 62
i. Email or direct mail communications; ii. Outbound call campaigns; iii. Tabling at various CITY locations (e.g. libraries, City Hall and Community Centers, local retail establishments);
iv. Organizing and hosting community workshops and webinars;
v. Participating in CITY sponsored events and workshops (e.g. rooftop solar, electric vehicle, heat pump water heater, water conservation); vi. Partnering with community groups (e.g. neighborhood associations); vii. Engaging with real estate professionals, Trade Allies, local employers, and other
stakeholders.
TASK A.3 – ENERGY AND WATER ADVISING SERVICES IMPLEMENTATION
Task A.3.1 Recruit, Hire, and Train Energy Advisors and Residential Auditors CONSULTANT will employ Energy Advisors and Residential Auditors that are residential efficiency experts with a strong command of building science technical knowledge, electrification, sales skills, and excellent customer service skills. CONSULTANT’s Energy
Advisors will be CITY customers’ main point of contact for the HEG Program and will
provide concierge service to assist customers as described in Tasks A.3.2, A.3.3, A.3.4, and A.3.5. Energy Advisors hired by CONSULTANT will demonstrate building science technical knowledge through holding certifications (e.g. Building Performance Institute Certification Building Analyst, Home Energy Rating System Certification, and other similar
certifications) or equivalent education, certification, and experience that demonstrates
building science technical knowledge. CONSULTANT will provide to CITY a list of Energy Advisors and Residential Auditors to staff the HEG Program. CITY will approve Energy Advisors and Residential Auditors for the
HEG Program and reserves the right to reject any that do not meet CITY’s standards. If
CITY chooses to exercise its right, CONSULTANT shall provide a replacement Energy Advisor or Residential Auditor within 30 days of written CITY notice to CONSULTANT.
Task A.3.2 Provide Energy and Water Advising Services to General Inquiry Customers
CONSULTANT will be available through email and maintain a dedicated phone line with the phone number (650) 713-3411 for phone-based advising. CONSULTANT will provide energy and water advising services to General Inquiry customers via phone and email in support of EE, WE, and BE upgrade projects, which will include the following at minimum.
Any changes must be mutually agreed upon in writing via email: i. Guidance for residents to reduce their building and transportation emissions through energy saving behaviors and the completion of EE, WE, and BE upgrade projects;
ii. Assistance with customer-facing utility portals such as MyCPAU; iii. Utility bill analysis; iv. Assistance with selecting contractors or Trade Allies for upgrade projects; v. Reviewing contractor bids;
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 43
Professional Services Rev. Dec.15, 2020 Page 24 of 62
vi. Assistance with understanding financing options for upgrade projects; vii. Incentive application assistance and processing; viii. Referrals to relevant complementary CITY sustainability programs such as electrification and efficiency programs, water conservation programs, waste
reduction programs, electrification programs and pilot programs.
CONSULTANT will track customer referrals to complementary programs to measure indirect benefits of the HEG Program. CONSULTANT will also provide ongoing follow-up to all customers to ensure customers take advantage of all the available CITY programs and services,
and that customer questions are fully answered.
Task A.3.3 Provide Energy and Water Advising Services to Home Assessment Customers
CONSULTANT will provide the same energy and water advising services to Home
Assessment Customers as provided to General Inquiry Customers, with the following additions: i. Enroll customers for Home Assessment by collecting signed Home Assessment
Agreement;
ii. Provide Home Assessment Report review and ongoing follow-up and engagement. Task A.3.4 Provide Energy and Water Advising to Case Management Customers CONSULTANT will provide the same energy and water advising to Case Management Customers as provided to General Inquiry Customers, with the following additions:
i. Assist customers with application and enrollment processes for CITY’s income or assistance programs such as CITY’s Rate Assistance Program; ii. Host and assist with workshops and events to generate new customer enrollments in CITY’s income-qualifying programs;
iii. Coordinate with and receive referrals from other income-qualified CITY, State, or
Federal Programs such as the Home Energy Assistance Program (HEAP). In order to serve Case Management Customers who may be hard-to-reach and experience additional barriers to entry such as language access, CONSULTANT will work to reduce
barriers by providing activities, such as providing language interpretation services and
translated marketing materials and program documents. CONSULTANT will identify additional barriers to entry for Case Management Customers and provide proposed solutions. Task A.3.5 Provide Advising Services to Advanced Heat Pump Water Heater Pilot Program Customers
CONSULTANT will provide energy advising services to AHPWHP Program Customers via phone and email. CONSULTANT will provide electrification and efficiency concierge services to qualified CITY customers that will include the following at minimum. Any changes must be mutually agreed upon in writing via email: i. Identify and screen customers based on the AHPWHP Program qualifications for
site assessments;
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 44
Professional Services Rev. Dec.15, 2020 Page 25 of 62
ii. Educate customers on HPWH product technologies and basic operation, potential installation and operational difficulties, possible costs, and any questions related to HPWHs; iii. Coordinate with CITY’s third-party contractor to schedule site assessment;
iv. Collect customer documents required by AHPWHPP such as the Customer Site
Assessment Agreement; v. Determine customer eligibility for financing programs and educate customers on financing terms and conditions; vi. Provide ongoing support for any AHPWHP Program-related questions, and inform
CITY and CITY’s third-party contractor of any customer concerns or questions
within three (3) business days.
Task A.3.6 Provide Supporting Services At CITY’s request, CONSULTANT will provide supporting services to optimize the HEG
program, such as:
i. evaluating HEG Program efficacy for participating customers by comparing pre- and post-HEG Program energy consumption, where available, and shall include this information in reports; ii. discussing potential HEG Program enhancements.
TASK A.4 HOME ASSESSMENTS IMPLEMENTATION Task A.4.1 Enroll Customers for Home Assessments
CONSULTANT will explain the key differences of the three types of Home Assessments to
customers and assist customers in selecting one for enrollment. CONSULTANT will screen
and schedule a Home Assessment for customer. Customer enrollment occurs when CONSULTANT gains customer’s signature on the Home Assessment Agreement between CONSULTANT and customer. CONSULTANT will collect or waive any customer co-payments, as applicable. The co-payment amount will be mutually agreed upon by CITY and
CONSULTANT and any changes in co-payment amount must be mutually agreed upon via
email. Task A.4.2 Perform Virtual, In-Home, and Advanced In-Home Home Efficiency and Electrification Assessments
CONSULTANT will perform the Home Assessment selected by customer. For Virtual Assessments, CONSULTANT will: 1. Use an interactive electronic platform to review conditions in the home, document
existing equipment, and review comfort, energy and water use concerns; 2. Gather relevant information and images as defined in Task A.1.4 to create the Virtual Home Assessment Report.
For In-Home and Advanced In-Home Assessments, CONSULTANT will:
1. Schedule a visit to customer’s home; 2. Gather relevant information, images, and data from diagnostic tests as defined for each type of Home Assessment in Task A.1.4 to create the In-Home or Advanced In-Home
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 45
Professional Services Rev. Dec.15, 2020 Page 26 of 62
Home Assessment Report; 3. Provide an Efficiency Toolkit. Task A.4.3 Complete Home Assessment Reports Upon completion of the Virtual, In-Home, or Advanced In-Home Assessment,
CONSULTANT will prepare a customized Home Assessment Report using the Home
Assessment Report Template according to the type of Home Assessment that was performed (Task A.1.4). Depending on the type of home, the Home Assessment Report contents may vary. CONSULTANT will coordinate with CITY to promote CITY's other energy and water efficiency, electrification, demand response and offerings to maximize benefit to customers.
Such coordination may result in referrals to other programs or joint delivery of services.
CONSULTANT will deliver the Home Assessment Report to customer and explain findings to help customers navigate the EE, WE, and BE upgrade process. CONSULTANT will not offer, solicit or provide any non-CITY/CPAU programs or services under this Agreement.
TASK A.5 – TRADE ALLY MANAGEMENT
Task A.5.1 Recruit, Enroll, and Manage Trade Allies
CONSULTANT will develop and adhere to the process for enrolling and removing Trade Allies, including executing a Trade Ally Participation Agreement. After vetting Trade Allies, CONSULTANT will create a list of Trade Allies and submit to CITY for approval prior to distribution. All lists must include a CITY-approved disclosure statement, such as the
following: “Note: This list is provided as a courtesy resource only. The City does not require
or endorse the use of any of these firms. This list is not to be construed as exclusive, comprehensive, or limiting in any way.” Task A.5.2 Onboard and Host Trainings for Trade Allies CONSULTANT shall provide at least four (4) in-person and/or online HEG Program trainings
for Trade Allies per year. Trainings will cover Trade Ally enrollment processes and rebate
program eligibility and processes. CONSULTANT will provide the training materials to CITY for approval prior to use. Task A.5.3 Provide Project Advising to Trade Allies CONSULTANT will provide EE, WE, and BE project advising services to Trade Allies that
will include the following at minimum. Any changes must be mutually agreed upon in
writing via email:
i. Assistance with applying for applicable CITY rebates on behalf of customer; ii. Resources and training for installing EE, WE, and BE upgrade projects; iii. Building permit and inspection coordination with CITY’s Planning and Development Services Department.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 46
Professional Services Rev. Dec.15, 2020 Page 27 of 62
CONSULTANT will ensure that all manufacturer product warranties held either by
CONSULTANT or Trade Allies will be transferred to the customer upon installation, and
CONSULTANT will be available to troubleshoot and/or replace any defective measures for
customers.
CONSULTANT will confirm Trade Allies’ licensing and insurance and monitor customer
feedback on Trade Allies’ performance.
Task A.5.4 Support Trade Allies’ Outreach to Customers
CONSULTANT will support Trade Allies’ outreach to customers by offering consultative
sales and outreach support, providing HEG Program materials, and inviting for Trade Allies
to participate in community events. CONSULTANT will train Trade Allies on HEG Program
requirements to share with customers.
TASK A.6 – CUSTOMER FEEDBACK
Task A.6.1 Provide Customer Service, Feedback, and Issue Resolution CONSULTANT will provide a dedicated phone number for all CITY customer contacts for
scheduling Home Assessments, providing program information, and answering customer or
Trade Ally inquiries during normal business hours, Monday through Friday between 8 AM – 5 PM. CONSULTANT will request feedback as described in HEG Customer Feedback Form (Task
A.1.7) and Trade Allies Feedback Form (Task A.1.9). CONSULTANT will enter feedback
data into CITY’s chosen platform and provide feedback results to CITY in monthly invoicing and reporting. CITY retains the right to separately survey Program participants. CONSULTANT will address and attempt to resolve all issues discovered through either
survey feedback or other means of contact within five (5) business days. CONSULTANT
will pursue continuous improvements to drive high program satisfaction and NPS targets as described in Table A-1. If any issues cannot be resolved to the satisfaction of the customer by CONSULTANT within five (5) business days, CONSULTANT shall immediately provide CITY with a detailed description of any such complaint which will include the name and
contact information of the customer and any other information requested by CITY.
TASK A.7 HEG PROGRAM INVOICING AND REPORTING
Task A.7.1 Data Management CONSULTANT shall provide data tracking, analysis, and reporting as well as actionable insights regarding real-time HEG Program performance. CONSULTANT will utilize its own
system to update the CITY’s program platform such as Energy Efficiency Collaboration Platform. In addition to tracking HEG Program progress, CONSULTANT shall track detailed customer information such as barriers and motivations as well as planned future upgrades to support on-going HEG Program operations.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 47
Professional Services Rev. Dec.15, 2020 Page 28 of 62
CONSULTANT will respond to CITY’s written data requests within 30 calendar days to
meet evaluation, measurement, and verification (“EM&V” and other regulatory
requirements. CONSULTANT will interface with CITY’s contracted EM&V firms as
necessary.
Task A.7.2 Reporting
CONSULTANT will provide completed HEG Program Reports on CITY-approved reporting
templates (Task A.1.5) on a monthly basis. HEG Program Reports are critical to the success of the programs described herein, and
therefore CONSULTANT’s timely submittal of complete and accurate HEG Program
Reports is required in order for CONSUTLANT to receive payments under this Agreement.
Task A.7.3 Invoicing
Using the HEG Program Invoice Template (Task A.1.6), CONSULTANT will invoice CITY on a monthly basis consistent with Section 5 of the Agreement and in accordance with the more specific guidelines set forth in this Exhibit “A,” Task A.1.6, and in Exhibit “C”,
“Compensation” through the CITY designated submission approach or system.
Proper record-keeping is critical for the success of the programs described herein. As such, CONSULTANT must timely and accurately provide the Completed HEG Program Invoice and Completed HEG Program Report in order to receive payment for Services under this
Agreement.
TASK A.8 HEG PROGRAM CLOSEOUT Task A.8.1 Resolve Outstanding Jobs in Progress
CONSULTANT will complete all outstanding projects in progress and resolve any complaints from previously completed projects as a prerequisite for CITY to process CONSULTANT’s invoices.
Task A.8.2 Develop and Submit Final Program Report
CONSULTANT will submit a “HEG Program Final Report”, which includes a written overview of the HEG Program and a spreadsheet detailing the budgeted and actual HEG Program cost. The HEG Program Final Report will include HEG Program achievements,
challenges, goals, and lessons learned. CONSULTANT will deliver the HEG Program Final
Report within 30 calendar days before the end of the Term. II. OVERVIEW OF RESIDENTIAL REBATE PROGRAM SERVICES
Residential Rebate Program Services (“RR Services”) support the CITY’s Residential Rebate
Program (“RR Program”), which provides rebates and incentives to CITY residential customers
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 48
Professional Services Rev. Dec.15, 2020 Page 29 of 62
who install qualifying BE and EE equipment (“RR Eligible Measures”). RR Services will be
carried out only at CITY’s request.
RR Services fall into three (3) categories:
1) Residential Rebate (RR) Eligible Measures List Development;
2) Residential Rebate (RR) Program Support;
3) Residential Rebate Administration Platform Development.
A. Staffing Plan
CONSULTANT agrees to staff RR Services in accordance with the Staffing Plan set forth in
Table A-4. CONSULTANT will notify the CITY in writing concerning proposed changes to the
staffing plan, and all such changes will require the prior written consent of the CITY.
CITY may (i) request that CONSULTANT conduct criminal background checks to CITY’s
satisfaction on all CONSULTANT’s staff that may enter customer premises, and (ii) require that
any staff of CONSULTANT that fails the background check will not be permitted to enter any
customer premises.
Table A-4 Residential Rebate Services Staffing Plan
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 49
Professional Services Rev. Dec.15, 2020 Page 30 of 62
Name Title Phone Email
Kim DiCello
Sr. Program Director 415-965-3023 kim.dicello@clearesult.com
Develops strategies and tactics to deliver effective program performance by directing the work of employees assigned to the program from technical, marketing, operations, analytics, and administrative areas.
Marc Bigby
Sr. Program Manager 925-297-5057 marc.bigby@clearesult.com
Responsible for overseeing the portfolio of downstream residential
programs in California and will instill best practices to enable the Program to be delivered within budget to meet Program goals.
Paul Koepke
Associate Program
Manager
650-226-4010
ext 2
paul.koepke@clearesult.com
Serves as primary point of contact for the CITY. Verifies the Program is
delivered within budget and is responsible for managing, training, and mentoring the implementation team.
Tony Jung
Sr. Residential
Auditor
650-226-4010
ext. 4 tony.jung@clearesult.com
BPI trained professional who will perform remote and in-person audits and
technical assistance
Robert Brigham
Sr. Field Manager 510-756-5776 robert.brigham@clearesult.com
General Contractor responsible for overseeing subcontracting and quality assurance for any direct installations of electrification technologies.
To Be Hired Residential Auditor N/A N/A
BPI trained professional who will perform remote and in-person audits and technical assistance
To Be Hired
Energy Advisor N/A N/A
Specialized customer support to provide technical assistance, facilitate the
customer journey, and enable enrollment in City programs.
To Be Hired
Operations Specialist N/A N/A
Desktop review, quality control, and operational support for rebate administration.
B. Description of Residential Rebate Services
TASK B.1 RESIDENTIAL REBATE SERVICES PLANNING
Task B.1.1 Residential Rebate Services Planning Meetings
CONSULTANT will develop an agenda for RR Services Planning Meetings and organize the Planning Meetings with CITY staff to review RR Services, roles, timelines and priorities in the delivery of the RR Services. The Planning Meetings will also cover logistics, marketing, coordination, measurement and verification activities, establishing systems, invoicing
requirements, reports, and any remaining implementation questions. CONSULTANT and CITY will discuss new technologies as potential Residential Rebate Eligible Measures where appropriate, refine timelines and identify additional CITY needs for its RR Program. CONSULTANT’s assigned point of contact will meet with the CITY team on a monthly
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 50
Professional Services Rev. Dec.15, 2020 Page 31 of 62
basis and will also be available for a weekly check-in phone call with the CITY team. CONSULTANT will be available as necessary at any time to ensure effective RR Services are being delivered.
Task B.1.1 Deliverable: Meeting agenda and meeting minutes
Task B.1.2 Develop RR Services Invoice Template CONSULTANT will create a standard RR Services Invoice Template to meet CPAU’s invoicing requirements, including, but not limited to: i. name of company providing invoice (CLEAResult); ii. invoice number; iii. invoice date; iv. CLEAResult’s remit-to address for invoicing;
v. number of rebate administration hours or one-time costs; vi. invoice amount, broken down as requested by CITY according to category of work; vii. number of applications processed; viii. Program dashboards with invoice and summary details.
CONSULTANT will submit the RR Services Invoice Template to CITY for review and
approval before use and will revise and update the RR Services Invoice Template as directed by CITY before use. Task B.1.2 Deliverable: RR Services Invoice Template
TASK B.2 RESIDENTIAL REBATE ELIGIBLE MEASURES LIST DEVELOPMENT
Task B.2.1 Develop Residential Rebate Eligible Measure List
CONSULTANT will develop a RR Eligible Measures List as a part of the RR Program. The
RR Eligible Measure List will include 10 CITY-approved rebate measure categories (e.g.,
insulation, weatherization, HVAC, water heating, BE appliances, electric panel, etc.) with
several variations (central HVAC, mini split HVAC, etc.) within each category. Projected
energy and water savings must be based on credible sources such as the California Technical
Forum (“CalTF”) electronic Technical Reference Manual (“eTRM”), California Public
Utility Commission (“CPUC”) Database for Energy Efficiency Resources, approved
workpapers, etc.
CONSULTANT will provide CITY Project Manager with an RR Eligible Measure List of
proposed rebate measures, which shall include the following. Any changes must be mutually
agreed upon in writing via email:
i. Measure description;
ii. Unit of measure for rebate (e.g. sq. feet, ton, per unit, etc.); iii. Maximum quantity per customer; iv. Compensation to customer per measure, including rebates or bonus incentives (also
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 51
Professional Services Rev. Dec.15, 2020 Page 32 of 62
known as “kickers”) for completing multiple measures; v. Annual savings per unit (e.g. kWh, kW, therms, CCF, greenhouse gas emissions, etc.); vi. Effective Useful Life;
vii. Cost effectiveness (e.g. dollars per metric ton of GHG emissions avoided);
viii. Source of savings (Electronic Technical Reference Manual (eTRM), Database for Energy Efficient Resources (DEER), etc.); ix. The process for identifying, measuring and verifying measure savings; x. Effective Period;
xi. Qualifying criteria for approved measures (e.g. documentation required, equipment
characteristics, inspections, etc.).
CONSULTANT will submit the RR Eligible Measure List of proposed rebate measures to CITY for review and approval.
Task B.2.1 Deliverable: Residential Rebate Eligible Measure List
TASK B.3 RESIDENTIAL REBATE PROGRAM SUPPORT
Upon CITY’s written notification via email, CONSULTANT will provide the following services
in support of CITY’s RR Program.
Task B.3.1 Review and Process Customer Applications for Reserving Rebates
Rebate applications will be submitted by the customer or Trade Allies to reserve rebate funds
via the CITY’s chosen platform such as Energy Efficiency Collaboration Platform (EECP) or
CONSULTANT-hosted Residential Rebate Administration Platform (“CONSULTANT
Platform”) (see Task B.4).
Upon receipt of rebate application, CONSULTANT will:
1. Review all customer applications within five (5) business days to ensure there are existing rebate funds and customer application meets RR Program qualifications and RR Eligible Measures requirements; 2. CONSULTANT will notify customer and CITY Project Manager of application approval
or denial, including reason for denial.
a. If the rebate application is not approved, CONSULTANT will provide guidance
and suggestions to help the customer achieve approval.
b. If the application is approved, CONSULTANT will guide customer through next
steps of installation process, consistent with Energy and Water Advising Services
to General Inquiry Customers (see Task A.3.2).
Task B.3.2 Review and Process Customer Installation Results for Processing Rebate Payments
Installation results will be submitted by the customer or Trade Allies to process payment of
reserved rebate funds via the CITY’s chosen platform.
Upon receipt of customer’s installation results, CONSULTANT will:
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 52
Professional Services Rev. Dec.15, 2020 Page 33 of 62
1) Review customer’s installation results within three (3) business days of receipt.
CONSULTANT will review all installation documentation to ensure customer’s project
meets RR Program and Eligible Measures requirements for rebate and incentive payment.
2) CONSULTANT will notify customer and CITY Project Manager of installation results
approval or denial, including reason for denial.
a. If the installation results are not approved, CONSULTANT will provide guidance
and suggestions to help the customer achieve approval.
b. If the installation results are approved, CONSULTANT will guide customer
through next steps of receiving rebate and incentive payment.
Task B.3.3 Submit Approved Projects for Payment
Upon successful approval of installation results, CONSULTANT will notify CITY Project
Manager via CITY platform that customer’s project meets all requirements for rebate payment.
Task B.3.4 Update RR Eligible Measure List
Sixty days before the start of each fiscal year, or as requested by CITY, but no more than two
(2) times per fiscal year, CONSULTANT will update the RR Eligible Measure List. The
proposed tables will include any new RR Eligible Measures proposed by CITY or
CONSULTANT as well as changes to effective period that reflect measures no longer
offered.
Task B.3.5 Provide Quality Assurance and Quality Control Inspections As directed by CITY, CONSULTANT will complete on-going quality assurance and quality
control (“QA & QC”) activities as to verify that each project has been installed properly and
documented accurately. CONSULTANT will track, analyze, and report on QA & QC results. The QA & QC process helps to verify that savings are accurately calculated to maintain high realization rates. The QC process will include, but not be limited to, review of project documentation to verify customer-installed measures meet rebate program eligibility
requirements, and on-site inspections for up to 10% of projects to confirm presence and
quality of installation for incentivized equipment. Task B.3.6 Troubleshoot and Update Rebate Platform CONSULTANT will notify CITY Project Manager of any improvements to streamline the rebate application and rebate payment process. CONSULTANT will work with CITY Project
Manager to make these improvements in CITY-chosen platform. Upon request, CONSULTANT will offer CITY support in suggesting, scoping and testing system improvements and optimizations.
TASK B.4 RESIDENTIAL REBATE ADMINISTRATION PLATFORM DEVELOPMENT
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 53
Professional Services Rev. Dec.15, 2020 Page 34 of 62
If requested by CITY in writing via email and agreed upon by CONSULTANT via email,
CONSULTANT will develop and operate a CONSULTANT-hosted Residential Rebate
Administration Platform (“CONSULTANT Platform”) as described in Task B of the Scope.
Task B.4.1 Develop Rebate Administration Platform
CONSULTANT will develop CONSULTANT Platform to provide Residential Rebate
Program Support (Task B.3). The CONSULTANT Platform will include the following
features and capabilities and any changes must be mutually agreed upon in writing via email:
i. Customer portal for rebate submission and payment with the ability for customers to submit project information (e.g. customer contact information, existing equipment information, installed equipment information, costs, contractors, etc.); ii. Trade Ally portal for rebate submission and payment with the ability for Trade Allies
to submit project information ((e.g. customer contact information, existing equipment
information, installed equipment information, costs, etc.); iii. Ability to set-up customer data exchange from CITY to CONSULTANT, and data exchange for completed applications back to CITY; iv. Ability to include CITY logo and match style and design (e.g. colors, fonts, etc.) as
defined in CITY’s Style Guide;
v. Ability to upload documentation (e.g. photos, electronic copies of permits, etc.); vi. Ability for CONSULTANT to update customer project information upon request; vii. Ability for CONSULTANT to track changes made to customer applications; viii. Ability to confirm RR Program and RR Eligible Measure requirements;
ix. Ability to track application status;
x. Ability to track savings on customer, measure, and program-wide basis; xi. Ability to track RR Program costs; xii. Ability to track customer feedback; xiii. Ability to have a test or sandbox environment to ensure agreed upon specifications
function properly
xiv. Ability to provide reports consistent with the Residential Rebate Report Template (Task B.4.3)
Task B.4.2 Provide Rebate Administration Platform Technical Services
CONSULTANT will provide technical services to maintain the Platform, including: i. IT support for tickets, bugs, and issues; ii. IT and engineering support for measure updates and changes that may be needed.
Task B.4.3 Develop Residential Rebate Platform Report Template CONSULTANT will create a standard RR Platform Report Template that summarizes activities in CONSULTANT’s Platform. This RR Platform Report will be delivered monthly,
quarterly, and annually to meet CITY’s reporting requirements.
CONSULTANT will assist CITY in finalizing program performance metrics to include in the RR Platform Report. The RR Platform Report will provide summary statistics including the following, with any changes being mutually agreed upon in writing via email:
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 54
Professional Services Rev. Dec.15, 2020 Page 35 of 62
i. Number of rebates processed including type of RR Eligible Measures installed and rebate amount; ii. Installed equipment and measures costs;
iii. Gross and net annual kWh deemed savings;
iv. Gross and net lifetime kWh deemed savings; v. Gross and net annual kW demand deemed savings; vi. Gross and net lifetime kW demand deemed savings; vii. Gross and net annual therm deemed savings;
viii. Gross and net lifetime therm deemed savings;
ix. Gross and net annual deemed greenhouse gas (GHG) emissions; x. Gross and net lifetime deemed GHG savings. CONSULTANT will submit the RR Platform Report Template to CITY for review and
approval before use and will revise and update the RR Platform Report Template as directed
by CITY before use. Task B.4.3 Deliverable: Residential Rebate Platform Report Template
Task B.4.4 Develop Customer Feedback Form
CONSULTANT will develop a RR Customer Feedback Template. The RR Customer
Feedback Form will evaluate the rebate processing process, the on-going customer support, and the overall customer experience associated with the CONSULTANT Platform. The RR Customer Feedback Form must include a question for the customer that enables CITY to calculate a Net Promoter Score value.
CONSULTANT will submit the RR Customer Feedback Form Template to CITY for review and approval and will revise and update them as directed by CITY before use. CONSULTANT will provide the RR Customer Feedback Form to customers in customer’s
preferred format, either electronic or paper format. CONSULTANT will scan paper forms
completed by customers and submit them to CITY electronically, as well as in their original paper format. Task B.4.4 Deliverable: RR Customer Feedback Form Template
TASK B.5 RESIDENTIAL REBATE SERVICES DATA MANAGEMENT AND INVOICING
Task B.5.1 Data Management
CONSULTANT will provide data tracking, analysis and reporting as well as actionable
insights regarding real-time performance for RR Services. CONSULTANT will share
customer account records with CITY and will respond to CITY’s reasonable written data
requests within 30 calendar days to meet evaluation, measurement, and verification
(“EM&V”) and other regulatory requirements.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 55
Professional Services Rev. Dec.15, 2020 Page 36 of 62
CONSULTANT will provide data and information from the CONSULTANT Platform in an
electronic format that can be easily integrated with CITY program platforms such as EECP.
CITY will own all customer information and program data. CONSULTANT will adhere to
the CITY’s Exhibit F - Information Privacy Policy and Exhibit G - Cybersecurity Terms and
Conditions; specifically, CONSULTANT will protect the confidentiality of all customer
information and program data used, prevent any sale or release of such information and data
to third parties, and ensure CITY has secure access to all customer information and data
collected through the CONSULTANT Platform
Task B.5.2 Invoicing Using the RR Services Invoice Template (Task B.1.2), CONSULTANT will invoice CITY on a monthly basis consistent with Section 5 of the Agreement and in accordance with the more specific guidelines set forth in this Exhibit “A,” Task B.1.2, and in Exhibit “C”,
“Compensation” through the CITY designated submission approach or system. Proper record-keeping is critical for the success of the services described herein. As such, CONSULTANT must timely and accurately provide the RR Services Invoice in order to receive payments for Services under this Agreement.
TASK B.6 RESIDENTIAL REBATE SERVICES CLOSEOUT Task B.6.1 Resolve Outstanding Jobs in Progress
The CONSULTANT will complete all outstanding projects and applications in progress and resolve any complaints from previously completed projects as a prerequisite for CITY to process CONSULTANT’s invoices. Any outstanding project applications will be transferred to CITY along with current status and next steps.
Task B.6.2 Develop and Submit Final Report
CONSULTANT will submit a “RR Services Final Report”, which includes a narrative with an overview of the RR Services delivered and a spreadsheet detailing the budgeted and actual RR Services costs. The RR Services Final Report will include RR Services achievements,
challenges, goals, and lessons learned. CONSULTANT will deliver the final report within 30 calendar days before the end of the Term. Task B.5.2 Deliverable: RR Services Final Report IV. Overview of Turnkey Installation Program This scope of work is optional at the CITY’s discretion. If CITY opts to proceed with this Scope, it will provide CONSULTANT with 90 days advanced written notice by email to allow
for staffing and operational readiness. CONSULTANT will be required to provide current pricing and launch timelines, which must be mutually agreed upon by CONSULTANT and CITY prior to proceeding.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 56
Professional Services Rev. Dec.15, 2020 Page 37 of 62
If directed by CITY, CONSULTANT will implement the Turnkey Installation Program (TI Program) to provide turnkey installation1 services to eligible market-rate single-family and multifamily residential customers. Participating customers will provide CONSULTANT with a
co-payment for Eligible Measures installed by CONSULTANT under this Agreement.
CONSULTANT will also cross-promote other applicable CITY/CPAU program offerings, including but not limited to the Home Efficiency Genie program. CONSULTANT will not offer, solicit or provide any non-CITY/CPAU programs or services under this Agreement.
At CITY’s discretion, CONSULTANT will solicit eligible market-rate single-family and
multifamily customers through referrals and/or marketing and direct outreach to perform a site assessment. With a site assessment, CONSULTANT will identify eligible measures to be installed at the residential property via the TI Program, as well as estimated project cost. CONSULTANT will advise and support customers throughout the process of installing CITY-
approved measures and verifying quality installation.
A. Turnkey Installation Program Targets The parties will review the targets regularly to determine whether the Program is on target or whether the Program or goals require adjustment targets.
Term Year 1 Year 2 Year 3 Total Number of residences served
900 900
Table A-5 Turnkey Installation Program targets
B. Turnkey Installation Program Eligible Measures CONSULTANT will deliver energy savings and greenhouse gas emissions savings to customers through the turnkey installation of:
• “Turnkey Installation Program Eligible Measures” (measures listed in Table C-4 of
Exhibit “C,” Compensation)
All work completed by CONSULTANT under this Agreement must comply with the most recently adopted building and appliance efficiency standards. Only energy savings that are achieved in addition to the minimum energy savings mandated by Title 20 and Title 24 can be
counted towards program savings targets. CONSULTANT will provide CITY with the projected energy and water savings and supporting documentation for the savings estimates to CITY for all Turnkey Installation Eligible Measures as part of providing Eligible Measure list updates per Task C.1.10 and delivered according to Table 1 of Exhibit "B,” Schedule of Performance.
Projected energy and water savings must be based on sources such as the California Technical Forum (“CalTF”) electronic Technical Reference Manual (“eTRM”), California Public Utility Commission (“CPUC”) Database for Energy Efficiency Resources, City-approved workpapers, etc. If a program measure is not covered by any of these sources, the CONSULTANT will
1 Turnkey installation means start-to-finish installation of equipment, which includes a co-payment contribution
from the customer.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 57
Professional Services Rev. Dec.15, 2020 Page 38 of 62
provide the estimated energy savings and workpaper(s) or reference source documenting the savings estimation methodology for City review and approval. CONSULTANT will provide revised energy savings calculations and pricing upon CITY request.
C. Turnkey Installation Program Cost Allocation
CITY and customer will each pay a portion of the total installed costs of each Turnkey Installation Program Eligible Measure identified in Rows 1-6 of Table C-4 of Exhibit “C”. CITY will define customer payment amounts (“Customer Co-Payment”) in the Policies and Procedures
Manual (Task C.1.2). CITY’s portion of the total TIP Eligible Measures’ installed cost over the
Term will not exceed the Task C NTE of Table C-1, Exhibit C. All TIP Customer Co-Payment amounts and any other payments from participating customers related to their participation in the Turnkey Installation Program, including any extended
warranties or additional services customers may select, if applicable, will be included and clearly
disclosed in each customer’s Program Participation Agreement. D. Turnkey Installation Program Staffing
CONSULTANT agrees to staff the Program in accordance with the Staffing Plan set forth in
Table A-6. CONSULTANT shall notify the CITY concerning proposed changes to the staffing plan, and all such changes require the prior written consent of the CITY. CITY reserves the right to (i) request CONSULTANT conduct criminal background checks to
City’s satisfaction on all CONSULTANT’s staff, contractors or agents that may enter customer
property, and (ii) require that any staff, contractor or agent of CONSULTANT that fails the background check shall not be permitted to enter any customer premises. Table A-6 Turnkey Installation Program Staffing Plan
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 58
Professional Services Rev. Dec.15, 2020 Page 39 of 62
Name Title Phone Email
Kim DiCello
Sr. Program Director 415-965-3023 Kim.dicello@clearesult.com
Develops strategies and tactics to deliver effective program performance by directing the work of employees assigned to the program from technical, marketing, operations, analytics, and administrative areas.
Marc Bigby
Sr. Program Manager 925-297-5057 marc.bigby@clearesult.com
Responsible for overseeing the portfolio of downstream residential
programs in California and will instill best practices to enable the Program to be delivered within budget to meet Program goals.
Paul Koepke
Associate Program
Manager
650-226-4010
ext 2
paul.koepke@clearesult.com
Serves as primary point of contact for the CITY. Verifies the Program is
delivered within budget and is responsible for managing, training, and mentoring the implementation team.
Tony Jung
Sr. Residential
Auditor
650-226-4010
ext. 4 tony.jung@clearesult.com
BPI trained professional who will perform remote and in-person audits and
technical assistance
Robert Brigham
Sr. Field Manager 510-756-5776 robert.brigham@clearesult.com
General Contractor responsible for overseeing subcontracting and quality assurance for any direct installations of electrification technologies.
To Be Hired Residential Auditor N/A N/A
BPI trained professional who will perform remote and in-person audits and technical assistance
To Be Hired
Energy Advisor N/A N/A
Specialized customer support to provide technical assistance, facilitate the
customer journey, and enable enrollment in City programs.
To Be Hired
Operations Specialist N/A N/A
Desktop review, quality control, and operational support for rebate administration.
E. Turnkey Installation Program Implementation & Delivery TASK C.1 TURNKEY INSTALLATION PROGRAM PLANNING AND KICK OFF Task C.1.1 Program Kick-Off Meeting CONSULTANT will develop an agenda for the TI Program Kick-Off Meeting and organize the Kick-Off Meeting with CITY staff to review the TI Program design and delivery, roles, timelines and priorities. This meeting will also cover logistics, marketing, coordination,
measurement and verification activities, establishing workflow systems, invoicing
requirements, reports, and any remaining implementation questions. CONSULTANT will discuss with the CITY new technologies as potential TIP Eligible Measures, and where appropriate, refine timelines and identify additional CITY needs for the
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 59
Professional Services Rev. Dec.15, 2020 Page 40 of 62
TI Program. Task C.1.1 Deliverable: Meeting agenda and meeting minutes Task C.1.2 Update TI Program Policies and Procedures Manual
CONSULTANT will update the TI Program Policies and Procedures Manual, for use by CITY and CONSULTANT, which will include, at a minimum, the following: i. the terms and conditions for eligible customers to participate in the TI Program, including Customer Co-Payment amounts; ii. the process for customers to participate in the TI Program;
iii. the process for scheduling TI Program activities such as “TI Customer Site Assessments” and “TI Customer Site Assessment Reports” reviews with customers (Task C.2.2) iv. the process for performing “TI Customer Site Assessments” and identifying
potential TIP Eligible Measures and obtaining CITY approval for installation
(Tasks C.2.3 and C.2.4); v. the process for collecting customer payments for Customer Co-Payments and any other program-related costs to customer; vi. the process for installing TIP Eligible Measures, including a quality assurance
and quality control plan that ensures measures are installed and working properly
and customers are satisfied (Task C.2.5); vii. the process for delivering and obtaining completed “TI Project Completion and TI Customer Feedback” forms as part of a customer complaint and resolution plan (Task C.2.6);
viii. the process for managing and entering TI Program data, including but not limited
to that from the Customer Information System (“CIS”), into CITY’s program platform(s), such as the CITY’s Energy Efficiency Collaboration Platform (Tasks C.1.7 and C.3.1); ix. the process for providing “TI Program Reports” (Tasks C.1.8 and C.3.2);
x. the process for completing invoicing (Tasks C.1.9 and C.3.3);
CONSULTANT will submit a draft TI Program Policies and Procedures Manual to CITY for review and approval before finalizing and will provide written revisions and updates to the TI Program Policies and Procedures Manual upon CITY request. CONSULTANT will adhere
to and document its compliance with applicable policies and procedures in the TI Program
Policies and Procedures Manual as it performs the Services in this Scope of Work. Task C.1.2 Deliverable: TI Program Policies and Procedures Manual
Task C.1.3 Update TI Customer Site Assessment Report
CONSULTANT will update the TI Customer Site Assessment Report Template for CITY review and approval and will revise as directed by CITY before use. Once finalized and approved by CITY, the TI Customer Site Assessment Report will be provided by CONSULTANT to the customer and will include information necessary for the customer to
understand energy and water efficiency opportunities available to them under the City’s TI
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 60
Professional Services Rev. Dec.15, 2020 Page 41 of 62
Program. CONSULTANT will provide written revisions and updates to the TI Customer Site Assessment Report Template upon CITY request. TI Customer Site Assessments will include the following elements regarding equipment and
appliances located at the residential property owned or occupied by the customer interested
in exploring participation in the TI Program, each to be documented on the TI Customer Site Assessment Report Template: i. An inventory of physical conditions, age and estimated remaining lifespan(s) of equipment and appliances;
ii. Description of a work plan, including planned work and timeline, that will be
executed if customer opts to participate in the TI Program; iii. Estimated cost of work to be performed, for CITY’s review. At CITY’s discretion, the TI Customer Site Assessment may also include CONSULTANT’s
identification of building electrification opportunities. If directed by CITY, CONSULTANT
will include the following elements in the TI Customer Site Assessment, each to be documented on the TI Customer Site Assessment Report: i. Evaluation of the condition and capacity of the existing electrical systems and recommended upgrades that may be necessary to enable building electrification
upgrades;
ii. Recommended locations for new electrical equipment, noting any observed space or structural constraints and possible remedies. Task C.1.3 Deliverable: TI Customer Site Assessment Report Template
Task C.1.4 Update TI Customer Site Assessment Agreement CONSULTANT will update the TI Customer Site Assessment Agreement that includes the following, at a minimum:
i. Provides an overview of the TI Program;
ii. Grants CONSULTANT permission to perform the TI Customer Site Assessment to determine whether single-family or multifamily property is a good candidate for inclusion in the TI Program; iii. Fully indemnifies CITY against all loss, damages, costs and liability arising from
any claims stemming from the TI Customer Site Assessment;
iv. Collects basic information from the customer, including but not limited to customer contact information and installation address.
CONSULTANT will submit the TI Customer Site Assessment Agreement to CITY for
review and approval, and will revise and update the TI Customer Site Assessment Agreement, including adding additional elements, as directed by CITY before use. CONSULTANT will provide the TI Customer Site Assessment Agreement to customers in both electronic and paper formats. CONSULTANT will scan paper forms completed by
customers and submit them to CITY electronically, as well as in their original paper format.
Task C.1.4 Deliverable: TI Customer Site Assessment Agreement Template Task C.1.5 Update TI Program Participation Agreement
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 61
Professional Services Rev. Dec.15, 2020 Page 42 of 62
CONSULTANT will update a TI Program Participation Agreement that grants CONSULTANT permission to install TIP Eligible Measures, collect customer Co-Payments and any other program-related costs to customer, if applicable, and enroll customer in any
State or local financing programs. The TI Program Participation Agreement will include, at a
minimum, the following elements: i. Customer contact information; ii. Installation address; iii. Project scope;
iv. Project costs by line item, including, as well as customer’s sole responsibility for
any costs associated with them; v. Payment options available if customer opts to participate in the TI Program;
vi. Customer finance programs such as GoGreen Financing, payment amount, terms, and payment options available if customer opts to participate in the TI Program;
vii. Language specifying that only TI Program Eligible Measures are covered under
the TI Program Participation Agreement, and CITY is not responsible for any non-TI Program work, equipment, installations or warranties; viii. Language releasing CITY of liability for any claims stemming from the installed measure(s);
ix. Language and/or supplemental forms enrolling customers in any State or local
financing programs. CONSULTANT will submit the TI Program Participation Agreement to CITY for review and approval and will revise and update as directed by CITY before use. CONSULTANT will
provide the TI Program Participation Agreement to customers in both electronic and paper
formats. CONSULTANT will scan paper forms completed by customers and submit them to CITY electronically, as well as in their original paper format. Task C.1.5 Deliverable: TI Customer Program Participation Agreement Template
Task C.1.6 Update TI Project Completion and TI Customer Feedback Forms CONSULTANT will modify a TI Project Completion Form to be executed by customer attesting CONSULTANT’s installation of TIP Eligible Measures is completed and
operational to the customer’s satisfaction.
CONSULTANT will modify a TI Customer Feedback Form template. The TI Customer Feedback Form gives customers the opportunity to evaluate the TI Program, including the Site Assessment, the on-going customer support, and the overall customer experience
associated with the TI Program. The TI Customer Feedback Form must include, at minimum,
a question for the customer that enables CITY to calculate a Net Promotor Score value, which is a standardized metric used to assess customer satisfaction. CONSULTANT will submit the TI Project Completion Form and TI Customer Feedback
Form Templates to CITY for review and approval and will revise and update them as
directed by CITY before use. CONSULTANT will provide the TI Project Completion and TI Customer Feedback Forms to customers in both electronic and paper formats. CONSULTANT will scan paper forms completed by customers and submit them to CITY
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 62
Professional Services Rev. Dec.15, 2020 Page 43 of 62
electronically, as well as in their original paper format. Task C.1.6 Deliverable: TI Project Completion Form Template and TI Customer Feedback Form Template
Task C.1.7 Update Customer Information System CONSULTANT will provide CITY with a searchable, electronic customer information system (CIS). CITY will have access to the CIS to download program participation data and
information in an electronic format, such as .csv and .xls file formats, that can be easily
integrated with CITY program platforms, including but not limited to the City’s Energy Efficiency Collaboration Platform. CONSULTANT will enter project data, using information from the CIS, into CITY program platforms for program tracking, reporting, and invoicing.
CONSULTANT will design the CIS so that CITY staff will be able to access program data,
including the following elements: i. Customer contact information (name, address, phone, email) ii. Customer qualifications and program eligibility (income, etc.) iii. Customer status for receiving services (pending, completed, no customer
response)
iv. Scheduled and completed Site Assessments v. Existing equipment description (age, model, condition) vi. Site Assessment Report and recommendations provided vii. Customer job orders
viii. Installed equipment and measures (fixtures, quantity, wattage, cost, model)
ix. Installed equipment and measures costs x. Completed customer forms, as described in this Exhibit A (Site Assessment Agreement, Program Participation Agreement, Project Completion Form, Customer Feedback Form).
xi. Non-warranty and warranty related repair issues
xii. Program costs xiii. Energy and water savings xiv. Greenhouse gas (GHG) emissions avoided xv. Summary of customer compliments and/or complaints, and reasons for rejection
of proposed installations by customer.
xvi. Customer referrals to other programs xvii. Customer payments collected for Customer Co-Payments and any other program-related costs to customer; xviii. Records of customers’ warranties, if any.
CONSULTANT will revise and update the above list of program data to be included in the CIS as directed by CITY. CITY will own all customer information and program data. CONSULTANT will adhere to the CITY’s Exhibit F - Information Privacy Policy and
Exhibit G - Cybersecurity Terms and Conditions; specifically, CONSULTANT will protect
the confidentiality of all customer information and program data used, prevent any sale or release of such information and data to third parties, and ensure CITY has secure access to all customer information and data collected through the CIS
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 63
Professional Services Rev. Dec.15, 2020 Page 44 of 62
Task C.1.7 Deliverable: Customer Information System Task C.1.8 Update TI Program Report Template
CONSULTANT will create a standard TI Program Report template to meet CITY’s reporting
requirements. This TI Program Report will be delivered monthly, quarterly and annually. CONSULTANT will assist CITY in finalizing program performance metrics to include in the TI Program Reports. These metrics may include data specified in Task C.1.7, as directed by CITY. The TI Program Report will also provide summary statistics including, but not
limited to:
i. Number of pending and completed Site Assessments; ii. Number and type of measures installed; iii. Installed equipment and measure costs;
iv. Gross and net annual kWh savings;
v. Gross and net lifetime kWh savings; vi. Gross and net annual kW demand savings; vii. Gross and net lifetime kW demand savings; viii. Gross and net annual therms savings;
ix. Gross and net lifetime therms savings;
x. Gross and net annual greenhouse gas (GHG) emissions; xi. Gross and net lifetime GHG savings. CONSULTANT will submit the TI Program Report Template to CITY for review and
approval and will revise and update the TI Program Report Template as directed by CITY
before use. Task C.1.8 Deliverable: TI Program Report Template
Task C.1.9 Update TI Program Invoice Template
CONSULTANT will create a standard TI Program Invoice Template to meet CITY’s invoicing requirements, including, but not limited to: i. name of company providing invoice (Synergy);
ii. invoice number;
iii. invoice date; iv. Synergy’s remit-to address for invoicing; v. invoice amount, broken out as directed by Project Manager; vi. description of work.
CONSULTANT will submit the TI Program Invoice Template to CITY for review and approval and will revise and update the TI Program Invoice Template as directed by CITY before use.
Task C.1.9 Deliverable: TI Program Invoice Template
Task C.1.10 Provide Eligible Measure List Updates
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 64
Professional Services Rev. Dec.15, 2020 Page 45 of 62
Within thirty days of CITY’s Notice to Proceed (NTP) for Task C, CONSULTANT will use Template C-1 to update Table C-4, if necessary. CONSULTANT may propose additional measures or services. Turnkey Installation Program Eligible Measures and Pricing shall be negotiated and agreed to in writing via email by the CITY’s Project Manager and
CONSULTANT prior to commencement of the Program.
Sixty days before the start of each fiscal year, or as requested by CITY but no more than two (2) times per fiscal year, CONSULTANT will use Template C-1 to provide to the CITY proposed updates of Table C-4 for CITY review and approval. The proposed tables will
include any new TIP Eligible Measures proposed by CITY or CONSULTANT as well as
changes to the Effective Period that reflect measures no longer offered. Task C.1.10 Deliverable: TIP Eligible Measure List Updates
Task C.1.11 Enroll in State or Local Financing Programs CONSULTANT will enroll in GoGreen Financing, the public-facing platform of the California Hub for Energy Efficiency Financing, as a qualified contractor to provide energy
efficiency and electrification installation services in Santa Clara County. When
CONSULTANT is successfully enrolled in GoGreen Financing, CONSULTANT will provide CITY a link to the public-facing financing program website for Santa Clara County documenting CONSULTANT’s enrollment or provide CITY with a letter certifying CONSULTANT’s enrollment in the program in Santa Clara County.
If directed by CITY, CONSULTANT will enroll in additional financing programs or enlist third-party financial partners, such as National Energy Improvement Fund, to provide lending services.
CONSULTANT will update the TI Program Participation Agreement (Task C.1.5) with
financing programs which CONSULTANT is enrolled in and promote these financing programs to customers participating in the TI Program. Task C.1.11 Deliverable Listing on public-facing financing program website or letters
certifying CONSULTANT’s enrollment TASK C.2 - PROGRAM IMPLEMENTATION Task C.2.1 Implement Marketing and Outreach Activities
CONSULTANT will market CITY programs as directed by the CITY’s Project Manager. Task C.2.2 Develop Schedule of Activities
CONSULTANT will develop a Schedule of Activities including a work plan and
implementation timeline for CONSULTANT’s TI Program activities with CITY customers for CITY review and approval. CONSULTANT will notify CITY’s Project Manager of any delays to the implementation timeline. CONSULTANT will revise and update the Schedule of Activities as directed by CITY before use.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 65
Professional Services Rev. Dec.15, 2020 Page 46 of 62
Task C.2.2 Deliverable: Monthly Schedule of Activities Task C.2.3 Perform TI Customer Site Assessments and Deliver TI Customer Site
Assessment Report
CONSULTANT will: 1) Respond to customers by email and/or phone within two (2) business days of receiving a
customer referral or being contacted by customer, whichever comes first, to schedule a TI
Customer Site Assessment. 2) Collect all data necessary during the TI Customer Site Assessment visit to develop the TI Customer Site Assessment Report (Task C.1.3). 3) Update Customer Information System (Task C.1.7) and CITY’s program platform with
data gathered from the TI Customer Site Assessment for inclusion in the Program Report
(Task C.1.8). 4) Deliver a completed TI Customer Site Assessment Report and a detailed estimate of proposed projects to CITY staff for review 5) Once work is approved by CITY, deliver a completed TI Customer Site Assessment
Report and detailed estimate of proposed projects to the customer. CONSULTANT will
offer to review the report with the customer in person or by phone, as the customer prefers, to explain the findings, address any questions, and begin planning any program installations. 6) Promote CITY's other energy efficiency, demand response, renewable energy and water
program offerings to maximize benefit to customers, which is intended to result in
referrals to other CITY programs or services. CONSULTANT will direct customers to appropriate CITY resources or vendors to answer questions regarding other CITY programs. CONSULTANT may not offer, solicit or provide any non-CITY/CPAU programs or services under this Agreement.
CITY reserves right to accompany CONSULTANT during TI Customer Site Assessment visits or join CONSULTANT’S review of the TI Customer Site Assessment Report (Task C.1.3) with customer.
Task C.2.4 Execute TI Program Participation Agreement, Collect Customer Payments, and
Enroll Customers in Financing Programs After completing Task C.2.3 with the customer, CONSULTANT will: 1) Provide an unsigned version of the TI Program Participation Agreement (Task C.1.5) to
CITY for review and approval before presenting to customer;
2) As necessary, CONSULTANT will coordinate with the customer to correct any errors or omissions identified by CITY in the TI Program Participation Agreement; 3) Upon CITY approval, provide the TI Program Participation Agreement (Task C.1.5) to the customer and obtain customer’s signature;
4) Assist customer in understanding any payments that are the customer’s responsibility,
such as Customer Co-Payments; 5) Assist customer in understanding CITY-approved financing programs, options, and payment terms
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 66
Professional Services Rev. Dec.15, 2020 Page 47 of 62
6) Return fully executed (by CONSULTANT and customer) copies of TI Program Participation Agreement to CITY for review. 7) Collect any customer payments including Customer Co-Payments. 8) Assist interested customers with enrollment in any CITY-approved State or local
financing programs (Task C.1.11).
9) After CITY review and approval of the executed TI Program Participation Agreement, CITY will issue a notice to proceed for CONSULTANT to begin installation work. Task C.2.5 Install Measures and Provide Post-Installation Quality Control
Upon CITY’s notice to proceed for CONSULTANT to begin installation work, CONSULTANT will: 1) Apply for and obtain any required permits on the customer’s behalf. 2) Install TIP Eligible Measures identified in the executed TI Program Participation
Agreement.
a. CONSULTANT will hold the appropriate license(s) for any installation and work performed under this Agreement. All equipment must be installed in accordance with all applicable federal, state, and local laws, building codes, manufacturer’s specifications, and permitting requirements.
b. CONSULTANT will notify CITY Project Manager of any delays which may
result in an installation start date later than 120 days from the CITY’s issuance of the notice to proceed. 3) Implement the Quality Assurance and Quality Control Plan to verify each project has been installed properly and documented accurately.
4) Within ten (10) business days of TI Eligible Measure installation, assist customers in
understanding equipment operation, including programming and performing preventative maintenance for any Eligible Measures installed under the TI Program; 5) Remain available throughout the installation process to answer questions from customers or CITY about projects. As needed, CONSULTANT will direct customers to appropriate
CITY resources or vendors for questions related to other CITY programs.
CONSULTANT may not offer, solicit or provide any non-CITY/CPAU programs or services under this Agreement. 6) Obtain final inspections and complete the job closure paperwork for all installed measures.
7) Provide the TI Project Completion Form to customer for the customer to attest whether
the installation and operation of TIP Eligible Measures is acceptable and satisfactory. 8) Obtain the customer’s completed TI Project Completion Form and return copies to CITY. 9) Update Customer Information System (Task C.1.7) and CITY’s program platform with completed project installation data and invoice information for inclusion in the TI
Program Report (Task C.1.8) and TI Program Invoice (Task C.1.9)
10) Provide customers, at a minimum, a one (1) year warranty for all measures installed under the TI Program, effective from the date of installation. CONSULTANT will ensure that all manufacturer product warranties held by CONSULTANT will be transferred to the customer upon installation.
CITY reserves the right to accompany CONSULTANT during project installation and final inspection.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 67
Professional Services Rev. Dec.15, 2020 Page 48 of 62
Task C.2.6 Provide Customer Service, Feedback and Issue Resolution CONSULTANT will provide a dedicated phone number available on customer-facing materials as directed by CITY for all CITY customer contacts to schedule Site Assessments,
provide program information, and answer customer inquiries during normal business hours,
Monday through Friday between 8 AM – 5 PM local time. CONSULTANT will request customer feedback as described in TI Customer Feedback Form (Task C.1.5). CONSULTANT will enter customer feedback data into CITY’s chosen
platform. CONSULTANT will provide monthly customer feedback results to CITY in
CONSULTANT’s monthly invoicing and reporting. CONSULTANT will address and attempt to resolve all customer issues discovered through either survey feedback or other means of customer contact within five (5) business days of
receiving feedback. CONSULTANT will document all such customer issues, actions taken to
resolve them, and outcomes and report them to CITY. If CONSULTANT cannot resolve program-related issues to the customer’s satisfaction within five (5) business days, CONSULTANT will immediately provide CITY with a detailed description of each complaint, including the customer’s name and contact information and any other information
requested by CITY.
CONSULTANT will pursue continuous improvements in delivery of Services provided under this Agreement to customers to drive customer satisfaction and will revise its processes, procedures and documents as directed by CITY to ensure customer satisfaction.
Customer feedback issues will be tracked by CONSULTANT using the monthly reports, as
well as a completed TI Customer Feedback Form (Task C.1.6). CITY may separately survey TI Program participants regarding CONSULTANT’s performance. TASK C.3 – TURNKEY INSTALLATION PROGRAM INVOICING AND REPORTING
Task C.3.1 Data Management CONSULTANT will utilize the Customer Information System (Task C.1.7) to provide data tracking, analysis and reporting. CONSULTANT will utilize the Customer Information
System to update the CITY’s program platform with project information gathered from TI
Customer Site Assessments and completed project installations. CONSULTANT will track detailed customer information such as barriers and motivations as well as planned future upgrades to support ongoing TI Program operations.
CONSULTANT will respond to CITY’s written data requests within 30 calendar days to
meet evaluation, measurement, and verification (“EM&V”) and other regulatory requirements. Task C.3.2 Reporting
CONSULTANT will provide completed TI Program Reports to CITY on CITY-approved reporting templates (Task C.1.8) on a monthly basis.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 68
Professional Services Rev. Dec.15, 2020 Page 49 of 62
TI Program Reports are critical to the success of the programs described herein, and therefore CONSULTANT’s timely submittal of complete and accurate TI Program Reports is required in order for CONSULTANT to receive payments under this Agreement.
Task C.3.3 Invoicing
Using the TI Program Invoice Template (Task C.1.9), CONSULTANT will invoice CITY on a monthly basis consistent with Section 5 of the Agreement and in accordance with the specific guidelines set forth in this Exhibit “A,” Task C.1.9, and in Exhibit “C”,
“Compensation” through the CITY’s designated submission approach or system.
Proper record-keeping is critical for the success of the programs described herein. As such, CONSULTANT must timely and accurately provide the following elements in order to receive payment for Services under this Agreement:
i. Completed TI Program Invoice Template;
ii. Executed TI Customer Site Assessment Agreement for each project; iii. Executed TI Program Participation Agreement for each project; iv. Executed TI Project Completion Form for each project; v. Completed TI Customer Feedback Form for each project;
vi. Completed project installation and invoice information for each project entered
into CITY program platform. TASK C.4 – TURNKEY INSTALLATION PROGRAM CLOSE OUT
Task C.4.1 Resolve Outstanding Jobs in Progress
CONSULTANT will complete all outstanding projects in progress and resolve any complaints from previously completed projects as a prerequisite for CITY to process CONSULTANT’s invoices.
Task C.4.2 Develop and Submit TI Program Final Report CONSULTANT will submit a “TI Program Final Report”, which includes a written overview of the TI Program and a spreadsheet detailing the budgeted and actual TI Program costs. The
TI Program Final Report will include TI Program achievements, challenges, goals, and
lessons learned. CONSULTANT will deliver the TI Program Final Report within 30 calendar days before the end of the Term. Task C.4.2 Deliverable: TI Program Final Report
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 69
Professional Services Rev. Dec.15, 2020 Page 50 of 62
(Optional – ONLY for On Call Agreements OR Agreements with an Additional Services amount) EXHIBIT A-1
PROFESSIONAL SERVICES TASK ORDER
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical
and supporting personnel required by this Task Order as described below.
CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE):
1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________ 5. BUDGET CODE_______________
COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A)
MUST INCLUDE:
SERVICES AND DELIVERABLES TO BE PROVIDED
SCHEDULE OF PERFORMANCE
MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)
REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________
I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 70
Professional Services Rev. Dec.15, 2020 Page 51 of 62
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).
Table 1 – Home Efficiency Genie (HEG) Program Schedule of Performance
Task Due Date
Task A.1 HEG Program Planning and Kick Off A.1.1 Program Kick-Off Meeting Within 15 days of NTP
A.1.2 Develop HEG Program Policies and Procedures Manual Within 30 days of NTP
A.1.3 Update Home Assessment Agreement Within 30 days of NTP A.1.4 Update Virtual, In-Home, and Advanced In-Home Home Assessment Report Templates Within 30 days of NTP
A.1.5 Update HEG Program Report Template Within 30 days of NTP
A.1.6 Update HEG Program Invoice Template Within 30 days of NTP
A.1.7 Update HEG Customer Feedback Forms Within 30 days of NTP
A.1.8 Update Trade Ally Participation Agreement Within 30 days of NTP
A.1.9 Update Trade Ally Feedback Forms Within 30 days of NTP
A.1.10 Host Ongoing Program Implementation Meetings Ongoing
Task A.2. HEG Program Marketing
A.2.1 Implement Marketing and Outreach Activities Ongoing
Task A.3 Energy and Water Advising Services Implementation
A.3.1 Recruit, Hire, and Train Energy Advisors and Residential Auditors Within 30 days of NTP
A.3.2 Provide Energy and Water Advising Services to General Inquiry Customers Ongoing
A.3.3 Provide Energy and Water Advising Services to Home Assessment Customers Ongoing
A.3.4 Provide Energy and Water Advising to Case Management Customers Ongoing
A.3.5 Provide Advising Services to Advanced Heat Pump Water Heater Pilot Program Customers Ongoing
A.3.6. Provide Supporting Services Ongoing
Task A.4 Home Efficiency and Electrification Assessment Implementation
A.4.1 Enroll Customers for Home Assessments Ongoing
A.4.2 Perform Virtual, In-Home, and Advanced In-Home Home Assessments Ongoing
A.4.3 Complete Home Assessment Reports Ongoing
Task A.5 Trade Ally Management
A.5.1 Recruit, Enroll, and Manage Trade Allies Within 60 days of NTP
A.5.2 Onboard and Host Training(s) for Trade Allies Ongoing
A.5.3 Provide Project Advising to Trade Allies Ongoing
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 71
Professional Services Rev. Dec.15, 2020 Page 52 of 62
A.5.4 Support Trade Allies’ Outreach to Customers Ongoing Task A.6 Customer Feedback
A.6.1 Provide Customer Service, Feedback, and Issue Resolution Ongoing
Task A.7 HEG Program Invoicing and Reporting
A.7.1 Data Management Ongoing A.7.2 Reporting 15th of each month
A.7.3 Invoicing 15th of each month
Task A.8 HEG Program Closeout
A.8.1 Resolve Outstanding Jobs in Progress Within 30 days of end of Term
A.8.2 Develop and Submit Final Program Report Within 30 days of end of Term
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 72
Professional Services Rev. Dec.15, 2020 Page 53 of 62
Table 2 – Rebate Administration Program Services Schedule of Performance
Task Due Date
Task B.1 Residential Rebate Services Planning B.1.1 Program Kick-Off Meeting Within 15 days of NTP
B.1.2 Develop RR Program Invoice Template Within 30 days of NTP
Task B.2 Residential Rebate Eligible Measures List B.2.1 Develop Residential Rebate Eligible Measure List Within 30 days of NTP of Task B.2
Task B.3 Residential Rebate Program Support
B.3.1 Review Customer Applications for Reserving Rebates Within 3 days of NTP of
Task B.3
B.3.2 Review Customer Installation Results for Processing
Rebate Payments
Ongoing
B.3.3 Submit Approved Projects for Payment Ongoing
B.3.4 Update Residential Rebate Eligible Measure List Ongoing
B.3.5 Quality Control and Quality Assurance Ongoing
B.3.6 Troubleshoot and Update Rebate Platform Ongoing
Task B.4 Rebate Administration Platform Development B.4.1 Develop Rebate Administration Platform Within 120 days of NTP of Task B.4
B.4.2 Rebate Administration Platform Technical Services Ongoing
B.4.3 Develop Residential Rebate Platform Report Template Within 120 days of NTP
of Task B.4
B.4.4 Develop Customer Feedback Form Within 120 days of NTP
of Task B.4
Task B.5 Residential Rebate Services Data Management and Invoicing B.5.1 Data Management Ongoing
B.5.2 Invoicing 15th of each month
Task B.6 Residential Rebate Services Close Out
B.6.1 Resolve Outstanding Jobs in Progress Ongoing
B.6.2 Develop and Submit Final Program Report Within 30 days of end of Term
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 73
Professional Services Rev. Dec.15, 2020 Page 54 of 62
Table 3 – Turnkey Installation Program Schedule of Performance Task Due Date
Task C.1 Turnkey Installation Program Planning and Kick Off
C.1.1 Program Kick-Off Meeting Within 15 days of NTP
C.1.2 Update TI Program Policies and Procedures Manual Within 30 days of NTP
C.1.3 Update TI Customer Site Assessment Report Within 30 days of NTP
C.1.4 Update TI Customer Site Assessment Agreement Within 30 days of NTP C.1.5 Update TI Program Participation Agreement Within 30 days of NTP
C.1.6 Update TI Project Completion and TI Customer Feedback
Forms
Within 30 days of NTP
C.1.7 Update Customer Information System Within 30 days of NTP
C.1.8 Update TI Program Report Template Within 30 days of NTP C.1.9 Update TI Program Invoice Template Within 30 days of NTP
C.1.10 Provide Eligible Measure List Updates Within 30 days of NTP
C.1.11 Enroll in State or Local Financing Programs Within 30 days of NTP Task C.2. Turnkey Installation Program Implementation
C.2.1 Implement Marketing and Outreach Activities Ongoing
C.2.2 Develop Schedule of Activities Ongoing
C.2.3 Perform TI Customer Site Assessments and Deliver TI Customer Site Assessment Report Ongoing
C.2.4 Execute TI Program Participation Agreement, Collect Customer Payments, and Enroll Customers in Financing Programs
Ongoing
C.2.5 Install Measures and Provide Post-Installation Quality Control Ongoing
C.2.6 Provide Customer Service, Feedback and Issue Resolution Ongoing
Task C.3 Turnkey Installation Program Invoicing and Reporting
C.3.1 Data Management Ongoing
C.3.2 Reporting 15th of each month C.3.3 Invoicing 15th of each month
Task C.4 Turnkey Installation Program Close Out
C.4.1 Resolve Outstanding Jobs in Progress Ongoing
C.4.2 Develop and Submit TI Program Final Report Within 30 days of end of Term
☒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.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 74
Professional Services Rev. Dec.15, 2020 Page 55 of 62
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 this Exhibit C.
The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit “A” (“Basic Services”) shall not exceed Two Million Seven Hundred and Forty Thousand Dollars Four Hundred ($2,740,400) for the Term of the Agreement and as set forth in Table C-1. Table C-1 sets forth the not-to-exceed (NTE) price for completing price per task,
and such not to exceed amounts include all of CONSULTANT’s costs, including, without
limitation, administrative costs, marketing/outreach costs, and direct implementation (materials and labor) costs. The CONSULTANT shall provide Additional Services only by advanced, written authorization from the CITY, as described in Section 4. Payment for Additional Services is subject to all requirements and restrictions in this Agreement.
CONSULTANT understands that CONSULANT’s receipt of compensation under this Agreement will depend on: i) the number of customers who opt to participate in the Home Efficiency Genie Program; ii) the level of Residential Rebate Services requested by CITY; and iii) whether CITY provides written authorization to implement the Turnkey Installation Program
and the number of customers who opt to participate in the Turnkey Installation Program.
CONSULTANT must also satisfactorily complete invoicing activities as described in Exhibit A, Tasks A.7.3, B.5.2, and C.3.3. CITY makes no guarantee, express or implied, regarding the number of customers who will participate in programs or services covered by this Agreement.
The following Tasks have annual not-to-exceed (NTE) amounts defined in Table C-1:
i. Energy and Water Advising Services, Marketing, and Trade Ally Management;
ii. Home Efficiency and Electrification Assessments;
iii. Residential Rebate Administration Platform Development;
iv. Residential Rebate Administration Platform Technical Services.
The following Tasks have a total NTE amount over the Term of the Agreement defined in Table C-1:
i. Advanced Heat Pump Water Heater Pilot Advising Services;
ii. Development of Residential Rebate Eligible Measure List;
iii. Development of Residential Rebate Administration Platform;
iv. Turnkey Installation Program.
Any work performed or expenses incurred for which payment would result in a total amount exceeding the annual NTE amount of compensation set forth in Table C-1 shall be at no cost to the CITY.
The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks listed below provided the total compensation for Basic Services, including reimbursable expenses, and the total compensation for Additional Services do not exceed Two Million Nine Hundred and Forty Thousand Four Hundred Dollars ($2,940,400) for the
Term of the Agreement, as set forth in Section 4 of this Agreement. CONSULTANT agrees to complete all Services within the amounts set forth in Section 4.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 75
Professional Services Rev. Dec.15, 2020 Page 56 of 62
Table C-1 – Total Compensation Not to Exceed (NTE) Amounts
Task Subtasks Year 1
NTE
Year 2
NTE
Year 3
NTE
Year 4 NTE Total
NTE
Task A: Home Efficiency Genie Program
Energy and Water Advising Services, Marketing, and Trade Ally Management
$250,000 $250,000 $250,000 $250,000 $1,000,000
Advanced Heat Pump Water Heater Pilot Advising Services $270,000 $270,000
Home Efficiency and Electrification Assessments $160,000 $160,000 $160,000 $160,000 $640,000
Task B: Residential Rebate Program Services
Residential Rebate Eligible Measure List $7,500 $7,500
Residential Rebate Program Support $50,000 $50,000 $50,000 $50,000 $200,000
Rebate Administration Platform Development $75,700 $75,700
Rebate Administration Platform Technical Services $11,800 $11,800 $11,800 $11,800 $47,200
Task C: Turnkey Installation Program $500,000 $500,000
Total Task A-C NTE $2,740,400
Additional Services $50,000 $50,000 $50,000 $50,000 $200,000
Maximum Total NTE $2,940,400
Task A Home Efficiency Genie Program Compensation CITY will compensate CONSULTANT for Energy and Water Advising Services, Marketing, and Trade Ally Management based on the hourly rates as set forth in Table C-2, up to NTE
amounts listed in Table C-1.
CITY will compensate CONSULTANT for Advanced Heat Pump Water Heater Pilot Advising Services based on the hourly rates as set forth in Table C-2, up to the NTE amounts listed in Table C-1.
CITY will compensate CONSULTANT the fixed price per Home Assessment (as described in Table C-3) performed by CONSULTANT and approved by CITY, up to the NTE amounts listed in Table C-1.
Task B Residential Rebate Services Compensation
CITY will compensate CONSULTANT for Residential Rebate Program Support based on the hourly rates as set forth in Table C-2 up to the NTE amounts listed in Table C-1. In addition to the NTE amount listed in Table C-1, compensation for Tasks B.3.1, B.3.2. and B.3.3 have an additional cost/hours limitation. Specifically, CONSULTANT may only process rebate
applications for Tasks B.3.1, B.3.2. and B.3.3 up to a maximum of one and three quarters (1.75)
hours per rebate application. CONSULTANT must receive CITY’s approval to process rebate applications that exceed the maximum hours. Upon mutual agreement on scope and price, with written authorization from the CITY in writing
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 76
Professional Services Rev. Dec.15, 2020 Page 57 of 62
via email, and with CITY’s approval of Residential Rebate Eligible Measure List, CITY will compensate CONSULTANT a fixed price, not exceeding that shown in Table C-1, for CONSULTANT’s development of Residential Rebate Eligible Measure List.
Upon mutual agreement on scope and price, with written authorization from the CITY in writing
via email, CITY will compensate CONSULTANT a fixed price, not exceeding that shown in Table C-1, for CONSULTANT’s development of a Rebate Administration Platform. City will compensate CONSULTANT for development of the Rebate Administration Platform once CITY has determined that CONSULTANT’s Rebate Administration Platform can be successfully used
to process CITY customers’ rebates. Also at the time CITY determines Rebate Administration
Platform can be successfully used to process CITY customers’ rebates, CONSULTANT will commence submitting bi-annual invoices for 50% of annual Technical Services fees, not exceeding the amount shown in Table C-1.
Task C Turnkey Installation Program Compensation
If authorized by the CITY in writing via email, CONSULTANT will leverage its technical expertise and local experience to implement “Task C - Turnkey Installation Program” as set forth in Exhibit “A” Scope of Services.
Upon CITY approval of the updated Table C-4, CITY will compensate CONSULTANT on a
fixed price (the Cost per Unit) per Eligible Measure, installed by CONSULTANT and approved by CITY as set forth in Table C-4 Turnkey Installation Program Eligible Measure List. The figures set forth in Table C-4 includes all of CONSULTANT’s costs to perform all of the Services listed in this Agreement that correspond to that TI Program Eligible Measure, including,
without limitation, CONSULTANT’s administrative costs, marketing and outreach costs,
implementation (materials and labor) costs. No additional fees or charges will be required of CITY or its customers for CONSULTANT to perform the Services listed in this Agreement. The CITY bears no responsibility for any of CONSULTANT’s costs and/or compensation to
CONSULTANT associated with customer Co-Payments, or any other payments from
participating customers related to their participation in the Turnkey Installation Program, including any extended warranties or additional services customers may select. All such compensation will remain the sole the responsibility of customers who may elect to participate in the Turnkey Installation Program (see Exhibit A, Section III(c), “Turnkey Installation Program
Cost Allocation”).
Template C-1 Program Eligible Measure Cost Per Unit Summary
Measure Number
Eligible Measure Description
Unit of Measure Maximum Quantity per Home*
Measure Compensation Annual kWh savings
Annual kW savings
Annual Therm savings
Annual GHG savings
Expected Useful Life (EUL)
Source Effective Period Extended Parts and Labor Warranty Compensation Table C-2 Hourly Rates Position Year 1 Hourly Rate Year 2 Hourly Rate Year 3 Hourly Rate Year 4 Hourly Rate
Program Manager $154 $165 $173 $183
Residential Auditor $85 $90 $96 $102
Energy Advisor $80 $85 $90 $95 Operations Specialist $93 $99 $104 $110
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 77
Professional Services Rev. Dec.15, 2020 Page 58 of 62
Marketing Account Manager $120 $127 $135 $143
Designer / Copywriter / Editor $93 $98 $104 $110
Table C-3 Home Efficiency and Electrification Assessment Compensation Type of Assessment Year 1 Rate Year 2 Rate Year 3 Rate Year 4 Rate Virtual $450 $475 $500 $525
In-Home $650 $683 $716 $750
Advanced In-Home $750 $788 $827 $870
Table C-4 Turnkey Installation Program Eligible Measures
# Turnkey Installation Program Eligible Measure Market Segment Unit of Measure
Compensation for Installed Eligible Measure
1 Onsite assessment and recommendations SFm/MFm Household N/C1
2 Heat Pump Water Heater - 50 Gallon2 SFm/MFm Unit $6,750
3 Heat Pump Water Heater - 65 Gallon2 SFm/MFm Unit $7,500
4 Heat Pump Water Heater - 80 Gallon2 SFm/MFm Unit $8,250
5 Add circuit breaker to electrical panel/run a circuit SFm/MFm Unit $1,700
6 HPWH Permit Costs (Electrical & Plumbing) related to HPWH installation work2 SFm/MFm Unit Pass-through
1 Charge for Onsite assessment and recommendations is $250 if CONSULTANT does not install a heat pump water heater at the site.
2Work includes: remove existing gas water heater, properly dispose of the old water heater, cap the gas line, install an appliance circuit and disconnect (as required per manufacturer’s instruction), install the drain pan, install the heat pump water heater per manufacturer’s instruction based on location, install new safety straps, install venting per manufacturer’s instructions, install expansion tank, complete the job closure paperwork, photos & signatures, standard one (1) year labor warranty, and manufacturer's product warranty.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 78
Professional Services Rev. Dec.15, 2020 Page 1 of 62
EXHIBIT D INSURANCE REQUIREMENTS
CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN.
REQUIRED TYPE OF COVERAGE REQUIREMENT
MINIMUM LIMITS
EACH OCCURRENCE AGGREGATE
YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY
YES
GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY
BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED.
$1,000,000 $1,000,000 $1,000,000
$1,000,000 $1,000,000 $1,000,000
YES
AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED
BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED
$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
YES
PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE
ALL DAMAGES $1,000,000
YES
THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 79
Professional Services Rev. Dec.15, 2020 Page 2 of 62
B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 80
Professional Services Rev. Dec.15, 2020 Page 1 of 62
EXHIBIT E DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS This Exhibit shall apply only to a contract for public works construction, alteration, demolition,
repair or maintenance work, CITY will not accept a bid proposal from or enter into this Agreement
with CONSULTANT without proof that CONSULTANT and its listed subcontractors are registered with the California Department of Industrial Relations (“DIR”) to perform public work, subject to limited exceptions. City requires CONSULTANT and its listed subcontractors, if any, to comply with all applicable requirements of the California Labor Code including but not limited
to Labor Code Sections 1720 through 1861, and all applicable related regulations, including but
not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. This Exhibit E applies in addition to the provisions of Section 26 (Prevailing Wages and DIR Registration for Public Works Contracts) of the Agreement.
CITY provides notice to CONSULTANT of the requirements of California Labor Code Section
1771.1(a), which reads: “A contractor or subcontractor shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of
any contract for public work, as defined in this chapter, unless currently registered and qualified
to perform public work pursuant to Section 1725.5. It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract
is awarded.”
This Project is subject to compliance monitoring and enforcement by DIR. All contractors must be registered with DIR per Labor Code Section 1725.5 in order to submit a bid. All subcontractors must also be registered with DIR. No contractor or subcontractor may be awarded a contract for
public work on a public works project unless registered with DIR. Additional information
regarding public works and prevailing wage requirements is available on the DIR web site (see e.g. http://www.dir.ca.gov) as amended from time to time. CITY gives notice to CONSULTANT and its listed subcontractors that CONSULTANT is
required to post all job site notices prescribed by law or regulation.
CONSULTANT shall furnish certified payroll records directly to the Labor Commissioner (DIR) in accordance with Subchapter 3, Title 8 of the California Code of Regulations Section 16461 (8 CCR Section 16461).
CITY requires CONSULTANT and its listed subcontractors to comply with the requirements of Labor Code Section 1776, including but not limited to: Keep accurate payroll records, showing the name, address, social security number, work
classification, straight time and overtime hours worked each day and week, and the actual per diem
wages paid to each journeyman, apprentice, worker, or other employee employed by, respectively, CONSULTANT and its listed subcontractors, in connection with the Project.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 81
Professional Services Rev. Dec.15, 2020 Page 2 of 62
The payroll records shall be verified as true and correct and shall be certified and made available for inspection at all reasonable hours at the principal office of CONSULTANT and its listed subcontractors, respectively.
At the request of CITY, acting by its Project Manager, CONSULTANT and its listed
subcontractors shall make the certified payroll records available for inspection or furnished upon request to the CITY Project Manager within ten (10) days of receipt of CITY’s request. CITY requests CONSULTANT and its listed subcontractors to submit the certified
payroll records to CITY’s Project Manager at the end of each week during the Project.
If the certified payroll records are not provided as required within the 10-day period, then CONSULTANT and its listed subcontractors shall be subject to a penalty of one hundred dollars ($100.00) per calendar day, or portion thereof, for each worker, and CITY shall withhold the sum
total of penalties from the progress payment(s) then due and payable to CONSULTANT.
Inform CITY’s Project Manager of the location of CONSULTANT’s and its listed subcontractors’ payroll records (street address, city and county) at the commencement of the Project, and also provide notice to CITY’s Project Manager within five (5) business days of any change of location
of those payroll records.
Eight (8) hours labor constitutes a legal day’s work. CONSULTANT shall forfeit as a penalty to CITY, $25.00 for each worker employed in the execution of the Agreement by CONSULTANT or any subcontractor for each calendar day during which such worker is required or permitted to
work more than eight (8) hours in any one calendar day or forty (40) hours in any one calendar
week in violation of the provisions of the Labor Code, and in particular, Sections 1810 through 1815 thereof, except that work performed by employees of CONSULTANT or any subcontractor in excess of eight (8) hours per day, or forty (40) hours during any one week, shall be permitted upon compensation for all hours worked in excess of eight (8) hours per day, or forty (40) hours
per week, at not less than one and one-half (1&1/2) times the basic rate of pay, as provided in
Section 1815. CONSULTANT shall secure the payment of workers’ compensation to its employees as provided in Labor Code Sections 1860 and 3700 (Labor Code 1861). CONSULTANT shall sign and file
with the CITY a statutorily prescribed statement acknowledging its obligation to secure the
payment of workers’ compensation to its employees before beginning work (Labor Code 1861). CONSULTANT shall post job site notices per regulation (Labor Code 1771.4(a)(2)). CONSULTANT shall comply with the statutory requirements regarding employment of
apprentices including without limitation Labor Code Section 1777.5. The statutory provisions will
be enforced for penalties for failure to pay prevailing wages and for failure to comply with wage and hour laws.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 82
POLICY S
This polic
public in
stored an
“Users”)
complian
the City.
damage,
User, or
third par
report lo
procedur
employe
this poli
disciplina
with Fed
PURPOSE
Informat
proprieta
shall use
unauthor
use. Bec
to its se
exercise
procedur
PROCEDU
IT has ad
inform a
and the
this polic
TATEMENT
cy describes
nformation
nd transmitt
must main
nce of Non‐P
. The failure
liability or l
any person
rty vendors
oss, damage
re to their
e designate
icy and pro
ary or other
eral, Californ
E
tion pertain
ary capacitie
e best effort
rized acces
cause the Cit
ensitive natu
reasonable
re applies on
URES
dopted Infor
nd train aut
Standards. T
cy.
I
s the inform
(the “Non‐P
ted by the C
tain the acc
Public Inform
e to comply
oss in regar
who transac
, and other
or disclosur
supervisor
d by the City
ocedures, in
action impo
nia and City
ing to the
es, is a vital a
ts to protect
ss, availab
ty is require
ure and val
and approp
nly to an Aut
rmation Secu
horized use
The authori
Pa
NFORMATIO
ation securi
Public Infor
City of Palo
cessibility, a
mation creat
y with this
rd to the pro
cts business
r governme
e of Non‐Pu
or the Info
y’s Informat
ncluding th
osed or take
laws, ordina
business o
asset of the
t the inform
ility, altera
ed by applica
lue, an Aut
priate care
thorized Use
urity Standa
rs on the re
zed user sh
age 1 of 4
ON SECURITY
ty policy an
rmation”) cr
Alto (the “C
availability, c
ted, collecte
policy and
operty or rep
with the Cit
ntal agencie
blic Informa
ormation Se
tion Technol
e failure to
n by the City
ances, rules
of the City,
City. An Au
mation cover
ation, dest
able law to
horized Use
in conformi
er’s access to
rds (the “St
quirements
all comply w
PO
Y POLICY
d procedure
reated, coll
City”). City
confidential
d, processed
procedures
putation of t
ty, including
es. Authori
ation or othe
ecurity Man
logy Departm
o report th
y or other af
and regulat
acting in
thorized Use
red by this
truction, d
protect the
er of the N
ing to appli
o and use of
andards”) to
contained i
with the Sta
OLICY AND PRO
Revise
es for the pr
ected, proc
employees
ity, integrity
d, stored an
s could resu
the City, ano
g the City’s u
ized Users
er violation o
nager (the
ment (the “
he violation
ffected pers
ions.
both its go
er of Non‐Pu
policy and
isclosure,
Non‐Public
Non‐Public I
icable laws.
f Non‐Public
o enforce th
n this policy
andards, in c
OCEDURES 1‐
ed: December
rotection of
cessed, rece
and officials
y and regul
nd transmitte
ult in substa
other Autho
utility custom
are obligate
of this policy
“ISM”) or o
IT”). Violati
n, could inc
on in accord
overnmental
ublic Inform
procedures
modification
Information
nformation
This policy
Information
his policy. IT
y and proced
conjunction
‐63/IT
r 2017
non‐
eived,
s (the
atory
ed by
antial
orized
mers,
ed to
y and
other
on of
clude
dance
l and
ation
from
n or
n due
shall
y and
n.
T shall
dures
with
DocuSign Envelope ID: 897C8B83-065B-4577-825E-268F4B08F750
EXHIBIT F
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 83
POLICY AND PROCEDURES 1‐63/IT
Revised: December 2017
Page 2 of 4
A.Covered Equipment and Devices
This policy applies to all City‐approved, ‐owned or –leased computer network systems and
peripheral equipment (the “Equipment”), including any mobile communication device (the
“Device”), whether or not owned by an Authorized User, that may be used to create,
collect, process, store and transmit the Non‐Public Information.
B.Roles of Information Technology Department and Others
IT, including the Chief Information Officer (“CIO”) and the ISM, shall promote information
security awareness within the City government community, and shall receive and maintain
reports of incidents, malfunctions and threats to the City’s information technology assets,
which may have a security impact upon the City. The CIO and ISM are also responsible for
developing the Standards.
IT shall be responsible for the design, primary enforcement and maintenance of Non‐Public
Information security through education, training and other means. IT shall ensure that the
following control measures and standards are enabled on every Equipment and Device:
Limit physical and login access to the Equipment and the Devices to Authorized Users.
Maintain the most current software patches and anti‐virus software for the Equipment and
the Devices.
Enable and use host‐based firewalls, as available, to ensure the security of the Equipment
and the Device(s). Perform regular security scans on the Equipment and the Device(s).
C.User Access Control Requirements
1.Do not access Non‐Public Information except to the extent you have a need to do so
in order to perform your City duties.
2.Do not disclose or share Non‐Public Information with any person who does not have
both a right to access the Non‐Public Information and a need to do so in order to
perform their City duties.
3.Do not alter or destroy Non‐Public Information except to the extent you are
required or authorized to do so.
4.An Authorized User who has access to Non‐Public Information shall protect and
secure that information while the information is in his or her custody in a manner
that is consistent with applicable contract and legal requirements and restrictions
and is reasonable and appropriate to the level of risk, sensitivity or value the Non‐
Public Information has to the City.
5.An Authorized User shall maintain the accessibility, availability, confidentiality,
integrity and regulatory compliance of any Non‐Public Information that is created,
DocuSign Envelope ID: 897C8B83-065B-4577-825E-268F4B08F750DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 84
POLICY AND PROCEDURES 1‐63/IT
Revised: December 2017
Page 3 of 4
collected, processed, stored and transmitted by the City on a 24 hours‐per‐day, 7
days‐per‐week (“24/7”) basis.
6.An Authorized User shall maintain the protection of information assets from
malicious code, including viruses and malware by following the City’s incident
management procedures, including detection, prevention, isolation, and recovery
tools.
D.Equipment and Devices Security Control Requirements:
1.Secure your Equipment and Devices by using a screen saver or built‐in lock
feature when you are physically away from your office or other work space.
2.Restrict physical access 24/7 to your Equipment and Devices, in particular, your
laptop computer, by a lock and security cable, if the City makes them available.
3.Maintain possession of your Device(s) 24/7 and require a password or fingerprint
to access and use the Device(s).
4.Log out when you cease access and use of Equipment and Device(s).
5.Notify the IT Help Desk and the ISM immediately whenever you become aware
or suspect Non‐Public Information, passwords, or other access control
mechanisms have been compromised, disclosed, lost, or stolen.
6.Do not intentionally, recklessly or willfully alter, damage, or misuse any City‐
owned or –leased Equipment or Device.
7.The user shall comply with the Policy and the Standards whenever he or she uses
a City Owned Mobile Device (“COMD”) and or Employee‐Owned Mobile Devices,
also known as Bring Your Own Devices (“BYOD”) to conduct the City business.
8.BYODs and COMDs include smartphones, cell phones, tablets PCs (Androids,
iPads, etc.) and user‐own laptops. Only authorized BYOD shall have access to the
only authorized City’s application systems. The City reserves the right to provide
or withdraw access to the City infrastructure without notice.
E.Utilities’ Customer Identity and Credit Security
Federal regulations amending the Fair Credit Reporting Act, including the Fair and Accurate
Credit Transactions Act of 2003 (FACT Act), and the Red Flags Clarification Act of 2010,
protect the Non‐Public Information of customers of financial institutions, including utilities,
that are defined as “creditors.” These regulations require that consumer’s Non‐Public
Information, such as credit card data, Social Security Numbers, driver’s license numbers, or
similar data be secured by Authorized Users and within the City’s data management
systems. Authorized Users are required to report any suspected or real breach of Utilities
Non‐Public Information to the ISM immediately. The ISM will identify, detect, prevent and
mitigate the suspected, real or future breaches of security, as required by the regulations.
F.Violations and Enforcement
An Authorized User must report an actual or suspected violation of this policy and
procedures to his or her supervisor and IT. The City will not discipline an Authorized User
DocuSign Envelope ID: 897C8B83-065B-4577-825E-268F4B08F750DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 85
POLICY AND PROCEDURES 1‐63/IT
Revised: December 2017
Page 4 of 4
for making a good faith report of a potential violation of this policy and procedures or the
Standards.
A violation of this policy will be investigated by the appropriate City staff and if a violation is
established, disciplinary action up to termination from employment may result.
NOTE: Questions regarding this policy should be referred to the Information Technology
Department, as appropriate.
DocuSign Envelope ID: 897C8B83-065B-4577-825E-268F4B08F750DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 86
City of Palo Alto Information Security Document Version: V3.0 Doc: InfoSec 110
Page 1 of 3
EXHIBIT “G”
CYBERSECURITY TERMS AND CONDITIONS
In order to assure the privacy and security of the personal information of the City's customers and people who do business with the City, including, without limitation, vendors, utility customers, library patrons, and other individuals and companies, who are required to share such information with the City,
as a condition of receiving services from the City or selling goods and services to the City, including, without limitation, the Software as a Service services provider (the "Consultant") and its subcontractors, if any, including, without limitation, any Information Technology ("IT") infrastructure services provider,
shall design, install, provide, and maintain a secure IT environment, described below, while it renders and performs the Services and furnishes goods, if any, described in the Statement of Work, Exhibit B, to the extent any scope of work implicates the confidentiality and privacy of the personal information of
the City's customers. The Consultant shall fulfill the data and information security requirements (the "Requirements") set forth in Part A below.
A "secure IT environment" includes (a) the IT infrastructure, by which the Services are provided to the City, including connection to the City's IT systems; (b) the Consultant's operations and maintenance processes needed to support the environment, including disaster recovery and business continuity planning; and (c) the IT infrastructure performance monitoring services to ensure a secure and reliable environment and service availability to the City. "IT infrastructure" refers to the integrated framework, including, without limitation, data centers, computers, and database management devices, upon which digital networks operate.
In the event that, after the Effective Date, the Consultant reasonably determines that it cannot fulfill the Requirements, the Consultant shall promptly inform the City of its determination and submit, in writing, one or more alternate countermeasure options to the Requirements (the "Alternate Requirements" as
set forth in Part B), which may be accepted or rejected in the reasonable satisfaction of the Information Security Manager (the "ISM").
Part A. Requirements:
The Consultant shall at all times during the term of any contract between the City and the Consultant:
(a)Appoint or designate an employee, preferably an executive officer, as the security liaison to theCity with respect to the Services to be performed under this Agreement.(b)Comply with the City's Information Privacy Policy:(c) Have adopted and implemented information security and privacy policies that are documented,are accessible to the City, and conform to ISO 27001/2 – Information Security ManagementSystems (ISMS) Standards. See the following:http://www.iso.org/iso/home/store/catalogue_tc/catalogue_detail.htm?csnumber=42103http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm?csnumber=50297(d)Conduct routine data and information security compliance training of its personnel that isappropriate to their role.
(e)Develop and maintain detailed documentation of the IT infrastructure, including softwareversions and patch levels.(f)Develop an independently verifiable process, consistent with industry standards, for performing
professional and criminal background checks of its employees that (1) would permit verificationof employees' personal identity and employment status, and (2) would enable the immediatedenial of access to the City's confidential data and information by any of its employees who no
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 87
City of Palo Alto Information Security Document Version: V3.0 Doc: InfoSec 110
Page 2 of 3
longer would require access to that information or who are terminated. (g) Provide a list of IT infrastructure components in order to verify whether the Consultant has met or has failed to meet any objective terms and conditions. (h) Implement access accountability (identification and authentication) architecture and support role-based access control ("RBAC") and segregation of duties ("SoD") mechanisms for all personnel, systems, and Software used to provide the Services. "RBAC" refers to a computer systems security approach to restricting access only to authorized users. "SoD" is an approach that would require more than one individual to complete a security task in order to promote the detection and prevention of fraud and errors.
(i) Assist the City in undertaking annually an assessment to assure that: (1) all elements of the Services' environment design and deployment are known to the City, and (2) it has implemented measures in accordance with industry best practices applicable to secure coding and secure IT
architecture. (j) Provide and maintain secure intersystem communication paths that would ensure the confidentiality, integrity, and availability of the City's information. (k) Deploy and maintain IT system upgrades, patches and configurations conforming to current patch and/or release levels by not later than one (1) week after its date of release. Emergency security patches must be installed within 24 hours after its date of release. (l) Provide for the timely detection of, response to, and the reporting of security incidents, including on-going incident monitoring with logging.
(m) Notify the City within one (1) hour of detecting a security incident that results in the unauthorized access to or the misuse of the City's confidential data and information. (n) Inform the City that any third party service provider(s) meet(s) all of the Requirements. (o) Perform security self-audits on a regular basis and not less frequently than on a quarterly basis, and provide the required summary reports of those self-audits to the ISM on the annual anniversary date or any other date agreed to by the Parties.
(p) Accommodate, as practicable, and upon reasonable prior notice by the City, the City's performance of random site security audits at the Consultant's site(s), including the site(s) of a third-party service provider(s), as applicable. The scope of these audits will extend to the
Consultant's and its third-party service provider(s)' awareness of security policies and practices, systems configurations, access authentication and authorization, and incident detection and response. (q) Cooperate with the City to ensure that to the extent required by applicable laws, rules and regulations, and the Confidential Information will be accessible only by the Consultant and any authorized third-party service provider's personnel. (r) Perform regular, reliable secured backups of all data needed to maximize the availability of the Services. Adequately encrypt the City of Palo Alto's data, during the operational process, hosted
at rest, and the backup stage at the Vendors' environment (including Vendor's contracting organization's environment). (s) Maintain records relating to the Services for a period of three (3) years after the expiration or earlier termination of this Agreement and in a mutually agreeable storage medium. Within thirty (30) days after the effective date of expiration or earlier termination of this Agreement, all of those records relating to the performance of the Services shall be provided to the ISM.
(t) Maintain the Confidential Information in accordance with applicable federal, state, and local data and information privacy laws, rules, and regulations. (u) Encrypt the Confidential Information before delivering the same by electronic mail to the City and or any authorized recipient. (v) Provide Network Layer IP filtering services to allow access only from the City of Palo Alto's IP address to the Vendor environment (primarily hosted for the City of Palo Alto). (w) Offer a robust disaster recovery and business continuity (DR-BCP) solutions to the City for the systems and services the Vendor provides to the City.
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 88
City of Palo Alto Information Security Document Version: V3.0 Doc: InfoSec 110
Page 3 of 3
(x) Provide and support Single Sign-on (SSO) and Multifactor Authentication (MFA) solutions for authentication and authorization services from the "City's environment to the Vendor's environment," and Vendor's environment to the Vendor's cloud services/hosted environment." The Vendor shall allow two employees of the City to have superuser and super-admin access to the Vendor's IT environment, and a cloud-hosted IT environment belongs to the City. (y) Unless otherwise addressed in the Agreement, shall not hold the City liable for any direct, indirect or punitive damages whatsoever including, without limitation, damages for loss of use, data or profits, arising out of or in any way connected with the City's IT environment, including, without limitation, IT infrastructure communications.
(z) The Vendor must provide evidence of valid cyber liability insurance policy per the City’s EXHIBIT “D” INSURANCE REQUIREMENTS. Part B. Alternate Requirements:
DocuSign Envelope ID: 60C7557D-72BA-4CC4-8E7B-B26F4DF01D0E
3.a
Packet Pg. 89
City of Palo Alto (ID # 14895)
City Council Staff Report
Meeting Date: 12/5/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approve Contract C23185850 With Thomas Sarsfield for a Not-To-
Exceed Amount of $395,000 for a Term of Three Years to Provide a Tennis
Recreation Program
From: City Manager
Lead Department: Community Services
Recommendation
Staff recommends that City Council approve and authorize the City Manager to execute a
contract between the City of Palo Alto and Thomas Sarsfield, a sole proprietorship, for a not to
exceed amount of $395,000 over a three-year period to instruct a tennis program offered
through the City’s Recreation program and advertised in the Community Services Department’s
Enjoy! Catalog.
Background and Discussion
The Community Services Department (CSD) hosts athletic programs through the yearlong
recreation program. A tennis program is taught by an approved contractor to instruct youth
and adults in group classes, private lessons, and youth summer camps located at Mitchell and
Rinconada Parks. CSD strives to offer a variety of programs and services that are of high
quality, exciting, dynamic, and inclusive to all. The classes are made available for viewing in the
City’s ENJOY! Catalog, as well as on the City’s website on www.cityofpaloalto.org/enjoyonline
where customers can register for the classes.
CSD contracts with a tennis organization to instruct the tennis program. A CSD staff member
functions as the coordinator to work closely with the contractor to ensure that the correct
program information, descriptions, dates, and schedules are provided in a timely manner and
the tennis courts are reserved appropriately. The value of the contract has increased due to the
popularity of tennis in the last 2 ½ years. During the height of COVID-19 pandemic, tennis
classes were sought out because they were considered a safe sport for exercise. The number of
classes and camps have increased by more than 30% in the last 3 years, and even with the
increase in classes, tennis programs continue to fill quickly and build large waitlists. The existing
contract expires December 31, 2022; therefore, a formal solicitation was conducted.
RFP for Professional Services Contract Solicitation Process
4
Packet Pg. 90
City of Palo Alto Page 2
The RFP for the project was posted in PlanetBids, The City’s eProcurement platform.
Recreation Staff reached out to their recreational networking group, Peninsula Contract Instructor
Coordinators (PCIC), and were given five recommended tennis organizations. Purchasing Staff
also performed outreach to the solicitation and 423 more vendors were notified. The
solicitation was posted for 21 days, closing on September 8, 2022 at 3:00pm. Two proposals
were received. The City of Palo Alto’s tennis program is a very large-scale program and
requires a sizeable knowledgeable and flexible coaching staff. Our assumption is that there are
very few Bay Area Tennis programs that can meet the needs of our community in addition to
their current programming.
The proposals were evaluated and determined to be responsive to the criteria identified in the
RFP. Thomas Sarsfield was selected because of the quality and effectiveness of their services,
the experience of their large competent staff, prior record of performance with the City, and
their ability to provide future services. Thomas Sarsfield has been a consistent dependable
contractor working for the City of Palo Alto for over 15 years. He provides a highly sought out
program that continually meets the growing demands of the City. He offers instruction for
small children as young as five to introduce them to the game of tennis, through adults
interested in advanced instruction. Class sizes are small with six students enrolled in each class.
The existing revenue split the City currently shares with Thomas Sarsfield will be maintained,
with the City receiving 35% of the residential program rate and Thomas Sarsfield retaining 65%.
Thomas Sarsfield’s overall programming fee quote was 10% more than the other bidder, but
the revenue retained by the City will be a 50% greater contribution to the City’s revenue
budget. Additionally, the court rental payment for private lessons to the City will increase 40%
over the term of the new contract.
A summary of the solicitation process is below:
Table #: Summary of Request
for Proposal
Proposal Description Tennis Program RFP185850
Proposed Length of Project 3-year term
Number of Vendors Notified 428
Number of Proposal Packages
Downloaded
10
Total Days to Respond to
Proposal
21
Pre-Proposal Meeting No
Pre-Proposal Meeting Date None
Number of Proposals Received 2
Proposal Price Range Revenue paid to the contractor $92,000 - $103,000
Revenue retained by the City $39,000 - $80,000
4
Packet Pg. 91
City of Palo Alto Page 3
City shall pay Consultant 65% of residential rate
Public Link to Solicitation https://pbsystem.planetbids.com/hub/bm/bm-
detail/97298#bidInformation
Two proposals were returned and reviewed by Purchasing and forwarded on to Recreation for
final evaluation. The Evaluation Team was made up of four recreation staff and one CSD
analyst.
Resource Impact
The current annual expenditure plan is estimated to be $110,000 in program expenses in
calendar year 2023, $125,000 in 2024, and $135,000 in 2025, with a flexible contingency of
$25,000. These programs generate revenue based on court rental fees and revenue sharing,
and it is anticipated that cost recovery levels will remain high. Increases in revenue and
expenses will be based on the City’s annual adjustments in municipal fees as well as community
demand for tennis-related activities.
Although the COVID-19 pandemic is waning, the demand for outdoor programming is
continuing to increase and the Department continues to allocate resources to meet the needs
of the community. The FY 2023 Community Services Adopted Budget has sufficient funding to
absorb the increased cost of the tennis contract without additional budget actions. Funding for
the remaining term will be subject to Council’s adoption of future budgets, but it is anticipated
that current funding levels can support the contract in future years. Staff will reevaluate if any
revenue or expenditure adjustments are required as a part of the annual budget process.
In total, the City of Palo Alto has 52 tennis courts available for the community. The tennis
contract states that the same four courts will be used for tennis group and private lessons as
previous years, these courts include two of the seven courts at Mitchell Park and two of the
nine courts at Rinconada. As in previous years, summer camps require four courts at Rinconada
and three courts at Mitchell Park. Although group and private tennis lessons continue to fill at
capacity, Recreation continues to follow the City of Palo Alto’s Field and Court Use Policy by not
reserving more than 50% of courts at any site at one time, with the remaining 50% or more
available for unreserved use.
Stakeholder Engagement
The community has been very satisfied with the current tennis program. Registrations for all
classes fill with waiting lists. Students are also surveyed at the conclusion of their class or camp
and during the term of the existing contract. Thomas Sarsfield Tennis has an average response
of 4.4 out of 5 when answering the question, “Overall, how satisfied were you with the
program? (5 being the highest)”.
Environmental Review
This program does not constitute a Project as defined by the California Environmental Quality
Act.
4
Packet Pg. 92
City of Palo Alto Page 4
Attachments:
• Attachment4.a: Attachment A: C23185850 Whitlinger Sarsfield Tennis Final
4
Packet Pg. 93
City of Palo Alto General Services Agreement 1 Rev. March 29, 2018
CITY OF PALO ALTO CONTRACT NO. C23185850
GENERAL SERVICES AGREEMENT
THIS AGREEMENT made and entered into on the 5th day of December, 2022, by and
between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”),
and THOMAS SARSFIELD, a Sole Proprietor, located at P.O. Box 60534, Palo Alto, CA,
94306 Telephone Number: 408-745-6171 (“CONTRACTOR”). In consideration of their
mutual covenants, the parties hereto agree as follows:
1. SERVICES. CONTRACTOR shall provide or furnish the services (the “Services”)
described in the Scope of Services, attached at Exhibit A.
2. EXHIBITS. The following exhibits are attached to and made a part of this
Agreement:
“A” - Scope of Services
“B” - Schedule of Performance
“C” – Schedule of Fees
“D” - Insurance Requirements
CONTRACT IS NOT COMPLETE UNLESS ALL INDICATED EXHIBITS ARE ATTACHED.
3. TERM.
The term of this Agreement is from January 1, 2023 to December 31, 2025
inclusive, subject to the provisions of Sections R and W of the General Terms and
Conditions.
4. SCHEDULE OF PERFORMANCE. CONTRACTOR shall complete the Services within
the term of this Agreement in a reasonably prompt and timely manner based upon
the circumstances and direction communicated to CONTRACTOR, and if
applicable, in accordance with the schedule set forth in the Schedule of
Performance, attached at Exhibit B. Time is of the essence in this Agreement.
5. COMPENSATION FOR ORIGINAL TERM. CITY shall pay and CONTRACTOR agrees
to accept as not-to-exceed compensation for the full performance of the Services
and reimbursable expenses, if any:
A sum calculated in accordance with the fee schedule set forth at Exhibit
C, not to exceed a total maximum compensation amount of Three Hundred
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 94
City of Palo Alto General Services Agreement 2 Rev. March 29, 2018
Ninety Five Thousand dollars ($395,000.00).
CONTRACTOR agrees that it can perform the Services for an amount not to exceed
the total maximum compensation set forth above. Any hours worked or services
performed by CONTRACTOR for which payment would result in a total exceeding
the maximum amount of compensation set forth above for performance of the
Services shall be at no cost to CITY.
6. COMPENSATION DURING ADDITIONAL TERMS.
CONTRACTOR’S compensation rates for each additional term shall be the
same as the original term.
7. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of
this Section 7, a “9204 Public Works Project” means the erection, construction,
alteration, repair, or improvement of any public structure, building, road, or
other public improvement of any kind. Public Contract Code Section 9204
mandates certain claims procedures for Public Works Projects, which are set
forth in “Appendix __ Claims for Public Contract Code Section 9204 Public Works
Projects”.
This project is not a 9204 Public Works Project.
8. INVOICING. Send all invoices to CITY, Attention: Project Manager. The Project
Manager is: Margie Cain, Dept.: Community Services Department, Telephone:
(650) 463-4919. Invoices shall be submitted in arrears for Services performed.
Invoices shall not be submitted more frequently than monthly. Invoices shall
provide a detailed statement of Services performed during the invoice period and
are subject to verification by CITY. CITY shall pay the undisputed amount of
invoices within 30 days of receipt.
GENERAL TERMS AND CONDITIONS
A. ACCEPTANCE. CONTRACTOR accepts and agrees to all terms and conditions of
this Agreement. This Agreement includes and is limited to the terms and
conditions set forth in sections 1 through 8 above, these general terms and
conditions and the attached exhibits.
B. QUALIFICATIONS. CONTRACTOR represents and warrants that it has the expertise
and qualifications to complete the services described in Section 1 of this
Agreement, entitled “SERVICES,” and that every individual charged with the
performance of the services under this Agreement has sufficient skill and
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 95
City of Palo Alto General Services Agreement 3 Rev. March 29, 2018
experience and is duly licensed or certified, to the extent such licensing or
certification is required by law, to perform the Services. CITY expressly relies on
CONTRACTOR’s representations regarding its skills, knowledge, and certifications.
CONTRACTOR shall perform all work in accordance with generally accepted
business practices and performance standards of the industry, including all
federal, state, and local operation and safety regulations.
C. INDEPENDENT CONTRACTOR. It is understood and agreed that in the
performance of this Agreement, CONTRACTOR and any person employed by
CONTRACTOR shall at all times be considered an independent CONTRACTOR and
not an agent or employee of CITY. CONTRACTOR shall be responsible for
employing or engaging all persons necessary to complete the work required under
this Agreement.
D. SUBCONTRACTORS. CONTRACTOR may not use subcontractors to perform any
Services under this Agreement unless CONTRACTOR obtains prior written consent
of CITY. CONTRACTOR shall be solely responsible for directing the work of
approved subcontractors and for any compensation due to subcontractors.
E. TAXES AND CHARGES. CONTRACTOR shall be responsible for payment of all taxes,
fees, contributions or charges applicable to the conduct of CONTRACTOR’s
business.
F. COMPLIANCE WITH LAWS. CONTRACTOR shall in the performance of the Services
comply with all applicable federal, state and local laws, ordinances, regulations,
and orders.
G. PALO ALTO MINIMUM WAGE ORDINANCE. CONTRACTOR shall comply with all
requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum
Wage), as it may be amended from time to time. In particular, for any employee
otherwise entitled to the State minimum wage, who performs at least two (2)
hours of work in a calendar week within the geographic boundaries of the City,
CONTRACTOR shall pay such employees no less than the minimum wage set
forth in Palo Alto Municipal Code section 4.62.030 for each hour worked within
the geographic boundaries of the City of Palo Alto. In addition, CONTRACTOR
shall post notices regarding the Palo Alto Minimum Wage Ordinance in
accordance with Palo Alto Municipal Code section 4.62.060.
H. DAMAGE TO PUBLIC OR PRIVATE PROPERTY. CONTRACTOR shall, at its sole
expense, repair in kind, or as the City Manager or designee shall direct, any
damage to public or private property that occurs in connection with
CONTRACTOR’s performance of the Services. CITY may decline to approve and
may withhold payment in whole or in part to such extent as may be necessary to
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 96
City of Palo Alto General Services Agreement 4 Rev. March 29, 2018
protect CITY from loss because of defective work not remedied or other damage
to the CITY occurring in connection with CONTRACTOR’s performance of the
Services. CITY shall submit written documentation in support of such withholding
upon CONTRACTOR’s request. When the grounds described above are removed,
payment shall be made for amounts withheld because of them.
I. WARRANTIES. CONTRACTOR expressly warrants that all services provided under
this Agreement shall be performed in a professional and workmanlike manner in
accordance with generally accepted business practices and performance
standards of the industry and the requirements of this Agreement. CONTRACTOR
expressly warrants that all materials, goods and equipment provided by
CONTRACTOR under this Agreement shall be fit for the particular purpose
intended, shall be free from defects, and shall conform to the requirements of this
Agreement. CONTRACTOR agrees to promptly replace or correct any material or
service not in compliance with these warranties, including incomplete, inaccurate,
or defective material or service, at no further cost to CITY. The warranties set
forth in this section shall be in effect for a period of one year from completion of
the Services and shall survive the completion of the Services or termination of this
Agreement.
J. MONITORING OF SERVICES. CITY may monitor the Services performed under this
Agreement to determine whether CONTRACTOR’s work is completed in a
satisfactory manner and complies with the provisions of this Agreement.
K. CITY’S PROPERTY. Any reports, information, data or other material (including
copyright interests) developed, collected, assembled, prepared, or caused to be
prepared under this Agreement will become the property of CITY without
restriction or limitation upon their use and will not be made available to any
individual or organization by CONTRACTOR or its subcontractors, if any, without
the prior written approval of the City Manager.
L. AUDITS. CONTRACTOR agrees to permit CITY and its authorized representatives
to audit, at any reasonable time during the term of this Agreement and for three
(3) years from the date of final payment, CONTRACTOR’s records pertaining to
matters covered by this Agreement. CONTRACTOR agrees to maintain accurate
books and records in accordance with generally accepted accounting principles for
at least three (3) following the terms of this Agreement.
M. NO IMPLIED WAIVER. No payment, partial payment, acceptance, or partial
acceptance by CITY shall operate as a waiver on the part of CITY of any of its rights
under this Agreement.
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 97
City of Palo Alto General Services Agreement 5 Rev. March 29, 2018
N.INSURANCE. CONTRACTOR, at its sole cost, shall purchase and maintain in full
force during the term of this Agreement, the insurance coverage described at
Exhibit D. Insurance must be provided by companies with a Best’s Key Rating of A-
:VII or higher and which are otherwise acceptable to CITY’s Risk Manager. The Risk
Manager must approve deductibles and self-insured retentions. In addition, all
policies, endorsements, certificates and/or binders are subject to approval by the
Risk Manager as to form and content. CONTRACTOR shall obtain a policy
endorsement naming the City of Palo Alto as an additional insured under any
general liability or automobile policy. CONTRACTOR shall obtain an endorsement
stating that the insurance is primary coverage and will not be canceled or
materially reduced in coverage or limits until after providing 30 days prior written
notice of the cancellation or modification to the Risk Manager. CONTRACTOR shall
provide certificates of such policies or other evidence of coverage satisfactory to
the Risk Manager, together with the required endorsements and evidence of
payment of premiums, to CITY concurrently with the execution of this Agreement
and shall throughout the term of this Agreement provide current certificates
evidencing the required insurance coverages and endorsements to the Risk
Manager. CONTRACTOR shall include all subcontractors as insured under its
policies or shall obtain and provide to CITY separate certificates and endorsements
for each subcontractor that meet all the requirements of this section. The
procuring of such required policies of insurance shall not operate to limit
CONTRACTOR’s liability or obligation to indemnify CITY under this Agreement.
O.HOLD HARMLESS. To the fullest extent permitted by law and without limitation
by the provisions of section N relating to insurance, CONTRACTOR shall indemnify,
defend and hold harmless CITY, its Council members, officers, employees and
agents from and against any and all demands, claims, injuries, losses, or liabilities
of any nature, including death or injury to any person, property damage or any
other loss and including without limitation all damages, penalties, fines and
judgments, associated investigation and administrative expenses and defense
costs, including, but not limited to reasonable attorney’s fees, courts costs and
costs of alternative dispute resolution), arising out of, or resulting in any way from
or in connection with the performance of this Agreement. CONTRACTOR’s
obligations under this Section apply regardless of whether or not a liability is
caused or contributed to by any negligent (passive or active) act or omission of
CITY, except that CONTRACTOR shall not be obligated to indemnify for liability
arising from the sole negligence or willful misconduct of CITY. The acceptance of
the Services by CITY shall not operate as a waiver of the right of indemnification.
The provisions of this Section survive the completion of the Services or
termination of this Agreement.
P.NON-DISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.510,
CONTRACTOR certifies that in the performance of this Agreement, it shall not
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 98
City of Palo Alto General Services Agreement 6 Rev. March 29, 2018
discriminate in the employment of any person because of the race, skin color,
gender, age, religion, disability, national origin, ancestry, sexual orientation,
housing status, marital status, familial status, weight or height of such person.
CONTRACTOR acknowledges that it has read and understands the provisions of
Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination
Requirements and the penalties for violation thereof, and agrees to meet all
requirements of Section 2.30.510 pertaining to nondiscrimination in employment.
Q. WORKERS' COMPENSATION. CONTRACTOR, by executing this Agreement,
certifies that it is aware of the provisions of the Labor Code of the State of Califor-
nia which require every employer to be insured against liability for workers'
compensation or to undertake self-insurance in accordance with the provisions of
that Code, and certifies that it will comply with such provisions, as applicable,
before commencing and during the performance of the Services.
R. TERMINATION. The City Manager may terminate this Agreement without cause
by giving ten (10) days’ prior written notice thereof to CONTRACTOR. If
CONTRACTOR fails to perform any of its material obligations under this
Agreement, in addition to all other remedies provided by law, the City Manager
may terminate this Agreement immediately upon written notice of termination.
Upon receipt of such notice of termination, CONTRACTOR shall immediately
discontinue performance. CITY shall pay CONTRACTOR for services satisfactorily
performed up to the effective date of termination. If the termination is for cause,
CITY may deduct from such payment the amount of actual damage, if any,
sustained by CITY due to CONTRACTOR’s failure to perform its material obligations
under this Agreement. Upon termination, CONTRACTOR shall immediately deliver
to the City Manager any and all copies of studies, sketches, drawings,
computations, and other material or products, whether or not completed,
prepared by CONTRACTOR or given to CONTRACTOR, in connection with this
Agreement. Such materials shall become the property of CITY.
S. ASSIGNMENTS/CHANGES. This Agreement binds the parties and their successors
and assigns to all covenants of this Agreement. This Agreement shall not be
assigned or transferred without the prior written consent of CITY. No
amendments, changes or variations of any kind are authorized without the written
consent of CITY.
T. CONFLICT OF INTEREST. In accepting this Agreement, CONTRACTOR covenants
that it presently has no interest, and will not acquire any interest, direct or
indirect, financial or otherwise, which would conflict in any manner or degree with
the performance of this Agreement. CONTRACTOR further covenants that, in the
performance of this Agreement, it will not employ any person having such an
interest. CONTRACTOR certifies that no CITY officer, employee, or authorized
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 99
City of Palo Alto General Services Agreement 7 Rev. March 29, 2018
representative has any financial interest in the business of CONTRACTOR and that
no person associated with CONTRACTOR has any interest, direct or indirect, which
could conflict with the faithful performance of this Agreement. CONTRACTOR
agrees to advise CITY if any conflict arises.
U. GOVERNING LAW. This Agreement shall be governed and interpreted by the laws
of the State of California.
V. ENTIRE AGREEMENT. This Agreement, including all exhibits, represents the entire
agreement between the parties with respect to the services that may be the
subject of this Agreement. Any variance in the exhibits does not affect the validity
of the Agreement and the Agreement itself controls over any conflicting provisions
in the exhibits. This Agreement supersedes all prior agreements, representations,
statements, negotiations and undertakings whether oral or written.
W. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the
Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement
will terminate without any penalty (a) at the end of any fiscal year in the event
that funds are not appropriated for the following fiscal year, or (b) at any 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.
X. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE
REQUIREMENTS. CONTRACTOR shall comply with CITY’s Environmentally
Preferred Purchasing policies which are available at CITY’s Purchasing Division,
which are incorporated by reference and may be amended from time to time.
CONTRACTOR shall comply with waste reduction, reuse, recycling and disposal
requirements of CITY’s Zero Waste Program. Zero Waste best practices include
first minimizing and reducing waste; second, reusing waste and third, recycling or
composting waste. In particular, CONTRACTOR shall comply with the following
zero waste requirements:
• All printed materials provided by CONTRACTOR to CITY generated from a
personal computer and printer including but not limited to, proposals,
quotes, invoices, reports, and public education materials, shall be double-
sided and printed on a minimum of 30% or greater post-consumer content
paper, unless otherwise approved by CITY’s Project Manager. Any
submitted materials printed by a professional printing company shall be a
minimum of 30% or greater post-consumer material and printed with
vegetable based inks.
• Goods purchased by Contractor on behalf of CITY shall be purchased in
accordance with CITY’s Environmental Purchasing Policy including, but not
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 100
City of Palo Alto General Services Agreement 8 Rev. March 29, 2018
limited to, Extended Producer Responsibility requirements for products
and packaging. A copy of this policy is on file at the Purchasing Division’s
office.
• Reusable/returnable pallets shall be taken back by CONTRCATOR, at no
additional cost to CITY, for reuse or recycling. CONTRACTOR shall provide
documentation from the facility accepting the pallets to verify that pallets
are not being disposed.
Y. AUTHORITY. The individual(s) executing this Agreement on behalf of the parties
represent and warrant that they have the legal capacity and authority to do so on
behalf of their respective legal entities.
Z. PREVAILING WAGES
This Project is not subject to prevailing wages. CONTRACTOR is not required to
pay prevailing wages in the performance and implementation of the Project in
accordance with SB 7, if the Agreement is not a public works contract, if
Agreement does not include a public works construction project of more than
$25,000, or the Agreement does not include a public works alteration, demolition,
repair, or maintenance (collectively, ‘improvement’) project of more than
$15,000.
AA. DIR REGISTRATION. In regard to any public work construction, alteration,
demolition, repair or maintenance work, CITY will not accept a bid proposal from
or enter into this Agreement with CONTRACTOR without proof that
CONTRACTOR and its listed subcontractors are registered with the California
Department of Industrial Relations (“DIR”) to perform public work, subject to
limited exceptions. City requires CONTRACTOR and its listed subcontractors to
comply with the requirements of SB 854.
CITY provides notice to CONTRACTOR of the requirements of California Labor
Code section 1771.1(a), which reads:
“A contractor or subcontractor shall not be qualified to bid on, be listed in a bid
proposal, subject to the requirements of Section 4104 of the Public Contract
Code, or engage in the performance of any contract for public work, as defined
in this chapter, unless currently registered and qualified to perform public work
pursuant to Section 1725.5. It is not a violation of this section for an
unregistered contractor to submit a bid that is authorized by Section 7029.1 of
the Business and Professions Code or Section 10164 or 20103.5 of the Public
Contract Code, provided the contractor is registered to perform public work
pursuant to Section 1725.5 at the time the Agreement is awarded.”
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 101
City of Palo Alto General Services Agreement 9 Rev. March 29, 2018
CITY gives notice to CONTRACTOR and its listed subcontractors that
CONTRACTOR is required to post all job site notices prescribed by law or
regulation and CONTRACTOR is subject to SB 854-compliance monitoring and
enforcement by DIR.
CITY requires CONTRACTOR and its listed subcontractors to comply with the
requirements of Labor Code section 1776, including:
Keep accurate payroll records, showing the name, address, social security
number, work classification, straight time and overtime hours worked each day
and week, and the actual per diem wages paid to each journeyman, apprentice,
worker, or other employee employed by, respectively, CONTRACTOR and its
listed subcontractors, in connection with the Project.
The payroll records shall be verified as true and correct and shall be certified and
made available for inspection at all reasonable hours at the principal office of
CONTRACTOR and its listed subcontractors, respectively.
At the request of CITY, acting by its project manager, CONTRACTOR and its listed
subcontractors shall make the certified payroll records available for inspection or
furnished upon request to the project manager within ten (10) days of receipt of
CITY’s request.
[For state- and federally-funded projects] CITY requests CONTRACTOR
and its listed subcontractors to submit the certified payroll records to the
project manager at the end of each week during the Project.
If the certified payroll records are not produced to the project manager within
the 10-day period, then CONTRACTOR and its listed subcontractors shall be
subject to a penalty of one hundred dollars ($100.00) per calendar day, or
portion thereof, for each worker, and CITY shall withhold the sum total of
penalties from the progress payment(s) then due and payable to CONTRACTOR.
Inform the project manager of the location of CONTRACTOR’s and its listed
subcontractors’ payroll records (street address, city and county) at the
commencement of the Project, and also provide notice to the project manager
within five (5) business days of any change of location of those payroll records.
BB. CONTRACT TERMS. All unchecked boxes do not apply to this Agreement. In the
case of any conflict between the terms of this Agreement and the exhibits hereto
or CONTRACTOR’s proposal (if any), the Agreement shall control. In the case of
any conflict between the exhibits hereto and CONTRACTOR’s proposal, the
exhibits shall control.
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 102
City of Palo Alto General Services Agreement 10 Rev. March 29, 2018
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives
executed this Agreement on the date first above written.
CITY OF PALO ALTO THOMAS SARSFIELD ______________________________ By________________________________________ City Manager or Designee Name _____________________________________ Title_______________________________________ Telephone: _______________________________ Approved as to form: ___________________________ City Attorney or Designee
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
Thomas Sarsfield
Managing Director/ Proprietor
408 745-6171
4.a
Packet Pg. 103
City of Palo Alto General Services Agreement 11 Rev. March 29, 2018
EXHIBIT A SCOPE OF SERVICES
CONSULTANT agrees to provide Tennis Instruction services for tennis classes and camps for youths and adults at all levels with a curriculum that will include tennis classes year-round and youth camps through the summer season. CONSULTANT AGREES TO:
COURSE CONTENT:
• Be responsible for curriculum and course content.
• Unless otherwise expressly provided in this Agreement, CITY shall not be
responsible for providing course materials.
• Provide a teacher that will teach the whole session, with as little substitution as
possible.
• Conduct the program in a safe manner.
• CITY shall have the right to observe CONSULTANT instruct in order to
determine whether CONSULTANT is in compliance with the terms and
conditions of this Agreement.
QUALITY OF PROGRAM: Maintain a quality program which includes, but is not limited to:
• CONSULTANTS are knowledgeable and experienced in the subject being taught
and with the age group.
• CONSULTANTS are reliable and punctual.
• CONSULANTS are organized and prepared to teach at the start of each class.
• CONSULTANTS can establish and maintain working relationships with CITY
staff and customers.
• CONSULTANTS provide good customer service.
• CONSULTANTS and their employees can effectively resolve issues.
• CONSULTANTS make their best effort to make their programs inclusive and
accessible.
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 104
City of Palo Alto General Services Agreement 12 Rev. March 29, 2018
SET UP & CLEAN UP:
• Be responsible for all set up and cleanup of the room and equipment.
• All set up must be completed prior to the start of class.
EMPLOYEES:
• Provide employees who are at least 18 years old
• CONSULTANT, as well as their employees and/or volunteers (if applicable),
must complete and pass LiveScan/Fingerprint/Background checks and must
provide proof of passing such checks prior to providing services, provide negative
TB test result within the last four years (for another working with minors) and
provide proof of auto insurance in accordance with CITY guidelines (for anyone
driving to the CITY of Palo Alto facility). All CONSULTANTS, as well as their
employees and volunteers (if applicable), are strongly recommended to obtain
certification of CPR/First Aid.
PUBLICITY:
• May not publicize CONSULTANT'S business to class participant during class
hours without prior authorization from Department Director.
• Must obtain prior approval from Recreation Coordinator or designee for publicity
containing CITY classes.
• Must clarify to customers that any personal information sought by
CONSULTANT (name, phone number, address, etc.) from customers is
voluntary, and strictly for the use of the CONSULTANT and not requested by the
CITY
• Submit quarterly class proposals for creation of the Enjoy catalog. Note: Classes
included in proposal are not guaranteed to be offered.
• CONSULTANT will create a marketing plan to help promote camps and classes
and encourage enrollment.
PUNCTUALITY:
• CONSULTANT and their employees shall arrive at least 15 minutes prior to the
starting time of the class
• Ensures that all classes start and end on time
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 105
City of Palo Alto General Services Agreement 13 Rev. March 29, 2018
• Notifies center prior to the class if CONSULTANT is running late or unable to
attend
• If a class is missed, a makeup class is required to be provided by CONSULTANT.
RECORD KEEPING:
• Must take attendance at each class. All attendance records shall be submitted at
the end of each session.
COMMUNICATION:
• Maintain on-going communication
• Immediately communicate problems and issues with the class(es) or customers
• Inform CITY staff of participant injuries and complete necessary accident reports
within 24 hours.
ADHERENCE TO CITY POLICY:
• Responsible for knowing the CITY’S policies and procedures with regard to
special interest classes (i.e. waiting lists, cancellation, refund, satisfaction, etc.)
• Responsible for verifying that only registered participants with a signed CITY
liability form on file with the CITY are permitted to participate in CITY’S special
interest classes.
PRIVACY:
• Agrees that any personal information that CONSULTANT receives regarding
customers may not be used for other than CITY business.
• Ensures that customer information will be stored in a secure location.
CITY AGREES to:
• Process all registrations for classes (CONSULTANTS not allowed to register
participants)
• Provide CONSULTANT with attendance sheets or online access to run their own.
• Provide facility for scheduled classes, which includes reservation of outdoor spaces
(i.e. sports fields, tennis courts, etc.)
• Include CONSULTANT classes in publicity materials
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 106
City of Palo Alto General Services Agreement 14 Rev. March 29, 2018
EXHIBIT B SCHEDULE OF PERFORMANCE
The parties agree that the classes shall occur every quarter over the Fall, Winter, Spring and Summer sessions and camps shall occur over the Summer session of CITY’S Recreation Program. A Typical class schedule will be made up of two (2) 2-day classes per week, per season and (1) 1-day class per week and one-week summer camps. The actual class frequency, schedule, and venue will be determined by mutual agreement of
the parties. Sample Class Descriptions For reference, previous class and camp descriptions and schedules are provided below:
SUMMER CAMPS: JUNIOR INTERMEDIATE TENNIS CAMPS This class provides excellent instruction, extensive practice, and exciting match play for juniors (10-15 years old) at the INTERMEDIATE and HIGH INTERMEDIATE level. These camps are not for Novice players. Practices are designed to refine players’
technique and enhance their knowledge of strategy and tactics with competitive drills. Four courts grouped by age and/or ability.
6 Classes Age Mitchell Park Tennis #1-4 12 max
10y-15y Tu, Wed, Th 6/7-6/16 1:30-3:00pm
6 Classes Age Mitchell Park Tennis #1-4 12 max
10y-15y Tu, Wed, Th 6/21-6/30 1:30-3:00pm
6 Classes Age Mitchell Park Tennis #1-4 12 max
10y-15y Tu, Wed, Th 7/5-7/14 1:30-3:00pm
6 Classes Age Mitchell Park Tennis #1-4 12 max
10y-15y Tu, Wed, Th 7/19-7/28 1:30-3:00pm
YOUTH TENNIS CAMPS
Tennis camps emphasize stroke FUNdamentals with dynamic games and exciting drills
that enhance skill development. Four courts grouped by ability, novice to low intermediate. No class 7/4
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 107
City of Palo Alto General Services Agreement 15 Rev. March 29, 2018
10 Classes Age Rinconada #3-6 12 max
8y-12y M-F 6/6-6/17 9:30am-11:30am
10 Classes Age Rinconada #3-6 12 max
8y-12y M-F 6/20-7/1 9:30am-11:30am
9 Classes Age Rinconada #3-6 12 max
8y-12y M-F 7/5-7/15 9:30am-11:30am
10 Classes Age Rinconada #3-6 12 max
8y-12y M-F 7/18-7/29 9:30am-11:30am
5 Classes Age Rinconada #3-6 12 max
10y-14y M-F 8/1-8/5 9:30am-11:30am
TENNIS, SWIM, & SOCCER/FLAG FOOTBALL CAMP Tennis & swim PLUS camps held at Rinconada Park. The Tennis clinics at Rinconada Cts. #3-6 10-11:30am will be provided by the staff of Tennis Contractor. Following tennis, participants will head over to the Rinconada Park where they will eat lunch with our city staff. Around 12:30 pm, Multi-sports staff will come to work with
your child on either flag football or soccer (depending on which week you sign up).
Following that, they will walk over to Rinconada Pool to enjoy swimming, water games and be supervised by our lifeguard and city staff members. Cost includes tennis lessons (4 Courts grouped by ability (Novice to Int.), entrance to recreation swim and supervision. Participants should bring a bag lunch, tennis racket, bathing suit, sunscreen
and a towel each day. Ages 8-12. 8 Weeks of Summer Tennis, Swim, Soccer Flag Football Camp Monday – Friday, with the tennis portion from 10 am-11:30am with 16 max participants
FALL CLASSES:
TINY TENNIS
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 108
City of Palo Alto General Services Agreement 16 Rev. March 29, 2018
Children, 5-7 years of age, play FUN activities and games on the “42 ft. court” with low
compression tennis balls. Lessons are designed to enhance their athletic and skill
development in a success-oriented environment. We recommend 21” to 23” rackets.
8 Classes Age Rinconada #5-6 6 max
5y-7y M,W 9/12-10/5 3:20-4:00pm
8 Classes Age Rinconada #5-6 6 max
5y-7y Tues 9/13-11/1 3:20-4:00pm
8 Classes Age Rinconada #5-6 6 max
5y-7y Sat 9/17-11/5 2:00-2:40pm
8 Classes Age Rinconada #5-6 6 max
5y-7y Sat 9/17-11/5 2:40-3:20pm
8 Classes Age Rinconada #5-6 6 max
5y-7y Sat 9/17-11/5 3:20-4:00pm
8 Classes Age Rinconada #5-6 6 max
5y-7y M,W 10/17-11/9 3:20-4:00pm
8 Classes Age Mitchell Park Tennis #1-2 6 max
5y-7y Tu, Th 9/13-10/6 3:20-4:00pm
6 Classes Age Mitchell Park PB #1-2 6 max
5y-7y Wed 9/14-10/19 3:10-3:50pm
6 Classes Age Mitchell Park PB #1-2 6 max
5y-7y Wed 9/14-10/19 3:50-4:30pm
8 Classes Age Mitchell Park Tennis #1-2 6 max
5y-7y Sat 9/17-11/5 3:30-4:10pm
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 109
City of Palo Alto General Services Agreement 17 Rev. March 29, 2018
8 Classes Age Mitchell Park Tennis #1-2 6 max
5y-7y Sat 9/17-11/5 4:10-4:50pm
8 Classes Age Mitchell Park Tennis #1-2 6 max
5y-7y Tu, Th 10/18-11/10 3:20-4:00pm
QUICKSTART TENNIS Learn simple and efficient techniques on the “60 ft. court” with low compression tennis balls. Emphasis on control, consistency, sportsmanship, and FUN! We recommend the
25” rackets.
8 Classes Age Rinconada #5-6 6 max
8y-10y M, W 9/12-10/5 4:00-5:00pm
8 Classes Age Rinconada #5-6 6 max
8y-10y Tues 9/13-11/1 4:00-5:00pm
8 Classes Age Rinconada #5-6 6 max
8y-10y M, W 10/17-11/9 4:00-5:00pm
8 Classes Age Mitchell #1-2 6 max
8y-10y Tu, Th 9/13-10/6 4:00-5:00pm
8 Classes Age Mitchell #1-2 6 max
8y-10y Tu, Th 10/18-11/10 4:00-5:00pm
QUICKSTART ADVANTAGE TENNIS Review and develop techniques on the “60 ft. court” with low compression tennis balls.
More emphasis on depth, direction, and spin. Players should have prior Quickstart experience and/or instructor’s approval.
8 Classes Age Rinconada #5-6 6 max
8y-10y M,W 9/12-10/5 5:00-6:00pm
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 110
City of Palo Alto General Services Agreement 18 Rev. March 29, 2018
8 Classes Age Rinconada #5-6 6 max
8y-10y M, W 10/17-11/9 5:00-6:00pm
8 Classes Age Mitchell #1-2 6 max 8y-10y Sat 9/17-11/5
2:30-3:30pm
JUNIOR NOVICE TENNIS Develop the essential techniques with emphasis on control, depth, and direction on the “78 ft. court” with regulation tennis balls. Lessons will also incorporate rules,
sportsmanship, and basic doubles play.
8 Classes Age Rinconada #5-6 6 max
11y-14y M,W 9/12-10/5 6:30pm-7:30pm
8 Classes Age Rinconada #5-6 6 max
11y-14y M, W 10/17-11/9 6:30pm-7:30pm
8 Classes Age Mitchell #1-2 6 max
11y-14y Sat 9/17-11/5 1:30-2:30pm
JUNIOR LOW INTERMEDIATE TENNIS
For players who are consistent on a slow pace rally but need to develop better depth,
directional control and use of spin. Review and strengthen stroke techniques with more
emphasis on basic strategy and tactics.
8 Classes Age Rinconada #5-6 6 max
11y-14y Sat 9/17-11/5 1:00-2:00pm
8 Classes Age Mitchell #1-2 6 max
11y-14y Tu, Th 9/13-10/6 5:00-6:00pm
8 Classes Age Mitchell #1-2 6 max
11y-14y Tu, Th 10/18-11/10 5:00-6:00pm
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 111
City of Palo Alto General Services Agreement 19 Rev. March 29, 2018
JUNIOR INTERMEDIATE TENNIS
For players who are consistent on a medium pace rally but need to develop more spin,
power, and/or variety. Refine stroke techniques, strategy, and tactics with performance
enhancing drills.
8 Classes Age Rinconada #5-6 6 max
11y-15y Tues 9/13-11/1 5:00-6:00pm
ADULT NOVICE TENNIS
Develop the essential techniques with emphasis on control, depth, and direction. Lessons
will also incorporate rules, sportsmanship, and basic doubles play.
8 Classes Age Rinconada #5-6 6 max
15+ M,W 9/12-10/5 7:30-8:30pm
8 Classes Age Rinconada #5-6 6 max
15+ Tues 9/13-11/1 6:30-7:30pm
8 Classes Age Rinconada #5-6 6 max
15+ M, W 10/17-11/9 7:30-8:30pm
ADULT LOW INTERMEDIATE TENNIS
For players who are consistent on a slow pace rally but need to develop better depth, directional control and use of spin. Review and strengthen stroke techniques with more emphasis on basic strategy and tactics.
8 Classes Age Rinconada #5-6 6 max
15+ M,W 9/12-10/5 10-11am
8 Classes Age Rinconada #5-6 6 max
15+ Tues 9/13-11/1 7:30-8:30pm
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 112
City of Palo Alto General Services Agreement 20 Rev. March 29, 2018
8 Classes Age Rinconada #5-6 6 max
15+ M, W 10/17-11/9 10-11am
8 Classes Age Mitchell #1-2 6 max
15+ Tu, Th 9/13-10/6 6:30-7:30pm
8 Classes Age Mitchell #1-2 6 max
15+ Tu, Th 10/18-11/10 6:30-7:30pm
ADULT INTERMEDIATE TENNIS
For players (NTRP 3.0) who are consistent on a medium pace rally but need to develop
more spin, power, and/or variety. Develop stroke techniques, strategy, and tactics with
performance enhancing drills.
8 Classes Age Rinconada #5-6 6 max
15+ M,W 9/12-10/5 11am-12pm
8 Classes Age Rinconada #5-6 6 max
15+ M, W 10/17-11/9 11am-12pm
8 Classes Age Mitchell #1-2 6 max
15+ Tu, Th 9/13-10/6 7:30pm-8:30pm
8 Classes Age Mitchell #1-2 6 max
15+ Tu, Th 10/18-11/10 7:30pm-8:30pm
ADVANCED PLAYERS TENNIS USPTA Pro will personally teach this dynamic clinic for Advanced Players (NTRP 3.5-4.5). Players will enhance their tactical and strategic play with competitive situational drills. Refine stroke techniques with Ball Machine and Serving target drills. Only 3-6 players per Pro/court!
4 Classes Age Rinconada #4-6 12 max
15+ Sat 9/17-10/8 10:30am-12:00pm
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 113
City of Palo Alto General Services Agreement 21 Rev. March 29, 2018
EXHIBIT C SCHEDULE OF FEES
CITY shall pay CONTRACTOR according to the following rate schedule. The maximum amount of compensation to be paid to CONTRACTOR, including both payment for services and reimbursable expenses, shall not exceed the amounts set forth in Sections 5 and 6 of the Agreement. Any services provided or hours worked for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be
at no cost to CITY.
A. RATE
For the classes taught for all sessions during the term of this Agreement, CITY shall pay CONSULTANT at the rate for Sixty Five percent (65%) of the resident rate. CONSULTANT will not be compensated for classes offered and canceled – without a make-up session. CONSULTANT will be compensated for only registered participants listed on the attendance records. CITY and CONSULTANT shall mutually agree upon
the date and time and number of courses offered by CONSULTANT pursuant to this Agreement, provided that the total compensation payable to CONSULTANT shall not exceed the amount set forth in Section 4 of this Agreement
B. PAYMENT For registration-based classes, at the conclusion of each session, CONSULTANT will invoice the CITY for payment and shall comply with the requirements of Section 5 (invoices of this Agreement). In addition, the CONSULTANT’S invoice must include class name, class number, number of registered participants, rate of pay, total amount due
for each class and grand total of all classes included on invoice. For drop-in based classes, CONSULTANT will invoice the CITY for payment at least monthly. Invoices must include attendance sheets, rate of pay, total amount due for each class and grand total of all classes.
C. MISSED CLASSES (Excluding weather-related cancellations, if applicable) If CONSULTANT gives 24 hours or less cancellation notice of class(es) starting time and subject to the prior approval of CITY, CONSULTANT will be compensated at 50% of compensation rate for day of the make up session provided CONSULTANT conducts
a make-up session at a mutually agreeable time and location. If CONSULTANT misses two consecutive weeks/meetings of the same class(es) and subject to the prior approval of CITY, CONSULTANT will be compensated at 25% of compensation rate for each of the make-up days provided CONSULTANT conducts a
make-up session at a mutually agreeable time and location. Nothing herein limits the CITY’S right to terminate this Agreement for CONSULTANT’S failure to conduct any class at the specified time and place.
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 114
City of Palo Alto General Services Agreement 22 Rev. March 29, 2018
D. LATE CLASSES1.If CONSULTATNT is late at least twice to same class in the same session (or
same month for drop-in classes) and subject to the prior approval of CITY,CONSULTANT will be compensated at 100% of compensation rate for the firsttime the CONSULTANT was late. For the second time the CONSULTANT islate, CONSULTANT will be compensated at 50% of compensation rate.
2.If CONSULTANT is late at three or more times to same class in the same session(or same month for drop-in classes) and subject to the prior approval of CITY,CONSULTANT will be compensated at 25% of compensation rate. Nothingherein limits the CITY’S right to terminate this Agreement for CONSULTANT’Sfailure to conduct any class at the specified time and place.
E.PAYMENT FOR – USE OF FACILITY FOR APPROVED AND NON-APPROVED USESCONSULTANT will reimburse the CITY for the use of 4 tennis courts to teach
individual Private and Semi Private lessons (Rinconada Park Cts. #5-6 and Mitchell Park
Cts. #1-2). There will be 4 scheduled payments per year.
Annual Amounts:
Year one: $12,000
Year two: $13,000
Year three: $14,000
If the CONSULTANT uses CITY’S facility for any purpose other than a mutually agreed upon and scheduled class under this agreement, then the CONSULTANT shall pay all fees and charges - as specified in the CITY’S Municipal Fee Schedule.
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 115
City of Palo Alto General Services Agreement 23 Rev. March 29, 2018
EXHIBIT D INSURANCE REQUIREMENTS
CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW:
REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS
EACH OCCURRENCE AGGREGATE
YES YES
WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY
YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY
BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED.
$1,000,000 $1,000,000 $1,000,000
$1,000,000 $1,000,000 $1,000,000
YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED
BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED
$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
$1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
NO
PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE
ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS’ COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES.
I. INSURANCE COVERAGE MUST INCLUDE: A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR’S AGREEMENT TO INDEMNIFY CITY. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE.
III. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO “ADDITIONAL INSUREDS”
A. PRIMARY COVERAGE
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 116
City of Palo Alto General Services Agreement 24 Rev. March 29, 2018
WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS.
B. CROSS LIABILITY
THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY.
C. NOTICE OF CANCELLATION
1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE ISSUING COMPANY 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 ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION.
NOTICES SHALL BE MAILED TO:
PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303
DocuSign Envelope ID: 6B26E9F8-8EA4-4466-A7AF-37F45CBCE096
4.a
Packet Pg. 117
City of Palo Alto (ID # 14943)
City Council Staff Report
Meeting Date: 12/5/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of the Acceptance of State of California Citizens Options for
Public Safety (COPS) Funds of $172,000 and a Budget Amendment in the
Supplemental Law Enforcement Services Fund (2/3 vote required)
From: City Manager
Lead Department: Police
RECOMMENDATION
Staff recommends that the City Council:
1.Approve the acceptance and expenditure of Citizens Options for Public Safety (COPS)
funds State of California, totaling $172,000; and
2.Amend the Fiscal Year 2023 Budget Appropriation Ordinance (requires 2/3 approval) for
the Supplemental Law Enforcement Services Fund (SLESF) by:
a.Increasing the estimate for revenue from the State of California by $172,000;
b.Increasing Police Department Facilities and Equipment expense appropriation by
$242,000;
c.Increasing Police Department Salary and Benefits expense appropriation by
$90,000;
d.Increasing the Police Department General Expenses expense appropriation by
$20,000; and
e.Decreasing the fund balance by $180,000
EXECUTIVE SUMMARY
Staff recommends that the City Council approve the acceptance of the annual State of
California COPS funds, totaling $172,000. An amendment to the budget appropriation
ordinance must be approved by two-thirds vote of the Council to spend these funds. In
addition, staff recommends an additional budget augmentation totaling $180,000 to Facilities
and Equipment. COPS Funds in the Supplemental Law Enforcement Services Fund (SLESF) will
fund equipment purchases, recruitment efforts, and supplement the Police overtime budget. A
portion of the fund balance will be used to purchase replacement Conductive Electrical
Weapons (CEW), commonly referred to by the trade name “Tasers”.
BACKGROUND
Every year since 1997, the State of California, by statute, allocates designated funds to counties,
and on through to cities, through a Citizens Options for Public Safety (COPS) program. This on-
5
Packet Pg. 118
City of Palo Alto Page 2
going program is managed by State statute and the level of funding is relative to the population
as determined by the California Department of Finance. It should be noted this funding is not
related to the Federal Government Department of Justice COPS program, despite the same
acronym.
State law provides for four main requirements as written in Government Code sections 30025-
30029.12 and 30051-30063: 1) Each recipient (County and a City) is required to deposit the
revenue into a separate fund so the funds are not co-mingled with the General Fund (30063);
and 2) the money shall be used for front line law enforcement services or municipal police
services (30061(c)(2)); and transfer to other funds is allowed provided it is to facilitate the use
according to the code (30063); and 4) the funds shall not supplant the city budget (30062(a)).
Previous uses of COPS funds have included restarting the Community Service Officer (CSO)
program, electronic traffic citation system, weapons system upgrades, safety equipment, police
training, staff wellness testing, upgrades to patrol vehicles, and upgraded tools and technology,
all benefiting front line law enforcement services or municipal police services for the City of
Palo Alto.
According to conversations with State staff, the source of funding is from vehicle license fees.
Specific allocations are directed by the Department of Finance, in accordance with the
Government Code, while the distributions are made by the State Controller’s office. There are
two parts to the distribution: 1) a semi-permanent component based on a minimum funding
level for the program, paid monthly and 2) a growth component for funds (referred to as
Growth Fund) in excess of the minimum base paid one-time the following year after
reconciliation.
DISCUSSION
The City recently received the annual notice1 for the first part of the distribution for Fiscal Year
2023 for $104,211. Further, the Growth Fund portion was funded and reported online2 to
indicate there is an additional $67,652 in funding allocated for Palo Alto – for a total of
$171,863.
Staff recommends use of this year’s expected COPS funds in the total amount of $172,000,
along with a portion of the fund balance ($180,000) in the following manner(s) which are
compliant with the law. With the exception of CEW, all expenses below are estimated.
Supplemental Recruiting Activities for Front Line Officers
($90,000 Salary and Benefits and $20,000 Recruiting) – Palo Alto does not traditionally budget
for recruiting activities. The activity is funded by other means such as salary savings, Budget
Stabilization Reserve or, in this case, from the COPS funding. The team responsible for
recruiting front line police officers is not funded in the budget. Regular FTE staff will attend
recruiting events on overtime. This will also fund the travel and lodging required to attend
recruiting events to attract and hire front-line law enforcement staff.
5
Packet Pg. 119
City of Palo Alto Page 3
Facilities and Equipment for Front Line Officers
Ballistic Shields ($30,000) - Special shields designed to add an additional layer of protection in
the field for situations where high-velocity rounds can be anticipated to be fired upon police
officers and in some cases the public as with evacuations from active shooter scenes.
Body Armor for SWAT operators ($32,000) – Three additional sets of specialized body-armor
differentiated from standard “every-day” body armor used in the field. This body armor is
designed to provide freedom of movement and a higher level of protection from high velocity
firearm rounds.
CEW ($180,000) - the Department will use some of the existing fund balance to acquire updated
Conductive Electrical Weapons (CEW), commonly referred to by the trade name “Tasers”. City
practice, since adoption of the technology in the 2000’s, has been to replace the complete
inventory of devices every 5-7 years. The last replacement cycle occurred in 2014 for $210,000.
Current replacement has not been budgeted and improved technology is now available and
expected to cost $180,000. For City Council and community awareness, Attachment A provides
an overview of CEW policy and use.
RESOURCE IMPACT
The City has received funds each year under this program since its inception. No further action
is required, beyond Council’s approval, to accept the funds. Revenues of $172,000 are
recommended to be recognized in the City's Supplemental Law Enforcement Services Fund
(SLESF).
A total of $352,000 of expenditures are anticipated as described previously in the
memorandum, which will be funded by the COPS grant funding appropriated in Fiscal Year 2023
($172,000) and fund balance ($180,000). There will be no impact to the General Fund as
ongoing maintenance costs, if any, for the items purchased by the SLESF will be absorbed in the
Department's existing budget, otherwise, the activities will stop when the SLESF funds are spent
in full.
POLICY IMPLICATIONS
The Palo Alto Municipal Code 2.28.080 requires a two-thirds vote by Council to accept the
funds and amend the budget and a majority vote for the transfer between funds. Further, by
written authorization, the City Manager may direct the redistribution of unencumbered balance
within any department or office or fund. The California Government Code would limit how
SLESF funds are redistributed. As with the acquisition of any goods or services by the City, the
purchasing process will be subject to City purchasing policy manual as established in the
municipal code under the direction of the Chief Procurement Officer.
STAKEHOLDER ENGAGEMENT
None
5
Packet Pg. 120
City of Palo Alto Page 4
ENVIRONMENTAL REVIEW
Acceptance of COPS funding and the proposed expenditures for public safety equipment are
not projects subject to CEQA review.
Attachment
Attachment A: a brief on the City of Palo Alto CEW program
Footnotes
1 https://www.sco.ca.gov/Files-ARD-Payments/copsdofletter_2223.pdf
2 https://www.sco.ca.gov/ard_payments_cops_growth.html
Attachments:
• Attachment5.a: Attachment A
5
Packet Pg. 121
ATTACHMENT A – ITEM #5
MEETING DATE: DECEMBER 5, 2022
TO:
FROM:
SUBJECT:
HONORABLE COUNCIL MEMBERS
ANDREW BINDER, CHIEF OF POLICE
AGENDA ITEM NUMBER 5 - Approval of the Acceptance of State of
California Citizens Options for Public Safety (COPS) Funds of $172,000
and a Budget Amendment in the Supplemental Law Enforcement Services
Fund
The following provides background on the City of Palo Alto policy and use of the Conductive
Electronic Weapon (CEW) often referred to by the brand name “TASER”. The City Council
approved equipping the Police Department with CEWs in 2007, following a Council-appointed
TASER Task Force voting to recommend the acquisition following a series of public meetings and
information presented by a diverse cross-section of experts and input from community
members. Since then, every uniformed police officer in Palo Alto has routinely carried a
CEW. The CEW is a valuable tool that gives officers a less-than-lethal force option that is intended
to deter or control a violent or potentially violent individual while minimizing the risk of serious
injury to both officers and criminal suspects. While officers have, fortunately, rarely needed to
deploy CEWs at suspects over the past 15 years, CEWs provide an important always-available
option. CEWs provide officers with an alternative to deadly force in some situations. The mere
presence of the weapon can lead to compliance by suspects. CEWs also provide officers with an
alternative to using physical strength, a baton, or pepper spray against violent individuals,
situations that can often result in injuries to officers and suspects.
There are several existing checks and balances in place to ensure that any use of CEWs is
reasonable and appropriate:
•The Department has a detailed six-page policy (publicly viewable here1 (Policy 309, page 82)
that confines their use to very limited circumstances. That policy provides specific, strict
5.a
Packet Pg. 122
guidelines on targeting considerations and also requires officers to summon medical care for
anyone to whom a CEW has been applied.
•Next, the Department regularly provides CEW training to all officers on an annual
basis. These sessions include a policy review and also scenario-based training, which includes
elements of de-escalation and other alternatives to the deployment of a CEW.
•Additionally, every deployment of a CEW is subjected to an administrative use of force
review, resulting in a written report that is ultimately forwarded to the Department’s
Independent Police Auditor (IPA). The IPA reviews this administrative report and any
associated police reports and evidence, and then generates its own report, which includes
recommendations to the Chief of Police regarding further investigation, processes, and
dispositions. The IPA’s report is provided to the City Council twice yearly, and is published as
a public document on the Department’s website. Every CEW deployment in the
Department’s history has been subjected to this level of review, and every IPA report dating
back to 2007 is publicly viewable here2.
The existing CEWs in the Department’s possession are outdated and do not have the most
currently-available technology. Using COPS funding to acquire the newest CEWs will equip police
officers with the tools needed to do the job safely while protecting the community from violent
or potentially violent individuals, as an eligible use of restricted grant funds.
Footnotes:
1 https://www.cityofpaloalto.org/files/assets/public/police-department/public-information-
portal/policy-manual-for-web-11-1-2022.pdf
2 https://www.cityofpaloalto.org/Departments/Police/Accountability/Independent-
Police-Auditor
5.a
Packet Pg. 123
City of Palo Alto (ID # 14949)
City Council Staff Report
Meeting Date: 12/5/2022 Report Type: Consent Calendar
City of Palo Alto Page 1
Title: Approval of the Office of the City Auditor's Fiscal Year (FY) 2023 Task
Orders
From: City Manager
Lead Department: City Auditor
Recommendation
The City Auditor and the Policy & Services Committee recommend that the City Council
take the following action:
Approve the following Task Orders, identified in Baker Tilly’s agreement with the City
and the Audit Plan Report:
1)FY23-Task 03 – External Financial Auditor
2)FY23-Task 05 – Various Reporting & City Hotline
3)FY23-Task 06 – Evaluation and Benchmarking
4)Task 04.08 – Public Safety Building Construction Audit (Correction)
5)Task 04.16 – Review of ALPR Technology Contract Management
6)Task 04.17 – Investment Management Review
7)Task 04.18 – Ad Hoc Request – Janitorial Contract Compliance Review
Discussion
In accordance with our agreement with the Cityi, Baker Tilly is required to conduct
recurring activities each year. Those recurring activities including the following tasks
outlined in our agreement:
•Task 3: Assist with Selection of a Financial Auditor and Assist in Managing the
Financial Audit
•Task 4: Execute Council approved Annual Audit Plan (Attachment B)
•Task 5: Various Tasks including periodic reporting, fraud/waste/abuse hotline,
office administrative functions
•Task 6: Evaluation and Benchmarking
The Office of the City Auditor (OCA) is seeking approval from the Policy & Services
Committee of the Tasks Orders that correspond to the Tasks outlined above and
recommendation to forward these task orders to the City Council for approval. The
6
Packet Pg. 124
City of Palo Alto Page 2
Task Orders provide the contractual authority to begin this work in the new Fiscal Year
2023. An excerpt from the contract outlining these tasks is below for ease of reference.
Task 3. Selection of External Financial Auditor and Annual Audit Coordination:
Coordinate the annual external financial audit in each year of the contract term.
Pursuant to the City Charter, the City Auditor shall oversee the selection process for the
annual external financial auditor.
Task 4. Execute Annual Audit Plan: Conduct a minimum number of internal audits in
accordance with each approved annual audit planii based on the risk assessments. Each
internal audit will commence only upon the City’s approval of a Task Order (which may
be at the task or sub-task level) as required by this Agreement. Each internal audit
requires the preparation of a written report for review by the City Manager, City
Attorney and appropriate Council committee, and review/approval by the City Council as
required.
Task 5. Preparation of Quarterly Reports, Annual Status Report, Provision of City
Hotline, and Other Ongoing Office Administrative Functions:
Prepare and issue quarterly reports describing the status and progress toward
audit completion, to be provided as information reports to the City Council and
reviewed by the appropriate committee, unless other reporting methods are
directed by Council.
Prepare and issue an annual report in the first quarter of each fiscal year on the
status of recommendations made in completed audits, to be provided as an
information report to the City Council and reviewed by the appropriate
committee, unless other reporting methods are directed by Council.
Maintain and respond to the City’s employee “hotline” function provided through
voicemail, email or written submissions. Coordinate referrals as appropriate to
other City offices, departments or divisions and incorporate relevant referrals into
future risk assessments, audit plans or audit activity as appropriate.
This task provides for authorization of travel during the full 2023 fiscal year
assuming one trip per month (total of 12 trips). Although the contract stipulated
an on site presence every two weeks by the Office of the City Auditor, leveraging
remote work efficiencies and ensuring economical use of contract authority and
funds, this task order revises that frequency. BakerTilly will use discretion to
ensure travel is used to minimize travel expenses and maximize effectiveness of
time on site, ultimately ensuring alignment with audit work schedules and
Council and Committee activities.
Task 6: Undergo a peer evaluation following the guidelines of the Association of Local
Government Auditors every two years (i.e., at the end of the initial contract term, then
6
Packet Pg. 125
City of Palo Alto Page 3
every other year thereafter throughout the contract term), or as required by the City
Council, so that performance of the internal audit function can be objectively assessed.
Prepare a cost per audit analysis following the first completed fiscal year, to be
submitted at the beginning of the second fiscal year and every year thereafter
throughout the contract term, that includes benchmark agencies determined by
the CITY, and obtain independent third-party certification of data accuracy.
The cost per audit analysis will be used to evaluate the cost effectiveness of
services provided by the CONSULTANT. This evaluation will be incorporated into
ongoing performance assessments as required and will help ensure that fees for
service provision throughout the duration of the Agreement are objectively
determined and mutually agreed upon.
This evaluation and report from the peer evaluator will be presented to the Policy
and Services Committee and City Council in alignment with typical audit reporting
activities.
Task 4 Details.
The details of the four task orders (1 revisions and 3 new) are as follows:
04.08 Public Safety Building Construction Audit (Correction)
The original task order to review monthly invoices from the Construction
Manager, Architect and Waterproofing Inspector was prepared and approved in
FY21. It has two different project end dates in error: the end date of 6/30/22 on
the first page and the end date of 6/30/23 on page 3. The approved audit plan
shows the project end date of June 2023 and the budget split between FY22 and
FY23. A monthly review is expected to continue throughout FY23. The
remaining budget is approximately $12,000, OCA corrected the end date on page
1 to 6/30/23.
04.16 Review of ALPR Technology Contract Management
The preliminary audit objectives include:
• Determine whether adequate policies and procedures are implemented
effectively to protect the privacy of personal information gathered using
ALPR technology for the City’s parking management.
• Determine whether the City monitors the vendor’s performance to ensure
the compliance with contract terms and applicable laws and regulations
related to data privacy.
04.17 Investment Management Review
The preliminary audit objectives include:
• Determine whether adequate controls are in place and working effectively
to ensure that investments are properly managed in accordance with the
6
Packet Pg. 126
City of Palo Alto Page 4
investment policy.
• Assess the efficiency and the effectiveness of the investment portfolio
management against the best practice.
04.18 Ad Hoc Request – Janitorial Contract Compliance Review
Ad Hoc Requests are included in the FY2022-2023 Audit Plan in anticipation of
requests for review based on business needs. These requests can be generated
from many sources, including management, Council, or through existing activities
such as the hotline or other audit work. In October 2022, the City management
identified and requested OCA to assist in a review of janitorial service contract
compliance and provided letters received from politicians, an industry watchdog
group, and a labor union requesting a review of the service provider’s
employment practices regarding the City’s contract. The primary audit objectives
include:
• Determine whether the City requires its janitorial service providers to meet
the responsible employment standards and monitors the providers'
compliance with contract terms to ensure that the City receives effective
and reliable janitorial services.
• Determine whether the City's janitorial service providers comply with the
contract terms in order to provide professional janitorial services to the
City.
The City Auditor understands this is a topic of interest of some City Council
Members and management and has alerted the Policy and Services Chair
regarding this request for consideration.
Resource Impact
Work recommended in these tasks is within both the approved scope and compensation
of the contract with Baker Tilly and funding levels in the FY 2023 Operating Budget for
the Office of the City Auditor.
Environmental Review
This action is exempt from CEQA and requires no further environmental review.
Attachments:
• Attachment6.a: OCA - FY23 Task Orders
• Attachment6.b: FY2022-FY2023 Audit Workplan, Council approved 04.04.2022
i City agreement with Baker Tilly https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2020-2/id-11624.pdf?t=64761.15
ii Approved annual Audit Plan https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/agendas-minutes/city-council-agendas-
minutes/2022/20220404/20220404pccsmamendedlinked1.pdf
6
Packet Pg. 127
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY23-03 External Financial Auditor
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK O RDER NO.: FY23-003
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: July 1, 2022 COMPLETION: June 30, 2023
4 TOTAL TASK ORDER PRICE: $15,000
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Greer Stone, Chair of the City Council’s Policy and Services Committee
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): N/A
I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO
BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________
BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
6.a
Packet Pg. 128
Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
• 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)
Services & Deliverables
Baker Tilly’s approach to the Office of the City Auditor’s role on the financial audit involves one (1) primary step in FY23:
• Step 1: Assistance in Managing the Financial Audit
Step 1 – Role in Managing the Financial Audit
In FY23, the project team will assist in managing the financial audit and presenting financial
audit results to the Finance Committee and to the City Council, in accordance with municipal
code.
Deliverables:
Legislative documents will be prepared to present the financial statements and reports prepared by an external auditor to the Finance Committee
Schedule of Performance
Anticipated Start Date: July 1, 2022
Anticipated End Date: June 30, 2023
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $15,000. The not-to-exceed budget is based on an estimate of 40 total project hours, of which 40 are estimated to be completed by the City Auditor.
6.a
Packet Pg. 129
Reimbursable Expenses
Baker Tilly anticipates planning one on-site fieldwork week. Given this possibility, Baker Tilly could incur reimbursable expenses for this Task. The not-to-exceed maximum for reimbursable expenses for this Task is $5,700.
The following summarizes anticipated reimbursable expenses:
• Round-trip Airfare – $1350 (2 round trip flights)
• Ground Transportation (car rental or Uber/taxi) - $1350
• Hotel accommodation - $2,000 (8 nights)
• Food and incidentals – $1,000
6.a
Packet Pg. 130
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY23-05 Various Reporting & City Hotline
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK O RDER NO.: FY23-005
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: July 1, 2022 COMPLETION: June 30, 2023
4 TOTAL TASK ORDER PRICE: $60,000
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Greer Stone, Chair of the City Council’s Policy and Services Committee
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): N/A
I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO
BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________
BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
6.a
Packet Pg. 131
Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
• 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)
Services & Deliverables
Baker Tilly will provide the following services in Task 5:
• Quarterly Reports
• Annual Status Report
• Provision of the City Hotline
• Office Administrative Functions
Deliverables:
Legislative documents will be prepared to present the financial statements and reports prepared by an external auditor to the Finance Committee
• Quarterly Reports (4 in FY23)
• Annual Status Report
Schedule of Performance
Anticipated Start Date: July 1, 2022 Anticipated End Date: June 30, 2023
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $60,000. The not-to-exceed budget is based on an estimate of 185 total project hours, of which 135 are estimated to be completed by the City Auditor.
Reimbursable Expenses
Baker Tilly anticipates planning one on-site fieldwork week. Given this possibility, Baker Tilly could incur reimbursable expenses for this Task.
6.a
Packet Pg. 132
The not-to-exceed maximum for reimbursable expenses for this Task is $28,400.
The following summarizes anticipated reimbursable expenses:
•Round-trip Airfare – $6,700 (10 round trip flights)
•Ground Transportation (car rental or Uber/taxi) - $6,700
•Hotel accommodation - $10,000 (40 nights)
•Food and incidentals – $5,000
6.a
Packet Pg. 133
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER FY23-06 Evaluation and Benchmarking
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK O RDER NO.: FY23-006
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: June 1, 2022 COMPLETION: June 30, 2023
4 TOTAL TASK ORDER PRICE: $21,000
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Greer Stone, Chair of the City Council’s Policy and Services Committee
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): N/A
I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO
BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________
BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
6.a
Packet Pg. 134
Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
• 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)
Services & Deliverables
Baker Tilly’s approach to undergoing a peer review involves three (3) primary steps:
• Step 1: Preparation for a peer review
• Step 2: A peer review by an independent evaluator
• Step 3: Cost per audit analysis
Step 1 – Preparation for a peer review
The Office of the City Auditor (OCA) will conduct a self-assessment before a peer review.
Step 2 – A peer review by a qualified organization
OCA will undergo a peer review conducted by an independent evaluator. In order to
accomplish this task, OCA will:
• Request a peer review from the Association of Local Government Auditors (ALGA)
• Provide documents and answer questions as requested by ALGA
• Obtain a peer review report from ALGA
Step 3 – Cost per audit analysis
OCA will prepare a cost per audit analysis.
Deliverables:
Legislative documents will be prepared to present a peer review report from an
independent evaluator.
Schedule of Performance
Anticipated Start Date: June 1, 2022
Anticipated End Date: June 30, 2023
6.a
Packet Pg. 135
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $21,000. The not-to-exceed budget is based on an estimate of 85 total project hours, of which 20 are estimated to be completed by the City Auditor.
Reimbursable Expenses
Baker Tilly anticipates no travel costs. All procedures including interviews and documentation reviews are expected to be completed remotely.
6.a
Packet Pg. 136
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER 04.08 Public Safety Building-Construction Audit (CORRECTED)
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK O RDER NO.: FY21-001
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: March 1, 2021 COMPLETION: June 30, 2022 (est.) June 30, 2023
4 TOTAL TASK ORDER PRICE: $82,500
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Lydia Kou, Greer Stone, Chair of the City Council’s Policy and Services Committee
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): N/A
I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO
BY:____________________________________ Name __________________________________ Title___________________________________
Date ___________________________________
I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________
BY:____________________________________ Name __________________________________ Title___________________________________
Date ___________________________________
6.a
Packet Pg. 137
Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
• 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)
Services & Deliverables
Baker Tilly’s approach to conducting the Public Safety Building construction audit involves three (3) primary steps:
• Step 1: Project Planning & Management
• Step 2: Monthly Monitoring
• Step 3: Reporting
Step 1 – Project Planning & Management
This step includes those tasks necessary to solidify mutual understanding of the construction audit scope, objectives, deliverables, and timing as well as ensuring that appropriate client and consultant resources are available and well-coordinated. Tasks include:
• Conduct a formal kick off meetings with the City, the Construction Manager, Architect and Waterproofing Inspector.
• Formalize the communication plan, reporting formats, status update schedule and deliverable milestone schedule
• Distribute initial document request and check list
• Review the contract documents related to each provider to identify key terms and develop a specific testing program for each contract
Step 2 – Monthly monitoring
During this step we will review monthly invoices from the Construction Manager, Architect and Waterproofing Inspector. We will focus on the following areas:
• Monthly invoice review
• Change order testing
• Contingency and allowance testing
• Lien waiver control
6.a
Packet Pg. 138
•Compliance with insurance requirements
•Closeout testing
•Verify the City’s implementation and adherence to documented project controls
Step 3 – Reporting
We will prepare a monthly status update reflecting the testing performed during the current period and planned testing for the subsequent period(s). The monthly status update will also reflect any current audit issues, the status of any previously identified issues and any open requests for documentation. At the completion of the project, we will provide a final report
detailing all procedures performed along with any observations and the applicable resolutions
or recommendations.
Deliverables:
The following deliverable will be prepared as part of this engagement:
•Written monthly status updates as described in Step 3
•Final report as described in Step 3
Schedule of Performance
Anticipated Start Date: March 1, 2021
Anticipated End Date: June 30, 2023
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum for this Task is $82,500. The not-to-exceed budget is based on an
estimate of 4200 420 total project hours to be completed by Baker Tilly.
Reimbursable Expenses
We plan to complete the majority of the work remote including all required meetings and
documentation review. If conditions allow, Baker Tilly will perform site visits once per year
around key project milestones. Our travel expenses will be billed separately at actual cost. We will submit an estimate of our reimbursable expenses for the City’s approval prior to traveling to Palo Alto.
6.a
Packet Pg. 139
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER 04.16 Review of ALPR Technology Contract Management
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK O RDER NO.: FY23-4.16
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: January 1, 2023 COMPLETION: June 30, 2023
4 TOTAL TASK ORDER PRICE: $82,500
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Greer Stone, Chair of the City Council’s Policy and Services Committee
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): N/A
I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO
BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________
BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
6.a
Packet Pg. 140
Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
• 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)
Services & Deliverables
Baker Tilly’s approach to conducting an internal audit of Contract Management for ALPR Technology involves three (3) primary steps:
• Step 1: Audit Planning
• Step 2: Control Review and Testing
• Step 3: Reporting
Step 1 – Audit Planning
This step consists of the tasks performed to adequately plan the work necessary to address
the overall audit objective and to solidify mutual understanding of the audit scope,
objectives, audit process, and timing between stakeholders and auditors. Tasks include:
• Gather information to understand the environment under review
o Understand the organizational structure and objectives
o Review the City code, regulations, and other standards and expectations
o Review prior audit results, as applicable
o Review additional documentation and conduct interviews as necessary
• Assess the audit risk
• Write an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained
and examined
• Announce the initiation of the audit and conduct kick-off meeting with key
stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and
expectations
o Discuss documentation and interview requests for the audit
6.a
Packet Pg. 141
Step 2 – Control Review and Testing
This step involves executing the procedures in the audit program to gather information,
interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives. The preliminary audit objective is to: (1) Determine whether adequate policies and procedures are implemented effectively to protect the privacy of personal information gathered using ALPR technology for the City’s parking management.
(2) Determine whether the City monitors the vendor’s performance to ensure the compliance
with contract terms and applicable laws and regulations related to data privacy. Procedures include, but not limited to:
• Interview the appropriate individuals to understand the process, the information
system used, and the internal controls related to data privacy.
• Compare data privacy related policies and procedures as well as the regulations and standards to determine whether personally identifiable information (PII) has confidentiality, integrity, and availability as needed.
• Review IT vendor performance monitoring practices to determine whether controls are implemented to ensure compliance with contract terms and data privacy standards.
• Perform test procedures including observations of controls (such as governance,
management and technical IT controls) and review of a sample of parking patrons (PII during the audit period).
• Compare the process and controls against the best practices.
Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers,
prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks
include:
• Develop findings, conclusions, and recommendations based on the supporting
evidence gathered
• Validate findings with the appropriate individuals and discuss the root cause of the
identified findings
• Complete supervisory review of working papers and a draft audit report
• Distribute a draft audit report and conduct a closing meeting with key stakeholders
o Discuss the audit results, finings, conclusions, and recommendations
o Discuss management responses
• Obtain written management responses and finalize a report
• Review report with members of City Council and/or the appropriate Council
Committee
Deliverables:
The following deliverable will be prepared as part of this engagement:
• Audit Report
6.a
Packet Pg. 142
Schedule of Performance
Anticipated Start Date: January 1, 2023 Anticipated End Date: June 30, 2023
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $82,500. The not-to-exceed budget is based on an estimate of 400 total project hours, of
which 20 are estimated to be completed by the City Auditor.
Reimbursable Expenses
If circumstances allow, Baker Tilly anticipates planning one on-site fieldwork week. Given this
possibility, Baker Tilly could incur reimbursable expenses for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $8,500. The following summarizes anticipated reimbursable expenses (for three team members):
• Round-trip Airfare – $2,000 (3 round trip flights)
• Ground Transportation (car rental or Uber/taxi) - $2,000
• Hotel accommodation - $3,000 (12 nights)
• Food and incidentals – $1,500 Note that, as the restrictions associated with COVID-19 change, the project team will work with the City to consider circumstances at the time.
6.a
Packet Pg. 143
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER 04.17 Investment Management Review
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK O RDER NO.: FY23-4.17
2. CONSULTANT NAME: Baker Tilly US, LLP
3. PERIOD OF PERFORMANCE: START: December 1, 2022 COMPLETION: June 30, 2023
4 TOTAL TASK ORDER PRICE: $61,550
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $TBD
5. BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Greer Stone, Chair of the City Council’s Policy and Services Committee
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): N/A
I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO
BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________
BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
6.a
Packet Pg. 144
Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
• 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)
Services & Deliverables
Baker Tilly’s approach to conducting a Review of Investment Management involves three (3) primary steps:
• Step 1: Audit Planning
• Step 2: Control Review and Testing
• Step 3: Reporting
Step 1 – Audit Planning
This step consists of the tasks performed to adequately plan the work necessary to address
the overall audit objective and to solidify mutual understanding of the audit scope,
objectives, audit process, and timing between stakeholders and auditors. Tasks include:
• Gather information to understand the environment under review
o Understand the organizational structure and objectives
o Review the City code, regulations, and other standards and expectations
o Review prior audit results, as applicable
o Review additional documentation and conduct interviews as necessary
• Assess the audit risk
• Write an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained
and examined
• Announce the initiation of the audit and conduct kick-off meeting with key
stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and
expectations
o Discuss documentation and interview requests for the audit
6.a
Packet Pg. 145
Step 2 – Control Review and Testing
This step involves executing the procedures in the audit program to gather information,
interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives. The preliminary audit objective is to: (1) Determine whether adequate controls are in place and working effectively to ensure that investments are properly managed in accordance with the investment policy; (2) Assess the efficiency and the
effectiveness of the investment portfolio management against the best practice. Procedures
include, but not limited to:
• Interview the appropriate individuals to understand the process, the information system used, and the internal controls related to investment management
• Review policies and procedures as well as the regulations and standards to identify the criteria to be used for evaluation of control design and effectiveness
• Perform test procedures including observation of controls (such as application
controls) and review of selected documents (such as supporting documents for the
recorded transactions)
• Compare the process and controls against the best practices
Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers,
prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks
include:
• Develop findings, conclusions, and recommendations based on the supporting
evidence gathered
• Validate findings with the appropriate individuals and discuss the root cause of the
identified findings
• Complete supervisory review of working papers and a draft audit report
• Distribute a draft audit report and conduct a closing meeting with key stakeholders
o Discuss the audit results, finings, conclusions, and recommendations
o Discuss management responses
• Obtain written management responses and finalize a report
• Review report with members of City Council and/or the appropriate Council
Committee
Deliverables:
The following deliverable will be prepared as part of this engagement:
• Audit Report
Schedule of Performance
Anticipated Start Date: December 1, 2022
Anticipated End Date: June 30, 2023
6.a
Packet Pg. 146
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $61,550. The not-to-exceed budget is based on an estimate of 350 total project hours, of which 20 are estimated to be completed by the City Auditor.
Reimbursable Expenses
If circumstances allow, Baker Tilly anticipates planning one on-site fieldwork week. Given this
possibility, Baker Tilly could incur reimbursable expenses for this Task.
The not-to-exceed maximum for reimbursable expenses for this Task is $8,500. The following summarizes anticipated reimbursable expenses (for three team members):
• Round-trip Airfare – $2,000 (3 round trip flights)
• Ground Transportation (car rental or Uber/taxi) - $2,000
• Hotel accommodation - $3,000 (12 nights)
• Food and incidentals – $1,500 Note that, as the restrictions associated with COVID-19 change, the project team will work with the City to consider circumstances at the time.
6.a
Packet Pg. 147
PROFESSIONAL SERVICES TASK ORDER
TASK ORDER 04.18 Management Request – Janitorial Contract Compliance Review
Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179340
OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE)
1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340
1B. TASK O RDER NO.: FY23-4.18
2.CONSULTANT NAME: Baker Tilly US, LLP
3.PERIOD OF PERFORMANCE: START: December 1, 2022 COMPLETION: June 30, 2023
4 TOTAL TASK ORDER PRICE: $73,500
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $1,235,000
5.BUDGET CODE_______________
COST CENTER________________
COST ELEMENT______________
WBS/CIP__________
PHASE__________
6.CITY PROJECT MANAGER’S NAME & DEPARTMENT:
Greer Stone, Chair of the City Council’s Policy and Services Committee
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): N/A
I hereby authorize the performance of the work described in this Task Order.
APPROVED: CITY OF PALO ALTO
BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant.
APPROVED: COMPANY NAME: ______________________
BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________
6.a
Packet Pg. 148
Attachment A
DESCRIPTION OF SCOPE OF SERVICES
Introduction
Attachment A, the Description of Scope of Services, contains the following four (4) elements:
•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)
Services & Deliverables
Baker Tilly’s approach to conducting an internal audit of Contract Management for ALPR Technology involves three (3) primary steps:
•Step 1: Audit Planning
•Step 2: Control Review and Testing
•Step 3: Reporting
Step 1 – Audit Planning
This step consists of the tasks performed to adequately plan the work necessary to address
the overall audit objective and to solidify mutual understanding of the audit scope,
objectives, audit process, and timing between stakeholders and auditors. Tasks include:
•Gather information to understand the environment under review
o Understand the organizational structure and objectives
o Review the City code, regulations, and other standards and expectations
o Review prior audit results, as applicable
o Review additional documentation and conduct interviews as necessary
•Assess the audit risk
•Write an audit planning memo and audit program
o Refine audit objectives and scope
o Identify the audit procedures to be performed and the evidence to be obtained
and examined
•Announce the initiation of the audit and conduct kick-off meeting with key
stakeholders
o Discuss audit objectives, scope, audit process, timing, resources, and
expectations
o Discuss documentation and interview requests for the audit
6.a
Packet Pg. 149
Step 2 – Control Review and Testing
This step involves executing the procedures in the audit program to gather information,
interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives. The preliminary audit objective is to: (1) Determine whether the City requires its janitorial service providers to meet the responsible employment standards and monitors the providers' compliance with contract terms to ensure that the City receives
effective and reliable janitorial services. (2) Determine whether the City's janitorial service
providers comply with the contract terms in order to provide professional janitorial services to the City. Procedures include, but not limited to:
• Review the contract(s) and understand the contract terms and requirements set by the
City.
• Review the City’s performance monitoring practices for janitorial service contracts to determine whether controls are implemented to ensure service providers’ compliance with contract terms.
• Perform test procedures including observations of monitoring controls to determine the control effectiveness.
• Review the documents evidencing the service providers’ compliance with the contract terms, including the wage data, etc.
• If possible, visit some of the buildings cleaned by the service providers to observe the conditions and inquire with the service providers’ employees. Alternatively, interview them remotely or send a survey as necessary to gather necessary information.
• Compare the process and controls against the best practices.
Step 3 – Reporting
In Step 3, the project team will perform tasks necessary to finalize audit working papers,
prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks
include:
• Develop findings, conclusions, and recommendations based on the supporting
evidence gathered
• Validate findings with the appropriate individuals and discuss the root cause of the
identified findings
• Complete supervisory review of working papers and a draft audit report
• Distribute a draft audit report and conduct a closing meeting with key stakeholders
o Discuss the audit results, finings, conclusions, and recommendations
o Discuss management responses
• Obtain written management responses and finalize a report
• Review report with members of City Council and/or the appropriate Council
Committee
Deliverables:
The following deliverable will be prepared as part of this engagement:
6.a
Packet Pg. 150
• Audit Report
Schedule of Performance
Anticipated Start Date: December 1, 2022
Anticipated End Date: June 30, 2023
Maximum Compensation Amount and Rate Schedule
The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this
Task is $73,500. The not-to-exceed budget is based on an estimate of 350 total project hours, of
which 20 are estimated to be completed by the City Auditor.
Reimbursable Expenses
If circumstances allow, Baker Tilly anticipates planning one on-site fieldwork week. Given this possibility, Baker Tilly could incur reimbursable expenses for this Task. The not-to-exceed maximum for reimbursable expenses for this Task is $5,700.
The following summarizes anticipated reimbursable expenses (for two team members):
• Round-trip Airfare – $1,350 (2 round-trip flights)
• Ground Transportation (car rental or Uber/taxi) - $1,350
• Hotel accommodation - $2,000 (8 nights)
• Food and incidentals – $1,000
Note that, as the restrictions associated with COVID-19 change, the project team will work with
the City to consider circumstances at the time.
6.a
Packet Pg. 151
FY2022/2023 Audit Plan
5
Proposed Audit Activities for FY2022-2023
Included in the tables below are the proposed audit activities for the remainder of FY2022 and FY2023. Each audit activity
corresponds to a risk rated as High or Moderate in the Risk Assessment Report and selected based on other factors outlined
on page 3.
The preliminary audit objectives are described for each audit listed. These objectives and scope of each audit activity will be
further defined based on the result of a project planning risk assessment processes performed at the beginning of each
activity.
Audits are planned in three overall phases – note that the timing may differ slightly for each audit activity:
–Phase I – Activities projected to start before March 2022 and end by June 2022
–Phase II – Activities projected to start in March 2022 and end by December 2022
–Phase III – Activities projected to start in June 2022 or January 2023 and end by June 2023
Amendments to the proposed audit plan will be proposed either as needed or after conducting an annual risk assessment
and update the audit plan, as needed, during FY23. Amendments may be proposed in response to changes in the City’s
environment such as organizational structure, operations, risks, systems, and controls. Please note that the City Auditor will
actively manage projects and overall budgets and workload in its execution of the workplan.
For each audit activity, a task order is submitted to the City Council for approval before the work is commenced. We have
prepared and attached to this report multiple task orders that correspond to audit activities we have prioritized (e.g., those in
Phase I). Those audit activities for are marked with an “X” in the ‘Seeking Approval’ column of the table below, and the Task
Orders are included in the Appendix.
7.b
Packet Pg. 99
ATTACHMENT B:
Excerpt OCA FY 2023 Audit Workplan
6.b
Packet Pg. 152
FY2022/2023 Audit Plan
6
Phase I Activities
Seeking
Approval
Function Project Title Audit Objectives Timeline Estimated
Hours
FY22 Cost FY23 Cost
(*)
Total Cost
FY21+22+23
_
Administrative
Services
Economic Recovery
Advisory (Task Order
4.7)
● Review the City’s long-term financial planning model and offer
recommendations for improvement.
● Identify and evaluate key revenue sources categories that present long
term risk to the City's financial sustainability.
● Perform scenario analysis and advise in the development of long term
financial projections.
March -
December
2021
400 $64,663 $64,663
Public Works
Public Safety Building
-Construction Audit
(Task Order 4.8)
● Monthly invoice review
● Change order testing
● Contingency and allowance testing
● Lien waiver control
● Compliance with insurance requirements
● Closeout testing
● Verify the City’s implementation and adherence to documented project
controls
March 2021
-June 2023 420 $26,633 $26,633 $51,266
Planning and
Development
Services
Building Permit &
Inspection Process
Review
(Task Order 4.9)
● Identify highest impact area to focus the assessment (e.g., specific permit
type(s), specific sub-processes, etc.).
● Document corresponding process(es) and evaluate for efficiency and
effectiveness.
● Benchmark operational performance against industry practices and
established standards.
April –
September
2021
360 $48,300 $48,300
Citywide
Nonprofit Agreements
Risk Management
Review
(Task Order 4.10)
● Evaluate controls in place to ensure that nonprofit organizations are
properly vetted prior to selection and monitored through the life of an
agreement.
● Assess the performance monitoring process against the best practice.
● Follow up on relevant audit findings from past audit work.
May –
September
2021
400 $55,246 $55,246
Utilities
Utility Work Order &
Process Review
(Task Order 4.11)
● Determine whether adequate controls are in place and working effectively
around the work order process
● Assess the work order process against best practices
January -
December
2022
400 $81,400 $81,400
Administrative
Services /
Information
Technology
Wire Payment
Process and Controls
(Task Order 4.12)
● Determine whether adequate controls are in place and working effectively
to ensure that all disbursements are valid and properly processed in
compliance with City’s policies and procedures
● Determine whether end user security awareness training is sufficient to
prevent erroneous payments caused by phishing
February -
June 2022 270 $54,550 $54,550
Phase I Sub Total 2,250 $329,792 $26,633 $355,425
*For the purpose of audit plan preparation, OCA used the FY22 budget amount for FY23
7.b
Packet Pg. 100
6.b
Packet Pg. 153
FY2022/2023 Audit Plan
7
Phase II Activities
Seeking
Approval
Function Project Title Audit Objectives
(preliminary objectives for audits not currently subject to approval)
Timeline Estimated
Hours
FY22 Cost FY23 Cost
(*)
Total Cost
X Human Resources Remote and Flexible
Work Study
● Assess employee and management perspectives for long-term remote
and flexible work viability and associated challenges
● Evaluate positive outcomes and challenges for managing a mixed
location workforce
● Identify policies, processes, management practices and work culture
improvements that may improve the City’s ability to manage a remote
workforce
March -
December
2022
285 $50,000 $10,000 $60,000
X Information
Technology
Cybersecurity
Assessment
● Map current state security capabilities to the NIST Cybersecurity
Framework and evaluate the maturity of current security processes
● Identify current risks related to weaknesses in the City’s cybersecurity
program
● Identify target state objectives utilizing the Capability Maturity Model
(CMMI) and develop recommendation to meet the objectives
March -
December
2022
525 $90,000 $20,000 $110,000
X Public Works Wastewater Treatment
Plant Agreement Audit
● Evaluate whether direct and indirect costs incurred by the City are
properly allocated to the operation of the Wastewater Treatment Plant.
● Review whether costs are properly allocated to the various parties to
the Wastewater Treatment Plant Agreement.
March 2022
- December
2022
400 $60,000 $2,250 $62,250
Phase II Sub Total 1,210 $194,000 $38,250 $232,250
* For the purpose of audit plan preparation, OCA used the FY22 budget amount for FY23
7.b
Packet Pg. 101
6.b
Packet Pg. 154
FY2022/2023 Audit Plan
8
Phase III Activities
Seeking
Approval
Function Project Title Preliminary Audit Objectives Timeline Estimated
Hours
FY22 Cost FY23 Cost
(*)
Total Cost
Transportation Contract Management -
ALPR Technology
● Determine whether policies and procedures are implemented
effectively to protect the privacy of personal information gathered using
ALPR technology for the City's parking management.
● Determine whether the City monitors the vendor's performance to
ensure the compliance with contract terms and applicable laws and
regulations related to data privacy.
June 2022 -
January
2023
400 $82,500 $82,500
Administrative
Services
Investment
Management
●Determine whether adequate controls are in place and operating
effectively to ensure that investments are managed in accordance
with the investment management and other relevant policies.
● Assess the organizational structure and operations of the
investment portfolio management function against best practice.
June 2022 -
January
2023
350 $61,550 $61,550
Information
Technology
Disaster Recovery
Preparedness
● Determine whether a formal disaster recovery plan exists and aligns
with the City's needs for business continuity
● Determine whether a disaster recovery plan is periodically tested and
updated to ensure a successful recovery
January -
June 2023 400 $87,500 $87,500
Administrative
Services Procurement Process
● Determine whether adequate controls are in place and working
effectively to ensure that the appropriate vendors are selected properly to
achieve desired objectives
● Identify the opportunities to improve the efficiency and effectiveness of
the procurement process
January -
June 2023 350 $61,550 $61,550
Planning and
Development
Services
Long Range Planning
● Review progress against intended goals and identify any gaps
● Determine whether an effective control environment exists for the Long
Range Planning group to maintain City's Comprehensive Plan
● Determine whether adequate controls are in place and working
effectively for data analyses
January -
June 2023 400 $82,500 $82,500
Public Works ADA Compliance
● Determine whether improvements have been made to make facilities,
programs, and services accessible in accordance with the Transition
Plan and Self-Evaluation Final Study to ensure compliance with the
Americans with Disabilities Act (ADA) OF 1990
January -
June 2023 350 $61,550 $61,550
TBD TBD / Ad Hoc Requests TBD TBD TBD
Phase III Sub Total 2,300 $0 $458,100 $458,100
Phase I + II + III TOTAL 5,760 $523,792 $521,983 $1,045,775
FY22 - FY23 Budget $600,000 $560,000 $1,160,000
FY23 Ad Hoc / Contingency $76,208 $38,017 $114,225
*For the purpose of audit plan preparation, OCA used the FY22 budget amount for FY23
7.b
Packet Pg. 102
6.b
Packet Pg. 155
City of Palo Alto (ID # 15010)
Office of the City Clerk
City Council CAO Report
Meeting Date: 12/5/2022 Report Type: Consent Calendar
Title: Adoption of a Resolution Declaring Weeds to be a Public Nuisance and
Setting February 27, 2023 for a Public Hearing for Objections to
the Proposed Weed Abatement
THIS ITEM HAS BEEN CONTINUED TO A FUTURE MEETING
From: Lesley Milton, City Clerk
This item will be distributed as a special late packet report on December 1, 2022.
7
Packet Pg. 156
City of Palo Alto (ID # 14710)
City Council Staff Report
Meeting Date: 12/5/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Approval of a Construction Contract With Anderson Pacific Engineering
Construction (APEC) in the Total Amount of $161,846,500; Approval of Three
Amendments to Existing Agreements with: 1) Stanford University, 2) East
Palo Alto Sanitary District, and 3) Mountain View and Los Altos; Approval of
Amendment #2 to Contract Number C19171565 with Brown & Caldwell to
Add Services, to Increase Compensation by $1,484,689 for a New Maximum
Compensation Not-to-Exceed $5,908,791, and to Extend the Contract Term
through March 31, 2028; Approval of Amendment #2 to Contract Number
C21176592C with Carollo Engineers to Add Construction Management
Services, to Increase Compensation by $8,237,021; approval of a resolution
to increase Clean Water State Revolving Fund financing to $193,000,000;
approval of a budget appropriation increasing revenue and expenses; and
approval of an exception to Debt Policy 1-65 for the Secondary Treatment
Upgrades Project (WQ-19001) at the Regional Water Quality Control Plant.
From: City Manager
Lead Department: Public Works
Recommendation
The Finance Committee and staff recommend that City Council:
1. Approve and authorize the City Manager or their designee to execute the construction
contract with Anderson Pacific Engineering Construction, Inc., in the amount of
$161,846,500 for the Secondary Treatment Upgrades project, funded in Wastewater
Treatment Enterprise Fund Capital Improvement Program project WQ-19001, at the
Regional Water Quality Control Plant;
2. Authorize the City Manager or their designee to execute one or more change orders to
the contract with APEC for related, additional but unforeseen work that may develop
during the project, the total value of which shall not exceed $16,184,650 or 10% of the
contract amount, for a total not-to-exceed amount of $178,031,150;
3. Approve Amendment No. 8 to the agreement between Palo Alto and Stanford
8
Packet Pg. 157
City of Palo Alto Page 2
University; Addendum No. 1 to the Agreement between Palo Alto and the East Palo Alto
Sanitary District; and Addendum No. 11 to the agreement among Palo Alto, Mountain
View, and Los Altos;
4. Approve and authorize the City Manager or their designee to execute Amendment No. 2
to Contract No. C19171565 with Brown and Caldwell to increase the contract amount by
$1,484,689 to provide design engineering services beyond the original scope of the
contract for the design of the STU Project (CIP WQ-19001), and to extend the term
through March 31, 2028. The revised total contract amount is not to exceed $5,908,791
including $5,371,628 for basic services and $537,163 for additional services;
5. Approve and authorize the City Manager or their designee to execute Amendment No. 2
to Contract No. C21176592C with Carollo Engineers to increase the contract amount by
$8,237,021 to provide construction management and inspection services during
construction for the STU Project (CIP WQ-19001). The revised total contract amount is
not to exceed $8,841,268 including $8,037,516 for basic services and $803,752 for
additional services;
6. Approve a resolution amending Resolution 9945 to increase the reasonably expected
maximum principal amount of funding to $193,000,000 for design and construction of
the Secondary Treatment Upgrades (CIP WQ-19001) and authorizing reimbursement of
such funding from the Clean Water State Revolving Fund (SRF);
7. Approve an amendment to the Fiscal Year 2023 Budget Appropriation for the
Wastewater Treatment Fund (requires a 2/3 majority vote) by:
a. Increasing revenue from Other Agencies estimate from a State Revolving Fund
Loan by $44,200,400
b. Increasing the Secondary Treatment Upgrades Capital Improvement Program
project (WQ-19001) appropriation by $44,200,400; and
8. Authorize an exception to City Policy and Procedures Debt Policy 1-65 Guideline V.A.6 to
allow the Wastewater Treatment Enterprise Fund to use a debt limit exceeding 15
percent of annual Wastewater Treatment Enterprise Fund operating expenses.
Executive Summary
On November 15, 2022, the Finance Committee voted unanimously to recommend City Council
approval1 to advance a key project to upgrade the secondary stage of the wastewater
treatment system for the City’s Regional Water Quality Control Plant. The Secondary
Treatment Upgrades (STU) project will be financed by the state low-interest SRF loan program
and be repaid by Palo Alto and its five partner agencies. The project was identified in the 2012
1 SR ID# 14918 November 15, 2022 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/agendas-minutes/finance-committee/2022/20221115/20221115pfcs-linked.pdf
8
Packet Pg. 158
City of Palo Alto Page 3
Long Range Facilities Plan (LRFP2). Design began in 2018 and bids were solicited in 2022, with
three bids received on October 6, 2022. Council approval is recommended to award the
construction contract and ancillary support contracts and financing. Construction would start in
early 2023, to be completed by about November 2027. Loan payments on the debt service will
begin in 2028.
To initiate the construction phase of the project, Council will be approving:
• A construction contract with Anderson Pacific Engineering Construction, Inc. (APEC)3;
• Amendments to design and construction management service contracts with Brown and
Caldwell (BC) (Attachment D) and Carollo Engineers (Attachment E), respectively;
• A Resolution (Attachment F) to set maximum SRF loan financing at $193 million;
• Amendments to the partner agreements with Stanford (Attachment A), East Palo Alto
Sanitary District (Attachment B), and Mountain View and Los Altos (Attachment C)
approving the financing of the capital program and the partners’ respective funding
obligations;
• Budget amendments to increase SRF Loan revenue and increase the Secondary
Treatment Upgrade capital project (WQ-19001); and
• An increase to the debt policy granting an exception to Debt Policy 1-654 Guideline V
related to the debt level carried by the Wastewater Treatment Enterprise Fund.
Background
The Palo Alto Regional Water Quality Control Plant (Treatment Plant) provides wastewater
treatment services for the cities of Palo Alto, Mountain View, and Los Altos; the Town of Los
Altos Hills; Stanford University; and the East Palo Alto Sanitary District. The Treatment Plant is
an advanced treatment facility that uses a multi-stage process to remove organic materials and
other pollutants from approximately 16 million gallons per day of wastewater generated in the
service area. The treated effluent is predominantly discharged to San Francisco Bay and meets
the stringent discharge requirements of the California Regional Water Quality Control Board as
well as the requirements for reuse in recycled water applications. Palo Alto owns and operates
the Treatment Plant’s wastewater treatment and disposal facilities and is responsible for
managing capital improvements to the plant.
In 2012, Treatment Plant staff conducted a Long Range Facilities Plan5 to review existing and
future (50-year time frame) capacity needs, plant condition and deficiencies, the impacts of
potential regulatory changes, alternatives to the existing solids incineration and liquid
2Long Range Facilities Plan, 2012 https://www.cityofpaloalto.org/files/assets/public/public-works/water-quality-
control-plant/lrfp-final-report-08-2012.pdf
3 Anderson Pacific Construction Contract for the Secondary Treatment Project
https://www.cityofpaloalto.org/files/assets/public/public-works/water-quality-control-plant/c23185822-
anderson-pacific_cc_minutetraq-10-31.pdf
4 Debt Policy 1-65 April 11, 2017 https://www.cityofpaloalto.org/files/assets/public/public-works/water-quality-
control-plant/1-65-asd-debt-policy-2017-04-11_4.pdf
5 Long Range Facilities Plan, 2012 https://www.cityofpaloalto.org/files/assets/public/public-works/water-quality-
control-plant/lrfp-final-report-08-2012.pdf
8
Packet Pg. 159
City of Palo Alto Page 4
treatment processes, site layouts for plant improvements and potential expansion, and
preliminary cost estimates. The LRFP, which was the first comprehensive long-range plan since
1966, included recommendations to rehabilitate and replace existing facilities nearing the end
of their useful life. The highest priority projects are being implemented over multiple years to
effectively manage resources and costs. Construction of the sludge dewatering facility was
completed in 2019, which was a key component of the LRFP. The primary sedimentation tank
rehabilitation project is in construction and will be completed in 2023. Other facilities requiring
capital improvement in the next 10 years for facilities at the end of their useful life include a
new outfall pipe, new support facilities, relining of an aging joint intercepting sewer, and a new
headworks facility.
The Treatment Plant was originally constructed in 1934 and has undergone several expansions
and upgrades. A key upgrade in 1972 included construction of a biological treatment process
unit (i.e., secondary treatment). The process unit consists of four concrete aeration basins (each
measuring 120 feet by 135 feet and 20 feet deep) that allow the growth of specific bacteria to
breakdown and remove organic compounds in the wastewater. Ancillary facilities include an air
blower room and pump stations. This equipment delivers oxygenated process air and
recirculates sludge, as needed. Other equipment includes a standby power generator, electrical
switchgear, and motor control centers to distribute electrical power to the process equipment.
This equipment is between 28 to 50 years old and beyond its useful life. The current secondary
treatment process is not able to remove nitrogen which is a new regulatory requirement to
discharge treated effluent to San Francisco Bay to prevent toxic algae blooms.
Bid documents were prepared and bids solicited from construction contractors. A
memorandum of understanding for proprietary equipment for the STU project was approved by
Council on August 1, 20226 and included in the bid documents.
On June 21, 2021, Council approved five separate five-and-a-half-year contracts7 with MNS
Engineers, Inc.; CDM Smith; Carollo Engineers; MCK Americas, Inc.; and Tanner Pacific, Inc.
These contracts provide for RWQCP On-Call Construction Management and Inspection Services;
were initially set at a not-to-exceed total amount of $1 per contract; and provide qualified
consultants that can provide on-call services during construction of various capital projects
recommended by the Long-Range Facilities Plan. Services to be used are on a per-project basis,
at the City’s discretion. One contract with MNS Engineers was authorized by Council for a not-
to-exceed amount of $1.6 million.
Background: California Clean Water State Revolving Fund (SRF) Program
The State Water Resources Control Board Division of Financial Assistance administers the Clean
Water State Revolving Fund (SRF) program. The SRF program provides low interest financing to
6 SR ID#11496 August 1, 2022 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/agendas-minutes/city-council-agendas-minutes/2022/20220801/20220801pccsmlinked.pdf
7 SR ID# 12324 June 21, 2021 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2021/id-12324.pdf
8
Packet Pg. 160
City of Palo Alto Page 5
agencies for wastewater projects. Under this program, eligible projects can apply for loans with
interest rates that are approximately half of the State General Obligation rate, resulting in
lower project costs and maximizing benefits to ratepayers and partner agencies. For the
Secondary Treatment Upgrades project, Palo Alto executed a loan with the SRF program on
May 9, 2022 with favorable terms including a 0.8% fixed interest rate, a 30-year term, project
financing of approximately $169 million, and debt payments that will start one year after
project substantial completion. Palo Alto has previously obtained SRF loans for the:
• Palo Alto/Mountain View Recycled Water Pipeline project ($9.0 million, 20-year term,
Agreement 07-814-550, executed 10/12/07);
• Ultraviolet Disinfection Facility ($8.5 million, 20-year term, Agreement 09-814-550,
executed 10/27/09);
• Sludge Dewatering and Truck Loadout Facility ($25.7 million, 30-year term, Agreement
D16-01034, executed 6/7/17); and
• Primary Sedimentation Tanks Rehabilitation and Equipment Room Electrical Upgrade
Project ($19.4 million, 30-year term, Agreement D20-01009, executed 7/12/21).
Council previously approved Resolution 99458, authorizing the reimbursement of the funding
for this project by the SRF program. At that time, project financing was set at $169 million.
Having received three actual bids for construction work, staff now requests Council to approve
a revised resolution to authorize reimbursement of $193 million for a new financing amount.
Staff is currently in negotiations with state SRF program staff for the increased loan amount.
SRF program staff have indicated that they can fund the increased amount for the loan at the
same interest rate, however, a revised resolution of authorization approved by Council for
reimbursement is required for the increased funding amount.
The total SRF loan application includes the costs for planning, design, construction, construction
contingency, capital program administration, and construction management. The partner
agreements being approved by Council with Mountain View, Los Altos, EPASD, and Stanford
University include the increased funding amount required.
Background: Brown and Caldwell Design Amendment No. 2
On October 1, 2018, Council approved a professional services contract9 for design services with
BC for the STU Project at the Palo Alto Regional Water Quality Control Plant (RWQCP). The
original contract amount was $2,923,357 including $2,657,597 for basic services and $265,760
for additional services.
After the initial contract award, BC performed field survey work, equipment condition
8 SR ID#11834 March 1, 2021 https://www.cityofpaloalto.org/files/assets/public/public-works/water-quality-
control-plant/sr-11834_1.pdf
9 SR ID#9485 October 1, 2018 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2018/id-9485-design-services-for-rwqcp-secondary-
treatment-process-upgrades.pdf
8
Packet Pg. 161
City of Palo Alto Page 6
assessments, process design modeling, preliminary design calculations, equipment sizing, and
prepared plans. It was through this process that the Membrane Aerated Biofilm Reactor
technology was found to be a superior process component for the long-term operation of the
RWQCP, although the shorter-term design and construction costs are higher than for the
process originally envisioned. This design approach constituted a scope change in the design
work. On December 7, 2020, Council approved Amendment No. 110 to this contract to increase
the contract amount by $1,500,745 to allow BC to provide additional services required to meet
the City’s latest design standards (including Palo Alto's Sea Level Rise Adaptation Policy11)
(approved by Council March 18, 2019), and integrate the new design into the existing process
through a complicated construction and operation phasing effort. The amendment included an
increased contract amount and additional time to perform the work.
As the design proceeded, it became evident that construction sequencing was becoming more
complicated and required a longer construction duration as a result of attempting to build the
project, while also operating the RWQCP to meet permitted discharge limitations.
Discussion
The secondary treatment process must be upgraded to a process that removes harmful
nitrogen by creating both oxygen-deficient and oxygen-rich zones in modified aeration tanks.
The project will improve final water quality by removing nitrogen by up to 78 percent, reduce
the need for supplemental alkalinity chemicals used to ensure proper effluent pH, ensure the
Plant continues to meet effluent discharge permit limits, and allow for ultimate
decommissioning of the aging biotrickling filters and other aging equipment. The project will
rehabilitate four concrete aeration basins as well as the blower room and sludge pumping
stations. Equipment will be replaced including piping and ancillary systems, extending the
useful life of mechanical and electrical equipment components by at least another 30 years,
while the concrete and steel structure life cycle will be extended by at least another 50 years.
The scope of work includes the following for all four basins: replacement of the air bubble
diffusers and the piping manifolds in the basins; replacement and automation of influent and
effluent flow diversion gates; concrete work to install new flow channels for flow distribution;
replacement of air blowers and sludge pumps; installation of two pump stations, a standby
generator and an electrical power load center; and replacement of aging motor control centers
(i.e., electrical power distribution equipment).
Discussion: Award of Construction Contract to Anderson Pacific Engineering Construction , Inc.
On July 21, 2022, the City solicited formal bids from qualified contractors for the STU Project.
The bidding period was 78 calendar days. Three (3) bids were received on October 6, 2022, with
bid prices ranging from $161,846,500 to $167,518,500 as noted in the Bid Summary
10 SR ID#11155 December 7, 2020 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2020/id-11155.pdf
11 SR ID#9576 March 18, 2019 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2019/031819-9576-proposed-draft-sea-level-rise-
policy.pdf
8
Packet Pg. 162
City of Palo Alto Page 7
Attachment G). Bid process details are summarized in Table 1 below. The lowest bid was
$161,846,500.
Table 1: Summary of Bid Process
Bid Name/Number STU Project (IFB-185822)
Proposed Length of Project 58 months after Notice to
Proceed
Number of Bid Packages downloaded by Contractors and
Subcontractors 41
Number of Bid Packages downloaded by Builder’s Exchanges 14
Number of Bid Packages downloaded by Suppliers and Others 39
Total Days to Respond to Bid 78
Pre-Bid Meeting (In Person) Yes
Number of Companies Attended Pre-Bid Meeting 17
Number of Bids Received: 3
Base Bid Price Range $161,846,500 to $167,518,500
Staff has reviewed all bids submitted and recommends the bid of $161,846,500 submitted by
APEC be accepted and that APEC be declared the lowest responsible bidder. The base bid is
36% above the Engineer's estimate of $118,707,335, which was dated April 26, 2022. Supply
chain issues, high inflation including high oil prices, local market volatility, duration of the
contract, and labor availability and commodity prices are factors that contributed to the bids
being much higher than the Engineer’s estimate. However, the “bid spread” on the three bids
received are within 3.5% of each other, indicating a common understanding of the project
scope and cost. Staff is not recommending a rebid because of the tight bid spread and the likely
risk of higher construction costs due to more inflation-induced expenses in a rebid situation,
including the already negotiated pricing for the Membrane Aerated Biofilm Reactor equipment
with Suez. Furthermore, neighboring agencies undertaking similar projects have also witnessed
higher bids in 2022 (e.g., City of Sunnyvale’s Secondary Treatment Upgrade project engineer’s
estimate of $150 to $250 million and low bid of $278 million; Union Sanitary District’s Aeration
Basin Modifications project engineer’s estimate of $64 million and low bid of $121 million).
These examples further suggest broader economic causes for the higher bid environment for
construction work, rather than flaws unique to the Engineer’s estimate for the STU Project.
Thus, staff recommends awarding the construction contract to APEC now, which will leverage
the favorable terms of the SRF program loan and move the City forward in a timely manner on
needed wastewater treatment capital investment.
A contingency amount of $16,184,650 (10% of the bid price) is requested for related, additional
but unforeseen work that may develop during the project. Staff confirmed with the
Contractor's State License Board that the contractor has an active license on file.
Discussion: Partner Agencies’ Agreements
The City’s agreements with the partner agencies (Mountain View and Los Altos, Stanford, and
8
Packet Pg. 163
City of Palo Alto Page 8
East Palo Alto Sanitary District) all require partner agency approval for major capital projects,
including the STU Project. The partners have each approved amendments to the capital
improvement program, authorizing the SRF financing, and approving their respective funding
obligations (City of Mountain View on November 15, 2022; City of Los Altos on November 29,
2022; East Palo Alto Sanitary District on November 3, 2022; and Stanford University anticipated
prior to December 5on November 23, 2022). The City’s agreement with the Town of Los Altos
Hills does not require prior approval of capital improvement projects because Los Altos Hills
contributes the smallest about of wastewater flow to the plant. Staff recommends Council
approve the following:
• Amendment No. 8 to the Agreement between Palo Alto and Stanford University
(Attachment A);
• Addendum No. 1 to the Second Amended and Restated Agreement between Palo Alto
and the East Palo Sanitary District (Attachment B); and
• Addendum No. 11 to the Agreement between Palo Alto, Mountain View, and Los Altos
(Attachment C).
The partner agencies’ funding obligations for major capital projects are based on their capacity
rights, as specified in their respective agreements. These rights may only be reallocated by
written agreement of all parties, or if any one party’s actual flows exceed 80% of their capacity
right. To date, all of the partner agencies’ actual flows are well below the 80% threshold.
In contrast, operation and maintenance expenses, which include the City’s administrative and
overhead expenses, are allocated based on each agency’s actual flows. Thus, partner agencies’
annual contributions for operations and maintenance can fluctuate from year to year based on
the volume and strength of wastewater conveyed to the plant for treatment (see Attachment
H).
Discussion: Brown & Caldwell Design Contract Amendment No. 2
The projected duration of the construction phase is approximately five years, with each of the
four aeration basins requiring one year to be converted from the existing to the modified
process upgrades. Construction is anticipated to begin in early 2023 and continue to November
2027. Under the original design contract, it was anticipated that construction was expected to
commence in early 2020 with the upgraded facility fully operational by spring 2022.
Staff recommends that Council approve Amendment No. 2 to add funds in the amount of
$1,484,689 to the project to address the delayed construction start date, additional
construction duration, and for:
1. Additional design services:
a. Further development of an indicative construction schedule.
b. Further development of construction sequencing and constraints specifications.
c. Preliminary design of temporary facilities and systems required during
8
Packet Pg. 164
City of Palo Alto Page 9
construction, including development of preliminary design drawings.
d. As-needed additional engineering services for unforeseen site conditions and
coordination with other ongoing major capital projects at the RWQCP
e. Updated opinion of probable construction cost and projection of cash flow during
construction for budgeting purposes.
f. Participation in a constructability review to be conducted by the City’s selected
construction manager.
g. Additional meetings and workshops.
2. Additional bid period services associated with the items listed above and the expanded
scope and complexity of the Project.
3. Additional engineering services during construction associated with a larger volume of
construction documents and resubmittals of the items listed above and the expanded
scope and complexity of the Project.
4. Additional commissioning and startup services to account for staged commissioning and
startup of the Project.
5. Additional project management services associated with the expanded scope and duration
of the Project.
6. Updated costs, accounting for increases in hourly billing rates, for providing engineering
services during construction.
The original BC design contract amount was $2,923,357. Amendment No. 1 to the contract
increased the contract amount by $1,500,746. Amendment No. 2 adds $1,484,689 to the
contract. The revised total contract amount is a not-to-exceed $5,908,791 including $5,371,628
for basic services and $537,163 for additional services.
Discussion: Carollo Engineers Construction Management Contract Amendment No. 2
On June 8, 2022, staff provided each of the five construction management consultants a scope
of services with a list of tasks needed for the upcoming construction project (i.e., Work Order
#3). Four proposals were received from Carollo Engineers, MNS Engineers, MCK Americas, and
Tanner Pacific with prices ranging from $7,488,200 to 14,482,634.
Table 2: Summary of Construction Management Work Order Proposals
Request for Work Order Proposal Issued June 8, 2022
Deadline for Questions, Clarifications July 11, 2022
Proposals Due July 20, 2022
Proposals Received 4
Finalist Identified 1
Proposals Price Range $7,488,200 to 14,482,634
An evaluation committee consisting of Public Works Department staff was formed to review
the four proposals. The committee carefully reviewed each firm's qualifications and submittal in
response to the criteria identified in the Request for Work Order Proposal, including quality and
completeness of the proposal, quality and effectiveness of services, experience with projects of
8
Packet Pg. 165
City of Palo Alto Page 10
similar scope and complexity, prior record of performance, cost, proposer’s financial stability,
and ability to provide future maintenance and/or services.
Council scheduled approval of construction and construction management services for a
separate project on November 14, 202212, entitled the 12kV Electrical Power Distribution Loop
Rehabilitation Bid Package 1 Project (WQ-19002) at the Regional Water Quality Control Plant.
That construction contract, also with APEC, will also be managed and inspected by Carollo
Engineers under Amendment #1 to Contract Number C21176592C to add services, to increase
compensation by $604,246 for a new maximum compensation not-to-exceed $604,247 for the
Wastewater Treatment Enterprise Fund for the 12kV Electrical Power Distribution Loop
Rehabilitation Bid Package 1 Project (WQ-19002) at the Regional Water Quality Control Plant.
Staff recommends amending the contract with Carollo, who provided a more comprehensive
approach to the services, demonstrated a clear understanding of needs, had the lowest cost,
and proposed innovative solutions to the challenges of the complex capital program. Total costs
are shown in Table 3 below.
Table 3: Carollo Engineers, C21176592C, Authorized Funding
Staff Report
Basic
Services
Additional
Services
Not-to-
Exceed
Total
Initial contract, 6/21/2213 $1 -- $1
Amendment #1, 11/14/22, 12kV Electrical Power
Distribution Loop Rehabilitation Bid Package 1
Project (WQ-19002) 14
$549,314 $54,932 $604,246
Amendment #2, Secondary Treatment Upgrades
Project (WQ-19001) $7,488,201 $748,820 $8,237,021
Total: $8,037,516 $803,752 $8,841,268
Timeline
During construction, multiple channels and tanks must be bypassed, taken out of service,
cleaned, upgraded, and returned to service. At least six major phases are anticipated. As a
result, the complex phasing requires a 58-month construction duration. The BC design contract
Amendment No. 2 will extend the consultant contract term from March 31, 2025 to March 31,
2028.
12 SR ID# 14602 November 14, 2022 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/agendas-minutes/city-council-agendas-minutes/2022/20221114/20221114pccsm-linked-cq-ppts.pdf
13 SR ID# 12324 June 21, 2021 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2021/id-12324.pdf
14 SR ID# 14602 November 14, 2022 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/agendas-minutes/city-council-agendas-minutes/2022/20221114/20221114pccsm-linked-cq-ppts.pdf
8
Packet Pg. 166
City of Palo Alto Page 11
Secondary Treatment Upgrades
Design: Complete
Construction start: January 2023
Construction complete: November 2027: 58-month duration
Design services complete March 2028: 4-month post construction
First STU project loan payment: November 2028: 1-year after substantial completion
Resource Impact
The SRF loan for the in-progress Primary Sedimentation Tanks Rehabilitation Project is being
amended from the already approved $17.0 million to a new financing amount of $19.4 million,
as detailed in partner agreements (Attachments A, B, and C). Loan repayments for the Primary
Sedimentation Tanks Rehabilitation Project will begin in calendar year 2024, one year after
project substantial completion.
The SRF loan for the Secondary Treatment Upgrades Project is approximately $169 million; staff
has revised that financing to $193 million. Total project cost estimates were adjusted when new
Engineer’s cost estimates and design stages were completed. The requested loan amount
reflects securing the initial loan with an approximate total project estimate. The design and
construction of this project, including associated construction management and administrative
costs, will be financed through the SRF loan, which is disbursed to Palo Alto on a
reimbursement basis. Pursuant to SRF policy, the first repayment occurs one year after project
substantial completion, which is estimated to be in calendar year 2028. The annual SRF loan
repayment, which includes principal and interest, is based on an amortized period of 30 years.
The estimated annual repayments paid by each contributing partner agency are summarized in
Tables 4 and 5 below. The percent shares in Table 4 and 5 below are fixed capacity share, which
is further detailed in Attachment H. The fixed capacity share applies to capacity rights in major
capital projects funded with long-term debt financing, and the fixed capacity share differs from
the varying operating share each agency pays from year-to-year based on the relative
contribution from partner-to-partner for annual operating expenses. Changes in operating
share along with long term flow trend are also included in Attachment H, as well as a
comparison between agencies for single family residential monthly sewer bills, as requested at
the Finance Committee presentation for this project.
Table 4: CWSRF Loan Repayment Partner Agency Estimates
Primary Sedimentation Tank (PST) Rehabilitation Project
Contributing Partner Agency Percent Share Annual Repayment*
Palo Alto 38.16% $282,682
Mountain View 37.89% $280,681
Los Altos 9.47% $70,152
East Palo Alto Sanitary District 7.64% $56,595
Stanford University 5.26% $38,965
Los Altos Hills 1.58% $11,704
Total: 100.00% $740,779
8
Packet Pg. 167
City of Palo Alto Page 12
* Based on CWSRF loan amount of $19,400,000 at 0.9% locked interest rate for 30-year term
Table 5: CWSRF Loan Repayment Partner Agency Estimates
Secondary Treatment Upgrades (STU) Project
Contributing Partner Agency Percent Share Annual Repayment**
City of Palo Alto 38.16% $2,767,754
City of Mountain View 37.89% $2,748,171
City of Los Altos 9.47% $686,861
East Palo Alto Sanitary District 7.64% $554,131
Stanford University 5.26% $381,509
Town of Los Altos Hills 1.58% $114,598
Total: 100.00% $7,253,025
** Based on CWSRF loan amount of $192,767,840 at 0.8% locked interest rate for 30-year term
This is a multi-year contract over the course of design and through the completion of
construction. The funding for this amended contract will be allocated from the Wastewater
Treatment Enterprise Fund Capital Improvement Program Project (WQ-19001). As approved in
the FY 2023 Adopted Budget, WQ-19001 has total funding of $149.2 million, with State
Revolving Fund (SRF) loan revenue of $148.8 million budgeted to offset the costs for this
project, and the remaining $0.4 million covered by the Wastewater Treatment Fund. Staff
previously secured a SRF loan (at 0.8% interest rate) as the source of funding for the design
contract, and future construction and construction management contracts in the amount of
$169.0 million, and recommends increasing this amount to $193.0 million as part of this
memorandum. Increasing the SRF Revenue by $44.2 million will allow staff to increase the WQ-
19001 capital project by $44.2 million to align with the project scope.
Palo Alto RWQCP treats the combined wastewater from Palo Alto, Los Altos, Los Altos Hills,
Mountain View, Stanford University, and the East Palo Alto Sanitary District. Palo Alto’s share of
this project is 38.16% and the other five agencies’ share is 61.84%, based on the fixed capacity
established in partners’ agreements. As the lead agency, the City of Palo Alto will appropriate
the funding for this Project in the Fiscal Year 2023 Wastewater Treatment Enterprise Fund
Capital Improvement Program Budget for the Secondary Treatment Upgrade Project (WQ-
19001). The design and construction of this project, including associated construction
management and administrative costs, is being financed through the CWSRF loan, which is
disbursed on a reimbursement basis.
Cashflow Impacts from State SRF Loan Reimbursement Process
The City’s Wastewater Treatment Fund cash balance was $12.7 million on June 30, 2022.
Potential negative cash balances could occur in the future (depending on spending patterns).
The cash balance is used to handle cash flows that cover different timing of revenues and
expenses. The RWQCP’s large capital program will be using several SRF loans in the coming
years, including the large SRF loan for the STU Project. Contractor expenses are expected to be
8
Packet Pg. 168
City of Palo Alto Page 13
many millions of dollars each month with standard payment terms within 30 days. The state
reimburses the City for these payments to contractors on a much longer timeframe (e.g., four
to six months based on past experience). The City has historically not encountered cash flow
concerns even with SRF funding as the magnitude of the projects had smaller monthy costs. For
the STU, a much larger project, the mismatch in timing of reimbursement from the state is
expected to cause a greater drawdown of the Wastewater Treatment Fund cash balance,
causing a negative fund balance during the STU project. Exact timing of the negative cash
balance is unknown during the 58-month construction duration; a clearer understanding of
timing is expected once the contractor provides a construction schedule. The State has
indicated that they cannot improve on the turnaround time for reviewing disbursement
requests.
Public Works Environmental Services and Administrative Services Department staff are
evaluating potential solutions, including short term loans from the private financial market,
early phase in of sewer rate increases, potentially pre-payments from partner agencies, or loans
from other City Enterprise Funds or the General Fund which would help cover the short-term
timing issue for cashflow. Staff will return to Council and the Finance Committee, as needed,
with additional actions on this issue. Use of the SRF loan remains the favorable debt financing
instrument for the RWQCP capital program despite these temporary cashflow concerns.
Policy Implications
This recommendation does not represent any change to existing City policies, except as noted
below for the Debt Policy, and supports the Comprehensive Plan Policy N.4-16.
The City’s Debt Policy 1-6515, adopted April 11, 201716, includes guidelines for use of debt and
other financing. In Section V, Guidelines for Use of Debt and Other Financing, annual debt
service is not to exceed 15 percent of annual operating expenses unless an exception is
approved by Council. Current debt service is approximately 7.4% of annual operating
expenditures. Future debt service is expected to exceed 15% in November 2028 and be 30%
when the first debt payment on the STU project is due. Council is requested to authorize an
exception to the debt policy for the Wastewater Treatment Enterprise Fund. Use of pay-as-you-
go financing for large, complex wastewater treatment projects is impractical and would put an
inequitable and untimely burden on ratepayers that may not ever benefit from the new capital
equipment. Use of debt financing to spread the costs across ratepayers for 30 years of
beneficial use is common for wastewater capital equipment in Palo Alto and in neighboring
agencies. An increase in the pay-as-you-go financing capital program (i.e., about $3.4 million
currently) would not be able to support the large capital projects such as the STU project, which
is triggering the need for an exception.
15 Debt Policy 1-65 April 11, 2017 https://www.cityofpaloalto.org/files/assets/public/public-works/water-quality-
control-plant/1-65-asd-debt-policy-2017-04-11_4.pdf
16 SR ID#7892 April 11, 2017 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/reports/city-manager-reports-cmrs/year-archive/2017/7892.pdf
8
Packet Pg. 169
City of Palo Alto Page 14
Stakeholder Engagement
This project is part of the RWQCP’s major capital improvement program funded by Palo Alto
and the five partner agencies who use the RWQCP for wastewater treatment. The five partner
agencies are regularly updated on both the need for and the progress of wastewater treatment
capital work. Updates are provided each year at an annual meeting and at other periodic
meetings established to inform partner agency staff about the major capital improvement
program. With respect to Palo Alto itself, the open meetings on the budget process serve as the
main vehicle for engaging the community on both new projects such as this and associated rate
impacts.
Environmental Review
The construction of the Secondary Treatment Upgrades Project is exempt under sections
15301, 15302, and 15303 of the California Environmental Quality Act (CEQA) Guidelines. The
City of Palo Alto filed a Notice of Exemption for the Secondary Treatment Project Upgrades
Project on April 2, 2021 (State Clearinghouse #2021040051).
Approval of Brown and Caldwell design amendment #2 and the three partners agreements are
not subject to CEQA review under section 15378(b)(4) of the CEQA Guidelines in that it is a
government fiscal activity which does not involve any commitment to any specific project which
may result in a potentially significant physical impact on the environment.
Attachments:
• Attachment8.a: Attachment A Amendment 8 to Contract C869 with Stanford
• Attachment8.b: Attachment B Addendum 1 to the 2nd Restatement Agreement
with EPASD
• Attachment8.c: Attachment C Addendum 11 to Basic Agreement with Mountain
View and Los Altos
• Attachment8.d: Attachment D Amendment 2 to Contract C19171565 with B&C
• Attachment8.e: Attachment E Amendment 2 to Contract C21179265C with Carollo
Engineers
• Attachment8.f: Attachment F Resolution (Amending Resolution 9945 for Revised
Funding)
• Attachment8.g: Attachment G Bid Summary
• Attachment8.h: Attachment H RWQCP Flow, Partner Treatment Share,
Neighboring Agency Comparison
8
Packet Pg. 170
ATTACHMENT A
AMENDMENT NO. EIGHT TO CONTRACT NO. C869
BETWEEN THE CITY OF PALO ALTO AND THE BOARD OF
TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY
This Amendment No. Eight (8) to the Contract is made and entered into on , by and between the CITY OF PALO ALTO, a chartered city and a chartered municipal corporation of the State of California (“City”) and the BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY, a body having corporate powers under the laws of the State of California (“Stanford”) (individually, a “Party”; collectively, the “Parties”).
R E C I T A L S:
A.The Parties have entered into that certain Contract Between Palo Alto andStanford, executed on November 30, 1956, as amended by the Addendum and Amendments described below (collectively, the “Contract”). The Contract has been amended seven times as follows: Addendum No. One (1) to the Contract Between the City of Palo Alto and Stanford, dated as of June 11, 1971; Amendment No. Two (2) to the Contract Between the City of Palo
Alto and Stanford, dated as of November 2, 1998; Amendment No. Three (3) to the Contract Between the City of Palo Alto and Stanford, dated as of March 16, 2009; Amendment No. Four (4) to the Contract Between the City of Palo Alto and Stanford, dated as of October 17, 2016;Amendment No. 5 to the Contract Between the City of Palo Alto and Stanford, dated as of August13, 2018; Amendment No. Six (6) to the Contract Between the City of Palo Alto and Stanford,
dated March 4, 2019; and Amendment No. Seven (7) to the Contract Between the City of PaloAlto and Stanford, dated May 17, 2021.
B.Palo Alto owns and operates the sewage system (the “System”) pursuant to the
Contract, and is responsible for making capital additions to the System. Under the Contract, prior
to commencement of construction of any capital additions or enlargements of the System, City and Stanford shall agree upon the terms of payment by Stanford of its proportionate cost.
C.The Parties now desire to increase the maximum amount of financing authorized
for the construction of the Primary Sedimentation Tank Project approved by Amendment No.
Seven (7) to reflect increases in Project Costs as defined therein, including design engineering, construction
management, program management, and construction costs.
D.The Parties further desire to agree to construct a capital addition to improve the
Joint System by upgrading the secondary treatment process (biological process) to a process that
removes harmful nitrogen by creating anoxic and aerated zones in existing aeration basins. This
Secondary Treatment Upgrades or “STU” Project will improve final water quality, ensure the Plant continues to meet effluent discharge permit limits, and allow for ultimate decommissioning of the aging biotrickling filters and other aging equipment. The Primary Sedimentation Tank Project and
the STU Project will become part of the Regional Water Quality Control Plant (the “Plant”), which
is owned and operated by City as part of the System.
8.a
Packet Pg. 171
DocuSign Envelope ID: F8E00CA5-B77A-4803-B668-7A8E5E533DE3
NOW, THEREFORE, in consideration of the terms, conditions and covenants set forth in this Amendment No. Eight (8), the Contract is hereby amended as follows:
Section 1. Paragraph 27 of the Contract is hereby added to read, as follows:
“27. MAXIMUM AMOUNT OF FINANCING FOR THE PRIMARY SEDIMENTATION TANK REHABILITATION PROJECT. The maximum amount of financing authorized for the Primary Sedimentation Tank Rehabilitation Project described in Paragraph 26 is increased from $17.0 million to $19.4 million.”
Section 2. Paragraph 28 of the Contract is hereby added to read, as follows:
“28. CONSTRUCTION AND IMPLEMENTATION OF THE SECONDARY TREATMENT UPGRADES PROJECT. The Parties hereby approve the construction of various improvements collectively referred to as the Secondary Treatment Upgrades or “STU” Project. The STU Project includes: new air blowers; air diffusers in aerobic
zones; anoxic zone pulsed air equipment; membrane aerated biofilm reactor cassettes;
slide and sluice gates and valves to isolate and throttle flows; instruments such as flowmeters and oxygen probes; power distribution equipment including standby diesel generator and power transfer equipment; and return activated sludge piping and pumping. Each Party shall pay its share of the STU Project Costs, in proportion to the
capacity it owns in the Joint System or portion thereof as shown in Exhibit “H” to
Amendment No. Two (2) to the Contract. “Project Costs”, as used in this Section 28, means all costs incurred in connection with the construction and implementation of the STU Project. Without limiting the generality of the foregoing, Project Costs shall include, but not be limited to: engineering and other consultants’ fees and costs,
including fees incurred pursuant to agreements with engineers, contractors and other
consulting, design and construction professionals; deposits, applicable permit fees; all costs to apply for and secure necessary permits from all required regional, state, and federal agencies; plan check fees, and inspection fees; construction costs; initial maintenance; attorneys’ fees and costs; insurance; interest from the date of payment on
any contracts.
The Parties authorize City to receive State Revolving Fund (“SRF”) loans from the State Water Resources Control Board (“SWRCB”) or pursue other project financing (i.e., utility revenue bonds) to fund the costs of the Project. The maximum amount of
financing for the project is one hundred ninety-three million dollars and no cents
($193,000,000). The SRF loans will have a thirty-year repayment term. The SRF loan shall be repaid by the Parties in the same proportionate shares as shown on Exhibit “H” to Amendment
No. Two (2) to the Contract.
If the SWRCB terminates its loan commitment unexpectedly following execution of the construction contract(s) for the Project or the Projects, the City shall notify Stanford promptly. Following notification of the termination of the SRF loan commitment, the
8.a
Packet Pg. 172
DocuSign Envelope ID: F8E00CA5-B77A-4803-B668-7A8E5E533DE3
y: ___________________________
ATTEST:
City Clerk
Parties shall meet in a timely manner to discuss alternative funding sources and strategies for completion of the Projects. If the Parties are unable to agree on new funding sources in a timely manner, then the City shall have the right to terminate the
Project or Projects immediately. The Parties shall remain responsible for Project Costs and loans incurred, whether before or after termination of the Project/Projects, including costs incurred in connection with the termination of the Project planning/design/construction contract(s),
in the same proportion to each organization’s share, as shown on Exhibit “H” to Amendment No. Two (2) to the Contract. Stanford shall pay its share of any Project Costs within thirty (30) business days of receipt of the annual billing statement sent by the City. If Stanford disputes the
correctness of an invoice, it shall pay the invoice in full and the dispute shall be resolved after payment in accordance with the Contract, and shall not offset against any payment due.
Section 3. Except as modified herein, the Contract shall remain unchanged, and is hereby ratified
and confirmed.
IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment as of the date first written above.
CITY OF PALO ALTO
By:
Mayor
APPROVED AS TO FORM:
City Attorney or Designee
APPROVED AS TO CONTENT:
City Manager or Designee
THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY
B
Name:
Title:
8.a
Packet Pg. 173
ATTACHMENT B
ADDENDUM NO. ONE TO THE SECOND RESTATED AND AMENDED AGREEMENT BETWEEN THE CITY OF PALO ALTO AND THE EAST PALO
SANITARY DISTRICT FOR WASTEWATER TREATMENT AND DISTRICT OUTFALL
This Addendum No. One to the Second Restated and Amended Agreement Between the City of Palo Alto
and the East Palo Sanitary District for Wastewater Treatment and District Outfall is made and entered
into on [DATE], by and among the CITY OF PALO ALTO (“Palo Alto”), a municipal corporation under the
laws of the State of California, and the East Palo Alto Sanitary District (“District”), a special district
formed under the Sanitary District Act of 1923, individually, a “Party”, collectively, the “Parties”.
RECITALS
A. On May 17, 2021, the Parties entered into an agreement entitled the Second Restated and
Amended Agreement Between the City of Palo Alto and the East Palo Sanitary District for
Wastewater Treatment and District Outfall.
B. That agreement establishes the Parties’ respective rights and obligations regarding treatment of
wastewater conveyed from the District’s sanitary sewer system at the City’s Regional Water
Quality Control Plant, payment of treatment costs, debt service for major capital improvement
projects, the District’s sanitary sewer outfall line, and pretreatment requirements.
C. The agreement establishes the Parties’ approval of funding and cost sharing for the
planning/design phases of Primary Sedimentation Tank and Secondary Treatment Upgrades
projects.
D. The Parties now wish to amend the agreement to approve their respective funding and cost-
sharing obligations for the construction phase of those projects.
NOW, THEREFORE, in consideration of the terms, conditions and covenants set forth in this
Addendum No. One, the Second Restated and Amended Agreement Between the City of Palo Alto and
the East Palo Sanitary District For Wastewater Treatment and District Outfall is hereby amended, as
follows:
Section 1. The title of the agreement is amended as follows: (additions in underline text) Second Restated and Amended Agreement Between the City of Palo Alto and the East Palo Alto Sanitary
District For Wastewater Treatment and District Outfall
Section 2. Section 6, paragraph a, subparagraph ii is amended to add new subsection A as
follows: (additions in underline text) 6. DESIGN OF PRIMARY SEDIMENTATION TANK REHABILITATION, SECONDARY TREATMENT UPGRADE, LABORATORY SERVICES BUILDING; DESIGN AND
CONSTRUCTION OF SLUDGE DEWATERING AND TRUCK LOADOUT FACILITY; AND
CONSTRUCTION OF OUTFALL AND PRIMARY SEDIMENTATION TANK REHABILITATION.
8.b
Packet Pg. 174
a. Implementation of the “Projects” i. City and District hereby approve the planning and design of the Primary Sedimentation Tanks,
Secondary Treatment Upgrades, Laboratory/Environmental Services Building, and design and
construction of a Sludge Dewatering and Truck Loadout Facility. Each Party shall pay its share of Project Costs for the Projects in proportion as it owns capacity in the Treatment Plant or portion thereof, as shown in Exhibit “H.” For purposes of this subparagraph, “Project Costs” means all costs incurred in connection with the planning, design, construction and
implementation of the Projects. Without limiting the generality of the foregoing, Project Costs
shall include, but not be limited to: design, engineering, and other consultants’ fees and costs, including fees incurred pursuant to agreements with engineers, contractors and other consulting, design and construction professionals; environmental analysis and approval costs, including cost of compliance with the California Environmental Quality Act; deposits, applicable permit fees;
all costs to apply for and secure necessary permits from all required regional, state, and federal
agencies, plan check fees, and inspection fees; construction costs; initial maintenance; attorneys’ fees and costs; insurance; interest from the date of payment on any contracts. ii. City and District hereby approve the construction of a new outfall and related improvements
to existing discharge infrastructure (the “Outfall Project”) and the rehabilitation of the primary
sedimentation tanks including electrical upgrades (the “Primary Sedimentation Tank Rehabilitation Project”). Each Party shall pay its share of Project Costs for the Projects in proportion as it owns capacity in the Treatment Plant or portion thereof, as shown in Exhibit “H.” For purposes of this subparagraph, “Project Costs” means all costs incurred in connection
with the construction and implementation of these two projects. Without limiting the generality
of the foregoing, Project Costs shall include, but not be limited to: engineering and other consultants’ fees and costs, including fees incurred pursuant to agreements with engineers, contractors and other consulting, design and construction professionals; deposits, applicable permit fees; all costs to apply for and secure necessary permits from all required regional, state,
and federal agencies; plan check fees, and inspection fees; construction costs; initial
maintenance; attorneys’ fees and costs; insurance; interest from the date of payment on any contracts. A. City and District hereby approve the construction of various improvements collectively
referred to as the Secondary Treatment Upgrades or “STU” Project. The STU Project
includes: new air blowers; air diffusers in aerobic zones; anoxic zone pulsed air equipment; membrane aerated biofilm reactor cassettes; slide and sluice gates and valves to isolate and throttle flows; instruments such as flowmeters and oxygen probes; power distribution equipment including standby diesel generator and power transfer equipment;
and return activated sludge piping and pumping. Each Party shall pay its share of Project
Costs for the Projects in proportion as it owns capacity in the Treatment Plant or portion thereof, as shown in Exhibit “H.” For purposes of this subparagraph, “Project Costs” means all costs incurred in connection with the construction and implementation of these two projects. Without limiting the generality of the foregoing, Project Costs shall include,
but not be limited to: engineering and other consultants’ fees and costs, including fees
incurred pursuant to agreements with engineers, contractors and other consulting, design and construction professionals; deposits, applicable permit fees; all costs to apply
8.b
Packet Pg. 175
for and secure necessary permits from all required regional, state, and federal agencies; plan check fees, and inspection fees; construction costs; initial maintenance; attorneys’
fees and costs; insurance; interest from the date of payment on any contracts.
iii. The projects described in subparagraphs (i) and (ii) immediately above are referred to individually as a “Project” and collectively as the “Projects”.
Section 2. Section 6, Paragraph b is amended to read as follows: (deletions in strikethrough text; additions in underline text) b. Financing for the Projects. The District authorizes the City to pursue and receive State Revolving Fund (“SRF”) loans from the State Water Resources Control Board (“SWRCB”) or
pursue other project financing (i.e. utility revenue bonds) to fund the costs of the Projects. The
maximum amount of the financing sought for each Project is:
• Planning/design of the primary sedimentation tanks, secondary treatment
upgrades, and a new Laboratory/Environmental Services Building - $6.75
million
• Design and construction of a sludge dewatering and truck load-out facility - $28 million
• Construction of Outfall Project - $12 million
• Construction of Primary Sedimentation Tank Rehabilitation - $17 19.4 million
• Construction of Secondary Treatment Upgrades - $193 million
Section 3. Except as modified herein, the Basic Agreement shall remain unchanged, and is hereby
ratified and confirmed.
[SIGNATURE PAGE FOLLOWS]
IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this
Addendum as of the date first written above.
8.b
Packet Pg. 176
ATTACHMENT C
ADDENDUM NO. ELEVEN TO THE BASIC AGREEMENT BETWEEN THE CITY OF PALO ALTO, THE CITY OF MOUNTAIN VIEW AND THE CITY OF LOS ALTOS FOR THE
ACQUISITION, CONSTRUCTION AND MAINTENANCE OF A JOINT SEWER SYSTEM
This Addendum No. Eleven (11) to the Basic Agreement for the Acquisition, Construction and Maintenance
of a Joint Sewer System is made and entered into on [DATE], by and among the CITY OF PALO ALTO
(“Palo Alto”), the CITY OF MOUNTAIN VIEW (“Mountain View”), and the CITY OF LOS ALTOS
(“Los Altos”) (individually, a “Party”, collectively, the “Parties”), all municipal corporations under the laws
of the State of California.
RECITALS
A. The Parties have entered into that certain Basic Agreement Between the City of Palo Alto, the City of
Mountain View and the City of Los Altos for the Acquisition, Construction, and Maintenance of a Joint
Sewer System, executed on October 10, 1968, as amended by the Addenda described below (collectively,
the “Basic Agreement”). The Basic Agreement has been amended ten times by addenda, as follows:
Addendum No. One (1) to Basic Agreement Between the Cities of Palo Alto, Mountain View, and Los
Altos for Acquisition, Construction and Maintenance of a Joint Sewer System, dated as of December 5,
1977; Addendum No. Two (2) to Basic Agreement Between the Cities of Palo Alto, Mountain View, and
Los Altos for Acquisition, Construction and Maintenance of a Joint Sewer System dated as of January 14,
1980; Addendum No. Three (3) to an Agreement By and Between the Cities of Palo Alto, Mountain View,
and Los Altos for Acquisition, Construction and Maintenance of a Joint Sewer System, dated as of April 9,
1985; Addendum No. Four (4) to the Agreement By and Between the Cities of Mountain View, Los Altos,
and Palo Alto as further amended and dated May 30, 1991; Addendum No. Five (5) to Basic Agreement
Between the Cities of Palo Alto, Mountain View, and Los Altos for Acquisition, Construction and
Maintenance of a Joint Sewer System, dated as of July 31, 1992; Addendum No. Six (6) to Basic Agreement
Between the City of Palo Alto, the City of Mountain View, and the City of Los Altos for Acquisition,
Construction and Maintenance of a Joint Sewer System dated as of March 16, 1998; and Addendum No.
Seven (7) to Basic Agreement Between the City of Palo Alto, the City of Mountain View, and the City of
Los Altos for Acquisition, Construction and Maintenance of a Joint Sewer System dated as of April 15,
2009; Addendum No. Eight (8) to the Basic Agreement between the City of Palo Alto, the City of Mountain
View and the City of Los Altos for the Acquisition, Construction, and Maintenance of a Joint Sewer System
dated as of October 17, 2016; Addendum No. Nine (9) to the Basic Agreement between the City of Palo
Alto, the City of Mountain View and the City of Los Altos for the Acquisition, Construction and
Maintenance of a Joint Sewer System dated March 4, 2019; and Addendum No. Ten (10) to the Basic
Agreement between the City of Palo Alto, the City of Mountain View, and the City of Los Altos for the
Acquisition, Construction and Maintenance of a Joint Sewer System dated May 17, 2021 (collectively, the
“Addenda”).
B. Palo Alto owns and operates the sanitary sewerage treatment and disposal works and system (the “Joint
System”) pursuant to the Basic Agreement, and is responsible for making capital additions to the Joint
System. Under the Basic Agreement, any major capital additions for the replacement of obsolete or worn-
out units require an agreement by the Parties amending the Basic Agreement.
C. The Parties now desire to increase the maximum amount of financing authorized for the construction of
the Primary Sedimentation Tank Project approved by Addendum No. Ten (10) to reflect increases in Project
Costs as defined therein, including design engineering, construction management, program management,
and construction costs.
8.c
Packet Pg. 177
D. The Parties further desire to agree to construct a project to improve the Joint System by upgrading the
secondary treatment process (biological process) to a process that removes harmful nitrogen by creating
anoxic and aerated zones in existing aeration basins. The project will improve final water quality, ensure
the Plant continues to meet effluent discharge permit limits, and allow for ultimate decommissioning of the
aging biotrickling filters and other aging equipment. The Parties also agree to provide for the sharing of
costs associated with this project. The project will become part of the Regional Water Quality Control Plant
(the “Plant”), which is owned and operated by Palo Alto as part of the Joint System.
AGREEMENT
NOW, THEREFORE, in consideration of the terms, conditions and covenants set forth in this
Addendum No. Eleven (11), the Basic Agreement is hereby amended, as follows:
Section 1. Paragraph 41 is hereby added to the Basic Agreement to read, as follows:
“41. MAXIMUM AMOUNT OF FINANCING FOR THE PRIMARY SEDIMENTATION TANK
REHABILITATION PROJECT. The maximum amount of financing authorized for the Primary
Sedimentation Tank Rehabilitation Project described in Paragraph 40 is increased from $17.0
million to $19.4 million.”
Section 2. Paragraph 42 is hereby added to the Basic Agreement to read, as follows:
“42. CONSTRUCTION AND IMPLEMENTATION OF THE SECONDARY
TREATMENT UPGRADES PROJECT. Palo Alto, Mountain View, and Los Altos
hereby approve the construction of various improvements collectively referred to as the
Secondary Treatment Upgrades or “STU” Project. The STU Project includes: new air blowers; air
diffusers in aerobic zones; anoxic zone pulsed air equipment; membrane aerated biofilm reactor
cassettes; slide and sluice gates and valves to isolate and throttle flows; instruments such as
flowmeters and oxygen probes; power distribution equipment including standby diesel generator
and power transfer equipment; and return activated sludge piping and pumping. Each Party shall
pay its share of the STU Project Costs, in proportion to the capacity it owns in the Joint System
or portion thereof as shown in Exhibit “H” to Addendum No. Six (6) to the Basic Agreement.
“Project Costs”, as used in this Section 42, means all costs incurred in connection with the
construction and implementation of these two Projects. Without limiting the generality of the
foregoing, Project Costs shall include, but not be limited to: engineering and other
consultants’ fees and costs, including fees incurred pursuant to agreements with engineers,
contractors and other consulting, design and construction professionals; deposits, applicable
permit fees; all costs to apply for and secure necessary permits from all required regional,
state, and federal agencies; plan check fees, and inspection fees; construction costs; initial
maintenance; attorneys’ fees and costs; insurance; interest from the date of payment on any
contracts.
The Parties authorize Palo Alto to receive State Revolving Fund (“SRF”) loans from the State
Water Resources Control Board (“SWRCB”) or pursue other project financing (i.e. utility
8.c
Packet Pg. 178
revenue bonds) to fund the costs of the Project. The maximum amount of financing for the
project is one hundred ninety-three million dollars and no cents ($193,000,000).
The SRF loan will have a thirty-year repayment term. The repayments of the SRF loan shall be
treated in the same manner as debt services under the Basic Agreement and its Addenda, and
repaid by the Parties in the same proportionate shares as shown on Exhibit “H” to Addendum No.
Six (6) to the Basic Agreement. The Parties further agree that, if necessary, each Party shall secure
the funding necessary for repayment of the SRF loan, operations, and/or maintenance of the
Projects, following any appropriate process executed under California Constitution article
XIII C and D (Proposition 218).
If the SWRCB terminates its loan commitment unexpectedly following execution of the planning
and/or construction contract(s) for the Project, Palo Alto shall notify the Parties promptly.
Following notification of the termination of the SRF loan commitment, the Parties shall meet in
a timely manner to discuss alternative funding sources and strategies for completion of the
Project. If the Parties are unable to agree on new funding sources in a timely manner, then Palo
Alto shall have the right to terminate the Project.
The Parties shall remain responsible for Project Costs and loans incurred, whether before or
after termination of the Project/Projects, including costs incurred in connection with the
termination of Project planning/design/construction contract(s), in the same proportion to each
organization’s share of Plant capacity, as stated in Exhibit “H” to Addendum No. Six (6) of the
Basic Agreement. Total Project Costs shall not exceed the authorized maximum financing
amount approved by Parties without prior approval of each Party’s governing body. Unless
earlier terminated, the obligations and responsibilities of the Parties shall commence with the
execution of Addendum No. Eleven (11) to the Basic Agreement and be in force for the term of
the SRF loan or other financing.
Mountain View and Los Altos shall pay their respective shares of any Project Costs within thirty
(30) business days of receipt of the quarterly billing statement sent by Palo Alto. Palo Alto shall
not send more than one invoice in any thirty-day period. If a Party disputes the correctness of an
invoice, it shall pay the invoice in full and the dispute shall be resolved after payment in
accordance with Section 19 of the Basic Agreement, and shall not offset against any payment
due.
Section 3. Except as modified herein, the Basic Agreement shall remain unchanged, and is hereby
ratified and confirmed.
[SIGNATURE PAGE FOLLOWS]
IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this
Addendum as of the date first written above.
8.c
Packet Pg. 179
8.c
Packet Pg. 180
Vers.: Aug. 5, 2019
Page 1 of 18
AMENDMENT NO.2 TO CONTRACT NO. C19171565
BETWEEN THE CITY OF PALO ALTO AND
BROWN AND CALDWELL
This Amendment No. 2 (this “Amendment”) to Contract No. C19171565 (the “Contract” as
defined below) is entered into as of December 5, 2022, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and BROWN AND CALDWELL, a California
corporation, located at 201 N. Civic Drive, Suite 115, Walnut Creek, CA 94596 (“CONSULTANT”). CITY
and CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract was entered into by and between the Parties hereto for the provision of
design and engineering services to upgrade its existing two-stage secondary treatment
process at the Regional Water Quality Control Plant (RWQCP) (the “Project”), as detailed
therein.
B. The Parties entered into Amendment No.1 to extend the Contract term, specify
Additional Services to be performed, and increase the Compensation, as detailed
therein.
C. The Parties now wish to amend the Contract to extend the term through March 31,
2028, update the Hourly Rate Schedule Exhibit C-1, and increase the total not-to-exceed
compensation by One-Million, Four-Hundred-Eighty-Four-Thousand, Six-Hundred-
Eighty-Nine Dollars ($1,484,689) from Four-Million Four-Hundred Twenty-Four-
Thousand One-Hundred-Two Dollars ($4,424,102) to Five-Million Nine-Hundred-Eight-
Thousand, Seven-Hundred-Ninety-One Dollars ($5,908,791), 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. C19171565 between
CONSULTANT and CITY, dated September 10, 2018, as amended by:
Amendment No. 1, dated October 19, 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:
“The term of this Agreement shall be from the date of its full execution through March 31, 2028, unless
terminated earlier pursuant to Section 19 (Termination) of this Agreement.”
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 181
Vers.: Aug. 5, 2019
Page 2 of 18
SECTION 3. Section 4. “NOT TO EXCEED COMPENSATION” of the Contract is amended and
replaced in its entirety to read as follows:
“The compensation to be paid to CONSULTANT for performance of the Services described in
Exhibit “A” (“Basic Services”), and reimbursable expenses, shall not exceed Five Million Three-Hundred
Seventy-One-Thousand Six Hundred Twenty-Eight Dollars ($5,371,628). 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 Five Million Nine Hundred Eight-Thousand Seven Hundred
Ninety-One Dollars ($5,908,791). 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 are hereby amended or added, as indicated
below, to read as set forth in the attachment(s) to this Amendment, which are hereby incorporated in
full into this Amendment and into the Contract by this reference:
a. Exhibit “A” entitled “SCOPE OF SERVICES, AMENDMENT NO. 2”, ADDED.
b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2”,
AMENDED, REPLACES PREVIOUS.
c. Exhibit “C” entitled “COMPENSATION, AMENDMENT NO. 2”, AMENDED, REPLACES
PREVIOUS.
d. Exhibit “C-1” entitled “HOURLY RATE SCHEDULE, AMENDMENT NO. 2”, 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.)
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 182
Vers.: Aug. 5, 2019
Page 3 of 18
IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives
executed this Amendment on the date first above written.
CITY OF PALO ALTO
_________________________
City Manager or Designee
APPROVED AS TO FORM:
___________________________
City Attorney or Designee
BROWN AND CALDWELL
Officer 1
By:_____________________________
Name: __________________________
Title: ___________________________
Officer 2
By:______________________________
Name: ___________________________
Title: ____________________________
Attachments:
Exhibit “A” entitled “SCOPE OF SERVICES, AMENDMENT NO. 2” (ADDED)
Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2” (AMENDED, REPLACES
PREVIOUS)
Exhibit “C” entitled “COMPENSATION AMENDMENT NO. 2” (AMENDED, REPLACES PREVIOUS)
Exhibit “C-1” entitled “HOURLY RATE SCHEDULE, AMENDMENT NO. 2” (AMENDED, REPLACES
PREVIOUS)
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
Vice President
Angela MacKinnon, Vice President
Lori Jones, Vice President
Vice President
8.d
Packet Pg. 183
Vers.: Aug. 5, 2019
Page 4 of 18
EXHIBIT “A”
SCOPE OF SERVICES, AMENDMENT NO. 2
(ADDED)
Amendment No. 2 is needed to add funds in the amount of $1,484,689 to the project to address the
delayed construction start date and construction duration and to account for:
1. Additional design services to aid in construction bidding and during construction:
a. Further development of an indicative construction schedule.
b. Further development of construction sequencing and constraints specifications.
c. Preliminary design of temporary facilities and systems required during construction,
including development of preliminary design drawings.
d. As-needed additional engineering services for unforeseen site conditions and coordination
with other ongoing major capital projects at the RWQCP
e. Updated opinion of probable construction cost (OPCC) and projection of cash flow during
construction for budgeting purposes.
f. Participation in a constructability review to be conducted by the City’s selected
construction manager.
g. Additional meetings and workshops.
2. Additional bid period services associated with the items listed above and the expanded scope and
complexity of the Project.
3. Additional engineering services during construction (ESDC) associated with a larger volume of
construction documents and resubmittals
4. the items listed above and the expanded scope and complexity of the Project.
5. Additional commissioning and startup services to account for staged commissioning and startup
of the Project.
6. Additional project management services associated with the expanded scope and duration of the
Project.
7. Updated costs, accounting for increases in hourly billing rates, for providing engineering services
during construction.
BACKGROUND
The scope, size, and complexity of the Project have increased significantly since its inception. In
addition, the Project’s schedule has been extended from a projected completion date in mid-2022
(based on the original baseline schedule) to mid-2026 (based on the September 2021 schedule update).
Likewise, the estimated construction cost of the project has increased from $31 million (based on
February 2018 planning report prepared by Carollo Engineers) to $118 million (based on cost estimate
developed for 90% complete design documents prepared by BC).
Due to the complexity of construction sequencing and constraints associated with the Project, the
originally planned approach using a single specification section to describe construction requirements
in narrative format is not sufficient to communicate requirements to the bidders and selected
contractor. Therefore, more detailed construction requirements, including a detailed indicative
construction schedule, additional and expanded specifications, and additional drawings, are required
to adequately illustrate the requirements. The intent of this additional effort is to increase certainty
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 184
Vers.: Aug. 5, 2019
Page 5 of 18
that bids are based on a common understanding of construction requirements and to avoid adverse
impacts during construction, such as disruptions to operation and maintenance of the Plant.
In addition, the City has requested additional services as described herein that were not included in
the original contract or contract amendments issued previously by the City.
TASKS
BC will complete the tasks described below.
Task 230.210 – Additional Design Services
Further Development of Indicative Construction Schedule: BC will refine the construction schedule
developed previously based on further development of construction requirements as described in tasks
below. The schedule will remain in Microsoft Project format and will become an attachment to Section
01 12 16 (Work Sequence and Constraints) of the specifications.
The schedule will be Level 3 as defined by AACE International and will illustrate an indicative approach
for building the project based on the specified construction sequence and constraints. The intent is to
facilitate the bidders’ and selected contractor’s understanding of the project, but the contractor will
be responsible for developing a separate construction schedule based on the specified requirements.
Deliverables for this task are as follows:
Draft construction schedule in pdf and Microsoft Project formats
Final construction schedule in pdf and Microsoft Project formats
Further Development of Construction Sequencing and Constraints Specifications: BC will further
develop specifications for the following:
Construction sequencing and constraints
Temporary facilities and systems, including bypass pumping systems, an aeration blower system, a
standby generator system, and temporary power supply systems serving these items
BC will include requirements in the specifications for the Contractor to obtain any necessary permits
for temporary standby generators required to maintain operations and reliability of the Plant during
construction of the Project. BC will not prepare any applications for such permits.
Deliverables for this task are as follows:
Draft 90% complete specifications in pdf format
Final specifications in pdf format (included with final bid document package for entire project)
Preliminary Design of Temporary Facilities and Systems: BC will develop preliminary design drawings
for temporary facilities and systems required during construction. The designs will be limited to items
listed below and will not include items such as construction trailers, laydown areas, parking, and
temporary utilities. The intent of the preliminary designs is to facilitate the bidders’ and selected
contractor’s understanding of the project, but the contractor will be responsible for developing final
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 185
Vers.: Aug. 5, 2019
Page 6 of 18
designs of all temporary facilities and systems. Items included in this task are as follows:
Development of drawings depicting preliminary configurations and minimum requirements for
temporary facilities and systems
Temporary facilities and systems will include the following:
Temporary bypass pumping systems, including general locations of temporary bulkheads and
coffer dams:
ILS And FFR Temporary Bypass Pumping Plan
FFR Temporary Drainage Pumping Plan
Aeration Tank 1 Temporary Bypass Pumping Plan
Aeration Tank 2 Temporary Bypass Pumping Plan
Aeration Tank 3 Temporary Bypass Pumping Plan
Aeration Tank 4 Temporary Bypass Pumping Plan
Temporary aeration blowers:
Three temporary aeration blowers installed in parking lot adjacent to existing Blower Room
and associated power supply, controls, valves, piping, and appurtenances
Temporary standby generator
One 1,100 kW portable standby generator to replace an existing generator during construction
of a new generator system
Temporary power for Load Center 11
Temporary connection to SW1911.5x (located at the northeast corner of the primary
sedimentation tanks in the yard area east of the Solids Building per direction from the City)
Drawings to be developed for this task are listed in Table 1.
Table 1. List of Drawings for Temporary Facilities and Systems
Drawing Description
GENERAL CONSTRUCTION
000-GC-0000 COVER SHEET, VICINITY MAP, AND LOCATION MAP
000-GC-0001 INDEX OF DRAWINGS
000-GC-0002 SYMBOLS AND LEGENDS
000-GC-0003 ABBREVIATIONS
000-GC-1010 PHASE 1 KEY PLAN
000-GC-1020 PHASE 2 KEY PLAN
000-GC-1030 PHASE 3 KEY PLAN
000-GC-1040 PHASE 4 KEY PLAN
000-GC-1050 PHASE 5 KEY PLAN
000-GC-1060 PHASE 6 KEY PLAN
MECHANICAL CONSTRUCTION
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 186
Vers.: Aug. 5, 2019
Page 7 of 18
Table 1. List of Drawings for Temporary Facilities and Systems
Drawing Description
000-DC-0001 SYMBOLS AND LEGENDS
110-DC-1110 ILS AND FFR TEMPORARY BYPASS PUMPING PLAN
110-DC-4110 ILS AND FFR TEMPORARY BYPASS PUMPING PLANS, SECTIONS AND DETAILS
120-DC-1110 FFR TEMPORARY DRAINAGE PUMPING PLAN
120-DC-4110 FFR TEMPORARY DRAINAGE PUMPING PLANS AND SECTIONS
132-DC-1110 AERATION TANK 1 TEMPORARY BYPASS PUMPING PLAN
132-DC-1210 AERATION TANK 2 TEMPORARY BYPASS PUMPING PLAN
132-DC-1310 AERATION TANK 3 TEMPORARY BYPASS PUMPING PLAN
132-DC-1410 AERATION TANK 4 TEMPORARY BYPASS PUMPING PLAN
132-DC-4110 AERATION TANK TEMPORARY BYPASS PUMPING SECTIONS
137-DC-1110 MA COMPRESSORS INSTALLATION IN TEMPORARY LOCATION
ELECTRICAL
000-ED-0001 LEGENDS AND SYMBOLS
000-ED-0002 LEGENDS AND SYMBOLS
005-EC-6010 PHASE 1 ONE-LINE DIAGRAM
005-EC-6020 PHASE 2 ONE-LINE DIAGRAM
005-EC-6030 PHASE 3 ONE-LINE DIAGRAM
005-EC-6040 PHASE 4 ONE-LINE DIAGRAM
005-EC-6050 PHASE 5 ONE-LINE DIAGRAM
005-EC-6060 PHASE 6 ONE-LINE DIAGRAM
005-EC-6010 PHASE 1 ONE-LINE DIAGRAM
005-EC-6020 PHASE 2 ONE-LINE DIAGRAM
P&IDS
000-NC-0001 SYMBOLS AND LEGENDS 1
000-NC-0002 SYMBOLS AND LEGENDS 2
000-NC-0003 SYMBOLS AND LEGENDS 3
000-NC-0004 SYMBOLS AND LEGENDS 4
110-NC-6110 TEMPORARY PE BYPASS PUMPING
120-NC-6110 TEMPORARY FFR BYPASS PUMPING
132-NC-6110 TEMPORARY AERATION TANK 1 ML BYPASS PUMPING
132-NC-6120 TEMPORARY AERATION TANK 2 INFLUENT BYPASS PUMPING
132-NC-6130 TEMPORARY AERATION TANK 3 ML BYPASS PUMPING
132-NC-6140 TEMPORARY AERATION TANK 4 INFLUENT BYPASS PUMPING
133-NC-6110 TEMPORARY BLOWER SYSTEM
133-NC-6210 TEMPORARY AERATION BLOWERS
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 187
Vers.: Aug. 5, 2019
Page 8 of 18
Assumptions for this task are as follows:
Existing structures are suitable to loads associated with temporary facilities and systems without
modifications.
Temporary systems will be powered from the Plant’s power distribution network.
Sources and connection points to supply power to temporary systems are sufficient without
modifications.
Deliverables for this task are as follows:
Draft 100% complete drawings in pdf format
Final drawings in pdf format (included with final bid document package for entire project)
Further Coordination with Interfacing Projects: BC will further coordinate construction requirements
for the Project with projects entailing upgrades and rehabilitation of the 12 kV power distribution
system and primary sedimentation tanks based on information provided by the City. Coordination will
include identification of interface and overlap points between the projects. BC will include identified
requirements in the specifications and indicative construction schedule. Coordination will include
temporary and permanent interfaces with other projects required to construction and commission the
Project.
Deliverables for this task are as follows:
Included in other tasks.
Updated OPCC and Cash Flow Projection: BC will update the opinion of probable construction cost
(OPCC) based on the specifications and drawings described above. The OPCC will also consider
increased cost escalation experienced in 2021 and estimates of cost escalation in future years.
The OPCC for these items will be included in the final OPCC for the entire Project. The OPCC will be
Class 1 as defined by AACE International.
In addition, BC will cost load the indicative construction schedule (see task above regarding schedule
development) based on the updated OPCC to generate a projection of cashflow during the construction
period.
Deliverables for this task are as follows:
Updated OPCC (to be provided in conjunction with 100% design submittal for entire Project)
Cash flow projection, including cost loaded Microsoft Project schedule and cash flow chart
Participation in Constructability Review: BC will participate in a constructability review to be conducted
by the City’s construction manager based on the 100 percent complete drawings, specifications, and
indicative construction schedule.
The extent of any design changes that may arise from the review is unknown. Therefore, an allowance
of 250 hours is included for responding to questions, comments, and proposed changes to the
document. Any changes will be made in the final bid documents.
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 188
Vers.: Aug. 5, 2019
Page 9 of 18
Deliverables for this task are as follows:
Final bid documents
Additional Meetings and Workshops: BC will conduct or participate in additional meetings and
workshops required to complete the foregoing tasks during the design period. Since the number,
duration, and topics of such meetings is not known, an allowance of 80 hours is included for effort
associated with the additional meetings and workshops. This allowance includes effort to prepare for
workshops (e.g., preparation of agendas and presentation materials), attendance, and preparation of
minutes.
Deliverables for this task are as follows:
Meeting and workshop agendas
Meeting and workshop presentation material
Meeting and workshop minutes
Task 300.306 – Additional Bid Period Services
BC will provide additional bid period services associated with the additional design services listed
above. It is expected that additional questions from bidders and addenda will be required based on the
expanded scope and complexity of the Project. In addition, the bid period will be extended from two
months to three months as requested by the City due to the Project’s scope and complexity. Since the
actual added effort is uncertain, an allowance of 100 hours is included in the fee estimate to account
for the additional bid period services.
Deliverables:
Additional responses to bid period questions, up to the budget limit
Additional addenda, up to the budget limit
Task 400.409 – Additional Engineering Services During Construction
BC will provide additional ESDC associated with the work described herein, including the following:
It is assumed that up to 50 additional submittals or resubmittals will be reviewed at an average
duration of 4 hours per submittal.
BC will prepare written responses to requests for information (RFIs) submitted by the contractor.
It is assumed that up to 100 additional RFIs will be reviewed at an average duration of 3 hours per
RFI.
Up to two BC engineers will conduct up to 20 additional site visits to meet with the contractor and
observe the work.
BC will provide additional commissioning support services. For budgeting purposes, 600 additional
hours of effort are included in the budget to accounted for staged commissioning and startup of
the Project.
BC will provide additional technical support regarding change orders. The construction manager
will retain the primary responsibility for managing, administering, and negotiating change orders.
For budgeting purposes, 100 additional hours of effort are included in the budget.
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 189
Vers.: Aug. 5, 2019
Page 10 of 18
BC will provide additional services associated with preparation of record drawings based on the
expanded scope of the project. For budgeting purposes, 100 hours of additional support are
included.
BC’s subconsultant, Cal Engineering & Geology, will provide on-site field observation services
during construction, including observation of pile foundation construction. The fee estimate
assumes 22 separate site visits with duration of 2 to 8 hours per visit. The services also include
preparation of a technical report regarding the work.
Deliverables for this task are as follows:
Additional submittal reviews, up to the budget limit
Additional RFI responses, up to the budget limit
Additional technical information, drawings, and specifications to support change orders
Additional record drawings
Task 500.504 – Additional Project Management
BC will provide additional project management associated with the expanded scope and duration of
the work, including maintaining the Project schedule, invoicing, reporting, management of staff, and
project controls. For budgeting purposes, 400 additional hours are included.
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 190
Vers.: Aug. 5, 2019
Page 11 of 18
EXHIBIT “B”
SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2
(AMENDED-REPLACED PREVIOUS)
CONSULTANT shall perform the Services so as to complete each milestone within the number of 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.
Milestones Completion in Weeks Following issuance of NTP.
1. Task 1 - Design Re-Start Meeting 02
2. Task 1 - Submit Draft PDR 24
3. Task 1 - Submit 30% Design (Final PDR) 28
4. Task 2 - Submit 60% Design 48
5. Task 2 - Submit 90% Design 60
6. Task 2 - Submit 100% Design (Bid Documents) 194
7. Task 3 - Services During Bidding 207
8. Task 4 - Services During Construction 494
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 191
Vers.: Aug. 5, 2019
Page 12 of 18
EXHIBIT “C”
COMPENSATION, AMENDMENT NO. 2
(AMENDED-REPLACED PREVIOUS)
CITY agrees to compensate CONSULTANT for professional services performed in accordance with
the terms and conditions of this Agreement, and as set forth in the 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.
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 - (Preliminary Design) $1,259,062
Task 2 - (Final Design) $1,965,570
Task 3 - (Bid Period Services) $136,097
Task 4 - (Eng. Services during Construction) $1,483,395
Task 5 - (Project Management) $396,303
Task 6 - (Wastewater Characterization) $53,211
Sub-Total Basic Services: $5,293,638
Reimbursable Expenses: $77,990
Total Basic Services & Reimbursable Expenses: $5,371,628
Additional Services (Not to Exceed): $537,163
Maximum Total Compensation: $5,908,791
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 192
Vers.: Aug. 5, 2019
Page 13 of 18
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 accompanied by appropriate backup information.
Any expense anticipated to be more than $1,000.00 shall be approved in advance by the CITY’s
project manager.
ADDITIONAL SERVICES
CONSULTANT shall provide additional services only by advanced, written authorization from the
CITY. CONSULTANT, at 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
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 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
Work required because the following conditions are not satisfied or are exceeded shall be
considered as additional services:
Should an Environmental Impact Report (EIR) be required under CEQA, the additional services
fund may be considered for use on this task, depending upon the estimated cost to perform this
service.
SCHEDULE OF RATES
Beginning on the effective date of the signing of this Contract Amendment, the following hourly rates
shall continue to apply to the Tasks outlined in the scope of services in Exhibit “A.”
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 193
Vers.: Aug. 5, 2019
Page 14 of 18
EXHIBIT “C-1”
HOURLY RATE SCHEDULE, AMENDMENT NO. 2
(AMENDED, REPLACES PREVIOUS)
Brown and Caldwell Hourly Rate (3% Escalation Each Year):
Billing Classification: 2022 2023 2024 2025 2026 2027
Office/Support Services I $82 $87 $92 $98 $104 $110
Word Processor I $82 $87 $92 $98 $104 $110
Drafter Trainee $86 $91 $96 $102 $108 $114
Field Service Technician I $86 $91 $96 $102 $108 $114
Office/Support Services II $86 $91 $96 $102 $108 $114
Assistant Drafter $100 $106 $113 $119 $126 $134
Field Service Technician II $100 $106 $113 $119 $126 $134
Word Processor II $100 $106 $113 $119 $126 $134
Office/Support Services III $100 $106 $113 $119 $126 $134
Accountant I $104 $110 $116 $123 $131 $139
Word Processor III $104 $110 $116 $123 $131 $139
Office/Support Services IV $104 $110 $116 $123 $131 $139
Drafter $104 $110 $116 $123 $131 $139
Engineering Aide $104 $110 $116 $123 $131 $139
Inspection Aide $104 $110 $116 $123 $131 $139
Field Service Technician III $111 $118 $125 $133 $141 $149
Accountant II $111 $118 $125 $133 $141 $149
Word Processor IV $111 $118 $125 $133 $141 $149
Geologist/Hydrogeologist I $111 $118 $125 $133 $141 $149
Scientist I $111 $118 $125 $133 $141 $149
Senior Field Service Technician $111 $118 $125 $133 $141 $149
Engineer I $111 $118 $125 $133 $141 $149
Senior Drafter $111 $118 $125 $133 $141 $149
Senior Illustrator $111 $118 $125 $133 $141 $149
Inspector I $111 $118 $125 $133 $141 $149
Accountant III $136 $144 $153 $162 $172 $182
Area Business Operations Mgr. $136 $144 $153 $162 $172 $182
Technical Writer $136 $144 $153 $162 $172 $182
Word Processing Supervisor $136 $144 $153 $162 $172 $182
Geologist/Hydrogeologist II $136 $144 $153 $162 $172 $182
Scientist II $136 $144 $153 $162 $172 $182
Engineer II $136 $144 $153 $162 $172 $182
Inspector II $136 $144 $153 $162 $172 $182
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 194
Vers.: Aug. 5, 2019
Page 15 of 18
Brown and Caldwell Hourly Rate (3% Escalation Each Year):
Billing Classification: 2022 2023 2024 2025 2026 2027
Lead Drafter $136 $144 $153 $162 $172 $182
Lead Illustrator $136 $144 $153 $162 $172 $182
Accountant IV $159 $168 $178 $189 $200 $212
Administrative Manager $159 $168 $178 $189 $200 $212
Geologist/Hydrogeologist III $159 $168 $178 $189 $200 $212
Scientist III $159 $168 $178 $189 $200 $212
Engineer III $159 $168 $178 $189 $200 $212
Inspector III $159 $168 $178 $189 $200 $212
Senior Designer $159 $168 $178 $189 $200 $212
Supervising Drafter $159 $168 $178 $189 $200 $212
Supervising Illustrator $159 $168 $178 $189 $200 $212
Senior Technical Writer $182 $193 $205 $217 $230 $244
Senior Geologist/Hydrogeologist $182 $193 $205 $217 $230 $244
Senior Scientist $182 $193 $205 $217 $230 $244
Senior Engineer $182 $193 $205 $217 $230 $244
Principal Designer $182 $193 $205 $217 $230 $244
Senior Construction Engineer $182 $193 $205 $217 $230 $244
Senior Engineer $182 $193 $205 $217 $230 $244
Principal Engineer $225 $239 $253 $268 $284 $301
Principal Construction Engineer $225 $239 $253 $268 $284 $301
Supervising Designer $225 $239 $253 $268 $284 $301
Assistant Controller $259 $274 $291 $308 $327 $346
Supervising Scientist $259 $274 $291 $308 $327 $346
Supervising Geologist/Hydrogeologist $259 $274 $291 $308 $327 $346
Supervising Engineer $259 $274 $291 $308 $327 $346
Supervising Const. Engineer $259 $274 $291 $308 $327 $346
Area Business Ops Mgr. IV $305 $323 $343 $363 $385 $408
Managing Geologist/Hydrogeologist $305 $323 $343 $363 $385 $408
Managing Scientist $305 $323 $343 $363 $385 $408
Managing Engineer $305 $323 $343 $363 $385 $408
Corp Marketing Comm. Mgr. $328 $347 $368 $390 $413 $438
Managing Geologist/Hydrogeologist $328 $347 $368 $390 $413 $438
Chief Scientist $328 $347 $368 $390 $413 $438
Chief Geologist/Hydrogeologist $328 $347 $368 $390 $413 $438
Chief Engineer $328 $347 $368 $390 $413 $438
Executive Engineer $328 $347 $368 $390 $413 $438
Vice President $328 $347 $368 $390 $413 $438
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 195
Vers.: Aug. 5, 2019
Page 16 of 18
Notes:
1. Above rates are effective from January 1, 2002 through December 31, 2027. Rates are
escalated at 3% per year from 2022.
2. Rates include salary, overhead and profit.
3. Sub-consultants’ work will be billed to City at cost plus 10% markups. For direct costs where a
10% increase has already been added by the subconsultant(s), Brown and Caldwell is not
authorized to bill the City an additional 10% markups on top of the 10% markups already added
by the subconsultant(s).
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 196
Vers.: Aug. 5, 2019
Page 17 of 18
SUB-CONSULTANT RATES
Sub-consultant Firm Name: CAL Engineering & Geology
Scope of Work: To provide geotechnical study, inspection and laboratory test services as ordered and
directed by Kennedy/Jenks:
Rates:
Personnel 2022 2023 2024 2025 Rates/Units
Senior Principal
Engineer/Geologist $290 $300 $310 $320 per hour
Principal Engineer/Geologist $250 $260 $270 $280 per hour
Associate Engineer/Geologist $225 $230 $235 $240 per hour
Senior Engineer/Geologist $210 $215 $220 $225 per hour
Construction Manager $205 $210 $215 $220 per hour
Project Engineer/Geologist $175 $180 $185 $190 per hour
Staff Engineer/Geologist $155 $160 $165 $170 per hour
Technician* (Straight time rate) $140 $145 $150 $155 per hour
Special Inspector* (Straight
time rate) $140 $145 $150 $155 per hour
Senior GIS/CADD Specialist $150 $155 $160 $165 per hour
GIS/CADD Specialist $135 $140 $145 $150 per hour
Computational Geoscientist $175 $180 $185 $190 per hour
Project Assistant $105 $110 $115 $120 per hour
Administration/Clerical $95 $100 $105 $110 per hour
Deposition/Court Testimony
(minimum 4 hours) $420 $435 $450 $465 per hour
* Rates for technician and inspector work that are subject to State of California prevailing wage laws are for straight time,
and reflect wage and benefits scales published by the California Department of Industrial Relations (DIR) for the greater
San Francisco Bay Area as of June 1, 2021. Standard overtime and holiday overtime rates are 15% and 30% more than
the straight time rates. All services subject to prevailing wage laws will be subject to change on a prorated basis to
reflect applicable revisions to the DIR’s published wage and benefit scales.
Notes:
1. Professional Services - These are “all-up” rates, and include direct salary cost, overhead, general
and administrative costs not separately accounted for, and profit. They shall remain in effect
through December 31, 2025. Unless otherwise agreed upon, ongoing work that continues
beyond December 31, 2025 will include an anticipated annual increase of 3 percent or the CPI,
whichever is greater. Rates for services subject to state prevailing wage laws will change as
noted in response to revisions to the published wage and benefit scales.
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 197
Vers.: Aug. 5, 2019
Page 18 of 18
2. Travel Time - Travel time will be charged at regular hourly rates, not to exceed eight (8) hours
per day.
3. Expenses - All direct costs will be billed at actual cost plus 10%, unless there is explicit
agreement otherwise. Direct costs include:
• Third party services – Fees for subcontracted third party services (including drilling and
backhoe services, special consultant fees, permits, special equipment rental, overnight
mail or messenger services and other similar project related costs).
• Travel expenses, including airfares, hotel, meals, ground transportation, and
miscellaneous expenses.
• Reproduction costs, including photocopy, blueprints, graphics, photo prints or
printing.
4. Subconsultants - To the extent that it becomes necessary to use subconsultants, Client will be
invoiced at cost plus 10% to cover insurance liability and other overhead costs.
5. Accounting - The cost of normal accounting services for invoicing has been considered in the
overhead expense which is included in the above hourly rates. Additional requirements for
invoice verification, such as copies of time sheets, detailed expense records, and supplemental
daily work justification will be billed on an hourly basis.
DocuSign Envelope ID: 672FDFE4-3BD5-4D2B-BB68-5074D7D1C1F7
8.d
Packet Pg. 198
AMENDMENT NO. 2 TO CONTRACT NO. C21179265C
BETWEEN THE CITY OF PALO ALTO
AND CAROLLO ENGINEERS, INC.
This Amendment No. 2 (this “Amendment”) to Contract No. C21179265C (the “Contract” as
defined below) is entered into as of December 5, 2022, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and CAROLLO ENGINEERS, INC., a California
corporation, located at 2795 Mitchell Drive, Walnut Creek, CA 94598 (“CONSULTANT”). CITY and
CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties to provide
construction management and inspection services on an on-call, as-needed, time-limited
basis in connection with individual projects or inspection tasks at the Regional Water
Quality Control Plant (RWQCP), as detailed therein.
B. The Parties entered into Amendment No. 1 to add Task 2 services (referred to as Work
Order No. 2) for Construction Management and Inspection Services for the 12kV
Electrical Power Distribution Loop Rehabilitation Bid Package 1 Project, and to increase
compensation by Six Hundred Four Thousand Two Hundred Forty-Six Dollars
($604,246.00), from One Dollar ($1.00) to Six Hundred Four Thousand Two Hundred
Forty-Seven Dollars ($604,247.00), as detailed therein.
C. The Parties now wish to amend the Contract in order to (1) extend the contract term
through March 31, 2028; (2) add Task 3 services (referred to as Work Order No. 3) for
Construction Management Services for the Secondary Treatment Upgrades Project; and
(3) increase compensation by Eight Million Two Hundred Thirty-Seven Thousand Twenty-
One Dollars ($8,237,021.00), from Six Hundred Four Thousand Two Hundred Forty-Seven
Dollars ($604,247.00) to Eight Million Eight Hundred Forty-One Thousand Two Hundred
Sixty-Eight Dollars ($8,841,268.00), as detailed herein.
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this
Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C21179265C between
CONSULTANT and CITY, dated June 14, 2021, as amended by:
Amendment No. 1, dated November 7, 2022
b. Other Terms. Capitalized terms used and not defined in this Amendment shall
have the meanings assigned to such terms in the Contract.
8.e
Packet Pg. 199
SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to
read as follows:
“The CITY is engaging multiple consultants, including CONSULTANT, that are eligible to respond with
proposals to the CITY’s project-specific Task Orders under the process described in Exhibit A. 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 One Dollar ($1),
unless CITY selects CONSULTANT, according to the process in Exhibit A, to perform services under a Task
Order not to exceed Eight Million Two Hundred Thirty-Seven Thousand Twenty-One Dollars
($8,237,021.00) over the term of the Agreement. No pre-qualified consultant, including the
CONSULTANT under this Agreement, is guaranteed selection or assured of any minimum quantity of
work to be performed. In the event CONSULTANT is not selected to provide Services under a Task Order,
no payment is due from CITY.
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.
A. The City has selected CONSULTANT to perform Work Order #2, for construction
management and inspection services for the Medium Voltage Electrical Network (12kV Elec.
Loop) Rehabilitation Bid Package 1 Project, in the amount not to exceed Five Hundred Forty-
Nine Thousand Three Hundred Fifteen Dollars ($549,315.00). CONSULTANT agrees to
complete all Basic Services, including reimbursable expenses, within this amount. In the
event Additional Services (as defined below) are authorized, the total compensation for
Basic Services, Additional Services and reimbursable expenses shall not exceed Six Hundred
Four Thousand Two Hundred Forty-Seven Dollars ($604,247.00).
B. The City has selected CONSULTANT to perform Work Order #3, for construction
management services for the Secondary Treatment Upgrades Project, in the amount not to
exceed Seven Million Four Hundred Eighty-Eight Thousand Two Hundred One Dollars
($7,488,201.00). CONSULTANT agrees to complete all Basic Services, including reimbursable
expenses, within this amount. In the event Additional Services (as defined below) are
authorized, the total compensation for Basic Services, Additional Services and reimbursable
expenses shall not exceed Eight Million Two Hundred Thirty Seven Thousand Twenty-One
Dollars ($8,237,021.00).
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 Fifty-Four Thousand Nine Hundred Thirty-Two Dollars
($54,932.00) for the performance of Additional Services for Work Order #2 and Seven Hundred
Forty-Eight Thousand Eight Hundred Twenty Dollars ($748,820.00) for Work Order #3 (as
8.e
Packet Pg. 200
defined below). The total compensation for performance of the Services, Additional Services and
any reimbursable expenses specified in Exhibit C, shall not exceed Eight Million Eight Hundred
Forty-One Thousand Two Hundred Sixty-Eight Dollars ($8,841,268.00) 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 in a
Task Order issued under Exhibit A. CITY may elect to, but is not required to, authorize Additional
Services up to the maximum amount of compensation set forth for Additional Services in this
Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization
from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a
Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13
(Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1,
entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope
of services, schedule of performance and maximum compensation amount, in accordance with
the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY
in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit
C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project
Manager within the time specified by the Project Manager, and upon authorization by CITY
(defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall
become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task
Orders authorized under this Agreement shall not exceed the amount of compensation set forth
for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional
Services performed under an 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 3. The following exhibit(s) to the Contract are hereby amended, as indicated below, to
read as set forth in the attachment(s) to this Amendment, which are hereby incorporated in full into this
Amendment and into the Contract by this reference:
a. Exhibit “A-3” entitled ““PROFESSIONAL SERVICES TASK ORDER NO. 3, AMENDMENT NO.
2” (ADDED).
b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2” (AMENDED,
REPLACES PREVIOUS)
c. Exhibit “C” entitled “COMPENSATION, AMENDMENT NO. 2,” (AMENDED, REPLACES
PREVIOUS).
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
8.e
Packet Pg. 201
SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment
and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
8.e
Packet Pg. 202
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 or Designee
APPROVED AS TO FORM:
______________________________
City Attorney or Designee
CAROLLO ENGINEERS, INC.
Officer 1
By:_____________________________
Name:__________________________
Title:____________________________
Officer 2
By:_____________________________
Name:__________________________
Title:____________________________
Attachments:
Exhibit “A-3”: PROFESSIONAL SERVICES TASK ORDER NO. 3
Exhibit “B”: SCHEDULE OF PERFORMANCE
Exhibit “C”: COMPENSATION
8.e
Packet Pg. 203
EXHIBIT “A-3”
PROFESSIONAL SERVICES TASK ORDER NO. 3, AMENDMENT NO. 2
(ADDED)
CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions
of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into
this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional,
technical and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179265C
1A. MASTER AGREEMENT NO.: C21179265C
1B. TASK ORDER NO 3: Work Order No. 3 for Construction Management Services for the
Secondary Treatment Project
2. CONSULTANT NAME: CAROLLO ENGINEERS, INC.
3. PERIOD OF PERFORMANCE: START: Immediately Once Notice To Proceed (NTP) is
Issued; COMPLETION: 276 Weeks from NTP
4 TOTAL TASK ORDER NO. 3 PRICE: $7,488,201.00
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT: $0
5. WBS/CIP: WQ-19001
6. CITY PROJECT MANAGER: Padmakar Chaobal, Public Works Department, Environmental
Services Division, RWQCP
7. DESCRIPTION OF SCOPE OF SERVICES 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: Task Order No. 3 Scope Of Services, including Schedule of Performance
and Compensation Schedule
TASK ORDER #3 SCOPE OF SERVICES
WORK ORDER NO. 3: CONSTRUCTION MANAGEMENT SERVICES FOR THE SECONDARY TREATMENT
UPGRADES PROJECT
Task 1: General Requirements
1. For any work which requires licensing, the Proposers shall be appropriately licensed in
accordance with the laws of the State of California. The cost for any required licenses or
training shall be the responsibility of the successful Proposers and shall not be
expensed as part of this contract.
2. CONSULTANT shall prepare and submit to the City a Project Management Plan to
include schedule; budget; spending projection and staffing level for each month for
the duration of the contract term; personnel roles and construction management
8.e
Packet Pg. 204
procedures. CONSULTANT shall provide all necessary administration, project controls,
quality assurance and professional oversight to ensure that:
a. The project remains on schedule, within budget, ensures continuity of
information, and satisfies the requirements of the CONTRACT.
b. The construction project is progressing per construction contract’s
requirements.
3. For the STU Project, the CITY will seek disbursement from SRF for some or all of the
CONSULTANT’s costs. CONSULTANT shall provide SRF required documentation with
the invoices and clearly indicate the eligible SRF disbursement amount. Reimbursable
For personnel travels to the project site from an area outside of the San Francisco Bay
Area and within the State of California, personal vehicle mileage reimbursement rates
and meal allowance shall in accordance with the rates published by the State each
year. See https://www.calhr.ca.gov/employees/pages/travel-reimbursements.aspx
4. At the beginning of each month, CONSULTANT shall prepare and submit to the City
Project Manager a monthly invoice package. The City prefers processing CONSULTANT
pay requests that cover one calendar month. Monthly invoice packages shall include
the cost incurred during previous month including subconsultant cost and expenses,
and a progress report documenting progress. The report shall include the progress by
each task, the budget status (authorized amount, current billing, billed to date,
previously billed, amount remaining, and percent spent), outstanding issues, potential
changes, project schedule and schedule impacts. CONSULTANT shall identify and
mitigate potential budget overruns; and notify CITY Project Manager as soon as the
potential overrun is identified. If SRF funding is used, progress reports shall include a
summary of SRF eligible costs per month.
Task 2: Preconstruction Phase
1. CONSULTANT shall perform reviews of construction drawings and specifications at
varies levels of design, as directed by the CITY with focus on constructability of the
project. (Note that the STU design is 100% completed). At a minimum, the
CONSULTANT shall provide and log comments regarding the plans, specifications, and
construction cost estimate in an Excel Workbook, provided by CITY. Comments should
at a minimum include feedback on measurement and payment, sequencing, schedule,
temporary facilities, constructability, and required contractor qualifications.
2. The City may assign milestone reviews of other projects in the preconstruction phase.
Reviews shall determine the coordination required between the subject project and
other projects for concurrent work and the constructability of other projects following
the completion of the subject project. This work shall be tracked via a separate
subtask.
3. The City may request the COMSULTANT to attend the pre-bid meeting. CONSULTANT
shall assist the City with evaluation of construction bids to determine bid irregularities,
if any. The successful bidder will be based on the lowest responsive and responsible
bid.
4. Administration
a. CONSULTANT shall propose a project administration procedure, including an
8.e
Packet Pg. 205
online document tracking system, for CITY approval. The administration
procedure will detail how the CONSULTANT will track, store, distribute, and
manage digital and hardcopy correspondence and project documentation and
strategy for managing project communications.
b. CONSULTANT shall establish and maintain a health and safety plan specific for
CONSULTANT’s staff and subconsultants. Submit a copy for City’s record.
During construction activities, CONSULTANT shall follow CONTRACTOR(S)’s
health and safety plan(s), if it is more stringent.
5. Field Office Setup
a. CONSULTANT shall organize the hardcopy and digital files for the project prior
to commencement of construction and coordinate with the CITY and
CONTRACTOR for office trailer set-up.
b. CITY will designate a location for the office trailer and provide utility
connection points.
c. CONSULTANT will provide furnished office trailer, copier, phone/service, and
internet access, unless otherwise provided by City.
6. Preconstruction Activities
a. Site Walk Observations and Documentation
i. CONSULTANT will conduct preconstruction inspections, documenting
conditions in a log and providing digital photographs and video(s).
b. Preconstruction Submittals
i. CONSULTANT to develop a list of CONTRACTOR pre-construction
submittals.
ii. CONSULTANT to review CONTRACTOR’s pre-construction submittals,
schedule of values, and preliminary schedule.
Task 3: State Revolving Fund (SRF) Compliance
1. CONSULTANT shall prepare and package for submittal all required State Revolving
Fund (SRF) documentation needed to obtain monthly SRF loan disbursements during
the construction period. CITY will submit the documentation to the State.
2. CONSULTANT shall prepare and package for submittal Quarterly Construction reports
and Annual SBE Report required for SRF compliance. Package shall include a
narrative and photos of construction activities performed during the reporting
period. CITY will submit the documentation to the State.
3. CONSULTANT shall document CONTRACTOR’s compliance with all SRF requirements,
including:
a. Project signage meeting SRF requirements
b. American Iron and Steel (AIS) requirements
c. Build America, Buy America (BABA) – if applicable to this project
d. Davis-Bacon Act compliance
i. CONSULTANT shall perform Davis-Bacon Wage Rate Interviews at
intervals required by SRF, but not less than every time a new
contractor, subcontractor, or trade begins work. Subsequent
8.e
Packet Pg. 206
interviews shall be required periodically based upon the
CONSULTANT and CITY’s assessment of Risk of Noncompliance.
e. Disadvantaged Business Enterprise (DBE) certifications
f. Project Closeout forms
g. Certified payrolls
4. CONSULTANT shall maintain a submittal log of materials subject to
AIS requirements and/or approved exemptions.
5. CONSULTANT shall prepare and package for submittal Project Close Out Report
required for SRF compliance. CITY will submit the documentation to the State.
Task 4: Construction Phase
1. Construction Administration
a. Project Coordination
i. CONSULTANT shall act as the project coordinator and the point of
contact for all communications with the CONTRACTOR. The
CONSULTANT shall coordinate construction activities of the CITY,
ENGINEER, and CONTRACTOR. CONSULTANT responsibilities include:
conduct team meetings within the consulting firm to review progress,
coordinate evaluations and identify information needs; disseminate
information to the design team; manage the project budget; manage
the project schedule; manage sub-consultants; manage QA / QC team;
Coordinate communications with other ongoing projects’ construction
managers to facilitate the construction of ongoing projects and
continuous Plant operations.
ii. CONSULTANT shall provide a contact phone number to respond to
issues related to construction activity or coordination, 24 hours a day,
7 days a week.
b. Document Tracking System: CONSULTANT shall establish, implement and
maintain an online system for tracking all correspondence and documents
on the Project or shall adopt a project administration procedure previously
approved by CITY. CONSULTANT shall incorporate within the tracking
system the means to track the routing of submittals/RFIs to the CITY’s
other consultants.
c. Construction Administration Services: CONSULTANT shall provide
administrative and management services. The CONSULTANT shall receive
all correspondence from the CONTRACTOR and address all inquiries from
the CONTRACTOR and construction related correspondence. The ENGINEER
will be responsible for providing design input.
2. Meetings:
a. CONSULTANT shall prepare agenda for kick-off meeting, weekly progress
meetings and other construction/technical meetings required during the
term of the Project. CONSULTANT shall preside the meetings, address
administrative and non-design issues, and prepare meeting minutes for
distribution. CITY, ENGINEER and CONTRACTOR’s team will attend the
8.e
Packet Pg. 207
Page 10 of 21 Vers.: Aug. 5, 2019
meeting. The ENGINEER will address design issues. CONSULTANT shall have
all pending decisions detailed for the meetings as well as project statistics
(schedule updates, risks as identified by risk register, percent of project
complete, near-term milestones, etc.).
b. Anticipated Meetings
i. Construction kick-off meeting
ii. Weekly progress meetings
iii. As-needed technical meetings with CITY, ENGINEER, CONTRACTOR
and manufacturer’s representative(s) to resolve equipment and/or
installation issues
iv. Minimum two (2) Electrical Service (Power Feed) Coordination
Meeting with Palo Alto Electric Utilities (for LC11)
v. Project close-out Meeting
vi. Attend other concurrent projects’ kickoff meetings
vii. Periodic coordination meetings with other ongoing projects’
construction managers and the City
3. Submittals
a. CONSULTANT shall use the online document tracking system to log and
coordinate the submittal process.
b. CONSULTANT shall receive the submittals, including CONTRACTOR’s red-line
drawings, from the CONTRACTOR and check the submittals for
completeness and general conformity with the Construction Contract
requirements. If obvious deficiencies are apparent in the submittal, the
CONSULTANT shall reject and send the submittal back to the
CONTRACTOR for correction.
c. CONSULTANT shall route the submittals to the ENGINEER for review and
shall route the reviewed submittal back to the CONTRACTOR. The
CONSULTANT shall review comments on the submittals to determine if
additional follow-up with the CONTRACTOR and/or ENGINEER is
warranted and to identify any scope changes.
d. CONSULTANT shall coordinate the ENGINEER’s submittal review and the
track the status of shop drawing resubmittals with the CONTRACTOR.
e. CONSULTANT shall review the submittals for progress schedule, temporary
facilities, construction sequencing, conduit/pipe layout plan,
manufacturer/applicator/installer’s certificates, and other non- technical
submittals.
f. CONSULTANT shall review temporary facilities submittals for operability as
well as conflicts with other ongoing projects’ active and/or proposed
construction. The City may request CONSULTANT to review other
ongoing projects’ temporary facilities submittals for coordination logistics
and constructability issues.
4. Request for Information/Clarification Process
8.e
Packet Pg. 208
Page 11 of 21 Vers.: Aug. 5, 2019
a. CONSULTANT shall utilize the online document tracking system for processing
requests for design clarifications.
b. CONSULTANT shall receive all requests for information (RFIs) from the
CONTRACTOR and determine if the request is a valid RFI;
i. If valid, ENGINEER will review the RFIs and provide design response.
CONSULTANT shall review the ENGINEER’s response, verify
acceptability of response and transmit the Clarification Response to
the CONTRACTOR.
ii. If not, CONSULTANT shall return the RFI to the CONTRACTOR with
justifications.
c. CONSULTANT shall provide a response within 10 working days to the
CONTRACTOR for any administrative, field condition specific and general
RFI.
d. ENGINEER shall prepare Design Clarifications where design issues are
identified by the CONSULTANT, ENGINEER, or CITY. CONSULTANT shall
prepare the Clarification Letter for transmittal to the CONTRACTOR of the
ENGINEER’s Design Clarification and other clarifications.
e. CONSULTANT shall work with the CITY Project Manager to maintain an Error
and Omission Log to document change orders, RFIs and RFCs that are a
result of ENGINEER and CONTRACTOR errors in design and construction,
respectively. The log shall record the hours spent by the ENGINEER to
respond to the RFIs/ RFCs and associated cost impact to the construction.
CITY may seek reimbursement from the ENGINEER and/or CONTRACTOR.
5. Change Order Preparation, Negotiation & Processing
a. CONSULTANT shall review all change order requests (either initiated by the
CITY or by the CONTRACTOR).
i. CONSULTANT shall utilize the online document tracking system to log,
track, and process changes.
ii. CONSULTANT shall maintain Change Event files. These files shall
compile all data related to specific items that arise that may have cost
or time impacts or neither.
b. CONSULTANT shall judge the validity and/or merits of all CONTRACTOR
initiated change order requests. CONTRACTOR initiated change orders
deemed unnecessary, or not substantiated by a deficiency in the
construction documents shall be returned to CONTRACTOR unapproved
with an explanation.
c. CONSULTANT shall negotiate change orders with the CONTRACTOR,
considering impact to the schedule, as well as, reasonableness of cost, and
impact to total project budget. CONSULTANT shall provide updates
regarding potential cost and schedule changes to CITY.
d. CONSULTANT shall prepare an independent cost estimate and/or verify the
acceptability of the CONTRACTOR’s cost proposal for each approved
8.e
Packet Pg. 209
Page 12 of 21 Vers.: Aug. 5, 2019
change request. At CITY’s discretion, ENGINEER’s opinion may be
requested for specific equipment and material costs.
e. CONSULTANT shall prepare change orders using CITY’s procedure for
execution by the CITY and CONTRACTOR.
i. CONSULTANT shall prepare a Change Order Memorandum, if
requested by the CITY, to provide additional background discussion
for need of the change and reasonableness of cost and schedule
impact.
ii. ENGINEER shall prepare design details for change requests as needed.
CONSULTANT to coordinate schedule and distribution of design
details.
iii. CONSULTANT shall prepare, and issue approved change order
requests to the CONTRACTOR with the appropriate design documents
as directed by the CITY.
f. In the event the CONTRACTOR encounters a time sensitive problem where
time is not available to negotiate a settlement, CONSULTANT shall issue a
field order in accordance with the City’s procedures.
i. All work done under a field order will be completed on a time and
material basis. CONSULTANT to track actual time and material
expended for the field order work.
ii. Field orders shall be reviewed and approved with the CITY prior to
issuance.
6. Documentation of Environmental Compliance
a. CONSULTANT shall document compliance with environmental permitting and
mitigation measures in accordance with the requirements of the
environmental documents and regulatory permits.
7. Progress Payment
a. CONSULTANT shall review the initial schedule of values (cost breakdown)
prepared by the CONTRACTOR and generate a progress payment request
form for the CONTRACTOR’s use which is compatible with the SRF
CONTRACTOR Spreadsheet (Form No. 259) and acceptable to SRF,
Financial Assistance Division.
b. CONSULTANT shall review and process the progress payment requests and
determine whether the amount requested reflects the actual status of the
Contractor’s work in place, materials on site and other contract
requirements.
c. CONSULTANT shall perform the appropriate administration, preparation and
processing of the monthly progress payments so the CITY can respond in
accordance with the time periods set forth in the Public Contract Code.
d. CONSULTANT shall prepare the summary cover sheet for the progress
payments which will be executed by CONSULTANT, CONTRACTOR and
CITY.
8.e
Packet Pg. 210
Page 13 of 21 Vers.: Aug. 5, 2019
e. CONSULTANT shall not recommend final payment to the CONTRACTOR until
the CONSULTANT has determined CONTRACTOR has complied with the
project closeout requirements, including submittals of record documents,
warranties, and operations and maintenance manuals. CITY will release
the retention only after a Notice of Completion has been recorded with
the Santa Clara County Clerk’s Recorder Office.
f. CONSULTANT shall work with Contractor to develop an estimate of
contractor’s anticipated monthly pay request (billing/invoicing) schedule
for the entire duration of the construction phase. The estimate shall be
updated quarterly. The information will be used by the City for financial
and cash flow analyses.
8. CONTRACTOR’s Certified Payroll
a. On a bi-weekly basis, or when otherwise requested by the CITY, State, or
other agency or public inquiry, the CONSULTANT shall collect certified
payrolls from the CONTRACTOR. Apart from the regular, bi-weekly
collection, the CONSULTANT shall obtain payroll records within 10 days of
the CITY’s request.
b. CONTRACTOR is responsible for submitting electronically their certified
payroll records to the State Department of Industrial Relations.
c. CONSULTANT shall be responsible for documenting and conducting
interviews of the CONTRACTOR’s field staff/crew for compliance with CITY
prevailing wage ordinance and SRF requirements (SF-1445).
9. Schedule
a. CONSULTANT shall review CONTRACTOR’s initial Baseline schedule submittal
to determine whether it is realistic and prepared in accordance with the
Contract Documents, that the milestone and Substantial Completion dates
meet the overall goal for schedule and that no major conflicts exist. The
CONSULTANT shall advise CITY of the review determination and provide
written comments to the CONTRACTOR.
b. CONSULTANT shall review the CONTRACTOR’s schedule updates and provide
written comments to the CONTRACTOR.
c. CONSULTANT shall review and evaluate the CONTRACTOR’s requests for
Contract time extension and/or monetary claim, and make written
recommendations to the CITY regarding entitlement and the number of
days, if any, to be added to the Contract Time(s). If requested by the
CITY, CONSULTANT shall provide a written assessment of the time
request. CONSULTANT shall evaluate and negotiate schedule adjustments
with the CONTRACTOR.
10. Field Quality Control (Inspection Services)
a. CONSULTANT shall provide field observation services to monitor compliance
with the Contract Documents.
i. CONSULTANT staff shall have sufficient training and experience
8.e
Packet Pg. 211
Page 14 of 21 Vers.: Aug. 5, 2019
regarding the specific construction activities being performed by
CONTRACTOR.
1) CONSULTANT shall provide staffing at a level that match
construction load and as required to observe CONTRACTOR’s
activities.
2) CONSULTANT shall provide subconsultant(s) as needed to
observe specialty work or conduct specialty tests (see Special
Inspections).
3) CITY may set an allowance on a task order specific basis for
the increased cost only of inspectional services if required
during off hours and on weekends. Consultant to provide
sufficient hours to cover all inspectional services anticipated
at standard rates.
b. Reporting
i. CONSULTANT shall prepare daily inspection reports documenting
observed field activities, field crews, CONTRACTOR equipment, and
field problems. CONSULTANT shall collect and compile CONTRACTOR
daily reports. Such information shall be accessible by the City.
ii. CONSULTANT shall provide and maintain photographs of field
activities for status monitoring of the project.
iii. CONSULTANT shall monitor record documents (redline drawings) on a
bi-weekly basis to determine if they are being maintained by the
CONTRACTOR and are in substantial conformance with the
CONSULTANT’s information/observations.
iv. CONSULTANT shall prepare a monthly report to include major work
performed, outstanding issues, project photographs, schedule status,
pending and executed change orders summary, and quality issues.
This report shall also be part of CONSULTANT’s monthly progress
payment report.
c. Special Inspections
i. CONSULTANT shall furnish the materials testing and special
inspections required to be performed for the Project. Special
Inspection and materials testing include, but not limited to:
1) Soils testing for HazMat compliance
2) Soils compaction and relevant testing
3) Asphalt compaction and relevant testing
4) Concrete sampling and testing
5) Structural steel welding
6) Coating inspection
7) Special inspections as listed in the project specific design
drawings and specs.
It should be noted that the foundation pile installation
8.e
Packet Pg. 212
Page 15 of 21 Vers.: Aug. 5, 2019
observation special inspections will be performed by the
Geotechnical Engineer (retained by the ENGINEER) on this
project. CONSULTANT only needs to coordinate this effort
with the City Project Manager.
ii. CONSULTANT shall schedule and coordinate the material testing
services and have responsibility for the specialty inspections and
testing services.
11. System Outages
a. CONSULTANT shall review and evaluate the CONTRACTOR’s system outage
requests (SOR) in conjunction with the CITY. CONSULTANT shall assess
the reasonableness of the duration of the requested shutdown.
b. The SORs shall be reviewed and approved at least two weeks ahead of the
actual outage/shutdown.
c. CONSULTANT shall facilitate/coordinate shutdowns with the CONTRACTOR,
CITY and ENGINEER.
i. CITY is responsible for reviewing and approving system outage
request and duration, confirming the outage is properly planned,
implementing the outage, and bringing services back online after the
outage.
12. Means and Methods of Construction
a. CONSULTANT shall not direct the means and methods of construction.
CONTRACTOR shall be solely responsible for the means and methods of
construction. In the event when the CONTRACTOR’s means and methods
and/or work sequence are perceived to have negative impacts on the
final work quality or may damage existing City’s property, the
CONSULTANT shall communicate with the CONTRACTOR and inform the
CITY and ENGINEER.
13. Construction Staging and laydown Area
CONSULTANT shall periodically observe the construction staging and laydown areas
to check if:
a. Equipment and materials are being stored in accordance with the
manufacturers’ procedure (e.g., protection from weathering elements).
b. Exiting plant equipment (e.g., electrical switchgear) are being protected.
c. Heavy loads are not concentrated at or adjacent to locations were
underground utility (s) is present.
14. Safety
a. CONSULTANT shall comply with appropriate regulatory, project and CITY
codes in addition to CONSULTANT’s Health and Safety Plan regarding
necessary safety equipment and procedures used during performance of
the CONSULTANT’s work and shall take necessary precautions for safe
operation of the CONSULTANT’s work, and the protection of the
CONSULTANT’s personnel from injury and damage from such work.
b. Neither the professional activities of the CONSULTANT, nor the presence of
8.e
Packet Pg. 213
Page 16 of 21 Vers.: Aug. 5, 2019
the CONSULTANT’s employees or sub-consultants at the
construction/project site, shall relieve the CONTRACTOR and any other
entity of their obligations, duties and responsibilities including, but not
limited to, construction means, methods, sequence, techniques or
procedures necessary for performing, superintending, or coordinating
their work in accordance with the Contract Documents, City codes, and
any health or safety precautions required by pertinent regulatory
agencies. CONSULTANT and its personnel have no authority to exercise
any control over any CONTRACTOR or other entity or their employees in
connection with their work or any health or safety precautions.
15. Spare Parts
a. Based on the specifications and vendor O&M Manuals, CONSULTANT shall
prepare a consolidated/complete list of required spare parts in Excel.
b. CONSULTANT shall inventory spare parts as they are delivered by the
CONTRACTOR and transferred to the CITY. The transfer of part shall be
documented via material transmittal, signed by Contractor, CONSULTANT
and CITY.
16. Operation and Maintenance (O&M) Manuals
a. CONSULTANT shall prepare a list of anticipated O&M Manuals and track the
submittal and review process in the online document tracking system.
b. CONSULTANT shall verify that the submitted O&M manuals are the correct
and latest version, and that the ‘lessons learned’ and notes taken during
startup and commissioning are included in the O&M manuals.
CONSULTANT shall coordinate delivery of final hardcopies and electronic
copy from the CONTRACTOR to CITY.
17. Testing and Training
a. CONSULTANT shall coordinate and oversee manufacturer/vendor provided
testing/startup/commissioning activities and training sessions.
b. ENGINEER shall provide technical assistance associated with the design
intent during testing/startup/commissioning operations.
c. CONTRACTOR shall develop and submit a Testing and Startup Plan.
CONSULTANT shall work with CONTRACTOR, ENGINEER and CITY on the
review and revision of the Testing and Startup Plan.
d. CONSULTANT shall observe start-up and testing as the CITY’s representative
and maintain copies of start-up documentation in an organized binder
(and scanned electronic copy) that shall be turned over at the end of the
project.
e. CONSULTANT shall coordinate the training with the CONTRACTOR, vendor
and CITY staff. Some equipment may need training for third party
personnel with whom the CITY may be contracting with. CITY will provide
the vendor contact information for CONSULTANT to coordinate with.
8.e
Packet Pg. 214
Page 17 of 21 Vers.: Aug. 5, 2019
Trainings shall be coordinated so that key CITY staff can attend; schedule
shall accommodate key CITY staff/ Plant operations shifts. Multiple
training sessions for day shift and night shift operators may be required.
f. CONSULTANT shall attend training sessions and collect attendance sheets
and copies of training material.
g. If required by CITY, CONSULTANT shall coordinate production quality audio
and video recording and editing of training sessions to be used for future
training sessions. The final digital copy shall be labeled and have an
introduction that indicates the type of training, the process area, the
equipment name, the vendor(s) / manufacturer(s) if applicable, the date,
and the CONTRACTOR.
h. Refer to the CITY’s Demonstration and Training Standards for more details.
18. Corrective Work Item List
a. The CONSULTANT shall prepare and maintain a Corrective Work Item list
(CWL) with the input from the CITY and ENGINEER.
b. CONSULTANT shall confirm that the items identified in the CWL are
completed in preparation for issuance of Substantial Completion
Certificate (SCC).
c. CONSULTANT shall prepare the SCC for execution by the CITY and the
CONTRACTOR when the Corrective Work Items are completed to the
CITY’s, ENGINEER’s and The CONSULTANT’s satisfaction.
E. Task 5: Project Closeout Phase
1. Punch List and Final Inspection
a. Punch List
i. CONSULTANT shall identify work with outstanding deficiencies and
generate Punch List in Excel. Coordinate site walkthrough with the
CITY and CONTRACTOR, as needed.
ii. CONSULTANT shall have primary responsibility for verifying that the
Punch List work is complete.
b. Final Inspection
i. CONSULTANT shall have primary responsibility for conducting the
final inspection. Coordinate site walkthrough with the CITY and
CONTRACTOR, as needed.
1) CITY will participate and provide input on the final inspection.
2) ENGINEER will provide design input on final inspection items
if determined necessary by the CITY.
2. Warranty Coordination
a. CONSULTANT shall maintain a warranty file in the online document tracking
system. All warranty documentation shall be handed off to the CITY at
conclusion of the contract.
8.e
Packet Pg. 215
Page 18 of 21 Vers.: Aug. 5, 2019
3. Project Closeout
a. CONTRACTOR shall furnish record documents, which the CONSULTANT shall
review and transmit to ENGINEER for preparation of record drawings.
b. CONSULTANT shall prepare necessary CITY documentation recommending
acceptance of the completed work by the CITY.
c. CONSULTANT shall turnover project documentation to the CITY in an orderly
manner and in a timely manner after completion of the project and all
punch list activities. The CONSULTANT shall retain all change event files
at the end of the project. The CITY shall have the right to request review
and/or copies of the change events files.
Work Order No. 3: Milestone Schedule Of Performance
TASK # MILESTONES NUMBER OF WEEKS TO COMPLETION FROM
WORK ORDER #1 NOTICE TO PROCEED (NTP)
Task 1 General Requirements 276 Weeks
Task 2 Pre-Construction 10 Weeks
Task 3 SRF Compliance 276 Weeks
Task 4 Construction Phase 263 Weeks
Task 5 Project Closeout 276 Weeks
Work Order No. 3: Milestone Compensation Schedule
TASK # MILESTONES NOT TO EXCEED
AMOUNT
Task 1 General Requirements $137,470
Task 2 Pre-Construction $41,200
Task 3 SRF Compliance $241,310
Task 4 Construction Phase $6,870,421
Task 5 Project Closeout $47,800
Inspection Allowance $150,000
Sub-total Basic Services $7,488,201
Reimbursable Expenses $0
Total Basic Services and Reimbursable Expenses $7,488,201
Additional Services (per Section 4) (Not to Exceed) $748,820
Maximum Total Compensation $8,237,021
8.e
Packet Pg. 216
Page 19 of 21 Vers.: Aug. 5, 2019
EXHIBIT “B”
SCHEDULE OF PERFORMANCE, AMENDMENT NO. 2
(AMENDED, REPLACES PREVIOUS)
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.
WORK ORDER #2
Tasks 1-5 completed within 125 Weeks from the Notice to Proceed for Work Order 2, as detailed in
the Milestone Schedule of Performance attached to Work Order #2.
WORK ORDER #3
Tasks 1-5 completed within 276 Weeks from the Notice to Proceed for Work Order 3, as detailed in
the Milestone Schedule of Performance attached to Work Order #3.
8.e
Packet Pg. 217
Vers.: Aug. 5, 2019
Page 20 of 21
EXHIBIT “C”
COMPENSATION, AMENDMENT #2
(AMENDED, REPLACES PREVIOUS)
CITY agrees to compensate CONSULTANT for on-call, as-needed, time-limited project
support services performed in accordance with the terms and conditions of this Agreement,
and as set forth in a specific Task Order budget schedule. 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 in a specific Task Order.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any
of the tasks or categories within a specific Task Order, 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.
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.
WORK ORDER #2
Compensation as detailed in the Milestone Compensation Schedule attached to Work
Order #2., Not to Exceed:
Total Basic Services and Reimbursable Expenses $549,315
Additional Services (per Section 4) (Not to Exceed) $54,932
Maximum Total Compensation $604,247
8.e
Packet Pg. 218
Vers.: Aug. 5, 2019
Page 21 of 21
WORK ORDER #3
Compensation as detailed in the Milestone Compensation Schedule attached to Work
Order #3., Not to Exceed:
Total Basic Services and Reimbursable Expenses $7,488,201
Additional Services (per Section 4) (Not to Exceed) $748,820
Maximum Total Compensation $8,237,021
8.e
Packet Pg. 219
Resolution No. ####
Resolution of the Council of the City of Palo Alto Authorizing the Reimbursement
of Funding for the Regional Water Quality Control Plant Secondary Treatment
Upgrades from the State Water Resource Control Board
R E C I T A L S
A. The City of Palo Alto (the “City”) desires to finance the costs of constructing
and/or reconstructing certain public facilities and improvements relating to its water and
wastewater system, including certain treatment facilities, pipelines and other infrastructure
(the "Project").
B. The City intends to finance the construction and/or reconstruction of the
Project or portions of the Project with moneys ("Project Funds") provided by the State of
California, acting by and through the State Water Resources Control Board (State Water
Board).
C. The State Water Board may fund the Project Funds with proceeds from the
sale of obligations the interest upon which is excluded from gross income for federal
income tax purposes (the "Obligations").
D. Prior to either the issuance of the Obligations or the approval by the State
Water Board of the Project Funds the City desires to incur certain capital expenditures (the
"Expenditures") with respect to the Project from available moneys of the City.
E. The City has determined that those moneys to be advanced on and after the
date hereof to pay the Expenditures are available only for a temporary period and it is
necessary for the State Water Board to reimburse the City for the Expenditures from the
proceeds of the Obligations.
F. On March 1, 2021, the City Council adopted Resolution No. 9945 authorizing
reimbursement of funding for the Regional Water Quality Control Plant Secondary
Treatment Upgrades with a reasonably expected maximum principal amount of $169
million.
G. The City published an invitation for bids for the construction contract for
Project from July 21, 2022 to October 6, 2022 and received base bids ranging from $161.8
million to $167.5 million, approximately 36% higher than the Engineer’s estimate of
$118.7 million.
H. The City now wishes to amend Resolution No. 9945 and adopt this Resolution
8.f
Packet Pg. 220
increasing the reasonably expected maximum principal amount to $193 million to reflect
the higher-than-anticipated construction costs, as well as contingency and construction
management, and associated planning and design costs.
NOW, THEREFORE, the Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. The City hereby states its intention and reasonably expects to reimburse
Expenditures paid prior to the issuance of the Obligations or the approval by the State Water
Board of the Project Funds.
SECTION 2. The City hereby amends Resolution No. 9945 to increase the reasonably
expected maximum principal amount of the total Project, including associated planning and design
costs, to $193 million.
SECTION 3. This resolution is being adopted no later than 60 days after the date on which
the City will expend moneys for the construction portion of the Project costs to be reimbursed
with Project Funds.
SECTION 4. Each City expenditure will be of a type properly chargeable to a capital account
under general federal income tax principles.
SECTION 5. To the best of our knowledge, the City is not aware of the previous
adoption of official intents by the City that have been made as a matter of course for the
purpose of reimbursing expenditures and for which tax-exempt obligations have not been
issued.
SECTION 6. This resolution is adopted as official intent of the City in order to comply with
Treasury Regulation §1.150-2 and any other regulations of the Internal Revenue Service relating
to the qualification for reimbursement of Project costs.
SECTION 7. All the recitals in this Resolution are true and correct and this City so finds,
determines and represents.
SECTION 8. The Council finds that its authorization of funding reimbursement does not
constitute a project requiring review under the California Environmental Quality Act (CEQA) or CEQA
Guidelines. This action does not meet the definition of a project under Public Resources Code Section
21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental
activity which will not cause a direct or indirect physical change in the environment.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
8.f
Packet Pg. 221
ABSTENTI
ONS:
ATTEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
Senior Deputy City Attorney City Manager
Director of Public Works
8.f
Packet Pg. 222
BIDDER Bid Price Remarks % Over Estimate
Anderson Pacific Engineering Construction, Inc.
(APEC)161,846,500$ Low Bidder 36.34%
Kiewit Infrastructure West 166,240,500$ 40.04%
Flatiron West 167,518,500$ 41.12%
Engineer's Estimate 118,707,335$ 0.00%
Bid Summary
Secondary Treatment Upgrades (STU) Project
Invitation for Bids (IFB) Number: 185822
City of Palo Alto Public Works Department, RWQCP
CIP WQ‐19001
8.g
Packet Pg. 223
At
t
a
c
h
m
e
n
t
H:
RW
Q
C
P
Mo
n
t
h
l
y
/ 30
‐da
y
Av
e
r
a
g
e
In
f
l
u
e
n
t
Fl
o
w
in
Mi
l
l
i
o
n
Ga
l
l
o
n
s
pe
r
da
y
wi
t
h
Se
w
e
r
s
h
e
d
Po
p
u
l
a
t
i
o
n
Oc
t
o
b
e
r
19
7
2
to
Oc
t
o
b
e
r
20
2
2
12
0
14
0
16
0
18
0
20
0
22
0
24
0
26
0
1015202530354045
RW
Q
C
P
MO
N
T
H
L
Y
/ 30
‐DA
Y
AV
E
R
A
G
E
IN
F
L
U
E
N
T
FL
O
W
MI
L
L
I
O
N
GA
L
L
O
N
S
PE
R
DA
Y
(L
E
F
T
)
SE
W
E
R
S
H
E
D
PO
P
U
L
A
T
I
O
N
(T
H
O
U
S
A
N
D
S
@ RI
G
H
T
)
8.h
Packet Pg. 224
Attachment H: Partner Capacity and Share
Los Altos Mountain View
East Palo Alto
Sanitary District
Stanford
University Los Altos Hills Palo Alto Total
3.80 15.10 3.06 2.11 0.63 15.30 40.00
Los Altos Mountain View
East Palo Alto
Sanitary District
Stanford
University Los Altos Hills Palo Alto Total
9.47% 37.89% 7.64% 5.26% 1.58% 38.16%100%
Fiscal
Year Los Altos Mountain View
East Palo Alto
Sanitary District
Stanford
University Los Altos Hills Palo Alto
Average
Annual
Flow
(mgd)
2022 11.58% 40.22% 7.29% 6.19% 2.35% 32.37% 15.4
2021 10.84% 42.08% 6.15% 3.77% 2.31% 34.85% 15.1
2020 10.84% 41.63% 6.34% 4.61% 2.04% 34.55% 17.2
2019 9.90% 39.46% 6.78% 6.18% 1.76% 35.92% 19.1
2018 10.40% 38.11% 7.16% 7.03% 1.93% 35.37% 17.7
2017 9.83% 38.71% 6.95% 6.75% 1.56% 36.20% 19.7
2016 10.03% 38.45% 6.68% 7.00% 1.51% 36.33% 17.5
2015 10.30% 39.24% 6.22% 6.85% 1.41% 35.98% 17.8
2014 10.38% 38.75% 6.24% 6.31% 1.41% 36.91% 19.7
2013 9.86% 38.14% 6.41% 6.14% 1.28% 38.18% 20.7
2012 9.41% 36.79% 6.42% 6.13% 1.17% 40.08% 22.3
2011 10.35% 35.71% 6.80% 6.80% 1.14% 39.21% 23.7
2010 10.86% 36.76% 6.47% 6.27% 1.16% 38.48% 22.4
2009 11.72% 37.21% 7.15% 5.99% 1.15% 36.78% 21.8
2008 11.55% 37.84% 7.18% 5.98% 1.20% 36.25% 23.3
2007 10.78% 38.99% 7.38% 5.81% 1.05% 35.99% 24.0
2006 10.62% 38.96% 7.83% 5.75% 0.98% 35.86% 27.0
2005 11.90% 37.17% 7.72% 5.52% 1.06% 36.63% 24.9
2004 12.96% 37.43% 7.55% 5.35% 0.94% 35.77% 24.4
2003 13.32% 37.01% 7.17% 5.57% 0.93% 36.00% 25.3
2002 12.79% 36.63% 7.47% 5.20% 0.91% 37.00% 25.0
2001 11.98% 39.77% 6.89% 5.20% 0.83% 35.33% 26.6
2000 11.92% 39.09% 6.86% 5.34% 0.80% 35.99% 27.1
1999 11.99% 39.67% 6.80% 4.85% 0.77% 35.92% 25.8
1998 11.87% 39.40% 7.17% 3.92% 0.73% 36.91% 28.4
1997 11.95% 40.87% 6.97% 4.02% 0.74% 35.45% 25.9
1996 11.54% 40.93% 7.12% 4.01% 0.76% 35.64% 25.5
1995 11.45% 40.68% 6.91% 4.79% 0.79% 35.38% 24.9
PARTNERS' CONTRIBUTING SHARE OF WASTEWATER TREATMENT FUND OPERATING BUDGET
FIXED CAPACITY SHARE OF CAPITAL ASSETS FOR DEBT SERVICE SHARE
MAXIMUM FLOW CAPACITY RIGHTS EXPRESSED IN ANNUAL AVERAGE FLOW
MILLION GALLONS PER DAY
8.h
Packet Pg. 225
1
AT
T
A
C
H
M
E
N
T
H:
NE
I
G
H
B
O
R
I
N
G
AG
E
N
C
Y
IN
F
O
R
M
A
T
I
O
N
WA
S
T
E
W
A
T
E
R
MO
N
T
H
L
Y
RE
S
I
D
E
N
T
I
A
L
BI
L
L
($
)
NO
V
E
M
B
E
R
20
2
2
Pa
l
o
Al
t
o
is
28
%
be
l
o
w
co
m
p
a
r
i
s
o
n
ci
t
y
av
e
r
a
g
e
Me
n
l
o
Pa
r
k
Re
d
w
o
o
d
Ci
t
y
Sa
n
t
a
Cl
a
r
a
Mo
u
n
t
a
i
n
Vi
e
w
L
o
s
Al
t
o
s
H
a
y
w
a
r
d
44
.
6
2
10
6
.
6
7
89
.
2
8
46
.
8
2
50
.
1
0
42
.
0
5
38
.
5
8
Pa
l
o
Al
t
o
Ne
i
g
h
b
o
r
i
n
g
Co
m
m
u
n
i
t
i
e
s
8.h
Packet Pg. 226
2
AT
T
A
C
H
M
E
N
T
H:
NE
I
G
H
B
O
R
I
N
G
AG
E
N
C
Y
IN
F
O
R
M
A
T
I
O
N
WA
S
T
E
W
A
T
E
R
MO
N
T
H
L
Y
NO
N
‐RE
S
I
D
E
N
T
I
A
L
BI
L
L
($
)
NO
V
E
M
B
E
R
20
2
2
Co
m
m
e
r
c
i
a
l
:
Pa
l
o
Al
t
o
is
7%
hi
g
h
e
r
th
a
n
co
m
p
a
r
i
s
o
n
ci
t
y
av
e
r
a
g
e
Re
s
t
a
u
r
a
n
t
:
Pa
l
o
Al
t
o
is
12
%
be
l
o
w
co
m
p
a
r
i
s
o
n
ci
t
y
av
e
r
a
g
e
Me
n
l
o
Pa
r
k
Re
d
w
o
o
d
Ci
t
y
Sa
n
t
a
Cl
a
r
a
Mo
u
n
t
a
i
n
Vi
e
w
L
o
s
Al
t
o
s
H
a
y
w
a
r
d
Ge
n
e
r
a
l
Co
m
m
e
r
c
i
a
l
1
1
6
.
6
2
14
4
.
3
4
11
7
.
7
4
75
.
7
4
15
6
.
6
6
72
.
2
3
87
.
9
2
Re
s
t
a
u
r
a
n
t
6
9
6
.
0
8
1,
2
1
6
.
8
8
1,
1
2
8
.
4
0
71
8
.
4
8
71
8
.
4
8
28
8
.
9
0
66
0
.
8
0
Pa
l
o
Al
t
o
Ne
i
g
h
b
o
r
i
n
g
Co
m
m
u
n
i
t
i
e
s
8.h
Packet Pg. 227
AT
T
A
C
H
M
E
N
T
H:
NE
I
G
H
B
O
R
I
N
G
AG
E
N
C
Y
IN
F
O
R
M
A
T
I
O
N
MO
N
T
H
L
Y
RE
S
I
D
E
N
T
I
A
L
SE
W
E
R
UT
I
L
I
T
Y
BI
L
L
:
FI
S
C
A
L
YE
A
R
20
2
3
Ag
e
n
c
y
Co
s
t
A
g
e
n
c
y
Co
s
t
Pa
l
o
Al
t
o
RW
Q
C
P
Se
w
e
r
s
h
e
d
Sa
n
Jo
s
e
Pl
a
n
t
Se
w
e
r
s
h
e
d
Pa
l
o
Al
t
o
$
4
4
.
6
2
C
u
p
e
r
t
i
n
o
$
5
8
.
3
0
Mo
u
n
t
a
i
n
Vi
e
w
$
5
0
.
1
0
S
a
n
Jo
s
e
$
4
5
.
4
9
Lo
s
Al
t
o
s
(N
o
t
e
1)
$
4
2
.
0
5
M
i
l
p
i
t
a
s
$
6
2
.
0
7
Lo
s
Al
t
o
s
Hi
l
l
s
$1
3
6
.
9
2
S
a
n
t
a
Cl
a
r
a
$
4
6
.
8
2
EP
A
S
D
$
5
0
.
0
0
Su
n
n
y
v
a
l
e
Pl
a
n
t
Se
w
e
r
s
h
e
d
St
a
n
f
o
r
d
N
/
A
S
u
n
n
y
v
a
l
e
$
5
7
.
1
9
No
t
e
1.
Lo
s
Al
t
o
s
fe
e
is
ap
p
r
o
x
i
m
a
t
e
d
as
fo
l
l
o
w
s
:
[$
2
8
3
.
9
9
/
y
e
a
r
ba
s
e
ch
a
r
g
e
+
$2
.
2
8
/
u
n
i
t
* av
e
r
a
g
e
of
92
un
i
t
s
/
y
e
a
r
fo
r
si
n
g
l
e
fa
m
i
l
y
re
s
i
d
e
n
t
i
a
l
]
/1
2
mo
n
t
h
s
=a
p
p
x
$4
2
.
0
5
/
m
o
n
t
h
.
8.h
Packet Pg. 228
AT
T
A
C
H
M
E
N
T
H:
NE
I
G
H
B
O
R
I
N
G
AG
E
N
C
Y
IN
F
O
R
M
A
T
I
O
N
,
CO
N
T
.
MO
N
T
H
L
Y
RE
S
I
D
E
N
T
I
A
L
SE
W
E
R
UT
I
L
I
T
Y
BI
L
L
:
FI
S
C
A
L
YE
A
R
20
2
3
Ag
e
n
c
y
Co
s
t
A
g
e
n
c
y
Co
s
t
Si
l
i
c
o
n
Va
l
l
e
y
Cl
e
a
n
Wa
t
e
r
Pl
a
n
t
Se
w
e
r
s
h
e
d
Re
d
w
o
o
d
Ci
t
y
$
8
9
.
2
8
H
a
r
b
o
r
In
d
u
s
t
r
i
a
l
SM
D
$
5
3
.
7
5
We
s
t
Ba
y
Sa
n
i
t
a
r
y
Di
s
t
r
i
c
t
$
1
0
6
.
6
7
F
a
i
r
Oa
k
s
SM
D
$
8
4
.
5
8
Sa
n
Ca
r
l
o
s
$
1
1
6
.
7
7
O
a
k
Kn
o
l
l
s
SM
D
$
1
2
8
.
7
5
Be
l
m
o
n
t
$1
2
8
.
3
1
K
e
n
s
i
n
g
t
o
n
Sq
u
a
r
e
SM
D
$
1
3
7
.
5
0
Em
e
r
a
l
d
La
k
e
SM
D
$
1
4
2
.
9
2
D
e
v
o
n
s
h
i
r
e
CS
D
$
1
3
5
.
0
0
Em
e
r
a
l
d
La
k
e
He
i
g
h
t
s
SM
D
$
1
4
2
.
9
2
E
d
g
e
w
o
o
d
SM
D
$
1
3
7
.
9
2
Sc
e
n
i
c
He
i
g
h
t
s
CS
D
$
1
8
2
.
9
2
SM
D
= Sa
n
Ma
t
e
o
Co
u
n
t
y
Ad
m
i
n
i
s
t
e
r
e
d
Se
w
e
r
Ma
i
n
t
e
n
a
n
c
e
Di
s
t
r
i
c
t
CS
D
= Sa
n
Ma
t
e
o
Co
u
n
t
y
Ad
m
i
n
i
s
t
e
r
e
d
Co
u
n
t
y
Sa
n
i
t
a
t
i
o
n
Di
s
t
r
i
c
t
8.h
Packet Pg. 229
City of Palo Alto (ID # 14826)
City Council Staff Report
Report Type: Action Items Meeting Date: 12/5/2022
City of Palo Alto Page 1
Summary Title: 1700 Embarcadero Road: New Automobile Dealership
Title: PUBLIC HEARING / QUASI-JUDICIAL. 1700 Embarcadero Road [21PLN-
00191]: Consideration of a Site and Design Review, Design Enhance
Exception, Variance and Off-Street Loading Space Modification to Allow the
Demolition of a Vacant Restaurant and the Construction of a new two-Story
31,000 Square Foot Automobile Dealership. The PTC and the ARB
Recommend Approval of the Project. Environmental Assessment: Addendum
to a Mitigated Negative Declaration. Zoning District: CS(D)(AD) Service
Commercial (Site & Design Review / Automobile Dealership Combining
Districts).
From: City Manager
Lead Department: Planning and Development Services
Recommendation
Adopt the Record of Land Use Action approving a new car dealership and requests for a Site
and Design, Variance, and Design Enhancement Exception based on findings and subject to the
conditions of approval contained in Attachment B.
Executive Summary
The project seeks to redevelop the subject parcel, which includes the former Ming’s restaurant
building. The applicant, Swickard Auto Group, proposes to demolish the existing building to
construct a new two-story Mercedes-Benz automobile dealership. The project includes the
design and construction of a new multi-use (bicycle & pedestrian) path along East Bayshore
Road and Embarcadero Road. The new path will eliminate a gap identified in the City’s Bicycle
and Pedestrian Transportation Plan.
The applicant requests the following:
• Site and Design approval for the construction of a single building and ancillary site
improvements near the City’s Baylands Preserve.
9
Packet Pg. 230
City of Palo Alto Page 2
• Variance approval to allow a deviation from the required parking lot shading
requirement due to the shape of the subject parcel and easements precluding the
planting of canopy trees.
• Design Enhancement Exception (DEE) approval to allow a greater building setback from
East Bayshore Road and Embarcadero Road
The purpose of this report is for the City Council to consider the applicant’s requests, the
previous public hearing meeting materials (staff reports and meeting minutes), written
correspondence, and findings for the project. This report elaborates on issues identified as
concerns through the review process related to the proposed bicycle path, parking lot shading,
setbacks, and adjacency to the Baylands Preserve.
On October 26, 2022, the Planning and Transportation Commission (PTC) recommended that
the City Council adopt the Site and Design Review findings. On November 3, 2022, the
Architectural Review Board (ARB) recommended that the City Council approve the project.
Background
Prior City Reviews & Action
There have been two previous attempts to develop the subject property with an automobile
dealership. The initial applicant withdrew and sold the property following the City Council
direction for project modifications in June 2016. A subsequent owner received approval for a
rezone and development entitlement on June 24, 2019. However, the owner ultimately sold the
property to the current owner. Attachment D includes links to the previous meetings and
minutes held for the subject property.
Planning & Transportation Commission
The PTC conducted a duly noticed public hearing on October 26, 2022, on the Site and Design
Review and Variance applications within its purview. The PTC unanimously recommended
approval of these applications, consistent with staff findings, recommending modifications to
the draft Record of Land Use Action (ROLUA) conditions (shown as strikeout and underline in
Attachment B). Specifically, these modifications related to improvements on adjacent property,
a storm drain easement and extent of repairs necessary to address any damage from
construction on public streets. A member of the Palo Alto Bicycle Advisory Committee (PABAC)
spoke in favor of the inclusion of a Class I multi-use path in the project, while a neighboring
property owner spoke regarding the potential acoustic impacts from the car wash facility.
Architectural Review Board
The ARB reviewed the current project twice, most recently on November 3, 2022. In previous
meetings, the ARB discussed the bicycle path, parking lot shading, plant palette, and
architectural materials. The ARB unanimously recommended approval of the project consistent
with staff findings, recommending modifications to the ROLUA conditions (shown as underlined
text in Attachment B). Specifically, these modifications are necessary for the applicant to
9
Packet Pg. 231
City of Palo Alto Page 3
confirm certain architectural and landscape details with the ARB Ad Hoc Subcommittee. In
addition, conditions of approval were added addressing loading/unloading and ensuring that
the project would complete an acoustic analysis to comply with the City’s noise requirements.
The ARB heard testimony regarding acoustic impacts from the car wash facility.
Discussion
The project site (site) consists of a single parcel (2.54 acres). The site is located on the southeast
corner of Embarcadero Road and East Bayshore Road (see location map, Attachment A). The
site has a Comprehensive Plan (Comp Plan) land use designation of Service Commercial, and the
Comp Plan identifies the site as within the “East Bayshore Employment Center.” Zoning for the
site is Commercial Service (CS) with Site and Design Review (D) and Automobile Dealership (AD)
combining districts. The site is located within the City’s Baylands Master Plan (Privately Owned
Lands) and is subject to its design guidelines. The applicant also owns the adjacent Audi
dealership (1730 Embarcadero Road).
A portion of the site is developed with a single-story commercial building with 15,207 square
feet of floor area built in 1968, formerly the Ming’s Restaurant, and a large surface parking lot.
Prior evaluation of the site determined that the building is not considered historic. The existing
architecture of the building is characteristic of mid-century modern architecture with some roof
elements reminiscent of an Asian style, the cuisine of the former restaurant.
The site includes an approximate 80-foot-wide easement area along East Bayshore Road to
accommodate overhead high-voltage electric transmission lines parallel to East Bayshore Road,
and a sub-surface storm drain line. Surface improvements, such as landscaping, driveways, and
parking, are allowed within the easement; however, there are restrictions on the height of any
new improvements, including trees. Mature Chinese Elms are currently located under the high-
voltage electric transmission lines.
Neighborhood Setting and Character
The project is located within the Baylands Master Plan Area in an area designated as “Privately
Owned Lands.” This is an urbanized built-out area that includes office buildings and automobile
dealerships. The property does not directly abut the Baylands preservation property (former
ITT, Inc. lands) but is visible from the Renzel Trail within the Baylands. See plans for
photographs of surrounding areas (Attachment F).
Most sites in the vicinity are zoned Research, Office and Limited Manufacturing (ROLM) with
the Automobile Dealership (AD) Combining District. The ROLM allowable Floor Area Ratio (FAR)
is 0.4:1, whereas the AD Combining District allows a 0.6:1 FAR for automobile dealerships. The
area within the ROLM district is generally characterized by two-story buildings surrounded by
parking lots with large street-facing setbacks. The Pacific Gas & Electric (PG&E) easement along
9
Packet Pg. 232
City of Palo Alto Page 4
East Bayshore includes tall towers carrying high-voltage transmission electric lines. One tower is
located on the property at the Embarcadero Road and East Bayshore Road intersection.
Proposed Project
The applicant proposes to demolish the existing building and surface parking lot. In its place,
the applicant would construct a new two-story Mercedes-Benz automobile dealership building.
Access to the site will include two-way driveways from East Bayshore and Embarcadero Road.
Customer, employee, inventory, and display parking will be located along the west, south, and
eastern portions of the property in a tandem parking configuration. An existing driveway
connection between the subject property and the Audi dealership would remain in the rear.
The Mercedes-Benz dealership would include 31,195 square feet of space for a showroom,
sales and administrative offices, vehicle servicing areas, parts storage, car wash, and
recycling/solid waste enclosure areas. The 4,499 square foot covered service drive would be
exempted under the Palo Alto Municipal Code (PAMC) section 18.30(F)(a)(3)(b) from floor area
calculations. The total floor area represents a 0.28:1 Floor Area Ratio where 0.6:1 is permitted.
A single-lane automated car wash facility would be located along the south elevation of the
building towards the rear. A single-vehicle display pad is proposed to be located adjacent to the
utility tower at the front corner of the property.
Summary of Key Issues
During the PTC and ARB public hearings, there were discussions and comments regarding the
project’s compliance with the PAMC, achieving Comprehensive Plan goals and objectives, and
achieving the goals of the Baylands Master Plan.
Bicycle path
There is a gap in the City’s bicycle network at this location. At the recommendation of the City,
the project includes a multi-use path that can accommodate bicyclists and pedestrians along
Bayshore Road and Embarcadero Road. There are constraints in locating the pathway, such as
the existing electrical utility easement and limitations on vertical features within the easement;
the location of the electrical transmission tower and its maintenance parking space; existing
mature street trees; the need to have native and drought tolerant landscaping; and the
project’s objective in having locations for display and inventory merchandise to support the
viability of the automobile dealership.
Initially, the project did not include the bicycle path. Staff and the ARB commented that the
previously approved project included a multi-use pathway and stressed that the project should
include the pathway. The ARB went further to suggest that a row of parking be removed to
accommodate both the existing trees and the pathway. Another reason to incorporate a multi-
use path is to meet the City’s Transportation Demand Management (TDM) requirements.
Because the dealership is an auto-oriented use that uniquely requires car trips to access the site
9
Packet Pg. 233
City of Palo Alto Page 5
for repair services, the potential to reduce single-occupancy car trips by service customers does
not exist. As a result, the project cannot meet the City’s TDM policy to reduce car trips by 20%.
In addition, the site is not well served by public transportation.
In response to these comments, the revised plans include a 10-foot-wide multi-use path along
East Bayshore Road and an eight-foot path along Embarcadero Road. To accommodate this
path, 11 trees are proposed for removal. Only one of these trees is considered “protected”
pursuant to PAMC Chapter 8.10.020. Twenty new trees are proposed along the street frontage.
One existing Chinese elm tree will remain. No onsite parking would need to be removed to
accommodate the path. The incorporation of the multi-use path is consistent with the City’s
Palo Alto Bicycle & Pedestrian Transportation Plan and would be acceptable from a staff
perspective as an alternative method to meet the TDM policy.
PTC members were concerned about the loss of the mature trees but were reassured other
trees would be planted as replacements. Ultimately, the PTC endorsed the proposal citing the
TDM requirements and overall benefits of the pathway. The ARB likewise supported the
concept and included a condition of approval enabling an ARB Ad Hoc Subcommittee to view
detailed drawings of the multi-use path.
Parking Lot Shading
PAMC 18.54 (Parking Facility Design Standards) includes landscaping requirements for parking
lots. One of the requirements pertains to tree canopies that result in 50% shading of parking lot
surface areas within 15 years. Prior automobile dealership proposals on this site have struggled
to meet this standard but accomplished it. Parking lot areas include parking spaces and drive
aisles. Automobile dealerships typically have larger parking lot areas that include customer and
employee parking as well as inventory to be sold. Prior proposals for this site included parking
structures and automated parking solutions that consolidated inventory and employee parking,
leaving a smaller footprint for customer parking at the perimeter of the dealership.
During the first ARB meeting, parking shading requirements were discussed, and the applicant
responded with a plan that increased the overall shading to 41% from 38% despite the removal
of trees along the frontage to accommodate the multi-use path.
The East Bayshore Road and Embarcadero Road frontage is encumbered by several
underground and overground easements including PG&E and City infrastructure. The
easements account for over 26% of the property area. These easements restrict the placement
of structures and vegetation. Due to the special circumstances of these easements and the
shape of the lot, the applicant requests a variance from the parking lot shading requirements.
In the case of the subject property, the proposed use, which is allowed under the zoning code
cannot be established because of the easements. This is also further compounded by the shape
of the lot being a trapezoid, narrowing along Embarcadero Road causing an inefficient footprint
9
Packet Pg. 234
City of Palo Alto Page 6
for the building. The neighboring Audi and Honda dealerships do not have the same physical
limitations as the subject site. The project demonstrates that the parking lot shading
requirement can be met for the remainder of the parking areas except for the portions
encumbered by the PG&E easements.
The PTC and the ARB supported the variance request, citing the easements as the main
constraint. The ARB added a condition of approval to add smaller trees where feasible to
further add more shading for the parking lot along East Bayshore Road.
Setbacks
Due to the utility easement along East Bayshore Road, the proposed building has a large
setback and the developer requests to deviate from the “build-to-line” setback, which
encourages buildings be placed closer to the street. The proposed setback of 89 feet (with five-
foot roof overhang) is consistent with the surrounding development and outside of the 80-foot-
wide easement. However, the existing Audi showroom is closer to the street at 18’-10”.
The CS zoning development standards require a 0-10-foot setback along the street and a “build-
to-line” setback of 50% of the front setback and 33% of the street side setback. The build-to
setback is typically found along commercial corridors such as El Camino Real. In the context of
the project, this site is one of two properties zoned CS district surrounded by properties zoned
ROLM and a non-residential PC. The proposed setback is inconsistent with the CS zoning front
setback development standard (0’ to 10’), hence a DEE has been requested. While the
proposed setback is inconsistent with the code, these setbacks are consistent with surrounding
development, except for the Audi showroom, which is closer to the street. All other dealership
proposals have been able to make the findings for approval of the Design Enhancement
Exception.
Both the PTC and the ARB supported the DEE request for the project.
Adjacency to the Baylands
Since the project is located within the Baylands, the following are policies from the master plan
that affect the site:
• Be sure any future development is consistent with the Comprehensive Plan and
continues to receive extensive design review utilizing the Site and Design Review
Process and the Site Assessment and Design Guidelines Palo Alto Nature Preserve.
During the June 2022 ARB meeting, the ARB recommended that the applicant consider
modifications and revisions so that the project would be consistent with the Design Guidelines.
The applicant responded by incorporating shades of green for the stucco elevations facing the
Baylands and increasing the wood paneling through the service drive. To further address any
potential views from the Baylands to the site, the applicant proposes to plant twelve native
trees in the Baylands adjacent to the 1730 Embarcadero Road and the neighboring office
building.
9
Packet Pg. 235
City of Palo Alto Page 7
Both PTC and the ARB acknowledged that the project was consistent with the Site Assessment
and Design guidelines noting that the project is low and horizontal and includes a variety of
materials and colors that complement the Baylands.
Policy Implications
The proposed project is on balance consistent with the City’s Comprehensive Plan. With an
approval of the Variance and the DEE, the project is consistent with the zoning code.
Timeline
With the adoption of the ROLUA, the project can commence construction with the approval of
a building permit. The entitlements would expire within two years unless construction has
commenced.
Stakeholder Engagement
The Palo Alto Municipal Code requires notice of this public hearing to be published in a local
paper and mailed to owners and occupants of property within 600 feet of the subject property
at least ten days in advance. Notice of a public hearing for this project was published in the
Daily Post on November 25, 2022, which is 10 days in advance of the meeting. Postcard mailing
occurred on November 23, 2022, which is 12 in advance of the meeting.
Public Comments
A representative for 2465 East Bayshore Road communicated with city staff regarding the
potential acoustic impacts associated with the project’s car wash facility. The project’s car wash
facility will need to comply with the City’s noise regulations contained in PAMC Chapter 9.
Conditions of approval and a mitigation measure will ensure compliance with these regulations.
In addition, after consultation with the applicant and the neighbor, the applicant has agreed to
install a quieter drying system that would meet the City’s noise regulations. The ROLUA includes
a condition of approval to ensure the installation of this quieter system.
Resource Impact
While economic factors are not taken into consideration by advisory Boards and Commissions
for discretionary projects; automobile dealerships often bring in important sales tax revenue to
cities.
Environmental Review
The subject project has been assessed in accordance with the authority and criteria contained
in the California Environmental Quality Act (CEQA), the State CEQA Guidelines, and the
environmental regulations of the City. The project site was the subject of a prior application
that was covered by 1700-1730 Embarcadero Road Auto Dealership Project Initial Study-
9
Packet Pg. 236
City of Palo Alto Page 8
Mitigated Negative Declaration (IS-MND) (State Clearinghouse #2018072009) adopted in May
2019.1
In accordance with Section 15164 of the CEQA Guidelines, a lead agency (Palo Alto) must
prepare an addendum to a previously certified EIR or adopted negative declaration if some
changes or additions are necessary but none of the conditions described in Section 15162
calling for preparation of a subsequent EIR or negative declaration have occurred. Under
Section 15162(a), where an EIR or negative declaration has been certified for a project, no
subsequent EIR or negative declaration shall be prepared for the project unless the lead agency
determines, on the basis of substantial evidence in light of the whole record, that there are
substantial changes in the project or circumstances or substantially important new information
that will cause the project to have significant new impacts or substantially increase previously
identified significant impacts.
The addendum for the proposed project was prepared in accordance with relevant provisions
of CEQA and the CEQA Guidelines. It describes the proposed revisions to the project and
compares the revised project’s impacts to those identified in the 1700-1730 Embarcadero Road
Auto Dealership Project IS-MND. The analysis demonstrates that the revised project does not
require the preparation of a subsequent or supplemental IS-MND. Most mitigation measures
required of the 2019 project are required for the current project.
Attachments:
Attachment9.a: Attachment A: Location Map (PDF)
Attachment9.b: Attachment B: Draft Record of Land Use Action (DOCX)
Attachment9.c: Attachment C: Zoning Comparison Table (DOCX)
Attachment9.d: Attachment D: Prior Hearing Actions (DOCX)
Attachment9.e: Attachment E: Applicant's Response Letter (PDF)
Attachment9.f: Attachment F: Project Plans and CEQA (DOCX)
1 1700-1730 Embarcadero Road Auto Dealership Project IS-MND: https://www.cityofpaloalto.org/News-
Articles/Planning-and-Development-Services/1700-1730-Embarcadero-Road-18PLN-0018619PLN-00291
9
Packet Pg. 237
3.a
Packet Pg. 57
9.a
Packet Pg. 238
Page 1 of 24
ACTION NO. 2022-____
RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE ACTION
FOR 1700 EMBARCADERO ROAD: SITE AND DESIGN REVIEW, DESIGN
ENHANCEMENT EXCEPTION, VARIANCE (21PLN-00191)
On ____________, 2022, the City Council of the City of Palo Alto approved a Site and Design
Review and a Design Enhancement Exception to allow the demolition of an existing 15,207 square foot
vacant restaurant building and the construction of a two-Story 31,195 square foot Mercedes Benz
automobile dealership. In approving the application, the Council make the following findings,
determination, and declarations:
SECTION 1. Background. The City Council of the City of Palo Alto (“City Council”) finds,
determines, and declares as follows:
A. Eric Iverson on behalf of Swickard Auto Group, Inc, property owner, has requested
the City’s approval of a development project that includes Site and Design Review and Design
Enhancement Exception to allow for the demolition of existing structures and the construction of a
two-story automobile dealership (“The Project”).
B. The project site includes a single parcel (APN 008-03-084) of 2.54 acres in size. The site
is currently developed with an existing single-story 15,207 square-foot vacant restaurant. The site
contains and is accessible to existing utilities. The site includes an 80-foot utility easement along East
Bayshore Road. The site is designated on the Comprehensive Plan land use map as Service Commercial
and is located within the Service Commercial (CS) zoning district with Automobile Dealership (AD) and
Site and Design (D) combining districts.
The project includes demolition of the existing on-site structure and construction of a new two-story
automobile dealership with service facilities, including an attached automated car wash.
C. The Planning and Transportation Commission (Commission) reviewed and
recommended approval of the Project on October 26, 2022. The Commission’s recommendations are
contained in CMR#14824 and the attachments to it.
The Architectural Review Board (ARB) reviewed and recommended approval of the Project on
November 3, 2022.
D. On December 5, 2022, the City Council held a duly noticed public hearing, at which
evidence was presented and all persons were afforded an opportunity to be heard in accordance with
the Palo Alto Municipal Code and the Council’s Policies and Procedures.
SECTION 2. Environmental Review. The City, as the lead agency for the Project, has
determined that the project is subject to environmental review under provisions of the California
9.b
Packet Pg. 239
Page 2 of 24
Environmental Quality Act (CEQA) under Guideline section 15070, Decision to Prepare a Negative or
Mitigated Negative Declaration. An Initial Study/Mitigated Negative Declaration was prepared in
January 2019 for a project (18PLN-0189) and identified potentially significant impacts with the
implementation of the project. Those impacts can be reduced to a level of less than significant with the
incorporation of mitigation measures. On the basis of the whole record before it, there is no substantial
evidence that the project will have a significant effect on the environment and that the mitigated
negative declaration reflects the lead agency’s independent judgment and analysis. The City of Palo
Alto Planning and Development Services Department is the custodian of these documents. The
Negative Declaration was made available for public review beginning March 15, 2019 through April 22,
2019. The City Council adopted the Mitigated Negative Declaration on June 24, 2022, incorporating the
Mitigation and Monitoring Reporting Program.
It was determined that the current project (21PLN-00191) does not present the circumstances pursuant
to CEQA Guidelines 15162 to warrant the completion of a subsequent Mitigated Negative Declaration
or an Environmental Impact Report, and therefore, an Addendum to the previously adopted Mitigated
Negative Declaration suffices. Pursuant to CEQA Guidelines 15164 the addendum need not be
circulated. However, the addendum shall be considered with the adopted Mitigated Negative
Declaration.
The City Council hereby approves the Addendum to the Mitigated Negative Declaration and
incorporates the Mitigation and Monitoring Report attached as Exhibit 1 into the Record of Land Use.
SECTION 3. Site and Design Review objectives.
The design and architecture of the proposed improvements, as conditioned, comply with the Site and
Design Objectives as required in Chapter 18.30.060(G) of the PAMC.
A.Objective (a): To ensure construction and operation of the use in a manner that
will be orderly, harmonious, and compatible with existing or potential uses of adjoining or nearby sites.
The project includes sufficient façade articulation and material changes along Embarcadero Road and
East Bayshore Road. A variety of glass, metal, and stucco materials with muted and darker colors will
make the building complement the surrounding. As conditioned, the project will include a logistics plan
to coordinate construction activity and limit disruptions to neighboring properties. Currently, two other
automobile dealerships operate in the area. The project is designed to have necessary deliveries and
parking occur onsite so that no spillover of activity to the streets or neighboring properties is
anticipated. As conditioned, the lighting of the project will not spill over to adjoining areas.
B.Objective (b): To ensure the desirability of investment, or the conduct of business,
research, or educational activities, or other authorized occupations in the same or adjacent areas.
The project proposes a business that is allowed in the zoning district and is an established business
type in the area. The design of the project complements the other surrounding buildings and does not
detract from the use of the Baylands recreational area. A component of the project includes the
construction of a bicycle path that would provide a safe connection between the existing bicycle lanes
and the Bay Trail.
9.b
Packet Pg. 240
Page 3 of 24
C.Objective (c): To ensure that sound principles of environmental design and
ecological balance shall be observed.
The project is consistent with the Baylands design guidelines. Lighting is designed and conditioned to
not shine onto the adjacent properties. Windows are designed to avoid bird-strikes. The project will
implement green building measures as required by the Palo Alto Municipal Code. The existing building
will be deconstructed to the highest level feasible to recycle as many of the materials as possible. The
proposed dealership maintains a low profile and clean lines so as not to impose the surrounding
building and area. the proposed building has a full-height landscaped wall feature that wraps around
the southwest corner of the building and full-height window panels to let natural light in to further
promote sound principles of environmental design and ecological balance. It utilizes reclaimed wood
siding to minimize the use of natural resources.
D.Objective (d): To ensure that the use will be in accord with the Palo Alto
Comprehensive Plan.
The project is consistent with the following Comprehensive Plan Goals and Policies:
Service Commercial: Facilities providing citywide and regional services and relying on customers
arriving by car. These uses do not necessarily benefit from being in high-volume pedestrian areas such
as shopping centers or Downtown. Typical uses include auto services and dealerships, motels,
lumberyards, appliance stores, and restaurants, including fast service types. In almost all cases, these
uses require good automobile and service access so that customers can safely load and unload without
impeding traffic. In some locations, residential and mixed-use projects may be appropriate in this land
use category. Examples of Service Commercial areas include San Antonio Road, El Camino Real, and
Embarcadero Road northeast of the Bayshore Freeway. Non-residential FARs will range up to 0.4.
Consistent with the Comprehensive Plan’s encouragement of housing near transit centers, higher-
density multi-family housing may be allowed in specific locations.
Policy L-1.3. Infill development in the urban service area should be compatible with its surroundings
and the overall scale and character of the city to ensure a compact, efficient development pattern.
Policy L-5.1. Foster compact Employment Districts developed in a way that facilitates transit, pedestrian
and bicycle travel. Provide mixed uses to reduce the number of auto trips.
Policy L-5.2. Provide landscaping, trees, sidewalks, pedestrian path, and connections to the citywide
bikeway system within Employment Districts. Pursue opportunities to include sidewalks, paths, low
water use landscaping, recycled water, and trees, and remove grass turf in renovation and expansion
projects.
Policy L-5.3. Design paths and sidewalks to be attractive and comfortable, and consistent with the
character of the area where they are located.
Policy L-5.4. Maintain the East Bayshore and San Antonio Road/Bayshore Corridor areas as diverse
business and light industrial districts.
Policy L-6.1. Promote high-quality design and site planning that is compatible with surrounding
development and public spaces.
9.b
Packet Pg. 241
Page 4 of 24
Policy L-6.3. Encourage bird-friendly design.
Policy L-6.6. Design buildings to complement streets and public spaces; to promote personal safety,
public health, and well-being; and to enhance a sense of community safety.
Policy T-1.17. Require new office, commercial and multi-family residential developments to provide
improvements that improve bicycle and pedestrian connectivity as called for in the 2012 Palo Alto
Bicycle + Pedestrian Transportation Plan.
SECTION 4. Architectural Review Findings.
1.The design is consistent with applicable provisions of the Palo Alto
Comprehensive Plan, Zoning Code, coordinated area plans (including compatibility requirements), and
any relevant design guides.
This finding can be made in the affirmative because the project is consistent with the following
Comprehensive Plan goals and policies:
Comprehensive Plan Goal/Policy Consistency
Service Commercial: Facilities providing
citywide and regional services and relying on
customers arriving by car. These uses do not
necessarily benefit from being in high volume
pedestrian areas such as shopping centers or
Downtown. Typical uses include auto services
and dealerships, motels, lumberyards,
appliance stores and restaurants, including
fast service types. In almost all cases, these
uses require good automobile and service
access so that customers can safely load and
unload without impeding traffic. In some
locations, residential and mixed-use projects
may be appropriate in this land use category.
Examples of Service Commercial areas include
San Antonio Road, El Camino Real and
Embarcadero Road northeast of the Bayshore
Freeway. Non-residential FARs will range up to
0.4. Consistent with the Comprehensive Plan’s
encouragement of housing near transit
centers, higher density multi-family housing
may be allowed in specific locations.
The project proposes a new Mercedes Benz
automobile dealership. The project is
consistent with the uses described in the
Service Commercial land use designation.
Policy L-1.3: Infill development in the urban
service area should be compatible with its
surroundings and the overall scale and
character of the city to ensure a compact,
efficient development pattern.
The project is on land that already has
development and is consistent with the
surrounding development pattern, including
larger buildings and larger street setbacks.
9.b
Packet Pg. 242
Page 5 of 24
Comprehensive Plan Goal/Policy Consistency
Policy L-5.2 Provide landscaping, trees,
sidewalks, pedestrian path and connections to
the citywide bikeway system within
Employment Districts. Pursue opportunities to
include sidewalks, paths, low water use
landscaping, recycled water and trees and
remove grass turf in renovation and expansion
projects.
A bicycle path will be constructed along East
Bayshore Road and Embarcadero Road.
Consistent with the City’s Bicycle and
Pedestrian Transportation Plan, the existing
bicycle lanes on Geng Road connect to the Bay
Trail. The proposed bicycle path would
provide a safe connection where one does not
exist currently.
Policy L-5.3. Design paths and sidewalks to be
attractive and comfortable and consistent
with the character of the area where they are
located.
The bicycle path will be designed to fit with
the character of the surrounding.
Policy L-5.4. Maintain the East Bayshore and
San Antonio Road/Bayshore Corridor areas as
diverse business and light industrial districts.
The former restaurant will be demolished,
and, in its place, a new automobile dealership
will operate, which will complement the
diverse businesses within the district.
Policy L-6.1. Promote high-quality design and
site planning that is compatible with
surrounding development and public spaces.
The project uses a variety of materials such as
stucco, metal and glass. These materials use
muted and darker colors in a way that is
consistent with the surrounding uses and the
Baylands Design Guidelines. The 80-foot
utility easement along East Bayshore limits
the site in design and landscaping, however,
these materials complement a design that
includes variegated facades. The project’s
design provides the appropriate transitions
between the site and adjacent buildings. As
conditioned, the project will have the
appropriate transition to the Baylands.
Policy L-6.3. Encourage bird-friendly design.
The project includes bird-safe glazing for
windows.
Policy L-6.6. Design buildings to complement
streets and public spaces; to promote
personal safety, public health and wellbeing;
and to enhance a sense of community safety.
Frontages for the project include East
Bayshore Road and Embarcadero Road. Both
frontages include building facades that
provide interest using materials, colors and
elevations that include visual relief.
Policy T-1.17. Require new office, commercial
and multi-family residential developments to
As proposed, the project will implement a
bicycle path along the street frontages. The
9.b
Packet Pg. 243
Page 6 of 24
Comprehensive Plan Goal/Policy Consistency
provide improvements that improve bicycle
and pedestrian connectivity as called for in the
2012 Palo Alto Bicycle + Pedestrian
Transportation Plan.
proposed bicycle path would provide a safe
connection where one does not exist
currently. This would connect with the overall
city bicycle system and the greater Baylands
bicycle network.
The use complements the existing automobile dealerships along Embarcadero Road and is a permitted
use within the land use district. The project includes a bicycle path along East Bayshore Road and
Embarcadero Road that would provide a connection between the existing bicycle lanes and the Bay
Trail system. The project includes a typical automobile dealership design with its inventory and
customer parking surrounding the dealership building. The project proposes to deviate from the “build-
to-line” setback requirement for East Bayshore Road and Embarcadero Road and the tree shade canopy
requirements for parking facilities through the Design Enhancement Exception and Variance process.
2.The project has a unified and coherent design, that:
a.creates an internal sense of order and desirable environment for occupants,
visitors, and the general community,
b.preserves, respects and integrates existing natural features that contribute
positively to the site and the historic character including historic resources of the area when relevant,
c.is consistent with the context-based design criteria of the applicable zone district,
d.provides harmonious transitions in scale, mass and character to adjacent land
uses and land use designations,
e.enhances living conditions on the site (if it includes residential uses) and in
adjacent residential areas.
This finding can be made in the affirmative. The project includes two driveways (one from East
Bayshore Road and one from Embarcadero Road). Vehicular access is provided around the perimeter
of the site, allowing for trash pick-up, deliveries, and general access around the property. The driveway
in front of the showroom creates a better overall circulation pattern because instead of vehicles being
forced onto the roadway, vehicles being serviced or displayed can be moved onsite without ever
leaving the site. The design of the buildings convey they are automobile dealerships and do not appear
to portray a different type of use. The entries to the sites are distinctive and attractive with landscaping
that is appropriate to the Baylands as well as consistent with the design of the buildings. While the
street trees along East Bayshore Road are being removed for the bicycle path, the bicycle path provides
a separated connection from the street to other areas within the City’s bicycle network. Additional
trees will be planted to replace those removed. While the rear of the site is not abutting the Baylands,
the applicant proposes 12 native trees in the Baylands along the boundary of the adjacent parcels to
enhance visual screening. The site’s large setbacks are consistent with the surrounding development
pattern and these setbacks help with the streetscape perception of the massing of the buildings.
9.b
Packet Pg. 244
Page 7 of 24
The project is consistent with the following context-based design criteria:
1. Pedestrian and Bicycle Environment
The design of new projects shall promote pedestrian walkability, a bicycle friendly environment,
and connectivity through design elements
The project will provide a new bicycle path along the street frontages. This will include a rest area
for cyclists with benches. The bicycle path will separate the bicyclists from the street lanes for
added safety and reduction in conflict points.
2. Street Building Facades
Street facades shall be designed to provide a strong relationship with the sidewalk and the street
(s), to create an environment that supports and encourages pedestrian activity through design
elements
A request of the project is to have an exception from the “build-to-line” setback along
Embarcadero and East Bayshore. Both frontages are impacted by an 80-foot utility easement
parallel with East Bayshore that prohibits any building placement or structure/vegetation over 15
feet within the easement area. The area is categorized by large street setbacks. The proposed
project’s setbacks are consistent with the surrounding. The design of the building including a
façade with visual interest and use of a variety of materials with dark and muted colors.
A bicycle path will be constructed along East Bayshore and Embarcadero Road. Consistent with the
City’s Bicycle and Pedestrian Transportation Plan, the existing bicycle lanes on Geng Road connect
to the Bay Trail. The proposed bicycle path would provide a safe connection where one does not
exist currently. In front of the project will include a rest area for cyclists with benches.
3. Massing and Setbacks
Buildings shall be designed to minimize massing and conform to proper setbacks
The project meets the required setbacks or seeks relief from the setbacks to comply with easement
requirements and to be consistent with the surrounding properties. Relief is sought for the “build-
to-line” setback along Embarcadero Road and given the opportunities and constraints of the site,
adherence to the requirement does not create a better project layout. Additionally, the project
includes varied materials such as metal, stucco, glass with contrasting colors providing visual
interest. The two-story building is horizontally oriented consistent with the Baylands design
guidelines.
4. Low Density Residential Transitions
Where new projects are built abutting existing lower scale residential development, care shall be
taken to respect the scale and privacy of neighboring properties
The project is not adjacent to any residential areas.
9.b
Packet Pg. 245
Page 8 of 24
5. Project Open Space
Private and public open space shall be provided so that it is usable for the residents and visitors of
the site
The project includes an outdoor area on the ground floor facing East Bayshore Road as well as in
front of the building along Embarcadero Road. In addition, the project provides a new bicycle path
along the streets and a rest area with benches.
6. Parking Design
Parking shall be accommodated but shall not be allowed to overwhelm the character of the project
or detract from the pedestrian environment
The project includes a typical design for automobile dealerships with its inventory and customer
parking surrounding the dealership building. The parking is mostly arranged in tandem
configuration.
7. Large Multi-Acre Sites
Large sites (over one acre) shall be designed so that street, block, and building patterns are
consistent with those of the surrounding neighborhood
The proposed setbacks for the project are consistent with other large sites within the vicinity. The
setbacks for the surrounding buildings are large and the buildings are spread out over the site.
8. Sustainability and Green Building Design
Project design and materials to achieve sustainability and green building design should be
incorporated into the project
The project will be consistent with the City’s Green Building Ordinance and be consistent with Cal
Green Tier 2.
3. The design is of high aesthetic quality, using high quality, integrated materials
and appropriate construction techniques, and incorporating textures, colors, and other details that are
compatible with and enhance the surrounding area.
The project includes a single building using muted and complementary colors in conjunction with the
execution of the mixture of metal, stucco and glass applied to a façade with variegated elevations that
enhance the building and complements the surrounding.
4. The design is functional, allowing for ease and safety of pedestrian and bicycle
traffic and providing for elements that support the building’s necessary operations (e.g. convenient
vehicle access to property and utilities, appropriate arrangement and amount of open space and
integrated signage, if applicable, etc.).
With an automobile dealership, it is expected that vehicles will be entering and exiting the site
providing potential conflicts with pedestrians and cyclists. The site is adjacent to the Baylands which is
a large and popular recreational area. The project includes the construction of a new bicycle path along
9.b
Packet Pg. 246
Page 9 of 24
East Bayshore Road and Embarcadero Road. The bicycle path will separate pedestrians and cyclists
from the street adding a level of safety and improving sight awareness for users of potential conflict
areas such as the driveways. Onsite circulation is provided along the perimeter of the site and includes
two loading spaces. Landscaping is provided along the perimeter of the site as well as along the
buildings. The location of the 80-foot utility easement limits the amount and the type of landscaping
that can be provided along East Bayshore Road and affects a small portion of Embarcadero Road
frontage at the intersection where the electric transmission tower is located.
5. The landscape design complements and enhances the building design and its
surroundings, is appropriate to the site’s functions, and utilizes to the extent practical, regional
indigenous drought resistant plant material capable of providing desirable habitat that can be
appropriately maintained.
Landscaping is provided along the perimeter of the site as well as along the buildings. The landscape
palette uses drought tolerant and regional species. The location of the 80-foot utility easement limits
the amount and the type of landscaping that can be provided along East Bayshore Road and affects a
small portion of Embarcadero Road at the intersection where the electric transmission tower is located.
Vegetation can be no taller than 15-feet within these areas. The landscaping palette embraces the
Baylands and many of the plants were chose because they were on the Santa Clara Valley Water District
approved plant list, bay-friendly rated plant list and other plants from the Santa Clara Valley Urban
Runoff Pollution Prevention Program. Specifically, the plants that directly interface with the Baylands
are only native species and are complementary of the Baylands, including Oak, Buckeye, Blue
Elderberry, California Sagebrush and Toyon.
6. The project incorporates design principles that achieve sustainability in areas
related to energy efficiency, water conservation, building materials, landscaping, and site planning.
The project is consistent with the City’s Green Building ordinance and will comply with Cal Green Tier
2 requirements. Some examples include:
• Electric vehicle parking
• Cool roof
• Water reduction
• Recycled content
SECTION 5. Design Enhancement Exception Findings
1. There are exceptional or extraordinary circumstances or conditions applicable to
the property or site improvements involved that do not apply generally to property in the same zone
district.
The applicant requests a Design Enhancement Exception from the ‘build-to-setback’ for buildings on
site along East Bayshore Road and Embarcadero Road because of the location of the easements.
The subject property includes an 80-foot-wide utility easement with development constraints below
9.b
Packet Pg. 247
Page 10 of 24
and above ground along East Bayshore Road. The purpose of the easement is to allow for the
conveyance of high voltage electric power and stormwater for the region and for the City. Pacific Gas
& Electric holds rights to the easement as well as the City. An electric transmission tower is located
near the corner of the property. This easement precludes the placement of any building and any
structure height to 15 feet.
East Bayshore Road
Adhering to the “build-to-line” setback requirements is not possible for East Bayshore Road.
Embarcadero Road
Based on the “build-to-line” requirement along Embarcadero Road, the project would need at least
126 feet of the building to be set near the property line. The site has an approximate 252-foot frontage
along Embarcadero Road and therefore would require at least 126 lineal feet of the building to be
placed between zero and 10 feet of the property line. The utility easement along East Bayshore causes
the building edge to be located approximately 65 feet from the corner of the property at Embarcadero
Road and East Bayshore Road because of the shape of the property. The remaining distance between
the easement edge and the north property line is 189 feet and that leaves enough distance to meet
the requirement.
As mentioned previously, it is expected that the primary entrance for customers will be from
Embarcadero Road. A driveway cannot be located too close to the intersection and therefore the
proposed location is the farthest from the intersection and a safe distance from the existing adjacent
Audi driveway. The proposed driveway location creates efficiencies for the site because the driveway
entry allows for efficient circulation for service trucks such as for recycling and waste pick up. Some of
the required parking for the project is located within the utility easement along East Bayshore Road.
The driveway in front of the showroom creates a better overall circulation pattern because instead of
vehicles being forced onto the roadway, vehicles being serviced or displayed can be moved onsite
without ever leaving the site.
2. The granting of the application will enhance the appearance of the site or
structure, or improve the neighborhood character of the project and preserve an existing or proposed
architectural style, in a manner which would not otherwise be accomplished through strict application
of the minimum requirements of this title (Zoning) and the architectural review findings set forth in
Section 18.76.020(d).
The easements preclude any building to be placed within the easement area. Additionally, no
structures such as light fixtures 15 feet can be placed within the easement area. In recent years, Pacific
Gas & Electric due to experiences with wildfires has become more restrictive on the placement of
vegetation near their transmission facilities, requiring trees to be shorter than 15 feet.
The building is designed with visually interesting facades and materials to complement other
development within the area. The project proposes plantings of trees were feasible and appropriate
including around the perimeter of the site.
3. The exception is related to a minor architectural feature or site improvement that
will not be detrimental or injurious to property or improvements in the vicinity and will not be
9.b
Packet Pg. 248
Page 11 of 24
detrimental to the public health, safety, general welfare or convenience.
The surrounding development includes large street setbacks, so the exception will not create
consistency or compatible issues with the neighboring properties. Trees and other plantings will occur
at the perimeter of the site and within the easement and bicycle path area where feasible.
SECTION 6. Variance Findings
1.Because of special circumstances applicable to the subject property, including
(but not limited to) size, shape, topography, location, or surroundings, the strict application of the
requirements and regulations prescribed in this title substantially deprives such property of privileges
enjoyed by other property in the vicinity and in the same zoning district as the subject property. Special
circumstances that are expressly excluded from consideration are:
A.The personal circumstances of the property owner, and
B.Any changes in the size or shape of the subject property made by the property
owner or his predecessors in interest while the property was subject to the same zoning designation.
The applicant requests a variance from PAMC 18.54 (Parking Lot Shading) requirements due to the
shape of the subject property and the location of easements that preclude the planting of vegetation
meeting the requirements of the zoning code. In the case of the subject property, the proposed use,
which is allowed under the zoning code cannot be established because of the easements. This is also
further compounded by the shape of the lot being a trapezoid, narrowing along Embarcadero Road
causing an inefficient footprint for the building and function of the site as an automobile dealership.
The neighboring Audi and Honda dealerships do not have the same physical limitations as the subject
site. The project demonstrates that the parking lot shading requirement can be met for the remainder
of the parking areas except for the portions encumbered by easements.
The subject property is trapezoidal with its narrow dimension occurring along Embarcadero Road. A
tall high-voltage transmission tower is located at the corner of the property at East Bayshore Road and
Embarcadero Road. Easements on the subject property represent 26% of the property area. The
subject property includes easements (overhead, surface and sub-surface) that precludes buildings from
locating within the easement area. The easement has limitations on minor structures such as light
fixtures and vegetation. In recent years, Pacific Gas & Electric due to experiences with wildfires has
become more restrictive on vegetation near their transmission facilities, requiring trees to be shorter
than 15 feet. In comparison, the other two automobile dealerships on the same block are standard
shaped lots. The other two automobile dealership properties do not have the same impediments.
The project includes a parking lot within the easement area that includes both customer parking and
inventory for sale as exterior display models. It is also not possible to plant trees that would support a
large enough canopy to provide shading of the surface parking lot within the easement. Additionally,
the project includes a bicycle path along East Bayshore Road and Embarcadero Road, which
necessitates the elimination of existing mature street trees. The project proposes trees that will fit the
requirements prescribed for the easement. The project also proposes to plant 12 trees off-site within
the Baylands.
Automobile dealerships typically function either with a larger building footprint with inventory stored
9.b
Packet Pg. 249
Page 12 of 24
within the building envelop or as a smaller building footprint with inventory stored uncovered in
surface parking lots on site. This project is the latter, which by design is a smaller massed building that
is more compatible with the Baylands and its surroundings. Prior automobile dealership proposals on
this site have been the former, which have pushed compatibility thresholds. The project includes both
customer and inventory parking in tandem configuration. Parking lot landscape standards are met for
landscaping around the perimeter of the parking areas and the required landscape islands. Trees have
been planted to the extent feasible and consistent with easement restrictions. Another constraint of
the site is its trapezoid shape. The narrow side of the property includes the easement, further
compounding the ability to site a building, meet setbacks, avoid easements, meet stormwater
regulations, and provide efficient circulation that would allow the automobile dealership to function.
The project includes a perimeter driveway to allow for circulation for fire department access around
the buildings. The driveway also serves as important circulation component for the site’s operations,
keeping vehicles off the street. The 80-foot utility easement precludes the planting of trees with
canopies significant enough to meet the City’s shading requirements. The addition of the bicycle path
along East Bayshore and Embarcadero also takes out area that could be used to plant trees that would
provide shading in these parking/driveway areas.
The project proposes 41% canopy shading for the entire site, where 50% is required. Without the
limitations discussed, the project would be able to meet the requirement. The project demonstrates
meeting the requirement on portions of the parking areas not encumbered by the easements.
There is recognition of the importance of both the bicycle path and the City’s urban forest canopy.
However, given the limitations of the utility easement and the need for a bicycle connection in a
location within the Baylands, the development of the bicycle path outweighs the tree canopy
requirement. The building’s design along East Bayshore Road is of high-quality making up for the loss
of tree canopies. The project provides replacement trees onsite as well as off-site within the Baylands.
2.The granting of the application shall not affect substantial compliance with the
regulations or constitute a grant of special privileges inconsistent with the limitations upon other
properties in the vicinity and in the same zoning district as the subject property, and
The project will comply with other development standards except for the ‘build-to-setbacks’ because
of the easement restrictions and modifications to one of the two required on-site loading spaces. The
granting of the variance would not be considered a grant of special privileges since other automobile
dealerships can function without hardship from a physical constraint such as the subject site.
3.The granting of the application is consistent with the Palo Alto Comprehensive
Plan and the purposes of this title (Zoning), and
The project is consistent with the Palo Alto Comprehensive Plan as discussed in Section 4 of this
record of land use action and the use is consistent with the purposes of the zoning code.
4.The granting of the application will not be detrimental or injurious to property or
improvements in the vicinity, will not be detrimental to the public health, safety, general welfare, or
convenience.
9.b
Packet Pg. 250
Page 13 of 24
The granting of the variance would not negatively affect public health, safety, general welfare, or
convenience or be detrimental to the property or improvements in the vicinity in that the project
proposes to construct a multi-use pathway eliminating a gap in the city’s bicycle network and
providing a safe connection to the Baylands. The project also provides additional trees and plantings
offsite in the Baylands that would create shading and additional habitat for animals.
SECTION 7. Conditions of approval
PLANNING DIVISION
1.CONFORMANCE WITH PLANS. Construction and development shall conform to the approved plans
entitled, "Mercedes Benz of Palo Alto,” stamped as received by the City on July 20, 2022 (revised
August 10, 2022) on file with the Planning Department, 250 Hamilton Avenue, Palo Alto, California
except as modified by these conditions of approval.
2.BUILDING PERMIT. Apply for a building permit and meet any and all conditions of the Planning,
Fire, Public Works, and Building Departments.
3.BUILDING PERMIT PLAN SET. All Department conditions of approval for the project shall be printed
on the plans submitted for building permit.
4.PROJECT MODIFICATIONS: All modifications to the approved project shall be submitted for review
and approval prior to construction. If during the Building Permit review and construction phase, the
project is modified by the applicant, it is the responsibility of the applicant to contact the Planning
Division/project planner directly to obtain approval of the project modification. It is the applicant’s
responsibility to highlight any proposed changes to the project and to bring it to the project
planner’s attention.
5.PROJECT EXPIRATION. The project approval shall automatically expire after two years from the
original date of approval, if within such two-year period, the proposed use of the site or the
construction of buildings has not commenced pursuant to and in accordance with the provisions of
the permit or approval. Application for a one-year extension of this entitlement may be made prior
to the expiration. (PAMC 18.77.090(a)).
6.INDEMNITY: To the extent permitted by law, the Applicant shall indemnify and hold harmless the
City, its City Council, its officers, employees and agents (the “indemnified parties”) from and against
any claim, action, or proceeding brought by a third party against the indemnified parties and the
applicant to attack, set aside or void, any permit or approval authorized hereby for the Project,
including (without limitation) reimbursing the City for its actual attorneys’ fees and costs incurred
in defense of the litigation. The City may, in its sole discretion, elect to defend any such action with
attorneys of its own choice.
7.DEVELOPMENT IMPACT FEES: Development Impact Fees, currently estimated in the amount of
$1,368,305.87 shall be paid prior to the issuance of the related building permit.
8.IMPACT FEE 90-DAY PROTEST PERIOD. California Government Code Section 66020 provides that a
9.b
Packet Pg. 251
Page 14 of 24
project applicant who desires to protest the fees, dedications, reservations, or other exactions
imposed on a development project must initiate the protest at the time the development project
is approved or conditionally approved or within ninety (90) days after the date that fees,
dedications, reservations or exactions are imposed on the Project. Additionally, procedural
requirements for protesting these development fees, dedications, reservations and exactions are
set forth in Government Code Section 66020. IF YOU FAIL TO INITIATE A PROTEST WITHIN THE 90-
DAY PERIOD OR FOLLOW THE PROTEST PROCEDURES DESCRIBED IN GOVERNMENT CODE SECTION
66020, YOU WILL BE BARRED FROM CHALLENGING THE VALIDITY OR REASONABLENESS OF THE
FEES, DEDICATIONS, RESERVATIONS, AND EXACTIONS. If these requirements constitute fees, taxes,
assessments, dedications, reservations, or other exactions as specified in Government Code
Sections 66020(a) or 66021, this is to provide notification that, as of the date of this notice, the 90-
day period has begun in which you may protest these requirements. This matter is subject to the
California Code of Civil Procedures (CCP) Section 1094.5; the time by which judicial review must be
sought is governed by CCP Section 1094.6.
9.MITIGATION MONITORING AND REPORTING PROGRAM. The Mitigation Monitoring and Reporting
Program (MMRP) associated with the project and attached here as Exhibit 1 is incorporated by
reference and all mitigation measures shall be implemented as described in said document. Prior
to requesting issuance of any related demolition and/or construction permits, the applicant shall
meet with the Project Planner to review and ensure compliance with the MMRP, subject to the
satisfaction of the Director of Planning and Development Services.
a.The owner or designee shall complete an acoustical report satisfying Mitigation
Measure N-1 to the satisfaction of the Director of Planning and Development Services
or designee prior to issuance of certificate of occupancy.
b.Staff shall ensure that the neighbor at 2465 East Bayshore Road has an opportunity to
review the acoustical report.
10.FINAL INSPECTION: A Planning Division Final inspection will be required to determine substantial
compliance with the approved plans prior to the scheduling of a Building Division final. Any revisions
during the building process must be approved by Planning, including but not limited to; materials,
landscaping and hard surface locations. Contact your Project Planner, Sheldon S. Ah Sing at
Sheldon.ahsing@cityofpaloalto.org to schedule this inspection.
11.BIRDS. The owner or designee shall evaluate migratory patterns affecting the site prior to submittal
of a building permit and if any trees are found to be recurring nesting sites, ensure installation of
replacement nesting facilities with replacement mature trees.
12.LIGHTING. The owner or designee shall ensure that light does not spill over the property lines from
the project. The owner or designee prior to building permit issuance provide information to the
satisfaction of the City that light levels do not exceed current lighting levels of surrounding
properties. One strategy could be that lighting levels shall be reduced during the nighttime period
to security levels (between 10pm and dawn or periods when the businesses are not in operation).
13.SIGNS. The owner or designee shall apply for approval of signs proposed for the site in accordance
with PAMC 16.20.020. Based on the submitted set of plans, the northwest elevation of the building
exceeds its allowance of sign area for wall signs. The owner or designee shall consider reducing the
9.b
Packet Pg. 252
Page 15 of 24
size of the signs to comply. Additional consideration shall be made to include protruding elements
to the freestanding signs for the Mercedes Benz logo so that the sign is not flat.
14.AUDI IMPROVEMENTS. The owner or designee shall demonstrate completeness of work on any
outstanding improvements for the Audi Dealership (1730 Embarcadero) prior to Planning final
inspection for the 1700 Embarcadero project.
15.CAR WASH EQUIPMENT: The owner or designee shall demonstrate installation of International
Drying Corporation “Stealth Predator Ultra-Quiet Drying System” (30 Horsepower model) (65 dBA
at 30 feet) to the satisfaction of the Planning Director or designee.
16.ARB AD HOC CONDITION: Prior to building permit issuance, the owner or designee shall
demonstrate to the Architectural Review Board Ad Hoc the following:
a.Clarifying cross-sections along the multi-use path to confirm elevations;
b.Showing more low-level plantings in between trees and consider other canopy trees
where feasible to increase shading, such as the addition of western redbuds to the
landscape fingers along East Bayshore Road;
c.Confirming that trees can be planted adjacent to the multi-use path;
d.Confirming that the building elevations along the west and northwest elevations include
the continuation of the ribbed metal paneling and also confirming the green colors.
17.LOADING. No loading or unloading of vehicles shall occur within the City right-of-way adjacent to
the property.
BUILDING DEPARTMENT
18.The owner or designee at building shall:
a.Demonstrate that electric vehicle parking counts comply with PAMC 16.14.430;
b.Demonstrate that electric vehicle accessible parking complies with CBC 11B, similar to
regular accessible parking;
c.Demonstrate accessible route from public sidewalk/bus stop to building entrance; and
d.Contact the Building Department for building permit submittal requirements
PUBLIC WORKS ENGINEERING DEPARTMENT
PUBLIC WORKS APPLICATIONS, FORMS, AND DOCUMENTS. Applicant shall be advised that all forms,
applications, and informational documents related to Public Works Engineering conditions can be
found at the following link:
https://www.cityofpaloalto.org/Departments/Public-Works/Engineering-Services/Forms-and-
Permits
19.GRADING PERMIT. A Grading Permit is required per PAMC Chapter 16.28. The permit application
and all applicable documents (see Section H of application) shall be submitted to Public Works
Engineering. ADVISORY -- A grading permit only authorizes grading and storm drain improvements;
therefore, the following note shall be included on each grading permit plan sheet: “THIS GRADING
PERMIT WILL ONLY AUTHORIZE GENERAL GRADING AND INSTALLATION OF THE STORM DRAIN
SYSTEM. OTHER BUILDING AND UTILITY IMPROVEMENTS ARE SHOWN FOR REFERENCE
INFORMATION ONLY AND ARE SUBJECT TO SEPARATE BUILDING PERMIT APPROVAL.”
9.b
Packet Pg. 253
Page 16 of 24
20.GEOTECHNICAL ENGINEER STATEMENT. The grading plans shall include the following statement
signed and sealed by the Geotechnical Engineer of Record: “THIS PLAN HAS BEEN REVIEWED AND
FOUND TO BE IN GENERAL CONFORMANCE WITH THE INTENT AND PURPOSE OF THE
GEOTECHNICAL REPORT.”
21.RETAINING WALLS. The grading plan shall clearly indicate all site retaining walls needed along the
project to accommodate the fill. These walls shall be located completely onsite, and at a minimum
five feet from the existing street trees to be protected.
22.STORM DRAIN EASEMENT. The developer shall relocate the existing 21-inch storm drain line, away
from the proposed foundation, and a new 10-foot wide (minimum) storm drain easement shall be
dedicated to the City.
23.FLOOD ZONE. This project is in a Federal Emergency Management Agency (FEMA) Special Flood
Hazard Area and shall comply with the requirements in Palo Alto Municipal Code Chapter 16.52
and the California Residential Code Section 322 (CRC 322).
24.CONDITIONAL LETTER OF MAP REVISION (CLOMR-F). Evidence that this document has been
executed shall be provided prior to building permit issuance.
25.OUTSIDE AGENCY APPROVAL. Developer shall provide documentation that shows approval from
the owner(s) of any easements that are affected by the project, including any easements that are
to be abandoned.
26.STREETWORK PERMIT. The applicant shall obtain a Streetwork Permit from the Department of
Public Works for all offsite and public improvements.
27.ENCROACHMENT PERMIT. Prior to any work in the public right-of-way, the applicant shall obtain
an encroachment permit from the Public Works Department for any work that encroaches onto
the City right-of-way.
28.LOGISTICS PLAN. A construction logistics plan shall be provided addressing all impacts to the public
and including, at a minimum: work hours, noticing of affected businesses, construction signage,
dust control, noise control, storm water pollution prevention, job trailer, contractors’ parking, truck
routes, staging, concrete pours, crane lifts, scaffolding, materials storage, pedestrian safety, and
traffic control. All truck routes shall conform to the City of Palo Alto’s Trucks and Truck Route
Ordinance, Chapter 10.48, and the route map, which outlines truck routes available throughout the
City of Palo Alto.
29.STORM WATER POLLUTION PREVENTION PLAN (SWPPP). The proposed development will disturb
more than one acre of land. Accordingly, the applicant will be required to comply with the State of
California’s General Permit for Storm Water Discharges Associated with Construction Activity. This
entails filing a Notice of Intent to Comply (NOI), paying a filing fee, and preparing and implementing
a site-specific storm water pollution prevention plan (SWPPP) that addresses both construction-
stage and post-construction BMP’s for storm water quality protection.
9.b
Packet Pg. 254
Page 17 of 24
30. STORMWATER POLLUTION PREVENTION. All improvement plan sets shall include the “Pollution
Prevention – It’s Part of the Plan” sheet.
31. C.3 THIRD-PARTY CERTIFICATION. Applicant shall provide certification from a qualified third-party
reviewer that the proposed permanent storm water pollution prevention measures comply with
the requirements of Provision C.3 and PAMC Chapter 16.11. The third-party reviewer shall provide
the following documents to Public Works prior to building permit approval:
a. Stamped and signed C.3 data form (September 2019 version) from SCVURPPP.
https://scvurppp.org/wp-
content/uploads/2019/10/SCVURPPP_C3_Data_Form_September2019_fillable_final_9-24-
19.pdf
b. Final stamped and signed letter confirming which documents were reviewed and that the
project complies with Provision C.3 and PAMC 16.11.
32. C.3 STORMWATER AGREEMENT. The applicant shall enter into a Stormwater Maintenance
Agreement with the City to guarantee the ongoing maintenance of the permanent storm water
pollution prevention measures. The City will inspect the treatment measures yearly and charge an
inspection fee. The agreement shall be executed by the applicant team prior to building permit
approval.
Note: Any revisions to the C.3 stormwater pollution prevention measures that are necessary to
facilitate installation of said measures will be addressed in the agreement and the accompanying
exhibits, executed by the City, and recorded with the County.
33. C.3 FINAL THIRD-PARTY CERTIFICATION PRIOR TO OCCUPANCY. Within 45 days of the installation
of the required storm water treatment measures and prior to the issuance of an occupancy permit
for the building, the third-party reviewer shall submit to the City a certification verifying that all the
permanent storm water pollution prevention measures were installed in accordance with the
approved plans.
34. PAVEMENT RESTORATION. The applicant shall restore the pavement along the entire project
frontage, curb-to-curb, by performing a 3.5” grind and overlay. The exact restoration limits will be
determined by the Public Works Inspector or designee, once the resulting road condition is known
following completion of heavy construction activities and utility lateral installations, at minimum
the extent will be the project frontage.
35. IMPERVIOUS SURFACE AREA. The project will be creating or replacing 500 square feet or more of
impervious surface. Accordingly, the applicant shall provide calculations of the existing and
proposed impervious surface areas with the building permit application. The Impervious Area
Worksheet for Land Developments form and instructions are available at the Development Center
or on our website. To determine the impervious surface area that is being disturbed, provide the
quantity on the site plan.
36. PRIOR TO PUBLIC WORKS FINAL/ACCEPTANCE.
a. STORM DRAIN LOGO -- The applicant is required to paint “No Dumping/Flows to Matadero
Creek” in blue on a white background adjacent to all onsite storm drain inlets. The name of the
creek to which the proposed development drains can be obtained from Public Works
9.b
Packet Pg. 255
Page 18 of 24
Engineering. Stencils of the logo are available from the Public Works Environmental Compliance
Division, which may be contacted at (650) 329-2598. Include the instruction to paint the logos
on the construction grading and drainage plan.
b. RECORD DRAWINGS -- At the conclusion of the project applicant shall provide digital as-
built/record drawings of all improvements constructed in the public right-of-way or easements
in which the City owns an interest.
37. DEDICATION EASEMENT. The owner or designee shall record an easement for dedication as
indicated on the project plans prior to issuance of building permits to the satisfaction of the Director
of Public Works or designee.
PUBLIC ART
38. IN-LIEU FEE. If the owner or designee chooses to pay to the public art fund in–lieu of commissioning
art on site, the funds must be received prior to the issuance of a building permit (See Condition #7).
TRANSPORTATION
39. EAST BAYSHORE ROAD / EMBARCADERO ROAD INTERSECTION. The existing pedestrian crossings
are non-Americans with Disabilities Act (ADA) compliant at East Bayshore Road/ Embarcadero Road
intersection. As part of the multi-use path construction, the owner or designee shall construct ADA
compliant pedestrian crossings and ramps at the East Bayshore Road/ Embarcadero Road
intersection. Pedestrian crossings and ramps shall meet the California Manual on Uniform Traffic
Control Devices (CA MUTCD) requirements. The owner or designee shall submit the site plan for
Office of Transportation approval before or during the building permit application.
40. MULTI-USE PATH. The owner or designee shall demonstrate that the multi-use path width is a
minimum of 10 feet in width along the property frontage.
41. BICYCLE RACKS. The owner or designee shall provide inverted-U bicycle racks instead of ‘wave’ style
bicycle racks.
WATER QUALITY
42. POLYCHLORINATED BIPHENYLS (PCBs). Since the project triggers PCBs, sampling as identified on
the “PCBs Planning Application Form,” then the project shall conduct representative sampling of
PCBs concentration in accordance with the “Protocol for Evaluating Priority PCBs-Containing
Materials before Building Demolition (2018).” The PCBs Application Package and other resources
are outlined at http://www.cityofpaloalto.org/pcbdemoprogram.
a. If the representative sample results or records DO NOT indicate PCB concentrations ≥50 ppm
in one or more “priority materials,” then the screening assessment is complete.
Applicant submits screening form and the supporting sampling documentation with the
demolition permit application. No additional action is required.
b. If the representative sample results or records DO indicate PCBs concentrations ≥50 ppm in one
or more “priority materials,” then the screening assessment is complete, but the Applicant
MUST also contact applicable State and Federal Agencies to meet further requirements.
Applicant submits screening form and the supporting sampling documentation with the
demolition permit application and must contacts the State and Federal Agencies as indicated
on Page 3 of the “PCBs Screening Assessment Form.”
9.b
Packet Pg. 256
Page 19 of 24
IMPORTANT: ADVANCED APPROVAL FROM THE UNITED STATES ENVIRONMENTAL PROTECTION
AGENCY (USEPA) OR OTHER STATE AGENCIES MAY BE REQUIRED PRIOR TO BUILDING DEMOLITION.
IT IS RECOMMENEDED THAT APPLICANTS BEGIN THE PCBs ASSESSMENT WELL IN ADVANCE OF
APPLYING FOR DEMOLITION PERMIT AS THE PROCESS CAN TAKE BETWEEN 1-3 MONTHS.
43.STORMWATER TREATMENT MEASURES. The following applies to the project:
a.All Bay Area Municipal Regional Stormwater Permit requirements shall be followed.
b.Refer to the Santa Clara Valley Urban Runoff Pollution Prevention Program C.3 Handbook
(download here: http://scvurppp-w2k.com/c3_handbook.shtml) for details.
c.For all C.3 features, vendor specifications regarding installation and maintenance should be
followed and provided to city staff. Copies must be submitted to Pam Boyle Rodriguez at
pamela.boylerodriguez@cityofpaloalto.org. Add this bullet as a note to the building plans.
d.Staff from Stormwater Program (Watershed Protection Division) may be present during
installation of stormwater treatment measures. Contact Pam Boyle Rodriguez, Stormwater
Program Manager, at (650) 329-2421 before installation. Add this bullet as a note to building
plans on Stormwater Treatment (C.3) Plan.
ZERO WASTE
Deconstruction and Construction Materials Management Requirements.
44.REQUIRED DECONSTRUCTION. In conformance with PAMC 5.24, deconstruction and source
separation are required for all residential and commercial projects where structures are being
completely removed, demolition is no longer allowed. Deconstruction takes longer than traditional
demolition, it is important to plan ahead.
45.SALVAGE SURVEY FOR REUSE. A Salvage Survey is required for deconstruction permit applications.
The survey shall be conducted by a City approved reuse vendor. The survey submittal shall include
an itemized list of materials that are salvageable for reuse from the project. The applicant shall
source separate and deliver materials for reuse. Certification is required indicating that all materials
identified in the survey are properly salvaged.
46.SOURCE SEPARATION FOR RECYCLING. The applicant shall source separate deconstruction
materials into specific categories for recycling. Additional staging areas for source separated
materials will need to be considered. All materials shall be delivered to one of the City approved
materials recovery facilities listed in Green Halo, all records shall be uploaded to
www.greenhalosystems.com.
For more information, refer to www.cityofpaloalto.org/deconstruction.
PUBLIC WORKS URBAN FORESTRY
47.TREE DAMAGE. Tree Damage, Injury Mitigation and Inspections apply to Contractor. Reporting,
injury mitigation measures and arborist inspection schedule (1-5) apply pursuant to Tree Technical
Manual, Section 2.20-2.30. Contractor shall be responsible for the repair or replacement of any
publicly owned or protected trees that are damaged during construction, pursuant to Title 8 of the
Palo Alto Municipal Code, and city Tree Technical Manual, Section 2.25.
48.GENERAL. The following general tree preservation measures apply to all trees to be retained: No
9.b
Packet Pg. 257
Page 20 of 24
storage of material, topsoil, vehicles, or equipment shall be permitted within the tree enclosure
area. The ground under and around the tree canopy area shall not be altered. Trees to be retained
shall be irrigated, aerated, and maintained as necessary to ensure survival.
49. EXCAVATION RESTRICTIONS APPLY (TTM, Sec. 2.20 C & D). Any approved grading, digging, or
trenching beneath a tree canopy shall be performed using ‘air-spade’ method as a preference, with
manual hand shovel as a backup. For utility trenching, including sewer line, roots exposed with
diameter of 1.5 inches and greater shall remain intact and not be damaged. If directional boring
method is used to tunnel beneath roots, Trenching and Tunneling Distance, shall be printed on the
final plans to be implemented by Contractor.
50. TREE PROTECTION VERIFICATION. Prior to any site work verification from the contractor that the
required protective fencing is in place shall be submitted to the Urban Forestry Section. The fencing
shall contain required warning sign and remain in place until final inspection of the project.
SECTION 8. Term of Approval.
1. Site and Design Approval. In the event actual construction of the project is
not commenced within two years of the date of council approval, the approval shall expire and be of
no further force or effect, pursuant to Palo Alto Municipal Code Section 18.82.080.
2. Design Enhancement Exceptions. The time limits for any Design
Enhancement Exceptions shall be the same as the time limits for the accompanying design review
approval.
3. Variance. The time limits for any Variance shall be the same as the time
limits for the accompanying design review approval.
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
_________________________ ____________________________
City Clerk Director of Planning and Development Services
APPROVED AS TO FORM:
___________________________
9.b
Packet Pg. 258
Page 21 of 24
Assistant City Attorney
PLANS AND DRAWINGS REFERENCED:
1. Those plans prepared by SPARC + titled “Mercedes Benz of Palo Alto”, consisting of 87 pages, dated
July 15, 2022, and received July 21, 2022 (revised August 10, 2022).
9.b
Packet Pg. 259
Page 22 of 24
Exhibit 1 Mitigation Monitoring and Reporting Program
The mitigation monitoring table lists those mitigation measures that would be included as conditions
of approval for the project. To ensure that the mitigation measures are properly implemented, a
monitoring program has been devised which identifies the timing and responsibility for monitoring
each measure.
Environmental
Impact Mitigation Measure Responsible for
Implementation
Timing of
Compliance
Oversight of
Implementation
BIOLOGICAL RESOURCES
BIO-2: Nesting Bird
Surveys and
Avoidance
Construction of the project, shall be
prohibited during the general avian nesting
season (February 1 – August 31), if feasible.
If nesting season avoidance is not feasible,
the applicant shall retain a qualified
biologist, as approved by the City of Palo
Alto, to conduct a preconstruction nesting
bird survey of adjacent street trees to
determine the presence/absence, location,
and activity status of any active nests. The
extent of the survey buffer area
surrounding the site shall be established by
the qualified biologist to ensure that direct
and indirect effects to nesting birds are
avoided. To avoid the destruction of active
nests and to protect the reproductive
success of birds protected by the MBTA and
CFGC, nesting bird surveys shall be
performed not more than 14 days prior to
scheduled vegetation clearance and
structure demolition. In the event that
active nests are discovered, a suitable
buffer (typically a minimum buffer of 50
feet for passerines and a minimum buffer
of 250 feet for raptors) shall be established
around such active nests and no
construction shall be allowed within the
buffer areas until a qualified biologist has
determined that the nest is no longer active
(i.e., the nestlings have fledged and are no
longer reliant on the nest). No ground
disturbing activities shall occur within this
buffer until the qualified biologist has
confirmed that breeding/nesting is
completed and the young have fledged the
nest. Nesting bird surveys are not required
for construction activities occurring
between August 31 and February 1.
Applicant or
designee/Construction
contractor
Prior to and
during
construction
CPA Planning
Department
CULTURAL RESOURCES
CR-1: Resource
Recovery Procedures.
In the event that archaeological or
paleontological resources are unearthed
during project construction, all earth-
disturbing work in the vicinity of the find
shall be temporarily suspended or
redirected until an archaeologist or
paleontologist has evaluated the nature
and significance of the find. If the discovery
Applicant or
designee/Construction
contractor
During
construction
CPA Planning
Department
9.b
Packet Pg. 260
Page 23 of 24
Environmental
Impact Mitigation Measure Responsible for
Implementation
Timing of
Compliance
Oversight of
Implementation
proves to be significant under CEQA,
additional work such as preservation in
place, archaeological data recovery, and/or
paleontological salvage shall occur as
required by the archeologist or
paleontologist in coordination with City
staff and descendants and/or stakeholder
groups, as warranted. After the find has
been appropriately treated, depending on
the nature of the discovery, work in the
area may resume. A Native American
representative shall be retained to monitor
mitigation work associated with Native
American cultural material.
CR-2: Human
Remains Recovery
Procedures
If human remains are unearthed, State
Health and Safety Code Section 7050.5
requires that no further disturbance shall
occur until the County Coroner has made
the necessary findings as to the origin and
disposition pursuant to the Public
Resources Code Section 5097.98. If the
remains are determined to be of Native
American descent, the coroner has 24
hours to notify the Native American
Heritage Commission.
Applicant or
designee/Construction
contractor
During
construction
CPA Planning
Department
TCR-1: Unanticipated
Discovery of Tribal
Cultural Resources
In the event that cultural resources of
Native American origin are identified during
construction, all earth disturbing work
within the vicinity of the find must be
temporarily suspended or redirected until
an archaeologist has evaluated the nature
and significance of the find and an
appropriate Native American
representative, based on the nature of the
find, is consulted. If the City determines
that the resource is a tribal cultural
resource and thus significant under CEQA, a
mitigation plan shall be prepared and
implemented in accordance with state
guidelines and in consultation with Native
American groups. The plan would include
avoidance of the resource or, if avoidance
of the resource is infeasible, the plan would
outline the appropriate treatment of the
resource in coordination with the
archeologist and the appropriate Native
American tribal representative.
Applicant or
designee/Construction
contractor
During
construction
CPA Planning
Department
GEOLOGY AND SOILS
GEO-1: Geotechnical
Design
Considerations
The recommendations included in the 2015
Geotechnical Investigation conducted by
Romig Engineers, Inc. (Appendix C) related
to soil engineering shall be incorporated
into the proposed project grading and
building plans. The recommendations are
related to:
Applicant or designee Prior to
building
permit
CPA Planning
Department
9.b
Packet Pg. 261
Page 24 of 24
Environmental
Impact Mitigation Measure Responsible for
Implementation
Timing of
Compliance
Oversight of
Implementation
Foundation design;
Surface improvements;
Slabs-on-grade;
Retaining walls;
Vehicle pavements; and,
Earthwork.
NOISE
N-1 Car Wash Noise
Reduction
Prior to operation of the car wash, the
project applicant shall implement the
following noise reduction measures to
ensure car wash noise complies with PAMC
Chapter 9.10:
Any measure or combination of
measures that would achieve
compliance, such as the following:
Doors enclosing the car wash be
sealed at all times when dryers are
operating; or
Housings or silencers shall be installed
on the dryers/blower fans; or
Noise attenuation mats shall be
installed on the interior of the car
wash tunnel; or
Dryers/blowers shall be installed as far
into the tunnel as feasible.
Applicant or designee Certificate of
Occupancy
CPA Planning
Department
TRIBAL CULTURAL RESOURCES
TCR-1: Unanticipated
Discovery of Tribal
Cultural Resources
In the event that cultural resources of
Native American origin are identified during
construction, all earth disturbing work
within the vicinity of the find must be
temporarily suspended or redirected until
an archaeologist has evaluated the nature
and significance of the find and an
appropriate Native American
representative, based on the nature of the
find, is consulted. If the City determines
that the resource is a tribal cultural
resource and thus significant under CEQA, a
mitigation plan shall be prepared and
implemented in accordance with state
guidelines and in consultation with Native
American groups. The plan would include
avoidance of the resource or, if avoidance
of the resource is infeasible, the plan would
outline the appropriate treatment of the
resource in coordination with the
archeologist and the appropriate Native
American tribal representative.
Applicant or designee
/ Construction
Contractor
During
Construction
CPA Planning
Department
9.b
Packet Pg. 262
ATTACHMENT C
ZONING COMPARISON TABLE
1700 Embarcadero Road, 21PLN-00191
Table 1: COMPARISON WITH CHAPTER 18.16 (CS DISTRICT) and CHAPTER 18.30(F) (AD Combining District)
Exclusively Non-residential Development Standards
Regulation Required Existing Proposed
Minimum Site Area, width and
depth
None
2.54 acres
2.54 acres
Minimum Front Yard
0-10 feet to create an
8-12 foot effective
sidewalk width (1), (2), (8)
37 feet 45’-6”
Rear Yard
None 154 feet 68’-8”
Interior Side Yard
None 52 feet 66’-8”
Street Side Yard None 87 feet 89’-3”
Min. yard for lot lines abutting
or opposite residential
districts or residential PC
districts
10 feet (2) Not applicable Not applicable
Build-to-lines
50% of frontage built
to setback on
Embarcadero Road
33% of side street built
to setback on Bayshore
Road (7)
Not applicable No Build-To proposed
Max. Site Coverage None
11% (12,207 sf) 33% (35,694 sf)
Max. Building Height 50 ft
33’-6” 26 feet to parapet
36 feet to sign element
Max. Floor Area Ratio (FAR) 0.4:1 (44,173 sf)
18.30(F)(a)(1)
0.2:1 Additional FAR
for Automobile
Dealership Showrooms
on the first floor. 0.6:1
(66,259 sf)
18.30(F)(a)(2)
Exclude service drives
(PAMC
18.30(F).050(a)(3)(b)
0.14.1 (15,207 sf) 1st floor: 25,099* sf
2nd floor: 5,715 sf
Trash enclosure: 381 sf
Showroom/Dealership
/Service: 0.29:1
(31,195 sf)*
*Includes 4,097 sf
showroom
**Excludes 4,499 sf
service drive
(1) No parking or loading space, whether required or optional, shall be located in the first 10 feet adjoining the street property line of
any required yard.
(2) Any minimum front, street side, or interior yard shall be planted and maintained as a landscaped screen excluding areas required for
access to the site. A solid wall or fence between 5 and 8 feet in height shall be constructed along any common interior lot line.
(6) The initial height and slope shall be identical to those of the most restrictive residential zone abutting the site line in question.
(7) 25 foot driveway access permitted regardless of frontage, build-to requirement does not apply to CC district.
9.c
Packet Pg. 263
Table 2: COMPARISON WITH CHAPTER 18.16 (CS DISTRICT) and CHAPTER 18.30(F) (AD Combining District)
continued
Exclusively Non-residential Development Standards
Topic Requirement Proposed
Hours of Operation
(18.16.040 (b))
Businesses with activities any time between the hours
of 10:00 p.m. and 6:00 a.m. shall be required to obtain
a conditional use permit. The director may apply
conditions of approval as are deemed necessary to
assure compatibility with the nearby residentially
zoned property
Compliant
Outdoor Sales and
Storage (18.16.060 (h))
(3)In the CS district, outdoor sales and display of
merchandise, and outdoor eating areas operated
incidental to permitted eating and drinking services
shall be permitted subject to the following regulations:
(A)Outdoor sales and display shall not occupy a
total site area exceeding the gross building floor area
on the site, except as authorized by a conditional use
permit.
(B)Areas used for outdoor sales and display of
motor vehicles, boats, campers, camp trailers, trailers,
trailer coaches, house cars, or similar conveyances shall
meet the minimum design standards applicable to off
street parking facilities with respect to paving, grading,
drainage, access to public streets and alleys, safety and
protective features, lighting, landscaping, and
screening.
(C)Exterior storage shall be prohibited, unless
screened by a solid wall or fence of between 5 and 8
feet in height.
Not Applicable because
the site is subject to the
AD combining district
Outdoor Sales and
Storage
(18.30(F).050(c)
(c)Outdoor Sales and Storage
Outdoor sales and display of automobiles and
merchandise shall be permitted subject to the following
regulations:
(1)Two automobile display pads shall be permitted
in the required setback area, including landscaped
areas, adjacent to a public right-of-way. A single
automobile display pad shall be no higher than eight
feet, measured to the highest point of the automobile
on the display pad, and the surface of the display pad
area shall be no larger than 175 square feet.
(2)Areas for outdoor sales and display of motor
vehicles, other than automobile display pads, shall
meet the minimum design standards applicable to off-
street parking facilities with respect to paving, grading,
drainage, safety and protective features, lighting, and
screening. Striping for parking stalls shall not be
required for auto display and storage areas.
(3)Exterior storage shall screened by a solid wall or
fence of between five and eight feet in height.
Compliant
9.c
Packet Pg. 264
Recycling Storage
(18.16.060 (i))
All new development, including approved
modifications that add thirty percent or more floor area
to existing uses, shall provide adequate and accessible
interior areas or exterior enclosures for the storage of
recyclable materials in appropriate containers. The
design, construction and accessibility of recycling areas
and enclosures shall be subject to approval by the
architectural review board, in accordance with design
guidelines adopted by that board and approved by the
city council pursuant to Section 18.76.020.
Recycling is at the rear
portion of the site.
Employee Showers
(18.16.060 (j))
Retail Services requires one (1) shower for 25,000-
49,999 sf
Not applicable to
Automobile Dealerships
Office Use Restrictions
(18.16.050)
Total floor area of permitted office uses on a lot shall
not exceed 25% of the lot area, provided a lot is
permitted between 2,500 and 5,000 sf of office use.
The maximum size may be increased with a CUP issued
by the Director.
Not applicable
18.16.080 Performance Standards. All development in the CS district shall comply with the performance
criteria outlined in Chapter 18.23 of the Zoning Ordinance, including all mixed use development
18.16.090 Context-Based Design Criteria. As further described in a separate attachment, development in a
commercial district shall be responsible to its context and compatible with adjacent development and shall
promote the establishment of pedestrian oriented design.
Table 3: CONFORMANCE WITH CHAPTER 18.52 (Off-Street Parking and Loading)
for Automobile Dealerships*
Type Required Existing Proposed
Vehicle Parking Outdoor vehicle display
3,078/500 = 6.16
spaces
Automobile Dealership
30,814/400 = 77.03
spaces
Total: 83 spaces
161 spaces
85 spaces
Bicycle Parking 1 per 10 employees
(100% short term)
None 4 spaces (40
employees)
Loading Space 2 loading spaces for
30,000 - 69,999 sf
None 2 spaces**
* On-site employee amenity space is exempted from the parking requirements
** Requires Director’s modification to required dimensions
9.c
Packet Pg. 265
Table 4: CONFORMANCE WITH CHAPTER 18.54 (Parking Facility Design Standards)
for Automobile Dealerships*
Regulation Required Proposed
Tree Canopy
and Sizes
Landscaping within surface parking areas shall include tree plantings designed
to result in 50 percent shading of parking lot surface areas within 15 years.
Trees required to meet any section of this title shall be a minimum fifteen
gallon size, and at least twenty-five percent (25%) shall be twenty-four-inch
box or larger. Fifty percent (50%) of shrubs shall be a minimum of five-gallon
size. Provided, in the Site and Design Review (D) combining district, the
minimum plant size requirements set forth in this section may be decreased,
as set forth in Chapter 18.30(G).
22,456 SF
canopy area
/
54,899 SF
drivable
area
41%
Perimeter
Landscaping
Each unenclosed parking facility shall provide a perimeter landscaped strip at
least five feet wide between and adjacent to a line defining the exterior
boundary of the parking area and the nearest adjacent property line, not
separated by a building.
Complies
Interior
Landscaping –
Amount
Required
Interior landscaping is required within the parking facility between the
perimeter landscaped area and the edge of pavement adjacent to any building
on the site. Each unenclosed parking facility shall provide a minimum of
interior landscaping.
Size of parking facility: >30,000 = min. 10% landscaping
Parking facility = 54,899 SF = min 5,473 SF landscaping
Complies
22,332 SF
9.c
Packet Pg. 266
Attachment D: Actions from prior Hearings
City Council:
20APL-00002, June 22, 2020 Appeal
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=77228
Upheld approval decision for 19PLN-00291
18PLN-00186, June 24, 2019:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=72062
Approval of project – Return to ARB for certain items (see 19PLN-00291)
15PLN-00394, June 6, 2016:
http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=52594
Was reviewed by ARB six times in 2015/2016; Reviewed by PTC on April 27,
2016; then referred back to ARB by Council, at which time the applicant
withdrew the application.
PTC:
21PLN-00191, October 26, 2022:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-
minutes/planning-and-transportation-commission/2022/ptc-10.26.2022-1700-embarcadero-
rd.pdf
https://www.youtube.com/watch?v=8dOA8_rtwWc&start=9084&width=420&height=315
Recommend approval to the City Council
18PLN-00186, March 27, 2019:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=70015
Recommend approval to City Council
ARB:
21PLN-00191, November 3, 2022 2nd Formal:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-
minutes/architectural-review-board/2022/arb-11.03.2022-1700-embarcadero-rd.pdf
https://www.youtube.com/watch?v=e8bh_gTAxCs
Recommend approval to the City Council
21PLN-00191, June 16, 2022 1st Formal:
https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-
minutes/architectural-review-board/2022/arb-06.16.2022-1700-embarcadero-rd.pdf
Continue to a date uncertain
19PLN-00291, March 5, 2020 2nd Formal:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=75555
9.d
Packet Pg. 267
Recommend approval to Director
December 19, 2019 1st Formal:
https://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=74447
Continue
18PLN-00186, June 6, 2019 3rd Formal:
http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=71733
Continue to date uncertain (no recommendation to City Council)
April 4, 2019 2nd Formal:
http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=70111
Continue
September 20, 2018 1st Formal:
http://www.cityofpaloalto.org/civicax/filebank/blobdload.aspx?BlobID=66721
Continue
9.d
Packet Pg. 268
July 15, 2022
City of Palo Alto
Department of Planning & Development Services
250 Hamilton Avenue
Palo Alto, CA 94301
Re: Proposed Mercedes-Benz Dealership
Project Description & Justification
1700 Embarcadero Road
Palo Alto, CA 94303
To Whom It May Concern:
Swickard Auto Group appreciates the feedback received at the June 16, 2022, ARB meeting.
In light of that feedback, we have had our architectural, engineering, and landscape
professionals revise the proposal to address as many of the concerns as possible. The gist of
the project remains the same; to de-construct the former Ming’s Restaurant building and
construct a new predominantly one-story Mercedes-Benz dealership including a sales and
service facility at 1700 Embarcadero Road. On site improvements are proposed to include
customer and employee parking spaces, inventory storage spaces, landscaping, a driveway
connection to the adjacent existing Audi dealership, solar canopies, and a dumpster enclosure.
The small scale of the building proposed with the project is specifically designed to serve the
surrounding community. An offsite multi-use path has been added to the proposal to replace an
existing sidewalk and solar canopies have been added to the shade a portion of the parking lot
between the existing Audi dealership and the proposed Mercedes-Benz building. Revised plans
are to be found in the link sent to the City and hard copies of plans can be provided as requested.
A synopsis of the changes found on the revised plans is as follows:
A. A multi-use path is now proposed along Embarcadero and East Bayshore to replace an
existing concrete sidewalk and trees. This multi-use path requires the dedication of 473
square feet of right-of-way as shown on Exhibit 2. It also results in a loss of 11 trees
which provide 794 square feet shade cover for the parking and vehicle storage areas.
9.e
Packet Pg. 269
As previously discussed, we remain extremely concerned about the safety of such a
multi-use path due to the conflicts with the vehicular driveways to the site and the
adjacency of the path to vehicular traffic. Our preference and recommendation remains
to preserve the existing sidewalk and street trees and for the City of Palo Alto to
construct on-street bike lanes within the current right-of-way.
B.The proposed shade cover over the proposed asphalt has been increased to 23,535
square feet. The total asphalt area on the lot is 56,892 square feet; however, 16,202
square feet of that area is within the PGE high voltage electricity easement where the
planting of new canopy trees is prohibited. Subtracting the PGE easement area leaves
40,690 square feet of asphalt with 23,535 square feet of cover which represents a 58%
shade coverage level which exceeds the 50% level of the code. Additionally, 6,870
square feet of solar canopy is proposed between the Mercedes-Benz and Audi buildings.
Of that amount, an additional 3,824 square feet of parking lot coverage or a total of 67%
of shade coverage over the non-PGE area. The PGE high voltage transmission easement
meets the definition of a unique circumstance that negatively impacts the site and
therefore meets the criteria of a variance. We are requesting a variance to the permit
the shade level as proposed on the resubmitted plans.
C.In addition to the additional trees provided to meet the shading requirements, two
species of trees were changed to meet the requests of the ARB. The non-native Ginkgo
Biloba trees were changed to native Western Redbud and the California Buckeye was
changed to Valley Oak. Additionally, while the site does not border the Baylands, an
additional planting area consisting of 12 trees and 14 evergreen shrubs is proposed on
Baylands to screen the proposed building as well as the existing neighboring office
building.
D.The service drive roll-up doors have been removed and it is now an open-air service
drive.
E.The reclaimed wood siding is now shown on both sides of the service drive. Additional
elevations and perspective drawings are included to graphicly show such.
F.On the rear elevation of the building, the black corrugated panel system has been greatly
reduced to minimally wrap the corner. The rear of the building is now painted 3 shades
of grey-green to match typical native vegetation. The color of the roof top screens has
been revised to a matching grey-green. A graphic rendering showing the existing and
proposed view of the Mercedes-Benz building from the trail in the Baylands shows that
9.e
Packet Pg. 270
even without the new landscaping, the view of the proposed building is 99% blocked
by existing vegetation.
G. The customer parking spaces have been better identified on the plans and are labeled
“CP”. There is customer parking on both sides of the service drive to accommodate
both sales and service customers.
H. The bicycle rack has been revised to a type that allows the front and rear wheels to be
locked to it as well as the frame of the bike.
I. Additional landscaping was included near the showroom glass to further limit bird
strikes. While a UV glass is proposed to limit such strikes, the actual manufacturer of
the glass has not been determined at this time due to global supply issues. The glass
manufacturer will be chosen based on availability closer to construction time. Adding
vinyl dots to the glass was deemed unfeasible due to the nature of the use of the building
as a vehicular showroom.
J. Three additional ideas from the ARB were evaluated but deemed not feasible to be part
of this project. One idea was to move the building toward the existing Audi building.
Moving the building that direction would result in the loss of the landscaping along that
side of the building and/or the loss of the solar canopies. It would also reduce the size
of the water quality sediment ponds located on that side of site. Those areas are not able
to be reduced due to code requirements. A second idea was to reduce the vehicle storage
along East Bayshore to relocate the bike path behind the existing landscaping. That
layout would result in a significant taking of property and create a project that is not
feasible to be built. Approximately 20 to 25 vehicle spaces would be lost. Any loss in
parking would jeopardize the loss of code required and/or manufacturer required onsite
vehicle storage spaces. The third idea was to create a green roof over part or all of the
building. While a green roof would help accomplish the goal of reducing the heat island
effect, it also limits the opportunity for future solar to be mounted on the roof. The
building is being built with the ability to add rooftop solar in the future. With an
unknown future of what climate change will bring, we believe having the option of solar
on the roof is critical to limit consumption of fossil fuels on site. To limit the heat island
effect, the building will have a white roof which has a surface temp of 80 degrees cooler
than a black roof and additional landscaping was added to the lot.
9.e
Packet Pg. 271
We believe the revised proposed project Site and Design further complies with the following
objectives from 18.82.060 PAMC:
a. To ensure construction and operation of the use in a manner that will be orderly,
harmonious, and compatible with existing or potential uses of adjoining or nearby sites.
The proposed Mercedes-Benz dealership will be consistent with the surrounding uses.
Professional offices are to the north and south of the project site. Medical offices are located
across Bayshore to the west of the dealership. The local Audi and Honda dealership are located
to the east of the proposed site. This proposed dealership will further extend the dealerships to
the East, continuing and further comingling the automobile dealership uses in the area,
providing an efficient area for the surrounding community.
b. To ensure the desirability of investment, or the conduct of business, research, or
educational activities or other authorized occupations, in the same or adjacent areas.
The proposed Mercedes-Benz dealership will further the desirability of investment by replacing
a dilapidated restaurant building with a modern, environmentally sensitive automobile
dealership. This will provide further consistency with the surrounding uses as it will continue
the row of automobile dealerships to the east of the site while raising the bar for environmentally
sensitive design. By developing such a facility, Swickard Auto Group hopes to further stimulate
the area for future investment and redevelopment.
c. To ensure that sound principles of environmental design and ecological balance shall be
observed.
The proposed Mercedes-Benz dealership utilizes sound principles of environmental design and
ecological balance by designing a building that is harmonious to the natural environment and
surrounding area. The existing building will be de-constructed to the highest level feasible to
recycle as many of the materials as possible. The proposed dealership maintains a low profile
and clean lines so as not to impose the surrounding building and area. The proposed building
also uses natural earth tone colors and natural materials. In addition, the proposed building has
a full height landscaped wall feature that wraps around the southwest corner of the building and
full height window panels to let natural light in to further promote sound principles of
environmental design and ecological balance. It utilizes reclaimed wood siding to minimize
the use of natural resources. Solar canopies are proposed between the Mercedes-Benz building
and the existing Audi building to minimize dependence on fossil fuels. The roof structure will
be built to support additional solar panels.
9.e
Packet Pg. 272
d. To ensure that the use will be in accord with the Palo Alto Comprehensive Plan.
The proposed Mercedes-Benz automobile dealership use is consistent with the Palo Alto
Comprehensive Plan. The proposed development continues the automobile dealership uses to
the East of the site and is consistent with the uses described in the Service Commercial land use
designation. The project is on land that already has development and is consistent with the
surrounding development pattern, including larger buildings and larger street setbacks.
Sincerely,
Eric Iversen
Director of Real Estate and Facilities
Swickard Auto Group
541.301.2748
9.e
Packet Pg. 273
Project Plans
In order to reduce paper consumption, a limited number of hard copy project plans are
provided to Board members for their review. The same plans are available to the public, at all
hours of the day, via the following online resources.
Environmental Document
An Addendum to the Mitigated Negative Declaration has been prepared for this project.
Directions to review Project plans and environmental documents online:
1.Go to: bit.ly/PApendingprojects
2.Scroll down to find “1700 Embarcadero Road” and click the address link
3.On this project-specific webpage you will find a link to the project plans and other
important information
Direct Link to Project Webpage:
https://www.cityofpaloalto.org/News-Articles/Planning-and-Development-Services/1700-
Embarcadero-21PLN-00191
Materials Boards:
Prior to the hearing, color and material boards will be available to view in the display case
outside of City Hall, on the exterior elevator near the corner of Hamilton Ave. and Bryant St.
For closer examination, this same board will be brought to chambers during the ARB hearing.
9.f
Packet Pg. 274
City of Palo Alto (ID # 14891)
City Council Staff Report
Meeting Date: 12/5/2022 Report Type: Action Items
City of Palo Alto Page 1
Title: Staff and the Council Sustainability and Climate Action (S/CAP) Ad Hoc
Committee Recommend That Council Review and Provide Feedback to Staff
on the Draft 2023-2025 S/CAP Work Plan and Direction on Governance of the
Work Plan THIS ITEM HAS BEEN CONTINUED TO A FUTURE MEETING
From: City Manager
Lead Department: Utilities
Recommendation
Staff and the Council Sustainability and Climate Action Plan (S/CAP) Ad Hoc Committee
recommend that Council:
1.Review and provide feedback to staff on the draft 2023-2025 S/CAP Work Plan
(Attachments A and B)
2.Provide direction on governance of the 2023-2025 S/CAP Work Plan
Executive Summary
On October 3, 2022, the City Council accepted the Sustainability and Climate Action
Plan (S/CAP) Goals and Key Actions (Staff Report 146061). That document lists the
detailed actions needed to achieve the City’s 80x30 goal,2 but does not provide
guidance on task prioritization or implementation timeline. The 2023-2025 S/CAP Work
Plan is meant to guide staff efforts on the S/CAP over the next three years by
prioritizing and providing more detail on implementation of the Key Actions accepted by
Council on October 3, 2022. The Work Plan is contingent on completion of
environmental review, which is underway and expected to come to Council for action in
spring 2023.
The draft 2023-2025 S/CAP Work Plan is split between a Climate Action section, which
focuses on work items that achieve the City’s 80x30 goal, and a Sustainability section,
which focuses on improving the City’s environmental impact in ways that are not
primarily focused on reducing greenhouse gas emissions, but focus on critically
important co-benefits that contribute to overall climate action.
1 Staff Report 14606 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-
minutes/city-council-agendas-minutes/2022/20220927/20220927pccsmlinked-amended-v2.pdf#page=79
2 Achieving 80% reductions in greenhouse gas emissions from 1990 levels by 2030.
10
Packet Pg. 275
City of Palo Alto Page 2
The Climate Action section focuses on launching higher potential, lower cost emissions
reduction programs, building community confidence in the S/CAP, and laying the
foundation for post-2025 work. The Sustainability section focuses on reducing waste,
creating a sustainable and holistically managed water system, adapting to a changing
climate, and enhancing the City’s thriving urban canopy.
Included in the draft 2023-2025 S/CAP Work Plan are:
• Priorities for 2023-2025 Climate Action work (Attachment A, Section 2.I, pg 3)
• 51 Climate Action work items (Attachment A, Section 2.III, pp 5-17) and 27
Sustainability work items (Attachment A, Section 3, pp 18-23)
• Policy guidelines for development of a Reliability and Resiliency Strategic Plan
(Attachment A, Appendix C, pg 29)
Policy guidelines for development of an Electric Vehicle Strategic Plan (Attachment A,
Appendix D, pg 30)
Background
Attachment C provides a detailed history of the S/CAP to date. Staff began California
Environmental Quality Act (CEQA) review of the S/CAP upon Council’s October 3, 2022
acceptance of the S/CAP Goals and Key Actions, with the goal of formally adopting the
full S/CAP report in early 2023. The 2023-2025 Work Plan will guide staff work after
adoption, and there is a great deal of staff work included in the 2023-2025 S/CAP Work
Plan that can proceed even before formal adoption.
Discussion
There are two sections to the draft 2023-2025 S/CAP Work Plan: Climate Action and
Sustainability.
Climate Action
P1. Complete grid modernization plan and begin construction to increase reliability
and transformer capacity for electrification
P2. Launch effective programs for emissions reductions with the highest impact and
lowest cost, including single-family electrification, strategic promotion of electric
vehicles (EVs), commercial rooftop heating, ventilation, and air conditioning
(HVAC), and expanded transportation alternatives
P3. Build community awareness and confidence in electrification through
engagement, addressing concerns, and program results
P4. Identify an additional 9% in emissions reduction opportunities to achieve the
80x30 goal
P5. By 2024, identify funding needed and potential funding sources for full scale
implementation of highest impact emissions reductions
Table 1 below summarizes how these priorities are implemented in 2023-2025. Staff will
10
Packet Pg. 276
City of Palo Alto Page 3
focus on increasing electric grid capacity while launching high potential, lower cost
programs focused on residential heat pump water heaters (HPWH), commercial
packaged rooftop heating, ventilation, and air conditioning (HVAC), and previously
funded transportation programs. Funding needs and sources for these high potential
programs will be evaluated. Studies on accelerating EV charger penetration in multi-
family buildings (including affordable housing) and providing EV chargers in workplaces
and business districts will be completed. Publicly-owned EV charging may also be part
of the solution; and the Bicycle/Pedestrian Plan will be updated. A study of potential
multi-family and non-residential electrification opportunities will be completed. This
work will be performed with the intent of building community confidence in the City’s
emissions reduction efforts, which will require results, engagement, and some focus on
electric system reliability and resiliency.
Table 1: Climate Action Priorities: Summary of Work Items and Timeline
Priority 2023 (after certification of
environmental review)3
2024 2025
P1
(Modernize
grid)
• Grid modernization study
completion, hire contractor
• Reliability/Resiliency
Strategic Plan
• Begin a 5-7 year construction effort to increase
reliability and transformer capacity
• Implement Reliability and Resiliency Strategic Plan
P2 (Launch
programs)
Design and launch programs:
• Full-scale HPWH program
• Pilot commercial HVAC
• Municipal electrification
• Downtown parking
management program
• On-demand transit pilot
• Single-family whole home
• Full-scale commercial HVAC
• Full-scale multi-family EV
charger
• Design and launch
additional programs
based on the 2024
studies (See P4 for
other studies that may
result in new
programs) and the EV
Strategic Plan
Studies to guide program launches:
• EV Strategic Plan
• Multi-family and income-
qualified EV charging plan
•
• Bicycle/Pedestrian Plan
update
• Commuter emissions
reduction strategic plan
• Workplace and visitor EV
charger strategic plan
• Vision Zero program
P3 (Build Continued public engagement and marketing. Report results from new and existing
programs:
3 It may be possible for some work to proceed prior to certification of environmental review, but other items may
need environmental review to be completed prior to Council action (e.g. hiring a contractor for grid modernization
work)
10
Packet Pg. 277
City of Palo Alto Page 4
Priority 2023 (after certification of
environmental review)3
2024 2025
awareness
and
confidence)
• New program: HPWH pilot
• Existing programs:
• Existing Mobility
programs
• Multi-family EV charger
• New programs: Full-scale
HPWH program,
commercial HVAC pilot
• Continuation of existing
programs
• New programs; Full-
scale HVAC, multi-
family EV charger
• Continuation of
existing programs
To address reliability and resiliency concerns, implement “Next Steps” from 8/16/21
Energy Storage report (Staff Report 121944) as time permits
P4
(Additional
emissions
reductions)
• Seek ideas from community
members and other experts
• Multi-family and non-
residential electrification
study
P5
(Funding
needs and
sources)
• Evaluate costs for full scale
implementation of high
potential/lower cost
emissions reductions
• Preliminary evaluations of
potential funding sources
• Decisions on how to fund
priority electrification areas
Sustainability
The Sustainability section of the draft work plan implements the S/CAP goals for a
sustainable natural environment (including reducing waste, creating a sustainable and
holistically managed water system, and a thriving urban canopy) by:
• Reducing water consumption while exploring ways to capture and store water,
and increase the availability and use of recycled water
• Developing and adopting a multi-year Sea Level Rise Adaptation Plan
• Minimizing wildland fire hazards through Foothills Fire Management Plan
implementation, zoning, and collaborating with Fire agencies
• Increasing Palo Alto’s Tree Canopy and reducing pesticide usage in parks and
open space preserves
• Supporting the Green Stormwater Infrastructure (GSI) Plan and incorporating it
in municipal projects
• Encouraging food waste reduction, prevention, and recovery and providing waste
prevention technical assistance
• Eliminating single-use disposable containers and prioritizing domestic processing
4 Staff Report 12194 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-
minutes/city-council-agendas-minutes/2021/08-august/20210816/20210816pccsm-final.pdf
10
Packet Pg. 278
City of Palo Alto Page 5
of recyclable materials
The Sustainability section Key Actions were prioritized based on the co-benefits analysis
conducted by the City’s consultant, AECOM.
The draft 2023-2025 S/CAP Work Plan implements the direction of the S/CAP Ad Hoc
Committee as put forth in the October 3rd City Council Motion (October 3 Action
Minutes, page 45) to refer to S/CAP Ad Hoc committee to begin work on the following
and present to the City Council by yearend an outline of:
1.Identification of community partner organizations and how they can help support
the S/CAP moving forward
2.Preliminary committee review of a prospective commercial HVAC electrification
program (E2)
3.An EV strategic plan (EV1-10)
It does this by creating a work plan and timeline for taking action on the items listed
above.
Governance
There is a range of oversight work involved in the development and implementation of
S/CAP programs. Staff has identified three main categories:
•Policy-level strategic guidance: These are highly visible decisions with significant
policy or political implications. For example, the Council S/CAP Ad Hoc Committee
provided guidance on where to focus the City’s initial efforts on emissions
reduction, resulting in the Advanced Heat Pump Water Heater Pilot Program
approved October 3, 2022, the S/CAP Goals and Key Actions, and the 2023-2025
draft S/CAP Work Plan.
•Oversight of ongoing work: As S/CAP work efforts or programs are launched an
oversight body or bodies will need to be available to receive progress updates
and make ongoing policy decisions as they arise. An example might be reports
on various S/CAP key performance indicators (KPIs) or periodic status updates
on the Advanced Heat Pump Water Heater Pilot Program after it launches.
•Operational-level strategic guidance: These are decisions with significant
operational impacts that require in-depth technical discussions. An example is
the discussions of low-wattage EV charging solutions and how they relate to grid
modernization undertaken by the S/CAP Committee. The in-depth detailed level
of these discussions can be overwhelming to a body with a broad set of
oversight responsibilities instead of a narrow set of responsibilities.
At its April 19, 2021 meeting Council directed the Mayor to convene an S/CAP Ad Hoc
Committee which has provided recommendations to Council on S/CAP-related policy
5 October 3 Action Minutes, page 4 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-
reports/agendas-minutes/city-council-agendas-minutes/2022/20221003/20221003amccsm.pdf#page=4
10
Packet Pg. 279
City of Palo Alto Page 6
decisions and prioritization. Staff is requesting that Council provide direction on
continuing governance in 2023 as staff completes the S/CAP Update work and begins
work on implementation. Some alternatives include:
• Managing with the full Council
• Delegating to the Council Finance or Policy and Services Committee
• Forming another Council Ad Hoc Committee
• Delegating to an existing Board or Commission
• Developing a new Commission
1. Full Council or Council Committee
Staff recommends against attempting to manage the entire S/CAP with the full
Council or even a standing Council committee, since the complexity of the effort
could potentially be overwhelming given the volume of other business. Certain
issues might lend themselves to delegation to specific standing committees. For
example, discussion of funding sources and needs might be appropriate to the
Finance Committee.
2. Council Ad Hoc Committee
A new ad hoc committee, while temporary in nature, could provide policy direction
while a longer-term governance structure is being established. If a new ad hoc
committee were established, staff would recommend clearly stating the expected
term and scope of responsibilities. Establishing a new ad hoc could also facilitate the
continuation of involvement and input from community members who have been
involved as Working Group and Working Group Team contributors over the past
year. Designating a member of the new ad hoc committee as the Utilities Advisory
Commission liaison could also be an effective means to connect the related work of
the two bodies. Staff would also recommend establishing ways for the Council to
delegate some work to other bodies with feedback from the ad hoc committee to
ensure coherence of the overall work plan. Once the work plan is approved
(anticipated mid-2023), there will be a high volume of work to be reviewed and
discussed, and an ad hoc committee may not be able to keep up on its own.
3. Existing Board or Commission
The other existing bodies with expertise relevant to the S/CAP are the Utilities
Advisory Commission (UAC), the Planning and Transportation Commission (PTC),
and the Parks and Recreation Commission (PRC). Although all of these bodies have
some responsibilities relevant to the S/CAP, the UAC’s role reviewing utility
programs, utility finances, and utility infrastructure is by far the most relevant to
much of the core work in the work plan. Additionally, the PTC reviews transportation
policy and zoning code provisions that can affect how electrified equipment is
installed, and the PRC serves in an advisory role on implementation of Urban
Forestry programs relevant to the S/CAP’s Natural Environment goals. Oversight of
the entire S/CAP would represent a very significant expansion of oversight
10
Packet Pg. 280
City of Palo Alto Page 7
responsibilities for any of the bodies, but each could make recommendations to
Council or a Council Ad Hoc Committee on specific issues.
4. Climate Action Commission
In the longer-term, Council could consider a new Commission with responsibility for
S/CAP oversight. At its October 3, 2022 meeting, Council directed staff to bring
information on the design of a Climate Action Commission that would include
student members when returning with the draft work plan. A Climate Action
Commission may need to coordinate closely with other Commissions such as the
UAC or PTC on specific issues, and potentially eliminate certain issues from those
commissions’ areas of responsibility in order to avoid duplication and provide clarity.
This would be necessary to provide a single body for oversight of the S/CAP Climate
Action programs. Staff’s initial estimate is that support of the new Commission
would require an additional 0.25 to 0.33 FTE of admin time not currently budgeted.
Table 2 provides staff’s initial assessment of the design parameters for a Climate
Action Commission.
Table 2: Design Parameters of a Potential Climate Action Commission
Appointees 5 or 7 members, including 1 or 2 student members
Meeting Frequency Monthly or Semi-monthly during more intensive S/CAP
program development in next 2-3 years; less frequently
during ongoing implementation activities thereafter
Meeting
Requirements
Subject to Brown Act; all meetings publicly noticed and
including public participation
Role Forum for discussion and recommendations to Council on
S/CAP program development and implementation; requires
analysis and definition to avoid overlap with advisory roles of
other Boards and Commissions
Implementation
Steps
Council decisions on size and scope; update to Municipal
Code to codify new Commission; address staffing
requirements; Commissioner application process; Council
interviews and Commission selection; commence Commission
activity
Likely Minimum
Time to Commence
1 – 1 ½ years
Given the emphasis on strategic studies and program development during the first one
to two years of the work plan, it is most important to obtain Council guidance on S/CAP
governance over that initial timeframe.
Timeline
The timeline for this draft work plan is calendar years 2023 through 2025. Many
elements of the work plan are contingent on certification of environmental review,
10
Packet Pg. 281
City of Palo Alto Page 8
expected in spring 2023. A more detailed timeline for individual work items is included
in Attachment B.
Resource Impact
Subject to certification of the S/CAP environmental review, the FY 2023 work items in
the 2023-2025 draft S/CAP Work Plan can proceed with the actions approved in the FY
2023 Adopted Budget. Staff expects to submit additional resource requests as part of
the annual budget process in subsequent years as the work plan proceeds for the
following areas:
• Funding for newly-launched programs: As new programs are proposed for
launch, funding for third-party program operators, rebates, and other expenses
may be recommended to manage the programs.
• Program sales and marketing: Additional resources (consultants and/or staffing)
may be needed for sales and marketing of future programs. Council partially
approved these resources along with its October 3, 2022 approval of the
Advanced Heat Pump Water Heater pilot program (Staff Report 146066).
• Permit review: Permit activity associated with new programs will create a need
for permit review staff and/or consultants. Council approved permit review
resources for the Advanced Heat Pump Water Heater Pilot Program (Staff Report
146067), but not for future programs. These resource requests will be
recommended to be funded by increased permit revenue.
• Capital budgets for grid modernization: Additional engineering staffing has
already been approved for grid modernization work, but capital budgets for
design and construction work have not yet been proposed. Staff will recommend
projects as part of the development of the 2024-2028 five-year Capital
Improvement Plan.
• Consulting budgets: Consulting budgets for calendar year 2023 and 2024 studies
may be proposed in the FY 2024 budget if needed.
Some items in other work plans are also relevant to the S/CAP Work Plan. The Utilities
Strategic Plan, for example, includes workforce development and advanced metering
infrastructure (AMI) work items that are directly relevant to the S/CAP. Some of these
may involve future budget requests as well.
Policy Implications
The 2023-2025 S/CAP Work Plan aligns with one of the top four Council Priorities for CY
2022: “Climate Change - Protection and Adaptation.”
Stakeholder Engagement
6 Staff Report 14606 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-
minutes/city-council-agendas-minutes/2022/20220927/20220927pccsmlinked-amended-v2.pdf#page=79
7 Staff Report 14606 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-
minutes/city-council-agendas-minutes/2022/20220927/20220927pccsmlinked-amended-v2.pdf#page=79
10
Packet Pg. 282
City of Palo Alto Page 9
Wide-reaching and coordinated public engagement was done as part of the S/CAP
Update prior to acceptance of the proposed S/CAP Goals and Key Actions. Feedback
from these engagement processes informed development of the draft 2023-2025 S/CAP
Work Plan. For a summary, please see the Stakeholder Engagement section of Staff
Report 146068, packet page 101. Additional engagement on the 2023-2025 S/CAP Work
Plan included a meeting with the Council S/CAP Ad Hoc Committee’s Working Group on
November 4, 2022. Staff incorporated the Working Group’s feedback and are
developing an overall set of guiding principles that will be included in the S/CAP Report.
These principles will guide implementation of the S/CAP.
Environmental Review
Staff commenced CEQA evaluation of the S/CAP, including the Work Plan elements
described in this staff report, upon Council’s October 3, 2022 acceptance of the
proposed S/CAP Goals and Key Actions. Once CEQA review concludes, staff will bring a
complete S/CAP report and a formal Work Plan to Council for adoption. Any formal
government actions stemming from work items in the S/CAP 2023-2025 Work Plan that
occur prior to completion of the S/CAP’s CEQA review will be independently evaluated
on a project by project basis.
Attachments:
• Attachment10.a: Att A: 2023-2025 S/CAP Work Plan
• Attachment10.b: Att B: 2023-2025 S/CAP Work Plan Timeline
• Attachment10.c: Att C - Background on Sustainability and Climate Action Plan
8 Staff Report 14606 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-
minutes/city-council-agendas-minutes/2022/20220927/20220927pccsmlinked-amended-v2.pdf#page=101
10
Packet Pg. 283
Draft S/CAP Three-Year Work Plan – Updated Fall 2022
Page
1 of 32
DRAFT
City of Palo Alto Sustainability and Climate Action Plan
Implementation Work Plan (2023 through 2025)
Table of Contents:
1. Executive Summary
2. 2023-2025 Climate Action Section Work Plan: Making Progress on the 80x30 Goal
i. Climate Action 2023-2025 Priorities
ii. Summary Timeline, 2023-2025
iii. Climate Action 2023-2025 Work Plan
3. 2023-2025 Sustainability Section Work Plan: Creating a More Sustainable Natural Environment
Appendix A: Detailed Implementation Timeline
Appendix B: How Climate Action Priorities were Prioritized
Appendix C: Policy Guidelines for Electric Vehicle Strategic Plan Development
Appendix D: Policy Guidelines for Reliability and Resiliency Strategic Plan Development
Appendix E: Index of S/CAP Key Actions and the Work Plan Items that Implement them
1. Executive Summary
This work plan implements the City’s Sustainability and Climate Action Plan (S/CAP). In November 2016 the Council
adopted the S/CAP Framework, which has served as the road map for achieving Palo Alto’s sustainability goals. On
October 3, 2022, the City accepted an updated set of Goals and Key Actions and is performing CEQA review with the goal
of formally adopting the S/CAP in spring of 2023. This work plan implements this updated set of Goals and Key Actions.
The Goals and Key Actions are divided into eight areas, four of which are climate-focused and include actions to achieve
the City’s “80x30”1 and carbon neutrality2 goals (Climate Action, Mobility, Electric Vehicles, and Buildings) and four of
which are focused on actions that create a sustainable natural environment and adapting to a warming climate but do
not contribute significantly to the 80x30 goal (Natural Environment, Zero Waste, Water, and Sea Level Rise).
Based on Council’s acceptance of the S/CAP Goals and Key Actions, staff and the Ad Hoc Subcommittee developed five
Climate Action priorities for 2023 through 2025, which are listed in Section 2.i below:
It includes a variety of work items for achieving these priorities, including:
• Promoting electric vehicles (EVs) for residents, commuters, visitors, and other users (e.g. deliveries, rideshare)
and regionally, including micromobility (e-bikes, e-scooters, and other small EVs).
• Reducing vehicle miles traveled through citywide Mobility programs, including parking management, piloting on-
demand transit, implementing the City’s Housing Element, and updating the Bicycle Plan
• Launching an Advanced Heat Pump Water Heater Pilot Program and scaling it up
1 The 80x30 goal is to reduce Palo Alto greenhouse gas emissions 80% from 1990 levels by 2030
2 Carbon neutrality means that all GHG emissions emitted into the atmosphere are balanced in equal measure by GHGs that are removed from the
atmosphere, either through carbon sinks or carbon capture and storage
10.a
Packet Pg. 284
Draft S/CAP Three-Year Work Plan – Updated Fall 2022
Page
2 of 32
• Beginning a strategic upgrading of capacity in the residential areas of the electric grid and promoting whole
home electrification in the upgraded areas
• Expanding access to EV charging in multi-family buildings (including affordable housing) and exploring ways to
electrify those buildings as well
• Electrifying commercial rooftop packaged heating, ventilation, and air conditioning (HVAC).
• Partnering with major employers on emissions reduction plans, including commuter emissions
• Electrifying City buildings and vehicles where feasible
• Engaging City operations to support these goals
• Exploring additional emissions reduction opportunities by surveying multi-family and non-residential building
equipment and exploring other ideas from the community (e.g. shuttles, shared vehicles)
• Evaluating funding and resource needs of the above programs and identifying viable funding sources.
This work plan implements the S/CAP goals for a sustainable natural environment (including reducing waste, creating a
sustainable and holistically managed water system, and a thriving urban canopy) by:
• Reducing water consumption while exploring ways to capture and store water, as well as to increase the
availability and use of recycled water
• Developing and adopting a multi-year Sea Level Rise Adaptation Plan
• Minimizing wildland fire hazards through Plan implementation, zoning, and collaborating with Fire agencies
• Increasing Palo Alto’s Tree Canopy and reducing pesticide use in parks and open space preserves
• Supporting the Green Stormwater Infrastructure (GSI) Plan and incorporating GSI in municipal projects
• Encouraging food waste reduction, prevention, and recovery and providing waste prevention technical
assistance
• Eliminating single-use disposable containers and prioritizing domestic processing of recyclable materials
10.a
Packet Pg. 285
Draft S/CAP Three-Year Work Plan – Updated Fall 2022
Page
3 of 32
2. 2023-2025 Climate Action Section Work Plan: Making Progress on the 80x30 Goal
The Climate Action section of the S/CAP focuses on achieving the City’s 80x30 goal, and includes goals and key actions
primarily focused on reducing emissions in transportation and buildings. The climate action sections of the S/CAP itself
are divided into four topic areas (Climate Action, Mobility, EVs, and Energy), but this work plan is intended to prioritize
and organize those key actions, so work plan items are organized according to five 2023-2025 Climate Action section
priorities.
2.i 2023-2025 Climate Action Section Priorities
The following five priorities are intended to focus the City’s efforts on the highest potential and lowest cost emissions
reduction actions and supporting efforts to enable the City’s programs in these areas to be as impactful as possible.
Appendix B outlines how the highest priority emissions reduction actions were chosen (single-family residential
electrification, expanding EV charging access, commercial rooftop packaged HVAC, and Mobility). EV charging is a
complex topic with a variety of different types of vehicle owner needs and potential electric grid impacts and benefits,
and Appendix C outlines the guiding principles the City used for developing electric vehicle charging work items. These
principles will also be reflected in any studies done on EVs or EV programs developed.
The 2023-2025 climate action section priorities are:
P1. Complete grid modernization plan and begin construction to increase reliability and transformer capacity for
electrification
P2. Launch effective programs for emissions reductions with highest impact and lowest cost: single-family
electrification, strategic promotion of EVs, commercial rooftop HVAC, and expanded transportation alternatives
P3. Build community awareness and confidence in electrification through engagement, addressing concerns, and
program results
P4. Identify an additional 9% in emissions reduction opportunities to achieve the 80x30 goal
P5. By 2024 identify funding needed and potential funding sources for full scale implementation of highest impact
emissions reductions
10.a
Packet Pg. 286
Draft S/CAP Three-Year Work Plan – Updated Fall 2022
Page
4 of 32
2.ii 2023-2025 Climate Action Summary Timeline
The proposed timeline for the 2023-2025 Climate Action section work items (which are listed below in section 2.c) is
outlined below. The proposed timeline is contingent on certification of environmental review and may be modified
accordingly. A more detailed timeline for each work plan item is included in Appendix A.
Priority 2023 2024 2025
P1 (Modernize
grid)
•Grid modernization study
completion, hire contractor
•Reliability/Resiliency Strategic
Plan
•Begin a 5-7 year construction effort to increase reliability and
transformer capacity
•Implement Reliability and Resiliency Strategic Plan
P2 (Launch
programs)
Design and launch programs:
•Full-scale HPWH program
•Pilot commercial HVAC
•Municipal electrification
•Downtown parking
management program
•On-demand transit pilot
•Single-family whole home
•Full-scale commercial HVAC
•Full-scale multi-family EV
charger program (tentative)
Design and launch additional
programs based on the 2024
studies (See P4 for other studies
that may result in new
programs) and the EV Strategic
Plan
Studies to guide program launches:
•EV Strategic Plan
•Multi-family and income-
qualified EV work plan
•Bicycle Plan update
•Work plan for commuter and
visitor EV charging and EV
promotion
•Vision Zero program (tentative)
P3 (Build
awareness and
confidence)
Build awareness of the need for climate action and the City’s services and achievements. Drive
community actions to achieve S/CAP goals. Build confidence in the City’s electric infrastructure. Report
results from new and existing programs:
•New program: HPWH pilot
•Existing programs:
•Existing Mobility programs
•Multi-family EV charger
•New programs: Full-scale HPWH
program, commercial HVAC pilot
•Continuation of existing programs
•New programs; Full-scale
HVAC, multi-family EV
charger
•Continuation of programs
P4 (Additional
emissions
reductions)
•Seek ideas from community
members and other experts
•Monitor technologies and
medium term opportunities
•Multi-family and non-residential
electrification study
•Study highest potential community
ideas/technologies
•Evaluate new programs
based on studies
P5 (Funding
needs and
sources)
•Evaluate implementation cost
for full scale high impact /
lower cost programs
•Preliminary evaluations of
potential funding sources
•Decisions on how to fund priority
electrification areas
•Develop financial and operational
plan for gas utility
•Implement follow up from
prior-year studies
10.a
Packet Pg. 287
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 5 of 32
2.C Climate Action 2023-2025 Work Plan
The climate change topic areas of the S/CAP (Energy, EVs, Mobility, and Climate Change) are highly inter-related. Multiple key actions can affect the same
community members in various ways. For example, a multi-family building owner might do a project that builds EV charging, bike storage, and electrifies some
building equipment, which touches all three topic areas. Programs should be as simple as possible for the community. As a result, the work plan below is
organized according to the type of activity and the part of the community served instead of being organized by the S/CAP topic areas. The key actions being
implemented are listed next to each work plan item, and an index is provided in Appendix D to help readers map the Key Actions from the S/CAP to all
implementing work plan items.
The work plan is organized according to the priorities above, as follows:
P1. Grid Modernization: Complete grid modernization plan and begin construction to increase reliability and transformer capacity for electrification
P2. Launch Programs: Launch effective programs for emissions reductions with highest impact and lowest cost: single-family electrification, strategic
promotion of EVs, commercial rooftop HVAC, and expanded transportation alternatives
P2.1 Residential Emissions Reduction
P2.2 Non-Residential Emissions Reduction
P2.3 Citywide Mobility
P2.4 Municipal Electrification
P2.5 EV Strategic Plan
P3. Build Awareness and Confidence: Build community awareness and confidence in electrification through engagement, addressing concerns, and program
results
P4. Additional Emissions Reductions: Identify an additional 9% in emissions reduction opportunities to achieve the 80x30 goal
P5. Funding Needs and Sources: By 2024 identify funding needed and potential funding sources for full scale implementation of highest impact emissions
reductions
10.a
Packet Pg. 288
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 6 of 32
P1: Grid Modernization
Grid modernization is critical, particularly for residential electrification. The programs below will impact the electric grid, and there are also supporting grid-
related efforts that could reduce barriers to electrification citywide, such as examining electric rate design, low wattage solutions, and fee structures for
transformer upgrades. Electric grid reliability and resilience will be important to inspiring confidence in electrified homes and vehicles.
Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
1.A Grid Modernization Study E8 Complete a grid modernization
study covering scope, designs, high
level cost estimates, and estimated
implementation timelines for
electric system upgrades.
Recruitment
challenges.
Planning fully
funded.
Implementation
funding needs
under review.
Dec ‘22: Complete study
Dec ’23: Complete
design, bring contractor
on board
Early 2024: Begin
construction
Consultant hired, study in
progress, nearing release
of initial draft study
1.B Reliability and Resiliency
Strategic Plan
E8 Develop Reliability and Resiliency
strategic plan based on principles
in Appendix D
Fully staffed,
funding needs
under evaluation
Dec 2023
Not started
1.C Reliability and Resiliency
Strategic Plan Implementation
E8 Implement Reliability and
Resiliency Strategic Plan
Staffing and
funding needs to
be evaluated
To be evaluated as part
of 1.B
Policy guidelines for plan
development to Council
December 5, 2022
1.D Evaluate Utility Rates and Fees E6 Evaluate utility rate designs and
fee structures in the context of
future electrification, implement
any needed changes
Fully funded Mar 2023 Cost of service evaluation
in progress
P2.1: Residential Emissions
The long-term goal in residential areas is full electrification of vehicles and buildings, but some electrification of some types of buildings is easier and less costly
than others. Single-family homes tend to be easier and less costly to electrify than multi-family buildings. It is easier to install EV charger access as well. Grid
capacity is an important consideration that drives the work plan in residential areas. The plan below prioritizes individual heat pump water heating electrification
10.a
Packet Pg. 289
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 7 of 32
(which is primarily in single-family homes, but also some multi-family) and EV charger access in multi-family homes. Individual heat pump water heaters have
low grid impact compared to other electrification measures and can be installed citywide while grid modernization gets underway. In modernized
neighborhoods electrification of space heating and other equipment and appliances can be promoted.
The work plan for multi-family residential emissions reduction prioritizes EV charger access in multi-family homes. EV chargers are relatively easy to install
without City assistance in single-family homes, but the City’s multi-family EV program will help multi-family building owners and condo associations install EV
chargers so residents can access the savings and emissions reductions from EVs. This work plan includes development of a strategy to scale successful existing
multi-family EV charging pilot programs to all multi-family buildings in Palo Alto. Multi-family building electrification requires more study to develop cost-
effective strategies, since early studies and pilots have found multi-family building electrification to be very expensive. But more pilots in affordable housing
projects, where grants and other funding might be available, would help the City get experience and develop strategies. All programs will be developed with
equity in mind, considering how to serve low-income residents and renters.
Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
All Residential
2.1 A Promote EV Adoption EV1,EV4 Offer Workshops and Events to
raise awareness of EVs, including
electric micromobility options and
incentives. Work item subject to
change based on EV Strategic Plan
(see 2.5A).
Fully staffed and
funded, staffing
issues may
impact this in the
short term
Ongoing In 2022 conduct 33 EV
related workshops and
expos. Contracting in
progress to offer more
awareness raising
opportunites in 2023.
2.1 B Emissions Reduction Advisory
Services
C1 Provide single points of contact for
online and phone advice for
residents to reduce building and
transportation emissions.
Fully staffed and
funded
Dec ‘23: Phone advising
Timeline for launch of
online services under
evaluation
RFP responses evaluated
and contract negotiations
are in progress
2.1 C Evaluate small electric
vehicles (e.g. e-bike) program
potential
EV4 Evaluate alternatives for providing
residential small electric vehicle
programs or pilots. Work item
subject to change based on EV
Strategic Plan (see 2.5A).
Fully staffed and
funded, though
staffing issues
may impact this
in the short term
Complete evaluation by
December 2023
RFP being written
Single-family Residential
10.a
Packet Pg. 290
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 8 of 32
Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
2.1 D Heat Pump Water Heater
Electrification Pilot Program
E1,E5 Launch a pilot heat pump water
heater electrification pilot to
achieve 1000 gas water heater
replacements by the end of 2023
Partly staffed and
funded – sales/
marketing needs
being evaluated
Launch late 2022 / early
2023, aim to achieve
goal by Dec 2023
Council approved program
on October 3, staff
implementing the plan
2.1 E Full-Scale Heat Pump Water
Heater Electrification
Program
E1,E5 As pilot program nears its goals,
transition to a full-scale program
with the goal of electrifying all
water heaters in Palo Alto
Fully staffed for
design, staffing /
funding needs to
be determined
Based on pilot program
progress, tentatively
late 2023
Some preliminary analysis
completed, otherwise not
started.
2.1 F Electrification data collection
program
E1 Do home evaluations to collect
data and help people plan for
equipment or whole home
electrification
Fully staffed,
funding needs
under evaluation
Program up and running
by December 2023
Contract negotiations in
progress
2.1 G Pilot Programs for
Modernized Neighborhoods
E1,E5 Identify and launch electrification
programs for neighborhoods with
increased electric capacity such as
whole home or heat pump space
heating pilot programs
Fully staffed,
funding needs
under evaluation
Program design and
approvals by Dec 2024
Not started
2.1 H Single-family Electrification
Rebates
E1 Establish rebates for all appliances
and equipment in single-family
homes
Fully staffed and
funded
Launch rebates by
spring of 2024
Some analysis done, but
moving slowly due to
conflicting priorities
Multi-family Residential
2.1 I Affordable Housing EV
Charging and Electrification
Pilot
E5,EV5,
EV7
Design a pilot electrification and EV
project in an affordable housing
multi-family building to test
potential scalable approaches.
Work item subject to change based
on EV Strategic Plan (see 2.5A).
Fully staffed,
funding needs
under evaluation
Complete pilot design
by December 2023
Partner identified, grant
secured for EV charging,
contract negotiations in
progress for electrification
pilot management, some
analysis completed.
10.a
Packet Pg. 291
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 9 of 32
Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
2.1 J Multi-Family EV Charger
Program
EV5,EV6
EV7
Establish rebates and EV charging
technical assistance , with the goal
of expanding charger access to
10% (1,100 units) of multifamily
households. Work item subject to
change based on EV Strategic Plan
(see 2.5A).
Fully staffed and
funded
Aiming for 1,100 units
by December 2025
100+ multifamily
properties actively
proceeding in programs to
install EV chargers
2.1 K Multi-family and Affordable
Housing Electrification and
EV Charger Access Strategy
Development
C8,EV6,
EV7,EV8
Evaluate potential scalable
strategies for multi-family and
affordable housing EV charger and
electrification programs, including
the role of publicly-owned EV
charging, such as in rights-of-way.
Work item subject to change based
on EV Strategic Plan (see 2.5A).
Fully staffed and
funded for
evaluation,
implementation
needs TBD
Complete evaluation by
December 2023
Evaluating responses to
RFP issued for multi-family
electrification services,
analyses of potential
program designs / funding
sources in progress.
P2.2: Non-Residential Emissions
City staff has less experience and knowledge with electrification of non-residential building equipment than with electrification of other types of building
equipment. In section 6 of this work plan there are several studies planned that could help staff develop building electrification strategies for the non-residential
sector. In the meantime, rooftop packaged heating, ventilation, and air conditioning (HVAC) units are potentially cost-effective to electrify. This work plan
includes running a small initial pilot while simultaneously designing a potential advanced pilot and evaluating the potential for mandated electrification for end
of life replacements. These rooftop HVAC programs and/or mandates can reduce emissions in major facilities as well (see Section 5)
In addition, staff plans to partner with major facility owners in Palo Alto to help them achieve their sustainability goals. Ideally these partnerships would include
both building electrification, promotion of alternative transportation and EVs for commuters, and expanded EV charger access. A successful partnership with at
least one major employer could provide an example that could lead to future employer partnerships, while a partnership with the schools could be an
educational opportunity that leads to more awareness of electrification among residents.
Staff estimates about a third of transportation emissions come from drivers entering Palo Alto to visit or do business. The City is limited in its ability to affect
these emissions, but partnering regionally to promote alternative transportation modes and personal and fleet EVs should help.
10.a
Packet Pg. 292
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 10 of 32
Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
2.2 A Rooftop Packaged Heating,
Ventilation, and Air
Conditioning (HVAC) Pilot
E2,C8,
E7
Continue HVAC pilot with the goal
of completing 4-5 installations
Fully funded December 2023 Program launched,
recruiting participants
2.2 B Rooftop Packaged HVAC
Advanced Pilot Design
E2,C8,
E7
Develop proposal for an advanced
pilot program and/or mandate
Fully funded Proposal to Council for
approval by Dec 2023,
implementation 2024
Not started
2.2 C Major Employer Partnerships C2,E2,
E3,EV3,
other
Develop custom sustainability
partnership with at least one major
employer, electrification pilots
with City facilities and PAUSD.
Work item subject to change based
on EV Strategic Plan (see 2.5A).
Fully funded for
design, not
implementation
Complete goals listed in
“Description” column by
December 2023
Preparing to start
discussions with various
employers and PAUSD
2.2 D Commuter Transportation and
EV Charging Strategy
C8,EV1,
EV3,EV8
Develop a strategy to promote EV
adoption (including small EVs like
e-bikes/e-scooters) and alternative
transportation to commuters.
Evaluate workplace charger
programs and/or mandates,
including role of publicly owned
business district EV charging. Work
item subject to change based on
EV Strategic Plan (see 2.5A).
Fully staffed,
consultant
funding needs
being evaluated.
Implementation
needs TBD.
Complete plan by end of
December 2024,
implementation
timeline TBD
Not started
2.2 E Regional and State
Partnerships
EV2,
EV10
Identify promising regional
partnerships and State programs
for potential City participation.
Work item subject to change based
on EV Strategic Plan (see 2.5A).
Under evaluation Ongoing Not started
10.a
Packet Pg. 293
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 11 of 32
P2.3: Citywide Mobility
Road transportation represents the largest percentage of Palo Alto’s existing carbon footprint – and a congestion headache. Reducing vehicle miles traveled is an
important element in reducing these emissions. Reductions are achieved through a comprehensive citywide effort to increase access to alternative modes and
awareness of the benefits complemented by programs for specific groups within the community. Land use is an important lever for affecting vehicle miles
traveled. The City already has a variety of transportation programs and is addressing land use via its Comprehensive Plan process (including the Housing
Element) and subsequent implementation. The work plan below acknowledges those efforts and aims to modestly expand them as staff time and funding
permit.
Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
2.3 A Transportation and Land Use
Policies and Programs
M1 Continue to implement existing
transportation policies and
programs to reduce VMT
Fully funded Ongoing Continuing to work on
Council Transportation
priorities including grade
separation, street closures
2.3 B Housing Element Adoption M7, M9 Update the Housing Element for
2023-2031.
Fully funded January 2023 Draft document being
prepared for Council
consideration
2.3 C Housing Element
Implementation
M7, M9 Implement the 2023-2031 Housing
Element, which is projected to
reduce VMT
Funding via
grants and
annual City
budget process
2031 Not started – awaiting
Housing Element adoption
2.3 D Micro-mobility evaluations M2 Evaluate opportunities to pilot
bike/scooter share and
neighborhood mobility hub pilots
to provide last-mile connections
Proceed as staff
time is available
No target, proceed as
time is available
Some design work and
research completed, staff
aims to develop potential
funding and/or staffing
proposals as time permits.
2.3 E On-demand transit pilot M2 Launch on-demand transit pilot to
provide last-mile connections for
100% of the city for a limited time
Fully funded for
two years
Launch by Mar 2023 Reviewing proposals for
on-demand transit provider
2.3 F Update Bicycle Plan M3 Update the 2012 Bicycle and
Pedestrian Transportation Plan
Fully funded Dec 2024 Awaiting consultant
proposals in response to
RFP issued in fall 2022
10.a
Packet Pg. 294
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 12 of 32
Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
2.3 G Vision Zero Program M3 Program to reduce roadway severe
injuries and fatalities to zero
Applied for grant
funding for
planning
To be determined,
depends on whether
grant is received
Applied for Federal Safe
Streets for All grant to fund
a safety action plan.
Implementation would
require additional staffing
and funding
2.3 H Evaluate expansion of
employer transportation
demand management (TDM)
M4 Evaluate possible alternatives to
expand TDM ordinance
requirements and/or voluntary
TDM services (e.g. expanding the
Transportation Management
Association)
Proceed as staff
time is available
No target, proceed as
time is available
Some design work and staff
research has been done,
staff exploring ways to fund
and staff a study of options
as time permits.
2.3 I Proposals for Managing
Downtown Parking Availability
M5 Develop proposals for pricing
strategies to manage parking
supply and availability
Fully funded Fall 2022 Proposals to be shared with
Council in Fall 2022
2.3 J Implement Efficient
Downtown Parking
Management
M5 Implement proposals for pricing
strategies to manage parking
supply and availability
Funding and
staffing to be
determined
Spring 2023 RFP for management
services in development
2.3 K Traffic Signal Improvements &
Transit Signal Priority
M8 Maintain and modernize current
traffic signals and central
management systems. Use
technology to improve traffic
operations and safety. Work with
transit providers on transit signal
priority where feasible.
Mostly funded,
long-term
funding needs
being evaluated
Ongoing Long-term system plan in
development. Supporting
transit signal priority
project for Dumbarton
Express. Implementing
Automated Traffic Signal
Performance Measures to
improve signal timing.
10.a
Packet Pg. 295
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 13 of 32
P2.4: City Facilities and Fleet Emissions
A priority for the Council in development of the S/CAP was that we lead by doing. Electrification of City facilities and the vehicle fleet is a critical part of that. In
addition, if increased publicly-owned EV charging becomes a part of multi-family and/or business district EV charger strategies (see P2.1K and P2.2D), a detailed
plan for maintenance and operation will be needed.
Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
2.4 A Facility Electrification
Assessment Plan
E4 Complete an assessment of
electrification opportunities at City
facilities
Fully funded Under evaluation Assessment of all City
facilities is underway
2.4 B Facility Electrification
Assessment Implementation
E4 Implement recommendations from
the Facility Electrification
Assessment Plan where feasible
Under evaluation Under evaluation Not started
2.4 C Electrify Equipment at City
Facilities during Routine
Replacement
E4 Evaluate the feasibility of
electrification when doing end of
life equipment replacements
Under evaluation Under evaluation On-going. The mechanical
equipment at MSC-B is at
the end of its service life
and we are currently
looking into electric
replacement solutions
2.4 D Electrify City Vehicle Fleet EV9 Convert all Palo Alto municipal
vehicles to EVs when feasible and
when the replacement is
operationally acceptable.
Evaluated with
each
replacement
On-going There are two units
identified in FY23 for
potential EV replacements,
pending manufacturer
availability and cost
2.4 E Build City Fleet and Employee
Charging Infrastructure
EV9,EV3 Expand charging at City facilities to
support an electrified fleet and
employee EV adoption
Under evaluation Under evaluation We are currently testing a
low cost EV charger
solution that could be
used for future employee
charging locations
2.4 F Publicly-owned charger
strategic plan
EV8 Evaluate potential publicly-owned
EV charger strategies. Work item
subject to change based on EV
Strategic Plan (see 2.5A).
Staffing and
funding needs
under evaluation
Residential plan – by
Dec ‘23 (see P2.1 K)
Business district plan –
by Dec ‘24 (see P2.2 F)
Not started
10.a
Packet Pg. 296
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 14 of 32
P2.5: Electric Vehicles Strategic Plan
Several work plan items relate to electric vehicle promotion and programs to improve access to charging. Coordinating staff effort across a variety of efforts
focused on many different parts of the community requires some level of coordination. This strategic plan will guide development of other work items.
Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
2.5 A Electric Vehicle Strategic Plan
Development
EV1
thru
EV10
Develop a strategic plan based on
principles in Appendix C to guide
coordination of various work
items, including 2.1 A, C, I, J, and K,
2.2 C, D, and E, and 2.4 F. Align
with Reliability and Resiliency
Strategic Plan (1B and 1C)
Fully funded Under evaluation Policy guidelines for plan
development to Council
December 5, 2022
P3: Building Awareness and Confidence
To achieve high participation in electrification programs and other emissions reduction efforts and continuing support for S/CAP climate action programs
requires building community awareness and confidence through engagement, addressing concerns, and achieving program results.
Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
3.1 A Build awareness of the need
for climate action and the
benefits the City and its
utility can provide
N/A Achieve widespread awareness of
the need for climate action and the
City’s services and achievements,
including low electric rates. Use
partnerships and volunteers to
help deliver the message.
Fully staffed,
partially funded
Ongoing Sustainability hub and
various other engagement
efforts implemented.
3.1 B Drive community actions to
achieve S/CAP goals
N/A Run effective marketing and
outreach that drives community
action on S/CAP goals
Under evaluation Ongoing Marketing plan in
development
10.a
Packet Pg. 297
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 15 of 32
Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
3.1 C S/CAP Survey Program N/A Continuing surveys of community
sentiment and engagement to
guide decision making and track
certain key performance indicators
Under evaluation Under evaluation –
requires coordination
with other City surveys
Not started
3.1 D S/CAP Reporting N/A Ongoing reporting of S/CAP results,
including key performance
indicators
Under evaluation Ongoing Annual reporting provided
in Earth Day report, to be
expanded to cover all
S/CAP KPIs
3.1 E Build confidence in the City’s
electric infrastructure
N/A Communicate actions the City is
taking to improve electric reliability
and grid capacity, to help residents
and businesses build resiliency,
and successes in these areas
Under evaluation Under evaluation –
requires coordination
with other City surveys
Not started
4. Additional Emissions Reductions
A variety of planning efforts are needed to achieve 80x30. Emissions reductions identified to date only achieve 71% from 1990 levels, so the City must identify
additional reductions to achieve its 80x30 goals. The multi-family and commercial building sectors have the smallest contribution to the emissions reductions
identified to-date, so this will be an area of focus where staff is likely to find the most additional emissions reductions. Note that carbon dioxide removal
technologies are not included in this effort, these are part of a separate future study on the City’s carbon neutrality goal.
Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
4.A Multi-family and Commercial
End Use Study
C3,E9 Do end use study of commercial
and multi-family buildings to
identify potential building
electrification measures
Fully staffed,
consultant
funding needs
being evaluated
December 2024 Writing consultant RFP
10.a
Packet Pg. 298
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 16 of 32
Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
4.B Idea generation and additional
research
C3,
M10
Consult community members and
experts (including Stanford) and
research new technologies to
identify other potential
approaches to reducing emissions
in Palo Alto
Staffing and
funding needs to
be evaluated
December 2024 Not started
4.C Additional Emissions Reduction
Project Prioritization
C3 Prioritize the most cost-effective
approaches to achieving the
additional emissions reduction
needed to achieve 80x30 in
establishment of next three-year
work plan
Staffing and
funding needs to
be evaluated
December 2025 Not started
5. Funding Needs and Funding Sources
A high-level assessment of resource needs and funding sources will be done by fall of 2023 to allow for Council discussions on potential funding sources in late
2023 and early 2024. The needs of low- and middle-income residents will be assessed as part of this effort. Full-scale implementation of high potential programs
will cause significant reductions in gas utility sales, necessitating careful planning to manage contracting revenues and operational needs.
Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
5.A Resource Needs Assessment C4 Complete study of staffing and
other resources needed for
programs and operations to
implement all 80x30 activities
Fully staffed,
consultant
funding needs
being evaluated
Dec 2023 Writing consultant RFP
5.B Funding Alternatives C5, M5 Complete study of funding
alternatives for 80x30, taking into
account Federal policy such as the
Inflation Reduction Act.
Fully staffed,
consultant
funding needs
being evaluated
Dec 2023 Writing consultant RFP
10.a
Packet Pg. 299
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 17 of 32
Work Item
Key
Action Description
Resource
Availability
Target
Completion Date Status (Dec 2022)
5.C Affordability Study C6,E5 Identify vulnerable populations
who may need help electrifying
and subsidy needed
Fully staffed and
funded
Dec 2023 Consultant beginning work
5.D Gas Utility Financial and
Operating Plan
N/A Develop a financial and operating
plan for declining gas utility sales
that maintains safety and solvency
while providing affordable gas
service to remaining gas users
Staffing and
funding needs to
be evaluated
Dec 2024 Not started
10.a
Packet Pg. 300
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 18 of 32
3. 2023-2025 Sustainability Section Work Plan: Creating a More Sustainable Natural Environment
In Palo Alto, we have a Sustainability and Climate Action Plan (S/CAP) because we include sustainability areas that don’t necessarily have a direct impact on
greenhouse gas reductions, but have critically important sustainability, public health and safety, regional, resource conservation, and equity benefits that
contribute to overall climate action. The Sustainability area Key Actions were prioritized based on the co-benefits analysis conducted by AECOM.
Work Item
Key
Action Description
Resource
Availability
Target
Completion
Date Status (Dec 2022)
8.A Maximize Water Conservation and
Efficiency
W1 Maximize cost-effective water
conservation and efficiency through
incentives, outreach/education, and
other programs
Fully funded On-going This is an on-going effort
8.B Design and build a salt removal
facility for the Regional Water
Quality Control Plant
W2 Facility that will remove salt from the
recycled water produced at the RWQCP
resulting in an enhanced product
Negotiating with
Valley Water
and the City of
Mountain View
Bring to
Council for
approval by
2023
Design is 90% complete.
Council has not approved
construction of the facility
8.C Develop a “One Water” Portfolio
for Palo Alto
W3 Develop a “One Water” Portfolio that
includes stormwater, recycled water,
on-site reuse, conservation, and
groundwater
Fully funded August 2023 Study underway by staff
and consultant
8.D Develop a tool for dynamic water
planning in the future
W4 Excel-based tool for water planning Fully funded August 2023 Included as deliverable
under One Water
consulting contract
8.E Complete the Sea Level Rise
Vulnerability Assessment
S1 Complete a Sea Level Rise Vulnerability
Assessment to identify risks and hazards
to the Palo Alto Baylands, City
infrastructure, and residential and
business property, considering high tide,
100-year coastal storm event scenarios
and rising shallow groundwater impacts
Fully funded Fall 2022 Completed in Fall 2022
10.a
Packet Pg. 301
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 19 of 32
Work Item
Key
Action Description
Resource
Availability
Target
Completion
Date Status (Dec 2022)
8.F Develop a Sea Level Rise
Adaptation Plan
S2 Develop a Sea Level Rise Adaptation
Plan with goals to 1) Preserve and
Expand Habitat, and 2) Protect City and
Community Assets, and Private Property
Partially funded
to develop the
plan, and
funding needed
for plan and
implementation
2024 Preparing a contract
amendment AECOM so
that we can move to the
second phase of the
project, which is to
develop a Sea Level Rise
Adaptation Plan over the
coming months with the
goal of bringing a plan to
Council in 2024
8.G Begin design process for a levee
projects
S3 Determine levee alignment and begin
design process for a levee project that
protects the Palo Alto community from
sea level rise, and incorporates other
related priorities including habitat
restoration, recreation, transportation,
City facilities, and community properties
Funded by US
Army Corps of
Engineers (50%
Fed) and Valley
Water / CA
Coastal
Commission
(50% Non-Fed)
*PA staff is
participating in
the analysis
2024 Levee alignment will be
determined by 2024
8.H Identify Protection Strategies from
Significant Flood Events at Newell
Road Bridge
S4 Complete Newell Road Bridge
improvements
Funded by
Caltrans / local
sponsor
(SFCJPA)
2024 Preparing construction
documents and initiating
right-of-way aquisition
8.I Identify Protection Strategies from
Significant Flood Events at Pope
Chaucer Bridge and Creek
S4 Complete Pope Chaucer Bridge and
Creek widening improvements
Applied for
grants and
secured partial
funding through
SFCJPA / partner
agencies
contributions
2025-2026 Analysing existing
conditions within Creek to
verify structural integrity
10.a
Packet Pg. 302
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 20 of 32
Work Item
Key
Action Description
Resource
Availability
Target
Completion
Date Status (Dec 2022)
8.J Identify Protection Strategies from
Significant Flood Events
S4 Working with San Francisquito Creek
Joint Powers Authority (SFCJPA) partner
agencies to identify strategies to protect
the community from flows that exceed
the 70-year + storm event
Part of SFCJPA
operating
budget – Palo
Alto contributes
1/5 of operating
budget
On-going This is an on-going
coordination effort
with Stanford (the entity
not the University)
8.K Implement Foothills Fire
Management Plan
S5 Implement the Foothills Fire
Management Plan to balance
conservation of natural resources with
reduction of fire hazards especially in
open space areas
Partially funded On-going This is an on-going effort
8.L Minimize Fire Hazards Through
Zoning
S6 Minimize fire hazards by maintaining
low density zoning in wildland fire
hazard areas and enforcing building
codes for fire resistant construction
Staff available On-going This is an on-going effort
8.M Collaborate on Reducing Wildfire
Hazards
S7 Coordinate with other Fire agencies
through the Santa Clara County Fire
Chiefs Association and CalFire
Staff available On-going This is an on-going effort
8.N Implement CAL FIRE Public
Education Programs
S8 Implement CAL FIRE recommended
programs in educating and involving the
local community to diminish potential
loss caused by wildfire and identify
prevention measures to reduce those
risks
Fully Funded On-going This is an on-going effort
10.a
Packet Pg. 303
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 21 of 32
Work Item
Key
Action Description
Resource
Availability
Target
Completion
Date Status (Dec 2022)
8.O Increase Palo Alto’s Tree Canopy
and establish a baseline and Key
Performance Indicator for carbon
storage of tree canopy
N1
N5
Develop programs to plant trees to
increase tree canopy – that will be
integrated with traditional tree planting
programs and Green Stormwater
Infrastructure programs – and provide
carbon sequestration, improve water
quality, capture stormwater when
feasible, and reduce the urban heat
island effect
Partially funded,
Staff available
as time permits
Establish
baseline by
2024
New canopy cover GIS
tool recently launched,
which will help establish a
baseline
8.P Ensure No Net Tree Canopy Loss
for all Projects
N2 Ensure no net tree canopy loss for all
Projects
Staff available On-going This is an on-going effort
to implement the updated
Tree Ordinance (effective
July 21, 2022)
8.Q Reduce Pesticide Use in Parks and
Open Space Preserves
N3 Continue to review the use of pesticides
in all parks and open space preserves to
identify opportunities to further reduce
and eliminate the use of pesticides
Staff available
as time permits
On-going This is an on-going effort
8.R Coordinate Implementation of City
Natural Environment-Related
Plans
N7 Coordinate implementation of the
Urban Forest Master Plan, Parks Master
Plan, Green Stormwater Infrastructure
Plan and other citywide planning efforts
through interdepartmental collaboration
Staff available
as time permits
On-going This is an on-going effort
8.S Support the Green Stormwater
Infrastructure (GSI) Plan and
incorporate GSI in Municipal
Projects
N10
N11
Establish policies and ordinance changes
as needed to support the Green
Stormwater Infrastructure Plan as
required due to Municipal Regional
Stormwater Permit
Staff available
as time permits;
Partially funded
through GSI
On-going This is an on-going effort
to achieve a 10% increase
in land area that uses
green stormwater
infrastructure to treat
urban water runoff
10.a
Packet Pg. 304
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 22 of 32
Work Item
Key
Action Description
Resource
Availability
Target
Completion
Date Status (Dec 2022)
8.T Encourage Food Waste Prevention
and Require Food Recovery from
Commercial Food Generators
ZW1 Encourage food waste prevention and
require edible food recovery for human
consumption from commercial food
generators
Staff and County
funded program
staff available;
Funded for FY
2023, may need
funding for FY
2024
On-going Began 1/1/2022 per
SB1383 requirements
8.U Promote Residential Food Waste
Reduction
ZW2 Create a new campaign to promote
residential food waste reduction
Existing
outreach
funding
Launch by July
2023
Campaign strategy in
development, for launch
by July 2023
8.V Champion Waste Prevention,
Reduction, Reusables, and the
Sharing Economy
ZW3 Promote adoption of a “Zero Waste
lifestyle”, stimulate value of reuse,
repair
Existing
outreach
funding for
initial
promotion of a
“Zero Waste
lifestyle”; may
need future
funding for
stimulating
reuse, repair
On-going This is an on-going effort
8.W Provide Waste Prevention
Technical Assistance to the
Commercial Sector
ZW4 Develop an outreach tool and technical
assistance to the commercial sector
Existing
outreach
funding
Launch in 2023 Outreach tool and
technical assistance in
development, for launch
in 2023
8.X Prioritize Domestic Processing of
Recyclable Materials
ZW5 Prioritize domestic processing of
recyclable materials
Request for
additional
$500,000
On-going Domestic processing for
Mixed Paper and Mixed
Rigid Plastics began April
2022.
Went to Council in
November 2022 to
request additional funding
10.a
Packet Pg. 305
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 23 of 32
Work Item
Key
Action Description
Resource
Availability
Target
Completion
Date Status (Dec 2022)
8.Y Eliminate Single-Use Disposable
Containers
ZW6 Eliminate single-use disposable
containers by expanding the Disposable
Foodware Ordinance
Funded for
Ordinance
Requirement,
need additional
funding for
infrastructure
and
implementation
of future
requirements
Launch in 2024 Strategy and timeline in
development, for launch
in 2024
8.Z Expand the Deconstruction and
Construction Materials
Management Ordinance
ZW7 Expand the Deconstruction and
Construction Materials Management
Ordinance
Additional staff
and funding
needed
Launch by
January 2026
Expand types of covered
projects or increase
diversion requirements,
collaborate with other
Departments; consider
including in next Reach
Code Cycle to be
implemented in January
2026
8.aa Implement Reach Code standard
for Low Carbon Construction
Materials
ZW8 Implement Reach Code standard for low
carbon construction materials
If approved,
additional staff
and funding
needed
Launch January
1, 2023
Reach Code going to
Council for approval in
October 2022. If
approved, will go into
effect January 1, 2023
10.a
Packet Pg. 306
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 24 of 32
Appendix A: S/CAP Work Plan Timeline
2023-2025 Sustainability Workplan.xlsx
10.a
Packet Pg. 307
Draft S/CAP Three-Year Work Plan – Updated Fall 2022
Page
25 of 32
Appendix B: How Climate Actions were Prioritized
The chart below gives an overview of how various emissions reduction activities were prioritized based on various
factors. Activities were divided up into four priority tiers:
A.Prioritize for immediate action
B.Prioritize in areas where grid modernization has been completed
C.Requires additional study or stakeholder engagement to determine priority
D.Prioritize only if resources are available
A fuller blue bubble denotes a program that ranks more favorably when considering S/CAP implementation efforts. For
example, a program with a full blue bubble in the “Total emissions reduction potential” column has more emissions
reduction potential than one with a partially filled bubble. See next page for more detail.
Activity
Cost effective
(per metric
ton basis)
Total emissions
reduction
potential
Minimizes
Electric Utility
Impacts
Policy leverage
–City ability to
impact
Funding
Source
Availability
Priority
Tier
Mobility – Bicycling /
Alternative Modes C
Visitor EV adoption D
New buildings/ADU A
Single-Family
Water Heating A
Space Heating (w/ A/C) B
Space Heating (w/o A/C) B
Other Building Equipment B
Electric Vehicles A
Multi-Family
Building retrofits (1) C
Electric Vehicles A
Non-Residential
Rooftop HVAC A
Other building equipment (2) C
Fleet Electrification D
Commuter EVs
Small/Med Business (1) B
Major Facilities (1) B
1. Tentative ranking based on some preliminary ideas that need more exploration, which will take staff time
2. Tentative conclusion based on initial impact analysis, needs more study
Insights:
•Mobility and EVs are the most cost-effective actions and the City has significant policy leverage in the Mobility area.
•The City has less policy leverage to drive EV adoption, but there are a few areas where it has potential policy
leverage, such as increasing EV charger access.
10.a
Packet Pg. 308
Draft S/CAP Three-Year Work Plan – Updated Fall 2022
Page
26 of 32
• Electrification of single-family building equipment is worth prioritizing under most criteria. Heat pump water heaters
can be promoted citywide. Other equipment should be promoted primarily in neighborhoods with upgraded utility
infrastructure.
• Commercial building rooftop packaged HVAC units are worth prioritizing and may have fewer electric utility impacts
than other electrification measures.
• More study is needed to identify other viable building electrification actions in the commercial sector.
• More study is also needed on multi-family building electrification.
How to Ratings were Determined:
- Rating, high (filled bubble) to low (empty bubble)
Cost effective (MT
CO2-e)3
Total emissions
reduction
potential**
Minimizes Electric
Utility Impacts
Policy leverage –
City ability to
impact
Funding Source
Availability*
Deep cost savings >25,000 MT/yr
No permit review,
does not impact
utilities
City policy has high
impact
Resources / staffing
available in existing
budget, no added
funds needed
Modest cost savings 15,000 – 25,000
MT/yr
Permit review, but
rare utility upgrades
Dedicated funding
source under City
control, sufficient
for pilot programs
Break even 10,000 – 15,000
MT/yr
Permit review,
causes some utility
upgrades
Lower cost
($0/MT -$200/MT)
5,000 – 10,000
MT/yr
Frequent utility
impacts, must
develop programs
to limit impact.
No dedicated
funding source for
S/CAP pilots, grants
may be available
High cost
(>$200/MT) Minimal potential
Utility upgrades
often needed,
cannot be avoided
Little or no ability to
impact
No dedicated
funding source for
S/CAP pilots
* It may not be possible to use the same funding source to achieve all goals using the same funding source. For example,
Low Carbon Fuel Standard revenue might be available to fund residential EV programs or workplace charging programs,
but not both.
** This represents the full potential contribution of this type of activity to achieving the 80x30 goals, not just the
emissions reductions associated with the 2022-2024 work plan.
3 Metric tons (MT) of carbon-dioxide equivalent (CO2-e), a common measure of greenhouse gas emissions quantity.
10.a
Packet Pg. 309
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 27 of 32
Climate Actions by Individual Prioritization Criteria
Key Actions by Cost per Metric Ton of Carbon Dioxide Equivalent Reduced4
4 Cost per metric ton shown as a range from a low-cost scenario to a high-cost scenario
10.a
Packet Pg. 310
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 28 of 32
Total Citywide Emissions by Source (MT CO2-e)5
5 Metric tons (MT) of carbon-dioxide equivalent (CO2-e), a common measure of greenhouse gas emissions quantity.
10.a
Packet Pg. 311
Draft S/CAP Three-Year Work Plan – Updated Fall 2022
Page
29 of 32
Appendix C: Policy Guidelines for Electric Vehicle Strategic Plan Development
Work item 2.5A calls for the development of an electric vehicles strategic plan, which would guide implementation of
several work items. The strategic plan would also relate to a reliability and resiliency strategic plan to be developed in
parallel.
Objectives
1. Promote residential, workplace, and visitor electric vehicle adoption
2. Lower the cost and carbon emissions of EV charging as much as possible
3. Decrease the impact of electric vehicle charging on the local electric distribution system
4. Explore how electric vehicles could contribute to the efficient and reliable operation of the statewide and local
electric system
5. Explore the use of electric vehicles for increased home resiliency
6. Evaluate the reliability and resiliency needs of an electrified transportation system and the City’s role in fulfilling
those needs
Concepts to explore adding to Strategic Plan
• Scalable programs to provide charging for multi-family and income-qualified households
• Scalable programs to provide workplace and visitor charging
• The role of publicly-owned charging in providing multi-family, income-qualified, workplace, and visitor charging
• How much high-speed charging is needed in Palo Alto and where it should be located
• Business models to make commuter and visitor mid-day low-cost, low-carbon charging more attractive than
overnight home charging
• New technologies such as vehicle to load, vehicle to home, and vehicle to grid and their roles in providing home
resiliency and improving the efficiency and reliability of the statewide and local electric systems
• Lower wattage chargers and charging behaviors
• Time of day pricing and other ways to encourage off-peak and mid-day charging
• The role of smaller electric vehicles such as e-bikes and e-scooters in transportation emissions reduction
• The role of regional partnerships in driving electric vehicle adoption for commuters and visitors
10.a
Packet Pg. 312
Draft S/CAP Three-Year Work Plan – Updated Fall 2022
Page
30 of 32
Appendix D: Policy Guidelines for Reliability and Resiliency Strategic Plan Development
Work item 1B calls for the development of a reliability and resiliency strategic plan, which would guide implementation
of reliability and resiliency work items. This would be coordinated with development of an electric vehicle strategic plan.
Objectives
1.Maintain and improve electric system reliability
2.Improve utility outage communication
3.Prepare the electric system for increased penetration of solar, batteries, electric vehicles and chargers,
electrified building equipment, and similar new technologies
4.Optimize the use of local grid capacity in a cost-effective way
5.Promote technologies and behaviors that contribute to the efficient and reliable operation of the statewide and
local electric system
Concepts to explore adding to Strategic Plan
•Addressing utility workforce issues
•Replacing aging infrastructure as part of a grid modernization plan
•Installing additional switching and other solutions to improve reliability and recovery from outages as part of a
grid modernization effort
•Improving utility outage management system and communications protocols
•Technologies like vehicle to load or vehicle to home for home resiliency
•Equity in resiliency – how to provide resiliency to income-qualified residents
•Neighborhood-level resiliency solutions such as microgrids and local utility-scale battery storage
•Community emergency center resiliency
•Mobile battery strategies, such as large electric vehicles that could double as emergency resiliency solutions
•Promoting low-wattage electrification solutions to reduce grid impacts of vehicle and building electrification
•Time of day pricing and other ways to encourage shifting electric use to times of day with lower emissions, lower
utility cost, and lower local grid impact
•Increasing transformer capacity to accommodate higher loads
10.a
Packet Pg. 313
Appendix E: Index of Key Actions and the Work Items that Implement them
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 31 of 32
Key Action Title
Work
Item(s)
C1. Provide Building and
Transportation Emissions
Consultations for Residents
P2.1B
C2. Develop Major Employer Custom
Emissions Reduction Plans
P2.2C
C3. Study Additional Key Actions
Needed for 80 x 30
P4.A,
P4.B,
P4.C
C4. Study Staffing and Budgetary
Needs
P5.B
C5. Study Funding Alternatives P5.C
C6. Conduct an Electrification
Affordability Study
P5.D
C7. Study Carbon Neutrality Options
C8. Accelerate GHG reductions
through Mandates or Price Signals
P2.1K,
P2.2A,
P2.2B,
P2.2D
E1. Reduce GHG emissions in Single-
Family Appliances and Equipment
P2.1D,
P2.1E,
P2.1F,
P2.1G,
P2.1H
E2. Reduce GHG emissions in Non-
Residential Equipment
P2.2A,
P2.2B,
P2.2C
E3. Reduce Gas Use in Major Facilities P2.2C
E4. Reduce Natural Gas Use at City
facilities
P2.4A,
P2.4B,
P2.4C
E5. Support Income-Qualified
Residents and Vulnerable
Businesses with Electrification
P5.D,
P2.1D,
P2.1I
E6. Develop Electric Rate Options P1.D
Key Action Title
Work
Item(s)
E7. Use Codes and Ordinances to
Facilitate Electrification
P2.2A,
P2.2B
E8. Electric Grid Modernization Plan P1.A,
P1.B,
P1.C
E9. Additional Electrification
Opportunities in Commercial and
Multi-Family Buildings
P4.B
EV1. Raise Awareness of Alternative
Transportation Modes,
Micromobility, and EVs.
P2.1A,
P2.2D
EV2. Collaborate to Promote EV
Adoption Regionally
P2.2E
EV3. Promote EV Adoption and
Alternative Commutes for
Commuters
P2.2C,
P2.2D
EV4. Facilitate the Adoption of EVs, E-
bikes and other Light EVs.
P2.1A,
P2.1C,
P2.2D
EV5. Promote Alternative
Transportation Modes and
Infrastructure To Support Adoption
P2.1I,
P2.1J
EV6. Expand EV Charging Access for
Multi-Family Residents
P2.1J,
P2.1K
P2.4F
EV7. Improve EV Charging Access for
Income-Qualified residents
P2.1I,
P2.1J,
P2.1K
P2.4F
EV8. Ensure EV Charging Capacity
Supports EV Growth
P2.1K,
P2.2D,
P2.4C
P2.4F
Key Action Title
Work
Item(s)
EV9. Electrify Municipal Vehicle Fleet P2.4D,
P2.4E
EV10. Support Policy to Electrify Fleet
Vehicles
P2.2E
M1. Increase Active Transportation
and Transit for Local Work Trips
P2.3A
M2. Expand Availability of Transit and
Shared Mobility Services
P2.3D,
P2.3E
M3. Implement the Bicycle and
Pedestrian Transportation Plan
P2.3F,
P2.3G
M4. Improve Transportation Demand
Management for Employees and
Residents
P2.3H
M5. Implement Smart Parking
Infrastructure in Public Garages
and Parking Fees in Business
Districts
P5.C,
P2.3I,
P2.3J
M6. Study Land Use and
Transportation
M7. Continue to Implement the City’s
Housing Element
P2.3B,
P2.3C
M8. Improve Transit and Traffic Flow P2.3K
M9. Create Housing Density and Land
Use Mix that Supports Transit and
Non-SOV Transportation
P2.3B,
P2.3C
M10. Encourage Reductions in GHGs
and VMT
P4.A,
P4.C
W1. Maximize Water Conservation
and Efficiency
8.A
W2. Build a Salt Removal Facility 8.B
W3. Implement One Water Portfolio
Projects
8.C
W4. Develop a Dynamic Water
Planning Tool
8.D
10.a
Packet Pg. 314
Draft S/CAP Three-Year Work Plan – Updated Fall 2022 Page 32 of 32
Key Action Title
Work
Item(s)
S1. Complete a Sea Level Rise
Vulnerability Assessment
8.E
S2. Implement a Sea Level Rise
Adaptation Plan
8.F
S3. Begin Design Process for a Levee
Project
8.G
S4. Identify Protection Strategies from
Significant Flood Events
8.H, 8.I,
8.J
S5. Implement the Foothills Fire
Management Plan
8.K
S6. Minimize Fire Hazards Through
Zoning
8.L
S7. Collaborate on Reducing Wildfire
Hazards
8.M
S8. Implement CAL FIRE Public
Education Programs
8.N
N1. Increase Palo Alto's Tree Canopy 8.O
N2. Ensure No Net Tree Canopy Loss
for all Projects
8.P
N3. Reduce Pesticide Use in Parks and
Open Space Preserves
8.Q
N4. Enhance Pollinator Habitat
N5. Establish a Carbon Storage of Tree
Canopy Baseline and KPI
8.O
N6. Maximize Biodiversity and Soil
Health
N7. Coordinate Implementation of
City Natural Environment-Related
Plans
8.R
N8. Expand Water Efficient Landscape
Ordinance (WELO) Requirements
N9. Phase out Gas-Powered Lawn and
Garden Equipment
Key Action Title
Work
Item(s)
N10. Support the Green Stormwater
Infrastructure Plan
8.S
N11. Incorporate Green Stormwater
Infrastructure in Municipal Projects
8.S
ZW1. Encourage Food Waste
Prevention and Require Food
Recovery from Commercial Food
Generators
8.T
ZW2. Promote Residential Food Waste
Reduction
8.U
ZW3. Champion Waste Prevention,
Reduction, Reusables, and the
Sharing Economy
8.V
ZW4. Provide Waste Prevention
Technical Assistance to the
Commercial Sector
8.W
ZW5. Prioritize Domestic Processing of
Recyclable Materials
8.X
ZW6. Eliminate Single-Use Disposable
Containers
8.Y
ZW7. Expand the Deconstruction and
Construction Materials
Management Ordinance
8.Z
ZW8. Implement Reach Code standard
for Low Carbon Construction
Materials
8.aa
10.a
Packet Pg. 315
2023 - 2024 Sustainability and Climate Change – Protection and Adaptation Work Plan Last Updated ________Last Updated ________
Jan/Feb Mar/Apr May/June July/Aug Sep/Oct Nov/Dec Jan/Feb Mar/Apr May/June July/Aug Sep/Oct Nov/Dec Jan/Feb Mar/Apr May/June July/Aug Sep/Oct Nov/Dec
P1.A Grid Modernization Study
P1.B Reliability and Resiliency Strategic Plan
Development
P1.C Reliability and Resiliency Strategic Plan
Implementation
P2.1 A Promote EV Adoption
P2.1 B Emissions Reduction Advisory Services
P2.1 C Small electric vehicles (e.g. e bike) program
P2.1 D Heat Pump Water Heater Electrification Pilot
Program
P2.1 E Full-Scale Heat Pump Water Heater
Electrification Program
P2.1 F Electrification data collection program
P2.1 G Pilot Programs for Modernized
Neighborhoods
P2.1 H Single-family Electrification Rebates
P2.1 I Affordable Housing EV Charging and
Electrification Pilot
P2.1 J Multi-Family EV Charger Program
P2.1 K Multi-Family and Affordable Housing EV
Charger Access Strategy
P2.2 A Rooftop Packaged Heating, Ventilation, and
Air Conditioning (HVAC) Pilot
P2.2 B Rooftop Packaged HVAC Advanced Pilot
Design
P2.2 C Major Employer Partnerships
P2.2 D Commuter Transportation & EV Charging
Strategy
P2.2 E Regional and State Partnerships
P2.3 A Transportation and Land Use Policies and
Programs
P2.3 B Housing Element Adoption
P2.3 C Housing Element Implementation
P2.3 D Micro-mobility evaluations
P2.3 E On-demand transit pilot
P2.3 F Update Bicycle Plan
P2.3 G Vision Zero Program
P2.3 H Evaluate expansion of employer
transportation demand management (TDM)
P2.3 I Proposals for Managing Downtown Parking
Availability
Council
adoption
P2.3 J Implement Efficient Downtown Parking
Management
P2.3 K Traffic Signal Improvements & Transit Signal
Priority
P2.4 A Facility Electrification Assessment Plan
Continue ongoing transportation programs, traffic management, and partnerships and land use regulatory activity
Adopt plan
Implementation of Housing Element programs as outlined in Housing Element and as funded via grants and annual budget requests
Evaluate opportunities to pilot bike/scooter share and neighborhood mobility hub pilots to provide last-mile connections as staff time becomes available
Launch Pilot Pilot program in operation
2.2. Non-Residential
Emissions Reduction
Programs
Multi-Family
Residential
Single-Family
Residential
All Residential
2.
1
R
e
s
i
d
e
n
t
i
a
l
E
m
i
s
s
i
o
n
s
R
e
d
u
c
t
i
o
n
P
r
o
g
r
a
m
s
Timeline to be determined, depends on staffing and funding availability
Evaluate possible alternatives to expand TDM ordinance requirements and/or voluntary TDM services (e.g. expanding the Transportation Management Association) as staff time becomes available
Complete evaluation of potentially scaalable strategies for multi-family and affordable housing EV
charging and/or building electrification, including evaluating the role of publicly-owned EV charging
Achieve installations at four to five sites through existing rooftop HVAC pilot program
Program design and approvals Assuming grid modernization has made enough progress, launch program(s)
Cost-effectiveness studies to determine rebate amounts, software configuration, launch
preparation Rebate launch
Complete pilot design, hire consultant
Ongoing data collection
Ongoing Ongoing
Get phone advisory services up and running
Determine work plan for online services, begin implementation
Complete evaluation Program implmentation? To be determined depending on results of program evaluation and
staffing and funding analysis.
Ongoing program activity with the goal of providing EV charging in buildings
representing 10% of multi-family units in Palo Alto by 2025
Complete evaluation of potentially scaalable strategies for multi-family and affordable housing EV
charging and/or building electrification, including evaluating the role of publicly-owned EV
charging+L20:U20
Ongoing program activity with the goal of providing EV charging in buildings
representing 10% of multi-family units in Palo Alto by 2025
202520232024
Complete study, design, and bring contractor on board
following certification of environmental review Construction to increase capacity
Develop strategic plan
Ongoing
Priority 1. Grid
Modernization
2.3 Citywide Mobility
Staff and Consultant Work
at
i
o
n
Work to achieve program goals
Do program evaluation, assuming advanced pilot
program goals are on track to be met.Transition to full scale program
Finalize S/CAP and 2021 GHG
Inventory
Finalize CEQA Documents S/CAP Implementation
Complete 2022 GHG Inventory
S/CAP Implementation
Complete 2023 GHG Inventory
S/CAP Implementation
Start Work Plan Update
Finalizing Facility Electrification Assessment Plan
Implementation based on timelines in Reliability and Resiliency Strategic Plan
Implement pilot project
Complete evaluation and develop recommendations for future programs Implement any adopted commute or EV charging programs
Develop work plan and identify promising partnerships Continued participation in chosen partnerships, exploration of new partnerships Continued participation in chosen partnerships, exploration of new partnerships
Develop proposal for an advanced pilot program and/or mandate and present to Council Launch program and/or mandate if approved Ongoing program management, if program is approved
Develop custom ermissions reduction and sustainability partnership with at least one major
employer. Develop electrification pilots with City facilities and PAUSD Develop additional employer partnerships Develop additional employer partnerships
Hire parking management consultant Ongoing program management
Cl
i
m
a
t
e
C
h
a
n
g
e
(
B
u
i
l
d
i
n
g
s
,
M
o
b
i
l
i
t
y
,
E
V
s
)
Pr
i
o
r
i
t
y
2
:
L
a
u
n
c
h
P
r
o
g
r
a
m
s
Hire consultant, kick off study Study completion and plan adoption Plan implementation
Maintain and modernize current traffic signals and central management systems. Use technology to improve traffic operations and safety. Work with transit providers on transit signal priority where feasible.
Ongoing program operation
Get program up and running by December 2023 Ongoing data collection
10.b
Packet Pg. 316
P2.4 B Facility Electrification Assessment
Implementation
P2.4 C Electrify Equipment at City Facilities during
Routine Replacement
P2.4 D Electrify City Vehicle Fleet
P2.4 E Build City Fleet and Employee Charging
Infrastructure
P2.4 F Publicly-owned charger strategic plan
P2.5A Electric Vehicle Strategic Plan Development
P3.1 A Build awareness of the need for climate
action
P3.1 B Drive community actions to achieve S/CAP
goals
P3.1 C S/CAP Survey Program
P3.1 D S/CAP Reporting CDP Report CDP Report CDP Report
P3.1 E Build confidence in the City’s electric
infrastructure
P4 A Multi-family and Commerical End Use Study
P4 B Idea generation and additional research
P4 C Additional Emissions Reduction Project
Prioritization
P5 A Resource Needs Assessment
P5 B. Funding Alternatives
P5 C. Affordability Study
P5 D. Gas Utility Financial and Operating Plan
8.A Maximize Water Conservation and Efficiency
8.B Design and build a salt removal facility for the
Regional Water Quality Control Plant
8.C Develop a “One Water” Portfolio for Palo Alto
8.D Develop a tool for dynamic water planning in the
future
8.E Complete the Sea Level Rise Vulnerability
Assessment Completed
8.F Develop a Sea Level Rise Adaptation Plan
8.G Begin design process for a levee projects
8.H Identify Protection Strategies from Significant
Flood Events at Newell Road Bridge
8.I Identify Protection Strategies from Significant
Flood Events at Pope Chaucer Bridge and Creek
8.J Identify Protection Strategies from Significant
Flood Events
8.K Implement Foothills Fire Management Plan
8.L Minimize Fire Hazards Through Zoning
8.M Collaborate on Reducing Wildfire Hazards
8.N Implement CAL FIRE Public Education Programs
8.O Increase Palo Alto’s Tree Canopy and establish a
baseline and Key Performance Indicator for carbon
storage of tree canopy
8.P Ensure No Net Tree Canopy Loss for all Projects
8.Q Reduce Pesticide Use in Parks and Open Space
Preserves
Develop programs to plant trees to increase tree canopy – that will be integrated with traditional
tree planting programs and Green Stormwater Infrastructure programs – and provide carbon
sequestration, improve water quality, capture stormwater when feasible, and reduce the urban
heat island effect
Establish baseline and Key Performance Indicator for carbon storage of tree canopy; implement
programs to increase tree canopy On-going implementation of programs to increase tree canopy
On-going effort to implement the updated Tree Ordinance (effective July 21, 2022)
On-going effort to review the use of pesticides in all parks and open space preserves to identify opportunities to further reduce and eliminate the use of pesticides
On-going work with San Francisquito Creek Joint Powers Authority (SFCJPA) partner agencies to identify strategies to protect the community from flows that exceed the 70-year + storm event
On-going implementation of the Foothills Fire Management Plan to balance conservation of natural resources with reduction of fire hazards especially in open space areas
Ongoing work to minimize fire hazards by maintaining low density zoning in wildland fire hazard areas and enforcing building codes for fire resistant construction
On-going coordinatation with other Fire agencies through the Santa Clara County Fire Chiefs Association and CalFire
On-gong implementation of CAL FIRE recommended programs in educating and involving the local community to diminish potential loss caused by wildfire and identify prevention measures to reduce those risks
Preparing construction documents and initiating right-of-way aquisition Construction of Newell Road Bridge improvements
Analysing existing conditions within Creek to verify structural integrity Prepare construction documents Construction of Pope Chaucer Bridge and Creek widening improvement
Maximize cost-effective water conservation and efficiency through incentives, outreach/education, and other programs
Design is 90% complete. Bring to Council for approval of construction of the facility
Study underway by staff and consultant Implementation of a “One Water” Portfolio that includes stormwater, recycled water, on-site reuse, conservation, and groundwater
Included as deliverable under One Water consulting contract
Develop a Sea Level Rise (SLR) Adaptation Plan CEQA Review of Sea Level Rise Adaptation Plan Bring SLR Adaptation Plan to
Council for Approval Implement Sea Level Rise Adaptation Plan
Explore Public Charging Pilot Develop publicly-owned charger strategic plan
Determine levee alignment for a levee project that protects the Palo Alto community from sea level rise, and incorporates other related priorities including habitat restoration, recreation,
transportation, City facilities, and community properties Begin design process
Complete multi-family and non-residential end use survey to identify promising emissions
reduction opportunities, develop recommendations based on survey
Continuing Council discussions of potential funding options
Ongoing engagement, including Sustainability Newsletter, Climate Action Blog, Social Media, Sustainability Hub, Electrification Portal, Website Updates, Utility Bill Inserts, Workshops, webinars, and departmental collaboration
Ongoing engagement, including Sustainability Newsletter, Climate Action Blog, Social Media, Sustainability Hub, Electrification Portal, Website Updates, Utility Bill Inserts, Workshops, webinars, and departmental collaboration
On-going
On-going marketing On-going Marketing
Develop Surveys Conduct Surveys
On-going Marketing
Conduct Surveys
Seek ideas for emissions reductions from community, experts.
Monitor emerging technologies.
Evaluate new programs based on findings of studies
Study those ideas and technologies with highest potential
Building City Fleet Infrastructure is on-going, assessing Employee Charging Infrastructure
On-going
On-going
On-going
On-going
On-going
On-going On-going
On-going
On-going
Natural Environment
Climate Adaptation and Sea
Level Rise
Water
2.4 City Facilities and
Fleet
Su
s
t
a
i
n
a
b
i
l
i
t
y
a
n
d
C
l
i
m
a
t
e
A
c
t
i
o
n
P
l
a
n
(
S
/
C
A
P
)
a
n
d
C
l
i
m
a
t
e
C
h
a
n
g
e
-
P
r
o
t
e
c
t
i
o
n
a
n
d
A
d
a
p
t
a
Su
s
t
a
i
n
a
b
i
l
i
t
y
Priority 4. Studies and
Analysis
Priority 5. Funding Needs
and Funding Sources
Develop financial and operating plan for contracting gas utility
Implement any follow-up actions from prior year studies
Implement any follow-up actions from prior year studies
2.5 EV Strategic Plan Develop EV Strategic Plan to coordinate efforts on various EV work items
Earth Day Report Earth Day Report Earth Day Report
Priority 3: Build Confidence
and Awareness
Complete RFP for consultant to do end use survey.
Summarize resource needs for a selection of pilots, advanced pilots,
full-scale programs + commercial end-use research program
Study funding options available to fund programs evaluated in work item 4.B for most promising
electrification programs, present findings to Council.
Complete affordability study to inform funding needs and program design
10.b
Packet Pg. 317
8.R Coordinate Implementation of City Natural
Environment-Related Plans
8.S Support the Green Stormwater Infrastructure
(GSI) Plan and incorporate GSI in Municipal Projects
8.T Encourage Food Waste Prevention and Require
Food Recovery from Commercial Food Generators
8.U Promote Residential Food Waste Reduction
8.V Champion Waste Prevention, Reduction,
Reusables, and the Sharing Economy
8.W Provide Waste Prevention Technical Assistance
to the Commercial Sector
8.X Prioritize Domestic Processing of Recyclable
Materials
8.Y Eliminate Single-Use Disposable Containers
8.Z Expand the Deconstruction and Construction
Materials Management Ordinance
8.aa Implement Reach Code standard for Low Carbon
Construction Materials
Council Study
Session on
S/CAP Progress
Report
Council Study
Session on
S/CAP Progress
Report
Council Approval of Sea Level
Rise Adaptation Plan
Council certification of CEQA
and adoption of S/CAP, Council
Meeting on Earth Day Report
CEQA Public Review S/CAP Implementation Resources, Updates, Outreach, and
Webinars
Cross-promotional efforts with external partners and
COPA departments (e.g. Library)
Cross-promotional efforts with external partners and
COPA departments (e.g. Library)
Cross-promotional efforts with external partners and
COPA departments (e.g. Library)
On-going effort to encourage food waste prevention and require edible food recovery for human consumption from commercial food generators. Began 1/1/2022 per SB1383 requirements. May need funding for FY 2024
Campaign strategy in development Implement campaign to promote residential food waste reduction
On-going effort to promote adoption of a “Zero Waste lifestyle”and stimulate value of reuse,
repair. On-going effort to promote adoption of a “Zero Waste lifestyle”and stimulate value of reuse, repair. May need funding for stimulating reuse, repair outreach
Develop an outreach tool and technical assistance to the commercial sector Implement outreach tool and technical assistance to the commercial sector
On-going effort to prioritize domestic processing of recyclable materials. Domestic processing for Mixed Paper and Mixed Rigid Plastics began April 2022.
Developing strategy and timeline to eliminate single-use disposable containers by expanding the Disposable Foodware Ordinance Implement the expanded Disposable Foodware Ordinance
Implement Reach Code standard for low carbon construction materials (pending Council approval in October 2022)
Expand types of covered projects or increase diversion requirements, collaborate with other Departments; consider including in next Reach Code Cycle to be implemented in January 2026Determine the most effective way of expanding the Deconstruction and Construction Materials
Management Ordinance
On-going effort to coordinate implementation of the Urban Forest Master Plan, Parks Master Plan, Green Stormwater Infrastructure Plan and other citywide planning efforts through interdepartmental collaboration
On-going effort to achieve a 10% increase in land area that uses green stormwater infrastructure to treat urban water runoff
Zero Waste
COUNCIL AND
COMMISSION MEETINGS
COMMUNITY
ENGAGEMENT
S/CAP Implementation Resources, Updates, Outreach, and Webinars S/CAP Implementation Resources, Updates, Outreach, and Webinars
10.b
Packet Pg. 318
Background on Sustainability and Climate Action Plan (S/CAP) Development
•April 2016: City Council adopted the ambitious goal of reducing GHG emissions to 80 percent
below 1990 levels by 20301 (the “80 x 30” goal) - 20 years ahead of the State of California 80
x 50 target, and an interim step towards California’s new statewide goal of achieving carbon
neutrality by 20452.
•November 2016: the Council adopted the S/CAP Framework3, which has served as the road
map for achieving Palo Alto’s sustainability goals.
•December 2017: Council accepted the 2018-2020 Sustainability Implementation Plan “Key
Actions” as a summary of the City’s work program4.
•June 2020: The City launched an S/CAP update to determine the goals and key actions needed
to meet its sustainability goals, including the 80 x 30 goal.5
•April 2021: Staff presented a preliminary impact analysis and Council directed the Mayor to
form an S/CAP Ad Hoc Committee.6
•August 2021 to April 2022: The S/CAP Committee held several public meetings with City
staff.7
•November 17, 2021: The S/CAP Ad Hoc Committee held the first meeting of its S/CAP
Working Group, which assembled knowledgeable members of the community to consult with
Council members and City staff on S/CAP implementation priorities.
•December 13, 2021: Staff presented a Progress Report on the Sustainability and Climate
Action Plan Update and S/CAP Ad Hoc Committee Work8 to Council.
•March 7, 2022: Council and the Utilities Advisory Commission (UAC) held a joint study
session9 to discuss sustainability and utility related items.
1 https://www.cityofpaloalto.org/news/displaynews.asp?NewsID=3534&TargetID=268
2 In September 2018, Governor Brown signed California Executive Order B-55-18, setting the goal of achieving
carbon neutrality as soon as possible, and no later than 2045. The state is to maintain net negative net emissions
after 2045, meaning that GHG sinks must exceed GHG sources. The Executive Order explains that the carbon
neutrality goal is layered on top of the state’s existing commitments to reduce greenhouse gas emissions 40%
below 1990 levels by 2030 (as codified in SB 32), and 80% below 1990 levels by 2050.
3 https://www.cityofpaloalto.org/civicax/filebank/documents/60858
4 https://www.cityofpaloalto.org/civicax/filebank/documents/63141
5 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2020/id-11404-climate_sustainability-and-climate-action-
plan.pdf?t=59513.75
6 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/year-archive/2021/id-12009.pdf
7 https://www.cityofpaloalto.org/Departments/City-Clerk/City-Council-Committees/Sustainability-and-
Climate-Action-Plan-Ad-Hoc-Committee
8 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/2021/id.-13765-s-cap-update.pdf
9 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-
council-agendas-minutes/2022/20220307/20220307pccsmamendedfinal-linked.pdf
10.c
Packet Pg. 319
• April 11, 2022: Staff presented the Earth Day Report10 to Council on April 11, 2022. The Earth
Day Report described the work of the S/CAP Ad Hoc Working Group teams.
• June 14, 2022: The S/CAP Ad Hoc Working Group Teams held a public meeting to discuss their
progress on three areas that would advance residential building electrification goals:
• Engagement. The work of this team included fine-tuning messaging on residential
building electrification and developing a strategy and timeline for engagement.
• Technology. The work of this team included reviewing current and emerging technologies
and their feasibility for meeting the demands of a typical home and developing a strategy.
The team also considered the influence of electrification technologies that are
implemented on the electrical grid improvements that are needed.
• Finance. The work of this team included prioritizing the most feasible funding strategies
and developing a strategy for financing S/CAP Implementation.
The working group teams also discussed an outline of a proposed Advanced Heat Pump
Water Heater Pilot Program at the June 14 meeting. They agreed to have staff develop the
outline into a more defined proposal.
• September 27 and October 3, 2022: Staff and the S/CAP Committee recommended, and
Council accepted, the S/CAP Goals and Key Actions that would be used for environmental
review. Staff and the S/CAP Committee recommended the creation of an Advanced Heat
Pump Water Heater Pilot program and Council took several actions to enable the program to
be launched.11
10 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-
reports-cmrs/2022/id.-14174-earth-day-report-2022-edr22.pdf
11 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-
council-agendas-minutes/2022/20220927/20220927pccsmlinked-amended-v2.pdf#page=79
10.c
Packet Pg. 320
City of Palo Alto (ID # 14633)
City Council Staff Report
Meeting Date: 12/5/2022 Report Type: Information Reports
City of Palo Alto Page 1
Title: Annual Status Report on the Developer Impact Fees Schedule as of June
30, 2022
From: City Manager
Lead Department: Administrative Services
Recommendation
This is an information report; no action is required.
Discussion
The Annual Status Report on Development Impact Fees provides specific information about
development impact fees imposed by the City. The schedule prepared in accordance with
Government Code Section 66006 (AB1600) must be made available to the public at least 15
days before the Council meeting at which it is considered and within 180 days of the close of
the fiscal year. Since the report is scheduled on the City Council Agenda of January 23, 2023, it
is being included as an information report this December to allow time for public notice in
excess of the minimum 15-day advanced posting requirement. Additional information will be
available in the January 23, 2023 report.
Stakeholder Engagement
This report has been prepared by the Accounting Division and reviewed by partner
departments including the City Attorney’s Office, and the Planning and Development Services
Department.
Resource Impact
This is an Informational Report, so no actions or adjustments are needed at this time.
Environmental Review
This is not a project for purposes of the California Environmental Quality Act (CEQA).
Attachments:
•Attachment11.a:Attachment A: Development Impact Fees FY22
11
Packet Pg. 321
Attachment A
City of Palo Alto
Annual Report on Development Impact Fees
for Period Ending June 30, 2022
Stanford Research Park/San Antonio/West
FUND El Camino Fund Bayshore Fund
Purpose and Authority Traffic impact fees imposed on new Traffic impact fees imposed on new
for Collection nonresidential development in the nonresidential development in the
Stanford Research Park/El Camino San Antonio/West Bayshore Areas
Real CS zone to fund improvements to fund capacity improvements at
at eight identified intersections.four identified intersections.
PAMC Ch. 16.45, PAMC Ch. 16.46
Amount of the Fee City ceased collecting effective FY 2020 City ceased collecting effective FY 2020
Fund Balance July 1, 2021 $3,519,739 $434,996
Activity in 2021-22
Revenues
Interest Earnings 33,656 6,877
Unrealized Gain/(Loss) Investments (206,212)(34,466)
----------------------------------------------------------- --------------------------------------------------------------
Total Revenues ($172,556)($27,588)
Expenditures
Inter-Agency Expense (2,200,000) -
----------------------------------------------------------- --------------------------------------------------------------
Total Expenditures ($2,200,000) -
-------------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2022 $1,147,183 $407,408
Reserves
Other Commitments/Appropriations - -
----------------------------------------------------------- --------------------------------------------------------------
Total Reserves - -
----------------------------------------------------------- --------------------------------------------------------------
Net Funds Available $1,147,183 $407,408
USE OF FEES:USE OF FEES:
In FY 2020, City ceased collecting the Stanford
Research / El Camino Real CS Zone fee established
in 1989.
In FY 2022, $2.2M expense to fund Sharing
Agreement between the City and the County of
Santa Clara for improvements of Mill Road
intersections at both Hanover Street and El Camino
Real (CMR 13439).
No expenditures have been made for this fund in
Fiscal Year 2022. In FY 2020, City ceased collecting the
San Antonio/West Bayshore area fee established in
1986.
11.a
Packet Pg. 322
Commercial Housing University Avenue Parking
FUND Impact Fee Fund In-Lieu Fund
Purpose and Authority Fees imposed on commercial and industrial Fees collected from non-residential
for Collection development to offset the demand that development within the University Ave.
new jobs create for low and moderate-Parking Assessment District in lieu of
income housing in the City providing the required number of
parking spaces.
PAMC Ch.16.65 PAMC Ch 16.57
Amount of the Fee
Hotel / Retail / Other Non Residential:
$23.11 per sq. ft.
Office/R&D: $39.70 per sq. ft. $115,404.00 per space
Fund Balance July 1, 2021 $25,967,219 $6,424,611
Activity in 2021-22
Revenues
Fees Collected 1,428,224
Interest Earnings 54,217 101,582
Unrealized Gain/(Loss) Investments (300,408)(507,159)
----------------------------------------------------------- --------------------------------------------------------------
Total Revenues 1,182,033 (405,577)
Expenditures
Salaries and Benefit (34,894) -
Liability Insurance (855) -
----------------------------------------------------------- --------------------------------------------------------------
Total Expenditures (35,749) -
----------------------------------------------------------- --------------------------------------------------------------
Ending Balance June 30, 2022 $27,113,503 $6,019,034
Reserves
Other Commitments/Appropriations - -
Reserve for Notes Receivable includes:(23,629,563)$1,290,000 for 2811 Alma
$4,137,254 for 801 Alma
$7,700,000 for Bueva Vista Mobile Home Park
$10,502,309 Wilton Court -
Reserve for Reappropriations (1,167,000) -
----------------------------------------------------------- --------------------------------------------------------------
Total Reserves (24,796,563) - -------------------------------------------------------------------------------------------------------------------------
Net Funds Available $2,316,940 $6,019,034
USE OF FEES:
Expenditures in Fiscal Year 2022 are $35K
for salaries and benefits. Reserve for
Reappropriaton is for Affordable Housing
Loan Agreement: 3705 El Camino Real
(Wilton Court).
This fund is not subject to AB1600 requirements and is listed only for information purposes.
USE OF FEES:No expenditures have been made from this fund in
Fiscal Year 2022.
FUTURE USE OF FEES:
$5.5M programmed in FY 2023 for New Downtown Parking Garage Project (PE-15007) as part of the
2023-2027 Capital Improvement Plan (CIP).
11.a
Packet Pg. 323
Residential & Non-Residential Residential & Non-Residential
Community Facilities Community Facilities
FUND Parks Community Centers
Purpose and Authority Fees imposed on new residential and Fees imposed on new residential and
for Collection non-residential development approved non-residential development approved
after Jan 28, 2002 for Parks. after Jan 28, 2002 for Community Centers.
PAMC Ch. 16.58 PAMC Ch. 16.58
Amount of the Fee Residential: Single family $57,420 per unit.
(ADUs under 750 sq ft exempt)
Residential: Single family $4438 unit.
(ADUs under 750 sq ft exempt)
Nonresidential: Commercial/Industrial
$16,837 per net new 1,000 sq ft;
Hotel/Motel $2,866 per 1,000 sq ft.
Nonresidential: Commercial/industrial $1301
per 1,000 sq ft; Hotel/Motel $222 per 1,000
sq ft.
Fund Balance July 1, 2021 $3,766,481 $751,143
Activity in 2021-22
Revenues
Fees Collected 311,065 51,809
Interest Earnings 57,233 12,321
Unrealized Gain/(Loss) Investments (305,444)(76,080)
----------------------------------------------------------- --------------------------------------------------------------
Total Revenues $62,854 ($11,950)
Operating Transfer to Capital Projects Fund (18,800) -
----------------------------------------------------------- --------------------------------------------------------------
Total Expenditures ($18,800) -
----------------------------------------------------------- --------------------------------------------------------------
Ending Balance June 30, 2022 $3,810,535 $739,193
Reserves
Other Commitments/Appropriations - -
----------------------------------------------------------- --------------------------------------------------------------
Total Reserves - - -------------------------------------------------------------------------------------------------------------------------Net Funds Available $3,810,535 $739,193
USE OF FEES:USE OF FEES:
Budget transfer in FY 2022 was made to Capital
Project fund for PG-19000-Park Restroom
Installation $13,300 and PG-18001-Dog Park
Installation and Renovation for $5,500.
FUTURE USE OF FEES:
Budgeted as part of FY23-27 CIP: PE-17005
Boulware Park $400k in FY23; PG-18001 Dog Parks
$145k in FY23, $150k in FY24 & FY26; PG-19000
Park Restroom Installation $337k in FY23, $350k in
FY24 & FY26; PE-08001 Rinconada Park
Improvements $400k in FY23; PF-23001 Roth
Building Rehabilitation $350k in FY23.
No expenditure of funds have been made from this
Fund in Fiscal Year 2022.
FUTURE USE OF FEES:
Budgeted as part of FY23-27 CIP: $1.65M shifted from
PE-08001 Rinconada Park Improvements to PF-23001
Roth Building Rehabilitation in FY23.
11.a
Packet Pg. 324
Residential & Non-Residential
Community Facilities Residential Housing
FUND Libraries In-Lieu Fund
Purpose and Authority
for Collection
Fees imposed on new residential and non-
residentual development approved after January
28, 2002 for Libraries.
Fees collected from ownership residential
developments of three or more units (including mixed
used with ownership in housing) in-lieu of providing
the required below-market rate units(s) to low and
moderate income households.
PAMC Ch. 16.58 PAMC Chapter 16.65
Amount of the Fee Residential: Single family $2,645 per unit;
Multi-family $1,956 per unit
(ADUs under 750 sq ft exempt)
Single family $85.07 per sq. ft. Single family
detached; $56.72 per sq. ft. single family
attached. Multi Family $56.72 per sq. ft.
condos.
Nonresidential: Commercial/industrial $776
per net new 1,000 sq ft.
Hotel/Motel $132 per net new 1,000 sq ft.
Fund Balance July 1, 2021 $971,303 $29,738,425
Activity in 2021-22
Revenues
Fees Collected 25,718 138,339
Property Rental 700
Interest Earnings 13,510 122,145
Unrealized Gain/(Loss) Investments (79,438)(497,098)
-------------------------------------------------------------------------------------------------------------------------
Total Revenues ($40,210)($235,914)
Expenditures
Salaries and Benefits - (34,894)
Liability Insurance - (855)
----------------------------------------------------------- --------------------------------------------------------------Total Expenditures - ($35,749)
-------------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2022 $931,093 $29,466,762
Reserves
Other Commitments/Appropriations - -
Reserve for Encumbrances - (178,090)
Reserve for Reappropriations - (3,000,000)
Reserve for Notes Receivable includes: - (23,810,893)
$375,000 for 3053 Emerson
$3,504,850 for Tree House Apts.
$747,734 for Sheridan Apts.
$2,285,026 for 801 Alma
$901,201 for Palo Alto Housing Project
$593,952 for 2811-2825 Alma St.
$203,561 for Colorado Park Housing
$149,968 for El Dorado Palace
$6,800,000 for Buena Vista Mobile Home Park
$8,249,601 for Wilton Ct.
----------------------------------------------------------- --------------------------------------------------------------
Total Reserves - (26,988,983)
-------------------------------------------------------------------------------------------------------------------------Net Funds Available $931,093 $2,477,779
USE OF FEES:USE OF FEES:
No expenditure of funds have been made from this
Fund in Fiscal Year 2022.
FUTURE USE OF FEES:
Budgeted as part of FY23-27 CIP: LB-21000 Library
Automated Material Handling $540k in FY23; PF-
23001 Roth Building Rehabilitation $300k in FY23.
Expenditures in Fiscal Year 2022 were $36K for
salaries and benefits. Reserve for Reappropriatons is
for Affordable Housing Project: 231 Grant Avenue
Affordable Housing Project.
11.a
Packet Pg. 325
Charleston-Arastradero Corridor
FUND Pedestrian and Bicyclist Safety Citywide Transportation
Purpose and Authority Transportation impact fees imposed
for Collection on new development in all parts of the
City to fund congestion reduction
projects.
PAMC Ch. 16.59
Amount of the Fee
Fees collected from new development and
re-development within the Charleston-
Arastradero Corridor to provide for pedest-
rian and bicyclist safety improvements.
PAMC Ch. 16.60
Residential: $1,480 per residential unit
Commercial: $0.43 per sq ft (ADUs
exempt)
$8,572 each; per net new PM peak hour trip
Fund Balance July 1, 2021 $37,124 $2,281,870
Activity in 2021-22
Revenues
Fees Collected - 252,428
Interest Earnings 588 35,431
Unrealized Gain/(Loss) Investments (2,808)(175,459)
----------------------------------------------------------- --------------------------------------------------------------
Total Revenues ($2,220)$112,400
Expenditures
Operating Transfer to Capital Projects Fund - (395,000)
----------------------------------------------------------- --------------------------------------------------------------
Total Expenditures - ($395,000)
----------------------------------------------------------- --------------------------------------------------------------
Ending Balance June 30, 2022 $34,904 $1,999,270
Reserves
Other Commitments/Appropriations - -
----------------------------------------------------------- --------------------------------------------------------------
Total Reserves - -
----------------------------------------------------------- --------------------------------------------------------------
Net Funds Available $34,904 $1,999,270
USE OF FEES:USE OF FEES:
No expenses were been made from this fund in
Fiscal Year 2022.
Budget transfers of $395K to Capital Project Fund in
Fiscal Year 2022 was made for Traffic Signal and
Intelligent Transporation (PL-05030).
FUTURE USE OF FEES:
Budgeted as part of the FY23-27 CIP: PL-05030 Traffic
Signal and Intelligent Transportation System Upgrades
$395k annually
11.a
Packet Pg. 326
FUND New Public Safety Facilities General Government Facilities
Purpose and Authority Fees imposed on residential and Fees imposed on residential and non-
for Collection non-residential development to fund residential development to fund facilities
police and fire facilities (including fire associated with municipal administration.
apparatus and vehicles)PAMH Ch. 16.58
PAMC Ch. 16.58
Amount of the Fee Residential: Single family $1,175 per unit;
Multi-family $940 per unit
Residential: Single family $1,481 per unit;
Multi-family $1,184 per unit
(ADUs under 750 sq ft exempt)
Nonresidential: Commercial $657 per
1,000 sq ft. or fraction thereof; Industrial
$220 per 1,000 sq. ft. or fraction thereof;
Office/Institutional $876 per 1,000 sq ft or
fraction thereof.
Nonresidential: Commercial $826 per 1,000
sq ft. or fraction thereof; Industrial $275 per
1,000 sq. ft. or fraction thereof;
Office/Institutional $1,104 per 1,000 sq ft or
fraction thereof.
Fund Balance July 1, 2021 $44,123 $57,053
Activity in 2021-22
Revenues
Fees Collected 50,371 63,428
Interest Earnings 1,302 1,663
Unrealized Gain/(Loss) Investments (8,026)(10,214)
----------------------------------------------------------- --------------------------------------------------------------
Total Revenues $43,647 $54,877
Expenditures - -
----------------------------------------------------------- --------------------------------------------------------------
Total Expenditures - -
----------------------------------------------------------- --------------------------------------------------------------
Ending Balance June 30, 2022 $87,770 $111,930
Reserves -
Other Commitments/Appropriations - -
----------------------------------------------------------- --------------------------------------------------------------
Total Reserves - -
-------------------------------------------------------------------------------------------------------------------------
Net Funds Available $87,770 $111,930
USE OF FEES:USE OF FEES:
No expenditure of funds have been made from this
Fund in Fiscal Year 2022.
No expenditure of funds have been made from this
Fund in Fiscal Year 2022.
11.a
Packet Pg. 327
Residential Housing
FUND Impact Fee Fund
Purpose and Authority for clollection Fees imposed on all rental residential
developments (including mixed use with rental
housing) to offset the demand that the new market-
rate rental housing creates for low income and
moderate-income housing in the City.
PAMC Ch. 16.65
Amount of the Fee Single and Multi-Family: $22.69 per sq. ft.
apartment (rentals)
Fund Balance July 1, 2021 $894,756
Activity in 2021-22Revenues
Fees Collected 223,078
Interest Earnings 15,727
Unrealized Gain/(Loss) Investments (75,945)-----------------------------------------------------------
Total Revenues $162,860
Expenditures - -----------------------------------------------------------
Total Expenditures - -----------------------------------------------------------
Ending Balance June 30, 2022 $1,057,616
Reserves Other Commitments/Appropriations -
Reserve for Reappropriations (600,000)-----------------------------------------------------------
Total Reserves ($600,000)
-----------------------------------------------------------
Net Funds Available $457,616
USE OF FEES:
No expenditure of funds have been made from this
Fund in Fiscal Year 2022. Reseve for
Reappropriations is for Affordable Housing Loan
Agreement: 3705 El Camino Real (Wilton Court)
11.a
Packet Pg. 328
(INFORMATION ONLY)
FUND Public Art Fund Parkland Dedication
Purpose and Authority for collection Fees imposed on new commercial develoments
(including mixed use projects), including new
construction, remodels, additions and
reconstruction that (i) have a floor area of 10,000
sq. ft. or more, and (ii) have a construction value of
$200,000, or more, exclusive of costs for
architecture, design, engineering, and required
studies; and all new residential projects of five or
more units to fund public art for private
developments.
Fees on parkland dedication imposed on new
residential and non-residential development.
Govt Code Sec. 66477 (Quimby Act)
PAMC Ch. 16.61
Amount of the Fee 1% of first $120.25 million construction
valuation and 0.9% of construction
valuation for valuation in excess of
$120.25 million
Single Family: $69,483.47 per unit; Multi-
Family: $47,892.56 per unit. This applies
only to residential projects that require a
subdivision or pacel map. Land dedication is
required for subdivisions resulting in more
than 50 parcels. Parkland Dedication Fee -
Land: Single Family: 531 sq. ft, per unit;
Multi-Family: 366 sq. ft. per unit. When
parkland dedication applies, park impact fees
do not apply.
Fund Balance July 1, 2021 $2,009,290 $5,915,748
Activity in 2021-22
Revenues
Fees Collected 144,400 591,289
Interest Earnings 32,355 74,277
Unrealized Gain/(Loss) Investments (158,436)(401,919)
Operating Transfer from General Fund 170,000
----------------------------------------------------------- --------------------------------------------------------------
Total Revenues $188,319 $263,647
Expenditures
Salaries and benefits (227,003) -
Other Contract Services (42,080) -
Liability Insurance (2,816) -
Operating Transfer to Capital Projects Fund - (2,400,000)
----------------------------------------------------------- --------------------------------------------------------------
Total Expenditures ($271,899)($2,400,000)
----------------------------------------------------------------------------------------------------------------------------------------------
Ending Balance June 30, 2022 $1,925,710 $3,779,395
Reserves
Other Commitments/Appropriations - -
----------------------------------------------------------- --------------------------------------------------------------
Total Reserves - -
----------------------------------------------------------- --------------------------------------------------------------
Net Funds Available $1,925,710 $3,779,395
This fund is not subject to AB1600 requirements
and is listed only for information purposes.
This fund is not subject to AB1600 requirements and is
listed only for information purposes.
FUTURE USE OF FEES:
Budgeted as part of the FY23-27 CIP:
PE-17005 Boulware Park $1.1M in FY23; PE-08001
Rinconada Park Improvements $1.65M in FY23;
PE-18006 Byxbee Park Completion $450k in FY24.
11.a
Packet Pg. 329
(INFORMATION ONLY)
FUND Water and Wastewater Collection
Purpose and Authority Capacity fees charged to developers that
for Collection are adding load to the water and sewer
systems effective July 1, 2005.
California Government Code Sect 66000
Amount of the Fee Water Capacity Fees: 5/8 in., 3/4 in E-
Meter. $3,750, 1 in. E-Meter $6,250, 1 1/2
in. E-Meter $18,850, 2 in. E-Meter
$31,250, 4 in. Compound Meter by est.
$125/FU (min. 5,000 FU) , 6 in. Compound
Meter by est. $125/FU (min. 7,000 FU)
Fire Service Capacity Fees: 2 in. $750, 4
in. $8,425, 6 in. $18,250, 8 in. $30,950,
10in. $48,110
Sewer Capacity Charges: 4 in. connection
with 5/8 in Water Meter (WM) $5,250, 4 in
connection. with 1-in WM $10,500, 4 or 6
in. connection with 1-1/2 in WM $31,668, 6
in. connection with 2 in. WM $52,500, 6 in.
and larger connection with 4 in. or larger
WM by est. at $210/FU
Activity in 2021-22
Capacity Fees Collected
Water $123,175
Wastewater Collection $31,500
-----------------------------------------------------------
Total Capacity Fees Collected $154,675
USE OF FEES:
The fees are used exclusively for water and sewer
system improvements.
11.a
Packet Pg. 330
City of Palo Alto (ID # 15018)
City Council Staff Report
Report Type: Study Session Meeting Date: 12/5/2022
City of Palo Alto Page 1
Summary Title: Stanford Community Plan
Title: Study Session to Receive an Update on the Santa Clara County’s Effort
to Update the Stanford Community Plan.
From: City Manager
Lead Department: Planning and Development Services
Recommendation:
Staff recommends that Council conduct a study session to receive an update on the County’s
effort to update the Stanford Community Plan.
Background:
Santa Clara County has been preparing an update to the Stanford Community Plan (SCP). The
SCP is a component of the County’s General Plan and applies to Stanford University lands in
unincorporated areas of Santa Clara County. The SCP sets forth goals, policies and programs to
guide development within these areas; the 2000 General Use Permit is a regulatory land use
document that implements the SCP.
There is also a 1985 Land Use Policy Agreement signed by the County, Stanford University and
the City of Palo Alto that sets forth certain policies regarding land use, annexation and
development of Stanford lands in the County. More specifically, the agreement establishes that
academic land uses in unincorporated areas, for which Stanford provides municipal services,
and open space and agricultural land uses held in reserve for academic use, should remain
unincorporated. Non-academic uses should be subject to city (Palo Alto) annexation. The
Stanford Research Park, Stanford Hospital and Stanford Shopping Center are Palo Alto
incorporated areas.
The SCP was last amended in 2015. The County was preparing an amendment with the filing
and subsequent withdrawal of Stanford University’s General Use Permit application. The
County has since proceeded with the SCP amendment, which has been further informed by the
AA2
Packet Pg. 331
City of Palo Alto Page 2
preparation of three additional studies, including: municipal services;1 childcare;2 and, graduate
student housing affordability studies.3
Having conducted a number of community meetings and study sessions, which staff has
previously provided updates to Council, the County Board of Supervisors is poised to signal its
intent to adopt the SCP on December 13, 2022.
City staff requested, and the County agreed, to have a County representative provide an update
to the City Council on the SCP in advance of the Board of Supervisors action next week. This
study session is in response to that request. No action can be taken by the City Council at the
study session but Councilmember comments and feedback will be summarized by the County
and provided to the Board of Supervisors for consideration at their December meeting.
Additional information is available in the County’s prior staff reports.4
Policy Implications:
The SCP will set forth the goals, policies and programs that will guide development on
unicorporated academic, open space and agricultural lands in Santa Clara County. As a
neighboring juridisction, the City of Palo Alto has a policy interest in how development may
impact housing supply, traffic, parking, access to City parks and potentially other municipal
services.
On September 14, 2022, Mayor Burt sent a letter to County staff highlighting the City’s interest
in housing, circulation, property acquisition in Palo Alto for academic uses and how that
impacts the City’s property tax revenue, and other topics. The letter was previously transmitted
to the City Council and is included with this report as Attachment A.
Resource Impact:
Staff has been monitorring this project and providing updates to the City Council as
appropriate, including scheduling this study session discussion. This work has been absorbed
using existing department resources.
1https://static1.squarespace.com/static/5ef397ab7a79e315cd9066ae/t/625de6a8d406c01667f8323c/1650321067
805/3815001_StanfordU_MunicipalSvcsStudy_04.15.2022_draft.pdf
2https://static1.squarespace.com/static/5ef397ab7a79e315cd9066ae/t/62867e89dd8254178e016dcb/165298138
7389/Stanford+Childcare+Needs+Assessment+-+FINAL+PUBLIC+REVIEW+DRAFT-+05.18.2022.pdf
3https://static1.squarespace.com/static/5ef397ab7a79e315cd9066ae/t/627ee19cf03ad051390ae248/1652482461
809/Draft+Housing+Report+5-12-22.pdf
4 October 18, 2022, Agenda Item 13:
https://static1.squarespace.com/static/5ef397ab7a79e315cd9066ae/t/627ee19cf03ad051390ae248/1652482461
809/Draft+Housing+Report+5-12-22.pdf
AA2
Packet Pg. 332
City of Palo Alto Page 3
Timeline:
The Santa Clara County Board of Supervisors have decision-making authority for the SCP and
intend to signal its intent to adopt the plan in December with final approval anticiapted in 2023
pending conclusion of the associated environmental analysis.
Stakeholder Engagement:
The County has held several virtual community meetings last summer to receive public input.
Staff has provided Council updates throughout the plan prepartion process.
Attachments:
Attachment2.A: Attachment A: Palo Alto Comment Letter (Stanford Community Plan)
HLUET 09.15.22 (PDF)
2
Packet Pg. 333
AA2
CITY OF PALO ALTO | 250 HAMILTON AVENUE, PALO ALTO, CA. 94301 | 650-329-2100
September 14, 2022
Jacqueline Onciano, Director
Department of Planning and Development
Santa Clara County Planning Office
70 W. Hedding Street
7th Floor, East Wing
San Jose, CA 95110
RE: Stanford Community Plan Update
Dear Ms. Onciano & Staff:
The City of Palo Alto thanks the County for the valuable work that has been put into the Draft
Stanford Community Plan and we appreciate the opportunity to comment on the update. The City
supports this effort as an important next step in planning for the future of the unincorporated Stanford
University lands, and we appreciate the County’s public engagement efforts and opportunities for input
on the issue. This is particularly important to the City given Stanford’s adjacency and impacts on Palo Alto.
In the context of the ‘1985 Land Use Policy Agreement’ between the County, Stanford, and Palo
Alto, we offer the following comments and request additional opportunities for continued engagement
to fully understand the implications of the SCP on Palo Alto. The issues of primary concern to the City,
based on information available at this time, are briefly highlighted below:
A.Housing
1.House students/employees on Stanford-owned properties. We suggest that the University
continue to strive to house all its students and employees on Stanford-owned properties. Given
the very great challenges of meeting Palo Alto’s current RHNA mandate for over 6,000 housing
units in the coming eight-year period, we are concerned by the SCP proposal to allow up to 30%
of Stanford’s housing requirements on Stanford owned lands that are contiguous to the
University. These sites would be primarily in Palo Alto on land (primarily the Stanford Research
Park) that the city is seeking to be used for housing for those who work in the City. In addition,
Stanford should be required to evaluate other properties within its academic growth boundary
for housing.
2.Build housing before academic buildings. We encourage policy that builds housing first then
allows academic development.
3.County’s Housing Opportunity Sites on Stanford Lands. The County’s Draft Housing Element
identifies three housing opportunity sites with potential for between 1,680 and 2,160 dwelling
2.A
Packet Pg. 334
AA2
units that represents between 53-69% of the total Regional Housing Needs Allocation for the
County.
•This is substantial planned growth adjacent to the City limits, which is only second to the
opportunity sites located adjacent to the City of San Jose. However, in contrast, the
Stanford sites are concentrated in one area, creating the potential for a greater impact
on Palo Alto.
B.Circulation
1.Parking Impacts: Stanford should be required to pay for mitigation of parking impacts which
could include the initiation and operation of necessary Residential Parking Programs (RPP).
2.Transportation Demand Management (TDM) Program Changes: Palo Alto is greatly impacted
if the Stanford TDM program fails. For Stanford’s TDM to work, it needs to invest in Palo Alto
infrastructure and transit.
•The new Trip Reduction approach in lieu of fair-share intersection payments and the Trip
Credit Methodology needs to be clarified and explained.
•It is not appropriate that Stanford Research Park trips reduced are being used as trip
credits for campus development.
•A better approach would be to target trip reduction activities to non-Stanford employees
without access to TDM programs.
3.In lieu of fair share intersection payments: Expansion, integration, and transparency of the
Marguerite system into the City of Palo Alto neighborhoods, in collaboration with the City,
should be considered or required. Financial support of local transit in lieu of Marguerite
expansion is aa preferred consideration. Moreover, it would be appropriate to provide funds
additional bicycle/pedestrian and vehicular crossings of the Caltrain corridor.
C.27 University Property and the Caltrain Station: Stanford owns these key parcels, which constitute the
busiest Caltrain station. Stanford’s entities rely on Caltrain as the backbone of its TDM program.
Future planning of this site should be an important consideration in the SCP.
D.Stanford’s shift to Life Sciences: This shift introduces potentially hazardous materials, and its handling
and storage of these materials affects the City’s interest in locating additional housing in and around
the Stanford Research Park.
E.Impacts of Stanford Acquiring Land in Palo Alto: The City has concerns regarding Stanford acquiring
land in Palo Alto and how this affects the City’s property tax revenue when used for ‘academic’
purposes as defined in the 1985 Agreement, including housing for faculty. Palo Alto is concerned with
the prospect of Stanford owned housing within the City being exempt from property taxes despite
additional impacts of those residents on our public schools and city services. Palo Alto seeks full
disclosure by Stanford of University owned properties within the city limits, their status, and a
calculation of tax revenue lost.
2.A
Packet Pg. 335
AA2
We would be happy to meet with you and Supervisor Simitian if such a meeting would help resolve any
of these issues or concerns. If there are any questions regarding the specific SCP update comments
attached, please contact our Planning Director Jonathan Lait at Jonathan.lait@cityofpaloalto.org.
Sincerely,
Mayor Pat Burt
Cc Palo Alto City Council
City Manager Ed Shikada
City Attorney Molly Stump
Jonathan Lait/File
2.A
Packet Pg. 336
AA2