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2023-05-01 City Council Agenda Packet
CITY COUNCIL Special Meeting Monday, May 01, 2023 Council Chambers & Hybrid 5:00 PM 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. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, a n d s t r e a m e d t o M i d p e n M e d i a Center https://midpenmedia.org. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833 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 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 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. TIME ESTIMATES 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. CALL TO ORDER SPECIAL ORDERS OF THE DAY (5:00 ‐ 5:10 PM) 1.Proclamation of May 2023 as Affordable Housing Month 2.Appointment of Applicants for Board and Commission Openings on the Human Relations Commission and Parks and Recreation Commission CLOSED SESSION (5:10 ‐ 6:40 PM) 3.CLOSED SESSION Review and Acceptance of Auditor’s Office Cybersecurity Assessment Authority: Govt Code section 54957(a) – Threat to Public Services or Facilities Consultation with: City Auditor Adriane D. McCoy, City Manager Ed Shikada, and Information Technology Director Darren Numoto STUDY SESSION (6:40 ‐ 8:10 PM) 4.Fiscal Year 2024 Proposed Budget Study Session AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (8:10 ‐ 8:30 PM) CONSENT CALENDAR (8:30 ‐ 8:35 PM) 5.Approval of Minutes from April 17, 2023 Meeting 6.SECOND READING: Adoption of a Park Improvement Ordinance for Renovations and New Amenities at Rinconada Park (FIRST READING: January 13, 2020 PASSED 7‐0) 7.Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2022 8.Approval of Amendment Number 4 to Contract Number C20176363 with Magellan for; 1) Program Management, Network Operations, and Technical Support for Fiber‐to‐the‐ Premises to; 2) Increase Compensation by $2,770,960 for a New Total Not to Exceed Amount of $5,685,291; 3) Extend the Contract Term by 31 months through December 31, 2025; and 4) Approval of a Budget Amendment in the Fiber Optics Fund 9.Approval of Professional Services Contract Amendment Number 3 with Smart Energy Systems, Inc (S18165157) to add $684,023 for a New Total Not‐to‐Exceed Amount of $1,030,146; and to Extend the Contract Term for Three Years for the Utilities MyCPAU Customer Portal. CITY MANAGER COMMENTS (8:35 ‐ 8:50 PM) ACTION ITEMS (Item 12 ‐ 8:50 ‐ 9:30 PM, Item 13 9:30 ‐ 10:30 PM) 10.Adoption of the Community Development Block Grant (CDBG) FY2023‐24 Annual Action Plan and the Adoption of a Resolution Approving Use of CDBG Funds for FY 2023‐24 11.PUBLIC HEARING / QUASI‐JUDICIAL. 2147 Yale Street [22PLN‐00374]: Recommendation on Applicant’s Request for a Preliminary Parcel Map with Exceptions to Divide an Existing 5,770 Square Foot Parcel Into two Approximately 2,885 Square Foot lots, smaller than the minimum allowed by the Zoning Code. No changes are proposed to the existing residences. Environmental Assessment: Exempt per CEQA 15301. Zoning District: RND (NP) Two Unit Multiple‐Family Residential District, Neighborhood Preservation Overlay. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS ADJOURNMENT INFORMATION REPORTS 12.Sales Tax Digest Summary Calendar 2022 Q4 (October 2022 – December 2022) 13.Semiannual Update on the Status of Capital Improvement Program Projects OTHER INFORMATION Standing Committee Meeting Finance Committee Special Meeting May 5, 2023 Public Comment Letters Schedule of Meetings 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. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone 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. 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. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. 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. 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. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 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 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 1 Special Meeting May 01, 2023 Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org. CITY COUNCILSpecial MeetingMonday, May 01, 2023Council Chambers & Hybrid5:00 PMPursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, a n d s t r e a m e d t o M i d p e n M e d i aCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATES 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. CALL TO ORDER SPECIAL ORDERS OF THE DAY (5:00 ‐ 5:10 PM) 1.Proclamation of May 2023 as Affordable Housing Month 2.Appointment of Applicants for Board and Commission Openings on the Human Relations Commission and Parks and Recreation Commission CLOSED SESSION (5:10 ‐ 6:40 PM) 3.CLOSED SESSION Review and Acceptance of Auditor’s Office Cybersecurity Assessment Authority: Govt Code section 54957(a) – Threat to Public Services or Facilities Consultation with: City Auditor Adriane D. McCoy, City Manager Ed Shikada, and Information Technology Director Darren Numoto STUDY SESSION (6:40 ‐ 8:10 PM) 4.Fiscal Year 2024 Proposed Budget Study Session AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (8:10 ‐ 8:30 PM) CONSENT CALENDAR (8:30 ‐ 8:35 PM) 5.Approval of Minutes from April 17, 2023 Meeting 6.SECOND READING: Adoption of a Park Improvement Ordinance for Renovations and New Amenities at Rinconada Park (FIRST READING: January 13, 2020 PASSED 7‐0) 7.Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2022 8.Approval of Amendment Number 4 to Contract Number C20176363 with Magellan for; 1) Program Management, Network Operations, and Technical Support for Fiber‐to‐the‐ Premises to; 2) Increase Compensation by $2,770,960 for a New Total Not to Exceed Amount of $5,685,291; 3) Extend the Contract Term by 31 months through December 31, 2025; and 4) Approval of a Budget Amendment in the Fiber Optics Fund 9.Approval of Professional Services Contract Amendment Number 3 with Smart Energy Systems, Inc (S18165157) to add $684,023 for a New Total Not‐to‐Exceed Amount of $1,030,146; and to Extend the Contract Term for Three Years for the Utilities MyCPAU Customer Portal. CITY MANAGER COMMENTS (8:35 ‐ 8:50 PM) ACTION ITEMS (Item 12 ‐ 8:50 ‐ 9:30 PM, Item 13 9:30 ‐ 10:30 PM) 10.Adoption of the Community Development Block Grant (CDBG) FY2023‐24 Annual Action Plan and the Adoption of a Resolution Approving Use of CDBG Funds for FY 2023‐24 11.PUBLIC HEARING / QUASI‐JUDICIAL. 2147 Yale Street [22PLN‐00374]: Recommendation on Applicant’s Request for a Preliminary Parcel Map with Exceptions to Divide an Existing 5,770 Square Foot Parcel Into two Approximately 2,885 Square Foot lots, smaller than the minimum allowed by the Zoning Code. No changes are proposed to the existing residences. Environmental Assessment: Exempt per CEQA 15301. Zoning District: RND (NP) Two Unit Multiple‐Family Residential District, Neighborhood Preservation Overlay. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS ADJOURNMENT INFORMATION REPORTS 12.Sales Tax Digest Summary Calendar 2022 Q4 (October 2022 – December 2022) 13.Semiannual Update on the Status of Capital Improvement Program Projects OTHER INFORMATION Standing Committee Meeting Finance Committee Special Meeting May 5, 2023 Public Comment Letters Schedule of Meetings 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. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone 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. 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. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. 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. 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. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 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 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 2 Special Meeting May 01, 2023 Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org. CITY COUNCILSpecial MeetingMonday, May 01, 2023Council Chambers & Hybrid5:00 PMPursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, a n d s t r e a m e d t o M i d p e n M e d i aCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERSPECIAL ORDERS OF THE DAY (5:00 ‐ 5:10 PM)1.Proclamation of May 2023 as Affordable Housing Month2.Appointment of Applicants for Board and Commission Openings on the Human RelationsCommission and Parks and Recreation CommissionCLOSED SESSION (5:10 ‐ 6:40 PM)3.CLOSED SESSIONReview and Acceptance of Auditor’s Office Cybersecurity AssessmentAuthority: Govt Code section 54957(a) – Threat to Public Services or FacilitiesConsultation with: City Auditor Adriane D. McCoy, City Manager Ed Shikada, andInformation Technology Director Darren NumotoSTUDY SESSION (6:40 ‐ 8:10 PM)4.Fiscal Year 2024 Proposed Budget Study SessionAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (8:10 ‐ 8:30 PM)CONSENT CALENDAR (8:30 ‐ 8:35 PM)5.Approval of Minutes from April 17, 2023 Meeting6.SECOND READING: Adoption of a Park Improvement Ordinance for Renovations and NewAmenities at Rinconada Park (FIRST READING: January 13, 2020 PASSED 7‐0)7.Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 20228.Approval of Amendment Number 4 to Contract Number C20176363 with Magellan for; 1)Program Management, Network Operations, and Technical Support for Fiber‐to‐the‐ Premises to; 2) Increase Compensation by $2,770,960 for a New Total Not to Exceed Amount of $5,685,291; 3) Extend the Contract Term by 31 months through December 31, 2025; and 4) Approval of a Budget Amendment in the Fiber Optics Fund 9.Approval of Professional Services Contract Amendment Number 3 with Smart Energy Systems, Inc (S18165157) to add $684,023 for a New Total Not‐to‐Exceed Amount of $1,030,146; and to Extend the Contract Term for Three Years for the Utilities MyCPAU Customer Portal. CITY MANAGER COMMENTS (8:35 ‐ 8:50 PM) ACTION ITEMS (Item 12 ‐ 8:50 ‐ 9:30 PM, Item 13 9:30 ‐ 10:30 PM) 10.Adoption of the Community Development Block Grant (CDBG) FY2023‐24 Annual Action Plan and the Adoption of a Resolution Approving Use of CDBG Funds for FY 2023‐24 11.PUBLIC HEARING / QUASI‐JUDICIAL. 2147 Yale Street [22PLN‐00374]: Recommendation on Applicant’s Request for a Preliminary Parcel Map with Exceptions to Divide an Existing 5,770 Square Foot Parcel Into two Approximately 2,885 Square Foot lots, smaller than the minimum allowed by the Zoning Code. No changes are proposed to the existing residences. Environmental Assessment: Exempt per CEQA 15301. Zoning District: RND (NP) Two Unit Multiple‐Family Residential District, Neighborhood Preservation Overlay. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS ADJOURNMENT INFORMATION REPORTS 12.Sales Tax Digest Summary Calendar 2022 Q4 (October 2022 – December 2022) 13.Semiannual Update on the Status of Capital Improvement Program Projects OTHER INFORMATION Standing Committee Meeting Finance Committee Special Meeting May 5, 2023 Public Comment Letters Schedule of Meetings 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. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone 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. 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. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. 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. 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. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 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 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 3 Special Meeting May 01, 2023 Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org. CITY COUNCILSpecial MeetingMonday, May 01, 2023Council Chambers & Hybrid5:00 PMPursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, a n d s t r e a m e d t o M i d p e n M e d i aCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERSPECIAL ORDERS OF THE DAY (5:00 ‐ 5:10 PM)1.Proclamation of May 2023 as Affordable Housing Month2.Appointment of Applicants for Board and Commission Openings on the Human RelationsCommission and Parks and Recreation CommissionCLOSED SESSION (5:10 ‐ 6:40 PM)3.CLOSED SESSIONReview and Acceptance of Auditor’s Office Cybersecurity AssessmentAuthority: Govt Code section 54957(a) – Threat to Public Services or FacilitiesConsultation with: City Auditor Adriane D. McCoy, City Manager Ed Shikada, andInformation Technology Director Darren NumotoSTUDY SESSION (6:40 ‐ 8:10 PM)4.Fiscal Year 2024 Proposed Budget Study SessionAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (8:10 ‐ 8:30 PM)CONSENT CALENDAR (8:30 ‐ 8:35 PM)5.Approval of Minutes from April 17, 2023 Meeting6.SECOND READING: Adoption of a Park Improvement Ordinance for Renovations and NewAmenities at Rinconada Park (FIRST READING: January 13, 2020 PASSED 7‐0)7.Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 20228.Approval of Amendment Number 4 to Contract Number C20176363 with Magellan for; 1)Program Management, Network Operations, and Technical Support for Fiber‐to‐the‐Premises to; 2) Increase Compensation by $2,770,960 for a New Total Not to ExceedAmount of $5,685,291; 3) Extend the Contract Term by 31 months through December 31,2025; and 4) Approval of a Budget Amendment in the Fiber Optics Fund9.Approval of Professional Services Contract Amendment Number 3 with Smart EnergySystems, Inc (S18165157) to add $684,023 for a New Total Not‐to‐Exceed Amount of$1,030,146; and to Extend the Contract Term for Three Years for the Utilities MyCPAUCustomer Portal.CITY MANAGER COMMENTS (8:35 ‐ 8:50 PM)ACTION ITEMS (Item 12 ‐ 8:50 ‐ 9:30 PM, Item 13 9:30 ‐ 10:30 PM)10.Adoption of the Community Development Block Grant (CDBG) FY2023‐24 Annual ActionPlan and the Adoption of a Resolution Approving Use of CDBG Funds for FY 2023‐2411.PUBLIC HEARING / QUASI‐JUDICIAL. 2147 Yale Street [22PLN‐00374]: Recommendationon Applicant’s Request for a Preliminary Parcel Map with Exceptions to Divide anExisting 5,770 Square Foot Parcel Into two Approximately 2,885 Square Foot lots,smaller than the minimum allowed by the Zoning Code. No changes are proposed to theexisting residences. Environmental Assessment: Exempt per CEQA 15301. ZoningDistrict: RND (NP) Two Unit Multiple‐Family Residential District, NeighborhoodPreservation Overlay.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTSADJOURNMENTINFORMATION REPORTS12.Sales Tax Digest Summary Calendar 2022 Q4 (October 2022 – December 2022)13.Semiannual Update on the Status of Capital Improvement Program ProjectsOTHER INFORMATIONStanding Committee MeetingFinance Committee Special Meeting May 5, 2023 Public Comment Letters Schedule of Meetings 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. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone 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. 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. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. 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. 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. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 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 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 4 Special Meeting May 01, 2023 Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org. CITY COUNCILSpecial MeetingMonday, May 01, 2023Council Chambers & Hybrid5:00 PMPursuant to AB 361 Palo Alto City Council meetings will be held as “hybrid” meetings with theoption to attend by teleconference/video conference or in person. To maximize public safetywhile still maintaining transparency and public access, members of the public can choose toparticipate from home or attend in person. Information on how the public may observe andparticipate in the meeting is located at the end of the agenda. Masks are strongly encouraged ifattending in person. The meeting will be broadcast on Cable TV Channel 26, live onYouTube https://www.youtube.com/c/cityofpaloalto, a n d s t r e a m e d t o M i d p e n M e d i aCenter https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERSPECIAL ORDERS OF THE DAY (5:00 ‐ 5:10 PM)1.Proclamation of May 2023 as Affordable Housing Month2.Appointment of Applicants for Board and Commission Openings on the Human RelationsCommission and Parks and Recreation CommissionCLOSED SESSION (5:10 ‐ 6:40 PM)3.CLOSED SESSIONReview and Acceptance of Auditor’s Office Cybersecurity AssessmentAuthority: Govt Code section 54957(a) – Threat to Public Services or FacilitiesConsultation with: City Auditor Adriane D. McCoy, City Manager Ed Shikada, andInformation Technology Director Darren NumotoSTUDY SESSION (6:40 ‐ 8:10 PM)4.Fiscal Year 2024 Proposed Budget Study SessionAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (8:10 ‐ 8:30 PM)CONSENT CALENDAR (8:30 ‐ 8:35 PM)5.Approval of Minutes from April 17, 2023 Meeting6.SECOND READING: Adoption of a Park Improvement Ordinance for Renovations and NewAmenities at Rinconada Park (FIRST READING: January 13, 2020 PASSED 7‐0)7.Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 20228.Approval of Amendment Number 4 to Contract Number C20176363 with Magellan for; 1)Program Management, Network Operations, and Technical Support for Fiber‐to‐the‐Premises to; 2) Increase Compensation by $2,770,960 for a New Total Not to ExceedAmount of $5,685,291; 3) Extend the Contract Term by 31 months through December 31,2025; and 4) Approval of a Budget Amendment in the Fiber Optics Fund9.Approval of Professional Services Contract Amendment Number 3 with Smart EnergySystems, Inc (S18165157) to add $684,023 for a New Total Not‐to‐Exceed Amount of$1,030,146; and to Extend the Contract Term for Three Years for the Utilities MyCPAUCustomer Portal.CITY MANAGER COMMENTS (8:35 ‐ 8:50 PM)ACTION ITEMS (Item 12 ‐ 8:50 ‐ 9:30 PM, Item 13 9:30 ‐ 10:30 PM)10.Adoption of the Community Development Block Grant (CDBG) FY2023‐24 Annual ActionPlan and the Adoption of a Resolution Approving Use of CDBG Funds for FY 2023‐2411.PUBLIC HEARING / QUASI‐JUDICIAL. 2147 Yale Street [22PLN‐00374]: Recommendationon Applicant’s Request for a Preliminary Parcel Map with Exceptions to Divide anExisting 5,770 Square Foot Parcel Into two Approximately 2,885 Square Foot lots,smaller than the minimum allowed by the Zoning Code. No changes are proposed to theexisting residences. Environmental Assessment: Exempt per CEQA 15301. ZoningDistrict: RND (NP) Two Unit Multiple‐Family Residential District, NeighborhoodPreservation Overlay.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTSADJOURNMENTINFORMATION REPORTS12.Sales Tax Digest Summary Calendar 2022 Q4 (October 2022 – December 2022)13.Semiannual Update on the Status of Capital Improvement Program ProjectsOTHER INFORMATIONStanding Committee MeetingFinance Committee Special Meeting May 5, 2023Public Comment LettersSchedule of Meetings 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. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone 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. 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. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. 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. 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. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 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 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 5 Special Meeting May 01, 2023 Materials submitted after distribution are available for public inspection at www.CityofPaloAlto.org. City Council Staff Report From: City Manager Report Type: SPECIAL ORDERS OF THE DAY Lead Department: Planning and Development Services Meeting Date: May 1, 2023 Report #:2303-1144 TITLE Proclamation of May 2023 as Affordable Housing Month RECOMMENDATION City Council proclaim the month of May as Affordable Housing Month in the City of Palo Alto BACKGROUND Affordable Housing Month is a national observance in the United States that is typically held in the month of May each year. The event was established to raise awareness about the need for affordable housing and to recognize the important role that affordable housing plays in building strong, sustainable, and inclusive communities. Affordable Housing Month typically includes a variety of activities and events, such as workshops, rallies, and community outreach efforts. The focus of these events is to raise awareness about the need for affordable housing, educate the public about the benefits of affordable housing, and advocate for policies and programs that support the development of more affordable housing options. The City, in collaboration with Silicon Valley at Home, is hosting for the first time ever an Affordable Housing Resources Fair on Saturday, May 13 at 1:00 pm in King Plaza (in front of City Hall). The fair is primarily focused on resources for low-income households and provides information about affordable housing in Palo Alto, fair housing, tenant protections, and other housing services. This is an exciting event to celebrate Affordable Housing Month. More info on the event available at: www.cityofpaloalto.org/housingfair. In addition to the City’s event, there are other events taking place in the Bay Area in May (information at https://siliconvalleyathome.org/events/?category=affordable-housing-month). ATTACHMENTS Attachment A: Proclamation Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 1 Packet Pg. 6 of 259 APPROVED BY: Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 2 Packet Pg. 7 of 259 ______________________________ Lydia Kou Mayor AFFORDABLE HOUSING MONTH WHEREAS, safe and affordable housing is a basic human right and yet, each year, thousands of Silicon Valley families and individuals struggle to find an affordable home in this expensive housing market; and WHEREAS, the City has been active in affordable housing development with four affordable housing projects in process that will include much needed very low-income units, housing for persons with developmental disabilities, and teacher housing in which the City has committed financial support for three of the projects. WHEREAS, the City has also implemented other meaningful housing actions by approving City parking lots to be developed for affordable housing, creating a permanent source of affordable housing funding by dedicating a portion of the business tax revenue for affordable housing, crafting additional renter protections, and continued support of fair housing services; and WHEREAS, the City, in collaboration with Silicon Valley at Home, is hosting an Affordable Housing Resources Fair on Saturday, May 13 at 1:00 pm in King Plaza (in front of City Hall). More info on the event available at: www.cityofpaloalto.org/housingfair. WHEREAS, many organizations throughout Silicon Valley are dedicated to providing safe, stable, permanent and affordable housing to all members of the community; these organizations along with local agencies and community members have organized Affordable Housing Month; and NOW, THEREFORE, I, Lydia Kou, Mayor of the City of Palo Alto on behalf of the entire City Council do hereby proclaim the month of May as Affordable Housing Month in the City of Palo Alto, to call upon our community to support affordable housing solutions and to recognize the successful efforts of the City of Palo Alto and its partners who seek to improve access to affordable housing in Palo Alto. PRESENTED: May 1, 2023 Proclamation Item 1 Attachment A - Proclamation 2023 Affordable Housing Month Item 1: Staff Report Pg. 3 Packet Pg. 8 of 259 City Council Staff Report Report Type: SPECIAL ORDERS OF THE DAY Lead Department: City Clerk Meeting Date: May 1, 2023 Report #:2304-1322 TITLE Appointment of Applicants for Board and Commission Openings on the Human Relations Commission and Parks and Recreation Commission RECOMMENDATION That the City Council vote to appoint candidates for the following positions: •Four (4) vacancies on the Human Relations Commission o Two (2) full terms ending 3/31/2026 o Two (2) new terms ending 3/31/2024 per Ordinance 5583 •Four (4) vacancies on the Parks and Recreation Commission with terms ending 3/31/2026 DISCUSSION The City Council directed that 5 candidates for the Human Relations Commission and 11 candidates for the Parks and Recreation Commission be scheduled for interviews. The interviews are to be held on April 24, 2023 and the schedule (as of the publication of this packet) will be as listed below. Each candidate is scheduled for 10 minutes. On April 10, 2023 the City Council approved Ordinance 5583 to expand the Human Relations Commission from five to seven members. The two new seats on the Human Relations Commission created by this ordinance shall initially have shortened one year terms to expire on March 31, 2024. After that, successive terms shall be full three year terms. Applicants appointed to the two new seats cannot start their term until the authorizing ordinance becomes effective on May 11, 2023 but City Council may choose to make the appointment at this time. Human Relations Commission 5:00 PM Katie Causey Zoom Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 1 Packet Pg. 9 of 259 5:10 PM Miles Goodman In-person 5:20 PM Mary Kate Stimmler In-person 5:30 PM Amy Hsieh In-person 5:40 PM Daryl Savage (Incumbent)In-person Parks and Recreation Commission 5:50 PM Amanda Brown (Incumbent)In-person 6:00 PM Bing Wei In-person 6:10 PM Nanci Howe In-person 6:20 PM Yudy Deng In-person 6:30 PM Jeff LaMere (Incumbent)In-person 6:40 PM Laura Granka In-person 6:50 PM Star Teachout In-person 7:00 PM Adriana Flores-Ragade Zoom 7:10 PM Shani Kleinhaus (Incumbent)In-person 7:20 PM Sierra Peterson In-person 7:30 PM Joy Oche (Incumbent)In-person ATTACHMENTS None APPROVED BY: Lesley Milton, City Clerk Vinhloc Nguyen, Deputy City Clerk Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 2 Packet Pg. 10 of 259 Item No. 4. Page 1 of 1 1 1 8 9 CITY COUNCIL STAFF REPORT From: City Manager Report Type: STUDY SESSION Lead Department: Administrative Services Meeting Date: May 1, 2023 Report Number: 2212-0518 TITLE Fiscal Year 2024 Proposed Budget Study Session RECOMMENDATION Staff recommends that the City Council receive the FY 2024 Proposed Operating and Capital Budgets and refer discussion to the Finance Committee EXECUTIVE SUMMARY This item will present the Fiscal Year (FY) 2024 Proposed Budget and provide for discussion by the City Council regarding the FY 2024 Budget and priorities. Proposed Budget documents are expected to be released by the end of April 2023. Once released, these documents will be linked to this agenda. Detailed discussions are scheduled to occur with the Finance Committee on May 5th and 9th, with a City Council check-in on May 22nd, and a final wrap-up discussion with the Finance Committee scheduled May 30th. The Budget will return to the City Council in June for final adoption. APPROVED BY: Kiely Nose, Administrative Services Director Item 4 Item 4 Staff Report Item 4: Staff Report Pg. 1 Packet Pg. 11 of 259 City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: May 1, 2023 Report #:2304-1321 TITLE Approval of Minutes from April 17, 2023 Meeting RECOMMENDATION That the minutes be reviewed and approved. ATTACHMENTS Attachment A: April 17, 2023 Draft Minutes APPROVED BY: Lesley Milton Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 1 Packet Pg. 12 of 259 CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 6 Special Meeting April 17, 2023 The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:00 P.M. Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker Present Remotely: Absent: Closed Session 1. CONFERENCE WITH CITY ATTORNEY-EXISTING LITIGATION California Court of Appeal, Sixth Appellate District, Case No. H049425 Subject: Hamilton and High LLC, et al., Appellants v. City of Palo Alto, et al., Respondents Authority: Government Code Section 54956.9(d)(1) 2. 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, Tori Anthony, Molly Stump, and Jennifer Fine) Employee Organization: Service Employees International Union, (SEIU) Local 521, Utilities Management and Professional Association of Palo Alto (UMPAPA), Palo Alto Peace Officers’ 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) MOTION: Mayor Stone moved, seconded by Council Member Lauing to go into Closed Session. MOTION PASSED: 7-0 Council went into Closed Session at 5:03 P.M. Council returned from Closed Session at 7:33 P.M. Mayor Kou reported that the Council voted on Item 1 to authorize staff to seek review in the California Supreme Court of the Sixth District appeal decision as follows: 6-1, Tanaka no. Mayor Kou announced no reportable action for Item 2. Item 5 Attachment A - April 17, 2023 Draft Action Minutes Item 5: Staff Report Pg. 2 Packet Pg. 13 of 259 DRAFT ACTION MINUTES Page 2 of 6 Sp. City Council Meeting Draft Action Minutes: 04/17/2023 Study Session 3. Study Session Regarding Proposed Electric, Gas, Water and Wastewater July 2023 Rate Changes ACTION: None Agenda Changes, Additions and Deletions Public Comment Consent Calendar Council Member Tanaka registered a no vote on Agenda Item Number 8, 10 ,11, 13. MOTION: Mayor Kou moved, seconded by Council Member Burt to approve Agenda Item Numbers 4-13, AA1. MOTION SPLIT FOR THE PURPOSE OF VOTING MOTION PASSED ITEMS 4-7, 9, 12, AA1: 7-0 MOTION PASSED ITEMS 8, 10, 11, 13: 6-1, Tanaka no 4. Approval of Minutes from March 31, 2023 and April 3, 2023 City Council Meetings 5. Finance Committee and the Utilities Advisory Commission Recommend the City Council Approve and Authorize the City Manager or Their Designee to Execute a Third Phase Agreement With Northern California Power Agency for the Purchase of up to 87,600 Megawatt Hours per Year of Geothermal Energy From Calpine Corporation's Geysers Power Company, LLC Over a Term of up to 12 Years for a Total not to Exceed Amount of $76.2 Million; CEQA status: not a project under CEQA Guidelines sections 15378(a) and (b) 6. Stanford University Medical Center (SUMC) Annual Report to Council for Fiscal Year 2021- 2022 7. Approval of Amendment #3 with Professional Account Management LLC, dba Duncan Solutions Contract (C17164727) in the Amount of $80,000 and to Extend the Contract Term to April 28, 2024 for Parking Citation Management; CEQA Status – Not a Project. Item 5 Attachment A - April 17, 2023 Draft Action Minutes Item 5: Staff Report Pg. 3 Packet Pg. 14 of 259 DRAFT ACTION MINUTES Page 3 of 6 Sp. City Council Meeting Draft Action Minutes: 04/17/2023 8. Resolution 10098 to Oppose the Taxpayer Protection and Government Accountability Act (Initiative 21-0042A1) 9. Approve Substantial Amendments to the Community Development Block Grant (CDBG) FY2021-22 and FY2022-23 Annual Action Plans and the Associated Budget Amendment and Resolution 10099 10. Staff Recommends that Council Approve Bringing the Water and Wastewater Rate Proposals to Council on June 19, 2023, Pending Proposition 218 Notifications, for a Public Hearing to Consider Two Resolutions: 1) Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, Proposed Reserve Transfers, and Increasing Wastewater Collection Utility Rates by Amending Wastewater Collection Rate Schedules S-1, S-2, S-6 and S-7; 2) Approving the Fiscal Year 2024 Water Utility Financial Plan, Proposed Reserve Transfers, and Increasing Water Rates by Amending Water Rate Schedules W-1, W-2, W- 3, W-4, and W-7; CEQA Status: Not a project under Public Resources Code 15378(b)(5) 11. Adoption of a Memorandum of Agreement with the Palo Alto Police Officers' Association and the Police Management Association; Adopt an Amendment to correct the Fire Chiefs‘ Association salary schedules; and, Adopt revised Management and Professional salary schedules CEQA Status - Not a project 12. Approval of a Funding Agreement with the Santa Clara Valley Water District for Reimbursement Costs Incurred in Support of the Purified Water Project, and a Budget Amendment in the Wastewater Treatment Fund Advanced Water Purification Facility capital project (WQ-19003) 13. Approval of Tenant Work Letter for Lease of 300 Homer Avenue Roth Building between the City of Palo Alto and the Palo Alto Museum; CEQA Status--Not a Project AA1. Adoption of a Resolution 10100 Authorizing the City Manager to Execute Participation Agreements on Behalf of the City of Palo Alto to Enter Into Settlement Agreements Regarding Manufacture and Distribution of Opioid Products with Allergan Finance, LLC and related entities (Allergan), Teva Pharmaceutical Industries Ltd. and related entities (Teva); Walgreens Co.; CVS Health Corporation and CVS Pharmacy, Inc. (CVS), and Walmart, Inc.; Agree to the Terms of the Memorandum of Understanding (MOU) Allocating Settlement Proceeds; and Authorize Entry Into the MOU with the California Attorney General. City Manager Comments Ed Shikada, City Manager Item 5 Attachment A - April 17, 2023 Draft Action Minutes Item 5: Staff Report Pg. 4 Packet Pg. 15 of 259 DRAFT ACTION MINUTES Page 4 of 6 Sp. City Council Meeting Draft Action Minutes: 04/17/2023 Action Items 14. PUBLIC HEARING: Adoption of a Resolution 10101 Approving the Fiscal Year 2024 Gas Utility Financial Plan, Including Proposed Reserve and General Fund Transfers and Amending the Gas Utility Reserve Management Practices, and Increasing Gas Rates by Amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G-10 (Compressed Natural Gas Service); CEQA status: exempt/not a project under Public Resources Code section 21080(b)(8) MOTION: Mayor Kou moved, seconded by Council Member Burt to adopt a resolution (Attachment A): a) Approving the fiscal year (FY) 2024 Gas Utility Financial Plan (Attachment B); b) Amending the Gas Utility Reserve Management Practices (Attachment C); c) Transferring up to 18% of gas utility gross revenues received during fiscal year 2021 to the general fund in FY 2023; d) Transferring up to 15.5% of gas utility gross revenues received during fiscal year 2022 to the general fund in FY 2024; e) Transferring up to $3.82 million from the CIP Reserve to the Operations Reserve in FY 2023; and f) Increasing gas rates by amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G-10 (Compressed Natural Gas Service) (Attachment D). MOTION PASSED: 6-1, Tanaka no 15. PUBLIC HEARING: Adoption of a Resolution 10102 Approving the Fiscal Year 2024 Electric Utility Financial Plan and Proposed Reserve Transfers, Deactivating Utility Rate Schedule E-HRA, and Amending Utility Rate Schedules E-1, E-2, E-2-G, E- 4, E-4-G, E-4 TOU, E-7, E- 7-G, E-7 TOU, E-NSE, and E-EEC; CEQA Status: Not a project under Public Resources Code 15378(b)(5) and exempt under Public Resources Code 15273(a) MOTION: Council Member Burt moved, seconded by Vice Mayor Stone to adopt a Resolution (Attachment A): 1) Approving the FY 2024 Electric Financial Plan (Attachment B); and 2) Approving the following transfers at the end of FY 2023: Item 5 Attachment A - April 17, 2023 Draft Action Minutes Item 5: Staff Report Pg. 5 Packet Pg. 16 of 259 DRAFT ACTION MINUTES Page 5 of 6 Sp. City Council Meeting Draft Action Minutes: 04/17/2023 a. Up to $12 million from the Supply Operations Reserve to the Distribution Operations Reserve; and b. Up to $4.5 million from the Supply Operations Reserve to the Cap and Trade Program Reserve; and 3) Approving the following transfers in FY 2024: a. Up to $10 million from the Supply Operations Reserve to the Electric Special Projects (ESP) reserve; and b. Up to $8 million from the Supply Operations Reserve to the Hydroelectric Stabilization Reserve; and c. Up to $3 million from the Supply Operations Reserve to the Cap and Trade Program Reserve; and 4) Approving the following rate actions for FY 2024 (Attachment C): a. Deactivation of the hydroelectric rate adjuster from customer bills effective July 1, 2023; b. An increase to retail electric rates E-1 (Residential Electric Service), E-2 (Small Non- Residential Electric Service), E-4 (Medium Non-Residential Electric Service), E-4 TOU (Medium Non-Residential Time of Use Electric Service), E-7 (Large Non- Residential Electric Service), and E-7 TOU (Large Non-Residential Time of Use Electric Service) of 21% effective July 1, 2023; c. An increase to the Export Electricity Compensation (E-EEC-1) rate to reflect 2022 avoided cost, effective July 1, 2023; d. An increase to the Net Surplus Electricity Compensation (E-NSE-1) rate to reflect current projections of FY 2023 avoided cost, effective July 1, 2023; and e. An update to the Residential Master-Metered and Small Non-Residential Green Power Electric Service (E-2-G), the Medium Non-Residential Green Power Electric Service (E4-G), and the Large Non-Residential Green Power Electric Service (E-7- G) rate schedules to reflect modified distribution and commodity components, effective July 1, 2023 MOTION PASSED: 6-1, Tanaka no Council Member Questions, Comments and Announcements Item 5 Attachment A - April 17, 2023 Draft Action Minutes Item 5: Staff Report Pg. 6 Packet Pg. 17 of 259 DRAFT ACTION MINUTES Page 6 of 6 Sp. City Council Meeting Draft Action Minutes: 04/17/2023 Adjournment: The meeting was adjourned at 10:18 P.M. ATTEST: APPROVED: ____________________ ____________________ City Clerk Mayor NOTE: Action minutes are prepared in accordance with Palo Alto Municipal Code (PAMC) 2.04.160(a) and (b). Summary minutes (sense) are prepared in accordance with PAMC Section 2.04.160(c). Beginning in January 2018, in accordance with Ordinance No. 5423, the City Council found action minutes and the video/audio recordings of Council proceedings to be the official records of both Council and committee proceedings. These recordings are available on the City’s website. Item 5 Attachment A - April 17, 2023 Draft Action Minutes Item 5: Staff Report Pg. 7 Packet Pg. 18 of 259 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: May 1, 2023 Report #:2304-1290 TITLE SECOND READING: Adoption of a Park Improvement Ordinance for Renovations and new Amenities at Rinconada Park (FIRST READING: January 13, 2020 PASSED 7-0) RECOMMENDATION Staff recommends the City Council adopt the attached Park Improvement Ordinance for Rinconada Park on second reading. BACKGROUND AND DISCUSSION On January 13, 2020, the City Council considered an ordinance1 to approve various improvements to Rinconada Park. The Council adopted the ordinance2. The motion as it appears in the final minutes3 is: MOTION: Vice Mayor DuBois moved, seconded by Council Member Cormack to approve Park Improvement Ordinance 5487 Entitled, “Park Improvement Ordinance of the Council of the City of Palo Alto for Renovations and new Amenities at Rinconada Park as Recommended by the Parks and Recreation Commission. MOTION PASSED: 7-0 ENVIRONMENTAL REVIEW This ordinance as recommended is categorically exempt from the provisions of the California Environmental Quality Act (“CEQA”) under CEQA regulations 15301 (Existing Facilities) and 15304 (Minor Alterations of Land). ATTACHMENTS Attachment A: Ordinance Approving and Adopting a Plan for the Renovation Project at Rinconada Park 1 City Council, January 13, 2020; Agenda Item #2; SR #10576, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=80654 2 Park Improvement Ordinance No. 5487; https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=18275 3 City Council, January 13, 2020; Final Minutes, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=42618 Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 1 Packet Pg. 19 of 259 APPROVED BY: Brad Eggleston, Director Public Works/City Engineer Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 2 Packet Pg. 20 of 259 1 ORDINANCE NO. 5487 The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings. The City Council finds and declares that: (a) Article VIII of the Charter of the City of Palo Alto and Section 22.08.005 of the Palo Alto Municipal Code require that, before any substantial building, construction, reconstruction or development is commenced or approved, upon or with respect to any land held by the City for park purposes, the Council shall first cause to be prepared and by ordinance approve and adopt a plan therefor. (b) Rinconada Park (the “Park”) is dedicated to park purposes. (See Palo Alto Municipal Code sections 22.08.210-212.) (c) The City intends to authorize the construction of pathways, picnic area, playground, restroom, site furnishing, planting, signage and irrigation; as well as renovation of the existing picnic area. (d) The plan of renovations (the “Project”) shall generally be comprised, as follows: (1) The removal and replacement of the children’s playground and “tot lot” playground; (2) The renovation of the existing group picnic area including new paving and site furnishing; (3) The replacement of existing asphalt pathways with concrete pathways in the west portion of the park; (4) The addition of a new group picnic area at the rear of the new zoo; (5) The installation of a new restroom building along Hopkins Avenue; (6) The installation of new way finding signage; (7) The installation of native and habitat gardens; (8) The installation of a fire pit; and (9) The installation of a new site furnishing including picnic tables, recycling/composting receptacles, benches, bike racks and drinking fountains. (e) The Project described above and as otherwise depicted in the attached exhibit, is consistent with park, playground, recreation, and conservation purposes. (f) The Council desires to approve the plan for the Project described above. SECTION 2. The Council hereby approves the plan for the construction of improvements in the Park described in this Ordinance. Item 6 Attachment A - Ordinance Approving and Adopting a Plan for the Renovation Project at Riconada Park Item 6: Staff Report Pg. 3 Packet Pg. 21 of 259 2 SECTION 3. The City Council finds that this ordinance falls under the California Environmental Quality Act (CEQA) exemptions found in Title 14 California Code of Regulations Section: 15301 (Existing Facilities), and 15304 (Minor Alterations of Land). SECTION 4. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Community Services ____________________________ Director of Administrative Services Item 6 Attachment A - Ordinance Approving and Adopting a Plan for the Renovation Project at Riconada Park Item 6: Staff Report Pg. 4 Packet Pg. 22 of 259 1 7 7 5 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: May 1, 2023 Report #:2302-1024 TITLE Rental Residential Vacancy Rate Determination for Three Plus Dwelling Units for 2022 RECOMMENDATION This is an informational report and City Council action is not required. EXECUTIVE SUMMARY This report transmits the biannual reporting of the vacancy rates of three or more residential rental units for December 2022. The vacancy rate is 1.16%. When the vacancy rate is less than the 3% threshold, applications to convert residential rental units to ownership units through the subdivision process are not eligible for consideration. BACKGROUND Planning staff prepares the Residential Vacancy Rate Determination Report twice a year to meet the requirements of Palo Alto Municipal Code Section 21.40.040, Determination of Vacancy Rate and Surplus. Section 21.40.0401 states the following: ”In April and November of each year, the director of planning and community environment shall determine from the city utility meter records the vacancy rate and the vacancy surplus, if any, within the city limits. New market-priced rental units available to the general public, for which a certificate of use and occupancy has been issued since the last vacancy survey, shall be added on a unit-for-unit basis either to reduce the vacancy deficiency or to increase the vacancy surplus.” All conversions involving a change in the type of ownership of three or more rental units are subject to the provisions of this chapter. Vacancy surplus in this section of the Municipal Code is defined as the number of rental units being offered for rent or lease in excess of the 3% vacancy rate. No application for consideration of a tentative or preliminary parcel map for a subdivision 1 Municipal Code Chapter 21.40: https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-19994 Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 1 Packet Pg. 23 of 259 1 7 7 5 created from a conversion may be filed with the city unless there is a vacancy surplus of 3% or more as of the most recent determination pursuant to Section 21.40.040. The purpose of this reporting effort is to seek a reasonable balance of rental and ownership housing in the city in a variety of individual choices of tenure, type, price, and location of housing. It is also to protect the supply of multi-family rental housing stock in the city for low- and moderate-income families, and to reduce and avoid displacement of tenants, particularly seniors and families. ANALYSIS Latest Vacancy Rate Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 2 Packet Pg. 24 of 259 1 7 7 5 Year Estimated Housing Units2 Utility Accounts Deemed “Vacant” Estimated Vacancy Rate (yearly average)3 2015 7,901 92 1.22% 2016 7,912 118 1.45% 2017 7,928 131 1.58% 2018 7,928 132 1.52% 2019 7,931 141 1.83% 2020 8,057 226 2.8% 2021 8,057 55 1.13% 2022 8,057 56 1.16% FISCAL/RESOURCE IMPACT Planning staff prepares this report biannually and there are no resource impacts. STAKEHOLDER ENGAGEMENT This is an informational report for the City Council and does not require any stakeholder engagement. ENVIRONMENTAL REVIEW This project is exempt from environmental review under Section 15061 of the California Environmental Quality Act Guidelines. ATTACHMENTS None. APPROVED BY: Jonathan Lait, Planning and Development Services Director 2 The U.S. Census Bureau Decennial Census 2010 data is used as a baseline for the total rental stock data in Palo Alto and changes (addition or demolition) to the total rental dwelling unit stock are tracked by staff biannually using the City of Palo Alto’s land use management system (Accela) to generate the vacancy rate. Staff expected to update the baseline with the release of the 2020 Decennial Census; however, the U.S. Census Bureau decided to discontinue the rental data point and staff will continue to use the original methodology. 3 This percentage is the number of utility accounts deemed “vacant” divided by the utility accounts sample size. Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 3 Packet Pg. 25 of 259 1 9 6 0 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: May 1, 2023 Staff Report: 2303-1215 TITLE Approval of Amendment Number 4 to Contract Number C20176363 with Magellan for; 1) Program Management, Network Operations, and Technical Support for Fiber-to-the-Premises to; 2) Increase Compensation by $2,770,960 for a New Total Not to Exceed Amount of $5,685,291; 3) Extend the Contract Term by 31 months through December 31, 2025; and 4) Approval of a Budget Amendment in the Fiber Optics Fund RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or their designee to execute Amendment No. 4 to Contract C20176363 (Attachment A) with Magellan Advisors, LLC (Magellan), for the continued provision of consulting services for a multi-phased fiber optic network expansion plan, which includes program management of construction of the fiber backbone and phase 1 of Fiber-to-the-Premises (FTTP), network operations and technical support, and electrical make ready engineering in an amount not to exceed $2,473,600; 2. Authorize the City Manager or their designee to negotiate and execute one or more task orders for additional services under the contract with Magellan for related additional, but unforeseen work which may develop during the project, the total of which shall not exceed $247,360, or 10% for a total not to exceed amount of $2,770,960 for all contract phases, including $50,000 in reimbursable travel expenses. 3. Amend the Fiscal Year 2023 Budget Appropriation for the Fiber Optic System Fund (requires 2/3 approval) by: a. Increasing the budget appropriation for Fiber-to-the-Premises CIP (FO-24000) by $2,770,960; and b. Decreasing the Fiber Optic Fund Rate Reserve Balance by $2,770,960. Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 1 Packet Pg. 26 of 259 1 9 6 0 EXECUTIVE SUMMARY 1. Building the fiber backbone and last mile infrastructure to provide FTTP broadband internet to the community will be a significant undertaking for the City. While it is economically prudent to utilize available resources, the City must also strategically invest in external resources for a strong roll-out. BACKGROUND 2. 3. 1 City Council Staff Report 14800 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20221219/20221219pccsm-amendedtime.pdf 2 Council Staff Report 11368 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2020/id-11368-mini-packet.pdf?t=64318.92 3 Council Staff Report 11580 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2020-2/id-11580.pdf?t=59010.48 Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 2 Packet Pg. 27 of 259 1 9 6 0 community engagement, and FTTP business plan and pro forma financial statements (Council Report #12305)4. 5. ANALYSIS 4 Council Staff Report 12305 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2021/id-12305.pdf 5 Council Staff Report 14800 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20221219/20221219pccsm-amendedtime.pdf Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 3 Packet Pg. 28 of 259 1 9 6 0 Task 3 – Bid Ready Construction Drawings Prepare bid ready construction drawings and bid packages for the fiber backbone and FTTP. Task 4 - Construction Bid Evaluation Assist City staff with bid evaluations for the fiber backbone and FTTP. Task 5 - Permitting Prepare and manage permit submissions required by the agencies impacted by phase 1 including the City of Palo Alto, Santa Clara County, Caltrans and other agencies. Task 6 – Engineering Design Updates Through permitting process and construction, incorporate field changes into the aerial and underground fiber network design. Task 7 – Final As-Built Documentation Provide final construction documentation for phase 1 including redlines for equipment, splice and termination records from the City’s construction manager. Task 8 – Equipment Specifications and Procurement Develop specifications for network equipment for the competitive bid process. Task 9 – Testing and Certification Oversight Manage, test and integrate with outside plant and electronics to ensure that the network meets the speed, reliability and resiliency goals laid out in the plans and specifications. Task 10 – Operational Processes and Systems Complete integration of cross-functional network elements including inventory staging, install scheduling, pre-install site survey, actual drop and install, services provisioning, testing, client acceptance and billing. Task 11 – Organizational Support Develop a broadband organization, including new hire processes, insource/outsource decisions, management of operational standards, procurement evaluation, and financial and regulatory reporting. Task 12 – Fiber Drop Installations and Activation Management Manage and schedule fiber drop and customer activations, including home equipment installations and related components to activate customers. Task 13 – Network Operations and Technical Support Assist with major outages, develop and conduct maintenance window activities, network planning and upstream provider support. Provide 24/7/365 monitoring and issue management services. Task 14 – Electrical Make-Ready Engineering Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 4 Packet Pg. 29 of 259 1 9 6 0 Provide engineering pole make-ready analysis includes field work, pole modeling, and creation of construction prints. Some of the make-ready engineering and pole replacements costs may be assigned directly to the Electric utility depending on the condition of the pole. TIMELINE AND COMPENSATION CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $2,523,600 and the total compensation for Additional Services does not exceed $247,360. Task Start End Total Budget Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 5 Packet Pg. 30 of 259 1 9 6 0 Task 10: Operational Processes and Systems 6/1/2023 3/31/2025 $ 110,000 Task 11: Organizational Support 6/1/2023 10/1/2023 $ 165,000 Task 12: Fiber Drop Installations & Customer Activation Management 10/1/2024 3/31/2025 $ 150,000 Task 13: Network Operations & Tech Support 10/1/2024 3/31/2025 $ 495,000 Task 14: Electrical Make Ready Engineering (300 poles @ $750.00 per pole) 6/1/2023 3/31/2025 $ 225,000 Subtotal $ 2,473,600 Contingency (10% of Subtotal Budget) $ 247,360 Reimbursable Travel Expenses $ 50,000 Total $ 2,770,960 STAFFING As the City solidifies staffing plans in parallel with contracted services, the Director of Information Technology will take on the responsibilities of an Assistant Director for Palo Alto Fiber on an interim basis. As part of the development of the FY 2024 budget, staff will be bringing forward a recommendation to add four (4) new FTE positions for the dark fiber expansion and implementation of FTTP. These positions are Assistant Director, Outside Plant Manager, Marketing and Sales Manager and Network Architect/Senior Engineer. These positions will be recruited and filled as needed during the various stages of the project. FISCAL/RESOURCE IMPACT Approval of this contract amendment with Magellan requires a FY 2023 budget amendment in the Fiber Fund to increase expenses in the Fiber-to-the-Premise project (FO-24000) by $2,770,960 offset with a commensurate decrease of $2,770,960 to Fiber Fund reserves. Funding for this amendment was initially included in the development of the FY 2024 Capital budget for the 2024-28 CIP. If Council approves this FY 2023 budget amendment, the FY 2024 budget will be updated accordingly. STAKEHOLDER ENGAGEMENT The table below provides a snapshot of the public information efforts and community engagement seen between October 2021 to August 3, 2022: Communications Tool Metrics - Visits: 12,221Palo Alto Fiber Hub - Neighborhood Pins: 2743 Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 6 Packet Pg. 31 of 259 1 9 6 0 - Subscribers: 949Palo Alto FIBERLink Digital Newsletter - Average Open Rate: 75.2% Palo Alto Fiber Blog Series - Views: 2,448 Information Session and recording views - 80 attendees, 105 views Fiber videos - 535 Views - 3,561 surveys completed Market Survey - 738 deposits received ENVIRONMENTAL REVIEW Council action on this item is exempt from CEQA review because it can be seen with certainty that there is no possibility that the additional scope of work covered by this contract amendment may have a significant effect on the environment. CEQA Guidelines section 15061(b)(3). ATTACHMENTS: Attachment A: C20176262 Amendment 4 APPROVED BY: Dean Batchelor, Director Utilities Dave Yuan, Strategic Business Manager Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 7 Packet Pg. 32 of 259 Vers.: Aug. 5, 2019 Page 1 of 13 AMENDMENT NO. 4 TO CONTRACT NO. C20176363 BETWEEN THE CITY OF PALO ALTO AND MAGELLAN ADVISORS LLC. This Amendment No. 4 (this “Amendment”) to Contract No. C20176363 (the “Contract” as defined below) is entered into as of April 3, 2023, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and MAGELLAN ADVISORS LLC., a Florida limited liability company, located at 450 Alton Road 1402, Miami, FL 33139 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision of consulting services for Phase 1 of a multi-phase fiber optic network expansion plan, as detailed therein. B. The Parties now wish to amend the Contract in order to extend the contract term by 32 months and to increase the compensation by $2,770,960 from $2,914,331 to $5,685,291 for the construction phase 1 as specified in the revised Exhibit “A” Scope of Services. NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the Parties agree: SECTION 1. Definitions. The following definitions shall apply to this Amendment: a. Contract. The term “Contract” shall mean Contract No. C20176363 between CONSULTANT and CITY, dated June 1, 2020, as amended by: Amendment No.1, dated October 5, 2020 Amendment No.2, dated May 18, 2021 Amendment No.3, dated October 1, 2022 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2 “TERM” of the Contract is hereby amended to read as follows: “SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through December 31, 2025 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.” SECTION 3. Section 4. “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows: DocuSign Envelope ID: C1C2531D-A32E-4332-B538-286B8A51F348 Item 8 Attachment A - C20176363 - Amendment 4 Item 8: Staff Report Pg. 8 Packet Pg. 33 of 259 Vers.: Aug. 5, 2019 Page 2 of 13 SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Five Million One Hundred Seventy-Two Thousand Nine Hundred Nintey-Two Dollars ($5,172,992). 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 Five Hundred Twelve Thousand Two Hundred Ninety-Nine Dollars ($512,299) 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 Five Million Six Hundred Eighty-Five Thousand Two Hundred Ninety-One Dollars ($5,685,291), 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 DocuSign Envelope ID: C1C2531D-A32E-4332-B538-286B8A51F348 Item 8 Attachment A - C20176363 - Amendment 4 Item 8: Staff Report Pg. 9 Packet Pg. 34 of 259 Vers.: Aug. 5, 2019 Page 3 of 13 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 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “A” entitled “SCOPE OF SERVICES”, AMENDED, REPLACES PREVIOUS. b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS. c. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS. d. Exhibit “C-1” entitled “SCHEDULE OF RATES”, 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: C1C2531D-A32E-4332-B538-286B8A51F348 Item 8 Attachment A - C20176363 - Amendment 4 Item 8: Staff Report Pg. 10 Packet Pg. 35 of 259 Vers.: Aug. 5, 2019 Page 4 of 13 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO _____________________________ City Manager APPROVED AS TO FORM: _____________________________ City Attorney or designee MAGELLAN ADVISORS LLC. By:______________________________ Name:___________________________ Title:____________________________ By:______________________________ Name:___________________________ Title:____________________________ Attachments: EXHIBIT “A”: SCOPE OF SERVICES (AMENDED, REPLACES PREVIOUS) EXHIBIT “B”: SCHEDULE OF PERFORMANCE (AMENDED, REPLACES PREVIOUS) EXHIBIT “C”: COMPENSATION (AMENDED, REPLACES PREVIOUS) EXHIBIT “C-1”: SCHEDULE OF RATES (AMENDED, REPLACES PREVIOUS) DocuSign Envelope ID: C1C2531D-A32E-4332-B538-286B8A51F348 John Honker President COO Courtney Violette Item 8 Attachment A - C20176363 - Amendment 4 Item 8: Staff Report Pg. 11 Packet Pg. 36 of 259 Vers.: Aug. 5, 2019 Page 5 of 13 EXHIBIT “A” SCOPE OF SERVICES (AMENDED, REPLACES PREVIOUS) AMENDMENT NO. 4 Task 1: Program Management Magellan will provide a Project Manager (“PM”) to manage deployment of Phase 1 including the following tasks: • Manage and coordinate day-to-day activities in the project to support the overall deployment of Phase 1. • Manage the overall project plan and performance to milestone dates. • Develop and manage a communications plan for all stakeholders in the project. • Develop a construction work plan for the project. • Work with the Construction Manager and Construction Inspector teams to manage the construction work plan, including tracking to schedule, budget, issue identification and resolution and risk mitigation. • Provide regular progress reports, and schedule and coordinate all project related calls, and discussions with vendors and contractors. • Escalate issues as they occur in the project. • Track the overall project budget to plan and communicate progress and variances. • Refine and revise the project implementation plan to reflect the Outside Plant, Inside Plant and Facilities deployment schedule and all necessary steps for implementation and turn-up of the network. • Manage change control in the project, including design changes, budget changes, project impact assessment, notifications, field changes, vendor change orders, permit approvals. • Manage vendor invoice submission, review and approvals for construction, equipment and professional services. Task 2: Environmental Analysis Magellan will work with City staff to determine environmental impacts to the project, to include: • Preliminary CEQA review for underground and aerial construction to support the City’s analysis of whether the project may require CEQA clearing, significant findings or a negative declaration. • Desktop studies of the current project to review construction, restoration and temporary versus permeant impacts as a result of the project. • Engineering support for alignments, facilities and pole lines, floodplain, transportation and other datasets that may be required to assess environmental impacts • Siting for the fiber hut required in Phase 1 to determine possible locations in the context of minimizing environmental impacts Task 3: Bid Ready Construction Drawings and Bid Package for the Fiber Backbone & FTTP DocuSign Envelope ID: C1C2531D-A32E-4332-B538-286B8A51F348 Item 8 Attachment A - C20176363 - Amendment 4 Item 8: Staff Report Pg. 12 Packet Pg. 37 of 259 Vers.: Aug. 5, 2019 Page 6 of 13 Magellan’s project team will deliver all supporting documents needed to bid out construction of fiber backbone and phase 1 of FTTP. Once the low-level design is complete, all bid documentation requested will be delivered to the City to include construction ready prints, construction details, splice details, as well as all documentation needed to complete the bid package. This shall include a written summary and scope of work, estimated costs to construct, as well as labor estimates, bill of materials, and vendor list Task 4: Assist City Staff with Construction Bid Evaluation for the Fiber Backbone & FTTP Magellan will advise the City throughout the construction bid evaluation process for the fiber backbone and FTTP. Upon receipt of all bids, Magellan will prepare a bid evaluation matrix and tabulation. Magellan will work with the City to review all bids and provide guidance to the City on how bids should be evaluated as well as pros and cons of each bid. Magellan will also review all bid responses to identify any bid irregularities that may be encountered in the review process that could impact long-term project costs. Magellan’s support for the City’s Invitation For Bid (IFB) process will include, if directed by the City, any of the following: attendance at the pre-bid conference, preparing any necessary addenda, assisting the City with responses to bidder questions, and attending the bid opening. Task 5: Permitting Magellan will prepare and manage permit submissions required by the jurisdictions impacted by Phase 1. This includes: • Researching, preparing submitting and tracking all permits required by the City of Palo Alto, Santa Clara County, railroads, Caltrans and other agencies. • Preparing pole attachment application packages for use of the City’s existing distribution poles. • Tracking the progress of all permits through to completion and close out. • Distributing approved permits to the City’s construction contractor. • Revision and resubmittal of permit packages based on responses received from all agencies. Task 6: Design Engineering Updates Through the permitting process and construction, routine design updates will be provided by Magellan. These include: • Incorporation of field changes into the design • Aerial to underground conversions where required and vice versa • Revision of permit packages based on field changes • Revision and resubmittal of permit packages based on responses received from agencies. DocuSign Envelope ID: C1C2531D-A32E-4332-B538-286B8A51F348 Item 8 Attachment A - C20176363 - Amendment 4 Item 8: Staff Report Pg. 13 Packet Pg. 38 of 259 Vers.: Aug. 5, 2019 Page 7 of 13 • Updates to the splicing and termination plans Task 7: Final As-Built Documentation Magellan will prepare final as-built documentation including final construction records for Phase 1, including: • Update redlines from the City’s construction manager • Provide equipment, splice, and termination records • Closed out permit packages • Final construction accounting and close out • Punch list checkoffs • Equipment diagrams • Equipment configurations • FMS integration and support Task 8: Equipment Specifications and Procurement Development of the equipment procurements to support phase 1, including: • Development of the specifications for network equipment • Final master budget for equipment • Procurement documents for core network, access network and customer premises equipment • Management of the bid process for equipment procurements, including attending pre-bid meetings, answering questions and supporting the evaluation and selection of vendors. Task 9: Testing and Certification Oversight Magellan’s team will manage the testing, certification and integration of any outside plant and electronics for Phase 1, working with construction and equipment vendors to ensure that the network meets the speed, reliability and resiliency goals laid out in the plans and specifications. These tasks include: • End to end testing for new OLTs, ONTs, in-home equipment • Core and edge switch and router testing • Managing vendor professional service teams • Coordinating integration and new customer activations • Working with equipment vendors on integration testing with City systems Task 10: Operational Processes and Systems A critical element for a successful network is a complete integration of cross-functional network elements. Magellan will work toward a seamless integration all the way from order input to finished installs and services turn-up. Cross-functional areas as inventory staging, install scheduling, DocuSign Envelope ID: C1C2531D-A32E-4332-B538-286B8A51F348 Item 8 Attachment A - C20176363 - Amendment 4 Item 8: Staff Report Pg. 14 Packet Pg. 39 of 259 Vers.: Aug. 5, 2019 Page 8 of 13 pre-install site survey, actual drop and install, services provisioning, testing, client acceptance and billing are some of the major areas that must be completely integrated and managed on an ongoing basis. Efficient, repeatable and scalable operations policies and procedures are required to support a successful network deployment. The scope of this task includes: • Defining work order processes for plant construction, fiber drops, home installations and change orders • Identifying systems to support work order management, provisioning, inventory and warehousing • Establishing and documenting policies, procedures and business processes • Recommending accounting system setup for broadband, including chart of accounts and accounting policies • Identifying, federal and state reporting requirements and providing legal/policy recommendations (i.e. MDU access) Task 11: Organizational Support Magellan will work with the City to support the development of the broadband organization, including the new hire process, insourcing/outsourcing decisions and management and operational strategies for the City. This includes: • Job descriptions for new City staff • Org chart, management and departmental resources • Financial management practices • Pro forms and budgeting • Reporting • Insourcing/outsourcing assessment • Procurement, evaluation and selection of outsourced vendors Task 12: Fiber Drop and Customer Activations Magellan will work with the City and fiber drop contractor to manage fiber drop installation, home equipment installation and related components to activate customers. This task includes: • RFP for fiber service drop contractor, including development of the documents, attending pre-bid meetings, evaluating respondents and assisting with final selection. • Fiber drop survey in rights of way and customer premises • Scheduling fiber drop installation contractor • Scheduling in-home installation and service activation • QA/QC fiber drop installation • Documenting final as-builts for drop installation DocuSign Envelope ID: C1C2531D-A32E-4332-B538-286B8A51F348 Item 8 Attachment A - C20176363 - Amendment 4 Item 8: Staff Report Pg. 15 Packet Pg. 40 of 259 Vers.: Aug. 5, 2019 Page 9 of 13 Task 13: Network Operations and Tech Support Tier 2 Engineering Support –Escalation support for customers to assist with access equipment and network issues beyond the scope of the tier 1 customer service and tech support. • Access equipment troubleshooting from the ONT back to the network • Access equipment planning and deployment support • Troubleshooting initial installations Tier 3 Engineering Support –Network engineering to assist with major outages, develop and conduct maintenance window activities, network planning and upstream provider support. • Layer 3 IP Network Engineering Troubleshooting and Support • Layer 3 Routing and Layer 2/3 MPLS Planning and Deployment Support • Carrier-Grade NAT and IPv6/IPv4 Implementation • Configuration Backup and Management • BGP Policy and BGP Community Group Planning and Engineering • Upstream Provider Engineering and Troubleshooting Support • Maintenance Window Planning and Execution • Capacity planning and upgrades NOC Services –24 x 7 Monitoring and Issue Management Services • 24 x 7 Monitoring with Outage and Issue Management • Engagement of Tier 2, Tier 3 and Vendor Resources • Post-mortem and Reason for Outage Support • Network traffic monitoring and management Task 14: Electrical Make Ready Engineering Make-ready engineering for pole changeouts and electrical work will be completed in advance of any fiber installation. Engineering includes field work, pole modeling, and creation of construction prints. Magellan will enlist resources from ENTRUST Solutions Group, who wholly owns Magellan to complete all electrical make ready work. ENTRUST provides significant electrical engineering services for utilities across California. Field Work: When field data is not provided or additional data is needed, ENTRUST’s experienced field crews will visit the locations where make ready design is requested. At each location, ENTRUST will: • Look for any NESC and (CPUC GO95) clearance violations, review site safety concerns, and identify any other conditions that could impact a new attachment on the pole. DocuSign Envelope ID: C1C2531D-A32E-4332-B538-286B8A51F348 Item 8 Attachment A - C20176363 - Amendment 4 Item 8: Staff Report Pg. 16 Packet Pg. 41 of 259 Vers.: Aug. 5, 2019 Page 10 of 13 • All data will be collected using existing field apps. • Measure of all relevant cable sages and pole attachments. • Collect photos of the pole and the surrounding area. • Collect data for any adjacent poles that may be impacted by the make ready design. • Coordinate with CPAU Electric Engineering for list of poles already marked for replacement. • Submit, process, and review responses related to joint pole intent forms and coordination with AT&T for all pole replacements. Pole Modeling: When new attachments are added it is important to model the pole to identify any potential concerns with structural overloading or clearance violations. O’Calc will be used to create all models. Each model will: • Determine if additional loading can be handled by existing structure or if remediation is required. • Confirm sag clearance between proposed and existing cables as well as ground clearance meet code requirements. • Validate new designs are structurally sound and do not create any code violations. • Coordinate with CPAU Electric Engineering for additional pole space and loading requirements due to Electrification or for other infrastructure improvements. Construction Design: Utilizing the data form the field and structural analysis, ENTRUST will create a construction packet. Deliverables will include • Overview showing location of poles within scope. • Staking Sheet, detailing RUS standard to be utilized and any notes for construction. • Structural report from O’Calc. DocuSign Envelope ID: C1C2531D-A32E-4332-B538-286B8A51F348 Item 8 Attachment A - C20176363 - Amendment 4 Item 8: Staff Report Pg. 17 Packet Pg. 42 of 259 Vers.: Aug. 5, 2019 Page 11 of 13 EXHIBIT “B” SCHEDULE OF PERFORMANCE (AMENDED, REPLACES PREVIOUS) Task Start End Task 1: Project Management 6/1/23 12/31/25 6/1/23 9/1/23 for the Fiber Backbone and FTTH (Old Tasks 7 and 8) 6/1/23 7/1/23 Fiber Backbone and FTTH (Old Task 18 and 19) 5/1/23 7/1/23 4/1/23 3/31/24 4/1/23 3/31/25 10/1/24 3/31/25 4/1/23 9/15/23 1/1/24 3/31/25 4/1/23 3/31/25 4/1/23 10/1/23 6/1/24 3/31/25 1/1/24 3/31/25 4/1/23 3/31/25 DocuSign Envelope ID: C1C2531D-A32E-4332-B538-286B8A51F348 Item 8 Attachment A - C20176363 - Amendment 4 Item 8: Staff Report Pg. 18 Packet Pg. 43 of 259 Vers.: Aug. 5, 2019 Page 12 of 13 EXHIBIT “C” COMPENSATION (AMENDED, REPLACES PREVIOUS) The CITY agrees to compensate the CONSULTANT for professional services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the hourly rate schedule attached as exhibit C-1 up to the not to exceed budget amount for each task set forth below. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $2,523,600 and the total compensation for Additional Services does not exceed $247,360. Task Start End Billing Type Total Budget Task 1: Project Management 6/1/2023 12/31/2025 $ 628,000 Task 2: Environmental Analysis 6/1/2023 9/30/2025 Hourly $ 130,000 6/1/2023 7/31/2023 $ 20,300 8/1/2023 9/30/2023 $ 30,300 Task 5: Permitting 6/1/2023 6/1/2024 Hourly $ 125,000 Task 6: Engineering Design Updates 6/1/2023 3/31/2025 $ 110,000 Task 7: Final As-Built Documentation 10/1/2024 3/31/2025 $ 75,000 Task 8: Equipment Specifications and Procurement 6/1/2023 9/15/2023 $ 60,000 Task 9: Testing and Certification Oversight 1/1/2024 8/1/2025 $ 150,000 Task 10: Operational Processes and Systems 6/1/2023 3/31/2025 $ 110,000 Task 11: Organizational Support 6/1/2023 10/1/2023 $ 165,000 10/1/2024 3/31/2025 $ 150,000 Task 13: Network Operations & Tech Support 10/1/2024 3/31/2025 $ 495,000 6/1/2023 3/31/2025 Per Pole $ 225,000 DocuSign Envelope ID: C1C2531D-A32E-4332-B538-286B8A51F348 Item 8 Attachment A - C20176363 - Amendment 4 Item 8: Staff Report Pg. 19 Packet Pg. 44 of 259 Vers.: Aug. 5, 2019 Page 13 of 13 EXHIBIT “C-1” SCHEDULE OF RATES (AMENDED, REPLACES PREVIOUS) Hourly Rate for Additional Services Job Categories Hourly Rate Project Executive $210.00 Sr. Consultant $210.00 OSP Design Management $210.00 Broadband Designers $210.00 GIS Technicians $210.00 Construction Management $210.00 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: Travel A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses for City of Palo Alto employees. All requests for payment of expenses shall be accompanied by appropriate backup information. All expenses shall be approved in advance by the CITY’s project manager. DocuSign Envelope ID: C1C2531D-A32E-4332-B538-286B8A51F348 Item 8 Attachment A - C20176363 - Amendment 4 Item 8: Staff Report Pg. 20 Packet Pg. 45 of 259 Certificate Of Completion Envelope Id: C1C2531DA32E4332B538286B8A51F348 Status: Completed Subject: Complete with DocuSign: C20176363 Amendment #4 final.pdf Source Envelope: Document Pages: 13 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 Annmarie Romero AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 annmarie.romero@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original 4/11/2023 10:24:44 AM Holder: Annmarie Romero annmarie.romero@cityofpaloalto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp John Honker JHonker@entrustsol.com President Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 104.129.206.204 Sent: 4/11/2023 10:27:02 AM Viewed: 4/11/2023 11:04:37 AM Signed: 4/11/2023 11:04:59 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Courtney Violette Cviolette@MagellanBroadband.com COO Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 99.69.168.210 Sent: 4/11/2023 11:05:01 AM Viewed: 4/11/2023 11:10:00 AM Signed: 4/11/2023 11:10:45 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Tabatha Boatwright Tabatha.Boatwright@CityofPaloAlto.org Utilities Administrative Assistant City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 4/11/2023 11:10:47 AM Viewed: 4/11/2023 11:44:40 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Item 8 Attachment A - C20176363 - Amendment 4 Item 8: Staff Report Pg. 21 Packet Pg. 46 of 259 Carbon Copy Events Status Timestamp Dave Yuan Dave.Yuan@CityofPaloAlto.org Utilities Strategic Business Manager Dave Yuan Security Level: Email, Account Authentication (None) Sent: 4/11/2023 11:10:47 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 4/11/2023 10:27:03 AM Certified Delivered Security Checked 4/11/2023 11:10:00 AM Signing Complete Security Checked 4/11/2023 11:10:45 AM Completed Security Checked 4/11/2023 11:10:47 AM Payment Events Status Timestamps Item 8 Attachment A - C20176363 - Amendment 4 Item 8: Staff Report Pg. 22 Packet Pg. 47 of 259 1 6 5 5 CITY COUNCIL STAFF REPORT From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: May 1, 2023 Staff Report: 2302-0909 TITLE Approval of Professional Services Contract Amendment Number 3 with Smart Energy Systems, Inc (S18165157) to add $684,023 for a New Total Not-to-Exceed Amount of $1,030,146; and to Extend the Contract Term for Three Years for the Utilities MyCPAU Customer Portal. RECOMMENDATION Staff recommends the City Council approve and authorize the City Manager or their designee, to execute Amendment No. 3 to Contract S18165157 with Smart Energy Systems, LLC (“SEW”) for the existing MyCPAU Utilities customer portal, to extend the license subscription and increase the scope of professional services, adding an additional $684,023 in compensation, over three additional years through March 2026. The new total not-to-exceed amount for the amended contract is $1,030,146 over the eight-year and six-month term. EXECUTIVE SUMMARY MyCPAU fully launched in April 2020 and is a convenient and secure way for customers to view and pay their utility bill, display monthly consumption and charges, browse energy efficiency tips, and contact Utilities customer service. MyCPAU has been well received by the Palo Alto community with 78% (24,345) of all utility accounts currently enrolled as of January 2023; 55.5% of all utility bill payments were submitted via the portal for FY 2022, and traffic to the portal averages 656 distinct user logins per day over the past three months. The City of Palo Alto entered into a three-year contract with SEW in October 2017 for a new online customer portal, “MyCPAU.” The contract was first amended in October 2019 which extended the contract to five years and two months (Council Report #10619)1.Amendment No. 2 extended the contract term from December 2022 to March 2023 to allow staff sufficient time to determine the additional scope of services required and finalize the terms. Currently, the proposed Amendment No. 3 would provide funding and additional services for anticipated portal enhancements and 1 Council Staff Report 10619 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2019/id-10619-mini-packet-10.07.2019.pdf Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 1 Packet Pg. 48 of 259 1 6 5 5 functionality, additional user access, professional support services, and extends the contract term three additional years. In addition, the amendment includes the cost of a dedicated test environment and additional vendor support in preparation for the upcoming data integration with Advanced Metering Infrastructure (AMI) vendors in order to present interval meter reading and usage information. Upon completion of Amendment No. 3, in March 2026, staff plans to re- bid these services by submitting a Request For Proposal (RFP). BACKGROUND Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 2 Packet Pg. 49 of 259 1 6 5 5 ANALYSIS •WaterSmart Portal (integration) - Provides customers with additional water analytics and benchmarking comparison reports. •Clean Power Research Calculators (integration) - Provides customers interested in learning more about solar and electric vehicles (EV) with calculator tools. •Added communication banners at the top of several pages in the portal to be used to alert customers of important information such as emergency situations (e.g., wildfires or Covid-19), outage information, fraud alerts, portal instructions, or one-time messages to reduce customer calls into the call center (e.g., call center/phones are down or invoices will be delayed one day). •Introduced a maximum monthly credit card payment amount per account o reduce credit card merchant fees. •On-Bill Financing (OBF) - A dedicated page for customers to view their energy home loan information such as balance and monthly payment was introduced in February 2023. This page can be used/viewed for customers participating in the Advanced Heat Pump Water Heater program. Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 3 Packet Pg. 50 of 259 1 6 5 5 are optional, and will be returned to utility reserves if unused. Below is a breakdown of the contract terms, costs and services: •Extends the subscription and contract with SEW for three years from 2023 to 2026 •Provide the option for customers to receive text notifications for monthly bill and late notices. Currently, only an email option is available. •Adds an additional 5,000 external users and 5 internal admin users •Removes the current 65 utilities account restriction per customer/user •Reserves funding for a separate dedicated User Acceptance Testing (UAT) environment for long term project testing (e.g., AMI) •Carries over AMI Implementation Fee for interval usage data from original contract •Carries over one additional single sign-on (SSO) integration of future service; single sign- on for EV and PV calculators and Water Smart portal are completed O A A A T T O O D A O N $$$$$ Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 4 Packet Pg. 51 of 259 1 6 5 5 •Adds a “max support” option for additional dedicated resources and services to resolve complicated issues in a timely manner especially with the upcoming AMI integration as well as the existing integration to the City’s SAP system and third-party systems (e.g., WaterSmart and CPR) •Create two instructional videos to help guide customers through the more complex processes in the portal (e.g., bill autopay and registration or AMI) •Reserves funding for future enhancements and professional services such as: •Future AMI features not currently in scope •Go Paperless program - Opt new registrations into paperless •Address the more challenging areas customers are currently experiencing since the portal’s launch (e.g., top customer issues) for example: o Add “Bill Inserts” to the left side menu in order for customers to easily locate monthly bill inserts o Add a status field to the home page (or dashboard) to inform customers if they are enrolled in a monthly autopay payment plan. o Expand the length of the password field to 30 characters and allow for additional special characters to accommodate the customers use of online password generators o Change messaging/text on several pages to clarify existing instructions •Ability to set up installment plans in MyCPAU and for these plans to automatically create in SAP •Additional SSO integrations to energy efficiency vendors or service providers. •Portal version upgrades/updates assistance •Single sign-on integration to additional energy efficiency vendors or service providers. •User interface changes to add new programs services online (e.g., On-Bill Financing) FISCAL/RESOURCE IMPACT Funding of $254,183 for the first year is available in the FY 2023 Technology Utilities Customer Bill System Improvements CIP budget (TE-10001). Funding for contract years two and three are contingent upon Council appropriation and approval of funds through the annual budget process. Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 5 Packet Pg. 52 of 259 1 6 5 5 Authorization of this contract does not represent any change to existing policy. STAKEHOLDER ENGAGEMENT The online MyCPAU customer account management system was presented to the UAC on March 6, 2019 (https://cityofpaloalto.org/civicax/filebank/documents/69599)2. CPAU received input from Utility industry consultants, E Source; survey results from 1,200 CPAU customers; and system requirements from multiple divisions in Utilities including Customer Support, Billing and Utilities Program Services. In addition, Staff provided a detailed update on the key features, improvements, and metrics with MyCPAU to the Utilities Advisory Commission in June 2021 (Staff Report #12179)3. . ENVIRONMENTAL REVIEW Council’s approval of this term agreement for subscription licensing and professional services is not a project under the California Environmental Quality Act (CEQA) Guidelines section 15378(b)(5) as an organizational or administrative activity of government that will not result in direct or indirect physical changes in the environment, thus no environmental review is required. ATTACHMENTS Attachment A: S18165157 Amendment 3 APPROVED BY: 2 Utilities Advisory Commission March 6, 2019 Presentation https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-advisory- commission/archived-agenda-and-minutes/agendas-and-minutes-2019/03-06-19-meeting/item-2_new-online- customer-portal.pdf 3 Utilities Advisory Commission June 2, 2021 Staff Report 12179 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-advisory- commission/archived-agenda-and-minutes/agendas-and-minutes-2021/06-02-2021-special/id-12179-item-3.pdf D Y Y Y T S 6$6$6$1$ U 8$8$8$2$ T 1$1$1$3$ Q 3$1$3$2$ E 5$5$5$1$ P 3$3$3$1$ M 3$3$3$1$ I 1$1$ A 4$4$ S 2$2$ T 2$2$2$6$ Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 6 Packet Pg. 53 of 259 1 6 5 5 Dean Batchelor, Director Utilities Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 7 Packet Pg. 54 of 259 Vers.: Aug. 5, 2019 Page 1 of 31 AMENDMENT NO. 3 TO CONTRACT NO. S18165157 BETWEEN THE CITY OF PALO ALTO AND SMART ENERGY SYSTEMS, INC This Amendment No. 3 (this “Amendment”) to Contract No. S18165157 (the “Contract” as defined below) is entered into as of April 1, 2023, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and SMART ENERGY SYSTEMS, INC., dba SMART ENERGY WATER, a Delaware corporation (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract (as defined below) was entered into by and between the Parties hereto for the provision and deployment of a comprehensive customer engagement portal (the SEW Portal) and mobile solutions services for City’s residential, commercial, industrial, and institutional customers utilizing natural gas, electricity, water, sewer, fiber, refuse, and storm drainage services, as detailed therein. B. The Parties now wish to amend the Contract to extend the term to March 31, 2026, and increase total compensation to Contractor by Six Hundred Eighty-Four Thousand Twenty-Three Dollars ($684,023) over a three-year Extension Term to a new total not-to-exceed amount of One Million Thirty Thousand One Hundred Forty-Six Dollars ($1,030,146.) over the Term of the Agreement, 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. S18165157 between CONSULTANT and CITY, dated October 17, 2017, as amended by: Amendment No. 1, dated October 7, 2019 Amendment No. 2, dated October 11, 2022 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2 “TERM” of the Contract is hereby amended to read as follows: “SECTION 2. TERM.” DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 8 Packet Pg. 55 of 259 Vers.: Aug. 5, 2019 Page 2 of 31 The term of this Agreement shall be from the date of its full execution through March 31, 2026, unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. “Extension Term” refers to the period commencing April 1, 2023, through March 31, 2026.” SECTION 3. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to add the following: “SECTION 4. NOT TO EXCEED COMPENSATION” During the Extension Term, the compensation to be paid to CONSULTANT for performance of the Supplemental Services shown in Exhibit A-1 as specific to this Third Amendment 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 Six Hundred Eighty-Four Thousand Twenty-Three Dollars ($684,023). The hourly schedule of rates, if applicable, is set out in Exhibit C-2, 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. The total maximum compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” and Exhibit “A-1”, shall not exceed One Million Thirty Thousand One Hundred Forty-Six Dollars ($1,030,146) over the Term. SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “A-1” entitled “SUPPLEMENTAL SCOPE OF SERVICES”, AMENDED, REPLACES PREVIOUS. b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REFLECTS EXTENSION TERM ONLY. c. Exhibit “C-1” entitled “SCHEDULE OF RATES,” AMENDED, REPLACED PREVIOUS d. Exhibit “C-2” entitled “COMPENSATION, AMENDMENT 3”, ADDED. e. Amendment 3 Appendices, ADDED, entitled: i) “Appendix 1 - Text Messaging Service” ii) “Appendix 1-A – SEW Notification Services Agreement” iii) “Appendix 1-B –Data Retention Policy” DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 9 Packet Pg. 56 of 259 Vers.: Aug. 5, 2019 Page 3 of 31 iv) “Appendix 2- SCM Non-Production Cloud Tenant” v) “Appendix 3 – Max Support Plan” vi) “Appendix 3 -A – Service Request Form”. 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: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 10 Packet Pg. 57 of 259 Vers.: Aug. 5, 2019 Page 4 of 31 SIGNATURES OF THE PARTIES IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this Amendment effective as of the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: ____________________________ City Attorney or designee SMART ENERGY SYSTEMS, INC., dba SMART ENERGY WATER By:______________________________ Name: Harman Sandhu Title: President By:______________________________ Name: Sangeeta Kumar Title: VP Finance Attachments: EXHIBIT “A-1” – SUPPLEMENTAL SCOPE OF SERVICES, AMENDED, REPLACES PREVIOUS EXHIBIT “B” – SCHEDULE OF PERFORMANCE, AMENDED, REFLECTS EXTENSION TERM ONLY EXHIBIT “C-1” – SCHEDULE OF RATES, AMENDED, REPLACES PREVIOUS EXHIBIT “C-2” – COMPENSATION, AMENDMENT 3”, ADDED AMENDMENT 3 APPENDICES, ADDED, ENTITLED: “Appendix 1 - Text Messaging Service” “Appendix 1-A – SEW Notification Services Agreement” “Appendix 1-B –Data Retention Policy” “Appendix 2- SCM Non-Production Cloud Tenant” “Appendix 3 – Max Support Plan” “Appendix 3 -A – Service Request Form”. DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 11 Packet Pg. 58 of 259 Vers.: Aug. 5, 2019 Page 5 of 31 EXHIBIT “A-1” SUPPLEMENTAL SCOPE OF SERVICES (AMENDED, REPLACES PREVIOUS) Tasks Pursuant to Amendment 1: 1. Single Sign On Integration a. CONSULTANT will setup SCM (Smart Customer Mobile) as an Identity Provider for a SAML-based Single Sign On (SSO) integration with CITY 3rd Party Applications, to be identified by CITY. Specifically, CONSULTANT will i. Provide CITY with a SAML metadata file for SCM as an Identity Provider ii. Provide CITY with a secure SSO endpoint for the 3rd party vendors to consume iii. Provide technical support during the SSO setup process iv. Verify that the SSO link can be accessed from SCM v. SSO will use standard SAML tokenization and bindings as provided in the metadata definition vi. Verify that the SSO link from the 3rd party back to SCM results in appropriate behavior on SCM (i.e. mapped to correct account, log out completely if requested, etc.) b. 3rd Party Applications will satisfy the following requirements: i. Must support SAML 2.0 ii. Must consume SCM authentication request service for Single Sign-On (SSO) iii. Must be able to consume the logout service iv. CONSULTANT will not validate user licensing details for 3-party applications/portals. c. CONSULTANT will develop custom user experience to enable users to access the 3rd party vendor’s services. The user experience elements include, but are not limited to the following: i. Dashboard tiles that are displayed to eligible customers. The tiles will have a static image and will link to the 3rd party vendor service. The tiles will match the look and feel of CITY’s current version of SCM. ii. Navigation “tabs” that are displayed to eligible customers. The tabs will have a label and will link to the 3rd party vendor services. The tabs will match the look a feel of CITY’s current version of SCM. iii. CITY shall provide to CONSULTANT a list of the eligibility designations for each of the 3rd party vendors. DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 12 Packet Pg. 59 of 259 Vers.: Aug. 5, 2019 Page 6 of 31 d. CONSULTANT will facilitate communication preference coordination between SCM and 3rd party vendors. i. CONSULTANT will develop custom notification types in the existing preference center based on the 3rd party vendor customer communication options. ii. CONSULTANT will setup transfers of notification preference updates to CITY and 3rd party vendors. e. CITY Responsibilities i. CITY will be responsible for coordinating the access to any Client owned and 3rd party systems required for integration. ii. CITY agrees to provide integration access with any CITY and 3rd party vendor systems prior to the completion of Planning and Design. iii. CITY will participate in a detailed planning and design process with CONSULTANT to define user experience, data elements and service aspects. 2. Implement AMI Interval Data requirements These requirements pertaining to Smart Grid AMI listed in Exhibit G of the original contract will be implemented: Req ID Requirement - Description Classification Customer Services FF25 Ability to integrate weather data for conservation analysis Desired FF26 Ability to combine weather, landscape area, rainfall and consumption data to determine when an account may be overwatering Desired FF28 Ability to have a "live chat" feature when customer have questions/issues while using the customer portal Desired DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 13 Packet Pg. 60 of 259 Vers.: Aug. 5, 2019 Page 7 of 31 FF74 Smart Grid – calculate and display calculated usage using meter multiplier, therm factor multiplier, and other calculations Desired FF75 Smart Grid – calculate and display calculated usage with hourly data with daily allowance pricing considerations Desired FF77 Smart Grid – monthly usage/cost charts and data downloads Desired FF78 Smart G r i d - availability and presentation of detailed utilities data (e.g. hourly meter reads) Mandatory FF79 Smart Grid - daily usage/cost charts and data downloads Desired FF84 Smart Grid – demand response notification and calculation capabilities Desired FF85 time-of-use, demand response and energy generation Desired FF86 Smart Grid - secure real-time access to smart meter data Mandatory IN02 The portal must be able to integrate with any CIS or Utility Billing system Mandatory IN07 Smart Grid - Meter Data Management Database and Portal Mandatory Tasks Pursuant to Amendment 3: 1. Annual Subscription for Extension Term. The Parties hereby agree that the annual subscription fees for its current subscriptions during the period commencing April 1, 2023, through March 31, 2026 (the “Extension Term”) will be the rates shown in Exhibit C-1. 2. Removal of Utility Account limitation Per User in Smart Customer Mobile (SCM). a. Removes the current 65 utilities account restriction per user/Business partner. 3. Increase Number of SCM Users. The Parties hereby agree to increase the authorized number of SCM users by 5,000 from 25,000 to 30,000 during the Extension Term. DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 14 Packet Pg. 61 of 259 Vers.: Aug. 5, 2019 Page 8 of 31 4. Increase Number of Customer Service Portal (CSP) Admin Accounts. The Parties hereby agree to increase the number of CSP Admin Accounts by 5 from 30 to 35 during the Extension Term. 5. Text Short Message Service (SMS) Notification Services - Refer to Amendment 3 Appendix “1” – Text Messaging Service a. Implement and provide the option for customers to receive text notifications for SCM billing module related notifications (e.g., new monthly invoice and late notices). 6. Additional Cloud Tenant - Refer to Amendment 3 Appendix “2”- SCM Non-Production Cloud Tenant a. Implement and provide a stand-alone and dedicated User Acceptance Testing (UAT) environment dedicated to long term project testing (e.g., AMI) as required. 7. Max Support Plan - Refer to Amendment 3 Appendix “3” – Max Support Plan a. Adds a “max support” option for additional dedicated SEW resources and services to resolve complicated SCM and integration issues in a timely manner 8. Instructional Video - Create two instructional videos to help guide customers through the more complex processes in the portal (e.g., bill autopay and registration or AMI) 9. Additional Enhancements: In anticipation of enhancements required post go-live, Consultant shall provide up to $150,000 worth of software enhancements to the City upon the City’s request and approval in writing using the change request process. These enhancements may include, but are not limited to, the following: a. Add/change/enhance software modules b. Add/change/enhance features c. Add/change/enhance reporting d. Add/change/enhance API integrations or other integration between SCM® and the various City business systems and hosted environments e. Add/change/enhance the City’s SAP environments 10. Additional Professional Services: In anticipation of consultant services required post go-live, Consultant will perform up to $105,000 worth of consulting and support services beyond what is already required in this Agreement. Such services will be upon the City’s request and approval in writing using the change request process. These services may include, but are not limited to, the following: a. Assistance with software updates and/or upgrades b. Functional and technical assistance c. Functional and technical training d. Project management e. Software configuration and development DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 15 Packet Pg. 62 of 259 Vers.: Aug. 5, 2019 Page 9 of 31 EXHIBIT “B” SCHEDULE OF PERFORMANCE, (AMENDED, REFLECTS EXTENSION TERM ONLY) CONSULTANT shall perform the Services to complete each milestone within the number of days/weeks specified below for each task in scope. 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. The total duration of system set up, deployment and stabilization will be completed within 180 days from the date of the notice to proceed (NTP). This Scope of Work for the Project will be broken into six milestones. Unless otherwise agreed to upon the parties in writing, each milestone must be completed before any work is conducted on the next milestone. Tasks Pursuant to Amendment 1 Task Phas SES Deliverables City Deliverables Completion Date 3rd Party SSO Integration • Functioning Dashboard tiles and links to each SSO integration • Availability of 3rd Party and City project managers • Timely UAT and approval Days from 3 AMI Interval Data (previously Year 5) requirements) • Availability of 3rd Party and City project managers • Days from 3 Tasks Pursuant to Amendment 3 Task Phas SES Deliverables City Deliverables Completion Date Annual SCM Subscription services extended • Amendment No. 3 approval DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 16 Packet Pg. 63 of 259 Vers.: Aug. 5, 2019 Page 10 of 31 Removal of Utility Account limitation Per User in SCM • For those users with more than 65 accounts, all accounts visible in the dashboard dropdown and online services are functioning. • Availability of 3rd Party and City project managers • Timely UAT and approval Days from Increase Number of SCM Users Portal allows up to 30,000 SCM users • Amendment No. 3 approval Increase Number of CSP Admin User Accounts Portal allows up to 30 CSP admin users • Amendment No. 3 approval 5 Text Short Message Service Services • Functioning notification feature sending text notifications for the • Availability of 3rd Party and City project managers • Timely UAT and approval Days from 6 Additional Cloud Tenant • Functioning and separate User Acceptance Testing (UAT) environment • Availability of 3rd Party and City project managers • Timely UAT and approval Days from 7 Max Support Plan Dedicated resources are available to resolve issues per Appendix 2 terms and conditions. • Amendment No. 3 approval 8 Two (2) Instruction Videos Functioning videos available within the portal • Availability of 3rd Party and City project managers • Timely UAT and approval Days from 9 Additional Enhancements Future enhancements functioning as per the specifications in the approved Change Request (CR) document • Availability of 3rd Party and City project managers • Timely UAT and approval DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 17 Packet Pg. 64 of 259 Vers.: Aug. 5, 2019 Page 11 of 31 • Availability of 3rd Party and City project managers • Timely UAT and approval City, in its sole discretion, may agree to an extension of time for completion of tasks provided such extension is reflected in writing, in advance, below within 10 days of the date of the notice to proceed (NTP). SES shall have the ability to change dates if such change is reasonable and in the interest of the Project. DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 18 Packet Pg. 65 of 259 Vers.: Aug. 5, 2019 Page 12 of 31 EXHIBIT “C-1” SCHEDULE OF RATES (AMENDED, REPLACES PREVIOUS) The table set forth below includes certain hourly rates which may be utilized by SEW in the event it agrees to perform unanticipated work for client in connection with this agreement. Original Agreement: 1. Original Agreement, Amendment 1-2 Tasks: Labor Category Hourly Rate 2. Amendment 3 Tasks: The rates below apply for calendar year 2023 only and shall be subject to change annually thereafter, upon minimum 60 days’ written notice to the City, provided however, that the increase in rates shall not exceed the higher of: (i) the percentage change in the CPI Index, West region as published by the U.S. Bureau of Labor for the trailing 12 (twelve) months or (ii) 3 (three) percent. Category Hourly Rate DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 19 Packet Pg. 66 of 259 Vers.: Aug. 5, 2019 Page 13 of 31 EXHIBIT “C-2” COMPENSATION, AMENDMENT 3 (ADDED) City agrees to compensate Consultant for professional services performed as designated under the Supplemental Scope of Work – Amendment 3 Tasks, and for the software subscription as set forth in the budget schedule below for the Extension Term. 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. Compensation during the Extension Term shall not exceed a maximum total amount of $684,023.00 dollars, which includes AMI software implementation fees and, an annual subscription fee for year six (6) (April 2023-March 2024), seven (7) (April 2024-March 2025), and eight (8) (April 2025-Mar 2026), text notification, elevated maximum support plan and any Additional Services as authorized by City in accordance with this Agreement: Summary Table for Years 6, 7, and 8 I. Pricing breakdown for Years 6, 7, and 8 April 1, 2023, through March 31, 2026 (the Amendment No. 3 - “Extension Term”) Description 1. Single Sign On 3rd Party Integration (3 SSO at $26,000 each) 26,000 25% to be paid upon SEW UAT in QAS 50% to be paid upon City UAT sign off in QAS 25% to paid upon deployment in production 2. 5) requirements) 25% to be paid upon SEW UAT in QAS 50% to be paid upon City UAT sign off in QAS 25% to paid upon deployment in production DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 20 Packet Pg. 67 of 259 Vers.: Aug. 5, 2019 Page 14 of 31 3. Year 6 (25,000 users and 25 admin users) SCM® Annual User Connections for Year 7 (25,000 users and 25 admin users) SCM® Annual User Connections for Year 8 71,605 71,605 71,605 100% to be paid on Effective Date 100% to be paid on anniversary of Effective Date 100% to be paid on anniversary of Effective Date 4. Notification Services Year 6 Year 7 Year 8 Fixed Fees 100% to be paid upon effective date to be paid one year after effective date to be paid two years after Volume-Based Fees $0.04 for each message in excess of 50,000 SMS messages in any year 5. Additional Cloud Tenant $22,356 $1,242 monthly upon implementation of service required monthly 6. Year 6 Year 7 Year 8 to be paid upon implementation of service to be paid one year after implementation of to be paid two years after implementation of 7. to be paid upon SEW UAT in QAS 50% to paid upon City UAT sign off in QAS 8. 9. 10. Admin User. of DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 21 Packet Pg. 68 of 259 Vers.: Aug. 5, 2019 Page 15 of 31 -ongoing subscription term, the n. Additional DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 22 Packet Pg. 69 of 259 Vers.: Aug. 5, 2019 Page 16 of 31 Amendment 3 Appendix “1” – Text Messaging Service Supplement to SEW Subscription Order Form 15495 Sand Canyon Avenue, STE 100 Irvine, CA 92618 (“SEW”) And City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 (“Customer”) 1. Order Form This Supplement, as issued by SEW, shall constitute an amendment to the existing City of Palo Alto Contract S18165157 dated October 17, 2017, between SEW and Customer (the “Agreement”) and is governed by and incorporates the terms and conditions attached hereto as Appendix A and B. 2. Notification Subscriptions The table below shows the SEW Notification Services to be added or updated to the Agreement. The fixed annual fees for the services below are invoiced annually upfront. The volume-based fees, if any, shall be invoiced and payable monthly. MESSAGING SERVICE Service Type Price (USD) Description X Outbound SMS Text Bill Notification Note: SMS Text message speed shall be up to 5 messages/second. Higher speeds require additional fees. 3. Term and Invoicing The term of this Supplement commences on April 1,2023, and ends March 31, 2026. Total Fixed Fees for this Supplement Payment Conditions for Term $30,000 ($10,000 annually) • $10,000 upon signature • $10,000 upon 1st anniversary of Effective Date • $10,000 upon 2nd anniversary of Effective Date 4. Acceptance and Authorization Customer Smart Energy Water Signature: Signature: Name: Name: Harman Sandhu Title: Title: President Effective Date: Date: DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 23 Packet Pg. 70 of 259 Vers.: Aug. 5, 2019 Page 17 of 31 Amendment 3 Appendix 1-A SEW Notification Services Agreement Smart Energy Systems, Inc. dba Smart Energy Water (“Provider” or “SEW”) has developed certain proprietary software applications and services for a Customer, and the Parties have agreed that Provider will make the Services described in the Order Form available to the Customer hereunder. Therefore, in consideration of the mutual covenants, terms, and conditions set forth below and in any relevant exhibits or documents, the adequacy of which is hereby acknowledged, the Parties agree as follows 1. Definitions 1.1. “Monthly Uptime Percentage” shall refer to the difference between 100% and the percentage of time during which the Services are unavailable. 1.2. “Services” shall refer to notification services for the SCM® Cloud Services platform utilized to establish form(s) of contact between the Customer and end user of the SEW Cloud Services Platform, which include, but are not limited to, SMS text messaging, email, and interactive voice response (IVR) services. 1.3. “SEW Cloud Services Platform” shall refer to Customer’s deployment of the SCM® platform, or other applicable software of SEW sold through an authorized reseller. 1.4. “Term” shall mean the Term set forth in the applicable license agreement, SaaS subscription agreement, cloud services agreement, or if not defined in an applicable signed writing, one (1) year from the Effective Date. 2. Scope and General Terms 2.1. SEW shall provide the following Services selected within the Order Form in accordance with the following terms and conditions. 2.2. Customer may use the Services solely to: a) Use and make the Services available to end users in connection with the use of SEW Cloud Services Platform. b) Use the Services in connection with and as necessary for Customer’s activities pursuant to these terms or the terms set forth in an applicable license agreement, SaaS subscription agreement, or cloud services agreement. c) Allow any affiliates to use the Services, subject to the terms hereunder. 2.3. In relation to the Services provided under this Agreement, Customer agrees that: a) Customer shall not transfer, resell, lease, license, or otherwise make available the Services or SEW Cloud Services Platform to third parties or offer it on a standalone basis, or make any representation, warranty, or guarantee to any end user or third party on behalf of SEW concerning the Services. b) SEW shall be entitled to use any Customer data that is necessary to provide the Services. c) Customer’s use of the Services does not violate the terms of this Agreement. d) Customer shall not use the Services or SEW Cloud Services Platform to create, train, or improve (director or indirectly) a substantially similar product or service. e) Customer shall not reverse engineer, decompile, disassemble, or otherwise create, attempt to create or derive, or permit or assist anyone else to create or derive the source code of any Services or SEW Cloud Services Platform provided in connection with this Agreement. 2.4. SEW shall make the Services available and guarantee a Monthly Uptime Percentage of 99.5%, notwithstanding any unavailability or performance issues of the Services caused by or as a result of the following (collectively, the “Exclusions”): a) Factors that are outside of SEW’s reasonable control, including, without limitation, any force majeure event, telecommunications provider-related problems or issues, internet access or related problems occurring beyond the point in the network where SEW maintains access and control of the Services. b) Any actions or inactions of Customer or any third party. c) Any Customer application(s), equipment, software, or other technology, third party equipment, software, etc. not authorized for use with the Services. d) Routine or scheduled maintenance for which SEW will provide at least twenty-four (24) hours of advanced notice. e) Problems or issues related to alpha, beta, or not otherwise generally available in SEW features or products. 2.5. Notification Services shall commence at the rates and volumes selected by Customer in the Order Form. a) In the event that Customer exceeds the number of emails per month selected, SEW shall automatically escalate Customer to the next service tier and corresponding rates. Customer shall thereafter be invoiced according to the rates set forth for the escalated tier for the remaining Term for such Order Form. b) At any time during the Term of the Order Form, Customer can contact SEW to request to be change their service to a lower tier. Such changes to revert to a lower tier and corresponding rates can be made only once during a twelve month period. Customer shall not be entitled to any credits for unused volumes when reverting to a lower service tier after having been escalated to a higher tier as a result of having exceeded notification volume limits. c) In the event Customer requires a higher notification Volume SLA tier in order to meet increased demand or to ensure timely delivery of the Services for Customer’s end users, Customer shall contact SEW detailing the Email Volume SLA or SMS Volume SLA tier customer wishes to upgrade to. 3. Term 3.1. The Initial Term of this Agreement shall begin on the Effective Date and continue for the Term as stated in the applicable Order Form. 4. Renewals 4.1. This Agreement shall automatically renew upon the expiration of the Initial Term as stated in the Order Form for one (1) year intervals (“Renewal Term”), unless terminated by Customer by providing written notice to SEW ninety (90) days prior to the expiration of the Term. For the avoidance of doubt, SEW shall not be required to refund any previously paid fees, regardless of when termination occurs during the Term or Renewal Term. 5. Fees 5.1. Fees for the Services shall be set forth in the Order Form. Customer shall be invoiced for applicable one-time initial setup fees, maintenance and support fees, and monthly service type fees upfront upon signing of this Agreement and annually thereafter if applicable. The usage fees applicable to inbound and outbound SMS messaging or voice call messages that are selected by the Customer shall be invoiced based on monthly intervals. Customer agrees to make all payments to SEW within thirty (30) calendar days after receipt of invoice. Late invoices will incur a late payment fee of 1.5% or the maximum allowable under the law, whichever is less. If Customer’s account is sixty (60) days or DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 24 Packet Pg. 71 of 259 Vers.: Aug. 5, 2019 Page 18 of 31 more overdue, SEW reserves the right with prior written notice to withhold performance of its obligations under this Agreement, without liability, until such payments are paid in full, or to terminate for cause. Fees under this Agreement shall additionally be exclusive of all taxes, levies, or duties imposed by taxing authorities, and Customer shall be responsible for all applicable taxes, levies, or duties hereunder. 6. Warranty and Liability 6.1. DISCLAIMER OF WARRANTY. WITH THE EXCEPTION OF THE SERVICE LEVEL COMMITMENT SET FORTH IN SECTION 2.4, THE SERVICES UNDER THIS AGREEMENT ARE PROVIDED “AS-IS,” EXCLUSIVE OF ANY WARRANTY, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY, SATISFACTORY QUALITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT, OR ANY OTHER WARRANTY, WHETHER EXPRESS OR IMPLIED. SEW DOES NOT WARRANT THAT THE SERVICES ARE OR WILL BE ERROR-FREE OR MEET ALL CUSTOMER REQUIREMENTS. WITHOUT LIMITING THE FOREGOING, SERVICES MAY BE SUBJECT TO LIMITATIONS OF THE TELECOMMUNICATIONS PROVIDER, HOSTING ENVIRONMENT, DELAYS, INTERNET SERVICE PROVIDER, THIRD PARTIES, ACTIONS OR INACTIONS OF THE CUSTOMER, AND OTHER PROBLEMS INHERENT TO THE USE OF MASS-MARKET NOTIFICATION SERVICES AND ELECTRONIC COMMUNICATIONS. SEW IS NOT RESPONSIBLE FOR ANY DELAYS, DELIVERY FAILURES, DELETIONS, LOSS OF DATA, DATA CORRUPTION, THIRD-PARTY PUBLICATION, OR OTHER DAMAGES RESULTING FROM SUCH PROBLEMS NOT CAUSED BY SEW OR OUTSIDE OF SEW’S REASONABLE CONTROL. TO THE EXTENT SUCH DISCLAIMER CONFLICTS WITH APPLICABLE LAW, THE SCOPE AND DURATION OF ANY APPLICABLE WARRANTY WILL BE THE MINIMUM PERMITTED UNDER SUCH LAW. SEW SHALL NOT BE LIABILE AND WILL HAVE NO OBLIGATION TO INDEMNIFY CUSTOMER FOR END USER DATA OR ANY OTHER PERSONALLY IDENTIFIABLE INFORMATION SENT TO SEW. 6.2. LIMITATION OF LIABILITY. IN NO EVENT WILL SEW’S AND ITS LICENSORS’ TOTAL AGGREGATE LIABILITY ARISING FROM OR RELATING TO THIS AGREEMENT EXCEED THE AMOUNT PAID FOR THE NOTIFICATION SERVICES UNDER THIS AGREEMENT DURING THE TWELVE (12) MONTHS IMMEDIATELY BEFORE SUCH CLAIM AROSE. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, AND REGARDLESS OF WHETHER ANY REMEDY SET FORTH HEREIN FAILS OF ITS ESSENTIAL PURPOSE, IN NO EVENT WILL SEW OR ITS LICENSORS BE LIABLE TO YOU OR ANY THIRD PARTY FOR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL OR SIMILAR DAMAGES, INCLUDING WITHOUT LIMITATION, ANY LOST PROFITS, OPPORTUNITIES, DATA, OR USE, ARISING OUT OF THE USE OR INABILITY TO USE THE SERVICES, EVEN IF SEW HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR A REMEDY FAILS OF ITS ESSENTIAL PURPOSE. 6.3. Recordings and Communications Monitoring. In the event Customer records or monitors any SMS messages, IVR communications, or other communications using the Services, then Customer represents and warrants that it shall comply with all applicable laws prior to doing so at all times. SEW makes no representations or warranties with respect to recording or monitoring telephone calls/IVR communications, SMS messages, or other communications, and recommends that Customer always secure prior consent to record or monitor communications using the Services. Customer acknowledges that these representations, warranties, and obligations are essential to SEW’s ability to provide the Services, and further agrees to indemnify SEW and its affiliates or providers in the event of any acts or omissions in connection with recording or monitoring IVR communications, SMS messages, or other communications, whether such claims arise under contract, tort, statute, or other legal theory. 7. Additional Terms 7.1. Short Codes. If Customer utilizes a short code with SEW as a part of the Services, Customer: a) Shall not change the short code use case without first having such new use case approved by SEW or the applicable provider. b) Shall stop sending additional messages to any party that replies by texting “STOP” (or the equivalent) to the short code, except for a single text message confirming that such party has been successfully opted out of the short code. c) Shall follow all applicable rules, regulations, laws, statutes, or guidelines set by state, local, or federal legal authorities, or as imposed by SEW or its affiliates, providers, etc. pertaining to the use of short codes or voice recordings. 7.2. Compliance with Laws. Both Customer and SEW agree to comply with the applicable laws relating to each Party’s respective activities pursuant to this Agreement. 7.3. No Waiver. Our failure to enforce at any time, any provision of this Agreement, or any other applicable policy or signed writing in connection hereto shall not waive our right to do so later. Any waiver must be in writing and signed by both Parties to be legally binding. 7.4. Independent Contractors. The Parties are independent contractors and will so represent themselves in all regards. Neither Party is the agent of the other, and neither may make commitments on the other’s behalf. 7.5. Force Majeure. No delay, failure, or default, other than a failure to pay fees, will constitute a breach of this Agreement to the extent that such delay, failure, or default, or any other breach is caused by acts of war, terrorism, earthquakes, other acts of God or of nature, strikes or labor disputes, embargoes, or other causes beyond the performing Party’s reasonable control. 7.6. Assignment & Successors. Customer may not assign this Agreement or any of its rights or obligations hereunder without Provider’s prior written consent. Except to the extent forbidden herein, this Agreement will be binding upon and inure to the benefit of the Parties’ respective successors and assigns. Any attempt to assign, transfer, or delegate the terms under this Agreement shall be null and void. 7.7. Notices. Any notice required or permitted to be given under this Agreement will be given in writing to the receiving Party by personal delivery, certified mail, return receipt requested, overnight delivery recognized by a nationally recognized carrier, or by email upon confirmation of receipt. Notices to SEW shall be copied to contracts@sew.ai. 7.8. Modification. Modifications to the Services and associated fees thereof may be made from time to time, and any modifications made to the Services, or associated fees, shall be noticed to the Customer thirty (30) days prior to such modifications taking effect. 7.9. Severability. To the extent permitted by law, the Parties waive any provision of law that would render any clause of this Agreement invalid or unenforceable. In the event that a provision herein is held to be invalid or unenforceable, such provision will be interpreted to fulfill its intended purpose to the maximum extent permitted by law, and the remaining provisions of this Agreement will continue in full force and effect. 7.10. Choice of Law & Jurisdiction: This Agreement will be governed by the laws of the State of California, without reference to any conflicts of law principles. The Parties consent to the personal and exclusive jurisdiction of the federal and state courts of Orange County, California. 7.11. Conflicts. Should this Agreement conflict with any other agreements, this Agreement will govern. 7.12. Construction. The Parties agree that the terms of this Agreement result from negotiations between them. This Agreement will not be construed in favor of or against either party by reason of authorship. 7.13. Entire Agreement. This Agreement sets forth the entire agreement of the Parties and supersedes all prior or contemporaneous writings, negotiations, and discussions with respect to its subject matter, with the exception of an applicable license agreement, SaaS subscription agreement, or statement of work. Neither Party has relied upon any such prior or contemporaneous communications except those expressly referenced and named herein. 7.14. Execution in Counterparts. This Agreement may be executed in one or more counterparts. Each counterpart will be an original, but all such counterparts will constitute a single instrument. 7.15. Amendment. This Agreement may only be amended in writing by authorized representatives of each Party. DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 25 Packet Pg. 72 of 259 Vers.: Aug. 5, 2019 Page 19 of 31 Appendix 1-B Data Retention Policy 1) Data Retention Policy a) Introduction i) It shall be the policy of Smart Energy Water to maintain complete and accurate records for the usage, billing, behavior, or any of the specified types of data (“Data”) of Client and its Users, for the duration described for historical reference, contractual or legal requirements, or for any other purposes as set forth in this Data Retention Policy (“Policy”). The types of Data stored and subsequent durations for each type, described in the Retention Summary set forth in Section 1(h) below, shall be the recommended and standard retention periods based on legal requirements and practical considerations. In the event that Client wishes to have such Data retained for an extended period, such additional retention periods shall be agreed upon in a separate writing. ii) Data Retention shall include, but is not limited to, paper and electronic records, documentary materials, Customer Data, personally identifiable information, billing records, usage information, etc. Such information shall be managed and maintained in a manner that protects the integrity of the Data, while ensuring appropriate access for the durations described above. iii) Upon expiration of the above retention periods, such data shall be destroyed, deleted, returned or otherwise disposed of according to standard industry guidelines and in compliance with legal requirements, EXCEPT for those records pertaining to (1) matters under investigation or those matters that are the subject of any claim or litigation, and (2) matters that are anticipated to be the subject of reasonably foreseeable investigation, claim, or litigation. b) Definitions i) “Audit Logs” shall refer to recordings of key system events, timestamps, and other records that otherwise maintain evidence of any processes or activities. ii) “Billing Data” shall refer to any information regarding the billing information of customers, which may include, but is not limited to, credit card information, security codes, expiration dates, billing addresses, names of customers, etc. iii) “Billing Summaries” shall refer to any information regarding the costs or charges relating to a customer’s usage of utilities maintained over monthly billing periods. iv) “Customer Data” shall refer to any personally identifiable information of a Client’s users, which may include, but is not limited to, name, address, personal Usage information, etc. v) “Investigation” shall refer to any business or legal process which requires the retention, examination, or review of any Data. vi) “Notifications” shall refer to logs of the information events (email, IVR, SMS text messaging) sent by a utility and received by a customer. vii) “Outages” shall refer to logs of outage events reported via OMS to the Services, by either the customer, if approved, or the Client. viii) “Retention” shall refer to storage of Data on either local, cloud-based, or archive storage or servers. ix) “Usage” shall refer to any customer’s use of a utility as tracked and maintained by the Services. x) “User Behavior” shall refer to the interaction of Client’s customers on the portal or mobile application, which may include, but is not limited to, log-on periods, active periods, interactions with particular modules, clicks, etc. c) General i) SEW shall be bound in its obligations regarding the Data it processes and controls. These obligations shall include how long SEW retains Data, and when and how SEW can destroy such Data. These obligations may arise from industry standards, local laws or regulations, or arising out of agreements between the Parties. ii) SEW shall ensure that necessary records, documents, or Data are adequately protected and maintained, and additionally, that such records, documents, or Data are properly disposed of. iii) SEW shall not use Client or Customer Data except as necessary to provide the Services, or as necessary to comply with the law or binding order of a governmental body. d) Cloud-Based Storage i) In maintaining the Data, SEW shall utilize its cloud-based scalable storage solutions which shall allow Client to store and display historical usage data, billing information, payment history, etc. SEW shall utilize industry standard methodologies, which shall ensure business continuity, continuous retention for the periods described, data recovery, and availability for its Users. e) Archiving and Backups i) SEW shall utilize similar industry standard solutions for archiving, restoring, and backing up Data. Incremental Data (daily usage, user behavior, notifications, outages) shall be recorded nightly, and full Data backups shall be executed over the weekend. Data shall be retained in both Cloud-based local storage form, as well as Array-based replication form offsite to be utilized as back-ups or archives in the event of system failure of the local Cloud-based storage. ii) SEW shall be notified via email confirmation of backups of Data being saved successfully or such backups failing to be saved. Backups shall be tested periodically by restoring such Data to a staging database to ensure that Data is not corrupted and are in proper usage compliance in its application configuration. f) Destruction and Purging of Data i) Data that is personal or confidential in nature shall be disposed of according methodologies agreed upon by and between the parties in a signed writing. ii) Electronic Data shall be subject to secure electronic deletion. iii) Physical or paper documents shall be shredded using secure consoles through which waste shall be properly screened for disposal. iv) Specific deletion or destruction processes shall be carried out by an employee of SEW or by an internal or external service provider employed for the purposes of such proper and compliant disposal of Data. v) Data of Users or Clients who have been inactive for a period of twenty-four (24) months shall be deleted. Clients, if such Client or User account(s) are inactive for a period of eighteen (18) months, shall be notified of such inactivity via email. g) Litigation or Investigation i) In the event that SEW becomes involved in any unforeseen litigation or business event that requires access to Client and Customer Data, such Data may need to be archived beyond its active use or as required by law. ii) Documents shall be retained in the event that they are subject to matters under investigation or those that are subject to any claim or litigation, or those matters that are anticipated to be the subject of reasonably foreseeable investigation, claim, or litigation. iii) Prior to the disclosure of any Client and Customer Data, SEW shall first disclose to Client of such requirement, so that Client may inform its users and allow users the opportunity to seek protection from such disclosure. h) Retention Summary i) SEW, for the purposes of historical reference, contractual or legal requirements, or other requirements as a part of its delivery and maintenance of Services or Software to Client, shall retain the following types of Data for the durations set forth, and pursuant to the terms set forth in this Data Retention Policy. DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 26 Packet Pg. 73 of 259 Vers.: Aug. 5, 2019 Page 20 of 31 Data Type Description Duration Monthly Read 24 months Daily Read 12 months Hourly Read 6 months 15-minute Read 3 months Overview of Past Bills 24 months User Interactions with Portal 12 months Text Message, IVR, Email Logs 6 months Timestamps, Recordings of Key Events 6 months * Add-on Feature 12 months History of Reported Outages 12 months DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 27 Packet Pg. 74 of 259 Vers.: Aug. 5, 2019 Page 21 of 31 Amendment 3 Appendix “2”- SCM Non-Production Cloud Tenant Order Form for Smart Energy Water Cloud Services 15495 Sand Canyon Ave., Suite 100 Irvine, CA 92618 (“SEW”) 250 Hamilton Avenue Palo Alto, CA 94301 (“Customer”) 1. Order Form This Order Form, as issued by SEW, shall constitute an offer made by SEW to a Customer. When signed and returned to SEW by Customer, it shall become a binding agreement for the SEW Cloud Service(s) or other Services listed in this Order Form and effective on the date signed by Customer. This Order Form is governed by and incorporates the Terms and Conditions attached hereto. 2. SEW Platform Modules and Service(s) The table below shows the purchased SEW Platform(s) and associated Service(s) thereof, which shall be listed and selected by Customer below and subject to the Terms and Conditions which govern this Purchase Order. In addition to the Terms and Conditions which govern this Purchase Order, Customer shall be restricted in its use to internal, non-production, non-commercial, training and marketing purposes only. Product Code Product Name SCM-10-NONPROD Additional Non-production cloud tenant 3. Term and Fees The initial term of this Order Form shall be for one (1) month commencing on the April 1, 2023. Thereafter, it shall automatically renew for successive one (1)-month periods until such time as it is terminated pursuant to Section 4.2 of the attached terms and conditions. Description Number of Environments SCM Non-Production Cloud Tenant 1 $1,242 • • $1,242 on the first of each month thereafter 4. Acceptance and Authorization Customer Smart Energy Water Signature: Signature: Name: Name: Title: Title: Effective Date: Date: DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 28 Packet Pg. 75 of 259 Vers.: Aug. 5, 2019 Page 22 of 31 Dual/Non-Production Environnent Terms & Conditions Smart Energy Systems, Inc. dba Smart Energy Water (“Provider” or “SEW”), may offer to “Customer”, a right to access and use a duplicate or non-production environment of the cloud-hosted software purchased by Customer, in consideration of the mutual covenants, terms, and conditions set forth below and in any relevant exhibits or documents incorporated to this Agreement, and, if applicable, subject to any License Agreement and Order Form between Customer and any reseller of SEW services, the adequacy of which is hereby acknowledged. SEW and Customer, each a “Party,” and collectively referred to as the “Parties,” agree as follows: 1. Definitions: As used in this Agreement or any document(s) associated herewith: 1.1 “License Agreement” shall refer to any license agreement, terms and conditions, or other provisions in a signed writing pertaining to software licensed or implemented by SEW, or any of its resellers, for Customer. 1.2 “Non-Production Environment” shall refer to the non-production environment or cloud tenant of any SEW software, or other software as implemented by SEW for an applicable License Agreement or Order Form. 1.3 “Order Form” shall refer to an item list or writing authorizing the provision of software by SEW for a License Agreement or SaaS Agreement between SEW and a Customer or any reseller and a Customer, which is attached and incorporated hereunder. 1.4 “SaaS Agreement” shall refer to a software-as-a-service agreement, terms and conditions, or other provisions in a signed writing pertaining to software provided or implemented by SEW, or any of its resellers. 1.5 “Term” shall refer to the license term as set forth in the applicable Order Form, or if separate from another Order Form, then as listed in Section 4.1 below. 2. Grant of Rights Subject to the terms and conditions of this Agreement, SEW hereby grants Customer a non-exclusive, non-transferable, non- assignable, limited right to access and use the Non-Production Environment solely for Customer’s internal, non-production, non- commercial, training or marketing-related evaluation or use of such non-production service in accordance with the applicable Order Form. Except as otherwise provided in an additional writing, SOW, or Order Form, the foregoing access and use right shall be limited to a single tenant instance. All rights not expressly granted to Customer shall be reserved by SEW and its licensors. 3. Limitations on Use and Customer Responsibilities 3.1. Customer shall not disclose to any third party, the results of any evaluation or other use of the Non-Production Environment, performed by or on behalf of Customer, without the prior written authorization of SEW. (e.g. any monitoring of service availability, performance, or functionality, or any other benchmarking). SEW does not guarantee any service availability/uptime of the Non-Production Environment greater than 90.00%. 3.2. Customer shall not: (a) commercially exploit the Non-Production Environment by licensing, sublicensing, selling, reselling, transferring, assigning, or distributing, or otherwise making it available or accessible to any third party in any way; (b) modify or make any derivative works based upon the Non-Production Environment; (c) reverse engineer the Non- Production Environment; or (d) access or use the Non-Production Environment in order to build a product or service that competes with the Non-Production Environment, or production environment or software upon which such Non-Production Environment is based. 3.3. Customer must not access or use the Non-Production Environment to: (a) send spam or otherwise duplicative or unsolicited messages in violation of any applicable laws, statutes, ordinances, etc.; (b) send or store infringing, threatening, obscene, libelous, or otherwise unlawful or tortious material; (c) send or store material containing software viruses, worms, trojan horses, or other harmful computer code, files scripts, agents or programs; (d) interfere with or disrupt the integrity or performance of the Non-Production Environment, or if applicable, the production environment or the data contained therein; or (e) attempt to gain any unauthorized access to the Non-Production Environment, production environment, or their related systems or networks. 3.4. Customer shall be responsible for all activity occurring under the provisioned Non-Production Environment. Customer shall notify SEW immediately upon any suspected or actual unauthorized use or breach of security with respect to the Non- Production Environment and use reasonable efforts to immediately cease any use, distribution, or provision of access to any of Customer’s end users of the Non-Production Environment during such actual or suspected breach or misuse. 3.5. Customer is entitled to one database refresh every three (3) months per additional non-production cloud tenant. 4. Term and Termination 4.1. Term. The term of this Agreement is set forth in the above Order Form. 4.2. Termination. Either Party may terminate this Agreement for cause if the other Party breaches any material term of this Agreement or any Order Document and fails to cure such breach within thirty (30) days after delivery of notice of such breach. In addition, Customer may terminate this Agreement at any time for convenience upon providing written notice of thirty (30) business days of such termination. Such termination shall not impact the fees due to SEW. 5. Confidentiality and Nondisclosure 5.1. Confidentiality. Subject also to the Confidentiality and Nondisclosure terms of any Order Form, “Confidential Information” herein shall refer to the following types of material or content one Party to this Agreement (“Discloser”) discloses to the other (“Recipient”): (a) any information Discloser marks or designates as “Confidential” at the time of disclosure; and (b) any other nonpublic, sensitive information disclosed by Discloser including, but not limited to code, inventions, know-how, business, technical, and financial information, or other information which should reasonably be known by the Recipient to be confidential at the time it is disclosed, due to the nature of the information and the circumstances surrounding such disclosure. Notwithstanding the foregoing, Confidential Information does not include information that: (i) is in Recipient’s possession at the time of disclosure; (ii) is independently developed by Recipient without use of or reference to Confidential Information; (iii) becomes known publicly, before or after disclosure, other than as a result of Recipient’s improper action or inaction; or (iv) is rightfully obtained by Recipient from a third party without breach of any confidentiality obligations. DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 29 Packet Pg. 76 of 259 Vers.: Aug. 5, 2019 Page 23 of 31 5.2. Nondisclosure. Recipient shall not use Confidential Information for any purpose other than to facilitate this Agreement (the “Purpose”). Recipient: (a) shall not disclose Confidential Information to any employee or contractor of Recipient unless such person needs access in order to facilitate the Purpose and executes a nondisclosure agreement with Recipient with terms no less restrictive than those of this Article 6; and (b) shall not disclose Confidential Information to any third party without Discloser’s prior written consent. Notwithstanding the foregoing, Recipient shall protect Confidential Information with the same degree of care it uses to protect its own confidential information, but with no less than reasonable care. Recipient shall promptly notify Discloser of any misuse or misappropriation of Confidential Information that comes to Recipient’s attention. Notwithstanding the foregoing, Recipient may disclose Confidential Information as required by applicable law or by proper legal or governmental authority. Recipient shall give Discloser prompt notice of any such legal or governmental demand and reasonably cooperate with Discloser in any effort to seek a protective order or otherwise to contest such required disclosure, at Discloser’s expense. 5.3. Injunction. Recipient agrees that breach of this Section would cause Discloser irreparable injury, for which monetary damages would be inadequate, and in addition to any other remedy, Discloser will be entitled to injunctive relief against such breach or threatened breach, without proving actual damage. 5.4. Termination & Return. With respect to each item of Confidential Information, the obligations of Section 4.2 above (Nondisclosure) will terminate three (3) years from the expiration of this Agreement. Upon such termination, Recipient shall return all copies (excepting one (1) copy archived for purposes of Recipient’s back-up processes) of Confidential Information to Discloser or certify, in writing, the destruction thereof. 5.5. Retention of Rights. This Agreement does not transfer ownership of Confidential Information or grant a license or any other right thereto. Discloser will retain all right, title, and interest in and to all Confidential Information. 6. Intellectual Property Rights and Feedback 6.1. Intellectual Property Rights. SEW retains all right, title, and interest in and to the Non-Production Environment and any associated software of SEW acquired through applicable Order Forms, including but not limited to, the services and any upgrades, as well as any related methodologies, techniques, processes, and instruction developed by SEW and used in the course of performing the Services (collectively “SEW IP”) for Customer under this Agreement and an applicable Statement of Work. Nothing in this Agreement shall be construed to grant Customer any ownership rights, title, or interest in the Provider IP except to the extent of the limited rights specifically set forth in Section 1. Customer recognizes that the Non-Production Environment and its components are protected by copyright and other laws. Customer shall not (and shall not allow or cause any third party to) reverse engineer, disassemble, alter, or otherwise translate the Non-Production Environment, or as applicable, any production environment, or other software, documentation, services or upgrades. 6.2. Feedback. Customer hereby grants SEW a perpetual, irrevocable, unrestricted, worldwide license to use any Feedback (as defined below) Customer communicates to SEW during the Term, without compensation or any obligation to report on such use, and without any other restriction. Such rights shall include, without limitation, the right to exploit Feedback in any way and the right to grant sublicenses. Notwithstanding the provisions of Article 4 (Confidential Information). Feedback will not be considered Customer’s Confidential Information. (“Feedback” refers to any suggestion or idea for modifying any of Provider’s products or services, including all intellectual property rights therein.) 7. Warranty and Liability 7.1. DISCLAIMER OF WARRANTY. THE NON-PRODUCTION ENVIRONMENT IS PROVIDED “AS-IS,” EXCLUSIVE OF ANY WARRANTY, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTY OF MERCHANTABILITY, SATISFACTORY QUALITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT, OR ANY OTHER WARRANTY, WHETHER EXPRESS OR IMPLIED. SEW DOES NOT WARRANT THAT THE NON-PRODUCTION ENVIRONMENT IS OR WILL BE ERROR-FREE, MEET ALL CUSTOMER REQUIREMENTS, OR BE TIMELY OR SECURE, OR MIRROR SERVICE LEVEL AVAILABILITY OF THE PRODUCTION ENVIRONMENT. WITHOUT LIMITING THE FOREGOING, SEW’S NON-PRODUCTION ENVIRONMENT MAY BE SUBJECT TO LIMITATIONS, DELAYS, AND OTHER PROBLEMS INHERENT TO THE USE OF THE INTERNET AND ELECTRONIC COMMUNICATIONS. SEW IS NOT RESPONSIBLE FOR ANY DELAYS, DELIVERY FAILURES, OR OTHER DAMAGES RESULTING FROM SUCH PROBLEMS NOT CAUSED BY SEW. 7.2. LIMITATION OF LIABILITY. IN NO EVENT WILL SEW’S AND ITS LICENSORS’ TOTAL AGGREGATE LIABILITY ARISING FROM OR RELATING TO THIS AGREEMENT EXCEED THE AMOUNT PAID FOR THE NON-PRODUCTION ENVIRONMENT UNDER THIS AGREEMENT DURING THE TWELVE (12) MONTHS IMMEDIATELY BEFORE SUCH CLAIM AROSE. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, AND REGARDLESS OF WHETHER ANY REMEDY SET FORTH HEREIN FAILS OF ITS ESSENTIAL PURPOSE, IN NO EVENT WILL SEW OR ITS LICENSORS BE LIABLE TO YOU OR ANY THIRD PARTY FOR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL OR SIMILAR DAMAGES, INCLUDING WITHOUT LIMITATION, ANY LOST PROFITS, OPPORTUNITIES, DATA, OR USE, ARISING OUT OF THE USE OR INABILITY TO USE THE NON-PRODUCTION SERVICE, EVEN IF SEW HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR A REMEDY FAILS OF ITS ESSENTIAL PURPOSE. 8. Fees and Payment Terms 8.1. Fees for the Subscription Services shall be set forth in the attached Order Form and incorporated hereto. Customer shall be invoiced for the first-year fees upon signing of this Agreement and annually thereafter upon the anniversary date of the Effective Date for the remaining term until the fees have been paid in full. Customer agrees to make all payments to SEW within thirty (30) calendar days after receipt of invoice. Late invoices will incur a late payment fee of 1.5% or the maximum allowable under the law, whichever is less. If Customer’s account is sixty (60) days or more overdue, SEW reserves the right with prior written notice to withhold performance of its obligations under this Agreement, without liability, until such payments are paid in full, or to terminate for cause. Fees under this Agreement shall additionally be exclusive of all taxes, levies, or duties imposed by taxing authorities, and Customer shall be responsible for all applicable taxes, levies, or duties hereunder based on Customer’s income. DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 30 Packet Pg. 77 of 259 Vers.: Aug. 5, 2019 Page 24 of 31 9. Additional Terms 9.1. Independent Contractors. The Parties are independent contractors and will so represent themselves in all regards. Neither Party is the agent of the other, and neither may make commitments on the other’s behalf. 9.2. Force Majeure. No delay, failure, or default, other than a failure to pay fees, will constitute a breach of this Agreement to the extent caused by acts of war, terrorism, earthquakes, other acts of God or of nature, strikes or labor disputes, embargoes, or other causes beyond the performing Party’s reasonable control. 9.3. Assignment & Successors. Customer may not assign this Agreement or any rights or obligations hereunder without Provider’s written consent. Except to the extent forbidden herein, this Agreement will be binding upon and inure to the benefit of the parties’ respective successors and assigns. 9.4. Severability. To the extent permitted by law, the Parties waive any provision of law that would render any clause of this Agreement invalid or unenforceable. In the event that a provision herein is held to be invalid or unenforceable, such provision will be interpreted to fulfill its intended purpose to the maximum extent permitted by law, and the remaining provisions of this Agreement will continue in full force and effect. 9.5. Choice of Law & Jurisdiction: This Agreement will be governed by the laws of the State of California, without reference to any conflicts of law principles. The Parties consent to the personal and exclusive jurisdiction of the federal and state courts of Orange County, California. 9.6. Conflicts. Should this Agreement conflict with any other agreements, this Agreement will govern. 9.7. Construction. The Parties agree that the terms of this Agreement result from negotiations between them. This Agreement will not be construed in favor of or against either party by reason of authorship. 9.8. Entire Agreement. This Agreement sets forth the entire agreement of the Parties and supersedes all prior or contemporaneous writings, negotiations, and discussions with respect to its subject matter. Neither Party has relied upon any prior or contemporaneous communications. 9.9. Execution in Counterparts. This Agreement may be executed in one or more counterparts. Each counterpart will be an original, but all such counterparts will constitute a single instrument. 9.10. Modification. This Agreement may be modified from time to time by SEW, with Customer to be provided notice of no less than thirty (30) days prior to such Terms and Conditions taking effect DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 31 Packet Pg. 78 of 259 Vers.: Aug. 5, 2019 Page 25 of 31 Amendment 3 Appendix “3” – Max Support Plan Subscription Order Form for SEW Max Support Plan 15495 Sand Canyon Ave. STE #100 Irvine, CA 92618 (“SEW”) 250 Hamilton Avenue Palo Alto, CA 1. Order Form This Order Form, as issued by SEW, shall constitute an offer made by SEW to a Customer. When signed and returned to SEW by Customer, it shall become a binding agreement for the SEW Software or other Services listed in this Order Form and effective on the date signed by Customer. This Order Form is governed by and incorporates the Terms and Conditions attached hereto. 2. Plan Details & Fees The table below shows the purchased Service(s) fees which shall be listed and selected by Customer below and subject to the Terms and Conditions which govern this Purchase Order. MAX SUPPORT PLAN (MSP) STANDARD SUPPORT PLAN (SSP) 1 Production Support a Issue Reporting TDM Contact SEW Support b Issue Response Accelerated Standard c RCA Analysis & Review Monthly RCA & Diagnostics Review with TDM Self-service via SEW Support 2 Enhanced Support a Not Included b Not Included c End-to-end Supportability Not Included d 20 Hours per Month Included Max Rollover Hours: 40 Available at additional cost e On Call Live Support Not Included f Support Services Hours Not Included 3 Learning and Enablement a Not Included b Certified Training Customer Specific Digital Self-Service Content Library (30 minutes) and Quarterly 1-hour Webinar credit Available at additional cost Annual Fee $39,000 per year Included in License Subscription Fee Fees as set forth herein shall be invoiced and paid on an annual basis upfront. Company agrees to make all payments to SEW within thirty (30) calendar days after receipt of invoice. Late undisputed invoices will incur a late payment fee of 1.5% or the maximum allowable under the law, whichever is less. Upon a termination for convenience by Company, SEW shall be entitled to payment of all Fees which would be due under the initial Term of this Agreement. 3. Term DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 32 Packet Pg. 79 of 259 Vers.: Aug. 5, 2019 Page 26 of 31 The initial term of the Max Support Services shall commence upon the April 1, 2023, and continue for a period of one (1) year. 4. Acceptance and Authorization Signature: Signature: Name: Name: Harman Sandhu Title: Title: President Effective Date: Date: DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 33 Packet Pg. 80 of 259 Vers.: Aug. 5, 2019 Page 27 of 31 SEW Max Support Plan Agreement 1. Introduction This Max Support Plan Agreement, including any exhibits or attachments hereto, is made as of the Effective Date stated in the Order Form, and pertains to the Max Support Plan (“MSP”) as offered by Smart Energy Systems, Inc. dba Smart Energy Water (“SEW”) to the “Customer” or “Company”. In addition to the support services defined in SEW Standard Support & Maintenance, the MSP includes enhanced support and designated hours which are utilized by Company to obtain professional services, which may facilitate or provide enhanced services, product enhancements, customizations, and other related projects. 2. Definitions 2.1. Customer Success Manager: Refers to the individuals which both support and liaise with the Company for any Product or Support needs. 2.2. Edge Systems: Company or Third-party systems that have data integrations setup with SEW Product or Platform for Company’s specific environments. 2.3. End-to-End Supportability (“ETES”): Refers to support for incidents that occur in integrated business scenarios consisting of SEW Platform, integration services and interfaces including middleware, Company’s network environment, and Company’s source systems. 2.4. Max Support Plan (“MSP”): Refers to the support plan and details listed herein. 2.5. Product / Support Specialist (“PSS”) Services: Refers to as a team consisting of the SEW product expert resources who are enabled to support on various technical matters, advisory or consulting topics. 2.6. Rollover Hours: Refers to unused monthly hours which roll over to the following month for use. Total accumulated Rollover Hours shall not exceed equivalent of three-month service quota hours at any point of time during the Term of this Agreement. 2.7. SEW Platform: Refers to the deployed SEW Product or Cloud Services for Company. 2.8. SEW Product and Cloud Services: Refers to SEW’s enterprise software platforms and other cloud-hosted services offered to its customers. 2.9. Support Services Quota: Refers to the quantity of hours, as stated in the Order Form, available to Company per month under this Max Support Plan to leverage such services associated under this Max Support Plan. 2.10. Technical Delivery Manager (“TDM”): Refers to a resource designated to Company to support in optimizing the delivery or execution of the MSP. 2.11. Term: Refers to the period during which the Max Support Plan subscription shall be active as stated in the Order Form. Thereafter, unless this Agreement is earlier terminated in accordance with its terms, this Agreement will automatically renew for additional one (1) year terms (each, a “Renewal Term”, and together with the Initial Term, the “Term”), unless either party delivers to the other party written notice of non-renewal at least forty-five (45) days’ prior to the end of the then-current term. SEW shall provide an extension proposal ninety (90) days prior to the end of the term. 2.12. Trusted Custom Code: Custom software adaptors or programs developed by SEW professional services or reviewed and certified thru SEW Release Management process that are installed in the SEW Cloud environment or used in the integration/interfaces connecting SEW Platform with Company’s Edge Systems. 3. Max Support Plan 3.1. Services Scope 3.1.1 SEW Platform Management and Support Services provided by SEW for the SCM Platform shall include: • Service Pack/bug fixes, etc.: o Proactive and regular monitoring for new Software Releases, Software Updates, and/or Service Packs and bug fixes, which may include minor or incremental updates as they become necessary to maintain Proper Functionality of Product, and which may address various updates, enhancements, or changes to the Product. o Notifying COMPANY of upcoming requirements o Testing both internally and externally all releases and updates in the Testing Environment to detect any potential or discovered impairments to the Proper user Functionality of the Product prior to implementation into Production o Development of repair/fixes for any discovered issues o Providing Updates and Implementation Plans to COMPANY utilizing COMPANY Test environments, as timely as possible to ensure continued Proper Functionality o Providing Real-Time support to COMPANY during implementation • Continuing Service upon Release of Security Updates: o Proactively and regularly monitoring for any new Security Updates, etc. that are required to maintain compliance with security requirements according to state, federal or international regulations, which shall be implemented on the system back-end via proper maintenance of hardware and software necessary to ensure protection of customer data, personally identifiable information, and to maintain functionality upon such releases, etc. o Notifying COMPANY of upcoming requirements o Validating Security Updates prior to the third Tuesday of each month to correspond with COMPANY policy of applying security updates as they are provided by Microsoft o Reporting to COMPANY any identified issues, and advise whether or not to implement the Security Update DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 34 Packet Pg. 81 of 259 Vers.: Aug. 5, 2019 Page 28 of 31 o Providing an implementation plan (if implementation is recommended by SEW), which shall include any instructions required for remedy of any issues identified during Security Update validation o Providing Real-Time support to COMPANY during implementation 3.1.2 Mobile Application Management and Support Services provided by SEW for the Mobile Application shall include: • Operating System Updates o Proactively and regularly monitoring for new bug fixes, security updates, enhancements, and support for updated Operating Systems or Platform support as defined above o Proactively detecting and repairing or providing fixes for any potential or discovered impairments to the Proper Functionality of the Mobile Application o Notifying COMPANY of any upcoming changes o Testing prior to the launch of any new version of either Apples’ iOS or Google’s Android operating systems, in which SEW shall perform beta testing both internally and externally with a select number of users, as well as testing of run-time, use, and interactions, within an artificial testing environment, to identify any issues, bugs, or defects, which shall be addressed prior to release or launch of the latest versions as described above. o Providing Updates and Implementation Plans to COMPANY, as timely as possible to ensure continued Proper Functionality o Providing Real-Time support to COMPANY during implementation • Mobile App Store Functionality Management and Support o Apple iTunes App Store Maintenance, which shall include maintenance of the developer account, XCode development environment, developer certificates, product certificates, and availability of the application in the iTunes App Store. Maintenance of the Application within the Apple iTunes environment shall include internal testing prior to any software Release or Software Update, in which SEW, whether to address the release of a new version of iOS, or to roll out SEW’s own updates to its services, shall conduct testing of all functionality related to the Services within an artificial testing environment over a sufficient period of time with a sufficient number of users, prior to such Software Update or Release. o Google Play Store Maintenance, which shall include maintenance of the Google Developer Account, Android Studio Repository, and availability of the applications in the Google Play Store. Maintenance of the Application within the Google Play Store environment shall include internal testing prior to any Software Release or Software Update, in which SEW, whether to address the release of a new version of Android, or to roll out SEW’s own updates to its services, shall conduct testing of all functionality related to the Services within an artificial testing environment over a sufficient period of time with a sufficient number of users, prior to such Software Update or Release. o Notifying Company of any upcoming changes and/or issues o SEW shall not release subsequent versions of the mobile app to the public without Company approval. 3.1.3 Incident Support Services provided by SEW for Reported Incidents shall be governed by the existing SEW Standard Support Terms in place. 3.2. Enhanced Support Services The MSP enhances the Company experience using SEW Product and Cloud Services through the included Enhanced Support Services and the included Support Services Quota hours. The following Enhanced Support Services are provided as core services within the MSP and have no impact on the Support Services Quota hours consumption. 3.2.1. Accelerated Incident Management (“AIM”) for Critical Incidents Services The TDM provides: (i) incident activity and status monitoring for Critical classified incidents; (ii) trend reporting of Company’s incident situation on all incident priorities of selected systems; (iii) incident management process empowerment session(s); and (iv) periodic remote meetings with Company to review the status of Company incidents. In addition, SEW will make available a critical situation manager within SEW’s support organization to remotely coordinate and/or assist a Company designated management contact (“Customer Contact”) with Critical classified incidents. Assignment of a critical situation manager will occur within one (1) hour following Company’s request documented in an incident support ticket. The critical situation manager will be available to Company’s Contact and will remain engaged until the earliest of the following: (i) resolution or workaround of the Critical classified incident; (ii) reduction of the incident priority level to a priority level other than Critical classified incidents; or (iii) agreement of the parties to disengage the assigned critical situation manager. Company will designate at least one (1) and can designate up to three (3) qualified English-speaking contacts (“Company AIM Contact(s)”) and shall provide contact details (in particular, e-mail address and telephone number) by means of which the Company AIM Contact can be contacted. As preparation for delivery of AIM Services, Company’s AIM Contacts and the assigned TDM will jointly perform one (1) initial remote set-up meeting. 3.2.2. End-to-end Supportability (“ETES”) Services The ETES service expands the scope of troubleshooting and support services from just the SEW Platform to include the Trusted Custom Code and Edge System integrations/interfaces. Scope of implementation for fixes, enhancements, security updates, software releases, and software updates (service packs), etc. into Company’s non-production and production environments shall be limited to the SEW Platform only. The ETES service does not include any remediation or implementation for non-SEW software or technology products. DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 35 Packet Pg. 82 of 259 Vers.: Aug. 5, 2019 Page 29 of 31 To deliver this service, Company shall provide SEW with administrator access to Company’s development and test environments for purposes of Management and Support of Product. Company will provide SEW with read-only access to Company’s UAT and production environments. ETES service is limited to Trusted Custom Code or customer specific integration services or interfaces deployed in production environment to connect SEW platform with Company’s Edge Systems. ETES services include the support for following activities: • Third Party Vendor support and troubleshooting services • Participate in impact testing for Edge Systems for migration of SEW software service packs and updates • Audit and testing support • On demand certified administrative support For Company Trusted Custom Code, SEW provides mission-critical support root-cause analysis and may provide guidance for incident resolution, for Critical incidents related to the Company installations. The scope of this service is limited to identifying possible root causes for the incident and/or failure of Company’s Trusted Custom Code. SEW’s root cause analysis for Trusted Custom Code does not include providing corrections; work arounds; or incident resolution for Third Party technology or Edge Systems regardless of who created Company’s Trusted Custom Code. 3.2.3. Monitor Services The Monitor services include proactive monitoring of the SCM (Smart Customer Mobile) Customer Web Portal and Mobile Apps including both the technical metrics as well as the customer or user feedback on continuous basis as reported via various channels. 3.2.4. Report Services The scope of services shall include tracking and reporting of the application status, support tickets, and overall health of the service. With this service the Company shall be able to view monthly, quarterly, and yearly trends. The reports will be shared with the Company monthly. Together with SEW, the Company’s designated personnel will be able to review and improve the customer journey, identify the customer pain points, and understand their behavior. A root cause analysis may be performed and provided to detail the facts or issues leading up to the submission of an incident and the steps taken to resolve such issues. If a detailed root cause analysis is deemed to be required in accordance with the Standard Support Plan, for Critical and High priority issues, (and for Medium and Low priority issues as agreed by the parties), it shall be provided within fourteen (14) days after incident closure. Specifically, the activities under this Report Services include: • Weekly reporting on incident resolution • Monthly management level status reporting • Root Cause Analysis review for key issues • Monthly Support Services Quota report detailing hours consumed and hours remaining inclusive of Rollover Hours 3.3. Support Services Quota SEW will provide designated Support Services Quota hours and personnel to facilitate or provide enhanced services, product enhancements, customizations, and other related projects to fulfill the requirements of the MSP. The resource time to provide these services shall be charged against the Support Services Quota hours. The Company shall have Support Services Quota as stated in the Order Form. Such hours for Support Services expended in any given calendar month shall be requested using a Services Request form, attached below as Attachment A which will be reported as hours consumed in the monthly Support Services Quota Services report which will then be reviewed with the Company. For TDM Services, these hours will be reported as consumed in the monthly Support Services Quota Services report which will then be reviewed with the Company. 3.3.1. Software Enhancement Services Company can request enhancements to the SEW software and SEW shall prioritize such requests. To the extent the enhancements are not planned in the software roadmap, such enhancements will be delivered as a Company Change Request using the Company Change Request template in Appendix A. In-Scope Services include Product Engineering and development, Quality Assurance, Cloud Engineering and other services necessary to deliver agreed upon software enhancement as documented, estimated and agreed upon in Service Request. 3.3.2. Technical Delivery Manager (“TDM”) Services SEW will provide access to an English speaking named contact within SEW’s support organization between 8:30 am to 5:30 pm local time, Monday through Friday, unless otherwise agreed to in writing by the parties, to support Company in optimizing the processing of Company Change Requests, Product / Support Specialist (“PSS”) Services and incidents as defined in this MSP. The assignment of the TDM will occur within two (2) weeks of execution of this Agreement. In-Scope Services: • Lead requirement and design sessions required to support Software Enhancement Services • Serve as project manager and technical liaison to Company for Software Enhancement Services • Lead troubleshooting and incident management related activities under scope of this agreement. • Provide advice, guidance, and assistance to Company with agreed to focus areas: o SEW support requirements, Company support processes and use of SEW support tools o Integrated end-to-end application lifecycle management o Integration validation of complex Company solutions o Operate the SEW solution more efficiently DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 36 Packet Pg. 83 of 259 Vers.: Aug. 5, 2019 Page 30 of 31 o Accelerated innovation for custom built solutions and rapid prototyping o Solution availability management, monitoring and performance o Risk mitigation plan(s) for critical maintenance issues or Incident reduction and/or avoidance • Track Company’s implementation of SEW’s recommendations and action plans resulting from the delivery of Product Specialist Services defined below • Provide periodic status and risk reporting at Company’s project management level • Manage quality gates for selected focus area projects 3.3.3. Product / Support Specialist (“PSS”) Services As a part of the MSP, the Company shall have access to SEW Product and support experts, from whom you can request support on various technical matters, advisory or consulting topics. The Company may contact their TDM or Customer Success Manager to request PSS Services under this section using the Service Request Form in Appendix A. Such specialist resources shall be available virtually or at the Company location(s) during Normal Business Hours for the time period or date as requested and approved. DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 37 Packet Pg. 84 of 259 Vers.: Aug. 5, 2019 Page 31 of 31 Amendment 3 Appendix 3-A Service Request Form COMPANY NAME DESCRIPTION OF SERVICES REQUIRED SCM JIRA NUMBER LEGAL TO FILL Pursuant to the SEW Max Support Plan Agreement executed between Smart Energy Water (“SEW”) and COMPANY NAME (“Company”), Company would like to: • [ENTER BRIEF OVERVIEW HERE] Recommended Solution SOFTWARE CUSTOMIZATION, ADDITIONAL LICENSES, ETC. > Type of Change ☐ Additional Modules ☐ Customization ☐ Additional Licenses ☐ Additional Services ☐ System Integration ☐ Critical ☐ High ☐ Normal ☐ Low Fees and Payment Terms Total Hours Payment Terms • The compensation for the work effort under this request shall be adjusted against the Support Services Quota hours as stated in the active Max Support Plan. In case the Company has exhausted the hours available in the plan the fees shall be invoiced at an hourly services rate. • Payment will be due net-30 days from receipt of invoice by Company. • Late Payment penalties are applicable in accordance with the terms of the SEW Max Support Plan Agreement. • This Change Request shall result in the allocation and dedication of resources for the commencement and delivery of the change(s) or solution(s) described above. Therefore, any delay in schedules by Company may adversely affect the timely delivery of this and other Change Requests and incur additional Acceptance and Authorization : Company : SEW Name: Signature: DocuSign Envelope ID: 435B801A-3175-47B6-B54C-FDB0D207799F Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 38 Packet Pg. 85 of 259 Certificate Of Completion Envelope Id: 435B801A317547B6B54CFDB0D207799F Status: Completed Subject: Complete with DocuSign: S18165157 Amendment No. 3 final.pdf Source Envelope: Document Pages: 31 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 Annmarie Romero AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 annmarie.romero@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original 4/11/2023 9:53:38 AM Holder: Annmarie Romero annmarie.romero@cityofpaloalto.org Location: DocuSign Security Appliance Status: Connected Pool: StateLocal Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign Signer Events Signature Timestamp Harman Sandhu harman.sandhu@sew.ai President Smart Energy Water (SEW) Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 64.147.23.106 Sent: 4/11/2023 9:55:12 AM Viewed: 4/11/2023 9:57:46 AM Signed: 4/11/2023 9:58:10 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Sangeeta Kumar sangeeta.kumar@sew.ai VP Finance Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 64.147.23.106 Sent: 4/11/2023 9:58:12 AM Resent: 4/12/2023 2:21:08 PM Resent: 4/12/2023 2:21:10 PM Viewed: 4/12/2023 3:33:04 PM Signed: 4/12/2023 3:33:14 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Tabatha Boatwright Tabatha.Boatwright@CityofPaloAlto.org Utilities Administrative Assistant City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 4/12/2023 3:33:16 PM Viewed: 4/12/2023 4:43:45 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 39 Packet Pg. 86 of 259 Carbon Copy Events Status Timestamp Dave Yuan Dave.Yuan@CityofPaloAlto.org Utilities Strategic Business Manager Dave Yuan Security Level: Email, Account Authentication (None) Sent: 4/12/2023 3:33:17 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 4/11/2023 9:55:12 AM Certified Delivered Security Checked 4/12/2023 3:33:04 PM Signing Complete Security Checked 4/12/2023 3:33:14 PM Completed Security Checked 4/12/2023 3:33:17 PM Payment Events Status Timestamps Item 9 Attachment A - S18165157 Amendment 3 Item 9: Staff Report Pg. 40 Packet Pg. 87 of 259 1 7 2 6 City Council Staff Report From: City Manager Report Type: ACTION ITEM Lead Department: Planning and Development Services Meeting Date: May 1, 2023 Report #:2302-0980 TITLE Adoption of the Community Development Block Grant (CDBG) FY 2023-24 Annual Action Plan and the Adoption of a Resolution Approving Use of CDBG Funds for FY 2023-24 RECOMMENDATION The Human Relations Commission (HRC) and staff recommend City Council take the following actions: 1. Adopt the draft Fiscal Year 2023-2024 Annual Action Plan (Attachment A) and the associated resolution (Attachment B) allocating Community Development Block Grant (CDBG) funding for Fiscal Year 2023-24; 2. Authorize the City Manager to execute the Fiscal Year 2023-24 CDBG application to fund the Fiscal Year 2023-24 Annual Action Plan and any other necessary documents concerning the application, and to otherwise bind the City with respect to the applications and commitment of funds; and 3. Authorize staff to submit the Fiscal Year 2023-24 Annual Action Plan (Attachment A) to U.S. Department of Housing and Urban Development (HUD) by the May 15, 2023, deadline. EXECUTIVE SUMMARY The City is preparing for its first year of a two-year CDBG funding cycle for FY 2024. On February 9, 2023, the HRC reviewed the eligible programs and recommended the funding allocations for each project as reflected in the draft FY 2024 Annual Action Plan (AAP; Attachment A). Staff requests that Council review the draft FY 2024 AAP and approve the recommended funding allocations identified in the document. Council’s approval of the AAP will be recorded by Resolution (Attachment B). Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 1 Packet Pg. 88 of 259 1 7 2 6 The CDBG federal appropriations for FY 2024 were released by the U.S. Department of Housing and Urban Development (HUD) on February 27, 2023. The total amount available for allocation in FY 2024 is $614,242, which includes the City’s entitlement grant ($514,242) and estimated program income ($100,000). These funds have been allocated to fund nine programs and projects as well as the program administration. Please see Table 3 for a summary of the projects and respective allocations. BACKGROUND 1 adopted by Council in 2020. Every year, an AAP is prepared to identify the specific projects to be funded by the CDBG program; these projects must further the implementation of the Consolidated Plan strategies. As Council reviews the proposed projects and recommends funding allocations, consistency with the Consolidated Plan goals is a primary consideration. 1 2020-2025 Consolidated Plan: Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 2 Packet Pg. 89 of 259 1 7 2 6 applications due November 29, 2022. A pre-proposal conference was conducted on November 10, 2022 to assist applicants with program regulations and project eligibility questions. For FY 2024, the City received applications from two agencies (Peninsula Healthcare Connection & WeeCare) that have not been previously funded by the City’s CDBG program. 2 and National Objectives.3 This process involves staff reviewing the application materials and communicating with the applicant as needed to clarify details in the application. 4, the City must ensure adequate citizen participation in the CDBG funding process. Prior to the submission of the AAP to HUD, the City must hold two public hearings; one hearing, followed by a 30-day circulation and public comment period, followed by one more public hearing. Refer to the Stakeholder Engagement report section below for specific details on required meetings and comment periods. 2 CDBG Matrix Codes: 3 CDBG National Objectives: 4Citizen Participation Plan 2022: Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 3 Packet Pg. 90 of 259 1 7 2 6 On February 9, 2023, the HRC considered the funding recommendations of the HRC Selection Committee and voted unanimously to recommend Council approve the draft FY 2024 AAP. The HRC discussed the estimated funding allocations based on program budget, availability of additional resources, the federal spending caps, and total available CDBG funds. The HRC inquired about WeeCare, one of the new program applicants in the economic development funding category. A representative of WeeCare described how the company would be using CDBG funds and activity eligibility. •If more funds are received than estimated, allocate additional funds to the LifeMoves program; and •If less funds are received than estimated, evenly reduce all programs. DISCUSSION Table 1: FY 2024 CDBG Funding Summary Total Available for Allocations $614,242 Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 4 Packet Pg. 91 of 259 1 7 2 6 Public Facility Improvements. Federal regulations limit the amount that can be spent on two categories: planning and administration and public services. No more than 20% of the City’s entitlement grant and estimated program income for the following year can be spent on planning and administration. Similarly, there is a maximum spending cap of 15% of the grant allocation and 15% of any program income received during the previous fiscal year on the public services category. The amount available to allocate in each of the activity area is summarized below in Table 2. Table 2: FY 2024 CDBG Funding Categories and Allocation Amounts Funding Categories Allowed Allocations Total Available for Allocation $614,242 Table 3: FY 2024 Summary of Applications and Funding Recommendations Agency/Program Name FY 2023 Funded Amount Recommended FY 2024 Amount Public Services (15% Cap = $92,136) SRO Resident Supportive Care Long Term Care Ombudsman Program Case Management at Opportunity Center Harm Reduction Materials Case Management Services Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 5 Packet Pg. 92 of 259 1 7 2 6 Project Sentinel - Fair Housing Services $23,615 $18,000 Subtotal $92,136 Economic Development (No Cap) WeeCare - Training for Family Child Care Home (FCCH)n/a $114,000 Subtotal $114,000 Housing (No Cap) Rebuilding Together Peninsula – Home Repair Program $73,135 $73,585 Subtotal $73,585 Public Facilities (No Cap) City of Palo Alto Sidewalk Repairs Capital Project (PO-89003)n/a*$211,673 Subtotal $211,673 Planning & Administration (20% Cap = $122,848) City of Palo Alto/CDBG Administation $121,816 $122,848 Subtotal $122,848 GRAND TOTAL $614,242 *This project received $300,000 in FY 2023 via a Substantial Amendment to the FY 2021-2022 action plan (CMR 2302-0991), which reallocated funding from the Ravenswood Family Health Network ADA ramp improvements project. Downtown Streets Team: Workforce Development Program The Downtown Streets Team (DST) was one of the nine applications submitted for FY 2024 funding with a request of $278,174.5 The HRC did not recommend funding for this project. Due to the more recent circumstances regarding DST’s Community Business Development Organization (CBDO) status, DST is not eligible to be funded under the Economic Development uncapped funding category; historically, this was how CDBG funded the program. DST could be eligible for funding under the Public Services category where six other applications were considered. The City recognizes the valuable contribution DST provides to the community, but the HRC did not recommend funding the program this year. The DST funding request exceeded the total amount available to allocate under Public Services and diverted funds away from the other programs, potentially impacting the assistance to several hundred City residents in need. As the City continues to evaluate the transition of Downtown Streets Team, staff will include funding for this program in the FY 2024 proposed budget for City Council consideration. 5 DST: The project activities included securing paid employment opportunities for unemployed and homeless individuals and building an extensive network of local employers willing to hire Downtown Streets Team workforce development program participants. Goal: assist 44 individuals and 15 businesses. Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 6 Packet Pg. 93 of 259 1 7 2 6 POLICY IMPLICATIONS The projects recommended for funding for the FY 2024 AAP are consistent with the priorities established in the City’s adopted FY 2020-2025 Consolidated Plan. As per HUD’s regulations, up to 20% of the total CDBG funding can be used for the CDBG program administration. The City relies on the annual grant funding to support the program administration. These funds are needed to pay for consultant services to manage the program. There are no anticipated impacts to the General Fund budget with the requested action. The funding recommendations made by the Council will be incorporated into the FY 2024 AAP. Subsequently, the adopted FY 2024 AAP will be submitted to HUD by the May 15, 2023 deadline. The consequence of submitting the AAP late to HUD is a delay in City receiving funds for reimbursement to the programs. Prior to the submission of the FY 2024 AAP to HUD, the City must hold two public hearings; one hearing, followed by a 30-day circulation and public comment period, followed by one more public hearing. The HRC meeting on February 9, 2023, served as the first public hearing, the City published a notice of the HRC meeting on January 25, 2023 in the Daily Post; this constituted the required 14-day public review period prior to first public hearing. After the presentation of the draft FY 2024 AAP to the HRC, the FY 2024 AAP was posted to the City’s webpage for public review and comments for are required 30-day period that began on March 28, 2023 through April 27, 2023; information was also posted on the City’s CDBG webpage and via email blasts to stakeholders. At the time of this report, staff did not receive any public comments on the draft AAP. The public Council meeting on May 1, 2023 will serve as the second public hearing to review and approve the FY 2024 AAP. The City published a public notice of the Council public hearing on March 27, 2023 advertised in the Daily Post. This advertisement complies with the City’s required 14-day public notice period prior to the second public hearing. For purposes of the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA), budgeting by itself is not a project. Prior to commitment or release of funds for each of the proposed projects, staff will carry out the required environmental reviews or Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 7 Packet Pg. 94 of 259 1 7 2 6 assessments and certify that the review procedures under CEQA, HUD and NEPA regulations have been satisfied for each project. ATTACHMENTS APPROVED BY: Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 8 Packet Pg. 95 of 259 ANNUAL ACTION PLAN FISCAL YEAR 2023-2024 DRAFT ADMINISTERED BY: PLANNING AND DEVELOPMENT SERVICES Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 9 Packet Pg. 96 of 259 Page | 2 Table of Contents Executive Summary 3 AP-05 Executive Summary - 91.200(c), 91.220(b) 3 Introduction 3 The Process 6 PR-05 Lead and Responsible Agencies - 91.200(b) 6 AP-10 Consultation - 91.100, 91.110, 91.200(b), 91.300(b), 91.215(l) and 91.315(I) 7 AP-12 Citizen Participation - 91.105, 91.115, 91.200(c) and 91.300(c) 17 Expected Resources 20 AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2) 20 Annual Goals and Objectives 23 AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3) and(e) 23 Goals Summary Information – FY2023-24 23 AP-35 Projects - 91.420, 91.220(d) 25 Introduction 25 AP-38 Project Summary 26 AP-50 Geographic Distribution - 91.420, 91.220(f) 33 AP-75 Barriers to affordable housing -91.420, 91.220(j) 34 AP-85 Other Actions - 91.420, 91.220(k) 36 Program Specific Requirements 39 AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) 39 APPENDIX A 40 PUBLIC COMMENTS 40 APPENDIX B 41 PUBLIC HEARING NOTIFICATIONS 41 APPENDIX C 45 CDBG APPLICATION FORMS 45 Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 10 Packet Pg. 97 of 259 Page | 3 Executive Summary AP-05 Executive Summary - 91.200(c), 91.220(b) Introduction The City of Palo Alto (City) Fiscal Year (FY) 2023-24 One Year Action Plan contains the City’s one- year plan to carry out housing and community development activities funded by Federal formula grant funds received from the U.S. Department of Housing and Urban Development (HUD), Community Development Block Grant (CDBG) program. The City operates on a two-year grant funding cycle for CDBG public service grants and a one-year cycle for CDBG capital housing rehabilitation and public facilities and improvement projects. This Action Plan covers the fourth of five program years covered by the City’s 2020-2025 Consolidated Plan which was adopted by the Palo Alto City Council on June 15, 2020. The Department of Planning and Development Services is the lead agency for the Consolidated Plan and submits the Annual Action Plan for the City’s CDBG program. HUD requires entitlement jurisdictions to submit an annual Action Plan to report the distribution of federal entitlement grant funds over the Consolidated Plan’s five-year period identifying how funding allocations help meet the goals covered in the Consolidated Plan. The CDBG federal appropriations for FY2023-24 were released by HUD on February 27, 2023 and the City received $514,242 for CDBG programming. With the entitlement grant and $100,000 in estimated project income, the total of available for funding projects and programs during FY2023-24 is $614,242. The City’s Action Plan covers the time period from July 1, 2023, to June 30, 2024, (HUD Program Year 2023). The City’s FY 2023-24 Action Plan reports on the status of needs and outcomes the City expects to achieve in the coming year. All of the activities mentioned in this Action Plan are based on current priorities. By addressing these priorities, the City hopes to meet those objectives stated in the 2020-2025 Consolidated Plan. All the proposed projects and activities are intended to principally benefit residents of the City who have extremely low-, low- and moderate- income, and populations that have special needs, such as the elderly, disabled, and homeless. Summary of the objectives and outcomes identified in the Plan The City is part of the San Francisco Metropolitan Bay Area, located 35 miles south of San Francisco and 14 miles north of San José. The City is located within the County of Santa Clara, borders San Mateo County, and encompasses an area of approximately 26 square miles, one-third of which consists of open space1. ________________________ 1 U.S. Census Bureau: https://www.census.gov/quickfacts/fact/table/paloaltocity According to Quick facts data provided by the U.S. Census Bureau 1, the City's total resident population is 66,680, per the Census on July 1, 2022. The City has the most educated residents in the country and is Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 11 Packet Pg. 98 of 259 Page | 4 one of the most expensive cities to live in. In Silicon Valley, the City is considered a central economic focal point and is home to over 9,483 businesses. Additionally, according to the 2022 Point in Time Homeless Census 2, in Palo Alto, there were 299 unsheltered homeless in 2019 and 263 in 2022. The PIT count revealed there were 14 individuals sheltered in 2019 and 11 in 2022. This number represents decrease of 12% from 2019 to 2022. The Action Plan provides a summary of how the City will utilize its CDBG allocation to meet the needs of the City’s lower-income population. According to the U.S. Census data, 6.1% of all residents within the City had incomes below the federal poverty level. As mentioned previously, a total of $614,242 is available for funding projects and programs during FY2023-24. In FY 202 3 -202 4 , t he City was allocated $514,242 from the federal CDBG program plus an additional $100,000 in program income. Table 1, “Fiscal Year 2023-2024 CDBG Budget” below summarizes the uses of the funds proposed during FY 2023-24. Table 1: Fiscal Year 2023-2024 CDBG Budget Alta Housing - SRO Resident Supportive Services $14,000 Catholic Charities of Santa Clara County – Long Term Care Ombudsman $10,000 LifeMoves – Case Management at Opportunity Center $23,636 Silicon Valley Independent Living Center – Case Management Services $16,500 Project Sentinel – Fair Housing Services $18,000 Peninsula Healthcare Connection – Harm Reduction Services $10,000 Sub-total $92,136 City of Palo Alto Administration ADA curb ramp project WeeCare Rebuilding Together Peninsula Evaluation of past performance This is an evaluation of past performance that helped lead the grantee (the City) to choose its goals or projects. 2 Santa Clara County Point-in-Time Report on Homelessness: 2022 PIT Report Santa Clara County.pdf (sccgov.org) Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 12 Packet Pg. 99 of 259 Page | 5 The City is responsible for ensuring compliance with all rules and regulations associated with the CDBG entitlement grant program. The City’s Annual Action Plans and Consolidated Annual Performance and Evaluation Reports (CAPER) have provided many details about the goals, projects, and programs completed by the City. A review of the FY 2021-22 CAPERs reveals: • LMI elderly were assisted: 262 • Residents that received counseling services: 151 • Homeless individuals received shelter: 56 • Individual that received housing complaint services: 24 • Persons with disabilities receiving assistance: 26 • LMI homeowners receiving home improvements: 6 • Workforce development program assistance: 14 employers and 7 individuals The City evaluates the performance of subrecipients on a semiannual basis. Subrecipients are required to submit semiannual progress reports, which include client data, performance objectives, as well as data on outcome measures. Prior to the start of the program year, program objectives are developed collaboratively by the subrecipient and the City, ensuring that they are aligned with the City's overall goals and strategies. The City utilizes the semiannual reports to review progress towards annual goals. Summary of citizen participation process and consultation process The City solicited input throughout the development of the FY 2023-24 Annual Action Plan. As required by HUD, the City provides multiple opportunities for public review and comment on the Action Plan and on any substantial amendments to it. Per the City’s adopted Citizen Participation Plan, the City held a 30-day public review comment period for the Action Plan. The City published notifications of upcoming public hearings and the 30-day public review comment period in a local newspaper of general circulation, on the City’s CDBG webpage and via email blasts to stakeholders. The City held two advertised public hearings on February 9, 2023, and May 1, 2023. The Action Plan 30-day public review period occurred from March 28, 2023, through April 27, 2023. Summary of public comments [To be updated after close of comment period] There were no public comments received during the public review period. Summary of comments or views not accepted and the reasons for not accepting them [To be updated after close of comment period] There were no public comments received during the public review period. The City accepts and responds to all comments that are submitted. As mentioned above, no public comments were received regarding the FY2023-24 Action Plan. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 13 Packet Pg. 100 of 259 Page | 6 The Process PR-05 Lead and Responsible Agencies - 91.200(b) Describe agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source. Table 2: Responsible Agencies CDBG Administrator Palo Alto City of Palo Alto: Department of Planning and Development Services Narrative The City is the Lead and Responsible Agency for the United States Department of Housing and Urban Development’s (HUD) entitlement programs in Palo Alto. The Department of Planning and Development Services is responsible for administering the City’s CDBG program. The City joined the HOME Consortium in 2015 and receives federal HOME Investment Partnership (HOME) funds through the County. Entitlement jurisdictions receive entitlement funding (i.e., non-competitive, formula funds) from HUD. HUD requires the City to submit a five-year Consolidated Plan and Annual Action Plan to HUD listing priorities and strategies for the use of its federal funds. The Consolidated Plan helps local jurisdictions to assess their affordable housing and community development needs and market conditions. As a part of the Consolidated Plan process for 2020-2025, the City collaborated with the County of Santa Clara (County) as the Urban County (representing the cities of Campbell, Los Altos, Los Altos Hills, Los Gatos, Monte Sereno, Morgan Hill, and Saratoga); the cities of Cupertino, Gilroy, Mountain View, Sunnyvale, San José, and Santa Clara; and the Santa Clara County Housing Authority (SCCHA) to identify and prioritize housing and community development needs across the region, and to develop strategies to meet those needs. The FY 2023-24 Annual Action Plan represents the fourth year of CDBG funding of the 2020-2025 Consolidated Plan. Consolidated Plan Public Contact Information Clare Campbell, Manager of Long Range Planning City of Palo Alto Department of Planning and Development Services 250 Hamilton Avenue, 5th Floor Palo Alto, CA 94301 E-mail: clare.campbell@cityofpaloalto.org Phone: (650) 617-3191 Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 14 Packet Pg. 101 of 259 Page | 7 AP-10 Consultation - 91.100, 91.110, 91.200(b), 91.300(b), 91.215(l) and 91.315(I) Introduction The Action Plan is a one-year plan which describes the eligible programs, projects, and activities to be undertaken with funds expected during FY 2023-24 and their relationship to the priority housing, homeless, and community development needs outlined in the 2020-25 Consolidated Plan. Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health, and service agencies (91.215(I)). During Fiscal Year 2023-24, the City will continue to work with non-profit organizations to provide programs and services for low-income households; private industry, including financial and housing development groups, to encourage the development of affordable housing opportunities regionally and within the City; and other local jurisdictions, including the County of Santa Clara, in carrying out and monitoring regional projects in a coordinated and cost-effective manner. The City will provide technical assistance to the public service agencies it funds with CDBG dollars and will continue to attend the Regional CDBG/Housing Coordinators meetings. Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness. The Santa Clara County Office of Supportive Housing is the administrator of the regional Continuum of Care (CoC). The City’s Office of Human Services Manager is in contact with the Santa Clara County Office of Supportive Housing and Destination Home regarding issues of homelessness in the community. The Santa Clara County CoC is a group comprising of stakeholders throughout the County, including governmental agencies, homeless service and shelter providers, homeless population, housing advocates, affordable housing developers, and various private parties, including businesses and foundations. City staff continues to attend regular CDBG/housing coordinator meeting. Members of the CoC meet monthly to plan CoC programs, identify gaps in homeless services, establish funding priorities, and pursue a systematic approach to addressing homelessness. The CoC is governed by the CoC Board, which takes a systems-change approach to preventing and ending homelessness. This same CoC Board is comprised of the same individuals who serve on the Destination: Home (Destination Home) Leadership Board. Destination Home is a public-private partnership that is committed to collective impact strategies to end chronic homelessness. Regional efforts of the CoC include the development of The Community Plan to End Homelessness, which identifies strategies to address the needs of people experiencing homelessness in the County, including chronically homeless individuals and families, families with children, veterans, and unaccompanied youth. The plan also addresses the needs of persons at risk of homelessness. The new community plan to end homelessness can be viewed at https://destinationhomesv.org/community-plan. Also, during the development of the 2020-25 Consolidated Plan, the City consulted both the CoC and County Office of Supportive Housing for their expertise and experience in identifying community needs. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 15 Packet Pg. 102 of 259 Page | 8 Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards and evaluate outcomes, and develop funding, policies, and procedures for the administration of HMIS. The City is not an ESG entitlement jurisdiction and therefore does not receive ESG funds. However, the City does administer federal grant programs that help homeless and low-income families in Santa Clara County. The City also helps fund and conduct the Point in Time (PIT) count, the biennial regional collaborative effort to count and survey people experiencing homelessness. The data from the County of Santa Clara PIT count is used to plan, fund, and implement actions for reducing chronic homelessness and circumstances that bring about homelessness. In 2023 the PIT count was conducted on January 26. The Santa Clara County Office of Supportive Services takes the role of Homeless Management Information System (HMIS) administration. The County, and its consultant Bitfocus, work jointly to operate and oversee HMIS. Both software and HMIS system administration are now provided by Bitfocus. Funding for HMIS in Santa Clara County comes from HUD, the County of Santa Clara, and the City of San Jose. The County’s HMIS is used by many City service providers across the region to record information and report outcomes. Describe Agencies, groups, organizations, and others who participated in the Consolidated Planning process and describe the jurisdictions consultations with housing, social service agencies and other entities Table 3: Agencies, Groups, and Organizations Who Participated 1 Agency/Group/Organization Boys and Girls Clubs of Silicon Valley Agency/Group/Organization Type Services-Children What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Santa Clara focus group meeting on 11/7/19 as part of the 2020-25 Consolidated Plan process. 2 Agency/Group/Organization Healthier Kids Foundation Santa Clara County Agency/Group/Organization Type Services-Children What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Santa Clara focus group meeting on 11/7/19 as part of the 2020-25 Consolidated Plan process Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 16 Packet Pg. 103 of 259 Page | 9 3 Agency/Group/Organization Community Services Agency Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended stakeholder consultation conference call on 11/15/19 as part of the 2020-25 Consolidated Plan process 4 Agency/Group/Organization San Jose Conservation Corps Charter Agency/Group/Organization Type Services-Education What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Gilroy focus group meeting on 11/18/19 as part of the 2020-25 Consolidated Plan process 5 Agency/Group/Organization CommUniverCity San Jose Agency/Group/Organization Type Services-Education What section of the Plan was addressed by Consultation? Needs assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended stakeholder consultation conference call on 11/25/19 and regional forum meeting in San Jose on 11/20/19 as part of the 2020-25 Consolidated Plan process. 6 Agency/Group/Organization The Health Trust Agency/Group/Organization Type Services-Persons with Disabilities Services-Persons with HIV/AIDS Services-Health What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended stakeholder consultation on 11/21/19 as part of the 2020-25 Consolidated Plan process Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 17 Packet Pg. 104 of 259 Page | 10 7 Agency/Group/Organization Rebuilding Together, Silicon Valley Agency/Group/Organization Type Housing What section of the Plan was addressed by Consultation? Strategic plan and needs assessment How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended stakeholder consultation conference call on 11/21/19 and San Jose regional forum on 11/20/19 as part of the 2020-25 Consolidated Plan process 8 Agency/Group/Organization City of Cupertino Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation? Needs assessment and strategic plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency was contacted for consultation as a partner in addressing the needs of the County as part of the 2020-25 Consolidated Plan process 9 Agency/Group/Organization City of Gilroy Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation? Needs assessment and strategic plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency was consulted and provided emailed feedback as part of the 2020-25 Consolidated Plan process 10 Agency/Group/Organization City of Mountain View Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation? Needs assessment and strategic plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended regional forum meeting at Palo Alto on 11/7/19 as part of the 2020-25 Consolidated Plan process Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 18 Packet Pg. 105 of 259 Page | 11 11 Agency/Group/Organization Bill Wilson Center Agency/Group/Organization Type Services-Children What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Santa Clara focus group meeting on 11/7/19, community meetings on 11/4/19 at Morgan Hill and 11/20/19 at Roosevelt as part of the 2020-25 Consolidated Plan process 12 Agency/Group/Organization Heart of the Valley Agency/Group/Organization Type Services-Elderly Persons What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency was consulted through interview questions. Agency provided emailed feedback as part of the 2020-25 Consolidated Plan process 13 Agency/Group/Organization City of San Jose Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation? Needs assessment and strategic plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency was contacted for consultation as a partner in addressing the needs of the County as part of the 2020-25 Consolidated Plan process 14 Agency/Group/Organization City of Morgan Hill Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation? Needs assessment and strategic plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended regional forum meeting at Morgan Hill on 11/4/19 as part of the 2020-25 Consolidated Plan process Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 19 Packet Pg. 106 of 259 Page | 12 15 Agency/Group/Organization City of Sunnyvale Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation? Needs assessment and strategic plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended regional forum meeting at Palo Alto on 11/7/19 and provided emailed feedback as part of the 2020-25 Consolidated Plan process 16 Agency/Group/Organization Servant Partners Agency/Group/Organization Type Neighborhood Organization Neighborhood Organization What section of the Plan was addressed by Consultation? Needs Assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Attended community meeting on 11/13/19 at Hillview library as part of the 2020-25 Consolidated Plan process 17 Agency/Group/Organization Senior Adults Legal Assistance (SALA) Agency/Group/Organization Type Service-Fair Housing Legal What section of the Plan was addressed by Consultation? Needs assessment and strategic plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended Palo Alto and San Jose public engagement meeting on 11/17/19 and 11/19/19, regional forum meeting on 11/4/19 at Morgan Hill and 11/7/19 at Palo Alto as part of the 2020-25 Consolidated Plan process Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 20 Packet Pg. 107 of 259 Page | 13 18 Agency/Group/Organization HomeFirst Agency/Group/Organization Type Services-homeless What section of the Plan was addressed by Consultation? Needs assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended regional forum meeting at Morgan Hill on 11/4/19 as part of the 2020-25 Consolidated Plan process 19 Agency/Group/Organization Santa Clara County Office of Supportive Housing Agency/Group/Organization Type Other government - County Continuum of Care What section of the Plan was addressed by Consultation? Needs assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended regional forum meeting at Morgan Hill on 11/4/19 and at Palo Alto on 11/7/19 as part of the 2020-25 Consolidated Plan process 20 Agency/Group/Organization City of Santa Clara Agency/Group/Organization Type Other government - Local What section of the Plan was addressed by Consultation? Needs assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended regional forum meeting at Morgan Hill on 11/4/19 and provided emailed feedback as part of the 2020-25 Consolidated Plan process 21 Agency/Group/Organization Vista Center for the Blind and Visually Impaired Agency/Group/Organization Type Services-Persons with Disabilities What section of the Plan was addressed by Consultation? Needs assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for Agency attended stakeholder consultation on 12/9/19 as part of the 2020-25 Consolidated Plan process Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 21 Packet Pg. 108 of 259 Page | 14 22 Agency/Group/Organization Destination: Home Agency/Group/Organization Type Services-homeless What section of the Plan was addressed by Consultation? Needs assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended stakeholder consultation on 11/11/19 as part of the 2020-25 Consolidated Plan process 23 Agency/Group/Organization Community Solutions Agency/Group/Organization Type Services-Victims of Domestic Violence What section of the Plan was addressed by Consultation? Needs assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended the AFH and ConPlan joint meeting on 12/11/19 at the Gilroy Council Chambers as part of the 2020-25 Plan process 24 Agency/Group/Organization St Mary Parish Agency/Group/Organization Type Neighborhood Organization Neighborhood Organization What section of the Plan was addressed by Consultation? Needs assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency attended the AFH and ConPlan joint meeting on 12/11/19 at the Gilroy Council Chambers as part of the 2020- Plan process 25 Agency/Group/Organization Community and Neighborhood Revitalization Committee - Gilroy Agency/Group/Organization Type Community Organization What section of the Plan was addressed by Consultation? Needs assessment and Strategic Plan How was the Agency/Group/Organization consulted and what are the anticipated outcomes of the consultation or areas for improved coordination? Agency co- meeting on 12/11/18 at the Gilroy Chambers as part of the 2020- Plan process Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 22 Packet Pg. 109 of 259 Page | 15 Identify any Agency Types not consulted and provide rationale for not consulting Not applicable. Other local/regional/state/federal planning efforts considered when preparing the Plan Table 4: Other Local / Regional / Federal Planning Efforts Continuum of Care Regional Continuum of Care Council homelessness. Housing Element (2023-2031) process, and strategies to alleviate such barriers. 2019&2020 STD/HIV Annual Report HIV Planning Council for Prevention and Care County HIV surveillance data. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 23 Packet Pg. 110 of 259 Page | 16 SCCHA Moving to Work Annual Plan Housing Authority pertaining to public housing and vouchers. Need Plan for San Francisco Bay Area Area Governments the County and all of the Bay Area. This effort aligns with the Strategic Plan's goal to assist in the creation and preservation of affordable housing. End Homelessness in Santa Clara is a five-year plan to guide governmental actors, nonprofits, and other community members as they make decisions about funding, programs, priorities and needs. This effort aligns with the Strategic Plan's goal to support activities to end homelessness Infrastructure: Catching Up, Keeping Up, and Moving Ahead Infrastructure Blue Ribbon Plan. Accessibility Summary maintenance and replace, as well as identifies potential sources of funding. This effort aligns with the Strategic Plan's goal to support activities that strengthen neighborhoods through the provision of community services and public improvements Comprehensive Plan (2030) development in Palo Alto. It provides a guide for long- term choices and goals for the City future. This effort aligns with the Strategic Plan's goal to support activities that strengthen neighborhoods through the provision of community services and public improvements Narrative Please see above. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 24 Packet Pg. 111 of 259 Page | 17 AP-12 Citizen Participation - 91.105, 91.115, 91.200(c) and 91.300(c) Summary of citizen participation process/Efforts made to broaden citizen participation. Summarize citizen participation process and how it impacted goal-setting The Planning and Development Services Department is the lead agency for overseeing the development of the Consolidated Plan and Action Plan. Per the City’s adopted Citizen Participation Plan, the City is to allow a 30-day public review and comment period for the Action Plan. The City has published notifications of upcoming public hearings and the 30-day public review comment period in the local newspaper of general circulation, on its CDBG webpage and via email blasts. The City held hold two advertised public hearings on February 9, 2023, and May 1, 2023. The Action Plan 30-day public review period was from March 28, 2023, through April 27, 2023. The City did not receive any public comments to date. Citizen Participation Outreach Table 5: Citizen Participation Outreach Outreach Outreach response comments received comments not accepted/reason Public Hearing Nontargeted/ broad community Relations Commission met on Feb 9, 2023 to discuss: • FY2023-24 Applications • Annual allocation • Engagement Summary. The HRC over WeeCare application. broad community met on May 1, 2023 to discuss: • FY2023-24 Projects, annual allocation • Draft AAP approval Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 25 Packet Pg. 112 of 259 Page | 18 Mode of Outreach Target of Outreach Summary of response Summary of comments received Summary of comments not accepted/reason Newspaper Ad Nontargeted/ broad community Relations Commission Public Hearing and Public Comment Period on the Draft FY2023-24 AAP and FY2023-24 CDBG Funding Allocations was published in the Daily Post on January 25, 2023. received public comments received. community Public Hearing emailed Feb 3, 2023 to approximately received comments received from interested stakeholders community https://www.cityof received broad community Hearing and Public Comment Period on the Draft AAP was published in the Daily Post on March 27, 2023 received Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 26 Packet Pg. 113 of 259 Page | 19 Email Blast Nontargeted/ broad community Council Public Hearing was published March 27, 2023) emailed to approximately comments received community https://www.cityof paloalto.org/CDBG received Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 27 Packet Pg. 114 of 259 Page | 20 Expected Resources AP-15 Expected Resources - 91.420(b), 91.220(c)(1,2) Introduction In FY2023-24, the City will allocate $614,242 to eligible activities that address the needs identified in the Consolidated Plan. It should be noted that while the HUD CDBG allocations are critical, the allocations are not sufficient to overcome barriers and address all needs that low- income individuals and families face in attaining self- sufficiency. The City will continue to leverage additional resources as described below to provide support and services to the populations in need within the community. The following section discusses the anticipated resources available for community development activities during the next remaining years of the City’s 5-Year Consolidated Plan. Anticipated Resources Table 6: Expected Resources FY2023-24 – Priority Table Funds Funds Description Allocation: Income: Year: Total: Public – Federal CDGB Planning/ Economic Development / Housing Public Improvement / Public Services $514,242 $100,000 $0 $614,242 the 2020-2025 ConPlan. CDBG funds will be used for the preservation of owner-occupied homes, ADA street improvements, and public services that benefit low income and special needs Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 28 Packet Pg. 115 of 259 Page | 21 Explain how federal funds will leverage those additional resources (private, state, and local funds), including a description of how matching requirements will be satisfied Entitlement Funds Leverage, in the context of the CDBG and HOME Investment Partnerships Program (HOME), means bringing other local, state, and federal financial resources to maximize the reach and impact of the City’s HUD Programs. HUD, like many other federal agencies, encourages the recipients of federal monies to demonstrate that efforts are being made to strategically leverage additional funds in order to achieve greater results. The City joined the Santa Clara County's HOME Consortium in 2015 and does not receive federal HOME funds on an entitlement basis from HUD. The HOME Consortia consists of the cities of Cupertino, Gilroy, Palo Alto, and the Urban County. HOME funds can be used to fund eligible affordable housing projects for acquisition, construction, and rehabilitation. Starting in FY 2015- 16 developers of affordable housing projects were eligible to competitively apply through an annual RFP process directly to the County for HOME funds to help subsidize affordable housing projects in Palo Alto. Applications are directly submitted through the County's request for proposal process for available HOME funds. Certain nonprofit organizations known as Community Housing Development Organizations (CHDOs) may also apply for funding from California Department of Housing and Community Development (HCD) for housing projects located within Palo Alto. The City has only received one HOME grant from 1992 HOME funding for the Barker Hotel project. Proceeds from HOME loan repayments are deposited into a HOME Program Income Fund and used in accordance with the HOME program regulations. In addition, the County will only fund a project that has the local support of the City. If the City receives HOME dollars from its participation in the HOME consortium, the required 25% matching funds will be provided from the City’s Affordable Housing Fund, which is comprised of two sub-funds: the Commercial Housing Fund and the Residential Housing Fund. To date, no projects within the City have been funded through the HOME Consortium. Moving forward, the City plans to increase outreach to developers in the City to provide additional information on the HOME Consortium and available funding. Other State and Federal Grant Programs In addition to the CDBG entitlement dollars, the federal government has several other funding programs for community development and affordable housing activities. These include Section 8 Housing Choice Voucher Program, Section 202, Section 811, the Federal Home Loan Bank Affordable Housing Program (AHP), and others. It should be noted that in most cases, the City would not be the applicant for these funding sources as many of these programs offer assistance to affordable housing developers rather than local jurisdictions. In September 2022, multiple State bills were signed, including SB 6 (Middle-Class Housing Act) and AB 2011 to advance housing development progress. These two bills streamline the regulatory process and ensure that workers building homes are being paid a fair wage. The bill helps generate new housing units plus general thousands of jobs. The California Housing Accelerator provided funding for shovel-ready projects in 2022 whose financing was stalled because of the difficulty in receiving tax credits. The City will continue to track and look for opportunities to leverage State resources for the City. Local Housing and Community Development Sources. Other local resources that support housing and community development programs include: • Palo Alto Commercial Housing Fund, provides assistance for the development of below market rate (BMR) housing units which are, in part, funded by mitigation fees obtained from commercial and industrial Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 29 Packet Pg. 116 of 259 Page | 22 development projects. • ADA coordinator and city-wide ADA capital improvement listing. • Housing Element Update provides the city with detailed housing priorities and needs. • Rebuilding Together Peninsula assists 5-7 low-to moderate income homeowners with home improvements. If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan The City has no surplus public land. Discussion Please see information provided in previous sections. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 30 Packet Pg. 117 of 259 Page | 23 Annual Goals and Objectives AP-20 Annual Goals and Objectives - 91.420, 91.220(c)(3) and(e) Goals Summary Information – FY2023-24 Table 7: Goals Summary Goal Name Start End Category Area Fund Affordable Housing Housing e Housing $73,585 Housing Rehabilitated: 5 Household Housing Units $23,636 activities other than Low/Moderate Income Housing Benefit: 350 Persons Assisted Neighborhoods Special Needs Non-Housing Community Development Services and Public Improvement s $262,173 activities other than Low/Moderate Income Housing Benefit: 1,711 Persons Assisted Community Development $18,000 activities other than Low/ Moderate Income Housing Benefit: 177 Persons Assisted Development Community Development Developmen t $114,000 retained: 19 Jobs Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 31 Packet Pg. 118 of 259 Page | 24 Goal Descriptions 1 Goal Name Affordable Housing Goal Description Assist in the creation and preservation of affordable housing for low-income and special needs households. 2 Goal Name Homelessness Goal Description Support activities to prevent and end homelessness, such as funding affordable housing opportunities, resource centers for homeless individuals, and support tenants of single-room occupancy units. 3 Goal Name Strengthen Neighborhoods Goal Description Provide community services and public improvements to benefit low-income and special needs households. This includes assisting those with disabilities to transition from unstable housing to permanent housing, supporting residents of long-term care facilities, and supporting individuals experiencing domestic violence. 4 Goal Name Fair Housing Goal Description Promote fair housing choice by funding fair housing organizations to provide fair housing services, such as education, tenant-landlord mediation, and testing. 5 Goal Name Economic Development Goal Description Support economic development activities that promote employment growth and help lower-income people secure and maintain jobs. This includes funding nonprofits working toward developing the skills of low-income and homeless individuals. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 32 Packet Pg. 119 of 259 Page | 25 AP-35 Projects - 91.420, 91.220(d) Introduction The Consolidated Plan goals below represent high-priority needs for the City of Palo Alto (City) and serve as the basis for the strategic actions the City will use to meet these needs. The goals, listed in no particular order, are: 1. Assist in the creation and preservation of affordable housing for low-income and special needs households. 2. Support activities to end homelessness. 3. Support activities that strengthen neighborhoods through the provision of community services and public improvements to benefit low-income and special-needs households. 4. Promote fair housing choice. 5. Expand economic opportunities for low-income households. Table 8: Project Information No. Project Name 1. Catholic Charities of Santa Clara County – Long-Term Care Ombudsman 4. WeeCare – Assist Daycare Providers Rebuilding Together Peninsula – Safe at Home ADA curb cuts Describe the reasons for allocation priorities and any obstacles to addressing underserved needs The City awards CDBG funding to projects and programs that will primarily benefit low-income, homeless, and special-needs households. The City operates on a two-year grant funding cycle for CDBG public service grants and a one-year cycle for CDBG capital housing rehabilitation and public facilities and improvement projects. Projects are only considered for funding within the Consolidated Plan period if they address the goals discussed above. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 33 Packet Pg. 120 of 259 Page | 26 AP-38 Project Summary Project Summary Information Citywide Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements Funding CDBG: $10,000 Description Long-Term Care Ombudsman Program. Eligible Activity (Matrix Code):05A. CDBG National Objective: 570.208(a)(2). CDBG Citation:570.201(e). Recipient Type: LMC Target Date 6/30/2024 Estimate the number and type of families that will benefit from the proposed The program will provide advocacy and complaint investigation for 50 elderly residents of long-term care facilities in Palo Alto. Location Description Planned Activities Regular contact with Palo Alto Residential Care Facilities to observe and monitor conditions of care. 2 Project Name LifeMoves - Opportunity Services Center and Hotel De Zink (HDZ): Citywide Goals Supported Homelessness Needs Addressed Homelessness Funding CDBG: $23,636 Description Opportunity Services Center Eligible Activity (Matrix Code):03TCDBG National Objective: 570.208(a)(2). CDBG Citation:570.201(e). Recipient Type: LMC Target Date Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 34 Packet Pg. 121 of 259 Page | 27 Estimate the number and type of families that will benefit from the proposed activities 350 unduplicated individuals (homeless and/or very low-income individuals per year) will receive case management services, including assistance with housing/job searches, referrals and mentoring at the Opportunity Services Center and Hotel De Zink. Location Description 33 Encina Way, Palo Alto, CA 94301 Planned Activities Case management services will be provided to Opportunity Services Center and Hotel De Zink clients in locating housing and/or employment 3 Project Name Alta Housing Target Area Residents of Barker Hotel (25 units) and Alma Place (106 units) Goals Supported Homelessness Needs Addressed Homelessness Funding CDBG: $14,000 Description SRO Resident Support Program. Eligible Activity (Matrix Code):05OCDBG National Objective:570.208(a)(2). CDBG Citation:570.201(e). Recipient Type: LMC Target Date 6/30/2024 Estimate the number and type of families that will benefit from the proposed activities Case management and support counseling services will be provided to residents of Barker Hotel and Alma Place Location Description 439 Emerson Street, Palo Alto, CA 94301 Planned Activities Alta Housing engages a service coordinator to provide 40 hours of weekly services to provide case management and support counseling services to residents at Alma Place and Barker Hotel to help them maintain housing stability. Activities include financial counseling, health maintenance, information and referral problem-solving, employment assistance, crisis intervention, and case management. Both Alma Place and Barker Hotel are single-room occupancy facilities. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 35 Packet Pg. 122 of 259 Page | 28 4 Project Name Silicon Valley Independent Living Center: Housing and Emergency Target Area Citywide Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements Funding CDBG: $16,500 Description Housing and Emergency Housing Services. Eligible Activity (Matrix Code):05B. CDBG National Objective:570.208(a)(2). CDBG Citation:570.201(e). Recipient Type: LMC Target Date 6/30/2024 Estimate the number and type of families that will benefit from the proposed activities 115 unduplicated Palo Alto residents will benefit from one-on-one housing assistance. Location Description Citywide Planned Activities Silicon Valley Independent Living Center provides assistance for individuals with disabilities and their families to transition from homelessness, health care facilities, unstable or temporary housing to permanent affordable, accessible, integrated housing with emergency assistance, security deposits, rent, information, and referral, and other basic essentials. 5 Project Name Project Sentinel - Fair Housing Services Target Area Citywide Goals Supported Fair Housing Needs Addressed Fair Housing Funding CDBG: $18,000 Description Fair Housing Services. Eligible Activity (Matrix Code):21D. CDBG National Objective:570.208(a)(2). CDBG Citation: 570.206(c). Recipient Type: LMC Target Date 6/30/2024 Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 36 Packet Pg. 123 of 259 Page | 29 Estimate the number and type of families that will benefit from the proposed activities 177 unduplicated individuals will be provided with fair housing services of complaint counseling, investigation, and where appropriate enforcement referral. Location Description Citywide Planned Activities Project Sentinel will provide community education and outreach regarding fair housing law and practices, investigation, counseling, and legal referral for victims of housing discrimination, and analyses for City staff and officials regarding fair housing practices. California and federal fair housing laws assure specific protected classes the right to be treated in terms of their individual merits and qualifications in seeking housing. Unfortunately, some people are not aware of the law or their 6 Project Name Peninsula Healthcare Connection Target Area Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements Funding CDBG: $10,000 Description PHC will deliver Harm Reduction materials to referral families. Target Date 6/30/2024 Estimate the number and type of families that will benefit from the proposed 400 referred households Location Description City-wide Planned Activities Harm Reduction materials will be delivered to referral families. Materials include: substance use treatment recommendations such as rehab center options, AA/NA meeting referrals, harm reduction kits designed for safe needle use and storage, and basic needs resources, such as Narcan. This is in response to the prevalent use of controlled Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 37 Packet Pg. 124 of 259 Page | 30 7 Project Name Planning and Administration Target Area Citywide Goals Supported Affordable Housing, Homelessness, Strengthen Neighborhoods, Fair Housing, Economic Development Needs Addressed Affordable Housing, Homelessness, Community Services and Public Improvements, Fair Housing, Economic Development Funding $122,848 Description Planning and Administration: CDBG Citation: 570.206(a) Target Date 6/30/2024 Estimate the number and type of families that will benefit from the proposed The City will provide general administrative support to the CDBG program. Location Description Citywide Planned Activities Administer the Administrative costs for the overall management, coordination, and evaluation of the CDBG program, and the project delivery costs associated with bringing projects to completion. 8 Project Name WeeCare Target Area Citywide Goals Supported Economic Development Needs Addressed Economic Development Funding CDBG: $114,000 Description WeeCare, a microenterprise business, will provide business improvement services to the City’s daycares. Eligible Activity (Matrix Code): 18C.CDBG National Objective: 570.483(b)(2)(iv). CDBG Citation: 570.208(a)(2)(iii). Recipient Type: LMCMC Target Date 6/30/2023 Estimate the number and type of families that will benefit from the proposed 19 daycare businesses will benefit from this project. Plus, new full-time jobs will be created by WeeCare. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 38 Packet Pg. 125 of 259 Page | 31 Location Description Citywide Planned Activities WeeCare intends to work with FCCH providers in Palo Alto who are already on the wait list for the BOOST program. These providers will receive staff training-learning best practices on how to grow and sustain their organization and how to better support LMI families they serve. Funds are requested will pay for WeeCare staff salaries for training providers on how to use Child Management System (CCMS) software. CCMS was developed for providers to create work plans, goals, capacity, and revenue empowering them to reach service and operations goals. 9 Project Name Rebuilding Together Peninsula – Safe at Home Target Area Citywide Goals Supported Affordable Housing Needs Addressed Affordable Housing Funding CDBG: $73,585 Description Preserves affordable housing by transforming homes through critical repairs and accessibility modifications at no cost to the service recipient. The majority of the low-income homeowners served will be elderly seniors and/or people with disabilities, who are physically and financially unable to maintain safe living conditions for themselves and their families. 24 CFR 570.202(a)(1) or 42 USC 5305(a)(4) LMH Target Date 6/30/2024 Estimate the number and type of families that will benefit from the proposed activities 5 LMI households will benefit from home improvements. Location Description Citywide Planned Activities Provide home safety repairs, mobility, and accessibility improvements for low-income households in Palo Alto, with the primary consideration being the correction of safety hazards. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 39 Packet Pg. 126 of 259 Page | 32 10 Project Name ADA curb cut-City of Palo Alto Target Area Citywide Goals Supported Strengthen Neighborhoods Needs Addressed Community Services and Public Improvements Funding CDBG: $211,673 Description The City intends to fund a major curb ramp improvement project that will bring an estimated 70 curb ramps up to current ADA accessibility standards. 03K, 24 CFR 570.201(c) or 42 USC 5305(a)(2) LMJFI Target Date 10/30/2024 Estimate the number and type of families that will benefit from the proposed activities 2,090 Location Description Street intersection locations TBD Planned Activities Provide safe ADA-accessible curb-cut intersections. The city will bid and award the project competitively. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 40 Packet Pg. 127 of 259 Page | 33 AP-50 Geographic Distribution - 91.420, 91.220(f) Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed The City allocates CDBG funds to benefit low-moderate income (LMI) households and does not have target areas. Instead, the City focuses its services and capital improvements across the City as a whole. Geographic Distribution Table 9: Geographic Distribution Rationale for the priorities for allocating investments geographically Not applicable. Discussion Please see discussion above. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 41 Packet Pg. 128 of 259 Page | 34 AP-75 Barriers to affordable housing -91.420, 91.220(j) Introduction The incorporated and unincorporated jurisdictions within the County face barriers to affordable housing that are common throughout the Bay Area. High on the list of market barriers is the lack of developable land, which increases the cost of available lands and increases housing development costs. Local opposition is another common obstacle as many neighbors have strong reactions to infill and affordable housing developments. Their opposition is often based on misconceptions, such as a perceived increase in crime; erosion of property values; increase in parking and traffic congestion; and overwhelmed schools. However, to ensure a healthy economy, the region must focus on strategies and investments that provide housing for much of the region’s workforce – for example, salesclerks, secretaries, waiters, baristas, teachers, and health service workers – whose incomes significantly limit their housing choices. It should be noted that in a constrained housing supply market, when housing developments produce housing that is relatively affordable, higher-income buyers and renters generally outbid lower-income households. A home’s final sale or rental price will typically exceed the projected sales or rental costs. Public subsidies are often needed to guarantee affordable homes for low- and moderate-income households. Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment Palo Alto is addressing the barriers to affordable housing through: • Density Bonus Ordinance: The City recently updated its Density Bonus ordinance which lowered the eligibility requirements to qualify for a higher density bonus percentage up to 80% as well as providing more exceptions to applicable zoning and development standards. One significant update is if a 100% affordable development is located within a half a mile of a major transit stop, the City cannot impose any density limits and entitled to a maximum height increase of three additional stories or 33 feet. • Below Market Rate (BMR) Housing Program: Established in 1974, the City’s BMR requires developers to provide a certain percentage of units as BMR in every approved project of three units or more. The program originally required that for developments on sites of less than five acres, the developer must provide 15 percent of the total housing units as BMR housing units. If the site was larger than five acres, the developer was required to provide 20 percent of the units as BMR housing. The City of Palo Alto has historically used in- lieu fees and development impact fees charged on new, market-rate housing and/or commercial development to finance 100% affordable developments. The City updated its Commercial and Residential Impact Fee Nexus Studies and adopted two ordinances to make changes to its BMR program, and adopted a new fee structure. The ordinances became effective on June 19, 2017. • Fair Housing: The City provides funding to Project Sentinel. Project Sentinel provides expertise in fair housing law and tenant-landlord disputes. Services include information, referrals, community outreach, and education. In addition, Project Sentinel resolves fair housing complaints via investigation, mediation, education and outreach to both property owners and tenants about fair housing policies. • Housing Incentive Program (HIP): Effective May 2, 2019, the HIP was enacted as an alternative to the State Density Bonus law and provides development incentives including no housing density restrictions, increased Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 42 Packet Pg. 129 of 259 Page | 35 floor area ratios and increased lot coverage. The HIP is available to specific areas of the City where higher density development is encouraged. • Affordable Housing (AH) Combining District: In 2018, the City Council adopted the Affordable Housing Combining District to provide flexible development standards beyond the State Density Bonus Law to allow 100% affordable housing projects located in a commercial zoned area. • Workforce Housing (WH) Combining District: The City Council also adopted in 2018 the Workforce Housing Combining District to encourage the development of housing within half-mile of major fixed rail transit by modifying flexible development standards for the public facilities (PF) zoning district. Discussion Please see above. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 43 Packet Pg. 130 of 259 Page | 36 AP-85 Other Actions - 91.420, 91.220(k) Introduction This section discusses the City’s efforts in addressing the underserved needs, expanding, and preserving affordable housing, reducing lead-based paint hazards, and developing institutional structure for delivering housing and community development activities. Actions planned to address obstacles to meeting underserved needs The diminishing amount of funds continues to be the most significant obstacle to addressing the needs of underserved populations. To address this, the City supplements its CDBG funding with other resources and funds, such as: • In FY2020-21, the City’s Human Service Resource Allocation Process (HSRAP) provided $549,306 from the General Fund in support of human services. The HSRAP funds, in conjunction with the CDBG public service funds, are distributed to local non-profit agencies. Additionally, from July 2021-2022, approximately $37,000 was provided to nonprofit organizations serving Palo Alto residents with short-term and/or urgent funding to address emergency, critical or emerging human services needs through the Emerging Needs Fund. • The Palo Alto Commercial Housing Fund is funded with mitigation fees provided under Palo Alto’s BMR housing program from developers of commercial and industrial projects and used to assist new housing development or the acquisition, rehabilitation, or the preservation of existing housing for affordable housing • The Palo Alto Residential Housing Fund is funded with mitigation fees provided under Palo Alto’s BMR housing program from residential developers and money from other miscellaneous sources, such as proceeds from the sale or lease of City property. The Residential Housing Fund is used to assist new housing development or the acquisition, rehabilitation, or the preservation of existing housing for affordable housing. • The City’s Below Market Rate Emergency Fund was authorized in 2002 to provide funding on an ongoing basis for loans to BMR owners for special assessment loans and for rehabilitation and preservation of the City’s stock of BMR ownership units. • HOME Program funds are available on an annual competitive basis through the State of California HOME program, and the County’s HOME Consortium. • The Housing Authority of the County of Santa Clara (HACSC) administers the federal Section 8 program countywide. The program provides rental subsidies and develops affordable housing for low-income households, seniors and persons with disabilities living within the County. • In 2022, the City funded Downtown Streets Team to reduce homelessness through a “work first” model. Downtown Streets Team uses its community connections to provide training and job opportunities to homeless people, specifically in the downtown area. Actions planned to foster and maintain affordable housing The City will foster and maintain affordable housing by continuing the following programs and ordinances: • A Business Tax was approved in late 2022 to fund affordable housing, public safety, homeless services, rail crossing safety, and general city services. • The Below Market Rate Emergency Fund, which provides funding on an ongoing basis for loans to BMR owners for special assessment loans and for rehabilitation and preservation of the City’s stock of BMR ownership units. • The Commercial Housing Fund and Residential Housing Fund are used to assist new housing development or the acquisition, rehabilitation, or the preservation of existing housing for affordable housing. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 44 Packet Pg. 131 of 259 Page | 37 • The Density Bonus Ordinance regulations allow for bonuses of 20 to 35 percent, depending on the amount and type of affordable housing provided. • The City’s participation in the County's HOME Consortium will allow developers of affordable housing projects to be eligible to competitively apply through an annual RFP process directly to the County for HOME funds to help subsidize affordable housing projects in Palo Alto, including acquisition, construction, and rehabilitation. Actions planned to reduce lead-based paint hazards The City’s housing and CDBG staff provides information and referral to property owners, developers, and non- profit organizations rehabilitating older housing about lead-based paint (LBP) hazards. Any house to be rehabilitated with City financial assistance is required to be inspected for the existence of LBP and LBP hazards. The City will provide financial assistance for the abatement of LBP hazards in units rehabilitated with City funding. The City also requires that contractors are trained and certified in an effort to decrease the risk of potential use of LBP in new units. All development and rehabilitation projects must be evaluated according to HUD’s Lead Safe Housing Rule 24 CFR Part 35. Actions planned to reduce the number of poverty-level families The City, in its continuing effort to reduce poverty, will prioritize funding agencies that provide direct assistance to the homeless and those in danger of becoming homeless. In FY 2023-2024, these programs will include the following: • LifeMoves provides basic necessities for persons who are homeless or at risk of becoming homeless. The Opportunity Services Center is a comprehensive, one-stop, multi-service, day drop-in center that provides critical services for homeless Palo Alto residents. Specifically, the facility provides showers, laundry, clothing, snacks, case management, and shelter/housing referral services. • Alta Housing provides counseling and supportive case management services for low-income residents of single- room occupancy facilities to help them maintain housing stability. Activities include financial counseling, health maintenance, information and referral, problem solving, employment assistance, crisis intervention, and case management. • WeeCare provides business services and best management practices for small daycare businesses in the City. Many of which provide childcare for LMI families. Actions planned to develop institutional structure The City is striving to improve intergovernmental and private sector cooperation to synergize efforts and resources and develop new revenues for community service needs and the production of affordable housing. Collaborative efforts include: • Regular meetings between entitlement jurisdictions at the CDBG Coordinators Meeting and Regional Housing Working Group. • Joint jurisdiction Request for Proposals and project review committees. • Coordination on project management for projects funded by multiple jurisdictions. • HOME Consortium meetings between member jurisdictions for affordable housing projects. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 45 Packet Pg. 132 of 259 Page | 38 Actions planned to enhance coordination between public and private housing and social service agencies The City benefits from a strong jurisdiction and region-wide network of housing and community development partners, such as the County and the Continuum of Care. To improve intergovernmental and private sector cooperation, the City will continue to participate with other local jurisdictions and developers in sharing information and resources. In addition to the actions listed above, the City will continue to coordinate with the City’s human services funding efforts to comprehensively address community needs. Discussion Please see discussions above. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 46 Packet Pg. 133 of 259 Page | 39 Program Specific Requirements AP-90 Program Specific Requirements - 91.420, 91.220(l)(1,2,4) Introduction The following provides additional information about the CDBG program income and program requirements. Community Development Block Grant Program (CDBG) Reference 24 CFR 91.220(l)(1) Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out. of the next program year and that has not yet been reprogrammed during the year to address the priority needs and specific objectives identified in use has not been included in a prior statement or plan Total Program Income: Other CDBG Requirements 1. The amount of urgent need activities 0 2. The estimated percentage of CDBG funds that will be used for activities that benefit persons of low and moderate income. Overall Benefit - A consecutive period of one, two or three years may be used to determine that a minimum overall benefit of 70% of CDBG funds is used to benefit persons of low and moderate income. 100 % Discussion Please see discussion above. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 47 Packet Pg. 134 of 259 APPENDIX A PUBLIC COMMENTS The City held two advertised public hearings on February 9, 2023, and May 1, 2023. The Draft FY2023-24 Annual Action Plan was circulated for public comments and review from March 28, 2023, through April 27, 2023. During the 30 days public comment and review period time, no comments were received. Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 48 Packet Pg. 135 of 259 APPENDIX B PUBLIC HEARING NOTIFICATIONS Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 49 Packet Pg. 136 of 259 Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 50 Packet Pg. 137 of 259 Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 51 Packet Pg. 138 of 259 PLACE HOLDER FOR AD PUBLISHED ON March 27, 2023 RE: City Council meeting on May 1, 2023 Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 52 Packet Pg. 139 of 259 APPENDIX C CDBG APPLICATION FORMS TO BE COMPLETED AND SIGNED AFTER AAP APPROVAL Item 10 Attachment A - FY2023- 24 Draft Palo Alto Annual Action Plan Item 10: Staff Report Pg. 53 Packet Pg. 140 of 259 *NOT YET APPROVED* 1 0160102_20230417_AY16 Resolution No. _______ Resolution of the City Council of the City of Palo Alto Approving The Use of Community Development Block Grant Funds for Fiscal Year 2023-2024 A. On May 1, 2020, the Palo Alto City Council approved and adopted a document entitled “Consolidated Plan” which identified and established the Palo Alto housing and non- housing community development needs, objectives and priorities for the period July 1, 2020, to June 30, 2025. B. The Fiscal Year 2023-2024 Annual Action Plan, the annual funding update to the Consolidated Plan, was subjected to public review and commentary during the period from March 28, 2023 through April 27, 2023. C. The potential uses of Community Development Block Grant (CDBG) funds were evaluated in light of the needs and objectives identified in the Consolidated Plan and reflected in the recommendations and comments of the Human Relations Commission Selection Committee, Human Relations Commission, and other interested citizens. D. Under the CDBG program, the highest priority is given to activities which will benefit persons with low and moderate incomes. E. The City Council and the Human Relations Commission have held publicly noticed public hearings on the proposed uses of the CDBG funds for Fiscal Year 2023-2024. F. CDBG funds allocated to the City for Fiscal Year 2023-2024 are proposed to implement the programs described in this resolution. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The uses of CDBG funds for Fiscal Year 2023-2024 are hereby approved and authorized for the following programs: Name of Program Amount management and counseling services to residents at Barker Hotel and $14,000 2. Catholic Charities of Santa Clara County – Long Term Care Ombudsman Program. Advocate for the rights of seniors and disabled residents in long term care facilities. $10,000 Item 10 Attachment B - FY2023-24 Draft CDBG Resolution Item 10: Staff Report Pg. 54 Packet Pg. 141 of 259 *NOT YET APPROVED* 2 0160102_20230417_AY16 3. LifeMoves – Opportunity Services Center. Provide case management services to Opportunity Services Center and Hotel De Zink clients in $23,636 Services. Provide case management services to low-income individuals $16,500 5. Project Sentinel – Fair Housing Services. Provide fair housing services including complaint community education $18,000 6. Peninsula Healthcare Connections – deliver Harm Reduction materials to referral families. $10,000 7. ADA curb cut-City of Palo Alto – major curb ramp improvement project that will bring many ramps up to current ADA accessibility standards. $211,673 8. WeeCare - childcare business improvement services. $114,000 9. Rebuilding Together Peninsula – Safe at Home. Provision of critical health and safety related home repair needs for low-income Palo Alto homeowners. $73,585 10. CDBG Program Planning and Administration. $122,848 $614,242 SECTION 2. The total amount set forth under Section 1 of this resolution represents the proposed allocation of $514,242, in CDBG funds from the United States Department of Housing and Urban Development (HUD) for Fiscal Year 2023-2024, and $100,000, in anticipated program income for Fiscal Year 2023-2024 from Palo Alto Housing Corporation. SECTION 3. The City staff is hereby authorized to submit the Fiscal Year 2023-2024 Annual Action Plan, update and appropriate funding to HUD for the Fiscal Year 2023-2024 CDBG funds, and such money shall be spent as set forth in this resolution. The Mayor, City Manager, and any other designated City staff or officials are hereby authorized to execute such application forms and any other necessary documents to secure these funds. The City Manager or designee is authorized to sign all necessary grant agreements with the program providers set forth in Section 1. SECTION 4. The funding amounts set forth in Section 1 of this resolution are based on final allocation amounts from the Federal Fiscal Year 2023-24 HUD appropriations; City Staff is authorized to adjust increasing or decreasing the funding amounts set forth herein as consistent with the adopted Citizen Participation Plan. Item 10 Attachment B - FY2023-24 Draft CDBG Resolution Item 10: Staff Report Pg. 55 Packet Pg. 142 of 259 *NOT YET APPROVED* 3 0160102_20230417_AY16 SECTION 5. The City Council hereby finds that the Fiscal Year 2023-2024 CDBG program authorized under Section 1 of this resolution is not a project under the California Environmental Quality Act (CEQA). However, the Council further authorizes and directs City staff to prepare certifications that may be required, under CEQA and the National Environmental Policy Act (NEPA), for each project under the Fiscal Year 2023-2024 CDBG program prior to the release of funds for any such project. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Planning and Development Services ____________________________ Director of Administrative Services CDBG Coordinator Item 10 Attachment B - FY2023-24 Draft CDBG Resolution Item 10: Staff Report Pg. 56 Packet Pg. 143 of 259 City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Planning and Development Services Meeting Date: May 1, 2023 Report #:2303-1080 TITLE PUBLIC HEARING / QUASI-JUDICIAL. 2147 Yale Street [22PLN-00374]: Denial of a Request for a Preliminary Parcel Map with Exceptions to Divide an Existing 5,770 Square Foot Parcel Into two Approximately 2,885 Square Foot Lots. Environmental Assessment: Exempt Pursuant to CEQA Guidelines 15270 and 15301. RECOMMENDATION It is recommended the City Council take the following action(s): 1. Deny the proposed project based on findings in Attachment C. EXECUTIVE SUMMARY The applicant requests approval of a preliminary parcel map with exceptions to subdivide one conforming property into two substandard lots. The property is zoned Two-Unit Multi-Family Residential with a Neighborhood Preservation Combining District, or RMD (NP). The existing development was constructed in 2010 with two detached single family homes in accordance with local zoning standards. The zoning regulations for this district permit a two-family development under single ownership. Based on this provision, the site cannot be converted into a condominium subdivision or the individual units sold separately. The current owners hold the property as a tenancy in common. This means the site is under shared ownership but restrictive agreements delineate which parties have access to each of the homes. Tenancy in common is an atypical ownership structure in Palo Alto but very common in San Francisco and some other jurisdictions. The applicant reports financing challenges associated with this type of ownership model and therefore seeks approval to split the property with one home on each lot that can be sold independently. Further, the applicant asserts the underlying lot configuration or tract map for this neighborhood created in the year 1891 shows there are two lots for this site and that the City’s approval of the project in 2007 (under address 586 College Avenue) was predicated on an error that the owner seeks to remedy with the subject application. Staff’s review of the administrative record finds the applicant’s reliance on the underlying tract map as justification Item 11 Item 11 Staff Report Item 11: Staff Report Pg. 1 Packet Pg. 144 of 259 to support the request is not valid based on the provisions of the state Subdivision Map Act and is not supported by California Supreme Court case law. Moreover, staff does not find any City errors associated with the project approved in 2007. BACKGROUND Item 11 Item 11 Staff Report Item 11: Staff Report Pg. 2 Packet Pg. 145 of 259 The applicant also asserts that the subdivision should be allowed due to the existence of an 1891 map showing the property divided into two parcels. Item 11 Item 11 Staff Report Item 11: Staff Report Pg. 3 Packet Pg. 146 of 259 required findings. However, as discussed below, the inability to make all required findings requires the project to be denied. The summary discussion of the PTC’s deliberation is available online: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/planning-and-transportation-commission/2023/ptc-2.22.2023-summary- minutes.pdf#page=2. ANALYSIS Item 11 Item 11 Staff Report Item 11: Staff Report Pg. 4 Packet Pg. 147 of 259 Attachment C includes draft findings for the City Council’s consideration. The applicant has also provided information in support of the required findings, which can be found in Attachment G. POLICY IMPLICATIONS STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS Item 11 Item 11 Staff Report Item 11: Staff Report Pg. 5 Packet Pg. 148 of 259 Attachment B: Zoning Comparison Table APPROVED BY: Item 11 Item 11 Staff Report Item 11: Staff Report Pg. 6 Packet Pg. 149 of 259 137-01-125 137-01-104 137-01-102 137-01-103 137-01-034 137-01-035137-01-146 137-01-147 137-01-007 137-01-049 137-01-031 137-01-042 137-01-039 137-01-043 137-01-044 137-01-048 137-01-047 137-01-046 137-01-045 137-01-134 137-01-133 137-36-001 137-36-002 137-36-003 137-36-004 137-36-005 137-36-006 137-36-007 137-01-065 137-36-008 137-01-036 137-01-101 137-01-037 137-01-038 COLLEGE AVENUETREET STAUNTON COURTOXFORD AVENU 560 560 552 552 550 550 2172 2172 5 599 2 2251 110 2130 2130 560 570 2135 2139 580 580 2170 2170 2145 2145 2111 2111 589 589 587 587 575 575 2130 2130 2166 2152 2152- 2166 615 615 642 640 638 636 634 634- 642664 664 668 6682175 2175 2179 2179 2145 2145- 2153 2153 2211 657 657- 665 2264 659 666 2177 2147 2149 2151 2253 2255 2147 2147 564 564- 572 643 643 645645 2260 2260 2262 2100 80 2095 2123 2178 2178 2172 2172 2166 2166 2160 2160 2150 2150 2140 2140 2139 2139 2133 2133 572 570 2164 2162 2160 2158 2156 2154 2137 2149 2149 545 545 555 555 PC- This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Assessment Parcel Palo Alto Assessment Parcel Palo Alto Assessment Parcel Outside Palo Alto abc Road Centerline Small Text (TC) Curb Face (RF) Pavement Edge (RF) abc Address Label (AP) Current Features abc Zone District Labels Zone Districts 0' 46' Attachment A: Location Map 2147 Yale CITY OF PALO ALTO I NC O R P O R A TED CALIFORNIA P a l o A l t o T h e C i t y o f APRIL 1 6 1894 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto efoley2, 2023-01-05 13:11:04 (\\cc-maps\Encompass\Admin\Personal\Planning.mdb) Item 11 Attachment A - 2147 Yale Location Map Item 11: Staff Report Pg. 7 Packet Pg. 150 of 259 ATTACHMENT B 2147-2149 Yale Street, 22PLN-00374 Table 1: COMPARISON WITH CHAPTER 18.12 (RMD DISTRICT) Regulation Required/Allowable Existing Proposed Parcel 1 (2147 Yale) Proposed Parcel 2 (2149 Yale) Minimum/Maximum Site Area 5,000-9,999 sf 5,770 sf Non-conforming: 2,885 sf Non-conforming: 2,885 sf Minimum/Maximum Site Width (1) 6 6 50 feet 50.15 feet wide along College Ave. 57.53 feet wide along Yale St. 50.15 feet wide along College Ave. Minimum/Maximum Site Depth FD 100 feet 115.03 feet wide along Yale St. Non-conforming: 50.15 feet deep Non-conforming: 57.50 feet long along Yale St. Residential Density Two-Family use, under one ownership* Two units One unit One unit Front Setback 20 feet 20 feet 20 feet Non-conforming: 16 feet Interior Side Setback 6 feet 6 feet 6 feet Non-conforming: 3.6 feet right side 20 feet left side Street Side Setback 16 feet 16 feet 16 feet N/A Rear Setback 20 feet 20 feet Non-conforming: 3.2 feet Non-conforming: 6 feet Maximum Lot Coverage 40% 2,308 sf 33% 1,891 sf 32.77% 945.45 sf 32.77% 945.45 sf Maximum Floor Area 50% plus 200 sf for purposes of providing one required covered parking space (two- family use only, not applicable to single family) 3,085 sf 3,075 sf Non-conforming: 53.29% 1,537.5 sf Buildable: 50% 1,442.5 sf Non-conforming: 53.29% 1,537.5 sf Buildable: 50% 1,442.5 sf Maximum Height 35 Two stories Non-conforming: two stories Allowable: one story Non-conforming: two stories Allowable: one story * Note SB 9 does not apply in the RMD zoning district Table 2: CONFORMANCE WITH SECTION 18.10.060 and CHAPTER 18.52 (Off-Street Parking) for Two-Family RMD Use Type Required Existing Proposed 2147 Yale Proposed 2149 Yale Item 11 Attachment B - Zoning Comparison Table Item 11: Staff Report Pg. 8 Packet Pg. 151 of 259 Vehicle Parking Two Family 3 spaces total, of which at least two must be covered 3 spaces total: 2 covered spaces (1 assigned to each unit), plus 1 uncovered shared space N/A N/A Vehicle Parking Single Family Two spaces per unit, one of which must be covered N/A Non-conforming: 1 covered space only Non-conforming: 1 covered space only Item 11 Attachment B - Zoning Comparison Table Item 11: Staff Report Pg. 9 Packet Pg. 152 of 259 1 ATTACHMENT C FINDINGS FOR APPROVAL 2147 Yale Street 22PLN-00374 Preliminary Parcel Map Findings A legislative body of a city shall deny approval of a Preliminary Parcel Map with Exceptions, if it makes any of the following findings (CGC Section 66474): 1. That the proposed map is not consistent with applicable general and specific plans as specified in Section 65451: The site does not lie within a specific plan area and is consistent with the provisions of the Comprehensive Plan as noted below. 2. That the design or improvement of the proposed subdivision is not consistent with applicable general and specific plans: Staff is not able to identify any Comprehensive Plan policies or Programs directly relevant to the subject application. The existing structures and uses are consistent with the Comprehensive Plan and are not proposed to change. Therefore, staff recommends finding that on balance, the project is consistent with the policies in the Comprehensive Plan. 3. That the site is not physically suitable for the type of development: No change to the existing development is proposed, however by re-orienting the property lines, the existing building setbacks become non-conforming. The rear setback for the proposed 2147 Yale property would be 3.2 ft where 20 ft is usually required. For the proposed 2149 Yale property, the front setback would be 16 ft where 20 ft is usually required, the side setback would be 3.6 ft where 6 is required, and the rear would be 6ft where 20 ft is required. The existing lightwells would become non-conforming as well. Additionally both proposed lots would exceed allowable FAR by approximately 3%. The two created lots would not meet the minimum lot size requirement of 5,000 sf and would be considered substandard. As a result of these non-conformities, the proposed lots are not physically suitable for the houses in comparison to the existing lot. 4. That the site is not physically suitable for the proposed density of development: The subdivision application for the site will not change the existing residential density of two units. Item 11 Attachment C - Denial Findings Item 11: Staff Report Pg. 10 Packet Pg. 153 of 259 2 5. That the design of the subdivision or the proposed improvements are likely to cause substantial environmental damage or substantially and avoidably injure fish or wildlife or their habitat: The minor subdivision will not cause environmental damage or injure fish, wildlife, or their habitat. The project site has been fully urbanized and developed and is centrally located within the College Terrace neighborhood. There is no recognized sensitive wildlife or habitat in the project vicinity. 6. That the design of the subdivision or type of improvements is likely to cause serious public health problems: The creation of two individual parcels will not cause serious public health problems, as it does not substantially affect the existing conditions and overall function of the property as a site for single-family residences. 7. That the design of the subdivision or the type of improvements will conflict with easements, acquired by the public at large, for access through or use of, property within the proposed subdivision. In this connection, the governing body may approve a map if it finds that alternate easements, for access or for use, will be provided, and that these will be substantially equivalent to ones previously acquired by the public. This subsection shall apply only to easements of record or to easements established by judgment of a court of competent jurisdiction and no authority is hereby granted to a legislative body to determine that the public at large has acquired easements for access through or use of property within the proposed subdivision. It may be possible to retain the existing uncovered parking space by requiring an access easement between the two properties, however this is not currently part of the proposal. SECTION 5. Exception Findings. A legislative body of a city shall deny approval of a Preliminary Parcel Map with Exceptions, if it fails to make any of the following findings (PAMC 21.32.020): 1. There are special circumstances or conditions affecting the property. The existing property is a typical size for the RMD (NP) zoning district, and contains the allowed use of two-family use under one ownership. While the tenancy-in-common is not the most typical ownership arrangement, it is a private matter outside of the scope of the Zoning Code and does not constitute a special circumstance. The special circumstance in this case is that the houses already exist, so the setbacks are Item 11 Attachment C - Denial Findings Item 11: Staff Report Pg. 11 Packet Pg. 154 of 259 3 unable to be changed compared to a subdivision application for new construction. 2. The exception is necessary for the preservation and enjoyment of a substantial property right of the petitioner. No property rights are affected by the current arrangement, as either or both sellers may sell their share of the property. Therefore, no property rights are preserved or recovered by subdividing. 3. The granting of the exception will not be detrimental to the public welfare or injurious to other property in the territory in which the property is situated. The use of the property would not be changing, and therefore will not be detrimental to the public welfare or injurious to other properties in the area. 4. The granting of the exception will not violate the requirements, goals, policies, or spirit of the law. Granting this exception would create violations of the Zoning Code for required setbacks and FAR, and render the existing units non-conforming. Furthermore, the permitted use of two-family use under one ownership was developed to allow and encourage this type of development. Allowing the requested exception would violate the spirit of the law by setting a precedent for other RMD-zoned properties with this land use and/or tenancy-in- common arrangement, as well as potentially discouraging similar projects from being built in the future. Item 11 Attachment C - Denial Findings Item 11: Staff Report Pg. 12 Packet Pg. 155 of 259 Item 11 Attachment D - BEP0121 College Terrace County Recorded Map Item 11: Staff Report Pg. 13 Packet Pg. 156 of 259 Attachment E Project Plans In order to reduce paper consumption, a limited number of hard copy project plans are provided to Commissioners for their review. The same plans are available to the public, at all hours of the day, via the following online resources. Directions to review Project plans online: 1. Go to: bit.ly/PApendingprojects 2. Scroll down to find “2147 Yale” 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/2147-Yale- Street Item 11 Attachment E - Project Plans Item 11: Staff Report Pg. 14 Packet Pg. 157 of 259 1 Foley, Emily From:Pria Graves <priag@birketthouse.com> Sent:Friday, December 2, 2022 2:57 PM To:Foley, Emily Subject:Application 22PLN-00374, 2147 Yale Street CAUTION: This email originated from outside of the organization. Be cautious of opening attachments and clicking on links. Dear Emily ‐ I am writing to urge you to deny approval of this request to divide the existing parcel with two Single‐Family Residences into two lots. This request is totally inconsistent with the RMD(NP) zoning which explicitly states: " The RMD two‐unit multiple‐family residence district is intended to allow a second dwelling unit under the same ownership as the initial dwelling unit on appropriate sites in areas designated for multiple‐family use by the Palo Alto Comprehensive Plan.” When these two homes were built in 2010, it was made very clear that the entire lot (parcel 137‐01‐038) was to remain under one owner. There was never any provision for subsequent subdivision. One of the benefits of the RMD zoning is that it allows certain exceptions without requiring the applicant to obtain a variance. The original application included a minimum lot size exception and minimum depth exception and I believe that the setback at the rear of the current structures is also slightly less than required. Since the project took advantage of these exceptions, it is absurd that the owners now wish to ignore the RMD zoning requirements that allowed the homes to be built! This subdivision also may be the beginning of a slippery slope for the City. If this property, explicitly required to remain under one owner, can be subdivided, what will the City’s answer be when the owners of homes with ADUs apply to subdivide their lots so they can sell the ADU? As I say, a slippery slope. As the long‐time owner of a home in this zoning district, I really do not wish to see the zoning requirements eroded. It is unfair to those who choose to comply with the intent of the zoning and wish to retain our moderately dense housing area. Regards, Pria Graves 2130 Yale Street You don't often get email from priag@birketthouse.com. Learn why this is important Item 11 Attachment F - Neighbor Comments Item 11: Staff Report Pg. 15 Packet Pg. 158 of 259 Item 11 Attachment G - Applicant's Memo Item 11: Staff Report Pg. 16 Packet Pg. 159 of 259 Item 11 Attachment G - Applicant's Memo Item 11: Staff Report Pg. 17 Packet Pg. 160 of 259 Item 11 Attachment G - Applicant's Memo Item 11: Staff Report Pg. 18 Packet Pg. 161 of 259 Item 11 Attachment G - Applicant's Memo Item 11: Staff Report Pg. 19 Packet Pg. 162 of 259 Item 11 Attachment G - Applicant's Memo Item 11: Staff Report Pg. 20 Packet Pg. 163 of 259 City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Administrative Services Meeting Date: May 1 2023 Report #:2303-1183 TITLE Sales Tax Digest Summary Calendar 2022 Q4 (October 2022 – December 2022) DISCUSSION This report transmits information regarding the City of Palo Alto’s sales tax receipts for the fourth quarter (October to December) of 2022. There are two attachments to this report that provide further and more detailed levels of information: 1. City of Palo Alto Sales Tax Digest Summary 2022 Q4 (Attachment A) 2. California Legislative Update for Local Taxes (Attachment B) The City’s sales tax cash receipts of $9.6 million for the fourth quarter (October to December 2022) is $594,000 (6.6%) higher than the same quarter of the prior year (see Attachment A, Historical Analysis by Calendar Quarter). This increase includes late payment anomalies related to the state sales tax extension program. When adjusted for nonperiod related payments, the overall economic quarter over quarter sales tax activity (Q4 2021 to Q4 2022) in Palo Alto increased by 7.2%. This is likely due to higher prices of goods and services as a result of inflation and a combination of recovery and other factors (consumers, businesses, and organizations getting back to pre-pandemic trends along with non- pandemic related business performance changes). Generally, the pace of the City’s recovery from the pandemic has lagged compared to other regions. Growth for the state and Northern California reflects inflationary growth while the growth reported for the City reflects both inflationary grown and lagged recovery. For the year ending in the fourth quarter of 2022, cash receipts (including county pools) for the City increased by 13.4% from the prior year. In comparison, statewide increased by 8.1% and Northern California increased by 7.4%. Item 12 Item 12 Staff Report Item 12: Staff Report Pg. 1 Packet Pg. 164 of 259 After adjustments for non-period related payments, the overall economic sales tax activity in Palo Alto for the year increased by 14.8%, while it increased 2.5% for the state and decreased 5.9% in Northern California. Both the state and Northern California did not see as significant sales tax decline compared to the City and overall recovered ahead of the City. The City’s economic sales tax loss bottomed out at a 25.9% decline (calendar 2021 Q1), while the state and Northern California experienced 17.4% and 18.8% declines, respectively, during the same quarter. ATTACHMENTS APPROVED BY: Item 12 Item 12 Staff Report Item 12: Staff Report Pg. 2 Packet Pg. 165 of 259 City of Palo Alto Sales Tax Digest Summary Collections through February 2023 Sales October through December 2022 (2022Q4) www.avenuinsights.com (800) 800-8181 Page 1 California Overview For the year ending in fourth quarter of 2022, cash receipts increased 8.1% statewide, 7.4% in Northern California. However, when adjusted for non-period related payments, the overall economic sales tax activity for the year ending in fourth quarter of 2022 increased by 2.5% statewide, and down 5.9% in Northern California. City of Palo Alto For the year ending in the fourth quarter of 2022, sales tax cash receipts for the city increased by 13.4% from the prior year. However, when adjusted for non-period related payments, the overall economic sales tax activity in Palo Alto for the year ending in fourth quarter of 2022 increased by 14.8%. On a quarterly basis, sales tax cash receipts increased by 6.6% from Quarter 4 of 2021 to Quarter 4 of 2022. However, this increase includes late payment anomalies related to a state sales tax extension program. The period’s cash receipts include tax from business activity during the period, payments for prior periods and other cash adjustments. When adjusted for non-period related payments, the overall economic quarter over quarter sales tax activity (Q4 2021 to Q4 2022) in Palo Alto increased by 7.2%. A large, one-time audit decision of -$612,000 negatively impacted the city’s cash receipts this quarter. Without the correction, sales tax cash receipts would have increased by approximately 12.4% from Quarter 2 of 2021 to Quarter 2 of 2022. Approximately 3.8% of that adjusted 12.4% Q2 of 2022 over Q2 of 2021 increase might be attributed to inflation, based on increases in the Consumer Price Index, (CPI- U). Very little of Palo Alto’s adjusted 12.4% increase might be attributed to increased economic activity, based on changes in US Real GDP. Roughly 1.7% is attributable to a decrease in payments from prior periods, due to Palo Alto taxpayers getting caught up with payments. The remaining roughly 6.9% is a combination of recovery and other factors (consumers, businesses and organizations getting back to Pre- Pandemic trends along with non-pandemic related business performance changes). Note that some of these factors are based on broad based data and thus, these growth factors should be treated as rough guidelines for economic activity changes this quarter. Regional Overview The first chart on page two shows adjusted economic benchmark year amounts, which means that it shows a full calendar year from the fourth quarter of 2021 through fourth quarter of 2022 compared to fourth quarter of 2020 through fourth quarter of 2021 (benchmark years are rolling annual comparisons through the current quarter). The decrease is different between the state and Palo Alto because the sales tax from businesses in Palo Alto were more impacted than those statewide. Item 12 Attachment A - City of Palo Alto Sales Tax Digest Summary, 2022Q4 Item 12: Staff Report Pg. 3 Packet Pg. 166 of 259 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 2 % of Total / % Change Palo Alto California Statewide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast General Retail 27.4 / 12.2 27.8 / -0.7 23.4 / -18.7 27.9 / 1.9 36.3 / -1.8 26.2 / 2.4 32.7 / 14.9 25.5 / -23.4 Food Products 16.8 / 31.1 20.0 / 4.9 20.5 / -12.9 15.9 / 9.4 14.2 / 4.6 22.3 / 9.5 17.2 / 13.9 17.6 / -7.7 Transportation 19.5 / -2.5 24.9 / 6.2 21.4 / -15.8 27.5 / 5.6 23.2 / 6.1 25.8 / 10.5 25.8 / 24.6 30.4 / -6.2 Business to Business 32.7 / 27.1 16.2 / 1.7 22.5 / -14.4 14.4 / 12.4 15.2 / 10.9 15.9 / 4.2 10.7 / 25.0 10.8 / -1.2 Misc/Other 3.6 / -14.2 11.1 / -0.6 12.2 / -17.1 14.3 / 6.2 11.2 / 3.2 9.7 / 0.2 13.7 / 19.4 15.7 / -11.6 Total 100.0 / 14.8 100.0 / 2.5 100.0 / -15.8 100.0 / 6.1 100.0 / 3.2 100.0 / 6.0 100.0 / 18.7 100.0 / -11.9 Palo Alto California Statewide S.F. Bay Area Sacramento Valley Central Valley South Coast Inland Empire North Coast Largest Segment Leasing Restaurants Restaurants Auto Sales - New Miscellaneous Retail Restaurants Miscellaneous Retail Service Stations % of Total / % Change 20.7 / 24.6 14.1 / 8.4 14.6 / -8.4 11.2 / 1.2 13.4 / 0.5 16.2 / 13.6 16.0 / 24.9 12.1 / 13.5 2nd Largest Segment Auto Sales - New Auto Sales - New Auto Sales - New Restaurants Department Stores Auto Sales - New Restaurants Auto Sales - New % of Total / % Change 15.2 / -8.5 11.6 / 1.4 10.2 / -22.8 10.8 / 11.4 11.1 / 2.2 13.1 / 8.7 10.5 / 16.6 11.1 / -18.3 3rd Largest Segment Restaurants Miscellaneous Retail Department Stores Miscellaneous Retail Restaurants Department Stores Auto Sales - New Restaurants % of Total / % Change 15.0 / 33.5 9.1 / 4.3 8.0 / -8.1 10.5 / 2.4 9.3 / 5.0 8.1 / 3.0 10.4 / 9.7 11.1 / -6.6 ECONOMIC CATEGORY ANALYSIS FOR YEAR ENDED 4th Quarter 2022 ECONOMIC SEGMENT ANALYSIS FOR YEAR ENDED 4th Quarter 2022 $- $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 Quarterly Benchmark Year Regional Overview Chart (Economic) BENCHMARK YEAR 2022Q4 COMPARED TO BENCHMARK YEAR 2021Q 4 Gross Historical Sales Tax Cash Receipts by Benchmark Year and Quarter (Before Adjustments) Item 12 Attachment A - City of Palo Alto Sales Tax Digest Summary, 2022Q4 Item 12: Staff Report Pg. 4 Packet Pg. 167 of 259 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 3 Anderson Honda Macy's Department Store Stanford Health Care Apple Stores Magnussen's Toyota of Palo Alto Tesla Arco AM/PM Mini Marts Neiman Marcus Tesla Lease Trust Audi Palo Alto Nordstrom Department Store Tiffany & Company Bloomingdale's Richemont Union 76 Service Stations Hengehold Trucks Rivian Automotive Valero Service Stations Hermes Shell Service Stations Varian Medical Systems HP Enterprise Services Shreve & Co.Volvo Cars Palo Alto Louis Vuitton Auto Sales -New 15.2% Restaurants 15.0% Office Equipment 7.0% Apparel Stores 6.6% Department Stores 6.3% All Other 49.9% Net Pools & Adjustments 20.5% Net Cash Receipts for Benchmark Year fourth Quarter 2022: $34,043,639 *Benchmark year (BMY) is the sum of the current and 3 previous quarters (2022Q4 BMY is sum of 2022 Q4, 2022 Q3, 2022 Q2, 2022 Q1) TOP 25 SALES/USE TAX CONTRIBUTORS The following list identifies Palo Alto’s Top 25 Sales/Use Tax contributors. The list is in alphabetical order and represents the year ended fourth quarter of 2022. The Top 25 Sales/Use Tax contributors generate 61.4% of Palo Alto’s total sales and use tax revenue. Item 12 Attachment A - City of Palo Alto Sales Tax Digest Summary, 2022Q4 Item 12: Staff Report Pg. 5 Packet Pg. 168 of 259 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 4 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 Benchmark Year 2022Q4 Benchmark Year 2021Q4 Sales Tax from Largest Non-Confidential Sales Tax Segments (Economic) Item 12 Attachment A - City of Palo Alto Sales Tax Digest Summary, 2022Q4 Item 12: Staff Report Pg. 6 Packet Pg. 169 of 259 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 5 Economic Category % 2022Q4 2022Q3 2022Q2 2022Q1 2021Q4 2021Q3 2021Q2 2021Q1 2020Q4 2020Q3 2020Q2 Business To Business 26.8%2,571,178 2,194,817 2,095,020 2,031,199 2,136,501 1,689,561 1,559,814 1,700,725 1,937,072 1,909,078 1,851,601 Miscellaneous/Other 15.8%1,517,005 1,597,816 1,724,861 1,701,538 1,687,189 1,812,731 1,743,358 1,558,859 1,777,635 1,480,228 997,005 General Retail 24.0%2,305,038 1,802,777 1,920,316 1,639,417 2,282,253 1,687,461 1,740,666 1,153,240 1,608,823 1,143,497 660,300 Food Products 13.1%1,260,287 1,230,824 1,227,240 1,018,577 1,083,309 999,729 912,939 635,705 674,469 651,271 439,540 Subtotal Economic (Local Business)79.8%7,653,508 6,826,234 6,967,438 6,390,731 7,189,252 6,189,482 5,956,778 5,048,529 5,997,999 5,184,075 3,948,447 Net Pools & Adjustments 20.2%1,935,580 1,862,181 686,044 1,721,924 1,806,328 584,508 1,513,663 1,741,273 1,343,184 1,339,250 1,877,921 Total Cash Receipts 100.0%9,589,088 8,688,414 7,653,481 8,112,655 8,995,580 6,773,990 7,470,441 6,789,802 7,341,183 6,523,324 5,826,368 Economic Segment % 2022Q4 2022Q3 2022Q2 2022Q1 2021Q4 2021Q3 2021Q2 2021Q1 2020Q4 2020Q3 2020Q2 Miscellaneous/Other 46.8%4,490,992 4,087,158 4,008,008 3,949,786 3,969,954 3,752,178 3,570,610 3,406,995 3,982,753 3,567,251 3,181,367 Restaurants 11.6%1,114,637 1,102,248 1,093,944 902,707 947,771 884,911 799,544 540,244 557,662 546,924 342,533 Miscellaneous Retail 5.7%545,797 381,616 479,710 432,956 679,381 412,016 514,516 338,032 489,417 329,678 108,953 Apparel Stores 5.6%538,573 435,730 495,508 392,724 540,782 406,274 398,447 264,318 365,627 265,136 72,307 Department Stores 5.6%533,032 423,601 454,349 367,144 525,295 388,703 384,763 237,522 315,453 186,316 29,842 Service Stations 2.2%215,640 233,387 250,715 191,755 190,610 181,460 157,268 116,258 111,242 108,840 70,063 Food Markets 1.2%116,810 99,811 104,253 91,634 108,203 90,773 89,773 74,397 89,739 81,580 77,803 Business Services 1.0%98,027 62,683 80,950 62,025 227,256 73,169 41,858 70,763 86,107 98,350 65,579 Subtotal Economic (Local Business)79.8%7,653,508 6,826,234 6,967,438 6,390,731 7,189,252 6,189,482 5,956,778 5,048,529 5,997,999 5,184,075 3,948,447 Net Pools & Adjustments 20.2%1,935,580 1,862,181 686,044 1,721,924 1,806,328 584,508 1,513,663 1,741,273 1,343,184 1,339,250 1,877,921 Total Cash Receipts 100.0%9,589,088 8,688,414 7,653,481 8,112,655 8,995,580 6,773,990 7,470,441 6,789,802 7,341,183 6,523,324 5,826,368 Historical Analysis by Calendar Quarter The chart above shows the categories and segments in quarterly economic basis amounts. The total amount is the net cash recei pts, and it was obtained by adding up the categories/segments with the “Net Pools & Adjustments” amount. Item 12 Attachment A - City of Palo Alto Sales Tax Digest Summary, 2022Q4 Item 12: Staff Report Pg. 7 Packet Pg. 170 of 259 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 6 Economic Category % 2022Q4 2021Q4 2020Q4 2019Q4 2018Q4 2017Q4 2016Q4 2015Q4 2014Q4 2013Q4 Business To Business 27.2%9,260,981 7,286,150 7,841,120 8,527,467 6,310,094 5,765,938 5,070,150 4,816,050 4,229,960 4,345,099 Miscellaneous/Other 19.1%6,512,441 6,818,252 5,644,912 7,306,496 7,675,702 6,512,996 6,341,684 5,870,766 5,238,824 8,554,047 General Retail 22.7%7,711,363 6,865,025 4,443,550 7,705,885 8,252,239 8,101,232 8,405,122 8,004,603 8,043,904 7,971,020 Food Products 14.0%4,764,903 3,635,859 2,786,896 4,918,067 4,834,276 4,678,134 4,623,448 4,477,229 4,203,235 3,851,007 Subtotal Economic (Local Business)83.0%28,249,687 24,605,286 20,716,478 28,457,915 27,072,311 25,058,300 24,440,405 23,168,648 21,715,924 24,721,173 Net Pools & Adjustments 17.0%5,793,952 5,424,527 4,640,947 6,403,208 6,376,669 4,919,736 4,008,398 3,910,626 3,986,209 3,940,092 Total 100.0%34,043,639 30,029,814 25,357,425 34,861,122 33,448,980 29,978,035 28,448,802 27,079,275 25,702,133 28,661,265 Economic Segment % 2022Q4 2021Q4 2020Q4 2019Q4 2018Q4 2017Q4 2016Q4 2015Q4 2014Q4 2013Q4 Miscellaneous/Other 49.6%16,874,802 14,915,305 14,173,249 16,823,007 15,194,506 13,632,458 12,398,186 11,601,638 10,535,865 13,987,602 Restaurants 12.5%4,241,753 3,176,670 2,339,624 4,353,618 4,241,632 4,068,940 4,022,319 3,891,360 3,664,315 3,323,442 Miscellaneous Retail 5.5%1,875,473 1,945,372 1,208,603 1,611,157 1,675,512 1,682,474 2,314,810 1,630,195 1,546,933 1,434,238 Apparel Stores 5.5%1,871,251 1,609,800 1,004,225 1,912,604 1,979,846 1,741,347 1,660,190 1,657,179 1,660,838 1,630,187 Department Stores 5.2%1,778,127 1,536,282 777,559 1,795,157 1,980,754 2,066,909 2,143,430 2,366,679 2,364,448 2,449,696 Service Stations 2.6%891,841 645,596 436,436 700,712 697,083 613,070 551,153 644,027 768,488 760,187 Business Services 0.9%303,932 413,141 419,690 817,559 834,069 748,497 843,203 872,811 707,311 674,668 Food Markets 1.2%412,508 363,121 357,092 444,100 468,909 504,604 507,114 504,759 467,726 461,152 Subtotal Economic (Local Business)83.0%28,249,687 24,605,286 20,716,478 28,457,915 27,072,311 25,058,300 24,440,405 23,168,648 21,715,924 24,721,173 Net Pools & Adjustments 17.0%5,793,952 5,424,527 4,640,947 6,403,208 6,376,669 4,919,736 4,008,398 3,910,626 3,986,209 3,940,092 Total 100.0%34,043,639 30,029,814 25,357,425 34,861,122 33,448,980 29,978,035 28,448,802 27,079,275 25,702,133 28,661,265 Historical Analysis by Calendar BMY from 2013Q4 to 2022Q4 The chart above shows the categories and segments in benchmark year economic basis amounts. The total amount is the net cash receipts, and it was obtained by adding up the categories/segments with the “Net Pools & Adjustments” amount. Benchmark year (BMY) is the sum of the current and 3 previous quarters (2022Q4 BMY is sum of 2022 Q4, 2022 Q3, 2022 Q2, 2022 Q1). Item 12 Attachment A - City of Palo Alto Sales Tax Digest Summary, 2022Q4 Item 12: Staff Report Pg. 8 Packet Pg. 171 of 259 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 7 Ge n e r a l R e t a i l Fo o d P r o d u c t s Tr a n s p o r t a t i o n Bu s i n e s s t o B u s i n e s s Mi s c / O t h e r 20 2 2 / 4 T o t a l 20 2 1 / 4 T o t a l % C h g La r g e s t G a i n Se c o n d L a r g e s t Ga i n La r g e s t D e c l i n e Se c o n d L a r g e s t De c l i n e Campbell 1.1%11.8%-1.5%64.4%6.8%3,023,861 2,648,352 14.2%Light Industry Restaurants Miscellaneous Retail Auto Sales - Used Cupertino -11.8%12.4%25.4%-44.0%-40.1%10,068,546 16,805,343 -40.1%Restaurants Service Stations Office Equipment I.T. Infrastructure Gilroy 0.1%4.3%7.1%-9.7%-10.9%4,649,553 4,628,454 0.5%Auto Sales - New Department Stores I.T. Infrastructure Misc. Vehicle Sales Los Altos -27.7%2.8%9.3%3.9%-9.4%636,393 667,611 -4.7%Restaurants Service Stations Recreation Products Light Industry Los Gatos 9.6%23.5%-7.0%-6.1%11.8%1,632,289 1,490,491 9.5%Restaurants Furniture/Appliance Auto Sales - New Miscellaneous Retail Milpitas -5.1%17.7%38.6%32.9%-9.4%6,595,785 5,625,844 17.2%Office Equipment Auto Sales - New Miscellaneous Retail Light Industry Morgan Hill 2.6%-18.2%8.5%-15.3%-18.5%2,639,438 2,737,611 -3.6%Service Stations Auto Sales - New Food Markets Light Industry Mountain View -15.6%17.8%23.0%-17.4%-1.3%5,272,210 5,340,713 -1.3%Restaurants Auto Sales - New Business Services Miscellaneous Retail Palo Alto 0.9%16.1%-8.9%24.2%-26.8%7,848,525 7,323,799 7.2%Office Equipment Leasing Miscellaneous Retail Auto Sales - New San Jose -1.1%12.3%13.5%33.6%-1.5%60,148,190 55,065,184 9.2%Office Equipment Auto Sales - New Miscellaneous Retail Apparel Stores Santa Clara -3.2%19.9%26.4%-1.7%5.0%13,004,559 12,383,669 5.0%Auto Sales - New Restaurants I.T. Infrastructure Miscellaneous Retail County of Santa Clara 2.7%-10.5%-3.7%6.8%9.8%1,202,620 1,197,213 0.5%Heavy Industry Bldg.Matls-Whsle Food Processing Eqp Auto Parts/Repair Saratoga -26.5%-0.5%6.4%84.9%-25.5%295,840 298,131 -0.8%Business Services Light Industry Miscellaneous Retail Food Processing Eqp Sunnyvale 23.5%15.1%13.2%11.3%38.0%8,013,428 6,859,535 16.8%Department Stores Office Equipment Heavy Industry Miscellaneous Retail Quarterly Analysis by Sales Tax Category: Change from 2021Q4 to 2022Q4 (Economic) Unlike the chart on page one which showed a ‘benchmark year’ through fourth quarter of 2022, the chart above shows a comparison of one quarter only – fourth quarter of 2022 to fourth quarter of 2021. This chart is for local ‘brick and mortar’ businesses and it excludes county pools and adjustments. Item 12 Attachment A - City of Palo Alto Sales Tax Digest Summary, 2022Q4 Item 12: Staff Report Pg. 9 Packet Pg. 172 of 259 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 8 California Avenue % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL FOOD PRODUCTS 22.4%61,334 50,093 49.8%44.8% GENERAL RETAIL -15.9%20,238 24,072 16.4%21.5% ALL OTHER 10.9%41,697 37,611 33.8%33.6% TOTAL 10.3%123,269 111,776 100.0%100.0% El Camino Real and Midtown % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL FOOD PRODUCTS 10.5%161,847 146,412 46.2%42.2% GENERAL RETAIL 2.1%39,138 38,329 11.2%11.1% ALL OTHER -7.7%149,465 161,886 42.6%46.7% TOTAL 1.1%350,450 346,627 100.0%100.0% Greater Downtown % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL FOOD PRODUCTS 16.6%485,755 416,570 52.6%49.6% GENERAL RETAIL 37.1%383,255 279,601 41.5%33.3% BUSINESS TO BUSINESS -70.6%35,094 119,500 3.8%14.2% CONSTRUCTION -14.9%10,165 11,943 1.1%1.4% MISCELLANEOUS -43.5%4,889 8,655 0.5%1.0% TRANSPORTATION 24.0%3,750 3,023 0.4%0.4% TOTAL 10.0%922,907 839,292 100.0%100.0% Stanford Shopping Center % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL GENERAL RETAIL -19.9%1,150,892 1,437,359 74.4%75.9% FOOD PRODUCTS 4.7%148,678 142,044 9.6%7.5% ALL OTHER -21.3%246,968 313,637 16.0%16.6% TOTAL -18.3%1,546,539 1,893,040 100.0%100.0% City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2021Q4 to 2022Q4 (Economic) Item 12 Attachment A - City of Palo Alto Sales Tax Digest Summary, 2022Q4 Item 12: Staff Report Pg. 10 Packet Pg. 173 of 259 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 9 Town And Country Shopping Center % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL FOOD PRODUCTS 12.6%105,285 93,523 56.9%54.4% GENERAL RETAIL 2.4%72,674 70,974 39.3%41.3% ALL OTHER -5.5%7,110 7,524 3.8%4.4% TOTAL 7.6%185,069 172,021 100.0%100.0% All Other Geos combined with Balance of Jurisdiction % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL BUSINESS TO BUSINESS 25.6%2,539,070 2,022,323 39.0%32.9% GENERAL RETAIL -9.8%1,730,113 1,917,420 26.5%31.2% TRANSPORTATION -6.2%1,129,540 1,204,573 17.3%19.6% FOOD PRODUCTS 15.7%1,039,984 898,543 16.0%14.6% MISCELLANEOUS -24.4%47,882 63,370 0.7%1.0% CONSTRUCTION -15.2%30,176 35,605 0.5%0.6% TOTAL 6.1%6,516,763 6,141,834 100.0%100.0% All Geo Area Totals Comparison 22Q4 & 21Q4 % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL Balance of Jurisdiction 21.9%3,388,529 2,779,078 52.0%45.2% Stanford Shopping Center -18.3%1,546,539 1,893,040 23.7%30.8% Greater Downtown 10.0%922,907 839,292 14.2%13.7% El Camino Real and Midtown 1.1%350,450 346,627 5.4%5.6% Town And Country Shopping Center 7.6%185,069 172,021 2.8%2.8% California Avenue 10.3%123,269 111,776 1.9%1.8% TOTAL 6.1%6,516,763 6,141,834 100.0%100.0% Palo Alto citywide QE 22Q4 & 21Q4 % CHANGE QoQ 2022Q4 QE 2021Q4 QE 22Q4 % OF TOTAL 21Q4 % OF TOTAL BUSINESS TO BUSINESS 24.2%2,756,562 2,219,376 35.1%30.3% GENERAL RETAIL 0.9%2,305,038 2,283,693 29.4%31.2% TRANSPORTATION -8.9%1,307,454 1,435,594 16.7%19.6% FOOD PRODUCTS 16.1%1,260,287 1,085,805 16.1%14.8% MISCELLANEOUS -29.2%183,393 259,116 2.3%3.5% CONSTRUCTION -11.0%35,791 40,215 0.5%0.5% TOTAL 7.2%7,848,525 7,323,799 100.0%100.0% City of Palo Alto Geo Areas & Citywide Chart Data: Change from 2021Q4 to 2022Q4 (Economic) Cont. Item 12 Attachment A - City of Palo Alto Sales Tax Digest Summary, 2022Q4 Item 12: Staff Report Pg. 11 Packet Pg. 174 of 259 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 10 FOOD PRODUCTS, 22.4% CHANGE, $61,334 , 49.8% TOTAL GENERAL RETAIL, -15.9% CHANGE, $20,238 , 16.4% TOTAL ALL OTHER, 10.9% CHANGE, $41,697 , 33.8% TOTAL California Avenue 2022Q4 SALES TAX AMOUNTS FOOD PRODUCTS, $50,093 , 44.8%TOTAL GENERAL RETAIL, $24,072 , 21.5%TOTAL ALL OTHER, $37,611 , 33.6%TOTAL California Avenue 2021Q4 SALES TAX AMOUNTS FOOD PRODUCTS, 10.5%CHANGE, $161,847 , 46.2%TOTAL GENERAL RETAIL, 2.1% CHANGE, $39,138 , 11.2%TOTAL ALL OTHER, -7.7% CHANGE, $149,465 , 42.6%TOTAL El Camino Real and Midtown 2022Q4 SALES TAX AMOUNTS FOOD PRODUCTS, $146,412 , 42.2%TOTAL GENERAL RETAIL, $38,329, 11.1%TOTAL ALL OTHER, $161,886 46.7%TOTAL El Camino Real and Midtown 2021Q4 SALES TAX AMOUNTS City of Palo Alto Geo Area Pie Charts Item 12 Attachment A - City of Palo Alto Sales Tax Digest Summary, 2022Q4 Item 12: Staff Report Pg. 12 Packet Pg. 175 of 259 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 11 FOOD PRODUCTS, 16.6%CHANGE, $485,755 , 52.6%TOTAL GENERAL RETAIL, 37.1% CHANGE, $383,255 , 41.5%TOTAL BUSINESS TO BUSINESS, -70.6% CHANGE, $35,094 , 3.8%TOTAL CONSTRUCTION, -14.9 CHANGE, $10,165 , 1.1%TOTAL MISCELLANEOUS, -43.5% CHANGE, $4,889 , 0.5%TOTAL TRANSPORTATION, 24.0% CHANGE, $3,750 , 0.4%TOTAL Greater Downtown 2022Q4 SALES TAX AMOUNTS FOOD PRODUCTS, $416,570 , 49.6%TOTAL GENERAL RETAIL, $279,601 , 33.3%TOTAL BUSINESS TO BUSINESS, $119,500 , 14.2%TOTAL CONSTRUCTION, $11,943 , 1.4%TOTAL MISCELLANEOUS, $8,655 , 1.0%TOTAL TRANSPORTATION, $3,023 , 0.4%TOTAL Greater Downtown 2021Q4 SALES TAX AMOUNTS GENERAL RETAIL $1,437,359 , 75.9%TOTAL FOOD PRODUCTS, $142,044 , 7.5%TOTAL ALL OTHER, $313,637 , 16.6%TOTAL Stanford Shopping Center 2021Q4 SALES TAX AMOUNTS GENERAL RETAIL, -19.9% CHANGE, $1,150,892 , 74.4%TOTAL FOOD PRODUCTS, 4.7% CHANGE, $148,678 , 9.6%TOTAL ALL OTHER, -21.3% CHANGE, $246,968 , 16.0%TOTAL Stanford Shopping Center 2022Q4 SALES TAX AMOUNTS City of Palo Alto Geo Areas Pie Charts Item 12 Attachment A - City of Palo Alto Sales Tax Digest Summary, 2022Q4 Item 12: Staff Report Pg. 13 Packet Pg. 176 of 259 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 12 FOOD PRODUCTS, 12.6%CHANGE, $105,285 , 56.9%TOTAL GENERAL RETAIL, 2.4% CHANGE, $72,674 , 39.3%TOTAL ALL OTHER, -5.5% CHANGE, $7,110 , 3.8%TOTAL Town And Country Shopping Center 2022Q4 SALES TAX AMOUNTS FOOD PRODUCTS, $93,523 , 54.4%TOTAL GENERAL RETAIL, $70,974 , 41.3%TOTAL ALL OTHER, $7,524 , 4.4%TOTAL Town And Country Shopping Center 2021Q4 SALES TAX AMOUNTS BUSINESS TO BUSINESS, 25.6%CHANGE, $2,539,070 , 39.0%TOTAL GENERAL RETAIL, -9.8% CHANGE, $1,730,113, 26.5% TOTAL TRANSPORTATION, -6.2% CHANGE, $1,129,540, 17.3% TOTAL FOOD PRODUCTS, 15.7% CHANGE, $1,039,984 , 16.0%TOTAL MISCELLANEOUS, -24.4% CHANGE, $47,882 , 0.7%TOTAL CONSTRUCTION, -15.2% CHANGE, $30,176 , 0.5%TOTAL All Other Geos combined with Balance of Jurisdiction 2022Q4 SALES TAX AMOUNTS BUSINESS TO BUSINESS, $2,022,323 , 32.9%TOTAL GENERAL RETAIL, $1,917,420, 31.2% TOTAL TRANSPORTATION, $1,204,573, 19.6% TOTAL FOOD PRODUCTS, $898,543 , 14.6%TOTAL MISCELLANEOUS, $63,370 , 1.0%TOTAL CONSTRUCTION, $35,605 , 0.6%TOTAL All Other Geos combined with Balance of Jurisdiction 2021Q4 SALES TAX AMOUNTS City of Palo Alto Geo Area Pie Charts Item 12 Attachment A - City of Palo Alto Sales Tax Digest Summary, 2022Q4 Item 12: Staff Report Pg. 14 Packet Pg. 177 of 259 City of Palo Alto www.avenuinsights.com (800) 800-8181 Page 13 Balance of Jurisdiction, 21.9%CHANGE, $3,388,529 , 52.0%TOTAL Stanford Shopping Center, -18.3% CHANGE, $1,546,539 , 23.7%TOTAL Greater Downtown, 10.0% CHANGE, $922,907 , 14.2%TOTAL El Camino Real and Midtown, 1.1% CHANGE, $350,450 , 5.4%TOTAL Town And Country Shopping Center, 7.6% CHANGE, $185,069 , 2.8%TOTAL California Avenue, 10.3% CHANGE, $123,269 , 1.9%TOTAL All Geo Area Totals 2022Q4 SALES TAX AMOUNTS Balance of Jurisdiction, $2,779,078 , 45.2%TOTAL Stanford Shopping Center, $1,893,040 , 30.8%TOTAL Greater Downtown, $839,292 , 13.7%TOTAL El Camino Real and Midtown, $346,627 , 5.6%TOTAL Town And Country Shopping Center, $172,021 , 2.8%TOTAL California Avenue, $111,776 , 1.8%TOTAL All Geo Area Totals 2021Q4 SALES TAX AMOUNTS BUSINESS TO BUSINESS, 24.2%CHANGE, $2,756,562 , 35.1%TOTAL GENERAL RETAIL, 0.9% CHANGE, $2,305,038 , 29.4%TOTAL TRANSPORTATION, -8.9% CHANGE, $1,307,454 , 16.7%TOTAL FOOD PRODUCTS, 16.1% CHANGE, $1,260,287 , 16.1%TOTAL MISCELLANEOUS, -29.2% CHANGE, $183,393 , 2.3%TOTAL CONSTRUCTION, -11.0% CHANGE, $35,791 , 0.5%TOTAL Palo Alto citywide 2022Q4 SALES TAX AMOUNTS BUSINESS TO BUSINESS, $2,219,376 , 30.3%TOTAL GENERAL RETAIL, $2,283,693 , 31.2%TOTAL TRANSPORTATION, $1,435,594 , 19.6%TOTAL FOOD PRODUCTS, $1,085,805 , 14.8%TOTAL MISCELLANEOUS, $259,116 , 3.5%TOTAL CONSTRUCTION, $40,215 , 0.5%TOTAL Palo Alto citywide 2021Q4 SALES TAX AMOUNTS City of Palo Alto Geo Area & Citywide Pie Charts Item 12 Attachment A - City of Palo Alto Sales Tax Digest Summary, 2022Q4 Item 12: Staff Report Pg. 15 Packet Pg. 178 of 259 California Legislative Update March 1, 2023 This edition of our policy update provides information on legislation introduced for 2023 primarily related to local taxes. We hope that this update is helpful, and we will provide additional updates in the future regarding other legislation of interest. Please reach out to us with any questions. Government Relations Contact Fran.Mancia@avenuinsights.com / 559.288.7296 2023 Legislation Friday, February 17 marked the deadline for bill introductions in 2023. Legislators, in particular new legislators, introduced a windfall of bills, surpassing introduction numbers for the last ten years. In total, 2,632 bills were introduced – 1,751 in the Assembly, 881 in the Senate, and six special session bills. About 40% of the legislation introduced are spot bills – placeholders that will be amended with substantive language prior to being referred to policy committees. In the Senate, amendments are must be drafted by legislative counsel and submitted to the Senate Rules Committee on or by March 22 at 3:00 p.m. In the Assembly, amendments must be provided to legislative counsel on or by February 27 at 5:00 p.m. This is to say that a flood of substantive amendments is anticipated the third week in March, which will further define policy discussions this year. Sales and Use Taxes AB 52 (Grayson) Sales and Use Tax Law: manufacturing equipment: research and development. Would express the intent of the legislature to expand the sales and use tax exemption for manufacturing and research and development equipment to preserve California’s status as a hub of innovation and technology and to encourage greater investment in California. Avenu is watching this measure closely, as it is a version of AB 1930 vetoed by the governor last year and could be detrimental to municipal finances. Status: Not yet referred to policy committee Cal Cities Position: Watch AB 314 (Patterson, Jim) Sales and Use Tax: exemptions: trucks for use in interstate or out-of-state commerce. Extends the sales and use tax exemption from 2024 to 2029 for a truck, trailer, or semitrailer over 6000 pounds that is purchased to use in a different state. It also requires the buyer to give an affidavit stating that the vehicle will only be used outside of the state and that it will leave the state within a certain time period. States that local government agency revenue losses resulting from the bill will not be reimbursed. Status: Referred to the Assembly Committee on Revenue and Taxation Cal Cities Position: Watch AB 543 (Gipson) Sales and Use Tax Law: exemptions: petroleum products: water common carriers. Removes the January 1, 2024 sunset date for the sales and use tax exemption on the sale of fuel and petroleum products sold to a water common carrier for immediate shipment outside California for consumption in the conduct of its business as a common carrier after the first out-of-state destination. States that local government agency revenue losses resulting from the bill will not be reimbursed. Status: Referred to the Assembly Committee on Revenue & Taxation Cal Cities Position: Watch AB 1203 (Bains) Sales and use taxes: exemptions: breast pumps and related supplies. Would, on or after January 1, 2024, and before January 1, 2029, exempt the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, breast pumps, breast pump collection and storage supplies, breast pump kits, and breast pads. States that local government agency Item 12 Attachment B - California Legislative Update for Local Taxes Item 12: Staff Report Pg. 16 Packet Pg. 179 of 259 revenue losses resulting from the bill will not be reimbursed. Status: Not yet referred to policy committee Cal Cities Position: Watch AB 1249 (Ta) Sales and use taxes: exemption: tax holiday: school supplies. Would, on and after January 1, 2024, and before January 1, 2029, exempt from sales and use taxes the gross receipts from the sale of, and the storage, use, or other consumption of, qualified school supplies, for the two-day period beginning at 12:01 a.m. on the third Saturday of July of each year and ending at 11:59 p.m. on the following day. States that local government agency revenue losses resulting from the bill will not be reimbursed. Status: Not yet referred to policy committee Cal Cities Position: Watch SB 96 (Portantino) Sales and Use Tax Law: live events: historic event venues. Would state the intent of the legislature to enact legislation expanding the state sales and use tax exemption to transactions during live events at California historic event venues for reinvestment in historic preservation activities. Status: Not yet referred to policy committee Cal Cities Position: Watch Motor Vehicle Taxes AB 16 (Dixon) Motor Vehicle Fuel Tax Law: adjustment suspension. Would authorize the governor to suspend an adjustment to the motor vehicle fuel tax scheduled on or after July 1, 2024, upon determining that increasing the rate would impose an undue burden on low-income and middle- class families. The California Department of Tax and Fee Administration adjusts the tax annually based on a percentage amount equal to the increase in the California Consumer Price Index. Status: Not yet referred to policy committee Cal Cities Position: Watch AB 53 (Fong, Vince) Motor Vehicle Fuel Tax Law: suspension of tax. Would suspend the tax on motor vehicle fuels for one year, would require that all savings realized by a person other than an end consumer be passed on to the end consumer, and would make the violation of this requirement an unfair business practice in violation of unfair competition laws. Status: Not yet referred to policy committee Cal Cities Position: Watch SB 5 (Nguyen) Motor Vehicle Fuel Tax Law: limitation on adjustment. Would limit the annual adjustment to motor vehicle fuel taxes to a maximum of 2% for rate adjustments made on or after July 1, 2023. Status: Referred to the Senate Committee on Governance & Finance Cal Cities Position: Watch Property Taxes AB 84 (Ward) Property tax: welfare exemption: affordable housing. Pursuant to the state constitution, affordable rental housing owned by a nonprofit entity is considered a “charitable” use and exempt from basic property taxes. AB 84 allows nonprofit affordable rental housing to access the existing welfare property tax exemption from the date the property is restricted for affordable housing. Status: Referred to the Assembly Committees on Housing & Community Development and Revenue & Taxation Cal Cities Position: Watch SB 726 (Archuleta) Property taxation: exemption: disabled veteran homeowners. Would allow veterans who are 100% disabled, their spouses, and unmarried surviving spouses an exemption from taxation on their property that does not exceed $863,790, provided certain conditions are met between January 1, 2024 and January 1, 2034. Status: Not yet referred to policy committee Item 12 Attachment B - California Legislative Update for Local Taxes Item 12: Staff Report Pg. 17 Packet Pg. 180 of 259 Cal Cities Position: Watch Miscellaneous AB 41 (Holden) Telecommunications: The Digital Equity in Video Franchising Act of 2023. Revises existing law pertaining to cable operators and state video franchising including: • Expanding the definition of video service to include video programming provided as part of, and via, a service that enables users to access content, information, email, or other services offered over the public internet; • Providing that the act does not authorize the California Public Utilities Commission to regulate the rates of video services; • Revising the revenues excluded from the definition of “gross revenue” for purposes of calculating the franchise fee for a local jurisdiction; and • Expanding the prohibition on certain cable operators or video service providers from discriminating against, or denying access to service to, any group of potential residential subscribers. Status: Referred to the Assembly Committee on Communications & Conveyance Cal Cities Position: Support AB 534 (McCarty) Local agencies: airports: customer facility charges. Existing law authorizes airports to require rental companies to collect a customer facility charge or an alternative customer facility charge under specified circumstances for purposes that include financing, designing, and constructing or operating airport vehicle rental facilities and common-use transportation systems. Current law, beginning January 1, 2024, provides that the authorization for an airport to impose a customer facility charge becomes inoperative when the bonds used for financing are paid, except as specified. This bill would delete the provision ending the authorization described above. Status: Referred to the Assembly Committee on Privacy & Consumer Protection Cal Cities Position: Watch AB 537 (Berman) Short-term lodging: advertising: rates. Would prohibit a place of short-term lodging, from advertising or offering a room rate that does not include all taxes and fees required to book or reserve the short-term lodging. The bill would make a knowing violation of those provisions subject to a specified civil penalty not to exceed $10,000 and would authorize an action to enforce those provisions to be brought by a city attorney, district attorney, or the Attorney General. Status: Referred to the Assembly Committees on Business & Professions and Judiciary Cal Cities Position: Watch SB 532 (Wiener) Ballot measures: local taxes. Current law requires that the ballots used when voting upon a measure proposed by a local governing body or submitted to the voters as an initiative or referendum measure, have printed on them a true and impartial statement describing the purpose of the measure. If the proposed measure imposes a tax or raises the rate of a tax, current law requires the ballot to include in the statement of the measure the amount of money to be raised annually and the rate and duration of the tax to be levied. This bill would exempt from this requirement a measure that imposes or increases a tax with more than one rate or authorizes the issuance of bonds. Status: Referred to the Senate Committees on Governance & Finance and Elections & Constitutional Amendments Cal Cities Position: Watch SB 676 (Allen) Responsible Pool Disinfection and Water Conservation Act: local tax authorization. Would authorize a county to levy a tax by ordinance, approved by a 50% vote of the electors, at a rate of no more than $0.30 per tablet, on the sale within its jurisdiction of trichlor tablets. Status: Not yet referred to policy committee Cal Cities Position: Watch SB 721 (Becker) Special taxes: vacant land. May be acted upon on or after March 19. The California Constitution generally conditions the imposition of a special tax by a city, county, or special district upon the approval of 2/3 of the voters of the city, county, or special district voting on that tax. Under current law, a charter city, pursuant to its constitutional authority Item 12 Attachment B - California Legislative Update for Local Taxes Item 12: Staff Report Pg. 18 Packet Pg. 181 of 259 over municipal affairs, may levy local taxes to raise revenues for local purposes, subject to restrictions imposed by that city’s charter or preemption in matters of statewide concern. Current law also authorizes the legislative body of any city to levy any tax which may be levied by any charter city, subject to the voters’ approval pursuant to the California Constitution. Current law specifies procedural requirements for the legislative body of a city, county, or district to propose to the voters an ordinance or resolution to adopt a special tax. This bill would specify that, as used in those procedural requirements, a special tax includes a tax, levied by any city, including a charter city, county, or district on vacant sites included in the inventory on land suitable and available for residential development pursuant to the housing element of a county’s or a city’s long-term general plan, that meets the constitutional requirements. Status: Not yet referred to policy committee Cal Cities Position: Watch SB 798 (Glazer) Elections: local bond measures: tax rate statement. Current law requires local governments, when submitting a measure for voter approval for the issuance of bonds that will be secured by an ad valorem tax, to provide voters a statement that includes estimates of the tax rates required to fund the bonds. Under current law, the estimated tax rate is expressed as the rate per $100 of assessed valuation on all property to be taxed to fund the bonds. This bill would instead require that the estimated tax rate in the statement be expressed as the rate per $100,000 of assessed valuation on all property to be taxed to fund the bonds. Status: Not yet referred to policy committee Cal Cities Position: Watch Item 12 Attachment B - California Legislative Update for Local Taxes Item 12: Staff Report Pg. 19 Packet Pg. 182 of 259 1 6 7 7 CITY COUNCIL STAFF REPORT From: City Manager Report Type: INFORMATION REPORTS Lead Department: Public Works Meeting Date: May 1, 2023 Report #: 2302-0932 TITLE Semiannual Update on the Status of Capital Improvement Program Projects RECOMMENDATION This report is provided for information only and requires no Council action. EXECUTIVE SUMMARY The City Council and Palo Alto community can be proud of the City’s capital improvement program (CIP). The CIP represents major investments in infrastructure functionality and sustainability, funded largely through the 2014 Council Infrastructure Plan as well as utility rates and various other sources. The 2023-2027 five-year CIP totaled $821.9 million for 190 projects as reviewed by the Council in its adoption of the FY 2023 Capital Budget. Since July 2016, the City of Palo Alto has completed 91 individual community-serving projects totaling over $295 million in improvements. The CIP also represents a major effort for much of the City workforce. The following table summarizes the status of all projects for the six-month period of July to December 2022. Active Projects Project Type One-Time Recurring Construction Phase (excludes Recurring) Completed Buildings & Facilities 18 10 6 2 Parks & Open Space 12 9 -1 Streets & Sidewalks 3 8 -- Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 1 Packet Pg. 183 of 259 1 6 7 7 Traffic & Transportation 10 5 2 - Airport 5 -2 - Electric Fund 16 9 4 - Fiber Optics Fund 1 2 -- Gas Fund 2 4 1 1 Stormwater Management Fund 4 2 -- Water Fund 5 7 2 - Wastewater Collection Fund 2 4 1 - Wastewater Treatment Fund 8 1 2 - Totals 86 61 20 4 BACKGROUND This report provides Council with an update on the status of capital improvement program (CIP) projects and does not include Internal Service Funds Capital Projects (Information Technology and Vehicle). Prior to 2016, year-end and mid-year financial reports included very simple status updates on CIP projects. In contrast, this semiannual report provides more detailed and useful information for the Council and public regarding general fund and enterprise fund projects that appear on Council agendas and will be visible throughout the community. ANALYSIS Project Update Organization The City of Palo Alto has a robust capital improvement program, and many individual projects are in progress at any given time. The 2023-2027 five-year CIP totaled $821.9 million for 190 projects as reviewed by the Council as part of the Adoption of the FY 2023 Capital Budget. The attached CIP project tables are intended to provide Council with a quick overview of each project, including budgetary information, the anticipated completion date, a brief description of the project scope, the status of the project, and upcoming activities including Council actions. Also included in the report is a list of all completed projects since the introduction of the Infrastructure Management System. Major/Significant Projects Summary The 2014 Council Infrastructure Plan is a major focus of staff’s capital improvement program efforts. The following table details the Total Project Budget and Total Actual Expenses through Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 2 Packet Pg. 184 of 259 1 6 7 7 the first half of Fiscal Year 2023 for the Infrastructure Plan projects. Significant milestones have been achieved on the Infrastructure Plan projects since June 2020, even though construction delays occurred due to the COVID-19 pandemic. Council Infrastructure Plan Projects CIP Number Update Total Project Budget Total Actual Expenses* New Public Safety Building PE-15001 Construction is underway with completion expected in fall 2023.$118,037,804 $89,622,125 Bicycle and Pedestrian Transportation Implementation Plan PL-04010 Project on hold pending recent project evaluation and review of future project scoping. $15,276,377 $9,526,878 New Downtown Parking Garage PE-15007 Council directed staff to look at the feasibility of partnering with a private entity to develop new parking using downtown in-lieu parking fees in conjunction with housing or other uses, including the use of City surface lots or privately held parcels. A Request for Information was issued in December 2022 and staff is currently reviewing proposals. $7,188,899 $1,440,311 New California Avenue Area Parking Garage PE-18000 Completed $50,179,952 $49,376,203 Charleston Arastradero Corridor Project PE-13011 Phase 1 & 2 improvements are complete. Phase 3 construction is underway with completion expected fall 2023. $20,788,951 $19,199,414 Fire Station 3 Replacement PE-15003 Completed $10,588,654 $10,588,654 Highway 101 Pedestrian/Bicycle Overpass Project PE-11011 Completed $23,718,769 $23,718,769 Fire Station 4 Replacement PE-18004 Schematic design has been completed and an Architectural Review Board study session and community meeting were held in February and March 2023, respectively. $10,167,779 $506,385 Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 3 Packet Pg. 185 of 259 1 6 7 7 *Expenses as of April 17, 2023 The last phase of the Charleston/Arastradero Corridor project and the Public Safety Building project are expected to be completed fall 2023.. Current Infrastructure Plan project schedules can be found at https://www.infrastructure.cityofpaloalto.org/ Key considerations for the information presented in the project update tables include: · Project status information is current as of December 2022 · The individual project tables align with the Capital Improvement Fund categories in the Fiscal Year 2023-2027 capital budget: Buildings and Facilities, Parks and Open Space, Streets and Sidewalks, and Traffic and Transportation. Enterprise Fund projects follow the order of their respective Fund in the capital budget · Department Technology Upgrades and Improvements projects and Cubberley Property Infrastructure Fund projects are included in the Buildings and Facilities table · Additional project information is available in the Fiscal Year 2023-2027 capital budget · Each project table is divided into a section for one-time projects and a section for recurring projects that have ongoing annual funding · Budgetary figures include staff oversight costs for projects to which staff costs have been allocated · The table of completed projects, provides a summary of all CIP projects completed since the Biannual CIP updates to council began in 2016. The data is sorted from most recent to oldest Completed Projects Projects completed in the first half of Fiscal Year 2023, since the last update in June 2022, from July 2022 to December 2022 include the following: Capital Improvement Fund (general fund) · Automated External Defibrillator Replacement (FD-21000) · Magical Bridge Playground Rubber and Synthetic Turf Resurfacing (PE-21003) · Municipal Service Center A, B and C Roof Replacement (PF-17000) Byxbee Park Completion PE-18006 On hold pending completion of Baylands Comprehensive Conservation Plan. $3,699,189 $368,192 Downtown Parking Guidance System PL-15002 A design/build contract was approved by Council in August 2021 but could not be bonded by the Contractor. A new design/build RFP was issued in June 2022 and a new contract will be brought to Council for approval in May. $2,815,468 $327,738 Total Project Budget and Total Actual Expenses $262,461,842 $204,674,669 Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 4 Packet Pg. 186 of 259 1 6 7 7 Gas Fund: · Gas Main Replacement Project 23 (GS-13001) These completed projects do not include the significant amount of annual work completed under ongoing recurring projects, such as streets and sidewalks repairs, parking lot maintenance, roofing replacements, and regular maintenance of Utilities assets. Below are some photos of completed projects: Magical Bridge Playground Rubber and Synthetic Turf Resurfacing (PE-21003) Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 5 Packet Pg. 187 of 259 1 6 7 7 One-Time Projects Under Construction or underway Projects that are currently underway include the following: Capital Improvement Fund (general fund): · Charleston-Arastradero Corridor Project (PE-13011) · City Facilities Assessment and Record Plan Management System (PE-20002) · Civic Center Fire Life Safety Upgrades (PE-18016) · Civic Center Waterproofing Study and Repairs (PE-15020) · JMZ Renovation (AC-18001) · New Public Safety Building (PE-15001) · Parking Management and System Implementation (PL-16002) · Water, Gas, Wastewater Office Remodel (PE-19001) Airport Fund · Airport Apron Reconstruction (AP-16000) · Airport Layout Plan (AP-21000) Electric Fund · Inter Substation Line Protection Relay (EL-17005) · Rebuild Underground District 24 (EL-10006) · Smart Grid Technology Installation (EL-11014) · Substation Physical Security (EL-16003) Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 6 Packet Pg. 188 of 259 1 6 7 7 Gas Fund · Gas Main Replacement Project 24 (GS-14003) Wastewater Collection Fund · Wastewater Collection System Rehabilitation Augmentation Project 30 (WC-17001) Wastewater Treatment Fund · Plant Master Plan (WQ-10001) · Primary Sedimentation Tank Rehabilitation (WQ-14003) Water Fund · Water Main Replacement Project 28 (WS-14001) · Water Tank Seismic System Upgrades (WS-09000) As described above for completed projects, the list of projects under construction does not include work currently being conducted under recurring CIP projects. Below are some photos of projects under construction: New Public Safety Building (PE-15001) Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 7 Packet Pg. 189 of 259 1 6 7 7 Public Safety Building Update The Public Safety Building project made significant progress in the first half of Fiscal Year 2023. The concrete structure is completed. Interior mechanical, electrical, plumbing and fire protection systems are being installed and exterior cladding and window installation are in progress. As of December 2022, construction is 70% complete and 60% of the project’s construction contingency has been used. Staff continues to coordinate with the City Auditor, Baker Tilly, on the Public Safety Building Construction Audit by providing project documents on a monthly basis. Staff started work on procurement packages for Furniture, Fixtures, and Equipment (FF&E) and will be coming to Council for contract approvals starting this spring. Additionally, a cross-departmental staff team is meeting monthly to review and coordinate construction of the Public Safety Building and other projects in the California Avenue area, with a goal of communicating and mitigating the impacts. Boulware Park Improvements Update The Boulware Park Improvements project is of particular community interest as it will both improve the existing park and incorporate the Birch Street property acquired by the City in Fiscal Year 2019 into the park. Design of the project is complete. It is expected to go out to bid in spring 2023, with construction beginning in summer 2023. Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 8 Packet Pg. 190 of 259 1 6 7 7 Capital Improvements of Note Implemented by Other Agencies El Camino Real: El Camino Real (State Highway 82) is maintained by Caltrans. Pavement Condition Index scores for El Camino Real are significantly lower than the average for Palo Alto streets. Staff has been communicating with Caltrans about the upcoming plans to repave El Camino Real from the Mountain View to Menlo Park borders. Currently, this work is planned to start in fall 2023. Caltrain Electrification: FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ATTACHMENTS APPROVED BY: Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 9 Packet Pg. 191 of 259 ATTACHMENT A DECEMBER 2022 Semiannual Update on the Status of Capital Improvement Program Projects Improvement Fund CIP Projects Buildings and Facilities Projects Parks and Open Space Projects Streets and Sidewalks Projects Traffic and Transportation Projects Enterprise Fund CIP Projects Airport Projects Electric Projects Fiber Optics Projects Gas Projects Stormwater Management Projects Wastewater Collection Projects Wastewater Treatment Projects Water Projects List of Completed Projects Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 10 Packet Pg. 192 of 259 Buildings and Facilities Projects Status as of December 2022 One‐Time Projects Animal Shelter (PE‐19002) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $2,916,383 $4,041,156 Public Works Design Summer 2023 Project Status: This project installs interim facility improvements to the Animal Shelter that accompany the for operation of the shelter by Pets in Need approved by City Council in November 2018. The medical upgrades and the modular office building are complete. The new kennel addition has been submitted for permit. Project was placed on hold following receipt of Pets‐In‐Need's letter providing one‐year of termination of the agreement between Pets‐In‐Need and the City. Public Works and Community Department staff are reviewing the project as negotiations continue on a new agreement. Automated External Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Defibrillator (FD‐21000) $167,019 $237,500 Fire Department Completed Summer 2022 Project Status: This project replaces the entire complement of Automated External Defibrillators (AEDs) City facilities and emergency response vehicles, which currently totals 93 AEDs. The RFP process was in fall 2021 and the contract is currently underway. The new AEDs have been purchased and were in summer 2022. City Facilities and Plan Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $344,687 Public Works Construction Summer 2023 Project Status: The Kitchell Report in 2008 summarized the last City‐wide facility condition assessment. A new condition assessment is warranted per the City’s APWA reaccreditation requirements. All City facilities will assessed to bring current the “catch‐up” and “keep up” costs. In addition, an electrification assessment will be to help the City reach its sustainability goals for 2030. Staff is evaluating if the current asset management can be utilized to meet the needs of an Electronic Records Management System. Council awarded the in April 2022. The Facility Condition and Electrification assessment started with pilot projects at the (PE‐20002) Buildings and Facilities Projects – Page 1 of 10 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 11 Packet Pg. 193 of 259 Buildings and Facilities Projects Status as of December 2022 Municipal Service Center and the Cubberley Community Center Complex. The remainder of all city facilities are currently underway and are expected to be completed in summer 2023. City Hall Space Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $8,960 $667,600 Public Works Pre‐Design Fall 2024 (PE‐19000)Project Status: This project involves space planning to determine future workgroup space needs and programming the City Hall office building focused primarily on the areas that will be vacated once the new Public Safety is complete and occupied. The project will include preliminary design of the space following the initial phase. A Request for Proposals (RFP) is being drafted and is expected to be released in spring 2023. Civic Center Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Electrical Upgrade EV Charger $464,772 $1,347,615 Public Works Design Spring 2025 Project Status: This project installed EV chargers in existing downtown garages and will replace the aging Civic electrical switchgear and motor control centers. Five new dual head EV chargers were installed in the Civic garage. Two new dual head EV chargers were installed in the Bryant Street garage. Six new dual head EV were installed at the Webster Street garage. EV charger construction was completed in December 2021. contract was awarded in June 2021 for the design of the Civic Center switchgear replacement and is currently at 50 percent design stage. Lead times on switch gear are now taking 12 months, so the project completion date been extended. (PE‐17010) Civic Center Fire Safety Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $290,975 $680,837 Public Works Construction Spring 2023 Upgrades (PE‐18016) Project Status: This project will assess, update, and replace the Civic Center fire alarm system. The fire life safety is approaching the end of its useful life. The fire alarm panel and associated equipment need an upgrade meet current code requirements. The award of a design‐build contract was approved by Council in June 2021 Buildings and Facilities Projects – Page 2 of 10 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 12 Packet Pg. 194 of 259 Buildings and Facilities Projects Status as of December 2022 and design was delayed due to staffing shortages at the design‐build firm. Construction started in December and expected to be complete by May 2023. Civic Center Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Waterproofing and Repairs (PE‐15020) $378,974 $746,148 Public Works Construction Summer 2024 Project Status: This project includes a condition assessment of the Civic Center plaza deck structural system. In 2016, RDH Building Science, Inc. determined that the expansion joint on the plaza could be repaired. The expanded to include replacing the waterproof coatings on the inside of the plaza perimeter planter boxes. on the waterproofing joint started in May 2022 and was completed in December 2022. Staff will start for a design contract in spring 2023 to focus the repair on the perimeter planter boxes. Extrication Tool (FD‐22000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $298,200 Fire Department Procurement Winter 2023 Project Status: This project provides funding for the replacement of all extrication tools for the Fire Department. tools, also known as "Jaws of Life", are used to rescue victims of car accidents and other emergencies the victims are trapped in confined spaces. Some equipment has been purchased in summer 2022, and staff working with the Purchasing Department to complete orders for all additional equipment. It is expected to be use by winter 2023. Fire Station 4 (PE‐18004) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $506,385 $10,167,779 Public Works Design Fall 2025 Project Status: This project provides funding to replace Fire Station #4 at the corner of Middlefield Road and East Drive. Consultant contract for design was approved by Council in spring 2022. Schematic design is and the Consultant has submitted for preliminary architectural review. Consultant will then proceed design development through early 2023. The new Fire Station design will obtain a minimum of LEED Silver Buildings and Facilities Projects – Page 3 of 10 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 13 Packet Pg. 195 of 259 Buildings and Facilities Projects Status as of December 2022 JMZ Renovation (AC‐18001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $3,487,230 $4,862,975 Community Services Construction Spring 2024 Project Status: This project provided for the relocation of the Junior Museum and Zoo to Cubberley for two years a new JMZ was being built, tenant improvements to the Cubberley Auditorium and then removal of tenant post‐construction. Construction of the new Junior Museum and Zoo was completed and opened the public on November 12, 2021. Staff are working with purchasing to complete orders for final equipment contracts for some limited improvements, acquiring collections, and completing exhibits planned to open in An additional federal grant associated with this CIP funds a portion of the exhibition, California Dinosaur which will open in fall 2023 with grant activities completed in spring 2024. Library Automated Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Material Handling $123,085 $1,053,917 Library Design Winter 2023 LB‐21000 Project Status: This project is to provide the design and construction of three new Automated Material Handling Systems for the College Terrace, Children’s, and Downtown Libraries. AMH systems efficiently sort library materials based on the Radio Frequency Identification Devices (RFID) on the materials. Project is complete. Children’s Library is to be constructed first. Municipal Service A, B, & C Replacement (PF‐17000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,766,928 $2,013,475 Public Works Completed Fall 2022 Project Status: This project will replace the existing MSC roofs. The existing asphalt and gravel roofs have reached end of their useful life and need to be replaced. The new roofs will meet current cool roofing codes to optimize efficiency. Construction was completed in November 2022. Municipal Service Lighting, Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,006,106 $8,099,991 Public Works Design Fall 2024 Buildings and Facilities Projects – Page 4 of 10 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 14 Packet Pg. 196 of 259 Buildings and Facilities Projects Status as of December 2022 Mechanical, and (PF‐16006) Project Status: This project replaces original mechanical, electrical, and lighting systems installed in 1966. It also design and construction for office renovations for the Zero Waste group. Design is in progress with the that was awarded on June 20, 2022. Lead times on switch gear are now taking 12 months, so the project date has been extended. New Downtown Garage (PE‐15007) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,440,311 $7,188,899 Public Works Design Spring 2024 Project Status: This project was intended to provide a new parking structure in the University Avenue commercial at existing Parking Lot D at the corner of Hamilton Avenue and Waverley Street. As part of the FY 2021 budget all Capital Improvement Fund funding has been removed and only the downtown parking in‐lieu fee remains for this project. In December 2021, Council directed staff to look at the feasibility of partnering a private entity to develop new parking using downtown in‐lieu parking fees in conjunction with housing or uses, including the use of City surface lots or privately held parcels. A Request for Information was released early 2023 for proposals for downtown new parking, house and other uses. New Public Safety Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $89,622,125 $ 118,037,804 Public Works Construction Fall 2023 (PE‐15001)Project Status: This project will provide a new, modern Public Safety Building (PSB) that will meet essential services and the current and future needs of the public safety departments. The PSB and new garage in the Avenue business district are now an integrated project and both are part of the 2014 Council Plan. Construction on the PSB started in March 2021 and will continue through fall 2023. The structure is completed. Interior mechanical, electrical, plumbing, and fire protection systems are being Exterior cladding and window installation is in progress. The utility yard structures framing is nearly Buildings and Facilities Projects – Page 5 of 10 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 15 Packet Pg. 197 of 259 Buildings and Facilities Projects Status as of December 2022 Performing Arts Seat (AC‐18000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $115,892 $1,170,599 Community Services Design Summer 2023 Project Status: This project will replace all the seats in the Community and Children’s Theatres. Staff hired a to design the seat replacements and ADA upgrades for the Children’s Theater’s portion of the project. funding was added for FY 2023 to handle the Community Theater portion. The Children’s Theater replacement was completed in November 2022. A design contract for the Community Theater seat project is being drafted. Roth Building 1 Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $0 $11,000,000 Public Works Design Summer 2024 Project Status: This project provides funding for Phase 1 of the rehabilitation and build‐out of the Roth Building Phase I will make the building suitable for occupancy, also known as a “warm shell.” Phase II of the includes the interior build‐out of the museum and exhibits, readying the facility to welcome visitors, will be fully funded by the Palo Alto Museum (PAM). (PF‐23001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $475,829 $1,234,354 Public Works Construction Spring 2023 Buildings and Facilities Projects – Page 6 of 10 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 16 Packet Pg. 198 of 259 Buildings and Facilities Projects Status as of December 2022 Water, Gas,Project Status: This project incorporates renovations to the Utilities Water Gas Wastewater (WGW) office space Wastewater Office at the Municipal Service Center (MSC). The current space no longer meets the operational needs of the Remodel (PE‐19001) department. This project reconfigures the space in a more efficient design for department operations and to aging furniture and finishes. The new work area will include a small reception area, a renovated kitchen printer area, additional offices and cubicles, upgrades to the HVAC system, lighting improvements and fire life systems upgrade. A construction contract was awarded in September 2022 and is currently on schedule to completed in the spring of 2023. Recurring Projects Americans With Act Prior Year Actuals Current Year Budget $77,218 $1,666,100 Implementing Department Project Phase Project Completion Public Works N/A Recurring Project Status: This project provides accessibility upgrades to City facilities and equipment. It includes continued for improvements such as path of travel, restrooms, drinking fountains, and counters. An updated ADA Plan was adopted by Council in June 2021. Staff set up Sharepoint for internal access to the ADA Plan in order to track and document the City’s progress. Staff is waiting to solicit for new software that allow staff to identify and log new barriers, track grievances from the public, and update the ADA Transition Report. (PF‐93009) Building Systems (PF‐01003) Prior Year Actuals Current Year Budget $284,898 $1,165,800 Status: This project provides electrical, mechanical, plumbing, structural, and security upgrades for City facilities. This CIP was partially defunded because of COVID budget cuts. The new cooling tower media replacement originally scheduled for winter 2020 has been delayed until FY 2024. Design drawings for the UCC generator project are complete. The tennis and pickle ball courts lighting and controls upgrade project were completed in March Implementing Department Project Phase Project Completion Public Works N/A Recurring Buildings and Facilities Projects – Page 7 of 10 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 17 Packet Pg. 199 of 259 Buildings and Facilities Projects Status as of December 2022 2022. Contractor for re‐plastering the Rinconada Lap Pool and Children’s Pool has been selected. Construction is to start in March 2023. Design for Fire Station 8 emergency generator installation is complete and a air‐cooled chiller for the Utilities Control Center was installed. City Facility Lot (PE‐09003) Prior Year Actuals Current Year Budget $55,168 $247,400 Status: This project maintains parking lots and walkways at City facilities. No work was planned for FY Implementing Department Project Phase Project Completion Public Works N/A Recurring 2023. Cubberley Repairs Prior Years Actuals Current Year Budget Implementing Department Project Phase Project Completion Public Works N/A Recurring(CB‐17001)$27,206 $1,082,000 Project Status: This project is for general maintenance needs of the Cubberley campus. Staff is currently re‐ assessing water damage to the gymnasium following crawlspace flooding in early 2022. Cubberley Roof (CB‐16002) Prior Year Actuals Current Year Budget $410,102 $2,102,600 Status: This project replaces existing roofs at Cubberley Community Center. The roof replacement work from the previous year for Wings F and FH was completed in April 2022. The roof for Wing H was completed September 2022. Implementing Department Project Phase Project Completion Public Works N/A Recurring Electric Charger Prior Year Actuals Current Year Budget $0 $310,900 Status: This project provides design and construction funding for the installation of electric vehicle chargers Implementing Department Project Phase Project Completion Public Works N/A Recurring (PF‐23000)at various City facilities. The primary use of the electric vehicle chargers will be for City fleet vehicles. Buildings and Facilities Projects – Page 8 of 10 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 18 Packet Pg. 200 of 259 Buildings and Facilities Projects Status as of December 2022 Facility Interior Prior Year Actuals Current Year Budget $449,289 $504,500 Implementing Department Project Phase Project Completion Public Works N/A Recurring Replacement (PF‐02022) Project Status: This project improves the interior finishes of City facilities, including flooring, walls, cabinets, paint, ceiling tiles, soundproofing, and fixed office furniture, doors, windows, and associated fire/life safety, electrical and plumbing code compliance requirements. Remodel of the City Auditor’s Office was completed to create more meeting spaces, transient staff desk stations, and a mother’s nursing room. of modifications to the Revenue Collections office area on Level G was delayed due to staffing workloads will begin in spring 2023. Police Video Prior Years Actuals Current Year Budget Implementing Department Project Phase Project Completion Recording Systems $69,270 $133,200 Police Department N/A Recurring Replacement (PD‐20000) Project Status: This project maintains the Palo Alto Police Department video recording systems used to record in the field with up to five in‐car cameras as well as body‐worn cameras (BWC). In‐car units were added to vehicles as they came into service in FY 2023 and BWC cameras were replaced throughout the year. Purchasing be issuing an RFP in FY2023 for all aspects of the program. The program will seek to include all detention in the Public Safety Building which is expected to come online in late 2023. Roofing (PF‐00006) Prior Year Actuals Current Year Budget $58,443 $1,423,000 Implementing Department Project Phase Project Completion Public Works N/A Recurring Project Status: This project replaces existing roofs at City facilities that have outlived their useful lifespans. The Shelter roof recoating has been delayed due to roof modifications required for the current remodel of the Staff is working on the design for the Peers Park Field House roof replacement. The project to repair the and gutter at Mitchell Park Library was completed in October 2022. The Peers Park Field House roof was completed in November 2022. Buildings and Facilities Projects – Page 9 of 10 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 19 Packet Pg. 201 of 259 Buildings and Facilities Projects Status as of December 2022 University Avenue Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Parking $63,179 $111,000 Public Works N/A Recurring Improvements (PF‐14003) Project Status: This project maintains parking lots and parking structures within the University Avenue Downtown Parking District. With the completion of work on Parking Lot C in spring 2019, all University Avenue parking lots have been resurfaced and no additional work is planned at this time. Buildings and Facilities Projects – Page 10 of 10 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 20 Packet Pg. 202 of 259 Parks and Open Space Projects Status as of December 2022 One‐Time Projects Boulware Park (PE‐17005) Prior Years Actuals Total Project Budget Implementing Department $480,088 $4,427,698 Public Works Project Phase Project Completion Design Summer 2024 Project Status: This park renovation project was initially planned in FY 2018 but was postponed due to project priorities potential purchase of the adjacent AT&T lot located at 3350 Birch Street. In fall 2019, the lot was purchased by City. In response to the purchase, the City utilized the funding for the initial renovation project for preliminary and outreach for both the existing park and the newly purchased park land. A Park Improvement Ordinance for improvements was adopted by the City Council in October 2021. The project is anticipated to go out to bid in 2023 and begin construction in spring 2023. Byxbee Park (PE‐18006) Prior Years Actuals Total Project Budget Implementing Department $368,192 $3,699,189 Public Works Project Phase Project Completion Pre‐Design Spring 2025 Project Status: This project allows for the remaining improvements to Byxbee Park that follows the completion of the capping work. The Baylands Comprehensive Conservation Plan (BCCP), which is currently undergoing CEQA will include recommendations on the scope of the Byxbee Park project. The BCCP and the conceptual plan for Park need additional outreach and review that would continue through FY 2023. The project has been moved fiscal year 2024 due to staffing constraints. Cameron Park (PG‐14002) Prior Years Actuals Total Project Budget Implementing Department $150,618 $236,418 Community Services Project Phase Project Completion Procurement Spring 2023 Project Status: This project upgrades and renovates safety and accessibility features at Cameron Park with a primary on the park playground. A park improvement ordinance was approved by Council in February 2021. The project out to bid in summer 2022 and construction will start in winter 2023. Parks and Open Space Projects – Page 1 of 7 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 21 Packet Pg. 203 of 259 Parks and Open Space Projects Status as of December 2022 Cubberley Field Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Restroom $220,222 $700,765 Public Works Design Winter 2023 (CB‐17002)Project Status: This project will install a new restroom in the sports field area of the Cubberley Community Center. for the project started in fall 2018 along with public outreach. Staff assessed the feasibility of on‐site utilities and reviewed design and specifications of a prefabricated restroom building to incorporate in the final for ARB review. Staff conducted outreach meetings and coordination for the potential location of the proposed Depending on the preferred restroom location, a lift station may be added to the project to pump sanitary to the City sewers. The project design will continue through FY 2023 and restroom installation is anticipated in 2024. Foothills Nature Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Pre‐design Fall 2023Preserve$0 $233,200 Public Works Boronda Lake Project Status: This project replaces an aged and deteriorating Boronda Lake Dock located in the Foothills Nature Due to staffing constraints, the design for this project is on hold until spring 2023. Replacement (OS‐18000) Foothills Nature Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Pre‐design Spring 2023Preserve Dam $0 $33,300 Public Works Project Status: This project will study a location of historic seepage from the Foothills Nature Preserve Dam at the bend in the road on the face of the dam. The seepage is very minor, but it appears to be slowly worsening. The of the seepage is suspected to be the trench backfill around the pipe that returns shallow groundwater to Lake. This project will locate and investigate the pipe and trench backfill material. Staff is monitoring and the seepage per the Department of Water Resources inspections and recommendations. Depending on ongoing investigation, an engineered solution may be required. Investigation Repairs (PE‐20000) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Parks and Open Space Projects – Page 2 of 7 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 22 Packet Pg. 204 of 259 Parks and Open Space Projects Status as of December 2022 Foothills Nature $0 $3,287,700 Public Works Design Summer 2026 Preserve (PE‐21000) Project Status: This project provides funding to repair the bridge to Sunfish Island; design and permitting costs to the footbridge in Los Trancos Valley; to replace the grade control structures along Buckeye Creek, and to new split rail fencing to protect sensitive areas, new pedestrian pathways to keep park visitors safe while along the park road, and improvements to some of the existing parking areas to make them safer and more Staff began initial work to determine City permitting, surveying, and concept planning needs. Staff anticipates concept plans and initiate design in FY 2023. Golf Course Net Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Design Summer 2024and Artificial $0 $854,900 Community Services Project Status: This project provides funding for the removal and replacement of golf course driving range netting and turf. This project is being delayed as additional ball retention needs are being assessed throughout the golf and development of a potential partnership with the First Tee of Silicon Valley for driving range and practice improvements. Replacement (PG‐18000) Magical Bridge and Turf (PE‐21003) Prior Years Actuals Total Project Budget Implementing Department $216,083 $857,380 Community Services Status: This project will replace rubberized and synthetic turf surfacing in the playground and will repair or replace play equipment including swings, climbing net, and playhouse. An IFB was issued in November 2021 and Council awarded a construction contract in spring 2022. Installation of rubberized and synthetic surfacing, replacement of climbing nets and renovation of the playhouse took place in fall 2022. Project was completed in December 2022. Project Phase Project Completion Completed Fall 2022 Ramos Park Prior Years Actuals Total Project Budget Implementing Department $248,096 $527,769 Community Services Project Phase Project Completion Design Summer 2023 Parks and Open Space Projects – Page 3 of 7 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 23 Packet Pg. 205 of 259 Parks and Open Space Projects Status as of December 2022 (PG‐14000)Project Status: This project includes safety and accessibility improvements at Ramos Park. The work includes replacing existing park playground, benches, drinking fountains, and resurfacing the basketball court playing surface. The will go out to bid in winter 2023 and construction is planned for summer 2023. Rinconada Park Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Design Spring 2024Improvements$4,772,891 $10,703,087 Public Works (PE‐08001)Project Status: This project provides upgrades to safety, site amenities, playground facilities, a new restroom, irrigation, and ADA accessibility improvements at Rinconada Park. These improvements were identified in the Long Range Plan (LRP). Phase 1 park improvements to the western half of the park were completed in spring A new restroom that was removed from the Phase 1 park improvements in FY 2022 is currently in design and The restroom installation is anticipated in FY 2024. According to the LRP, future improvement phases will improvements to the eastern half of the park by FY 2026 including pathway improvements, new restroom, ADA planting, irrigation, lighting, and site furnishings. The design and construction of a restroom building with a changing room and locker room facilities is anticipated in FY 2024. Robles Park (PE‐18015) Prior Years Actuals Total Project Budget Implementing Department $0 $749,500 Public Works Status: This project provides funding for the replacement of play equipment and resurfacing in two children’s playground areas; repairs to a basketball court and adjacent concrete wall; and replacement of perimeter fencing, pathways and other site amenities. Irrigation renovations and turf restoration are also included in this project. The project design is anticipated in FY 2023 and construction in FY 2024. Project Phase Project Completion Design Summer 2024 Parks and Open Space Projects – Page 4 of 7 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 24 Packet Pg. 206 of 259 Parks and Open Space Projects Status as of December 2022 Recurring Projects Art in Public Prior Year Actuals Current Year Budget Implementing Department Project Phase $249,882 $2,004,800 Community Services N/A Project Completion Recurring (AC‐86017)Project Status: This project provides the ongoing temporary and permanent artworks throughout the City. The FY budget funded a second round of temporary murals at the Public Safety Building construction site, the of artworks along the Charleston‐Arastradero corridor, ten new ArtLift microgrant projects, artist barricade covers in commercial corridors, and temporary artwork in Midtown. Projects in process include ongoing King Artist‐in‐Residence including temporary artwork for King Plaza, design development for artwork at Park, , permanent artworks at the Public Safety Building, design development for permanent artwork at Station 4, initiation of artist selection for Code: ART festival 2023, and implementation of the California Avenue Art Plan. Athletic Courts (PG‐06001) Prior Year Actuals Current Year Budget Implementing Department Project Phase $154,167 $314,500 Community Services N/A Status: This project repairs and resurfaces athletic courts in various Palo Alto parks. The resurfacing of the Project Completion Recurring tennis courts at Cubberley Community Center and Peers Park were completed in summer 2022. Benches, Signage, Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Walkways, (PG‐06003) $192,682 $194,300 Community Services N/A Recurring Project Status: This project restores and replaces existing benches, signage, fencing, walkways, and landscaping at City facilities. In fall 2022, a contract for the repair and resurfacing of the Lytton Plaza fountain was issued repair is scheduled for winter 2023. In December 2022, site amenities improvements to the Peers Park dog park completed including installation of waste receptacles and seating benches. Parks and Open Space Projects – Page 5 of 7 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 25 Packet Pg. 207 of 259 Parks and Open Space Projects Status as of December 2022 Dog Park Prior Year Actuals Current Year Budget Implementing Department Project Phase $54,136 $161,000 Community Services N/A Project Completion RecurringInstallation and (PG‐18001) Project Status: This project enables the construction of dog parks at various City parks and facilities that currently not have dog parks, as well as renovating existing dog parks. A new dog park will be added at Boulware Park the Boulware Park Improvement Project scheduled for summer 2023. Council approved a Park Improvement on September 12, 2022 for expansion of the Mitchell Park Dog Park and construction is anticipated to in fall 2023. Off‐Road Pathway Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Resurfacing and $218,305 $168,000 Public Works N/A Recurring Project Status: This project resurfaces failing and broken pathways within the City. Pathways are chosen based on (OS‐09001)inspections and resident requests. No repairs were performed in first half of FY 2023. Open Space Lakes Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion and Pond $31,454 $50,000 Community Services N/A Recurring Maintenance (OS‐00002) Project Status: This project rehabilitates lakes and ponds in open space nature preserves to protect wildlife habitat recreational safety and to meet State Division of Safety of Dams requirements. Year two of a three year contract is in place for removal of aquatic vegetation in Boronda Lake and is scheduled for spring 2023. Open Space Trails Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion and Amenities $371,335 $207,300 Community Services N/A Recurring (OS‐00001)Project Status: This project restores unpaved trails, fences, picnic areas, and campgrounds at Foothills, Baylands, Pearson‐Arastradero Nature Preserves Work performed in fall 2022 included grooming trail tread and trailside of 25 miles of existing trails at Foothills Nature Preserve and Pearson‐Arastradero Preserve. Parks and Open Space Projects – Page 6 of 7 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 26 Packet Pg. 208 of 259 Parks and Open Space Projects Status as of December 2022 Parks and Open Emergency Prior Year Actuals Current Year Budget Implementing Department Project Phase $152,778 $305,400 Community Services N/A Status: This project replaces or repairs playgrounds, play yard surfaces, wooden structures, park amenities, and play equipment in the event of storms, fire, vandalism or structural failure. In December 2022, the artificial turf infill at the Mayfield Soccer Complex will be replaced due to degradation of existing infill material. Project Completion Recurring (PG‐09002) Park Restroom Prior Years Actuals Current Year Budget Implementing Department Project Phase $35,606 $363,800 Community Services N/A Project Completion Recurring (PG‐19000)Project Status: This project installs new restrooms at City parks that currently do not have restroom facilities. The may be prefabricated. City Council approved a Park Improvement Ordinance for Ramos Park for park and construction of a restroom. The restroom is anticipated to be installed in FY 2024. Parks and Open Space Projects – Page 7 of 7 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 27 Packet Pg. 209 of 259 Streets and Sidewalks Projects Status as of December 2022 One‐Time Projects California Avenue Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion District Gateway (PE‐17004) $23,324 $150,488 Public Works Design Summer 2022 Project Status: This project includes the design and replacement of two existing gateway signs for the California business district. Public outreach was completed in winter 2021. The California Avenue District Gateway project is on hold pending the outcome of project PL‐23000 California Avenue Streetscape Update. Newell Road Prior Years Actuals $2,211,606 Total Project Budget $16,627,643 Implementing Department Project Phase Project Completion Public Works Design Spring 2024 Francisquito Bridge (PE‐12011) Project Status: This project removes and replaces the Newell Road bridge over San Francisquito Creek with a clear to allow the channel to convey up to the natural capacity of the San Francisquito Creek, approximately 7,500 cubic feet per second, and improved safety for vehicular, bicycle, and pedestrian traffic. The project is being closely coordinated with the City of East Palo Alto, Santa Clara Valley Water District, and the San Francisquito Creek Joint Authority (JPA). The Bridge Type Selection Report was submitted to Caltrans in September 2021 and in January 2022. Staff continues to work with Santa Clara Valley Water District to amend the funding and anticipates taking the agreement to Council for approval early 2023. Final design and right‐of‐way easements work will start in early 2023 along with continued coordination with JPA for permitting of the Reach project. Right‐of‐way and permitting is anticipated to be completed in September 2023, with bidding of the project late 2023 and construction to start in early 2024. Street Lights Prior Years Actuals $8,799 Total Project Budget $253,098 Implementing Department Project Phase Project Completion Public Works Design Summer 2023 Assessment (PE‐13014) Project Status: This project provides funding to assess the condition of the streetlight system. The assessment will an inventory of the entire lighting system, including age and condition of conduit, wiring, street light poles, luminaires, and lighting coverage. Determining the inspection, maintenance, repair, and rehabilitation to prolong the life of the City’s streetlight system is also included in this project. Streets and Sidewalks Projects – Page 1 of 4 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 28 Packet Pg. 210 of 259 Streets and Sidewalks Projects Projects Status as of December 2022 City Bridge (PE‐20001) Prior Year Actuals Current Year Budget $108,764 $503,000 Implementing Department Project Phase Project Completion Public Works N/A Recurring Project Status: This project includes bridge inspections, maintenance, repair, and an improvement program over the five years. This program will include on‐going inspections to report physical changes to the structures, for work to be done, and additional information to meet functional and structural standards in with industry standards. Staff hired an on‐call structural engineering firm to assist with the bridge and repair program. Staff completed inspections of twenty‐five bridge and culvert structures in spring of which seven bridges have been identified for repairs in FY 2023. Staff is continuing with design of the repair for winter 2023. Curb and Gutter Prior Year Actuals Current Year Budget $116,698 $122,600 Implementing Department Public Works Project Phase Project Completion N/A Recurring (PO‐12001)Project Status: This project repairs curbs and gutters uplifted by tree roots. The FY 2022 Street Maintenance Projects replaced 555 linear feet of Type A gutter and 317 linear feet of Type B gutter in the first half of FY 2023. San Francisquito Joint Creek Prior Year Actuals Current Year Budget $56,000 $113,900 Implementing Department Public Works Project Phase Project Completion N/A Recurring Project Status: This project provides funding for studies and completion of the design for the San Francisquito Creek Powers Authority (JPA) upstream project including channel widening and Continuing Authority Program Section (CAP 205) study. Completion of the CAP 205 study will make the channel widening components eligible for funding and will help fund the construction of the upstream project and address elements of the JPA’s flood management program.(PE‐22000) Streets and Sidewalks Projects – Page 2 of 4 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 29 Packet Pg. 211 of 259 Streets and Sidewalks Projects Status as of December 2022 Sidewalk Repairs Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion (PO‐89003)$853,162 $1,452,900 Public Works N/A Recurring Project Status: This project repairs and replaces broken and uplifted sidewalks. The program completed all twenty‐ three sidewalk districts in 2017, a thirty‐year (1986–2017) sidewalk repair district cycle. Council approved a sidewalk assessment contract in November 2017 to evaluate the sidewalk program and assess potential improvements to the current district‐based program. Funding was reduced in FY 2022 as part of the FY 2022 Capital Improvement Program budget strategy. The FY 2022 Street Resurfacing Projects replaced 4,994 square feet of broken and uplifted sidewalks at locations reported through Palo Alto 311 in the first half of FY 2023. Sign Reflectivity Prior Year Actuals Current Year Budget $9,358 $106,400 Implementing Department Public Works Project Phase Project Completion N/A Recurring (PO‐11000)Project Status: This project includes the annual inventorying, upgrading and maintaining of all traffic signs. A list of not meeting the minimum requirement is derived from MUTCD approved Nighttime Visual Inspection surveys. to Covid‐19 and understaffing, there were no new signs identified for reflectivity replacement in FY 2023. Street Lights (PO‐05054) Prior Year Actuals Current Year Budget $149,149 $388,600 Status: This project replaces streetlights, including poles, pole foundations, luminaires and wiring as needed to restore or improve street lighting. In the first half of Fiscal Year 2023, there were seven knockdown locations with three completed repairs and four in progress. Implementing Department Public Works Project Phase Project Completion N/A Recurring Street (PE‐86070) Prior Year Actuals Current Year Budget $4,536,589 $5,274,700 Status: This project includes the annual resurfacing, micro‐seal, crack seal, and reconstruction of various city streets. This project funds the street maintenance work that supports Council’s adopted goal of achieving a citywide average pavement condition index (PCI) score of 85, representing very good or excellent conditions, by 2019. The Implementing Department Public Works Project Phase Project Completion N/A Recurring Streets and Sidewalks Projects – Page 3 of 4 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 30 Packet Pg. 212 of 259 Streets and Sidewalks Projects Status as of December 2022 citywide PCI goal of 85 was met at the end of calendar year 2018, and the emphasis has been shifted to maintaining 85 score while addressing the remaining streets with PCI scores less than 60. The FY 2022 Street Resurfacing is completed. The FY 2023 Street Resurfacing Project is under procurement process and is expected to start in early 2023. This will help maintain and improve the City’s Pavement Condition Index (PCI) beyond its of 83 and will address many streets whose PCI scores fall below the City’s minimum goal of 60. Thermoplastic Marking Striping (PO‐11001) Prior Year Actuals Current Year Budget $52,679 $166,800 Status: This project maintains the thermoplastic markings on roadways. Thermoplastic lane marking and striping is incorporated into annual Pavement Preventive Maintenance Projects. No new thermoplastic markings and striping were installed during FY 2023. Implementing Department Public Works Project Phase Project Completion N/A Recurring Streets and Sidewalks Projects – Page 4 of 4 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 31 Packet Pg. 213 of 259 Traffic and Transportation Projects Status as of December 2022 One‐Time Projects California Avenue Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Streetscape (PL‐23000) $0 $111,000 Office of Transportation Design Summer 2023 Project Status: The project provides funding for interim changes to the street, and for preliminary community to help inform an upcoming Request for Proposals in spring 2023 to procure a consultant for an Analysis study of different street configurations and design options. Charleston Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Public Works Construction Winter 2023Arastradero Project (PE‐13011) Project Status: This project is part of the 2014 Council Infrastructure Plan. It will reconfigure the Charleston Corridor to provide new landscaped median islands, bulb outs, enhanced bike lanes, traffic signal and new street trees to complement the new lane configurations that were approved for retention. Phase 1 (Arastradero Road between Foothill Expressway to Clemo Avenue) and Phase 2 Road from Alma Street to Middlefield Road) were completed in 2020. Phase 3 (Arastradero Road from Palos Avenue to El Camino Real, Charleston Road from El Camino Real to Alma Street and from Middlefield to San Antonio Road) was approved by Council in June 2021. Construction of Phase 3 is ongoing. The has completed paving and installing final striping on Arastradero Road from Los Palos Avenue to El Real in October 2022. The remaining median islands on Arastradero Road have been constructed and with landscaping. Construction is anticipated to be completed by early 2023. Churchill Avenue Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Office of Transportation Design Fall 2024Enhanced$315,398 Project Status: This project includes planning, design and construction of a shared‐use path along the north side of Avenue between the existing shared‐use path at Castilleja Avenue and the Stanford Perimeter Trail. It also intersection improvements at Churchill Avenue and El Camino Real, which will include a new dedicated (PL‐14000) Traffic and Transportation Projects – Page 1 of 6 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 32 Packet Pg. 214 of 259 Traffic and Transportation Projects Status as of December 2022 westbound right‐turn lane. The project is anticipated to gain PAUSD approval and will go out to bid in summer 2023. is anticipated to be completed by fall 2024. Churchill Avenue Prior Years Actuals Street $203,918 Crossing Project Status: This project is a railroad crossing improvement project to enhance safety at the intersection of Total Project Budget Implementing Department Project Phase Project Completion $5,106,881 Office of Transportation Design Winter 2024 Safety (PL‐20000) Churchill Avenue and Alma Street. This crossing was identified for possible funding for hazard elimination and safety through the Federal Section 130 funds. Design includes traffic signal modifications, street lighting roadway resurfacing, sidewalk realignment and/or widening, drainage improvements, utility signage, and striping. Staff is currently working with Caltrain, Caltrans, and California Public Utilities (CPUC). The design plans reached completion in early 2022. CPUC approved the General Order 88‐B for project in November 2022 and authorized the City to move forward with construction. Staff is preparing bid for construction to be released in early 2023. Construction is anticipated to begin in spring 2023. Downtown Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Office of Transportation Design Fall 2024 Project Status: This project includes design and installation of new downtown parking guidance systems, access and revenue collection equipment that will be coordinated with both the Downtown Parking Wayfinding, PL‐15004 project and the 2016 Downtown Parking Management. Staff contracted with Dixon Resources for management support in design and procurement for the system installation in the Downtown garages on Avenue. The Downtown Automated Parking Guidance Systems procurement will be reissued in spring Guidance Systems, Access & (PL‐15002) Traffic Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Fire Department Procurement Winter 2023 Traffic and Transportation Projects – Page 2 of 6 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 33 Packet Pg. 215 of 259 Traffic and Transportation Projects Status as of December 2022 Signal Project Status: This project will purchase and implement an emergency vehicle preemption system pilot project. system will integrate with the City’s current traffic signal management system and with the City’s computer‐ emergency response dispatch system to provide safer and quicker response times for emergency vehicles. project is a pilot on 25 intersections. The traffic signal controls software were updated in spring 2020 and staff working with our CAD and Signal System vendors to integrate the two systems for communication across the two Purchasing is drafting the contract for the plug‐in software and staff expects the project will be complete winter 2023. Preemption Pilot (PL‐19000) Parking and $137,050 Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Office of Transportation Construction Spring 2024 System (PL‐16002) Project Status: This project provides funding for the design and installation of the Comprehensive Parking Permit Citation Management System. The all‐inclusive system is a tool staff will utilize in the management of parking for eight parking permit programs and associated on and off‐street parking citations. Quarry Road Center Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Office of Transportation Pre‐Design Fall 2024 Project Status: This project includes the planning, design, and construction of bicycle, pedestrian, and transit access along Quarry Road between El Camino Real and Welch Road, including, but not limited to, upgraded lanes and crosswalks, innovative intersection treatments for bicyclists, improved access to transit stops, improvements for transit access, and signal modification. Planning, design, and construction of bicycle and pedestrian improvements between the Palo Alto Transit Center bus depot and the intersection of Quarry and El Camino Real, and between El Camino Real and Welch Road have been completed. The next phase of project will provide the transit access from Quarry Road to the Transit Center. The City is working with Stanford evaluating the land ownership and entitlements before proceeding with design of such improvements. (PL‐16000) Traffic and Transportation Projects – Page 3 of 6 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 34 Packet Pg. 216 of 259 Traffic and Transportation Projects Status as of December 2022 Railroad Grade and (PL‐17001) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $18,764,851 Office of Transportation Pre‐Design Fall 2025 Project Status: This project is a community‐based process to advance the railroad grade crossing circulation study context sensitive solutions study envisioned by the City Council. It will also fund the preparation of a Project Report and environmental analysis that will be required for the City to realize its goals of advancing grade This capital project provides funds to perform preliminary engineering design, conduct project related and to prepare environmental documents for the project. The consultant in collaboration with the prepared several conceptual plans for grade separations. Council directed staff to perform additional to review geotechnical conditions, refine the underpass/partial underpass alternatives, and to reconvene the Committee and discuss the financial considerations. The consultant contract amendment was approved in May Staff will seek Rail Committee direction in the review of additional studies for the development of Project for City Council Approval. Staff is working with VTA to allocate funding from Measure B Grade Separation for initiating the Preliminary Engineering and Environmental Phase and pursuing other Federal and State grant opportunities for these three crossings. University Ave Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Public Works Design Fall 2023 Project Status: This project includes a study to reconfigure University Avenue between Alma Street and Middlefield to adapt the public realm to maximize pedestrian and bicycle use, reduce congestion, and enhance the retail activity, while maintaining two‐way vehicular access, parking opportunities, delivery and zones, ride share spaces, and other amenities including performance space. Council awarded a professional contract for CSW/Stuber‐Stroeh Engineering in February 2022. The project uses a phased approach with 1 consisting of public outreach, conceptual design, preliminary environmental studies, and financial A preferred plan will be developed in Phase 1 based on community and stakeholders’ input. Upon of Phase 1 assessment and Council’s review of the community preferred plan, future phases including environmental assessment, bidding and construction will be developed. The City initiated the focus group (PE‐21004) Traffic and Transportation Projects – Page 4 of 6 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 35 Packet Pg. 217 of 259 Traffic and Transportation Projects Status as of December 2022 meetings in November 2022 and will continue public outreach to develop project alternatives. Phase 1 is anticipated be completed by fall 2023. Recurring Projects Bicycle and Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Pedestrian $9,526,878 $2,400,000 Office of Transportation N/A RecurringTransportation Plan (PL‐04010) Project Status: The Neighborhood Traffic Safety and Bicycle Boulevards Phase 1 Project along Amarillo Avenue, Avenue and Ross Road was completed in November 2018. Conceptual plans for the Neighborhood Traffic and Bicycle Boulevards Phase 2 Project along Bryant Street, Maybell Avenue, Stanford Avenue, Park and Wilkie Way were adopted by City Council in 2015. Currently, Phase 2 is on hold at 75% design until resources are available. Parking District (PL‐15003) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $0 $182,000 Office of Transportation N/A Recurring Project Status: This project will fund the introduction of additional parking permit programs throughout the city. aspect of this project is the City Council approved Residential Preferential Parking (RPP) ordinance to establish procedures to implement RPP districts through the process outlined in the Municipal Code 10.50. Safe Routes to Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $276,686 $849,900 Office of Transportation N/A Recurring (PL‐00026)Project Status: This project enables the City’s Safe Routes to School program, including school commute planning, activities, and capital improvements along local and collector streets that may be impacted by commute activities. The capital improvements include traffic calming devices, enhanced crosswalks, and signage along suggested safe routes to school. The community engagement and planning process for construction of the South Palo Alto Bikeways project began in FY 2021. The project will implement buffered protected bike lanes on East Meadow Drive from Alma Way to Fabian Way, Fabian Way from East Meadow Traffic and Transportation Projects – Page 5 of 6 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 36 Packet Pg. 218 of 259 Traffic and Transportation Projects Status as of December 2022 Drive to East Charleston Road, and widen and repave the Waverley Avenue Bike Path between East Meadow Drive Charleston Road. Due to lack of staff resources, the project schedule was delayed, and the City relinquished grant funds prior to expiration of funding. Staff is awaiting results of grant applications to fund In FY 2023, the project funded improved crosswalks to improve school access. Traffic Signal and Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $232,020 $673,300 Office of Transportation N/A Recurring Transportation (PL‐05030) Project Status: This project includes design and construction of traffic signals, traffic signal communications detection, and data projects for transportation use, and maintenance of the City’s traffic signal central system. The project includes the replacement of traffic signal controllers/cabinets, video detection accessible pedestrian buttons, and related field equipment. Design for traffic signal safety and improvements at the intersection of San Antonio Road and Charleston Road is nearing 100% Staff is finalizing the plans, and will be preparing bid documents for construction to be released in 2023, with construction anticipated to begin in late 2023 or early 2024. City Staff is starting the process to the Centralized Traffic Management system servers to improve operational functions and system security. Transportation and Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Parking $86,063 $1,406,403 Office of Transportation N/A Recurring Improvements (PL‐12000) Project Status: This project implements miscellaneous neighborhood traffic calming improvements including traffic studies and parking improvements. This project also funds the development of grant used to procure funding for future projects. Projects currently in progress include the Crescent Park traffic calming pilot. The conceptual plan for the traffic calming pilot project in the Crescent Park was approved by Council in November 2020. Temporary traffic calming elements were placed in summer 2021 for trial and to seek feedback from community. Staff is planning to conduct a post installation in early 2023 and plan for permanent improvements accordingly. Traffic and Transportation Projects – Page 6 of 6 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 37 Packet Pg. 219 of 259 Airport Projects Status as of December 2022 One‐Time Projects Airport Apron Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Reconstruction $35,523,554 $41,563,570 Public Works Construction Winter 2023 (AP‐16000)Project Status: This project includes the design and reconstruction of the Palo Alto Airport apron and is being in multiple phases. The need to reconstruct the aircraft parking apron is critical to airport safety. Phase I was completed in November 2017. Construction Phase II was completed in winter 2020. on Phase III began in November 2020 and the project is 95% complete. The project is expected to be in winter 2023. Airport Layout Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Construction Summer 2024Plan$58,000 $1,342,500 Public Works (AP‐21000)Project Status: This project provides updates to the Airport Layout Plan (ALP), including a narrative report and study. The Airport received funding for a Phase I portion of this project in fall 2020. Phase I is 75% complete, and funding for Phase II was received in fall 2022 and work has begun. The project expected to be completed by summer 2024. Airport AP‐22001 Prior Years Actuals Total Project Budget Implementing Department $947 $359,800 Public Works Status: This project provides funding for the installation and Furniture, Fixtures, & Equipment (FF&E) of existing temporary modular buildings at the airport to provide adequate office space for airport staff as well as terminal space for the public. A Request for Bids will be issued in spring 2023. Project Phase Project Completion Design Winter 2023 Airport Projects – Page 1 of 2 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 38 Packet Pg. 220 of 259 Airport Projects Status as of December 2022 Airport Zero Prior Years Actuals Total Project Budget Implementing Department $0 $349,200 Public Works Project Phase Project Completion Design Summer 2024 Vehicle Fleet Project Status: The Airport vehicle fleet will be replaced by three zero emissions vehicles (ZEV) and three electric stations. The van is used for the transportation of airport guests and passengers and improves safety by foot traffic on the airport apron. The truck is used as a maintenance, first response, and operations The ZEV fleet will include one passenger vehicle and two trucks. The Airport is working with the FAA to funding for the passenger van in spring 2023 and will go out for bid for the trucks again in spring 2023. (AP‐23000) Automated Prior Years Actuals Total Project Budget Implementing Department $0 $538,800 Public Works Status: This project provides a new weather information system to be installed at the Palo Alto Airport. Project Phase Project Completion Design Summer 2024 The Airport has applied for FAA funding, and is waiting for the grant agreement to start design. (AWOS) AP‐19000 Recurring Projects 2022‐2026 – Airport Capital Improvements Program Projects: There are no recurring projects scheduled at this time. Airport Projects – Page 2 of 2 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 39 Packet Pg. 221 of 259 Electric Fund Projects Status as of December 2022 One‐Time Projects 115 kV Electric Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $689,663 $6,990,040 Utilities Pre‐Design Summer 2027 (EL‐06001)Project Status: This project will perform a technical feasibility study to determine the general project requirements establish a 115 kV electric intertie line and construct a 115/60 kV substation to connect the City's electric system to the 15 kV transmission line at an additional location. Staff did not receive California Independent System commitment to support this interconnection. Staff is reassessing CPA’s position and reviewing that might be more favorable. Coleridge Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $180,813 $2,661,878 Utilities Design Summer 2025 Tennyson (EL‐14000) Project Status: This project converts the primary electric distribution system in the Coleridge Avenue, Cowper Tennyson Avenue area from 4 kV to 12 kV. This project is a precursor to work being planned for the Street and Hopkins Avenue Substations. Design is at 90% completion and is delayed due to staffing This project has been deferred to align with available staffing resources and current project priorities. Staff reassess the project next budget cycle. Colorado Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Distribution Outlet (EL‐22002) $0 $400,000 Utilities Design Summer 2023 Project Status: This project is for the installation of a new underground duct bank and cable at Colorado Substation. installation will improve reliability for all Colorado circuits. The design is in progress and construction will by early spring 2023. Colorado Power Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $4,335,869 $10,865,445 Utilities Pre‐Design Fall 2027 Electric Fund Projects – Page 1 of 8 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 40 Packet Pg. 222 of 259 Electric Fund Projects Status as of December 2022 Equipment (EL‐19001) Project Status: This project is for the upgrades to equipment at the Colorado Power substation. In FY 2022 staff the evaluation of existing equipment and will proceed with replacing the COP‐3 115 kV/60 kV bank and the 115 kV breaker. . The preliminary design is delayed due to staffing needs. Colorado Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Substation Site (EL‐19002) $250,139 $1,306,071 Utilities Design Fall 2024 Project Status: This project will make modifications to the substation driveways and fence to provide adequate and egress for utility vehicles used for maintenance and repair. Staff is preparing an overall master plan Colorado Substation to include all proposed improvements. Detailed designs for lighting, driveway, fences, and an oil containment improvement are being prepared. The design is currently in progress. East Meadow 4/12kV Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $239,819 $1,838,701 Utilities Design Spring 2025 Project Status: This project converts the primary electric distribution system in the East Charleston/Alma Meadow Drive/Middlefield Road area from 4 kV to 12 kV and is challenging because of the of the streets and rear easement facilities. This project has been split into six design and construction Engineering has completed the substructure and electrical design work for Phase 1. The engineering design Phase 2 is currently in progress. Construction for Phases 1 and 2 will be completed by spring 2023. All six phases targeted to be completed by spring 2025. Construction for this project was deferred to maintain zero rate to ease economic recovery because of COVID‐19. Phase 1 substructure construction and electric install are completed. (EL‐17001) Foothills Rebuild Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion (Fire Mitigation) $1,742,548 $4,000,000 Utilities Design Fall 2025 Electric Fund Projects – Page 2 of 8 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 41 Packet Pg. 223 of 259 Electric Fund Projects Status as of December 2022 (EL‐21001)Project Status: This project will rebuild the approximately 11 miles of overhead line in Foothills Park, as necessary mitigate the possibility of wildfire due to overhead electric lines. This could include the utilization of more robust or construction practices, rerouting to avoid vegetation and improve access for inspection and or converting the overhead lines to underground where feasible. Two proposals were received for project and both proposals were rejected because they did not provide an option to underground existing electric lines. Substructure for Phase 1 was completed in spring 2022 and the substructure for Phase 2 is in progress. Phases 3 and 4 are currently in design phase. Hopkins Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Substation 4/12 Conversion (EL‐20000) $0 $2,010,000 Utilities Design Fall 2025 Project Status: This project will convert the distribution system connected to the Hopkins Substation from 4 kV to kV. The future conversion of the Hopkins Substation from 4 kV to 12 kV requires that all the areas currently at 4 kV from the Hopkins Substation be converted to 12 kV. This project will improve operating flexibility of system, service reliability, and back‐up to customers in downtown and other adjacent areas. This project is delayed due to available staffing levels and a refocus on current priorities and customer service Inter‐Substation Line Protection Relay Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $370,372 $821,030 Utilities Construction Summer 2024 Project Status: This project replaces the existing HCB pilot wire relays with a new microprocessor line differential relay to protect the city’s 60 kV sub‐transmission line sections and equipment from damage due to (i.e. short circuits) on the 60 kV line sections. This project is being done in phases, with design and happening concurrently on the different phases. Construction of these improvements relies on work by other projects to install fiber optic connections. This project is temporarily delayed due to available levels and a refocus on current priorities and customer service projects. (EL‐17005) Electric Fund Projects – Page 3 of 8 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 42 Packet Pg. 224 of 259 Electric Fund Projects Status as of December 2022 Rebuild Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $43,348 $1,293,337 Utilities Design Fall 2027Underground 15 (EL‐11003) Project Status: This project rebuilds and replaces the underground electric system in Underground District 15, the bounded by Los Palos Avenue, Glenbrook Drive, Pomona Avenue, and Arastradero Road. This project is in the stages of engineering design and work will be coordinated with EL‐16000 which is currently rebuilding electric system along Arastradero Road. Work on this project was delayed due to public input regarding the of the project. Changes to the Rules and Regulations will require property owners to pay for the differential should they want submersible equipment instead of pad mount. This project is temporarily delayed due to staffing levels and a refocus on current priorities and customer service projects. Rebuild Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Underground 16 (EL‐13003) $28,742 $735,335 Utilities Design Spring 2027 Project Status: This project rebuilds and replaces the underground electric system in Underground District 16, area along Louis Road between Greer Street and Loma Verde Avenue. The engineering design work is This project is temporarily delayed due to available staffing levels and a refocus on current priorities customer service projects Rebuild Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Underground 24 (EL‐10006) $1,949,767 $2,525,338 Utilities Construction Fall 2024 Project Status: This project rebuilds and replaces the underground electric system in Underground District 24, the bounded by Lytton Avenue; Bryant Street; Forest Avenue; and Alma Street. This project is temporarily delayed to available staffing levels and a refocus on current priorities and customer service projects Electric Fund Projects – Page 4 of 8 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 43 Packet Pg. 225 of 259 Electric Fund Projects Status as of December 2022 Rebuild Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $36,817 $312,447 Utilities Pre‐Design Spring 2025 Status: This project rebuilds and replaces the underground electric system in Underground District 26, the area along Arastradero Road between El Camino Real and Hillview Avenue. This is a four‐phase project. The first phase design is complete. This project is temporarily delayed due to available staffing levels and a refocus on current priorities and customer service projects. Underground 26 (EL‐16000) Smart Grid (EL‐11014) Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $2,058,142 $17,674,003 Utilities Construction Fall 2024 Project Status: Council approved the Advanced Metering Infrastructure (AMI) with Sensus on October 18, 2021. project includes replacement of 30,000 electric meters and retrofit of 20,800 water and 24,200 gas meters radio endpoints to transmit meter data to the AMI network. The proof of concept phase including AMI installation, meter testing, and system integration will occur between January 2022 and June 2023. Full is anticipated to run from July 2023 through December 2024. Substation Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $1,467,555 $6,062,637 Utilities Pre‐Design Summer 2028 Replacement (EL‐17002) Project Status: This project replaces high voltage circuit breakers that interconnect the nine electric substations two power switching stations that are reaching the end of their useful life and are now underrated for their This project is being done in phases, with design and construction happening concurrently on the different Four breakers were replaced recently while anticipating the multi‐year contract procurement method. completed the construction on the first phase and is working to procure a multi‐year contract with a to complete the design and replacement of the remaining breakers. This project is temporarily delayed to available staffing levels and a refocus on current priorities and customer service projects. Electric Fund Projects – Page 5 of 8 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 44 Packet Pg. 226 of 259 Electric Fund Projects Status as of December 2022 Substation Security $1,489,198 Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $3,200,190 Utilities Construction Winter 2025 (EL‐16003)Project Status: This project installs facilities providing physical protection of electric substations from vandalism intrusion. A professional services contract was awarded to Burns & McDonnell and the study was completed. continues to implement recommendations from the study each fiscal year. Staff awarded the bid for security and lighting in July 2022. Construction will start in January 2023. Recurring Projects Communications Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Utilities N/A RecurringSystem$14 $170,000 Improvements (EL‐89031) Project Status: This project installs high frequency coaxial cable, fiber optic cable, and related equipment to communications services for traffic signal coordination, telephone links, computer data transmission, and Electric Supervisory Control and Data Acquisition (SCADA) system. This project is funding a portion of the phase of an expanded Utilities fiber optic network. The contract for design of this network was approved Council in June 2020. Staff is in the planning stages for design implementation. Electric Customer Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Utilities N/A RecurringConnections$1,255,231 $2,689,745 (EL‐89028)Project Status: This project installs services, transformers, and meters for new customers; upgrading of existing temporary service connections; and overhead and underground extensions for new or existing Projects are in many stages of design and construction to provide temporary and permanent power residential and commercial customers in Palo Alto. There are ongoing electric customer connections each year. Electric Fund Projects – Page 6 of 8 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 45 Packet Pg. 227 of 259 Electric Fund Projects Status as of December 2022 Electric System (EL‐98003) Prior Year Actuals Current Year Budget $909,344 $2,597,000 Status: This project consists of various projects that replace deteriorated facilities or install protective devices that improve the Electric Distribution System. Projects are in many stages of development to replace transformers, replace poles, replace overhead wires, and install protective devices to improve service reliability. There are ongoing electric systems improvements each year. Implementing Department Project Phase Project Completion Utilities N/A Recurring Electric Utility Prior Year Actuals Current Year Budget $172,408 $492,100 Implementing Department Project Phase Project Completion Utilities N/A Recurring Project Status: This project enhances the citywide Geographical Information System (GIS). The primary emphasis be to provide a compatible user interface and estimating software, to edit and update data which will reside the citywide GIS. This funding is also being used to pay for Utilities Electric Division’s share of cost for the of new city‐wide GIS system (ESRI) led by IT. Staff is also working directly with IT to assess GIS and the transition of the mapping information to ESRI. The data migration to ESRI’s Utility Network Model in progress. The migration for Electric is 80% complete. (EL‐02011) SCADA System Prior Year Actuals Current Year Budget $283,489 $405,674 Implementing Department Project Phase Project Completion Utilities N/A Recurring (EL‐02010)Project Status: This project upgrades the Supervisory Control and Data Acquisition (SCADA) system hardware. completed upgrade of the servers used for monitoring the utility substations and equipment in 2014. The hardware and software upgrade is in progress at the factory and work will occur in winter 2023. Prior Year Actuals Current Year Budget $264,757 $450,000 Implementing Department Project Phase Project Completion Utilities N/A Recurring Electric Fund Projects – Page 7 of 8 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 46 Packet Pg. 228 of 259 Electric Fund Projects Status as of December 2022 Substation Project Status: This project makes improvements to facilities at the electric substations in Palo Alto. Staff is on the replacement of Remote Terminal Units (RTU) at various substations, upgrading gravel and 60 kV air switches, and reconfiguring steel trusses and associated devices.Improvements (EL‐89044) (EL‐89038) Prior Year Actuals Current Year Budget $183,000 $480,000 Implementing Department Project Phase Project Completion Utilities N/A Recurring Project Status: This project makes improvements to equipment used at electric substations to protect the equipment and circuits emanating from the substation from damage due to faults (i.e. short circuits) the electric system. Underground Rebuild (EL‐16001) Prior Year Actuals Current Year Budget $36,944 $349,999 Implementing Department Project Phase Project Completion Utilities N/A Recurring Project Status: This project replaces underground electric equipment in areas that were originally installed that are not part of an Underground District. Staff is working to identify areas where the age of the cables are a high priority for cable replacement. To date, this includes areas in the Stanford Research Arastradero Road, and along East Bayshore Road. New areas have been identified and progress has been on development of the project. Construction of this project was deferred to maintain zero rate increases ease economic recovery because of COVID‐19. Wood Pole (EL‐19004) Prior Year Actuals Current Year Budget $1,297,849 $1,739,927 Status: This project will fund the annual replacement of deteriorated wood power poles. The project is in the design phase with expected completion in December 2022 and construction starting summer 2023. The project is delayed this year because of staffing shortages. Staff hired a contractor to complete the design of 36 pole replacements. Implementing Department Project Phase Project Completion Utilities N/A Recurring Electric Fund Projects – Page 8 of 8 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 47 Packet Pg. 229 of 259 Fiber Optics Fund Projects Status as of December 2022 One‐Time Projects Fiber Optic (FO‐16000) Prior Years Actuals Total Project Budget $3,315,100 Implementing Department Project Phase Design Project Completion Spring 2024 Project Status: This project is for the System Capacity Improvement that rebuilds portions of the "dark" fiber optic around Palo Alto. On September 19, 2022, Council approved the City’s fiber expansion plan including of a new fiber backbone and a phased buildout of a fiber‐to‐the‐premises network. The Fiber Optic System Rebuild CIP will be replaced with new Fiber Backbone and Fiber‐to‐the‐Premises CIP’s in FY 2024. Recurring Projects Optics Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Utilities N/A Recurring Connections (FO‐10000) Project Status: This project enables the installation of fiber optic infrastructure for new service connections. are developed as needed to meet customer requests for leasing of fibers on the Dark Fiber system. Staff processed and completed seven customer connection projects in FY 2023. Fiber Optics Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Utilities N/A Recurring Project Status: This project improves the reliability within the fiber optic network system. As part of the City’s Improvements wildfire mitigation plan, this project will add new fiber conduit and substructure in the foothills to support city (FO‐10001) infrastructure and improve telecommunication and connectivity in the open space. Fiber Optics Fund Projects – Page 1 of 1 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 48 Packet Pg. 230 of 259 Gas Fund Projects Status as of December 2022 One‐Time Projects Gas Main $5,675,198 23 Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Summer 2022$7,951,858 Utilities Completed Project Status: This project enables the design and construction to replace approximately 21,700 linear feet (which 1.9% of the City's Gas distribution main system) of distribution main and 320 gas services constructed mainly PVC material on various streets within the Midtown, Evergreen Park, Ventura, College Terrace, Charleston Terrace, and Park neighborhoods. Gas pipeline replacement at the Town & Country Village property was removed, while the replacement on Encina Avenue, Embarcadero Road and El Camino Real will continue. Construction began in 2021 and was completed in summer 2022. (GS‐13001) Gas Main $44,459 Prior Years Actuals Total Project Budget Implementing Department Project Phase $10,000,000 Utilities Construction Project Completion Winter 2024 Project 24 (GS‐14003) Project Status: This project enables the design and construction to replace approximately 20,100 linear feet (which 1.9% of the City's Gas distribution main system) of distribution main and 260 gas services constructed mainly PVC on various streets within the University Park, Stanford, and Green Gables neighborhoods. Release of the project bidding has been delayed to incorporate the Town & Country Village scope. This project was split into GMR24A and GMR24A was bid in summer 2022 and the construction project was awarded. Construction is anticipated to be in winter 2023. GMR24B is currently in design and anticipated to be bid in winter 2023. Gas Fund Projects – Page 1 of 3 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 49 Packet Pg. 231 of 259 Gas Fund Projects Projects Status as of December 2022 Gas Prior Year Actuals Current Year Budget Implementing Department $164,389 $750,000 Utilities Status: This project enables Gas Distribution System improvements. Typical activities include increasing Project Phase N/A Project Completion Recurring Improvements distribution system capacity for load growth, replacing deteriorated capital facilities, reconfiguring/adding to the system (GS‐11002)to improve service reliability, and conducting research related to performance of the gas distribution system or its components making general improvements to the system. The City must continuously evaluate service reliability and make improvements to the system to maintain top level service to City customers and to minimize potential losses due to service interruptions. In the first half of FY 2023, replacement of various gas services and valves the system were completed. Gas Prior Year Actuals Current Year Budget Implementing Department $52,474 $50,000 Utilities Status: This project purchases polyethylene (PE) fusion equipment and tools, directional boring/locating equipment and tools, and general shop equipment and tools. The equipment needs to be upgraded on an annual basis to safely operate and maintain a natural gas distribution system and to ensure operators’ safety and productivity. No new equipment was purchased in the first half of FY 2023. Project Phase N/A Project Completion RecurringEquipment Tools (GS‐13002) Gas Meters Prior Year Actuals Current Year Budget Implementing Department $333,356 $500,000 Utilities Project Phase N/A Project Completion Recurring Regulators (GS‐80019) Project Status: This project provides replacement of the existing gas meters and regulators annually. The coordination gas meter and regulator replacements with gas meters identified to be replaced under the AMI contract, which is gas meters that are 25 years or older. The gas meter replacement program ensures the accuracy of gas measurement, reduces possible revenue loss due to under‐registered gas, and provides customers with monthly bills. Replacement of aged gas meters and regulators is on‐going. The next major replacement of Gas Fund Projects – Page 2 of 3 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 50 Packet Pg. 232 of 259 Gas Fund Projects Status as of December 2022 meters and regulators will be coordinated with Gas Main Replacement Project 24 (GS‐14003) and the Advanced Metering project. Gas System,Prior Year Actuals Current Year Budget Implementing Department $754,755 $1,166,900 Utilities Project Phase N/A Project Completion Recurring Connections (GS‐80017) Project Status: This project enables the Gas Distribution System to be extended in order to provide gas service to new and augment service to customers with increased natural gas demands. Improvements include new mains, valves, regulators, meters, and accessories. This project upgrades infrastructure to provide gas service to new customers, meet changes in existing customer service demands, and respond to changes in gas requirements due to new development or redevelopment. This project is funded partially from reimbursements customers. City crews completed 27 new gas service installations and 26 gas service demolitions in the first half of 2023. Gas Fund Projects – Page 3 of 3 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 51 Packet Pg. 233 of 259 Stormwater Management Projects Status as of December 2022 One‐Time Projects Corporation System and Station (SD‐21000) Prior Years Actuals $161,853 Total Project Budget Implementing Department Project Phase Project Completion $3,949,827 Public Works Design Fall 2024 Project Status: This project incorporates a design of a new small pump station with 25 cubic feet per second and upgrades 700 linear feet of pipe to 30‐inch diameter High Density Polyethylene pipe. The existing does not have the force needed to discharge storm flows into the Adobe Creek. Adding a pump station in of the outfall and upsizing the storm pipe will eliminate the routine flooding along East Bayshore Road and runoff from a 10‐year storm event. Staff is also in the process to secure an easement for the pump station adjacent property owners. The design consultant contract was awarded in June 2020. The final design will be in spring 2023 and construction is anticipated to start in fall 2023. Trash Capture Prior Years Actuals $11,562 Total Project Budget Implementing Department Project Phase Project Completion $657,000 Public Works Design Fall 2023 Installation (SD‐22002) Project Status: This project provides funding for the design and construction of a large trash capture device (TCD) be installed in the planting strip along Embarcadero Road located in front of the Palo Alto Baylands Golf Links lot. The TCD will be integrated into a 36‐inch storm pipe to capture trash as small as five millimeters from section of the storm drain system prior to discharging to the San Francisco Bay. The 189‐acre drainage area treated the TCD consists of 169 acres of commercial and office land use in the City’s jurisdiction and 20 acres in the Department of Transportation (Caltrans) right‐of‐way. The design is in progress and is expected to go out bid for construction in spring 2023. West Bayshore Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $2,748,396 Public Works Design Spring 2024Road Pump $235,329 Project Status: This project incorporates design and construction of a new small pump station with 15 cubic feet second capacity. Installing a new pump station will allow storm flows to be pumped into the Adobe Barron confluence while adding a pump station in advance of the outfall would eliminate the routine flooding along (SD‐20000) Stormwater Management Projects ‐ Page 1 of 3 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 52 Packet Pg. 234 of 259 Stormwater Management Projects Status as of December 2022 West Bayshore Road and allow the system to convey runoff from a 10‐year storm event. The design consultant was awarded in June 2020. The consultant has reached 90% completion of the design plans. Staff is also the process to secure an easement for the pump station from adjacent property. The final design will be in spring 2023 with construction expected to start by fall 2023. West Bayshore Prior Years Actuals Road Trunk Line $5,271 Total Project Budget Implementing Department Project Phase Project Completion $2,478,965 Public Works Design Spring 2024 Improvements (SD‐23000) Project Status: This project replaces approximately 1,400 linear feet of existing 15‐inch diameter pipe with 36‐inch High Density Polyethylene pipe. These improvements along with the new West Bayshore Road Pump Station (SD‐ 20000) will eliminate the routine flooding along West Bayshore Road and allow the system to convey runoff from a 10‐year storm event. Once the design for the pump station is finalized the consultant will advance the design for the capacity upgrades. The final design will be completed in spring 2023 with construction expected to start by fall 2023. Recurring Projects Green Prior Year Actuals $0 Current Year Budget Implementing Department Project Phase Project Completion $2,111,351 Public Works N/A RecurringStormwater (SD‐22001) Project Status: This project provides funding for Green Stormwater Infrastructure (GSI) projects and the integration GSI features to be included in the design and implementation of planned CIP projects supported by other funds in the future maintenance of the City’s GSI assets. GSI mimics the natural environment to slow, spread, sink, filter storm runoff through native or engineered soils or other pervious material rather than discharging it into storm drain inlets. Elements include bioretention planters, tree wells, pervious pavement, and harvesting (rain barrels and cisterns) to manage stormwater runoff. Stormwater Management Projects ‐ Page 2 of 3 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 53 Packet Pg. 235 of 259 Stormwater Management Projects Status as of December 2022 Storm Drainage Prior Year Actuals Current Year Budget $1,233,100 Implementing Department Works Project Phase Project Completion N/A Recurring Replacement and Project Status: This project provides for annual replacement and rehabilitation to maintain the integrity of the Rehabilitation (SD‐06101) storm drain system, including deteriorated storm drain piping, manholes, and storm drain inlets. The includes cured‐in‐place pipe (CIPP) lining, and replacement of broken pipe with HDPE. The project went to bid in summer 2021. Construction started in early 2022 and was completed in fall Stormwater Management Projects ‐ Page 3 of 3 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 54 Packet Pg. 236 of 259 Wastewater Collection Fund Projects Status as of December 2022 One‐Time Projects Wastewater Prior Years Actuals Total Project Budget Implementing Department Project Phase $801,528 $4,656,777 Utilities Construction Project Completion Winter 2023 Project Status: This project includes the design and construction of high priority mains with structural defects that be addressed with routine maintenance. The wastewater mains on various streets in the City, will be replaced approximately 10,000 linear feet of sanitary sewer mains and associated laterals in the Ventura, Charleston Fair Meadow, and Palo Verde neighborhoods. The Notice to Proceed for construction was issued in March with an anticipated project completion in January 2023. Rehabilitation 30 (WC‐17001) Wastewater Prior Years Actuals Total Project Budget Implementing Department Project Phase $0 $5,200,000 Utilities Design Project Completion Summer 2025 Project Status: This project funds the design and construction of high priority main replacement work, which reduces of rainfall and groundwater into the collection system. The project replaces approximately 11,000 linear feet represents 1.1 percent of the City’s Wastewater Collection System) for El Camino Real from Page Mill Rd to Ct, and Page Mill Rd from Ramos Way to Ash St. The project will be comprised of mains identified in video work or through maintenance records as deficient and in need of replacement. The work will be in Caltrans Camino Real) and the County of Santa Clara (Page Mill Rd) right‐of‐way. Rehabilitation 31 (WC‐19001) Wastewater Collection Fund Projects – Page 1 of 3 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 55 Packet Pg. 237 of 259 Wastewater Collection Fund Projects Projects Status as of December 2022 Sewer Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Lateral/Manhole (WC‐99013) $0 $825,000 Utilities N/A Recurring Project Status: This project replaces defective sewer laterals, cleanouts, manholes, backwater devices, and equipment support these activities to maintain the Wastewater Collection System, as well as to comply with the Sanitary Sewer Plan (SSMP). Information collected during routine annual maintenance activities is used to prioritize work. continued work performed will also help reducing both sewage blockage and the City's treatment expenses to rainwater or groundwater infiltration. A new 3‐year contract was approved in FY 2023 to replace problematic laterals. Sewer System,Prior Year Actuals Current Year Budget Implementing Department $453,078 $450,000 Utilities Project Phase Project Completion N/A Recurring Connections (WC‐80020) Project Status: This project installs sewer lateral connections and additions or extensions of existing mains to serve customers and to respond to changes in sewer requirements due to redevelopment. Old existing non‐plastic laterals with condition deficiencies per Utilities Operations’ criteria are required to be replaced in accordance the latest 2022 WGW Standards. This project recovers the cost for installation and maintenance for Development projects through customer connection fees and capacity increase fees for connecting to the wastewater system. Wastewater Prior Year Actuals Current Year Budget Implementing Department $71,193 $50,000 Utilities Project Phase Project Completion N/A Recurring Equipment and (WC‐13002) Project Status: This project funds contract C23184325A to procure 39 new sanitary sewer level monitoring units. The current monitoring system is operating on the 3G cellular network which sunsets in December 2022. Sanitary level monitoring units are strategically placed in manholes throughout the City that will trigger alarms when level of sewage is detected. This early warning system helps the Wastewater Operations crew respond faster to Wastewater Collection Fund Projects – Page 2 of 3 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 56 Packet Pg. 238 of 259 Wastewater Collection Fund Projects Status as of December 2022 emergency situations and prevent sanitary sewer overflows. The remaining budget in this project may potentially be towards a sedimentation tank at the Municipal Service Center. Wastewater Prior Year Actuals Current Year Budget Implementing Department $413 $600,000 Utilities Project Phase Project Completion N/A Recurring Improvements (WC‐15002) Project Status: This project implements improvements to the Wastewater Collection System by increasing system for growth, flow monitoring, hydraulic modeling and system analysis, load simulations, asset management and assessment, system inflow/infiltration analysis, and sanitary sewer overflow monitoring and reduction. City is currently using Sedaru’s asset management software to document maintenance activities. Wastewater Collection Fund Projects – Page 3 of 3 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 57 Packet Pg. 239 of 259 Wastewater Treatment Fund Projects Status as of December 2022 One‐Time Projects Advanced Prior Years Actuals Total Project Budget Implementing Department $20,197,389 Public Works Project Phase Project Completion Design Fall 2025 Purification (WQ‐19003) Project Status: This project enables the design and construction of an Advanced Water Purification Facility to further the quality of the tertiary‐treated recycled water by ultrafiltration followed by reverse osmosis to reduce the of total dissolved solids. The water reuse partnership agreement with Valley Water and Mountain View provides million in funding from Valley Water for this project. The City has also received grant funding for a portion of the costs and a State low‐interest loan for the design and construction phases. The Project was submitted to the Dept, and a meeting with ARB is anticipated in early 2023. The project was presented to the Parks & Commission in late 2022. The design is currently at 90% completion and is expected to be completed in 2023, with project construction completion in fall 2025. Headworks Prior Years Actuals Total Project Budget Implementing Department $48,778,300 Public Works Project Phase Project Completion Fall 2028 Replacement (WQ‐16002) Project Status: This project replaces influent pumping, including the suction and discharge piping, pipe manifolds, the electrical and controls system, screening equipment, grit handling equipment, the force main to the and modifying headworks building, and yard piping. Solicitation for a consultant to perform advance is expected to begin in summer 2023. Horizontal Pilot (WQ‐22001) Prior Years Actuals Total Project Budget Implementing Department Public Works Project Phase Project Completion Summer 2027 Project Status: This project consists of the design, permitting, and construction of a horizontal levee pilot system. The will utilize treated wastewater to create a transitional brackish habitat on the Bayside of a future flood control located in the Palo Alto Baylands, adjacent to the City of Palo Alto’s Regional Water Quality Control Plant Information and data collected by this pilot system could support broader implementation of horizontal as green infrastructure components in larger flood control levee improvement projects within Palo Alto and Wastewater Treatment Fund Projects – Page 1 of 4 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 58 Packet Pg. 240 of 259 Wastewater Treatment Fund Projects Status as of December 2022 beyond. The project completed 60% design, CEQA review, conducted several stakeholder out‐reach events, and construction applications to resource agencies. The project is currently working on progressing the design 100%, composing a Parks Improvement Ordinance, and continuing stakeholder outreach. New and $363,705 Project Status: This project was originally envisioned to replace the existing plant laboratory and environmental Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion $24,134,403 Public Works Design Fall 2027 Services (WQ‐14002) services offices. Staff is currently revising space planning assumptions as the City and WQCP are investigating the acquisition of a property adjoining the WQCP and have put further design efforts on hold until more planning can be completed. Solicitation for engaging a consultant for advance planning is expected in 2023. Outfall Line (WQ‐19000) Prior Years Actuals Total Project Budget Implementing Department $10,616,200 Public Works Project Phase Project Completion Summer 2026 Project Status: This project consists of the construction of a new parallel outfall pipe to convey final plant effluent to Francisco Bay. The PWE/USACOE Levee Project requires a re‐design of the pipeline to accommodate a potential runway shift at PAO Airport. Staff is currently working with PAO/FAA staff towards gaining FAA concurrence the project re‐design. The City has received a State low‐interest loan for the design and construction phase, and State is working with the City to retain the loan through the re‐design process. Plant Master Prior Year Actuals Current Year Budget Implementing Department Public Works Project Phase Project Completion Winter 2028 (WQ‐10001)Project Status: This project enables the ongoing program management support for major capital projects. Current include developing scopes of work, evaluating consultant proposals, coordinating project management activities, State low‐interest loans for multiple projects, and updating partner agreements. The consultant provides Wastewater Treatment Fund Projects – Page 2 of 4 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 59 Packet Pg. 241 of 259 Wastewater Treatment Fund Projects Status as of December 2022 support for the projects associated with the Long‐Range Facilities Plan (LRFP). The contract was renewed in December through 2028. Primary $3,658,289 Prior Years Actuals Total Project Budget Implementing Department Public Works Project Phase Project Completion Winter 2023 Tank (WQ‐14003) Project Status: This project enables the design and construction for new protective coatings on each of the four primary sedimentation tanks, with replacement of worn rotating parts and mechanical and electrical These tanks were installed in 1972 and the recoating project will extend the concrete life for another 30 The design and construction cost of the project is funded by a state low‐interest loan through the Clean Water Revolving Fund with the Installment Sale Agreement executed on July 12, 2021. Construction began in summer with completion expected by winter 2023. Secondary Prior Years Actuals Total Project Budget Implementing Department $193,351,077 Public Works Project Phase Project Completion Winter 2028 Project Status: This project upgrades the Secondary Treatment process at the Regional Water Quality Control Plant. existing Secondary Treatment process has two main components, the Fixed Film Reactors (FFR) and the Activated (AS) Process. This project includes the reconstruction of the AS process, rehabilitation and reconfiguration of AS Aeration Basins, the elimination of the FFRs, and replacement of equipment beyond its useful life. Project cost increased to address sea level rise policy implications, new infrastructure needed to reduce project life cycle costs, larger standby power generator for unanticipated loads, and to meet code requirements. The project construction has been increased to five years due to the sensitive nature of the work that needs to take place, while also the Plant to operate and meet permit requirements for treatment. The City has received a State low‐interest for the design and construction phases. The design was completed in spring 2022. Construction contract will be in winter 2023. (WQ‐19001) Wastewater Treatment Fund Projects – Page 3 of 4 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 60 Packet Pg. 242 of 259 Wastewater Treatment Fund Projects Projects Status as of December 2022 Plant Repair, and Prior Year Actuals Current Year Budget Implementing Department Project Project Completion Phase $1,122,530 $10,465,000 Public Works N/A Replacement (WQ‐19002) Project Status: This project enables the assessment, repair, and retrofit of the Plant's concrete and metal structures; replacement of necessary Plant equipment and ancillary facilities, including electrical equipment/systems, to treatment reliability and existing infrastructure; and the replacement of large diameter flow meters built the wastewater treatment system on sewers, pipes, and water lines. Design of the 12 kV Electrical Loop Project was completed in spring 2022; construction contract will be issued in winter 2023. Wastewater Treatment Fund Projects – Page 4 of 4 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 61 Packet Pg. 243 of 259 Water Fund Projects Status as of December 2022 One‐Time Projects Water Main 28 Prior Years Actuals Total Project Budget $10,305,619 Status: This project will replace approximately 18,600 linear feet (which represents 1.6% of the City's water system) of mains and 265 services on various streets in the City, including areas in the Duveneck, St. Barron Park and Charleston Meadows neighborhoods. Construction started in April 2022, and around 35% water mains have been installed. This project is anticipated to be completed in late 2023. Implementing Department Project Phase Project Completion Utilities Construction Fall 2023 (WS‐14001) Water Main 29 Prior Years Actuals Total Project Budget $9,350,000 Implementing Department Project Phase Project Completion Design Spring 2024 Project Status: This project will fund the design and replacement of structurally deficient water mains and Mains are selected by researching the maintenance history of the system and identifying those are undersized, corroded, and/or subject to breaks. The project scope includes approximately 10,000 linear (which represents 0.8 percent of the City’s Water Distribution System) of mains and services on various streets the City, including areas in the Evergreen Park, Ventura, and Midtown/Midtown West neighborhoods. (WS‐15002) Water Recycling Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Pre‐Design Fall 2023Facilities$710,106 $1,243,714 (WS‐07001)Project Status: This project allows the City to hire a consultant to prepare a business plan, prepare preliminary and secure funding options for an expansion of the existing recycled water delivery system in the City. The pipeline is one of several water reuse projects being considered in the Northwest County Recycled Water Plan. This, or one of the other projects, may be recommended to Council for design and construction. is considering expanding the recycled water distribution system as one project to the One Water Plan scheduled for Council approval in fall 2023. The earliest such a project could begin is spring 2024. Water Fund Projects – Page 1 of 5 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 62 Packet Pg. 244 of 259 Water Fund Projects Status as of December 2022 Water (WS‐07000) Prior Years Actuals Total Project Budget $2,960,992 Implementing Department Project Phase Project Completion Utilities Design Summer 2023 Project Status: This project for Water Regulation Station Improvements includes seismic upgrades, piping and other various upgrades to increase the structural reliability of two of the City’s turnouts with Work under this project includes Seismic Upgrade of California and Page Mill Turnouts. Structural for restraining the Page Mill turnout and piping was included in the design. City Council approved this and the construction is scheduled to start in March 2023. Water Tank Upgrade $9,348,646 Prior Years Actuals Total Project Budget Implementing Department Project Phase Project Completion Construction Spring 2024 and (WS‐09000) Project Status: This project for Seismic Water System Upgrades includes seismic upgrades at the Montebello, Corte Madera, Park, Boronda, and Dahl Reservoirs in compliance with the American Society of Civil (ASCE 7) seismic codes. Seismic upgrade of Boronda and Montebello Reservoirs was completed in 2016 2018. The Mayfield Reservoir was rehabilitated in September 2020. The new concrete Corte Madera Reservoir completed in April 2022. Park Reservoir is scheduled next for retrofit or replacement and will have its condition by a tank expert to determine how to proceed. Condition Assessment will take place in early 2023. Design Park Reservoir will also begin in spring 2023, with construction planned for 2024. Recurring Projects Water (WS‐11003) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $285,900 Utilities N/A Recurring Status: This project enables improvements to water distribution system deliverability and reliability. activities include installing restraining joints at critical pipelines and bridge crossings, increasing the size of facilities, system leakage surveys, network modeling, and fire flow studies or other system as required. Continuous evaluation of system needs and making required improvements is Water Fund Projects – Page 2 of 5 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 63 Packet Pg. 245 of 259 Water Fund Projects Status as of December 2022 necessary to maintain adequate quantities of quality water, meeting local, state, and federal safe drinking water The Pump Station Painting project, for painting the five foothill pump stations, will go out to bid early with the work to be performed by fall 2023. Water, Gas, GIS Data (WS‐02014) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $343,131 $498,500 Utilities N/A Recurring Project Status: This project enables contracts related to Utilities GIS (Geographic Information System) needs. AME is heavily utilized by Utilities Engineering staff to update the utility information in GIS. The updated is used by various City staff, such as marking/locating underground utilities to comply with USA Service Alert) requirements; developing design drawings for pipeline replacement projects; verifying underground utilities during construction activities; creating customized utility map books for field crews on‐call personnel to meet their specific needs. Annual surveying contracts collect GPS points of existing above‐ utility features within the CIP project areas. The data being collected continues to be used to correct the database. Accurate utility data helps the design to select new pipe alignment to minimize construction Water General Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion Equipment/Tools $30,008 (WS‐13002) $105,000 Utilities N/A Recurring Project Status: This project acquires new equipment and tools, the replacement of existing fusion equipment, and associated tools. The fusion equipment is used to fuse together pipe joints in the City's water distribution Equipment and tools are required to be upgraded on an annual basis to maintain high quality standards the installation of the City's water distribution mains, along with the associated service standards and worker and productivity measures. Water Fund Projects – Page 3 of 5 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 64 Packet Pg. 246 of 259 Water Fund Projects Status as of December 2022 Water Meters (WS‐80015) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $962,800 Utilities N/A Recurring Project Status: This project enables the purchasing of meters for new customers, upgrading meters for current installing meter bypasses, and replacing obsolete meters that are no longer repairable. This funding allows for annual testing and calibration of selected meters to maintain meter accuracy and reliability. During AMI implementation process, approximately 50% of the meters will be replaced. Staff is currently targeting diameter meter sets to be replaced first in preparation for the upcoming AMI project. Water Service Hydrant (WS‐80014) Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $99,814 $400,000 Utilities N/A Recurring Project Status: This project replaces system control valves, deteriorated galvanized service lines, lead goosenecks, fire hydrant valves and assemblies per the Fire Department’s flow testing, upgrades fire hydrants in main line project areas, and replaces existing undersized or deteriorated copper water services. Water System Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $924,125 $904,600 Utilities N/A Recurring Connections (WS‐80013) Project Status: This project allows for improvements that include new main extensions, valves, domestic services, on upgraded services, backflow devices, fire services, and fire hydrants. System extensions are required to service to new large developments and to serve existing customers requesting expanded service on Services projects. Prior Year Actuals Current Year Budget Implementing Department Project Phase Project Completion $17,073 $285,900 Utilities N/A Recurring Water Fund Projects – Page 4 of 5 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 65 Packet Pg. 247 of 259 Water Fund Projects Status as of December 2022 Water System (WS‐11004) Project Status: This project evaluates and improves the City’s water distribution system on an as‐needed basis. This includes piping modifications, equipment replacements associated with water delivery, supervisory control upgrades, system modifications for water system quality compliance, conditional assessment of the of transmission mains, and security system installations. The water system includes the connection between the City’s and the San Francisco Public Utility Commission’s pipelines, emergency water wells the City, pumping stations, water reservoirs, and pipelines. Security cameras will be added to various tanks, stations, and turnouts as part of the Security Cameras project. Staff are also exploring adding generators to foothill pump stations and several emergency wells. These projects are still in the planning stage due to priorities. Water Fund Projects – Page 5 of 5 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 66 Packet Pg. 248 of 259 List of Completed Projects Season Completed Year Completed Total Project **CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project replace rubberized and synthetic turf surfacing in the playground replace play equipment including swings, climbing net, and playhouse. An was issued in November 2021 and Council awarded a construction contract spring 2022. Installation of rubberized and synthetic surfacing, replacement climbing nets and renovation of the playhouse took place in fall 2022. Project completed in December 2022. Magical Bridge Playground PE‐21003 Rubber and Synthetic Turf Parks and OpenConstruction Public Works Fall 2022 $857,380.00 Resurfacing This project designed and constructed approximately 21,700 linear feet (which represents 1.9% of the City's Gas distribution main system) of distribution main Gas Main Replacement and 320 gas services constructed mainly of PVC material on various streetsGS‐13001 Gas Utilities Summer 7,951,858.00Project 23 within the Midtown, Evergreen Park, Ventura, College Terrace, Charleston and Research Park neighborhoods. Construction began in winter was completed in summer 2022 This project replaced the entire complement of Automated External Automated External Defibrillators (AEDs) throughout City facilities and emergency response vehicles,Buildings andFD‐21000 ‐17000 Procurement Fire Department Works Summer 2022 $237,500.00Defibrillator Replacement which currently totals 93 AEDs. The RFP process was completed in fall 2021. new AEDs were purchased and deployed in summer 2022. This project replaced the existing MSC roofs. The existing asphalt and gravelMunicipal Service Center B, & C Roof roofs have reached the end of their useful life and needed to be replaced. The roofs will meet current cool roofing codes to optimize energy efficiency. was completed in November 2022. Buildings and 2,013,475.00 Replacement This project installed capacitor banks at electric substations and on distribution to ensure Northern California Power Association Power Factor are met. Capacitor banks were installed at Hanover Avenue, Way, Maybell Avenue, and Park Boulevard Substations. The project substantially completed in June 2022 and will be commissioned and in summer 2022. EL‐16002 Capacitor Bank Installation Construction Electric Utilities Spring 2022 $1,050,443 Facility Relocation for The Utilities Department removed the overhead lines allowing for the EL‐17007 Caltrain Modernization installation of the Overhead Catenary System above the rails for the Caltrain Construction Utilities Spring 2022 $3,055,472 Project Modernization. This project was completed in spring 2022 This project upgraded safety, site amenities, playground facilities, a new irrigation, drainage, and ADA accessibility improvements at Park. These improvements were identified in the Rinconada Long Plan (LRP). Phase 1 of construction started in August 2021 and was completed in spring 2022. Rinconada Park Parks and OpenPE‐08001 Public Works 1 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 67 Packet Pg. 249 of 259 List of Completed Projects Season Completed Year Completed Total Project **CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project reconfigured the distribution circuits to the substation transformer Quarry Substation. Design of QR 27 feeder replacement was completed in 2021. Construction was completed in December 2021 . Reconfigure QuarryEL‐14005 ‐18001 Construction Electric Utilities Fall 2021 $792,034Feeders This project provided for the relocation of the Junior Museum and Zoo to for two years while a new JMZ was being built, tenant improvements the Cubberley Auditorium and then removal of tenant improvements post‐ Construction of the new Junior Museum and Zoo started in June and was completed in late 2021. The new Junior Museum and Zoo was to the public on November 12, 2021. Buildings and CommunityJMZ Renovation 2,927,870.00 This project included a systems analysis and repaired the water proofing system High and Bryant Street in the High Street and Bryant Street parking garages. Water proofing repairs PE‐18002 Garages Waterproofing were completed in the High Street parking garage. Additional funding was Buildings andConstruction Public Works Fall 2021 $ and Repairs added and the contractor completed waterproofing repairs in the subterranean in the Bryant Street garage in fall 2021. As part of the 2014 Council Infrastructure Plan, this project designed and a new pedestrian bridge across Highway 101 at Adobe Creek. approved a contract with Granite Construction in November 2019.Highway 101 Pedestrian Traffic and TransportationPE‐11011 ‐12001 Construction Public Works Fall 2021 $22,889,453Bicycle Overpass Project Construction began in January 2020. The project construction completed on 20, 2021, with a ribbon‐cutting ceremony and a community This project undergrounded the existing overhead utility systems in the area the 400 block of West Charleston and El Camino Real. Staff completed equipment installation and 100% of customer service conversions. The for the final phase of the project to install two 60 foot tall steel and to reconductor the 60 kV sub‐transmission lines was completed in the 2021. Underground District 46 Electric Utilities This project improved the Pearson Arastradero Preserve parking lot by the base rock surfacing, adding drainage, widening the entrance for and new fencing. This new improvement will allow the overflow parking to be open year round. The work was completed in May 2021. Pearson Arastradero OS‐18001 Preserve Parking lot Parks and Open CommunityConstruction Spring 2021 $170,300 Improvement Cubberley Community Master Plan This project developed the master plan for future use of the Cubberley Center site by the City and Palo Alto Unified School District. Buildings and CommunityCB‐16001 2 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 68 Packet Pg. 250 of 259 List of Completed Projects Season Completed Year Completed Total Project **CIP # Project Name Project Description Project Type Fund Source Department Public Works Fire Departent CMR Date This project replaced the Building management System(BMS) controls for the Theater, Wing I, and Gyms A and B boiler rooms at the Cubberley Center. The project included the installation of control points for building along with controllers, valve and damper actuators. Cubberley Building Systems Buildings andCB‐19001 Construction Spring 2021 $350,000 This project replaced the current ring down system that provides an audible of calls in the fire stations. Ongoing installations started in 2018 and were Construction with Fire Station #3. Fire Ringdown System Buildings andFD‐14002 ‐14000 Spring Winter Spring Winter 2021 $400,144 Internal Alarm System The project replaced the citywide internal alarm system. The alarms at City Hall to this new system in FY 2019, but was completed in early 2021. Buildings and Police DepartmentConstruction Self Contained Breathing This project replaced the central air compressor that provides air for the self‐ FD‐20001 Apparatus (SCBA) Air Buildings andcontained breathing apparatus (SCBA) tanks to ensure firefighter safety when Fire Department Works Compressor Replacement entering environments with hazardous air quality. Airport Electrical This project replaced the outdated electrical panels for the Palo Alto Airport rental spaces. Construction was completed in January 2021.AP‐20000 ‐18000 Airport This project built the California Avenue Area Parking Garage, as part of the 2014 Infrastructure Plan. The parking garage has 627 parking spaces with 2 levels and 4 above grade floors. The garage features an automated space guidance system, EV charging stations, bicycle parking, and parking. The garage was opened to the public on December 8, 2020. New California Avenue Parking Garage Buildings andConstruction Public Works Works Fall 2020 $50,119,976 This project updated the individual sleeping quarters in the firehouse to address issues and privacy concerns. Fire Station #1 was the only fire station in City that did not have separate bedrooms to accommodate male and female This project was completed in fall 2020. Fire Station 1 Buildings andPF‐14002 ‐18000 This project replaced gas services laterals constructed of Acrylonitrile‐butadiene‐ styrene (ABS) or Tenite material on various streets. Council approved funding in June 2019. The project replaced 104 ABS and Tenite gas services. The WQCP ABS gas service is assigned to Utility Operations for replacement and the remaining five ABS gas services will be scheduled for replacement once the five‐ year moratorium ends on those streets. As of November 2020, this project is complete. Gas ABS/Tenite Project Construction Gas Utilities Fall 2020 $2,615,100 3 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 69 Packet Pg. 251 of 259 List of Completed Projects Season Completed Year Completed Total Project **CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project replaced 1,750 linear feet of storm drain with 48‐inch diameter High Polyethylene (HDPE) pipe and associated catch basins, laterals and In addition to underground work, additional street restoration and Loma Verde Avenue Trunk concrete work was completed. Work includes resurfacing one full lane on LomaSD‐19000 Construction Storm Drain Utilities Fall 2020 $2,976,813Line Improvements Verde from the beginning to the end of the project limits, replacement of sidewalk, and 718 linear feet of curb and gutter. The contract was in June 2020, construction work began in August 2020, and was in December 2020. This project is part of the City’s recent Seismic Upgrade and Emergency Water and Storage Projects. The reservoir was drained in 2012 for Mayfield Reservoir WS‐19000 Subgrade and Venting approximately two years to allow extensive seismic rehabilitation work to be and construction of a new pump station. Subsequently hairline were sealed in the reservoir. A geotechnical consultant was hired to the tank foundation. This study was completed and there were several identified. Staff has completed the design and construction of the vent Construction Water Utilities Fall 2020 $600,000 3,649,356 4,434,839 Repair This project undergrounded the existing overhead distribution system in the bounded by Middlefield Road, Homer Avenue, Webster Street, and Avenue. Installation of substructures and utility electric system is Where possible, the overhead electric lines were removed and cut down to the level of the communication lines. Underground District 47 EL‐11010 Middlefield, Homer, Webster, Addison Electric This project replaced of 8,972 linear feet of wastewater mains. The sanitary mains, laterals, and manholes to be rehabilitated or replaced in this are located in the Charleston Meadows neighborhood. Construction in February 2020 and was suspended for almost 3 months due to COVID‐ County’s Shelter‐in‐Place Order. The project is complete as of December Wastewater Collection WC‐16001 System Rehabilitation Augmentation Project 29 Wastewater This project modernized the existing elevators at parking Lot J. The project upgrading the interior of the elevators, elevator control interface, call and meeting current ADA standards. Construction started in April Project is complete except for the State final inspection on the second State is behind because of COVID, but the inspection should be done by the of July 2020. Parking Lot J Elevator Buildings andPF‐18000 Construction Public Works Works Spring 2020 $781,324 This project replaced the existing Fire Station at Embarcadero Road and Newell PE‐15003 Fire Station 3 Replacement Road with a new structure that meets essential services standards and current Buildings and Winter 10,080,258 program needs. Construction completed in March 2020. 4 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 70 Packet Pg. 252 of 259 List of Completed Projects Season Completed Year Completed Total Project **CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project included the recoating of four steel tanks. Work under this project included in the Seismic Upgrade of four Steel Tanks and the three Turnout Water Reservoir Coating Projects. Once construction started, it was found that the Montebello ReservoirWS‐08001 ‐13001 Construction Water Utilities Spring 2020 $2,141,172Improvementswas in very poor condition. Due to escalating costs associated with roof staff decided to complete construction of the Montebello and re‐evaluate the remaining three tanks for replacement. This project replaced approximately 9,600 linear feet of structurally deficient, or corroded water mains and services along the mains on Sand Hill Road, Construction Creek Drive (5%) and Fulton Avenue. Water Main Replacement ‐ Project 27 Water Utilities Spring 2020 $7,786,998 This project enabled the design and construction of a high priority wastewater and lateral replacement work to reduce inflow of rainfall and groundWastewater Collection WastewaterWC‐15001 System Rehabilitation water into the collection system. The project replaced or rehabbed a total of Construction Augmentation Project 28 7,655 linear feet of wastewater mains located in the Leland Manor/Garland, West, and Lower Page Mill/Los Altos Hills areas of the City. This project met the growing electric needs of the VA Hospital. Staff has had discussions with VA Hospital on electric load growth at the hospital VA Hospital ‐ Customer Requirements and anticipated needs from the utility. Much of the cost is reimbursed to the by the VA Hospital. Staff has prepared preliminary designs for interim and is awaiting additional information from VA to develop long range to meet their future needs. EL‐17003 Design Electric Utilities Spring 2020 $84,984 This project added electronic security systems at utility sites to protect at electric substations, water pumping plants, reservoirs, and gas from intrusion and vandalism. Cameras and detection systems have installed at nine electric substations, three water stations, and one natural station to monitor facilities. Utility Site SecurityEL‐04012 ‐11008 Construction Electric Utilities Spring 2020 $1,644,681 This project rebuilt and replaced the underground electric system in District 19, the area bounded by Forest Avenue, Waverley Street, Construction Avenue, and Alma Street. Rebuild Underground 19 5 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 71 Packet Pg. 253 of 259 List of Completed Projects Season Completed Year Completed Total Project **CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project replaced Self Contained Breathing Apparatus equipment (SCBA) by firefighters when entering hazardous conditions when responding to and hazardous materials incidents. The SCBA provides breathable air for when entering environments where the atmosphere is immediately to life or health. The expected service life for SCBAs is 15 years. Self Contained Breathing Replacement Buildings andFD‐18000 Purchase Fire Department Spring 2020 $799,999 This project replaced the entire complement of twenty cardiac monitors in the Along with other tools needed for patient assessment and airway cardiac monitors assess cardiac activity in patients and provide and pacing. Cardiac Monitor Buildings andFD‐20000 ‐16001 Purchase Fire Department of Spring 2020 $850,000 This project included the construction of curb extensions and the installation of pedestrian signal heads and traffic signal modifications in 2019 as part of Upgrade Downtown project. Downtown Mobility and Improvements Traffic and Transportation TransportationConstruction 1,819,847 This project replaced the Thermal Imaging Cameras (TICs) on all fire and vehicles used to help identify the location of victims; assess the source fires, smoke, and heat; to assist in creating a plan of action. Thermal Imaging Cameras Buildings andFD‐20002 Purchase Fire Department Fall 2019 $99,000 This project addressed areas that were identified in Wastewater Capital Project 17 (Cleaning and Video Inspection of the Collection as needing rehabilitation. This project was combined with Project 25 26(WC‐12001; WC‐13001). Wastewater Collection WC‐11000 System Rehabilitation WastewaterConstruction Utilities Fall 2019 $3,131,595 Augmentation Project 24 Wastewater Collection WC‐13001 System Rehabilitation This project was combined with Project 24 and 25(WC‐11001; WC‐12001). All new service laterals were installed from the new sewer main to the new sewer Augmentation Project 26 cleanouts located in the City’s right‐of‐way. Wastewater Cubberley Track and Field This project replaced the synthetic turf field, installed an all‐weather track and a Parks and OpenCB‐19000 ‐14018 Public WorksReplacementfitness area. Baylands Boardwalk This project replaced the existing boardwalk with similar alignment and Buildings andConstruction Public Works Works Winter 2019 $2,123,681 This project improved the Administrative Services Department offices on the floor of City Hall. Buildings andPE‐17009 City Hall Floor 4 Remodel Lucie Stern Buildings This project replaced and upgraded the mechanical, electrical, and fire/life Buildings andPE‐14015 Mechanical and Electrical safety systems at Lucie Stern Children’s Theater, Lucie Stern Community Theater, and Lucie Stern Community Center. Construction Public Works Spring 2019 $6,142,607 6 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 72 Packet Pg. 254 of 259 List of Completed Projects Season Completed Year Completed Total Project **CIP # Project Name Project Description Project Type Fund Source Department CMR Date Quarry Road PL‐16000 Improvements and Transit Center Access Planning andThis project included planning, design and construction of bicycle and improvements along Quarry Road. Traffic and TransportationConstruction Spring 2019 $5,148,378 Utility Control CenterEL‐17008 This project upgraded the Utility Control Center working environment.Electric Utilities Winter This project replaced approximately 23,700 linear feet of gas mains and services University Avenue and other streets in the Downtown NorthGas Main Replacement 22GS‐12001 Construction Utilities Spring 2019 $11,658,997 Wastewater Collection WC‐12001 System Rehabilitation / This project was combined with Project 24 and 26 (WC‐11001; WC‐13001) 45,294 linear feet of sanitary sewer mains in university South,Wastewater Utilities Public Works Utilities Augmentation Project 25 Professorville and Old palo Alto neigborhoods. This project provides funding for the design and construction of the sludge facility and truck loadout to retire existing dewatering and sewage incinerators. Dewatering and Loadout WastewaterWQ‐14001 ‐12001 Spring This project replaced approximately 11,000 linear feet of aging water mains and which included water main replacement as part of the Upgrade Project. Water Main Replacement Project 26 Water Spring This project improved the Planning and Community Environment (PCE) offices on the fifth floor of City Hall. Buildings andPE‐17009 City Hall Floor 5 Remodel Public Works Summer Baylands Nature AC‐14001 Interpretive Center Exhibit Improvements This project replaced worn out or non‐functioning exhibits at the Baylands Interpretive Center. Buildings and CommunityConstruction Summer 2018 $56,000 250,000 78,000 Mitchell Park Adobe Creek Parks and OpenPE‐17000 ‐14000 This project replaced the existing bridge over Adobe Creek in Mitchell Park.Public WorksBridge Replacement Internal Alarm System This project replaced the citywide system of panic alarms from various and the Council chambers. Buildings and Maybell 1&2 4/12kVEL‐14004 ‐15001 This project converted circuits 1 & 2 at Maybell substation from 4kV to 12kV.Construction Electric Utilities Fall 2018 $364,796 Security at City Gas Stations This project equiped the City’s four Gas Receiving Stations with video systems.Summer 7 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 73 Packet Pg. 255 of 259 List of Completed Projects Season Completed Year Completed Total Project **CIP # Project Name Project Description Project Type Fund Source Storm Drain Airport Department CMR Date Matadero Creek Storm SD‐13003 Water Pump Station and This project upgraded the capacity to the Matadero Creek Storm Water Pump which serves a low‐lying 1200‐acre area of southeastern Palo Alto.Construction Public Works Summer 2018 $6,685,317 Trunk Line Improvements Wildlife Hazard Plan The Wildlife hazard Management Plan identified the specific actions the airport take to mitigate the risk of wildlife strikes on or near the airport.AP‐16002 Study Construction Study Public Works Summer 2018 $63,415 4,022,455 167,741 Wastewater Collection WC‐14001 System Rehabilitation This project replaced 16,859 linear feet of sanitary sewer mains of various sizes various streets. Wastewater Augmentation Project 27 This project analyzed flooding conditions and recommended flood control and drainage and erosion control solutions for the creek located Foothills Park. Buckeye Creek Hydrology Parks and OpenPG‐15000 Public Works CalTrain Corridor Video PE‐17004 Management System This project replaced two existing gateway signs in the right‐of‐way for the Avenue business district. Streets andConstruction Public Works Works Spring 2018 $1,550,000 Installation Parking Lot Q Elevator Buildings andPF‐16003 This project modernized the existing elevator at Parking Lot Q. Parks, Trails, Open Space, PE‐13003 and Recreation Master This master plan provided guidance on the recreation and improvement needs Palo Alto’s parks, trails, open space and recreational programs. Parks and Open Community Fall 627,057 Plan This project developed a plan for short, medium and long range improvements the regional park including the consideration of pathways, new restrooms playgrounds, new landscaping, and revitalization of underutilized areas the park. Rinconada Park Master Parks and Open CommunityPE‐12003 ‐13012 Study Fall 541,355 The project developed an inventory of all City‐owned bridges and culvert Structural Assessment of structures, condition assessment, cost estimate for rehabilitation, and Buildings andStudy Public Works FallCity Bridges recommendation for future inspection frequencies, assessment and Wastewater Collection WC‐11000 System Rehabilitation / Combined with Project 25 and 26 (WC‐12001; WC‐13001), this project replaced rehabilitated approximately 42,398 linear feet of sanitary sewer mains of Construction Wastewater Fall 3,119,806 Augmentation Project 24 various sizes, 779 sewer laterals, and 121 sewer manholes. Wastewater Collection WC‐13001 System Rehabilitation / Combined with Project 25 and 26 (WC‐12001; WC‐13001), this project replaced rehabilitated approximately 42,398 linear feet of sanitary sewer mains of Construction Wastewater Utilities Fall Augmentation Project 26 various sizes, 779 sewer laterals, and 121 sewer manholes. 8 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 74 Packet Pg. 256 of 259 List of Completed Projects Season Completed Year Completed Total Project **CIP # Project Name Project Description Project Type Fund Source Department CMR Date This project completed the rehabilitation of the Palo Alto Municipal Golf Course, a new layout for the course, new prefabricated restroom, new water‐ turf and irrigation system, and rebranded the course as the Baylands Golf Golf Reconfiguration and PG‐13003 Baylands Athletic Center Parks and OpenConstruction Public Works Fall 2017 $13,675,177 Improvements Gas Main Replacement – This project combined with GWR 19B & GMR 20 and replaced ABS gas mainsGS‐11000 ‐11000 Gas WinterProject 21 and services. This project provided installation of approximately 11,869 linear feet of new Density Polyethylene (HDPE) water mains, 232 new HDPE water services, 15 new fire hydrants within the City limits. Water Main Replacement Project 25 Water Utilities The 2015 Water System Master Plan identified present capital improvements WS‐15004 Water System Master Plan and replacement rates required to ensure optimal reliability levels of service to Study Water Utilities Spring Winter Spring Winter Winter Fall 2017 $500,000 1,272,289 696,918 208,648 400,000 1,499,979 94,419 the existing distribution and transmission systems. Wastewater Collection Combined with Project 22 (WC‐09001). This project replaced and/or WastewaterWC‐10002 System Rehabilitation /rehabilitated approximately 33,497 linear feet of sanitary sewer mains of Construction Augmentation Project 23 various sizes, 554 sewer laterals, and 102 sewer manholes. Street Light System Street EL‐10009 Light System Conversion This project converted HPS streetlights to LED and the conversion of 4500 cobrahead streetlight fixtures.Electric Project Sand Hill / Quarry 12kV This project installed new wire to connect circuits QR‐24 and QR‐27 in the Sand area.EL‐13006 ‐15001 Electric Substation Battery This project replaced the batteries in all nine of the City's electric substations. project replaced the synthetic turf at the Stanford/Palo Alto Playing Fields. Stanford/Palo Alto Playing PG‐13001 Fields Soccer Turf Parks and Open Community Replacement Park Maintenance Shop This project renovated and remodeled the Parks maintenance shop for safety efficienciency upgrades. Parks and Open CommunityPG‐09003 ‐12017 Summer City Hall First Floor This project installed new elevator control panels and replaced the gray‐painted inside the elevators. Buildings and Public Works 3,974,963 9 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 75 Packet Pg. 257 of 259 List of Completed Projects Season Completed Year Completed Total Project **CIP # Project Name Project Description Project Type Fund Source Department Public Works Public Works CMR Date This project created a temporary main Library to be used while the new one being constructed. Buildings andPE‐11012 Temporary Main Library Construction $156,254 Baylands Nature The project replaced decking, railings, structural framing members, exterior Buildings andPE‐15029 Interpretive Center Facility wood flooring, and cabinetry, restroom reconfiguration, and provided Spring Summer Fall 2017 889,452 421,126 334,607 440,000 3,247,248 65,000 Improvement Americans with Disabilities Act (ADA) improvements. This project improved the children’s playground and included park amenity such as new playground equipment, a new retaining wall, surfacing pathway upgrades, planting restoration and irrigation renovations, and of damaged wood benches and the playground perimeter fence. Bowden Park Parks and Open CommunityPE‐13008 This project provided trail and site amenities over the remaining area of the cap. Parks and OpenPE‐13020 Byxbee Park Trails Public Works Works Works This project improved the Utilities Department administrative offices on the floor of City Hall. It included new carpet, wall reconfiguration, a cabinets, paint, soundproofing, office furniture, doors, and building systems. Buildings andPE‐17002 City Hall Floor 3 Remodel Spring Lucie Stern Buildings This project replaced and upgraded the mechanical, electrical, and fire/life Buildings andPE‐14015 Mechanical and Electrical safety systems at Lucie Stern Children’s Theater, Lucie Stern Community Summer Upgrades – Phase 1 Theater, and Lucie Stern Community Center. Sarah Wallis Park This project improved site amenities with new concrete pathways, replaced old and upgraded landscape with drought tolerant species. Parks and Open CommunityPG‐12004 This project replaced the perimeter fencing and gates surrounding the Palo Alto boundaries to prevent unauthorized access to the airport runway in with Federal and State standards. AP‐16003 Airport Perimeter Fence Airport Storm Drain Gas Public Works Works 2,003,540 Channing Avenue/Lincoln This project installed of 5,800 linear feet of 36‐inch to 60‐inch diameter storm SD‐11101 Avenue Storm Drain drain along Channing and Lincoln Avenues over three project phases to increase Construction system capacity. Winter Summer Improvements Gas Distribution System This project included the development, model installation, testing, and staff training of a natural gas distribution system model.GS‐14004 Study 10 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 76 Packet Pg. 258 of 259 List of Completed Projects Season Completed Year Completed Total Project **CIP # Project Name Project Description Project Type Fund Source Department CMR Date Art Center Auditorium AC‐14000 Audio, Visual and This project replaced outdated audio visual equipment and furnishings following auditorium’s use as a temporary library. Buildings and CommunityConstruction Winter 2016 $150,000 Furnishings Rinconada Pool Locker This project renovated the Rinconada Pool locker room including the changing restrooms, and showers in the women's and men's locker rooms. Buildings andPF‐15000 Public Works 464,433 This project installed new athletic fields, synthetic turf, field lighting, fencing, a restroom, scorekeeper booth and storage buildings, an expanded parking new bike and pedestrian pathways, landscaping, benches, and other Parks and Open CommunityPE‐13016 El Camino Park Restoration Fall $5,611,122 Notes: ** Final Project Actuals may be different from Total Project Budget amounts Grand Total $295,492,136 11 Item 13 Attachment A - Semi Annual CIP Updates Item 13: Staff Report Pg. 77 Packet Pg. 259 of 259