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Home My WebLink About2023-06-19 City Council Agenda PacketCITY COUNCIL Special Meeting Monday, June 19, 2023 Council Chambers & Hybrid 5:30 PM Amended Agenda Amended agenda items appear below in RED 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 m e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o n 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 CALL TO ORDER This meeting will be called to order in honor of Caribbean American Heritage Month. SPECIAL ORDERS OF THE DAY (5:35 ‐ 5:40 PM) 1.Proclamation Honoring Juneteenth 2023 AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (5:40 ‐ 5:55 PM) COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:55 ‐ 6:00 PM) CONSENT CALENDAR (6:00 ‐ 6:15 PM) 2.Approval of Minutes from May 22, 2023 and June 5, 2023 Meetings 3.Approval of a Purchase Order with The Public Restroom Company in the Amount of $369,749 to Provide and Install a Modular Restroom Building at the Cubberley Community Center Fields for the Cubberley Field Restroom Capital Project (CB‐17002); CEQA status – exempt under CEQA Guidelines Section 15303 4.Approval of Construction Contract Number C23187877 with Casey Construction, Inc. in the amount of $410,604, Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $41,060, and approval of a FY 2023 Budget Amendment in the Stormwater Management Fund for the Trash Capture Device Installation Project, Capital Improvement Program Project SD‐22002; CEQA status – exempt under CEQA Guideline Section 15303. Q&A 5.Utilities Advisory Commission Recommends Adoption of the 2023 Annual Water Shortage Assessment Report 6.Grant of Easements to City of Mountain View for the City of Mountain View’s Phase 2 San Antonio Area Sewer Main Improvements Project. CEQA Status – Exempt Under CEQA Guidelines Section 15378(b)(5). 7.Approval of Construction Contract with OBS Engineering, Inc. (#C23187759) in the Amount of $4,199,222 and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $419,922 for the Boulware Park Improvements project (PE‐17005) and Green Stormwater Infrastructure project (SD‐ 22001); and Approval of FY 2023 Budget Amendments in the Park Development Impact Fee, Stormwater Management, and Capital Improvement Funds; CEQA status—exempt under CEQA Guidelines sections 15301 (existing facilities), 15302 (replacement or reconstruction), 15303 (small structures), and 15311 (accessory structures) Q&A 8.Approval of the Conceptual Plan for Quiet Zone at Palo Alto Avenue/Alma Street Rail Crossing and Direct Staff to Proceed with Design and Construction of the Project. CEQA status – categorically exempt (Regulation 15301). 9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and (2) a Purchase Order with One Workplace in the Amount of $480,229 for the Public Safety Building Capital Project (PE‐15001); CEQA: Environmental Impact Report for the Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) Title Updated, Q&A 10.Approval of a one‐year General Services contract with Stephen Ciari Plumbing and Heating, Inc. for Backflow Prevention Devices Testing, Repair, and Certification Services and Approval of a FY 2023 Budget Amendment in the General Fund; CEQA Status – Categorically Exempt 15301 and 15302 11.Approval of Amendment No. 1 with South Bay Regional Public Safety Training Consortium (Contract No S23187799) for Fire Academy and Other Training Services extended through 12/31/2023 and increasing the total compensation by $114,370 for a total contract amount not to exceed $199,000. CEQA status: not a project. 12.Approval of the Fiscal Year 2024 Investment Policy 13.City Council Appointment of the Castilleja Neighborhood Committee in Accordance With Condition Number 33 Contained in Record of Land Use Action 2022‐22 Authorizing Redevelopment of Private School at 1310 Bryant Street (Castilleja School). Environmental Assessment: Exempt from CEQA Pursuant to CEQA Guidelines Section 15061(b)(3). 14.Authorization for the City Manager to Negotiate and Execute a Memorandum of Understanding and Funding Agreement with Peninsula Corridor Joint Powers Board (Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank of the San Francisquito Creek 15.Adopt an Ordinance Amending Palo Alto Municipal Code (PAMC) Section 9.10.060 (f) and Adoption of a Resolution to Modify the Administrative Penalty Schedule Related to Enforcement of the City’s Gas‐Powered Leaf Blower Ban. Environmental Analysis: Not Subject to CEQA Review in Accordance with CEQA Guidelines 15061(b)(3). 16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for Radio Communication Systems for the New Public Safety Building Capital Project (PE‐15001), including $399,007 for Basic Services and $39,900 for Additional Services; CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772) Supplemental Report added, Q&A 17.Authorization to Execute Amendment to Legal Services Contract S22184420 with Rankin Stock Heaberlin Oneal to Increase Amount by $150,000 for Total Not‐to‐Exceed Amount of $225,000 and to Extend the Term to January 2025; CEQA Status – Not a Project Q&A 18.Approval of Contract with VOX Network Solutions (C23187554) to Procure Services to Upgrade the City’s Phone System and a Three‐Year Support Term for a Total Amount Not‐To‐Exceed $504,107; CEQA Status—not a project 19.Approval and authorization to execute contract Amendment No. 2 with the OIR Group for an additional two‐year period and an additional $105,000 for a new not‐to‐exceed amount of $212,500 for independent police auditing services with a new expiration date of January 1, 2025. 20.Approval of Amendment Number 3 to the Agreement With Palo Alto Unified School District (PAUSD) for PAUSD Athletic Field Brokering and Maintenance Cost‐sharing to Extend the Term to June 30, 2024, with an Optional Extension for an Additional Six Months; CEQA status – categorically exempt (Regulation 15301). 21.Approval of the 2023‐2024 Human Relations Commission Work Plan; CEQA Status – Not a Project 22.Approval of Office of City Auditor Remote and Flexible Work Study Report; CEQA Status – Not a Project 23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology Contract Management; CEQA Status – Not a Project Late Packet Report 24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster Recovery Preparedness; CEQA Status – Not a Project Late Packet Report 25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide Risk Assessment & FY23‐02 Annual Audit Plan; CEQA Status – Not a Project Late Packet Report 26.SECOND READING: Adoption of an Ordinance Amending Section 2.04.010 (Regular Meeting) of Chapter 2.04 (Council Organization and Procedure) of the Palo Alto Municipal Code to Change the City Council Meeting Start Time from Six p.m. to Five‐ Thirty p.m. (FIRST READING: June 5, 2023 PASSED 7‐0) 27.SECOND READING: Adoption of an Ordinance Amending Section Palo Alto Municipal Code Chapter 9.68, Rental Housing Stabilization, to Clarify the Definitions of At‐Fault and No‐Fault Just Cause for Evictions, Extend Just Cause Eviction Protections and Tenant Relocation Assistance to More Rental Units in Palo Alto than Offered by State Law, and Adopt a Security Deposit Limit for Unfurnished Rental Units in Palo Alto. Environmental Assessment: Exempt under CEQA Guidelines Section 15061(b)(3). (FIRST READING: June 5, 2023 PASSED 6‐1) CITY MANAGER COMMENTS (6:15 ‐ 6:30 PM) ACTION ITEMS (Item 28: 6:30 ‐ 7:15 PM, Item 29: 7:15 ‐ 8:30 PM) 28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1) Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, Proposed Reserve Transfers, and Increasing Wastewater 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; 3) Amending Utility Rate Schedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent and amending Rate Schedule EDF‐3 to make technical revisions with no rate change; and 4) Amending Utility Rate Schedule D‐1 Increasing the Storm Water Management Fee by 4.9 Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated 29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project Late Packet Report BREAK CONSENT CALENDAR (8:30 ‐ 8:40 PM) 30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 Late Packet Report 31.Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of $1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project and therefore is exempt from California Environmental Quality Act (CEQA)) Title Updated 32.Approval of a Blanket Purchase Order with Graniterock Company for the purchase of Sand, Rock, and Cutback‐Cold Mix Asphalt Materials for the Public Works and Utilities Departments for a three‐year term ending June 30, 2026; CEQA – Not a Project 33.Approval of Contract No. C23187298A with MuniServices, LLC for Tax and Fee Consulting Services in a Total Not‐To‐Exceed Amount of $1,161,550 Over a Five‐Year Term and Contract No. C23187298B with HdL Coren & Cone for Property Tax Consulting Services in a Total Not‐To‐Exceed Amount of $111,800 Over a Five‐Year Term; CEQA Status – Not a Project 34.Approval of Professional Services Contract with Kittelson & Associates for a Not‐to‐ Exceed Amount of $333,945 for the Bicycle and Pedestrian Transportation Plan Update 35.Approve and Authorize the City Manager to Execute a Grant Agreement with the Federal Highway Administration (FHWA) to Develop the Palo Alto Safe Streets for All (SS4A) Action Plan by Receiving $160,000 in Federal Funds and Requiring $40,000 in City Matching Funds over Two Years and Approve a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA status – not a project. 36.Approval of Contract Number C23187284 with Michael Baker International (MBI) for a Not‐to Exceed Amount of $211,310 to Provide Administration and Consulting Services for the City’s Community Development Block Grant (CDBG) Program for a Term of Two‐ years Through June 2025 37.Approval of Amendment No. 1 to the Lease Agreement between the Palo Alto Unified School District (PAUSD) (Landlord) and the City of Palo Alto (Tenant) for Extended Day Care Spaces for an Initial 12‐Month Term, Rent Not to Exceed $707,676 per Year; CEQA Status – Not a Project 38.Approval of a Professional Services Agreement (Contract No. C23184669A) with LifeMoves for the provision of Homeless Outreach Services in an Amount Not to Exceed of $460,000 for a term of two years; CEQA status – not a project. 39.Acceptance of an Outdoor Environmental Education Facilities Grant from the California Department of Parks and Recreation in the amount of One Hundred and Sixty‐Two Thousand Dollars ($162,000) for Signage and Exhibits at the Palo Alto Baylands Nature Preserve, Approval of Deed Restrictions in the Baylands, and Approval of a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA – categorically exempt (Regulation 15311). 40.Approval of Contract with Downtown Streets Team, Inc. (C23188369) for a Total Not‐to‐ Exceed Amount of $168,340 for Fiscal Year 2024 for Workforce Development Services: Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section 15061(b)(3). STUDY SESSION (8:40 ‐ 9:55 PM) 41.Tree Protection Ordinance Year One Implementation Update ACTION ITEMS AA1.Colleagues Memo: Approval of a “Friendship City” Program New Item ADJOURNMENT INFORMATION REPORTS 42.Accessory Dwelling Unit (ADU) Quarterly Report (Quarter 1 of Calendar Year 2023) 43.Update on State Law AB 2097 and Local Implementation Informational Report. 44.Update on the Capital Improvement Program and Long Range Facility Planning Update for the Regional Water Quality Control Plant OTHER INFORMATION Standing Committee Meetings this week Rail Committee June 20, 2023 Finance Committee June 20, 2023 – Canceled Public Comment Letters Schedule of Meetings AMENDED AGENDA ITEMS 9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and (2) a Purchase Order with One Workplace in the Amount of $480,229 for the Public Safety Building Capital Project (PE‐ 15001); CEQA: Environmental Impact Report for the Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) Title Updated 16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for Radio Communication Systems for the New Public Safety Building Capital Project (PE‐15001), including $399,007 for Basic Services and $39,900 for Additional Services; CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772) Supplemental Report 23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology Contract Management; CEQA Status – Not a Project Late Packet Report added 24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster Recovery Preparedness; CEQA Status – Not a Project Late Packet Report added 25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide Risk Assessment & FY23‐02 Annual Audit Plan; CEQA Status – Not a Project Late Packet Report added 28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1) Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, Proposed Reserve Transfers, and Increasing Wastewater 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; 3) Amending Utility Rate Schedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent and amending Rate Schedule EDF‐3 to make technical revisions with no rate change; and 4) Amending Utility Rate Schedule D‐1 Increasing the Storm Water Management Fee by 4.9 Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated 29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project Late Packet Report added 30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 Late Packet Report added 31.Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of $1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project and therefore is exempt from California Environmental Quality Act (CEQA)) Title Updated AA1.Colleagues Memo: Approval of a “Friendship City” Program New Item PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to hybrid meetings via email, in person, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. 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 City 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 phone from the Apple App Store or Google Play Store and enter 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 tospeak. 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 limitallotted. Click to Join Zoom Meeting ID: 362‐027‐238 Phone: 1(669)900‐6833 AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329‐2550 (Voice) 48 hours or more in advance. 1 Special Meeting June 19, 2023 Materials submitted to the Board after distribution of the agenda packet are available for public inspection CITY COUNCILSpecial MeetingMonday, June 19, 2023Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. To maximize public safety while still maintainingtransparency and public access, members of the public can choose to participate from home orattend in person. Information on how the public may observe and participate in the meeting islocated at the end of the agenda. Masks are strongly encouraged if attending in person. Them e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o nYouTube 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)900‐6833CALL TO ORDERThis meeting will be called to order in honor of Caribbean American Heritage Month.SPECIAL ORDERS OF THE DAY (5:35 ‐ 5:40 PM)1.Proclamation Honoring Juneteenth 2023AGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (5:40 ‐ 5:55 PM)COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:55 ‐ 6:00 PM)CONSENT CALENDAR (6:00 ‐ 6:15 PM) 2.Approval of Minutes from May 22, 2023 and June 5, 2023 Meetings 3.Approval of a Purchase Order with The Public Restroom Company in the Amount of $369,749 to Provide and Install a Modular Restroom Building at the Cubberley Community Center Fields for the Cubberley Field Restroom Capital Project (CB‐17002); CEQA status – exempt under CEQA Guidelines Section 15303 4.Approval of Construction Contract Number C23187877 with Casey Construction, Inc. in the amount of $410,604, Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $41,060, and approval of a FY 2023 Budget Amendment in the Stormwater Management Fund for the Trash Capture Device Installation Project, Capital Improvement Program Project SD‐22002; CEQA status – exempt under CEQA Guideline Section 15303. Q&A 5.Utilities Advisory Commission Recommends Adoption of the 2023 Annual Water Shortage Assessment Report 6.Grant of Easements to City of Mountain View for the City of Mountain View’s Phase 2 San Antonio Area Sewer Main Improvements Project. CEQA Status – Exempt Under CEQA Guidelines Section 15378(b)(5). 7.Approval of Construction Contract with OBS Engineering, Inc. (#C23187759) in the Amount of $4,199,222 and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $419,922 for the Boulware Park Improvements project (PE‐17005) and Green Stormwater Infrastructure project (SD‐ 22001); and Approval of FY 2023 Budget Amendments in the Park Development Impact Fee, Stormwater Management, and Capital Improvement Funds; CEQA status—exempt under CEQA Guidelines sections 15301 (existing facilities), 15302 (replacement or reconstruction), 15303 (small structures), and 15311 (accessory structures) Q&A 8.Approval of the Conceptual Plan for Quiet Zone at Palo Alto Avenue/Alma Street Rail Crossing and Direct Staff to Proceed with Design and Construction of the Project. CEQA status – categorically exempt (Regulation 15301). 9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and (2) a Purchase Order with One Workplace in the Amount of $480,229 for the Public Safety Building Capital Project (PE‐15001); CEQA: Environmental Impact Report for the Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) Title Updated, Q&A 10.Approval of a one‐year General Services contract with Stephen Ciari Plumbing and Heating, Inc. for Backflow Prevention Devices Testing, Repair, and Certification Services and Approval of a FY 2023 Budget Amendment in the General Fund; CEQA Status – Categorically Exempt 15301 and 15302 11.Approval of Amendment No. 1 with South Bay Regional Public Safety Training Consortium (Contract No S23187799) for Fire Academy and Other Training Services extended through 12/31/2023 and increasing the total compensation by $114,370 for a total contract amount not to exceed $199,000. CEQA status: not a project. 12.Approval of the Fiscal Year 2024 Investment Policy 13.City Council Appointment of the Castilleja Neighborhood Committee in Accordance With Condition Number 33 Contained in Record of Land Use Action 2022‐22 Authorizing Redevelopment of Private School at 1310 Bryant Street (Castilleja School). Environmental Assessment: Exempt from CEQA Pursuant to CEQA Guidelines Section 15061(b)(3). 14.Authorization for the City Manager to Negotiate and Execute a Memorandum of Understanding and Funding Agreement with Peninsula Corridor Joint Powers Board (Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank of the San Francisquito Creek 15.Adopt an Ordinance Amending Palo Alto Municipal Code (PAMC) Section 9.10.060 (f) and Adoption of a Resolution to Modify the Administrative Penalty Schedule Related to Enforcement of the City’s Gas‐Powered Leaf Blower Ban. Environmental Analysis: Not Subject to CEQA Review in Accordance with CEQA Guidelines 15061(b)(3). 16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for Radio Communication Systems for the New Public Safety Building Capital Project (PE‐15001), including $399,007 for Basic Services and $39,900 for Additional Services; CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772) Supplemental Report added, Q&A 17.Authorization to Execute Amendment to Legal Services Contract S22184420 with Rankin Stock Heaberlin Oneal to Increase Amount by $150,000 for Total Not‐to‐Exceed Amount of $225,000 and to Extend the Term to January 2025; CEQA Status – Not a Project Q&A 18.Approval of Contract with VOX Network Solutions (C23187554) to Procure Services to Upgrade the City’s Phone System and a Three‐Year Support Term for a Total Amount Not‐To‐Exceed $504,107; CEQA Status—not a project 19.Approval and authorization to execute contract Amendment No. 2 with the OIR Group for an additional two‐year period and an additional $105,000 for a new not‐to‐exceed amount of $212,500 for independent police auditing services with a new expiration date of January 1, 2025. 20.Approval of Amendment Number 3 to the Agreement With Palo Alto Unified School District (PAUSD) for PAUSD Athletic Field Brokering and Maintenance Cost‐sharing to Extend the Term to June 30, 2024, with an Optional Extension for an Additional Six Months; CEQA status – categorically exempt (Regulation 15301). 21.Approval of the 2023‐2024 Human Relations Commission Work Plan; CEQA Status – Not a Project 22.Approval of Office of City Auditor Remote and Flexible Work Study Report; CEQA Status – Not a Project 23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology Contract Management; CEQA Status – Not a Project Late Packet Report 24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster Recovery Preparedness; CEQA Status – Not a Project Late Packet Report 25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide Risk Assessment & FY23‐02 Annual Audit Plan; CEQA Status – Not a Project Late Packet Report 26.SECOND READING: Adoption of an Ordinance Amending Section 2.04.010 (Regular Meeting) of Chapter 2.04 (Council Organization and Procedure) of the Palo Alto Municipal Code to Change the City Council Meeting Start Time from Six p.m. to Five‐ Thirty p.m. (FIRST READING: June 5, 2023 PASSED 7‐0) 27.SECOND READING: Adoption of an Ordinance Amending Section Palo Alto Municipal Code Chapter 9.68, Rental Housing Stabilization, to Clarify the Definitions of At‐Fault and No‐Fault Just Cause for Evictions, Extend Just Cause Eviction Protections and Tenant Relocation Assistance to More Rental Units in Palo Alto than Offered by State Law, and Adopt a Security Deposit Limit for Unfurnished Rental Units in Palo Alto. Environmental Assessment: Exempt under CEQA Guidelines Section 15061(b)(3). (FIRST READING: June 5, 2023 PASSED 6‐1) CITY MANAGER COMMENTS (6:15 ‐ 6:30 PM) ACTION ITEMS (Item 28: 6:30 ‐ 7:15 PM, Item 29: 7:15 ‐ 8:30 PM) 28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1) Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, Proposed Reserve Transfers, and Increasing Wastewater 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; 3) Amending Utility Rate Schedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent and amending Rate Schedule EDF‐3 to make technical revisions with no rate change; and 4) Amending Utility Rate Schedule D‐1 Increasing the Storm Water Management Fee by 4.9 Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated 29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project Late Packet Report BREAK CONSENT CALENDAR (8:30 ‐ 8:40 PM) 30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 Late Packet Report 31.Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of $1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project and therefore is exempt from California Environmental Quality Act (CEQA)) Title Updated 32.Approval of a Blanket Purchase Order with Graniterock Company for the purchase of Sand, Rock, and Cutback‐Cold Mix Asphalt Materials for the Public Works and Utilities Departments for a three‐year term ending June 30, 2026; CEQA – Not a Project 33.Approval of Contract No. C23187298A with MuniServices, LLC for Tax and Fee Consulting Services in a Total Not‐To‐Exceed Amount of $1,161,550 Over a Five‐Year Term and Contract No. C23187298B with HdL Coren & Cone for Property Tax Consulting Services in a Total Not‐To‐Exceed Amount of $111,800 Over a Five‐Year Term; CEQA Status – Not a Project 34.Approval of Professional Services Contract with Kittelson & Associates for a Not‐to‐ Exceed Amount of $333,945 for the Bicycle and Pedestrian Transportation Plan Update 35.Approve and Authorize the City Manager to Execute a Grant Agreement with the Federal Highway Administration (FHWA) to Develop the Palo Alto Safe Streets for All (SS4A) Action Plan by Receiving $160,000 in Federal Funds and Requiring $40,000 in City Matching Funds over Two Years and Approve a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA status – not a project. 36.Approval of Contract Number C23187284 with Michael Baker International (MBI) for a Not‐to Exceed Amount of $211,310 to Provide Administration and Consulting Services for the City’s Community Development Block Grant (CDBG) Program for a Term of Two‐ years Through June 2025 37.Approval of Amendment No. 1 to the Lease Agreement between the Palo Alto Unified School District (PAUSD) (Landlord) and the City of Palo Alto (Tenant) for Extended Day Care Spaces for an Initial 12‐Month Term, Rent Not to Exceed $707,676 per Year; CEQA Status – Not a Project 38.Approval of a Professional Services Agreement (Contract No. C23184669A) with LifeMoves for the provision of Homeless Outreach Services in an Amount Not to Exceed of $460,000 for a term of two years; CEQA status – not a project. 39.Acceptance of an Outdoor Environmental Education Facilities Grant from the California Department of Parks and Recreation in the amount of One Hundred and Sixty‐Two Thousand Dollars ($162,000) for Signage and Exhibits at the Palo Alto Baylands Nature Preserve, Approval of Deed Restrictions in the Baylands, and Approval of a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA – categorically exempt (Regulation 15311). 40.Approval of Contract with Downtown Streets Team, Inc. (C23188369) for a Total Not‐to‐ Exceed Amount of $168,340 for Fiscal Year 2024 for Workforce Development Services: Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section 15061(b)(3). STUDY SESSION (8:40 ‐ 9:55 PM) 41.Tree Protection Ordinance Year One Implementation Update ACTION ITEMS AA1.Colleagues Memo: Approval of a “Friendship City” Program New Item ADJOURNMENT INFORMATION REPORTS 42.Accessory Dwelling Unit (ADU) Quarterly Report (Quarter 1 of Calendar Year 2023) 43.Update on State Law AB 2097 and Local Implementation Informational Report. 44.Update on the Capital Improvement Program and Long Range Facility Planning Update for the Regional Water Quality Control Plant OTHER INFORMATION Standing Committee Meetings this week Rail Committee June 20, 2023 Finance Committee June 20, 2023 – Canceled Public Comment Letters Schedule of Meetings AMENDED AGENDA ITEMS 9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and (2) a Purchase Order with One Workplace in the Amount of $480,229 for the Public Safety Building Capital Project (PE‐ 15001); CEQA: Environmental Impact Report for the Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) Title Updated 16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for Radio Communication Systems for the New Public Safety Building Capital Project (PE‐15001), including $399,007 for Basic Services and $39,900 for Additional Services; CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772) Supplemental Report 23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology Contract Management; CEQA Status – Not a Project Late Packet Report added 24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster Recovery Preparedness; CEQA Status – Not a Project Late Packet Report added 25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide Risk Assessment & FY23‐02 Annual Audit Plan; CEQA Status – Not a Project Late Packet Report added 28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1) Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, Proposed Reserve Transfers, and Increasing Wastewater 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; 3) Amending Utility Rate Schedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent and amending Rate Schedule EDF‐3 to make technical revisions with no rate change; and 4) Amending Utility Rate Schedule D‐1 Increasing the Storm Water Management Fee by 4.9 Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated 29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project Late Packet Report added 30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 Late Packet Report added 31.Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of $1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project and therefore is exempt from California Environmental Quality Act (CEQA)) Title Updated AA1.Colleagues Memo: Approval of a “Friendship City” Program New Item PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to hybrid meetings via email, in person, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. 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 City 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 phone from the Apple App Store or Google Play Store and enter 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 tospeak. 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 limitallotted. Click to Join Zoom Meeting ID: 362‐027‐238 Phone: 1(669)900‐6833 AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329‐2550 (Voice) 48 hours or more in advance. 2 Special Meeting June 19, 2023 Materials submitted to the Board after distribution of the agenda packet are available for public inspection CITY COUNCILSpecial MeetingMonday, June 19, 2023Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. To maximize public safety while still maintainingtransparency and public access, members of the public can choose to participate from home orattend in person. Information on how the public may observe and participate in the meeting islocated at the end of the agenda. Masks are strongly encouraged if attending in person. Them e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o nYouTube 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)900‐6833CALL TO ORDERThis meeting will be called to order in honor of Caribbean American Heritage Month.SPECIAL ORDERS OF THE DAY (5:35 ‐ 5:40 PM)1.Proclamation Honoring Juneteenth 2023AGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (5:40 ‐ 5:55 PM)COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:55 ‐ 6:00 PM)CONSENT CALENDAR (6:00 ‐ 6:15 PM)2.Approval of Minutes from May 22, 2023 and June 5, 2023 Meetings3.Approval of a Purchase Order with The Public Restroom Company in the Amount of$369,749 to Provide and Install a Modular Restroom Building at the CubberleyCommunity Center Fields for the Cubberley Field Restroom Capital Project (CB‐17002);CEQA status – exempt under CEQA Guidelines Section 153034.Approval of Construction Contract Number C23187877 with Casey Construction, Inc. inthe amount of $410,604, Authorization for the City Manager to Negotiate and ExecuteChange Orders up to a Not‐to‐Exceed Amount of $41,060, and approval of a FY 2023Budget Amendment in the Stormwater Management Fund for the Trash Capture DeviceInstallation Project, Capital Improvement Program Project SD‐22002; CEQA status –exempt under CEQA Guideline Section 15303. Q&A5.Utilities Advisory Commission Recommends Adoption of the 2023 Annual Water ShortageAssessment Report6.Grant of Easements to City of Mountain View for the City of Mountain View’s Phase 2San Antonio Area Sewer Main Improvements Project. CEQA Status – Exempt Under CEQAGuidelines Section 15378(b)(5).7.Approval of Construction Contract with OBS Engineering, Inc. (#C23187759) in theAmount of $4,199,222 and Authorization for the City Manager to Negotiate and ExecuteChange Orders up to a Not‐to‐Exceed Amount of $419,922 for the Boulware ParkImprovements project (PE‐17005) and Green Stormwater Infrastructure project (SD‐22001); and Approval of FY 2023 Budget Amendments in the Park Development ImpactFee, Stormwater Management, and Capital Improvement Funds; CEQA status—exemptunder CEQA Guidelines sections 15301 (existing facilities), 15302 (replacement orreconstruction), 15303 (small structures), and 15311 (accessory structures) Q&A8.Approval of the Conceptual Plan for Quiet Zone at Palo Alto Avenue/Alma Street RailCrossing and Direct Staff to Proceed with Design and Construction of the Project. CEQAstatus – categorically exempt (Regulation 15301).9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and(2) a Purchase Order with One Workplace in the Amount of $480,229 for the PublicSafety Building Capital Project (PE‐15001); CEQA: Environmental Impact Report for thePublic Safety Building and New California Avenue Area Parking Garage (Resolution No.9772) Title Updated, Q&A10.Approval of a one‐year General Services contract with Stephen Ciari Plumbing andHeating, Inc. for Backflow Prevention Devices Testing, Repair, and Certification Servicesand Approval of a FY 2023 Budget Amendment in the General Fund; CEQA Status –Categorically Exempt 15301 and 15302 11.Approval of Amendment No. 1 with South Bay Regional Public Safety Training Consortium (Contract No S23187799) for Fire Academy and Other Training Services extended through 12/31/2023 and increasing the total compensation by $114,370 for a total contract amount not to exceed $199,000. CEQA status: not a project. 12.Approval of the Fiscal Year 2024 Investment Policy 13.City Council Appointment of the Castilleja Neighborhood Committee in Accordance With Condition Number 33 Contained in Record of Land Use Action 2022‐22 Authorizing Redevelopment of Private School at 1310 Bryant Street (Castilleja School). Environmental Assessment: Exempt from CEQA Pursuant to CEQA Guidelines Section 15061(b)(3). 14.Authorization for the City Manager to Negotiate and Execute a Memorandum of Understanding and Funding Agreement with Peninsula Corridor Joint Powers Board (Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank of the San Francisquito Creek 15.Adopt an Ordinance Amending Palo Alto Municipal Code (PAMC) Section 9.10.060 (f) and Adoption of a Resolution to Modify the Administrative Penalty Schedule Related to Enforcement of the City’s Gas‐Powered Leaf Blower Ban. Environmental Analysis: Not Subject to CEQA Review in Accordance with CEQA Guidelines 15061(b)(3). 16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for Radio Communication Systems for the New Public Safety Building Capital Project (PE‐15001), including $399,007 for Basic Services and $39,900 for Additional Services; CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772) Supplemental Report added, Q&A 17.Authorization to Execute Amendment to Legal Services Contract S22184420 with Rankin Stock Heaberlin Oneal to Increase Amount by $150,000 for Total Not‐to‐Exceed Amount of $225,000 and to Extend the Term to January 2025; CEQA Status – Not a Project Q&A 18.Approval of Contract with VOX Network Solutions (C23187554) to Procure Services to Upgrade the City’s Phone System and a Three‐Year Support Term for a Total Amount Not‐To‐Exceed $504,107; CEQA Status—not a project 19.Approval and authorization to execute contract Amendment No. 2 with the OIR Group for an additional two‐year period and an additional $105,000 for a new not‐to‐exceed amount of $212,500 for independent police auditing services with a new expiration date of January 1, 2025. 20.Approval of Amendment Number 3 to the Agreement With Palo Alto Unified School District (PAUSD) for PAUSD Athletic Field Brokering and Maintenance Cost‐sharing to Extend the Term to June 30, 2024, with an Optional Extension for an Additional Six Months; CEQA status – categorically exempt (Regulation 15301). 21.Approval of the 2023‐2024 Human Relations Commission Work Plan; CEQA Status – Not a Project 22.Approval of Office of City Auditor Remote and Flexible Work Study Report; CEQA Status – Not a Project 23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology Contract Management; CEQA Status – Not a Project Late Packet Report 24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster Recovery Preparedness; CEQA Status – Not a Project Late Packet Report 25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide Risk Assessment & FY23‐02 Annual Audit Plan; CEQA Status – Not a Project Late Packet Report 26.SECOND READING: Adoption of an Ordinance Amending Section 2.04.010 (Regular Meeting) of Chapter 2.04 (Council Organization and Procedure) of the Palo Alto Municipal Code to Change the City Council Meeting Start Time from Six p.m. to Five‐ Thirty p.m. (FIRST READING: June 5, 2023 PASSED 7‐0) 27.SECOND READING: Adoption of an Ordinance Amending Section Palo Alto Municipal Code Chapter 9.68, Rental Housing Stabilization, to Clarify the Definitions of At‐Fault and No‐Fault Just Cause for Evictions, Extend Just Cause Eviction Protections and Tenant Relocation Assistance to More Rental Units in Palo Alto than Offered by State Law, and Adopt a Security Deposit Limit for Unfurnished Rental Units in Palo Alto. Environmental Assessment: Exempt under CEQA Guidelines Section 15061(b)(3). (FIRST READING: June 5, 2023 PASSED 6‐1) CITY MANAGER COMMENTS (6:15 ‐ 6:30 PM) ACTION ITEMS (Item 28: 6:30 ‐ 7:15 PM, Item 29: 7:15 ‐ 8:30 PM) 28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1) Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, Proposed Reserve Transfers, and Increasing Wastewater 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; 3) Amending Utility Rate Schedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent and amending Rate Schedule EDF‐3 to make technical revisions with no rate change; and 4) Amending Utility Rate Schedule D‐1 Increasing the Storm Water Management Fee by 4.9 Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated 29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project Late Packet Report BREAK CONSENT CALENDAR (8:30 ‐ 8:40 PM) 30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 Late Packet Report 31.Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of $1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project and therefore is exempt from California Environmental Quality Act (CEQA)) Title Updated 32.Approval of a Blanket Purchase Order with Graniterock Company for the purchase of Sand, Rock, and Cutback‐Cold Mix Asphalt Materials for the Public Works and Utilities Departments for a three‐year term ending June 30, 2026; CEQA – Not a Project 33.Approval of Contract No. C23187298A with MuniServices, LLC for Tax and Fee Consulting Services in a Total Not‐To‐Exceed Amount of $1,161,550 Over a Five‐Year Term and Contract No. C23187298B with HdL Coren & Cone for Property Tax Consulting Services in a Total Not‐To‐Exceed Amount of $111,800 Over a Five‐Year Term; CEQA Status – Not a Project 34.Approval of Professional Services Contract with Kittelson & Associates for a Not‐to‐ Exceed Amount of $333,945 for the Bicycle and Pedestrian Transportation Plan Update 35.Approve and Authorize the City Manager to Execute a Grant Agreement with the Federal Highway Administration (FHWA) to Develop the Palo Alto Safe Streets for All (SS4A) Action Plan by Receiving $160,000 in Federal Funds and Requiring $40,000 in City Matching Funds over Two Years and Approve a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA status – not a project. 36.Approval of Contract Number C23187284 with Michael Baker International (MBI) for a Not‐to Exceed Amount of $211,310 to Provide Administration and Consulting Services for the City’s Community Development Block Grant (CDBG) Program for a Term of Two‐ years Through June 2025 37.Approval of Amendment No. 1 to the Lease Agreement between the Palo Alto Unified School District (PAUSD) (Landlord) and the City of Palo Alto (Tenant) for Extended Day Care Spaces for an Initial 12‐Month Term, Rent Not to Exceed $707,676 per Year; CEQA Status – Not a Project 38.Approval of a Professional Services Agreement (Contract No. C23184669A) with LifeMoves for the provision of Homeless Outreach Services in an Amount Not to Exceed of $460,000 for a term of two years; CEQA status – not a project. 39.Acceptance of an Outdoor Environmental Education Facilities Grant from the California Department of Parks and Recreation in the amount of One Hundred and Sixty‐Two Thousand Dollars ($162,000) for Signage and Exhibits at the Palo Alto Baylands Nature Preserve, Approval of Deed Restrictions in the Baylands, and Approval of a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA – categorically exempt (Regulation 15311). 40.Approval of Contract with Downtown Streets Team, Inc. (C23188369) for a Total Not‐to‐ Exceed Amount of $168,340 for Fiscal Year 2024 for Workforce Development Services: Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section 15061(b)(3). STUDY SESSION (8:40 ‐ 9:55 PM) 41.Tree Protection Ordinance Year One Implementation Update ACTION ITEMS AA1.Colleagues Memo: Approval of a “Friendship City” Program New Item ADJOURNMENT INFORMATION REPORTS 42.Accessory Dwelling Unit (ADU) Quarterly Report (Quarter 1 of Calendar Year 2023) 43.Update on State Law AB 2097 and Local Implementation Informational Report. 44.Update on the Capital Improvement Program and Long Range Facility Planning Update for the Regional Water Quality Control Plant OTHER INFORMATION Standing Committee Meetings this week Rail Committee June 20, 2023 Finance Committee June 20, 2023 – Canceled Public Comment Letters Schedule of Meetings AMENDED AGENDA ITEMS 9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and (2) a Purchase Order with One Workplace in the Amount of $480,229 for the Public Safety Building Capital Project (PE‐ 15001); CEQA: Environmental Impact Report for the Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) Title Updated 16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for Radio Communication Systems for the New Public Safety Building Capital Project (PE‐15001), including $399,007 for Basic Services and $39,900 for Additional Services; CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772) Supplemental Report 23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology Contract Management; CEQA Status – Not a Project Late Packet Report added 24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster Recovery Preparedness; CEQA Status – Not a Project Late Packet Report added 25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide Risk Assessment & FY23‐02 Annual Audit Plan; CEQA Status – Not a Project Late Packet Report added 28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1) Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, Proposed Reserve Transfers, and Increasing Wastewater 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; 3) Amending Utility Rate Schedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent and amending Rate Schedule EDF‐3 to make technical revisions with no rate change; and 4) Amending Utility Rate Schedule D‐1 Increasing the Storm Water Management Fee by 4.9 Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated 29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project Late Packet Report added 30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 Late Packet Report added 31.Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of $1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project and therefore is exempt from California Environmental Quality Act (CEQA)) Title Updated AA1.Colleagues Memo: Approval of a “Friendship City” Program New Item PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to hybrid meetings via email, in person, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. 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 City 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 phone from the Apple App Store or Google Play Store and enter 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 tospeak. 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 limitallotted. Click to Join Zoom Meeting ID: 362‐027‐238 Phone: 1(669)900‐6833 AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329‐2550 (Voice) 48 hours or more in advance. 3 Special Meeting June 19, 2023 Materials submitted to the Board after distribution of the agenda packet are available for public inspection CITY COUNCILSpecial MeetingMonday, June 19, 2023Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. To maximize public safety while still maintainingtransparency and public access, members of the public can choose to participate from home orattend in person. Information on how the public may observe and participate in the meeting islocated at the end of the agenda. Masks are strongly encouraged if attending in person. Them e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o nYouTube 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)900‐6833CALL TO ORDERThis meeting will be called to order in honor of Caribbean American Heritage Month.SPECIAL ORDERS OF THE DAY (5:35 ‐ 5:40 PM)1.Proclamation Honoring Juneteenth 2023AGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (5:40 ‐ 5:55 PM)COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:55 ‐ 6:00 PM)CONSENT CALENDAR (6:00 ‐ 6:15 PM)2.Approval of Minutes from May 22, 2023 and June 5, 2023 Meetings3.Approval of a Purchase Order with The Public Restroom Company in the Amount of$369,749 to Provide and Install a Modular Restroom Building at the CubberleyCommunity Center Fields for the Cubberley Field Restroom Capital Project (CB‐17002);CEQA status – exempt under CEQA Guidelines Section 153034.Approval of Construction Contract Number C23187877 with Casey Construction, Inc. inthe amount of $410,604, Authorization for the City Manager to Negotiate and ExecuteChange Orders up to a Not‐to‐Exceed Amount of $41,060, and approval of a FY 2023Budget Amendment in the Stormwater Management Fund for the Trash Capture DeviceInstallation Project, Capital Improvement Program Project SD‐22002; CEQA status –exempt under CEQA Guideline Section 15303. Q&A5.Utilities Advisory Commission Recommends Adoption of the 2023 Annual Water ShortageAssessment Report6.Grant of Easements to City of Mountain View for the City of Mountain View’s Phase 2San Antonio Area Sewer Main Improvements Project. CEQA Status – Exempt Under CEQAGuidelines Section 15378(b)(5).7.Approval of Construction Contract with OBS Engineering, Inc. (#C23187759) in theAmount of $4,199,222 and Authorization for the City Manager to Negotiate and ExecuteChange Orders up to a Not‐to‐Exceed Amount of $419,922 for the Boulware ParkImprovements project (PE‐17005) and Green Stormwater Infrastructure project (SD‐22001); and Approval of FY 2023 Budget Amendments in the Park Development ImpactFee, Stormwater Management, and Capital Improvement Funds; CEQA status—exemptunder CEQA Guidelines sections 15301 (existing facilities), 15302 (replacement orreconstruction), 15303 (small structures), and 15311 (accessory structures) Q&A8.Approval of the Conceptual Plan for Quiet Zone at Palo Alto Avenue/Alma Street RailCrossing and Direct Staff to Proceed with Design and Construction of the Project. CEQAstatus – categorically exempt (Regulation 15301).9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and(2) a Purchase Order with One Workplace in the Amount of $480,229 for the PublicSafety Building Capital Project (PE‐15001); CEQA: Environmental Impact Report for thePublic Safety Building and New California Avenue Area Parking Garage (Resolution No.9772) Title Updated, Q&A10.Approval of a one‐year General Services contract with Stephen Ciari Plumbing andHeating, Inc. for Backflow Prevention Devices Testing, Repair, and Certification Servicesand Approval of a FY 2023 Budget Amendment in the General Fund; CEQA Status –Categorically Exempt 15301 and 1530211.Approval of Amendment No. 1 with South Bay Regional Public Safety TrainingConsortium (Contract No S23187799) for Fire Academy and Other Training Servicesextended through 12/31/2023 and increasing the total compensation by $114,370 for atotal contract amount not to exceed $199,000. CEQA status: not a project.12.Approval of the Fiscal Year 2024 Investment Policy13.City Council Appointment of the Castilleja Neighborhood Committee in Accordance WithCondition Number 33 Contained in Record of Land Use Action 2022‐22 AuthorizingRedevelopment of Private School at 1310 Bryant Street (Castilleja School).Environmental Assessment: Exempt from CEQA Pursuant to CEQA Guidelines Section15061(b)(3).14.Authorization for the City Manager to Negotiate and Execute a Memorandum ofUnderstanding and Funding Agreement with Peninsula Corridor Joint Powers Board(Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank ofthe San Francisquito Creek15.Adopt an Ordinance Amending Palo Alto Municipal Code (PAMC) Section 9.10.060 (f)and Adoption of a Resolution to Modify the Administrative Penalty Schedule Related toEnforcement of the City’s Gas‐Powered Leaf Blower Ban. Environmental Analysis: NotSubject to CEQA Review in Accordance with CEQA Guidelines 15061(b)(3).16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for RadioCommunication Systems for the New Public Safety Building Capital Project (PE‐15001),including $399,007 for Basic Services and $39,900 for Additional Services; CEQA:Environmental Impact Report for the PSB and New California Avenue Area ParkingGarage (Resolution No. 9772) Supplemental Report added, Q&A17.Authorization to Execute Amendment to Legal Services Contract S22184420 with RankinStock Heaberlin Oneal to Increase Amount by $150,000 for Total Not‐to‐Exceed Amountof $225,000 and to Extend the Term to January 2025; CEQA Status – Not a Project Q&A18.Approval of Contract with VOX Network Solutions (C23187554) to Procure Services toUpgrade the City’s Phone System and a Three‐Year Support Term for a Total AmountNot‐To‐Exceed $504,107; CEQA Status—not a project19.Approval and authorization to execute contract Amendment No. 2 with the OIR Groupfor an additional two‐year period and an additional $105,000 for a new not‐to‐exceedamount of $212,500 for independent police auditing services with a new expiration dateof January 1, 2025.20.Approval of Amendment Number 3 to the Agreement With Palo Alto Unified School District (PAUSD) for PAUSD Athletic Field Brokering and Maintenance Cost‐sharing to Extend the Term to June 30, 2024, with an Optional Extension for an Additional Six Months; CEQA status – categorically exempt (Regulation 15301). 21.Approval of the 2023‐2024 Human Relations Commission Work Plan; CEQA Status – Not a Project 22.Approval of Office of City Auditor Remote and Flexible Work Study Report; CEQA Status – Not a Project 23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology Contract Management; CEQA Status – Not a Project Late Packet Report 24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster Recovery Preparedness; CEQA Status – Not a Project Late Packet Report 25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide Risk Assessment & FY23‐02 Annual Audit Plan; CEQA Status – Not a Project Late Packet Report 26.SECOND READING: Adoption of an Ordinance Amending Section 2.04.010 (Regular Meeting) of Chapter 2.04 (Council Organization and Procedure) of the Palo Alto Municipal Code to Change the City Council Meeting Start Time from Six p.m. to Five‐ Thirty p.m. (FIRST READING: June 5, 2023 PASSED 7‐0) 27.SECOND READING: Adoption of an Ordinance Amending Section Palo Alto Municipal Code Chapter 9.68, Rental Housing Stabilization, to Clarify the Definitions of At‐Fault and No‐Fault Just Cause for Evictions, Extend Just Cause Eviction Protections and Tenant Relocation Assistance to More Rental Units in Palo Alto than Offered by State Law, and Adopt a Security Deposit Limit for Unfurnished Rental Units in Palo Alto. Environmental Assessment: Exempt under CEQA Guidelines Section 15061(b)(3). (FIRST READING: June 5, 2023 PASSED 6‐1) CITY MANAGER COMMENTS (6:15 ‐ 6:30 PM) ACTION ITEMS (Item 28: 6:30 ‐ 7:15 PM, Item 29: 7:15 ‐ 8:30 PM) 28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1) Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, Proposed Reserve Transfers, and Increasing Wastewater 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; 3) Amending Utility Rate Schedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent and amending Rate Schedule EDF‐3 to make technical revisions with no rate change; and 4) Amending Utility Rate Schedule D‐1 Increasing the Storm Water Management Fee by 4.9 Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated 29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project Late Packet Report BREAK CONSENT CALENDAR (8:30 ‐ 8:40 PM) 30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 Late Packet Report 31.Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of $1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project and therefore is exempt from California Environmental Quality Act (CEQA)) Title Updated 32.Approval of a Blanket Purchase Order with Graniterock Company for the purchase of Sand, Rock, and Cutback‐Cold Mix Asphalt Materials for the Public Works and Utilities Departments for a three‐year term ending June 30, 2026; CEQA – Not a Project 33.Approval of Contract No. C23187298A with MuniServices, LLC for Tax and Fee Consulting Services in a Total Not‐To‐Exceed Amount of $1,161,550 Over a Five‐Year Term and Contract No. C23187298B with HdL Coren & Cone for Property Tax Consulting Services in a Total Not‐To‐Exceed Amount of $111,800 Over a Five‐Year Term; CEQA Status – Not a Project 34.Approval of Professional Services Contract with Kittelson & Associates for a Not‐to‐ Exceed Amount of $333,945 for the Bicycle and Pedestrian Transportation Plan Update 35.Approve and Authorize the City Manager to Execute a Grant Agreement with the Federal Highway Administration (FHWA) to Develop the Palo Alto Safe Streets for All (SS4A) Action Plan by Receiving $160,000 in Federal Funds and Requiring $40,000 in City Matching Funds over Two Years and Approve a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA status – not a project. 36.Approval of Contract Number C23187284 with Michael Baker International (MBI) for a Not‐to Exceed Amount of $211,310 to Provide Administration and Consulting Services for the City’s Community Development Block Grant (CDBG) Program for a Term of Two‐ years Through June 2025 37.Approval of Amendment No. 1 to the Lease Agreement between the Palo Alto Unified School District (PAUSD) (Landlord) and the City of Palo Alto (Tenant) for Extended Day Care Spaces for an Initial 12‐Month Term, Rent Not to Exceed $707,676 per Year; CEQA Status – Not a Project 38.Approval of a Professional Services Agreement (Contract No. C23184669A) with LifeMoves for the provision of Homeless Outreach Services in an Amount Not to Exceed of $460,000 for a term of two years; CEQA status – not a project. 39.Acceptance of an Outdoor Environmental Education Facilities Grant from the California Department of Parks and Recreation in the amount of One Hundred and Sixty‐Two Thousand Dollars ($162,000) for Signage and Exhibits at the Palo Alto Baylands Nature Preserve, Approval of Deed Restrictions in the Baylands, and Approval of a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA – categorically exempt (Regulation 15311). 40.Approval of Contract with Downtown Streets Team, Inc. (C23188369) for a Total Not‐to‐ Exceed Amount of $168,340 for Fiscal Year 2024 for Workforce Development Services: Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section 15061(b)(3). STUDY SESSION (8:40 ‐ 9:55 PM) 41.Tree Protection Ordinance Year One Implementation Update ACTION ITEMS AA1.Colleagues Memo: Approval of a “Friendship City” Program New Item ADJOURNMENT INFORMATION REPORTS 42.Accessory Dwelling Unit (ADU) Quarterly Report (Quarter 1 of Calendar Year 2023) 43.Update on State Law AB 2097 and Local Implementation Informational Report. 44.Update on the Capital Improvement Program and Long Range Facility Planning Update for the Regional Water Quality Control Plant OTHER INFORMATION Standing Committee Meetings this week Rail Committee June 20, 2023 Finance Committee June 20, 2023 – Canceled Public Comment Letters Schedule of Meetings AMENDED AGENDA ITEMS 9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and (2) a Purchase Order with One Workplace in the Amount of $480,229 for the Public Safety Building Capital Project (PE‐ 15001); CEQA: Environmental Impact Report for the Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) Title Updated 16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for Radio Communication Systems for the New Public Safety Building Capital Project (PE‐15001), including $399,007 for Basic Services and $39,900 for Additional Services; CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772) Supplemental Report 23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology Contract Management; CEQA Status – Not a Project Late Packet Report added 24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster Recovery Preparedness; CEQA Status – Not a Project Late Packet Report added 25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide Risk Assessment & FY23‐02 Annual Audit Plan; CEQA Status – Not a Project Late Packet Report added 28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1) Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, Proposed Reserve Transfers, and Increasing Wastewater 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; 3) Amending Utility Rate Schedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent and amending Rate Schedule EDF‐3 to make technical revisions with no rate change; and 4) Amending Utility Rate Schedule D‐1 Increasing the Storm Water Management Fee by 4.9 Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated 29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project Late Packet Report added 30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 Late Packet Report added 31.Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of $1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project and therefore is exempt from California Environmental Quality Act (CEQA)) Title Updated AA1.Colleagues Memo: Approval of a “Friendship City” Program New Item PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to hybrid meetings via email, in person, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. 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 City 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 phone from the Apple App Store or Google Play Store and enter the Meeting ID below You may be asked to enter an email address and name. 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Click to Join Zoom Meeting ID: 362‐027‐238 Phone: 1(669)900‐6833 AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329‐2550 (Voice) 48 hours or more in advance. 4 Special Meeting June 19, 2023 Materials submitted to the Board after distribution of the agenda packet are available for public inspection CITY COUNCILSpecial MeetingMonday, June 19, 2023Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. To maximize public safety while still maintainingtransparency and public access, members of the public can choose to participate from home orattend in person. Information on how the public may observe and participate in the meeting islocated at the end of the agenda. Masks are strongly encouraged if attending in person. Them e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o nYouTube 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)900‐6833CALL TO ORDERThis meeting will be called to order in honor of Caribbean American Heritage Month.SPECIAL ORDERS OF THE DAY (5:35 ‐ 5:40 PM)1.Proclamation Honoring Juneteenth 2023AGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (5:40 ‐ 5:55 PM)COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:55 ‐ 6:00 PM)CONSENT CALENDAR (6:00 ‐ 6:15 PM)2.Approval of Minutes from May 22, 2023 and June 5, 2023 Meetings3.Approval of a Purchase Order with The Public Restroom Company in the Amount of$369,749 to Provide and Install a Modular Restroom Building at the CubberleyCommunity Center Fields for the Cubberley Field Restroom Capital Project (CB‐17002);CEQA status – exempt under CEQA Guidelines Section 153034.Approval of Construction Contract Number C23187877 with Casey Construction, Inc. inthe amount of $410,604, Authorization for the City Manager to Negotiate and ExecuteChange Orders up to a Not‐to‐Exceed Amount of $41,060, and approval of a FY 2023Budget Amendment in the Stormwater Management Fund for the Trash Capture DeviceInstallation Project, Capital Improvement Program Project SD‐22002; CEQA status –exempt under CEQA Guideline Section 15303. Q&A5.Utilities Advisory Commission Recommends Adoption of the 2023 Annual Water ShortageAssessment Report6.Grant of Easements to City of Mountain View for the City of Mountain View’s Phase 2San Antonio Area Sewer Main Improvements Project. CEQA Status – Exempt Under CEQAGuidelines Section 15378(b)(5).7.Approval of Construction Contract with OBS Engineering, Inc. (#C23187759) in theAmount of $4,199,222 and Authorization for the City Manager to Negotiate and ExecuteChange Orders up to a Not‐to‐Exceed Amount of $419,922 for the Boulware ParkImprovements project (PE‐17005) and Green Stormwater Infrastructure project (SD‐22001); and Approval of FY 2023 Budget Amendments in the Park Development ImpactFee, Stormwater Management, and Capital Improvement Funds; CEQA status—exemptunder CEQA Guidelines sections 15301 (existing facilities), 15302 (replacement orreconstruction), 15303 (small structures), and 15311 (accessory structures) Q&A8.Approval of the Conceptual Plan for Quiet Zone at Palo Alto Avenue/Alma Street RailCrossing and Direct Staff to Proceed with Design and Construction of the Project. CEQAstatus – categorically exempt (Regulation 15301).9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and(2) a Purchase Order with One Workplace in the Amount of $480,229 for the PublicSafety Building Capital Project (PE‐15001); CEQA: Environmental Impact Report for thePublic Safety Building and New California Avenue Area Parking Garage (Resolution No.9772) Title Updated, Q&A10.Approval of a one‐year General Services contract with Stephen Ciari Plumbing andHeating, Inc. for Backflow Prevention Devices Testing, Repair, and Certification Servicesand Approval of a FY 2023 Budget Amendment in the General Fund; CEQA Status –Categorically Exempt 15301 and 1530211.Approval of Amendment No. 1 with South Bay Regional Public Safety TrainingConsortium (Contract No S23187799) for Fire Academy and Other Training Servicesextended through 12/31/2023 and increasing the total compensation by $114,370 for atotal contract amount not to exceed $199,000. CEQA status: not a project.12.Approval of the Fiscal Year 2024 Investment Policy13.City Council Appointment of the Castilleja Neighborhood Committee in Accordance WithCondition Number 33 Contained in Record of Land Use Action 2022‐22 AuthorizingRedevelopment of Private School at 1310 Bryant Street (Castilleja School).Environmental Assessment: Exempt from CEQA Pursuant to CEQA Guidelines Section15061(b)(3).14.Authorization for the City Manager to Negotiate and Execute a Memorandum ofUnderstanding and Funding Agreement with Peninsula Corridor Joint Powers Board(Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank ofthe San Francisquito Creek15.Adopt an Ordinance Amending Palo Alto Municipal Code (PAMC) Section 9.10.060 (f)and Adoption of a Resolution to Modify the Administrative Penalty Schedule Related toEnforcement of the City’s Gas‐Powered Leaf Blower Ban. Environmental Analysis: NotSubject to CEQA Review in Accordance with CEQA Guidelines 15061(b)(3).16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for RadioCommunication Systems for the New Public Safety Building Capital Project (PE‐15001),including $399,007 for Basic Services and $39,900 for Additional Services; CEQA:Environmental Impact Report for the PSB and New California Avenue Area ParkingGarage (Resolution No. 9772) Supplemental Report added, Q&A17.Authorization to Execute Amendment to Legal Services Contract S22184420 with RankinStock Heaberlin Oneal to Increase Amount by $150,000 for Total Not‐to‐Exceed Amountof $225,000 and to Extend the Term to January 2025; CEQA Status – Not a Project Q&A18.Approval of Contract with VOX Network Solutions (C23187554) to Procure Services toUpgrade the City’s Phone System and a Three‐Year Support Term for a Total AmountNot‐To‐Exceed $504,107; CEQA Status—not a project19.Approval and authorization to execute contract Amendment No. 2 with the OIR Groupfor an additional two‐year period and an additional $105,000 for a new not‐to‐exceedamount of $212,500 for independent police auditing services with a new expiration dateof January 1, 2025.20.Approval of Amendment Number 3 to the Agreement With Palo Alto Unified SchoolDistrict (PAUSD) for PAUSD Athletic Field Brokering and Maintenance Cost‐sharing toExtend the Term to June 30, 2024, with an Optional Extension for an Additional SixMonths; CEQA status – categorically exempt (Regulation 15301).21.Approval of the 2023‐2024 Human Relations Commission Work Plan; CEQA Status – Nota Project22.Approval of Office of City Auditor Remote and Flexible Work Study Report; CEQA Status– Not a Project23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology ContractManagement; CEQA Status – Not a Project Late Packet Report24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster RecoveryPreparedness; CEQA Status – Not a Project Late Packet Report25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide RiskAssessment & FY23‐02 Annual Audit Plan; CEQA Status – Not a Project Late PacketReport26.SECOND READING: Adoption of an Ordinance Amending Section 2.04.010 (RegularMeeting) of Chapter 2.04 (Council Organization and Procedure) of the Palo AltoMunicipal Code to Change the City Council Meeting Start Time from Six p.m. to Five‐Thirty p.m. (FIRST READING: June 5, 2023 PASSED 7‐0)27.SECOND READING: Adoption of an Ordinance Amending Section Palo Alto MunicipalCode Chapter 9.68, Rental Housing Stabilization, to Clarify the Definitions of At‐Faultand No‐Fault Just Cause for Evictions, Extend Just Cause Eviction Protections andTenant Relocation Assistance to More Rental Units in Palo Alto than Offered by StateLaw, and Adopt a Security Deposit Limit for Unfurnished Rental Units in Palo Alto.Environmental Assessment: Exempt under CEQA Guidelines Section 15061(b)(3). (FIRSTREADING: June 5, 2023 PASSED 6‐1)CITY MANAGER COMMENTS (6:15 ‐ 6:30 PM)ACTION ITEMS (Item 28: 6:30 ‐ 7:15 PM, Item 29: 7:15 ‐ 8:30 PM)28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1)Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, ProposedReserve Transfers, and Increasing Wastewater Rates by Amending WastewaterCollection Rate Schedules S‐1, S‐2, S‐6 and S‐7; 2) Approving the Fiscal Year 2024 WaterUtility Financial Plan, Proposed Reserve Transfers, and Increasing Water Rates byAmending Water Rate Schedules W‐1, W‐2, W‐3, W‐4, and W‐7; 3) Amending Utility Rate Schedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent and amending Rate Schedule EDF‐3 to make technical revisions with no rate change; and 4) Amending Utility Rate Schedule D‐1 Increasing the Storm Water Management Fee by 4.9 Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated 29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project Late Packet Report BREAK CONSENT CALENDAR (8:30 ‐ 8:40 PM) 30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 Late Packet Report 31.Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of $1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project and therefore is exempt from California Environmental Quality Act (CEQA)) Title Updated 32.Approval of a Blanket Purchase Order with Graniterock Company for the purchase of Sand, Rock, and Cutback‐Cold Mix Asphalt Materials for the Public Works and Utilities Departments for a three‐year term ending June 30, 2026; CEQA – Not a Project 33.Approval of Contract No. C23187298A with MuniServices, LLC for Tax and Fee Consulting Services in a Total Not‐To‐Exceed Amount of $1,161,550 Over a Five‐Year Term and Contract No. C23187298B with HdL Coren & Cone for Property Tax Consulting Services in a Total Not‐To‐Exceed Amount of $111,800 Over a Five‐Year Term; CEQA Status – Not a Project 34.Approval of Professional Services Contract with Kittelson & Associates for a Not‐to‐ Exceed Amount of $333,945 for the Bicycle and Pedestrian Transportation Plan Update 35.Approve and Authorize the City Manager to Execute a Grant Agreement with the Federal Highway Administration (FHWA) to Develop the Palo Alto Safe Streets for All (SS4A) Action Plan by Receiving $160,000 in Federal Funds and Requiring $40,000 in City Matching Funds over Two Years and Approve a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA status – not a project. 36.Approval of Contract Number C23187284 with Michael Baker International (MBI) for a Not‐to Exceed Amount of $211,310 to Provide Administration and Consulting Services for the City’s Community Development Block Grant (CDBG) Program for a Term of Two‐ years Through June 2025 37.Approval of Amendment No. 1 to the Lease Agreement between the Palo Alto Unified School District (PAUSD) (Landlord) and the City of Palo Alto (Tenant) for Extended Day Care Spaces for an Initial 12‐Month Term, Rent Not to Exceed $707,676 per Year; CEQA Status – Not a Project 38.Approval of a Professional Services Agreement (Contract No. C23184669A) with LifeMoves for the provision of Homeless Outreach Services in an Amount Not to Exceed of $460,000 for a term of two years; CEQA status – not a project. 39.Acceptance of an Outdoor Environmental Education Facilities Grant from the California Department of Parks and Recreation in the amount of One Hundred and Sixty‐Two Thousand Dollars ($162,000) for Signage and Exhibits at the Palo Alto Baylands Nature Preserve, Approval of Deed Restrictions in the Baylands, and Approval of a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA – categorically exempt (Regulation 15311). 40.Approval of Contract with Downtown Streets Team, Inc. (C23188369) for a Total Not‐to‐ Exceed Amount of $168,340 for Fiscal Year 2024 for Workforce Development Services: Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section 15061(b)(3). STUDY SESSION (8:40 ‐ 9:55 PM) 41.Tree Protection Ordinance Year One Implementation Update ACTION ITEMS AA1.Colleagues Memo: Approval of a “Friendship City” Program New Item ADJOURNMENT INFORMATION REPORTS 42.Accessory Dwelling Unit (ADU) Quarterly Report (Quarter 1 of Calendar Year 2023) 43.Update on State Law AB 2097 and Local Implementation Informational Report. 44.Update on the Capital Improvement Program and Long Range Facility Planning Update for the Regional Water Quality Control Plant OTHER INFORMATION Standing Committee Meetings this week Rail Committee June 20, 2023 Finance Committee June 20, 2023 – Canceled Public Comment Letters Schedule of Meetings AMENDED AGENDA ITEMS 9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and (2) a Purchase Order with One Workplace in the Amount of $480,229 for the Public Safety Building Capital Project (PE‐ 15001); CEQA: Environmental Impact Report for the Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) Title Updated 16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for Radio Communication Systems for the New Public Safety Building Capital Project (PE‐15001), including $399,007 for Basic Services and $39,900 for Additional Services; CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772) Supplemental Report 23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology Contract Management; CEQA Status – Not a Project Late Packet Report added 24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster Recovery Preparedness; CEQA Status – Not a Project Late Packet Report added 25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide Risk Assessment & FY23‐02 Annual Audit Plan; CEQA Status – Not a Project Late Packet Report added 28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1) Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, Proposed Reserve Transfers, and Increasing Wastewater 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; 3) Amending Utility Rate Schedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent and amending Rate Schedule EDF‐3 to make technical revisions with no rate change; and 4) Amending Utility Rate Schedule D‐1 Increasing the Storm Water Management Fee by 4.9 Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated 29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project Late Packet Report added 30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 Late Packet Report added 31.Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of $1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project and therefore is exempt from California Environmental Quality Act (CEQA)) Title Updated AA1.Colleagues Memo: Approval of a “Friendship City” Program New Item PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to hybrid meetings via email, in person, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. 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 City 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 phone from the Apple App Store or Google Play Store and enter 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 tospeak. 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 limitallotted. Click to Join Zoom Meeting ID: 362‐027‐238 Phone: 1(669)900‐6833 AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329‐2550 (Voice) 48 hours or more in advance. 5 Special Meeting June 19, 2023 Materials submitted to the Board after distribution of the agenda packet are available for public inspection CITY COUNCILSpecial MeetingMonday, June 19, 2023Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. To maximize public safety while still maintainingtransparency and public access, members of the public can choose to participate from home orattend in person. Information on how the public may observe and participate in the meeting islocated at the end of the agenda. Masks are strongly encouraged if attending in person. Them e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o nYouTube 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)900‐6833CALL TO ORDERThis meeting will be called to order in honor of Caribbean American Heritage Month.SPECIAL ORDERS OF THE DAY (5:35 ‐ 5:40 PM)1.Proclamation Honoring Juneteenth 2023AGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (5:40 ‐ 5:55 PM)COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:55 ‐ 6:00 PM)CONSENT CALENDAR (6:00 ‐ 6:15 PM)2.Approval of Minutes from May 22, 2023 and June 5, 2023 Meetings3.Approval of a Purchase Order with The Public Restroom Company in the Amount of$369,749 to Provide and Install a Modular Restroom Building at the CubberleyCommunity Center Fields for the Cubberley Field Restroom Capital Project (CB‐17002);CEQA status – exempt under CEQA Guidelines Section 153034.Approval of Construction Contract Number C23187877 with Casey Construction, Inc. inthe amount of $410,604, Authorization for the City Manager to Negotiate and ExecuteChange Orders up to a Not‐to‐Exceed Amount of $41,060, and approval of a FY 2023Budget Amendment in the Stormwater Management Fund for the Trash Capture DeviceInstallation Project, Capital Improvement Program Project SD‐22002; CEQA status –exempt under CEQA Guideline Section 15303. Q&A5.Utilities Advisory Commission Recommends Adoption of the 2023 Annual Water ShortageAssessment Report6.Grant of Easements to City of Mountain View for the City of Mountain View’s Phase 2San Antonio Area Sewer Main Improvements Project. CEQA Status – Exempt Under CEQAGuidelines Section 15378(b)(5).7.Approval of Construction Contract with OBS Engineering, Inc. (#C23187759) in theAmount of $4,199,222 and Authorization for the City Manager to Negotiate and ExecuteChange Orders up to a Not‐to‐Exceed Amount of $419,922 for the Boulware ParkImprovements project (PE‐17005) and Green Stormwater Infrastructure project (SD‐22001); and Approval of FY 2023 Budget Amendments in the Park Development ImpactFee, Stormwater Management, and Capital Improvement Funds; CEQA status—exemptunder CEQA Guidelines sections 15301 (existing facilities), 15302 (replacement orreconstruction), 15303 (small structures), and 15311 (accessory structures) Q&A8.Approval of the Conceptual Plan for Quiet Zone at Palo Alto Avenue/Alma Street RailCrossing and Direct Staff to Proceed with Design and Construction of the Project. CEQAstatus – categorically exempt (Regulation 15301).9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and(2) a Purchase Order with One Workplace in the Amount of $480,229 for the PublicSafety Building Capital Project (PE‐15001); CEQA: Environmental Impact Report for thePublic Safety Building and New California Avenue Area Parking Garage (Resolution No.9772) Title Updated, Q&A10.Approval of a one‐year General Services contract with Stephen Ciari Plumbing andHeating, Inc. for Backflow Prevention Devices Testing, Repair, and Certification Servicesand Approval of a FY 2023 Budget Amendment in the General Fund; CEQA Status –Categorically Exempt 15301 and 1530211.Approval of Amendment No. 1 with South Bay Regional Public Safety TrainingConsortium (Contract No S23187799) for Fire Academy and Other Training Servicesextended through 12/31/2023 and increasing the total compensation by $114,370 for atotal contract amount not to exceed $199,000. CEQA status: not a project.12.Approval of the Fiscal Year 2024 Investment Policy13.City Council Appointment of the Castilleja Neighborhood Committee in Accordance WithCondition Number 33 Contained in Record of Land Use Action 2022‐22 AuthorizingRedevelopment of Private School at 1310 Bryant Street (Castilleja School).Environmental Assessment: Exempt from CEQA Pursuant to CEQA Guidelines Section15061(b)(3).14.Authorization for the City Manager to Negotiate and Execute a Memorandum ofUnderstanding and Funding Agreement with Peninsula Corridor Joint Powers Board(Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank ofthe San Francisquito Creek15.Adopt an Ordinance Amending Palo Alto Municipal Code (PAMC) Section 9.10.060 (f)and Adoption of a Resolution to Modify the Administrative Penalty Schedule Related toEnforcement of the City’s Gas‐Powered Leaf Blower Ban. Environmental Analysis: NotSubject to CEQA Review in Accordance with CEQA Guidelines 15061(b)(3).16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for RadioCommunication Systems for the New Public Safety Building Capital Project (PE‐15001),including $399,007 for Basic Services and $39,900 for Additional Services; CEQA:Environmental Impact Report for the PSB and New California Avenue Area ParkingGarage (Resolution No. 9772) Supplemental Report added, Q&A17.Authorization to Execute Amendment to Legal Services Contract S22184420 with RankinStock Heaberlin Oneal to Increase Amount by $150,000 for Total Not‐to‐Exceed Amountof $225,000 and to Extend the Term to January 2025; CEQA Status – Not a Project Q&A18.Approval of Contract with VOX Network Solutions (C23187554) to Procure Services toUpgrade the City’s Phone System and a Three‐Year Support Term for a Total AmountNot‐To‐Exceed $504,107; CEQA Status—not a project19.Approval and authorization to execute contract Amendment No. 2 with the OIR Groupfor an additional two‐year period and an additional $105,000 for a new not‐to‐exceedamount of $212,500 for independent police auditing services with a new expiration dateof January 1, 2025.20.Approval of Amendment Number 3 to the Agreement With Palo Alto Unified SchoolDistrict (PAUSD) for PAUSD Athletic Field Brokering and Maintenance Cost‐sharing toExtend the Term to June 30, 2024, with an Optional Extension for an Additional SixMonths; CEQA status – categorically exempt (Regulation 15301).21.Approval of the 2023‐2024 Human Relations Commission Work Plan; CEQA Status – Nota Project22.Approval of Office of City Auditor Remote and Flexible Work Study Report; CEQA Status– Not a Project23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology ContractManagement; CEQA Status – Not a Project Late Packet Report24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster RecoveryPreparedness; CEQA Status – Not a Project Late Packet Report25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide RiskAssessment & FY23‐02 Annual Audit Plan; CEQA Status – Not a Project Late PacketReport26.SECOND READING: Adoption of an Ordinance Amending Section 2.04.010 (RegularMeeting) of Chapter 2.04 (Council Organization and Procedure) of the Palo AltoMunicipal Code to Change the City Council Meeting Start Time from Six p.m. to Five‐Thirty p.m. (FIRST READING: June 5, 2023 PASSED 7‐0)27.SECOND READING: Adoption of an Ordinance Amending Section Palo Alto MunicipalCode Chapter 9.68, Rental Housing Stabilization, to Clarify the Definitions of At‐Faultand No‐Fault Just Cause for Evictions, Extend Just Cause Eviction Protections andTenant Relocation Assistance to More Rental Units in Palo Alto than Offered by StateLaw, and Adopt a Security Deposit Limit for Unfurnished Rental Units in Palo Alto.Environmental Assessment: Exempt under CEQA Guidelines Section 15061(b)(3). (FIRSTREADING: June 5, 2023 PASSED 6‐1)CITY MANAGER COMMENTS (6:15 ‐ 6:30 PM)ACTION ITEMS (Item 28: 6:30 ‐ 7:15 PM, Item 29: 7:15 ‐ 8:30 PM)28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1)Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, ProposedReserve Transfers, and Increasing Wastewater Rates by Amending WastewaterCollection Rate Schedules S‐1, S‐2, S‐6 and S‐7; 2) Approving the Fiscal Year 2024 WaterUtility Financial Plan, Proposed Reserve Transfers, and Increasing Water Rates byAmending Water Rate Schedules W‐1, W‐2, W‐3, W‐4, and W‐7; 3) Amending UtilityRate Schedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent andamending Rate Schedule EDF‐3 to make technical revisions with no rate change; and 4)Amending Utility Rate Schedule D‐1 Increasing the Storm Water Management Fee by 4.9Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not aproject under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under PublicResources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including theOperating and Capital Budgets, Table of Organization, and Municipal Fee Schedule;Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates tothe Salary Schedule for the Management and Professionals Group; CEQA Status – Not aProject Late Packet ReportBREAKCONSENT CALENDAR (8:30 ‐ 8:40 PM)30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 LatePacket Report31.Approval of an Agreement Between Santa Clara Valley Water District and the City ofPalo Alto for Administration and Funding of Water Conservation and Stormwater RebatePrograms and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of$1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project andtherefore is exempt from California Environmental Quality Act (CEQA)) Title Updated32.Approval of a Blanket Purchase Order with Graniterock Company for the purchase ofSand, Rock, and Cutback‐Cold Mix Asphalt Materials for the Public Works and UtilitiesDepartments for a three‐year term ending June 30, 2026; CEQA – Not a Project33.Approval of Contract No. C23187298A with MuniServices, LLC for Tax and FeeConsulting Services in a Total Not‐To‐Exceed Amount of $1,161,550 Over a Five‐YearTerm and Contract No. C23187298B with HdL Coren & Cone for Property Tax ConsultingServices in a Total Not‐To‐Exceed Amount of $111,800 Over a Five‐Year Term; CEQAStatus – Not a Project34.Approval of Professional Services Contract with Kittelson & Associates for a Not‐to‐Exceed Amount of $333,945 for the Bicycle and Pedestrian Transportation Plan Update35.Approve and Authorize the City Manager to Execute a Grant Agreement with the FederalHighway Administration (FHWA) to Develop the Palo Alto Safe Streets for All (SS4A)Action Plan by Receiving $160,000 in Federal Funds and Requiring $40,000 in CityMatching Funds over Two Years and Approve a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA status – not a project. 36.Approval of Contract Number C23187284 with Michael Baker International (MBI) for a Not‐to Exceed Amount of $211,310 to Provide Administration and Consulting Services for the City’s Community Development Block Grant (CDBG) Program for a Term of Two‐ years Through June 2025 37.Approval of Amendment No. 1 to the Lease Agreement between the Palo Alto Unified School District (PAUSD) (Landlord) and the City of Palo Alto (Tenant) for Extended Day Care Spaces for an Initial 12‐Month Term, Rent Not to Exceed $707,676 per Year; CEQA Status – Not a Project 38.Approval of a Professional Services Agreement (Contract No. C23184669A) with LifeMoves for the provision of Homeless Outreach Services in an Amount Not to Exceed of $460,000 for a term of two years; CEQA status – not a project. 39.Acceptance of an Outdoor Environmental Education Facilities Grant from the California Department of Parks and Recreation in the amount of One Hundred and Sixty‐Two Thousand Dollars ($162,000) for Signage and Exhibits at the Palo Alto Baylands Nature Preserve, Approval of Deed Restrictions in the Baylands, and Approval of a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA – categorically exempt (Regulation 15311). 40.Approval of Contract with Downtown Streets Team, Inc. (C23188369) for a Total Not‐to‐ Exceed Amount of $168,340 for Fiscal Year 2024 for Workforce Development Services: Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section 15061(b)(3). STUDY SESSION (8:40 ‐ 9:55 PM) 41.Tree Protection Ordinance Year One Implementation Update ACTION ITEMS AA1.Colleagues Memo: Approval of a “Friendship City” Program New Item ADJOURNMENT INFORMATION REPORTS 42.Accessory Dwelling Unit (ADU) Quarterly Report (Quarter 1 of Calendar Year 2023) 43.Update on State Law AB 2097 and Local Implementation Informational Report. 44.Update on the Capital Improvement Program and Long Range Facility Planning Update for the Regional Water Quality Control Plant OTHER INFORMATION Standing Committee Meetings this week Rail Committee June 20, 2023 Finance Committee June 20, 2023 – Canceled Public Comment Letters Schedule of Meetings AMENDED AGENDA ITEMS 9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and (2) a Purchase Order with One Workplace in the Amount of $480,229 for the Public Safety Building Capital Project (PE‐ 15001); CEQA: Environmental Impact Report for the Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) Title Updated 16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for Radio Communication Systems for the New Public Safety Building Capital Project (PE‐15001), including $399,007 for Basic Services and $39,900 for Additional Services; CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772) Supplemental Report 23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology Contract Management; CEQA Status – Not a Project Late Packet Report added 24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster Recovery Preparedness; CEQA Status – Not a Project Late Packet Report added 25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide Risk Assessment & FY23‐02 Annual Audit Plan; CEQA Status – Not a Project Late Packet Report added 28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1) Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, Proposed Reserve Transfers, and Increasing Wastewater 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; 3) Amending Utility Rate Schedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent and amending Rate Schedule EDF‐3 to make technical revisions with no rate change; and 4) Amending Utility Rate Schedule D‐1 Increasing the Storm Water Management Fee by 4.9 Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated 29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project Late Packet Report added 30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 Late Packet Report added 31.Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of $1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project and therefore is exempt from California Environmental Quality Act (CEQA)) Title Updated AA1.Colleagues Memo: Approval of a “Friendship City” Program New Item PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to hybrid meetings via email, in person, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. 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 City 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 phone from the Apple App Store or Google Play Store and enter 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 tospeak. 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 limitallotted. Click to Join Zoom Meeting ID: 362‐027‐238 Phone: 1(669)900‐6833 AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329‐2550 (Voice) 48 hours or more in advance. 6 Special Meeting June 19, 2023 Materials submitted to the Board after distribution of the agenda packet are available for public inspection CITY COUNCILSpecial MeetingMonday, June 19, 2023Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. To maximize public safety while still maintainingtransparency and public access, members of the public can choose to participate from home orattend in person. Information on how the public may observe and participate in the meeting islocated at the end of the agenda. Masks are strongly encouraged if attending in person. Them e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o nYouTube 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)900‐6833CALL TO ORDERThis meeting will be called to order in honor of Caribbean American Heritage Month.SPECIAL ORDERS OF THE DAY (5:35 ‐ 5:40 PM)1.Proclamation Honoring Juneteenth 2023AGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (5:40 ‐ 5:55 PM)COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:55 ‐ 6:00 PM)CONSENT CALENDAR (6:00 ‐ 6:15 PM)2.Approval of Minutes from May 22, 2023 and June 5, 2023 Meetings3.Approval of a Purchase Order with The Public Restroom Company in the Amount of$369,749 to Provide and Install a Modular Restroom Building at the CubberleyCommunity Center Fields for the Cubberley Field Restroom Capital Project (CB‐17002);CEQA status – exempt under CEQA Guidelines Section 153034.Approval of Construction Contract Number C23187877 with Casey Construction, Inc. inthe amount of $410,604, Authorization for the City Manager to Negotiate and ExecuteChange Orders up to a Not‐to‐Exceed Amount of $41,060, and approval of a FY 2023Budget Amendment in the Stormwater Management Fund for the Trash Capture DeviceInstallation Project, Capital Improvement Program Project SD‐22002; CEQA status –exempt under CEQA Guideline Section 15303. Q&A5.Utilities Advisory Commission Recommends Adoption of the 2023 Annual Water ShortageAssessment Report6.Grant of Easements to City of Mountain View for the City of Mountain View’s Phase 2San Antonio Area Sewer Main Improvements Project. CEQA Status – Exempt Under CEQAGuidelines Section 15378(b)(5).7.Approval of Construction Contract with OBS Engineering, Inc. (#C23187759) in theAmount of $4,199,222 and Authorization for the City Manager to Negotiate and ExecuteChange Orders up to a Not‐to‐Exceed Amount of $419,922 for the Boulware ParkImprovements project (PE‐17005) and Green Stormwater Infrastructure project (SD‐22001); and Approval of FY 2023 Budget Amendments in the Park Development ImpactFee, Stormwater Management, and Capital Improvement Funds; CEQA status—exemptunder CEQA Guidelines sections 15301 (existing facilities), 15302 (replacement orreconstruction), 15303 (small structures), and 15311 (accessory structures) Q&A8.Approval of the Conceptual Plan for Quiet Zone at Palo Alto Avenue/Alma Street RailCrossing and Direct Staff to Proceed with Design and Construction of the Project. CEQAstatus – categorically exempt (Regulation 15301).9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and(2) a Purchase Order with One Workplace in the Amount of $480,229 for the PublicSafety Building Capital Project (PE‐15001); CEQA: Environmental Impact Report for thePublic Safety Building and New California Avenue Area Parking Garage (Resolution No.9772) Title Updated, Q&A10.Approval of a one‐year General Services contract with Stephen Ciari Plumbing andHeating, Inc. for Backflow Prevention Devices Testing, Repair, and Certification Servicesand Approval of a FY 2023 Budget Amendment in the General Fund; CEQA Status –Categorically Exempt 15301 and 1530211.Approval of Amendment No. 1 with South Bay Regional Public Safety TrainingConsortium (Contract No S23187799) for Fire Academy and Other Training Servicesextended through 12/31/2023 and increasing the total compensation by $114,370 for atotal contract amount not to exceed $199,000. CEQA status: not a project.12.Approval of the Fiscal Year 2024 Investment Policy13.City Council Appointment of the Castilleja Neighborhood Committee in Accordance WithCondition Number 33 Contained in Record of Land Use Action 2022‐22 AuthorizingRedevelopment of Private School at 1310 Bryant Street (Castilleja School).Environmental Assessment: Exempt from CEQA Pursuant to CEQA Guidelines Section15061(b)(3).14.Authorization for the City Manager to Negotiate and Execute a Memorandum ofUnderstanding and Funding Agreement with Peninsula Corridor Joint Powers Board(Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank ofthe San Francisquito Creek15.Adopt an Ordinance Amending Palo Alto Municipal Code (PAMC) Section 9.10.060 (f)and Adoption of a Resolution to Modify the Administrative Penalty Schedule Related toEnforcement of the City’s Gas‐Powered Leaf Blower Ban. Environmental Analysis: NotSubject to CEQA Review in Accordance with CEQA Guidelines 15061(b)(3).16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for RadioCommunication Systems for the New Public Safety Building Capital Project (PE‐15001),including $399,007 for Basic Services and $39,900 for Additional Services; CEQA:Environmental Impact Report for the PSB and New California Avenue Area ParkingGarage (Resolution No. 9772) Supplemental Report added, Q&A17.Authorization to Execute Amendment to Legal Services Contract S22184420 with RankinStock Heaberlin Oneal to Increase Amount by $150,000 for Total Not‐to‐Exceed Amountof $225,000 and to Extend the Term to January 2025; CEQA Status – Not a Project Q&A18.Approval of Contract with VOX Network Solutions (C23187554) to Procure Services toUpgrade the City’s Phone System and a Three‐Year Support Term for a Total AmountNot‐To‐Exceed $504,107; CEQA Status—not a project19.Approval and authorization to execute contract Amendment No. 2 with the OIR Groupfor an additional two‐year period and an additional $105,000 for a new not‐to‐exceedamount of $212,500 for independent police auditing services with a new expiration dateof January 1, 2025.20.Approval of Amendment Number 3 to the Agreement With Palo Alto Unified SchoolDistrict (PAUSD) for PAUSD Athletic Field Brokering and Maintenance Cost‐sharing toExtend the Term to June 30, 2024, with an Optional Extension for an Additional SixMonths; CEQA status – categorically exempt (Regulation 15301).21.Approval of the 2023‐2024 Human Relations Commission Work Plan; CEQA Status – Nota Project22.Approval of Office of City Auditor Remote and Flexible Work Study Report; CEQA Status– Not a Project23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology ContractManagement; CEQA Status – Not a Project Late Packet Report24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster RecoveryPreparedness; CEQA Status – Not a Project Late Packet Report25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide RiskAssessment & FY23‐02 Annual Audit Plan; CEQA Status – Not a Project Late PacketReport26.SECOND READING: Adoption of an Ordinance Amending Section 2.04.010 (RegularMeeting) of Chapter 2.04 (Council Organization and Procedure) of the Palo AltoMunicipal Code to Change the City Council Meeting Start Time from Six p.m. to Five‐Thirty p.m. (FIRST READING: June 5, 2023 PASSED 7‐0)27.SECOND READING: Adoption of an Ordinance Amending Section Palo Alto MunicipalCode Chapter 9.68, Rental Housing Stabilization, to Clarify the Definitions of At‐Faultand No‐Fault Just Cause for Evictions, Extend Just Cause Eviction Protections andTenant Relocation Assistance to More Rental Units in Palo Alto than Offered by StateLaw, and Adopt a Security Deposit Limit for Unfurnished Rental Units in Palo Alto.Environmental Assessment: Exempt under CEQA Guidelines Section 15061(b)(3). (FIRSTREADING: June 5, 2023 PASSED 6‐1)CITY MANAGER COMMENTS (6:15 ‐ 6:30 PM)ACTION ITEMS (Item 28: 6:30 ‐ 7:15 PM, Item 29: 7:15 ‐ 8:30 PM)28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1)Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, ProposedReserve Transfers, and Increasing Wastewater Rates by Amending WastewaterCollection Rate Schedules S‐1, S‐2, S‐6 and S‐7; 2) Approving the Fiscal Year 2024 WaterUtility Financial Plan, Proposed Reserve Transfers, and Increasing Water Rates byAmending Water Rate Schedules W‐1, W‐2, W‐3, W‐4, and W‐7; 3) Amending UtilityRate Schedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent andamending Rate Schedule EDF‐3 to make technical revisions with no rate change; and 4)Amending Utility Rate Schedule D‐1 Increasing the Storm Water Management Fee by 4.9Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not aproject under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under PublicResources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including theOperating and Capital Budgets, Table of Organization, and Municipal Fee Schedule;Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates tothe Salary Schedule for the Management and Professionals Group; CEQA Status – Not aProject Late Packet ReportBREAKCONSENT CALENDAR (8:30 ‐ 8:40 PM)30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 LatePacket Report31.Approval of an Agreement Between Santa Clara Valley Water District and the City ofPalo Alto for Administration and Funding of Water Conservation and Stormwater RebatePrograms and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of$1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project andtherefore is exempt from California Environmental Quality Act (CEQA)) Title Updated32.Approval of a Blanket Purchase Order with Graniterock Company for the purchase ofSand, Rock, and Cutback‐Cold Mix Asphalt Materials for the Public Works and UtilitiesDepartments for a three‐year term ending June 30, 2026; CEQA – Not a Project33.Approval of Contract No. C23187298A with MuniServices, LLC for Tax and FeeConsulting Services in a Total Not‐To‐Exceed Amount of $1,161,550 Over a Five‐YearTerm and Contract No. C23187298B with HdL Coren & Cone for Property Tax ConsultingServices in a Total Not‐To‐Exceed Amount of $111,800 Over a Five‐Year Term; CEQAStatus – Not a Project34.Approval of Professional Services Contract with Kittelson & Associates for a Not‐to‐Exceed Amount of $333,945 for the Bicycle and Pedestrian Transportation Plan Update35.Approve and Authorize the City Manager to Execute a Grant Agreement with the FederalHighway Administration (FHWA) to Develop the Palo Alto Safe Streets for All (SS4A)Action Plan by Receiving $160,000 in Federal Funds and Requiring $40,000 in CityMatching Funds over Two Years and Approve a FY 2024 Budget Amendment in theCapital Improvement Fund; CEQA status – not a project.36.Approval of Contract Number C23187284 with Michael Baker International (MBI) for aNot‐to Exceed Amount of $211,310 to Provide Administration and Consulting Servicesfor the City’s Community Development Block Grant (CDBG) Program for a Term of Two‐years Through June 202537.Approval of Amendment No. 1 to the Lease Agreement between the Palo Alto UnifiedSchool District (PAUSD) (Landlord) and the City of Palo Alto (Tenant) for Extended DayCare Spaces for an Initial 12‐Month Term, Rent Not to Exceed $707,676 per Year; CEQAStatus – Not a Project38.Approval of a Professional Services Agreement (Contract No. C23184669A) withLifeMoves for the provision of Homeless Outreach Services in an Amount Not to Exceedof $460,000 for a term of two years; CEQA status – not a project.39.Acceptance of an Outdoor Environmental Education Facilities Grant from the CaliforniaDepartment of Parks and Recreation in the amount of One Hundred and Sixty‐TwoThousand Dollars ($162,000) for Signage and Exhibits at the Palo Alto Baylands NaturePreserve, Approval of Deed Restrictions in the Baylands, and Approval of a FY 2024Budget Amendment in the Capital Improvement Fund; CEQA – categorically exempt(Regulation 15311).40.Approval of Contract with Downtown Streets Team, Inc. (C23188369) for a Total Not‐to‐Exceed Amount of $168,340 for Fiscal Year 2024 for Workforce Development Services:Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section15061(b)(3).STUDY SESSION (8:40 ‐ 9:55 PM)41.Tree Protection Ordinance Year One Implementation UpdateACTION ITEMSAA1.Colleagues Memo: Approval of a “Friendship City” Program New ItemADJOURNMENTINFORMATION REPORTS 42.Accessory Dwelling Unit (ADU) Quarterly Report (Quarter 1 of Calendar Year 2023) 43.Update on State Law AB 2097 and Local Implementation Informational Report. 44.Update on the Capital Improvement Program and Long Range Facility Planning Update for the Regional Water Quality Control Plant OTHER INFORMATION Standing Committee Meetings this week Rail Committee June 20, 2023 Finance Committee June 20, 2023 – Canceled Public Comment Letters Schedule of Meetings AMENDED AGENDA ITEMS 9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and (2) a Purchase Order with One Workplace in the Amount of $480,229 for the Public Safety Building Capital Project (PE‐ 15001); CEQA: Environmental Impact Report for the Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) Title Updated 16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for Radio Communication Systems for the New Public Safety Building Capital Project (PE‐15001), including $399,007 for Basic Services and $39,900 for Additional Services; CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772) Supplemental Report 23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology Contract Management; CEQA Status – Not a Project Late Packet Report added 24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster Recovery Preparedness; CEQA Status – Not a Project Late Packet Report added 25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide Risk Assessment & FY23‐02 Annual Audit Plan; CEQA Status – Not a Project Late Packet Report added 28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1) Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, Proposed Reserve Transfers, and Increasing Wastewater 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; 3) Amending Utility Rate Schedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent and amending Rate Schedule EDF‐3 to make technical revisions with no rate change; and 4) Amending Utility Rate Schedule D‐1 Increasing the Storm Water Management Fee by 4.9 Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated 29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project Late Packet Report added 30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 Late Packet Report added 31.Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of $1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project and therefore is exempt from California Environmental Quality Act (CEQA)) Title Updated AA1.Colleagues Memo: Approval of a “Friendship City” Program New Item PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to hybrid meetings via email, in person, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. 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 City 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 phone from the Apple App Store or Google Play Store and enter the Meeting ID below You may be asked to enter an email address and name. 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Click to Join Zoom Meeting ID: 362‐027‐238 Phone: 1(669)900‐6833 AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329‐2550 (Voice) 48 hours or more in advance. 7 Special Meeting June 19, 2023 Materials submitted to the Board after distribution of the agenda packet are available for public inspection CITY COUNCILSpecial MeetingMonday, June 19, 2023Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference/video conference or in person. To maximize public safety while still maintainingtransparency and public access, members of the public can choose to participate from home orattend in person. Information on how the public may observe and participate in the meeting islocated at the end of the agenda. Masks are strongly encouraged if attending in person. Them e e t i n g w i l l b e b r o a d c a s t o n C a b l e T V C h a n n e l 2 6 , l i v e o nYouTube 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)900‐6833CALL TO ORDERThis meeting will be called to order in honor of Caribbean American Heritage Month.SPECIAL ORDERS OF THE DAY (5:35 ‐ 5:40 PM)1.Proclamation Honoring Juneteenth 2023AGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (5:40 ‐ 5:55 PM)COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (5:55 ‐ 6:00 PM)CONSENT CALENDAR (6:00 ‐ 6:15 PM)2.Approval of Minutes from May 22, 2023 and June 5, 2023 Meetings3.Approval of a Purchase Order with The Public Restroom Company in the Amount of$369,749 to Provide and Install a Modular Restroom Building at the CubberleyCommunity Center Fields for the Cubberley Field Restroom Capital Project (CB‐17002);CEQA status – exempt under CEQA Guidelines Section 153034.Approval of Construction Contract Number C23187877 with Casey Construction, Inc. inthe amount of $410,604, Authorization for the City Manager to Negotiate and ExecuteChange Orders up to a Not‐to‐Exceed Amount of $41,060, and approval of a FY 2023Budget Amendment in the Stormwater Management Fund for the Trash Capture DeviceInstallation Project, Capital Improvement Program Project SD‐22002; CEQA status –exempt under CEQA Guideline Section 15303. Q&A5.Utilities Advisory Commission Recommends Adoption of the 2023 Annual Water ShortageAssessment Report6.Grant of Easements to City of Mountain View for the City of Mountain View’s Phase 2San Antonio Area Sewer Main Improvements Project. CEQA Status – Exempt Under CEQAGuidelines Section 15378(b)(5).7.Approval of Construction Contract with OBS Engineering, Inc. (#C23187759) in theAmount of $4,199,222 and Authorization for the City Manager to Negotiate and ExecuteChange Orders up to a Not‐to‐Exceed Amount of $419,922 for the Boulware ParkImprovements project (PE‐17005) and Green Stormwater Infrastructure project (SD‐22001); and Approval of FY 2023 Budget Amendments in the Park Development ImpactFee, Stormwater Management, and Capital Improvement Funds; CEQA status—exemptunder CEQA Guidelines sections 15301 (existing facilities), 15302 (replacement orreconstruction), 15303 (small structures), and 15311 (accessory structures) Q&A8.Approval of the Conceptual Plan for Quiet Zone at Palo Alto Avenue/Alma Street RailCrossing and Direct Staff to Proceed with Design and Construction of the Project. CEQAstatus – categorically exempt (Regulation 15301).9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and(2) a Purchase Order with One Workplace in the Amount of $480,229 for the PublicSafety Building Capital Project (PE‐15001); CEQA: Environmental Impact Report for thePublic Safety Building and New California Avenue Area Parking Garage (Resolution No.9772) Title Updated, Q&A10.Approval of a one‐year General Services contract with Stephen Ciari Plumbing andHeating, Inc. for Backflow Prevention Devices Testing, Repair, and Certification Servicesand Approval of a FY 2023 Budget Amendment in the General Fund; CEQA Status –Categorically Exempt 15301 and 1530211.Approval of Amendment No. 1 with South Bay Regional Public Safety TrainingConsortium (Contract No S23187799) for Fire Academy and Other Training Servicesextended through 12/31/2023 and increasing the total compensation by $114,370 for atotal contract amount not to exceed $199,000. CEQA status: not a project.12.Approval of the Fiscal Year 2024 Investment Policy13.City Council Appointment of the Castilleja Neighborhood Committee in Accordance WithCondition Number 33 Contained in Record of Land Use Action 2022‐22 AuthorizingRedevelopment of Private School at 1310 Bryant Street (Castilleja School).Environmental Assessment: Exempt from CEQA Pursuant to CEQA Guidelines Section15061(b)(3).14.Authorization for the City Manager to Negotiate and Execute a Memorandum ofUnderstanding and Funding Agreement with Peninsula Corridor Joint Powers Board(Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank ofthe San Francisquito Creek15.Adopt an Ordinance Amending Palo Alto Municipal Code (PAMC) Section 9.10.060 (f)and Adoption of a Resolution to Modify the Administrative Penalty Schedule Related toEnforcement of the City’s Gas‐Powered Leaf Blower Ban. Environmental Analysis: NotSubject to CEQA Review in Accordance with CEQA Guidelines 15061(b)(3).16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for RadioCommunication Systems for the New Public Safety Building Capital Project (PE‐15001),including $399,007 for Basic Services and $39,900 for Additional Services; CEQA:Environmental Impact Report for the PSB and New California Avenue Area ParkingGarage (Resolution No. 9772) Supplemental Report added, Q&A17.Authorization to Execute Amendment to Legal Services Contract S22184420 with RankinStock Heaberlin Oneal to Increase Amount by $150,000 for Total Not‐to‐Exceed Amountof $225,000 and to Extend the Term to January 2025; CEQA Status – Not a Project Q&A18.Approval of Contract with VOX Network Solutions (C23187554) to Procure Services toUpgrade the City’s Phone System and a Three‐Year Support Term for a Total AmountNot‐To‐Exceed $504,107; CEQA Status—not a project19.Approval and authorization to execute contract Amendment No. 2 with the OIR Groupfor an additional two‐year period and an additional $105,000 for a new not‐to‐exceedamount of $212,500 for independent police auditing services with a new expiration dateof January 1, 2025.20.Approval of Amendment Number 3 to the Agreement With Palo Alto Unified SchoolDistrict (PAUSD) for PAUSD Athletic Field Brokering and Maintenance Cost‐sharing toExtend the Term to June 30, 2024, with an Optional Extension for an Additional SixMonths; CEQA status – categorically exempt (Regulation 15301).21.Approval of the 2023‐2024 Human Relations Commission Work Plan; CEQA Status – Nota Project22.Approval of Office of City Auditor Remote and Flexible Work Study Report; CEQA Status– Not a Project23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology ContractManagement; CEQA Status – Not a Project Late Packet Report24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster RecoveryPreparedness; CEQA Status – Not a Project Late Packet Report25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide RiskAssessment & FY23‐02 Annual Audit Plan; CEQA Status – Not a Project Late PacketReport26.SECOND READING: Adoption of an Ordinance Amending Section 2.04.010 (RegularMeeting) of Chapter 2.04 (Council Organization and Procedure) of the Palo AltoMunicipal Code to Change the City Council Meeting Start Time from Six p.m. to Five‐Thirty p.m. (FIRST READING: June 5, 2023 PASSED 7‐0)27.SECOND READING: Adoption of an Ordinance Amending Section Palo Alto MunicipalCode Chapter 9.68, Rental Housing Stabilization, to Clarify the Definitions of At‐Faultand No‐Fault Just Cause for Evictions, Extend Just Cause Eviction Protections andTenant Relocation Assistance to More Rental Units in Palo Alto than Offered by StateLaw, and Adopt a Security Deposit Limit for Unfurnished Rental Units in Palo Alto.Environmental Assessment: Exempt under CEQA Guidelines Section 15061(b)(3). (FIRSTREADING: June 5, 2023 PASSED 6‐1)CITY MANAGER COMMENTS (6:15 ‐ 6:30 PM)ACTION ITEMS (Item 28: 6:30 ‐ 7:15 PM, Item 29: 7:15 ‐ 8:30 PM)28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1)Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, ProposedReserve Transfers, and Increasing Wastewater Rates by Amending WastewaterCollection Rate Schedules S‐1, S‐2, S‐6 and S‐7; 2) Approving the Fiscal Year 2024 WaterUtility Financial Plan, Proposed Reserve Transfers, and Increasing Water Rates byAmending Water Rate Schedules W‐1, W‐2, W‐3, W‐4, and W‐7; 3) Amending UtilityRate Schedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent andamending Rate Schedule EDF‐3 to make technical revisions with no rate change; and 4)Amending Utility Rate Schedule D‐1 Increasing the Storm Water Management Fee by 4.9Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not aproject under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under PublicResources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including theOperating and Capital Budgets, Table of Organization, and Municipal Fee Schedule;Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates tothe Salary Schedule for the Management and Professionals Group; CEQA Status – Not aProject Late Packet ReportBREAKCONSENT CALENDAR (8:30 ‐ 8:40 PM)30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 LatePacket Report31.Approval of an Agreement Between Santa Clara Valley Water District and the City ofPalo Alto for Administration and Funding of Water Conservation and Stormwater RebatePrograms and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of$1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project andtherefore is exempt from California Environmental Quality Act (CEQA)) Title Updated32.Approval of a Blanket Purchase Order with Graniterock Company for the purchase ofSand, Rock, and Cutback‐Cold Mix Asphalt Materials for the Public Works and UtilitiesDepartments for a three‐year term ending June 30, 2026; CEQA – Not a Project33.Approval of Contract No. C23187298A with MuniServices, LLC for Tax and FeeConsulting Services in a Total Not‐To‐Exceed Amount of $1,161,550 Over a Five‐YearTerm and Contract No. C23187298B with HdL Coren & Cone for Property Tax ConsultingServices in a Total Not‐To‐Exceed Amount of $111,800 Over a Five‐Year Term; CEQAStatus – Not a Project34.Approval of Professional Services Contract with Kittelson & Associates for a Not‐to‐Exceed Amount of $333,945 for the Bicycle and Pedestrian Transportation Plan Update35.Approve and Authorize the City Manager to Execute a Grant Agreement with the FederalHighway Administration (FHWA) to Develop the Palo Alto Safe Streets for All (SS4A)Action Plan by Receiving $160,000 in Federal Funds and Requiring $40,000 in CityMatching Funds over Two Years and Approve a FY 2024 Budget Amendment in theCapital Improvement Fund; CEQA status – not a project.36.Approval of Contract Number C23187284 with Michael Baker International (MBI) for aNot‐to Exceed Amount of $211,310 to Provide Administration and Consulting Servicesfor the City’s Community Development Block Grant (CDBG) Program for a Term of Two‐years Through June 202537.Approval of Amendment No. 1 to the Lease Agreement between the Palo Alto UnifiedSchool District (PAUSD) (Landlord) and the City of Palo Alto (Tenant) for Extended DayCare Spaces for an Initial 12‐Month Term, Rent Not to Exceed $707,676 per Year; CEQAStatus – Not a Project38.Approval of a Professional Services Agreement (Contract No. C23184669A) withLifeMoves for the provision of Homeless Outreach Services in an Amount Not to Exceedof $460,000 for a term of two years; CEQA status – not a project.39.Acceptance of an Outdoor Environmental Education Facilities Grant from the CaliforniaDepartment of Parks and Recreation in the amount of One Hundred and Sixty‐TwoThousand Dollars ($162,000) for Signage and Exhibits at the Palo Alto Baylands NaturePreserve, Approval of Deed Restrictions in the Baylands, and Approval of a FY 2024Budget Amendment in the Capital Improvement Fund; CEQA – categorically exempt(Regulation 15311).40.Approval of Contract with Downtown Streets Team, Inc. (C23188369) for a Total Not‐to‐Exceed Amount of $168,340 for Fiscal Year 2024 for Workforce Development Services:Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section15061(b)(3).STUDY SESSION (8:40 ‐ 9:55 PM)41.Tree Protection Ordinance Year One Implementation UpdateACTION ITEMSAA1.Colleagues Memo: Approval of a “Friendship City” Program New ItemADJOURNMENTINFORMATION REPORTS42.Accessory Dwelling Unit (ADU) Quarterly Report (Quarter 1 of Calendar Year 2023)43.Update on State Law AB 2097 and Local Implementation Informational Report.44.Update on the Capital Improvement Program and Long Range Facility Planning Updatefor the Regional Water Quality Control PlantOTHER INFORMATIONStanding Committee Meetings this week Rail Committee June 20, 2023 Finance Committee June 20, 2023 – CanceledPublic Comment LettersSchedule of MeetingsAMENDED AGENDA ITEMS 9.Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and (2) a PurchaseOrder with One Workplace in the Amount of $480,229 for the Public Safety Building Capital Project (PE‐15001); CEQA: Environmental Impact Report for the Public Safety Building and New California AvenueArea Parking Garage (Resolution No. 9772) Title Updated16.Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for Radio CommunicationSystems for the New Public Safety Building Capital Project (PE‐15001), including $399,007 for BasicServices and $39,900 for Additional Services; CEQA: Environmental Impact Report for the PSB and NewCalifornia Avenue Area Parking Garage (Resolution No. 9772) Supplemental Report 23.Approval of Office of City Auditor Task Order Change ‐ 04.16 ALPR Technology Contract Management;CEQA Status – Not a Project Late Packet Report added24.Approval of Office of City Auditor Task Order Change ‐ 04.19 Disaster Recovery Preparedness; CEQAStatus – Not a Project Late Packet Report added25.Approval of Office of City Auditor Task Order Change ‐ FY23‐01 Citywide Risk Assessment & FY23‐02Annual Audit Plan; CEQA Status – Not a Project Late Packet Report added28.PUBLIC HEARING: Finance Committee Recommends Adoption of Four Resolutions: 1) Approving the FiscalYear 2024 Wastewater Collection Utility Financial Plan, Proposed Reserve Transfers, and IncreasingWastewater Rates by Amending Wastewater Collection Rate Schedules S‐1, S‐2, S‐6 and S‐7; 2) Approvingthe Fiscal Year 2024 Water Utility Financial Plan, Proposed Reserve Transfers, and Increasing WaterRates by Amending Water Rate Schedules W‐1, W‐2, W‐3, W‐4, and W‐7; 3) Amending Utility RateSchedules EDF‐1 and EDF‐2, to Increase Dark Fiber Rates by 4.9 Percent and amending Rate ScheduleEDF‐3 to make technical revisions with no rate change; and 4) Amending Utility Rate Schedule D‐1Increasing the Storm Water Management Fee by 4.9 Percent per Month per Equivalent Residential Unitfor FY 2024; and CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(4) and (5) andexempt under Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) Title Updated 29.PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project Late Packet Report added 30.Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 Late Packet Report added 31.Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure for a Total Not‐To‐Exceed Amount of $1,575,000 Over a Seven‐Year Term Ending June 30, 2030 (This is not a project and therefore is exempt from California Environmental Quality Act (CEQA)) Title Updated AA1.Colleagues Memo: Approval of a “Friendship City” Program New Item PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to hybrid meetings via email, in person, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. 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 City 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 phone from the Apple App Store or Google Play Store and enter 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 tospeak. 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 limitallotted. Click to Join Zoom Meeting ID: 362‐027‐238 Phone: 1(669)900‐6833 AMERICANS WITH DISABILITY ACT (ADA) Persons with disabilities who require auxiliary aids or services in using City facilities, services or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact (650) 329‐2550 (Voice) 48 hours or more in advance. 8 Special Meeting June 19, 2023 Materials submitted to the Board after distribution of the agenda packet are available for public inspection City Council Staff Report Report Type: SPECIAL ORDERS OF THE DAY Lead Department: City Clerk Meeting Date: June 19, 2023 Report #:2306-1658 TITLE Proclamation Honoring Juneteenth 2023 ATTACHMENTS Attachment A: Juneteenth Proclamation 2023 APPROVED BY: Mahealani Ah Yun Item 1 Item 1 Staff Report Item 1: Staff Report Pg. 1 Packet Pg. 9 of 911 __________________________ Lydia Kou Mayor Proclamation JUNETEENTH FREEDOM DAY WHEREAS, June 19th is declared as Juneteenth Freedom Day, a nationally recognized day which celebrates the rich culture, legacy and heritage of Black and African American people; WHEREAS, 2023 marks the 158th year of Juneteenth Freedom Day with Juneteenth being the oldest known celebration commemorating the abolition of slavery in the United States, dating back to June 19, 1865 when Union soldiers led by Major General Gordon Granger arrived in Galveston, Texas with news that the war had ended, freeing the enslaved; and WHEREAS, this was two and a half years after President Abraham Lincoln’s Emancipation Proclamation which became official on January 1, 1863; and WHEREAS, the U.S. Congress—between 1865 and 1870—would pass key amendments to the U.S. Constitution, that upon ratification by each state, would profoundly change the legal status of those once enslaved. The thirteenth amendment abolished bonded servitude, the fourteenth amendment conferred citizenship upon those once enslaved, and, finally, the fifteenth amendment enfranchised men once held in bondage; and WHEREAS, today, Juneteenth Freedom Day celebrates Black and African American people’s freedom and achievement, while encouraging continuous self-development and respect for all cultures, as it takes on a more national, symbolic, and even global perspective; and WHEREAS, annual Juneteenth celebrations are held throughout the Bay Area—in cities such as San Francisco, Oakland, San Jose, and as close as East Palo Alto, where a Juneteenth Food & Music Festival will take place on Saturday, June 17, 2023 at Bell Street Park; and WHEREAS, East Palo Alto is also home to Live in Peace, a non-profit organization centered around empowering at-risk youth and young adults to reclaim the vision for their future, which serves the East Palo Alto and Palo Alto communities; and WHEREAS, as part of their mission, Live in Peace “shows that deep community roots and a family-style approach can support young people facing economic insecurity and unequal access to opportunity;” and WHEREAS, Palo Alto, largely inspired by local non-profits such as Live in Peace, continues the journey of addressing racial inequities and focusing on efforts to increase diversity, inclusion, and belonging as expressed in the City of Palo Alto’s Equity Mission Statement. NOW, THEREFORE, I, Lydia Kou, Mayor of the City of Palo Alto on behalf of the entire City Council, do hereby recognize and celebrate June 19th as Juneteenth Freedom Day, and call upon our community to reaffirm our commitment to eradicating hate, racism, and inequity and continuing the work of equity, justice, and hope. PRESENTED: June 19, 2023 Item 1 Attachment A - Juneteenth Proclamation 2023 Item 1: Staff Report Pg. 2 Packet Pg. 10 of 911 City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: June 19, 2023 Report #:2306-1631 TITLE Approval of Minutes from May 22, 2023 and June 5, 2023 Meetings RECOMMENDATION That the minutes be reviewed and approved. ATTACHMENTS Attachment A: May 22, 2023 Draft Action Minutes Attachment B: June 5, 2023 Draft Action Minutes APPROVED BY: Mahealani Ah Yun Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 1 Packet Pg. 11 of 911 CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 3 Special Meeting May 22, 2023 The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M. Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker Present Remotely: Absent: Special Orders of the Day 1. Proclamation Honoring Thomas Foon Chew 2. Proclamation Honoring Birge Clark NO ACTION Agenda Changes, Additions and Deletions NO ACTION Public Comment Closed Session 3. PUBLIC EMPLOYEE APPOINTMENT Authority: Gov Code section 54957(b) Titles: City Clerk 4. CONFERENCE WITH LABOR NEGOTIATORS Unrepresented Employee: City Clerk City representatives: Sandra Blanch Authority: Government Code Section 54957.6 MOTION: Council Member Lythcott-Haims moved, seconded by Vice Mayor Stone to go into Closed Session. MOTION PASSED: 7-0 Council went into Closed Session at 6:01 P.M. Item 2 Attachment A - May 22 Draft Action Minutes Item 2: Staff Report Pg. 2 Packet Pg. 12 of 911 DRAFT ACTION MINUTES Page 2 of 3 Sp. City Council Meeting Draft Action Minutes: 05/22/2023 Council returned from Closed Session at 7:35 P.M. Mayor Kou announced no reportable action. Council Member Questions, Comments and Announcements Study Session AA1. FY 2024 Proposed Operating and Capital Budget - Finance Committee Update and Council Budget Discussion NO ACTION Consent Calendar Mayor Kou registered a no vote on Agenda Item Number 8. MOTION: Council Member Lauing moved, seconded by Vice Mayor Stone to approve Agenda Item Numbers 5-10. MOTION PASSED ITEMS 5-7, 9-10: 7-0 MOTION PASSED ITEM 8: 6-1, Kou no 5. Approval of Minutes from May 8, 2023 Meeting 6. Approve the Services Agreement between the City of Palo Alto and the Peninsula Corridor Joint Powers Board (Caltrain) for the Connecting Palo Alto Grade Separation Projects and Authorize the City Manager to Execute the Agreement; CEQA status – not a project. 7. Approval of Amendment No. 1 to Contract No. S20178516 with Hohbach-Lewin, Inc. to increase compensation by $10,000 and to extend the Contract Term through March 30, 2026 for On-Call Structural Engineering Services for various Public Art Installations; CEQA Status – Not a Project. 8. SECOND READING: Adopt an Ordinance Continuing the Interim Parklet Program Until March 31, 2024 (FIRST READING: May 8, 2023 PASSED 6-1, Kou no) 9. Amendment to Palo Alto Municipal Code Title 18 Chapter 18.42, Standards for Special Uses, to Codify Firearms Sales Limitations Ordinance; CEQA status—exempt under CEQA Guidelines section 15061(c)(3). Item 2 Attachment A - May 22 Draft Action Minutes Item 2: Staff Report Pg. 3 Packet Pg. 13 of 911 DRAFT ACTION MINUTES Page 3 of 3 Sp. City Council Meeting Draft Action Minutes: 05/22/2023 10. Adoption of a Permanent Ordinance Amending Titles 18 and 21 to Implement State Housing Legislation from the 2021 Legislative Session, Including SB 9. Environmental Analysis: Exempt from Environmental Analysis under CEQA Guidelines Section 15061(b)(3) and Government Code Sections 66411.7(n) and 65852.21(j). The Planning and Transportation Commission (PTC) has recommended Council adopt the ordinance. Closed Session AA2. CONFERENCE WITH CITY ATTORNEY- EXISTING LITIGATION; Subject: Yes In My Backyard, et al. v. City of Palo Alto; Santa Clara County Superior Court Case No. 23-CV-410811 (One Case, as Defendant); Authority: Government Code Section 54956.9(d)(1) MOTION: Council Member Veenker moved, seconded by Council Member Lythcott-Haims to go into Closed Session. MOTION PASSED: 7-0 Council went into Closed Session at 10:15 P.M. Council returned from Closed Session at 11:09 P.M. Mayor Kou announced no reportable action. Adjournment: The meeting was adjourned at 11:10 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 2 Attachment A - May 22 Draft Action Minutes Item 2: Staff Report Pg. 4 Packet Pg. 14 of 911 CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 4 Special Meeting June 5, 2023 The City Council of the City of Palo Alto met on this date in the Council Chambers and by virtual teleconference at 5:30 P.M. Present In Person: Burt, Kou, Lauing, Lythcott-Haims, Stone, Tanaka, Veenker Present Remotely: Absent: Study Session 1. 1237 San Antonio Road: Regional Water Purification Facility. Request for Pre-screening by Santa Clara Valley Water to Amend the Comprehensive Plan Land Use Designation and map for a Portion of the Subject Property From Public Conservation Land (CL) to Major Institution/Special Facility (MISP). Environmental Analysis: This Study Session is Not a Project in Accordance With CEQA. Consent Calendar Council Member Tanaka registered a no vote on Agenda Item Number 4. MOTION: Mayor Kou moved, seconded by Council Member Lauing to approve Agenda Item Numbers 2-12. MOTION PASSED ITEMS 2-3, 5-10, 12: 7-0 MOTION PASSED ITEM 4: 6-1, Tanaka no MOTION PASSED ITEM 11: 6-0-1, Lythcott-Haims recuse 2. Approval of Minutes from May 15, 2023 Meeting 3. Approval of Second Amended and Restated Joint Powers Agreement for the San Francisquito Creek Joint Powers Authority, CEQA: Not a Project 4. Approval of Construction Contract with O’Grady Paving, Inc. (C23187512) for the Churchill Avenue/Alma Street Railroad Crossing Safety Improvements Project, Capital Item 2 Attachment B - June 5 Draft Action Minutes Item 2: Staff Report Pg. 5 Packet Pg. 15 of 911 DRAFT ACTION MINUTES Page 2 of 4 Sp. City Council Meeting Draft Action Minutes: 06/05/2023 Improvement Program Project PL-20000 in the amount of $2,265,340 and Authorization for the City Manager to Execute Change Orders up to $226,534; and CEQA status – exempt under CEQA Guidelines Section 15301(c) 5. Adoption of a Resolution 10110 for Senate Bill 1, the Road Repair and Accountability Act, for Fiscal Year 2024, Providing the Project List for the Street Maintenance Project, Capital Improvement Program Project PE-86070; CEQA Status – Not a Project 6. Approval of Office of City Auditor Task Order Change - 4.08 Public Safety Building- Construction Audit, as recommended by the Policy and Services Committee. 7. Approval of Office of City Auditor Task Order Change - FY23-05 Various Reporting & City Hotline, as recommended by the Policy and Services Committee. 8. Approval of Office of City Auditor Task Order Change - 4.20 Procurement, as recommended by the Policy and Services Committee. 9. Adoption of an Ordinance Amending Section 2.04.010 (Regular Meeting) of Chapter 2.04 (Council Organization and Procedure) of the Palo Alto Municipal Code to Change the City Council Meeting Start Time from Six p.m. to Five- Thirty p.m. 10. Adoption of a Resolution 10111 to Appoint Mahealani Ah Yun as Interim City Clerk Through December 1, 2023 at the annual salary of $121,285 - CEQA exempt 11. SECOND READING: Ordinance 5585 Amending Title 18 (Zoning) of the Palo Alto Municipal Code to Amend Requirements Relating to Accessory Dwelling Units and Junior Accessory Dwelling Units (FIRST READING: May 15, 2023, PASSED 7-0) 12. SECOND READING: Amendment to Palo Alto Municipal Code Title 18 Chapter 18.42, Standards for Special Uses, to Codify Firearms Sales Limitations Ordinance 5586; CEQA status—exempt under CEQA Guidelines section 15061(c)(3) (FIRST READING: May 22, 2023 PASSED 7-0) Action Items 13. PUBLIC HEARING: Adoption of an Ordinance Amending Section Palo Alto Municipal Code Chapter 9.68, Rental Housing Stabilization, to Clarify the Definitions of At-Fault and No- Fault Just Cause for Evictions, Extend Just Cause Eviction Protections and Tenant Relocation Assistance to More Rental Units in Palo Alto than Offered by State Law, and Adopt a Security Deposit Limit for Unfurnished Rental Units in Palo Alto. Environmental Assessment: Exempt under CEQA Guidelines Section 15061(b)(3). MOTION: Vice Mayor Stone moved, seconded by Mayor Kou to adopt the attached Ordinance (Attachment A) amending Palo Alto Municipal Code (PAMC) Chapter 9.68, Rental Housing Item 2 Attachment B - June 5 Draft Action Minutes Item 2: Staff Report Pg. 6 Packet Pg. 16 of 911 DRAFT ACTION MINUTES Page 3 of 4 Sp. City Council Meeting Draft Action Minutes: 06/05/2023 Stabilization, to clarify the definitions of at-fault and no-fault just cause for evictions, extend just cause eviction protections and tenant relocation assistance to more rental units in Palo Alto than offered by state law, and adopt a security deposit limit for unfurnished rental units in Palo Alto: And direct staff to return to Council with an amendment to reduce the required unit occupancy minimum period from 12 months to 6 months in section 9.68.40(b) and (d) on the Consent Calendar in August 2023, and change other time periods consistent with this approach. MOTION PASSED: 6-1, Tanaka no 14. Adoption of a Resolution 10112 Approving an Addendum to the 2017 Comprehensive Plan Environmental Impact Report and Adopting the Sustainability and Climate Action Plan (S/CAP); Approval of the 2023-2025 S/CAP Workplan; and Review of the 2023 Earth Day Report MOTION: Council Member Burt moved, seconded by Council Member Veenker to: 1. Certify the Comprehensive Plan Environmental Impact Report Addendum: Update to the Sustainability and Climate Action Plan 2. Adopt a Resolution Approving an Addendum to the Comprehensive Plan Environmental Impact Report and Adopting the Sustainability and Climate Action Plan (Attachment B and C) 3. Accept the 2023-2025 S/CAP Work Plan (Attachment D) MOTION PASSED: 7-0 Adjournment: The meeting was adjourned at 10:55 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 Item 2 Attachment B - June 5 Draft Action Minutes Item 2: Staff Report Pg. 7 Packet Pg. 17 of 911 DRAFT ACTION MINUTES Page 4 of 4 Sp. City Council Meeting Draft Action Minutes: 06/05/2023 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 2 Attachment B - June 5 Draft Action Minutes Item 2: Staff Report Pg. 8 Packet Pg. 18 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: June 19, 2023 Report #:2304-1330 TITLE Approval of a Purchase Order with The Public Restroom Company in the Amount of $369,749 to Provide and Install a Modular Restroom Building at the Cubberley Community Center Fields for the Cubberley Field Restroom Capital Project (CB-17002); CEQA status – exempt under CEQA Guidelines Section 15303 RECOMMENDATION Approve and authorize the City Manager or their designee to execute Purchase Order No. C23187750 with The Public Restroom Company in an amount not to exceed $369,749, including $336,136 for basic services and $33,613 for additional services, for the purchase of a modular park restroom building for the Cubberley Community Center Fields for the Cubberley Field Restroom project, Capital Improvement Program Project (CB-17002). BACKGROUND The Cubberley Community Center (Cubberley) field is the City’s largest field complex and includes soccer and softball fields, tennis courts, and a running track. There are currently only two portable restrooms available onsite. A permanent restroom is a much-needed facility to accommodate the heavy field usage. The City currently owns eight acres, and the Palo Alto Unified School District (PAUSD) owns 27 acres at Cubberley. The proposed restroom will be located on the property owned by the PAUSD between the sports fields and the running track. The restroom location has been coordinated with the PAUSD. The restroom location was determined based on its proximity to the fields and community input, and it will primarily serve the City’s sports fields users. It is possible that the prefabricated restroom could be moved in the future should discussions of land allocations between the City and PAUSD make an alternative location desirable. The Cubberley Field Restroom project (CB-17002) began in 2018 and was postponed due to staffing constraints. The project originally included a two-stall restroom building. Based on the input received from the community, a four-stall restroom in the proposed location was preferred to accommodate the heavy usage of the fields. A lift station is also needed to pump sanitary sewage from the restroom to the City’s sewer on Nelson Drive. Item 3 Item 3 Staff Report Item 3: Staff Report Pg. 1 Packet Pg. 19 of 911 ANALYSIS The Public Restroom Company provides modular restrooms at public facilities and provided such restrooms for the City in 2017 as part of the Palo Alto Municipal Golf Course Reconfiguration Project. On April 10, 2023, Council approved a Purchase Order with The Public Restroom Company to provide two-stall restroom buildings at Rinconada and Ramos Parks.1 The restroom at Cubberley will consist of four universal stalls and will be approximately 12 feet by 27 feet in size. It will automatically lock at 10pm, be cleaned daily, and have security lighting. The estimated fabrication time for the modular restroom building is approximately 12 months. Staff proposes a piggyback contract procurement process as permitted under Palo Alto Municipal Code section 2.30.360(k), allowing the use of another governmental agency’s contract or substantially the same contract terms and exempting the competitive solicitation requirements to purchase the modular building. Purchase Order No. C231877502 incorporates the City of Los Angeles Contract with the Public Restroom Company. The City’s Procurement Officer has determined that the City of Los Angeles solicitation process is substantially similar to the City’s and that the City has good experience with the quality and aesthetics of the modular restroom provided by The Public Restroom Company at the golf course. This approach would allow staff to purchase the modular restroom building directly from the vendor, rather than have a one-year or longer lead time following completion of the bidding process for both design and construction, and Council approval of a construction contract. The offsite building prefabrication would be cost-effective and would reduce onsite construction time compared to the traditional design/bid/build process. Prior to completion of the building fabrication, staff will complete a bidding process to award a construction contract for site preparation, pump station installation, and utilities work for the building installation. The restroom is anticipated to be installed by summer/fall of 2024. The cost of the prefabricated restroom building is comparable to previous restroom buildings at City facilities with consideration of cost escalation. For example, the cost of prefabricated restroom buildings and installation for Briones Park and the Golf Course were approximately $120,000 in 2012 and $170,000 in 2017, respectively. In general, the cost of prefabricated restroom buildings has escalated at an average 7-8% per year over the last decade with continued material price increases and market conditions. Staff also collected available data of prefabricated restroom buildings provided by the Public Restroom Company to other municipal agencies in the region, and found the costs comparable to the proposed restroom at Cubberley. For example, the cost of a four-stall prefabricated restroom in the City of Fremont’s California Nursery Historical Park was approximately $600,000 in 2022 and the cost of a two-stall prefabricated restroom in the City of East Palo Alto’s Cooley Landing Park was approximately $250,000 in 2018. 1 City Council, April 10, 2023; Agenda Item #8, SR #2212-0529, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82222 2 C23187750 Public Restroom Company Contract https://www.cityofpaloalto.org/files/assets/public/public-works/engineering-services/cip-contracts/c23187750- public-restroom-partially-executed.pdf Item 3 Item 3 Staff Report Item 3: Staff Report Pg. 2 Packet Pg. 20 of 911 Staff recommends approval of Purchase Order No. C23187750 with the Public Restroom Company for the purchase of the modular restroom building which includes cost of building fabrication, installation, all required state inspections and approval, and bonds. The scope of work for the restroom building can be seen in Attachment A. FISCAL/RESOURCE IMPACT The total purchase order with Public Restroom Company is $369,749, which includes $336,136 for basic services and $33,613 for additional services. Funding for the purchase recommended in this memo is primarily available in the Fiscal Year 2023 Adopted Capital Improvement Program Cubberley Field Restroom project (CB-17002). Additional funding for site preparation, installation of a lift station, and utilities for the restroom is included in the Fiscal Year 2024 Proposed Capital budget. Both the Fiscal Year 2023 and Fiscal Year 2024 funding amounts are from the Cubberley Property Infrastructure Fund. Approval of this purchase order is contingent on approval and adoption of the Fiscal Year 2024 Capital budget, which is currently scheduled for June 19, 2023. This work will be constructed by a contractor to be determined through a bid solicitation process. STAKEHOLDER ENGAGEMENT On August 17, 2022, staff held a community meeting to review the proposed restroom location and building style. Due to limited attendance, staff conducted an online survey to obtain community input. The survey results can be viewed on City’s Park Restrooms webpage.3 Staff presented the community survey results, restroom location options, and a 4-stall restroom option to the Parks and Recreation Commission (PRC) on January 24, 2023.4 The PRC and the community supported the 4-stall restroom in the proposed location. In May 2023, a minor Architectural Review Board approval was provided for the restroom. ENVIRONMENTAL REVIEW The installation of a modular restroom building is categorically exempt from California Environmental Quality Act (CEQA) under Section 15303 (New Construction of Small Structures) of the CEQA guidelines. ATTACHMENTS Attachment A: Cubberley Restroom Scope of Work APPROVED BY: Brad Eggleston, Director Public Works/City Engineer 3 Park Restrooms Webpage, www.cityofpaloalto.org/parkrestrooms 4 Parks and Recreation Commission, January 24, 2023; https://www.cityofpaloalto.org/files/assets/public/agendas- minutes-reports/agendas-minutes/parks-and-recreation-commission/agendas-minutes/2023-agendas-and- minutes/1-jan/staff-report-w-attachments-cubberley-field-restroom.pdf Item 3 Item 3 Staff Report Item 3: Staff Report Pg. 3 Packet Pg. 21 of 911 DocuSign Envelope ID: 2E3514FE-F601-4A12-B443-C90422AC35B0 Price Proposal: Date: Cubberley Field Restroom, Palo Alto CA May 8, 2023 Reference:10575-2/19/2023-7 Sourcewell:Contract # 081721-PRM Our Offer to Sell: 1. Restroom Building delivered to site @ $ 305,074 Public Restroom Company (PRC) herein bids to furnish (building only per plans and specifications, delivered to site with all costs except installation including applicable taxes excluding retention. (Retention is not allowed as this is materials or a product fully assembled before shipment to the site and therefore not subject to retention.) 2. Installation: Turnkey Installation of the Building above @ $ 25,388 with retention allowed. Public Restroom Company also includes in this two-part quotation our turnkey installation package for this building. Our national factory authorized installation team will: a. Arrive onsite to confirm and verify the Owner/General Contractor provided scope of work in preparation for installation including access to the site. b. Verify the building pad size, building corners, finished slab elevation, utility depth and location, meter size and distance from building, and compaction compliance. c. Excavate the utility trenches for placement of our prefabricated underground piping tree for the buildings plumbing and electrical, set the kit in place, provide the water test for inspection before backfilling, and then place the site adjacent coarse sand you provide to us alongside the building pad and screed it level for final building placement. We will need onsite water availability for wetting the sand bed before building placement to consolidate the pad. d. Set the building on the site pad. e. Connect the utility piping stub ups to the building piping stub down building points of connection for water, sewer, and electrical conduit to the building internal electrical panel. 3. Owner/General Contractor Final Tie In of Utilities and other site work: a. The Owner/Contractor is responsible for making all final plumbing connections at the 6’ POC locations. b. The Owner/Contractor is responsible for pulling wire and completing all final tie-ins to the electrical panel from the 6’ POC location. c. The Owner/Contractor is responsible for preparing the pad/foundation. PRC will trench through provided pad/foundation to run utilities to 6’ POC locations. 4. Total Cost of Building and Installation @ $ 330,462 5. Payment & Performance Bonds @ $ 5,674 6. Total Cost of Building, Installation & Bonds @ $ 336,136 Cubberley Field Restroom, Palo Alto CA | 05/08/2023| Reference # 10575-2/19/2023-7 2587 Business Parkway | Minden, NV 89423 | www.PublicRestroomCompany.com | p: 888-888-2060 | f: 888-888-1448 1 of 8 Item 3 Attachment A - Cubberley Restroom Scope of Work Item 3: Staff Report Pg. 4 Packet Pg. 22 of 911 DocuSign Envelope ID: 2E3514FE-F601-4A12-B443-C90422AC35B0 OWNER/GENERAL CONTRACTOR SCOPE OF WORK WITH/WITHOUT FOOTINGS: Scope of Work Background: Owner/General Contractor shall survey the site, establish survey for the building pad and prefabricated building slab elevation and front corners, excavate for building footings (if required), locate footing sleeves for electrical, waste, and water, pour the footings (if required), furnish sand base adjacent to subgrade pad, and provide location for utility POC’s nominally 6’ outside the foundation. Preparation of Building Pad: Owner/General Contractor is responsible for providing the building subgrade pad or when required footings to frost depth per Public Restroom Company design specifications. PRC will provide detailed drawings for the subgrade building pad, utilities POC’s, and if required the footings, attached to this scope of work. Subgrade Pad/Foundation Requirements: 1. Owner/General Contractor shall survey the building site and provide a finished slab elevation for the prefabricated building. The building pad size we require is larger than the final actual building footprint. Provide building front corner stakes with 10’ offsets. 2. Excavate the existing site to the depth of the required footings to local code if required. 3. Furnish coarse concrete sand adjacent to subgrade pad so PRC can cut the utility trenches, install underground utilities, and screed sand. Owner/General Contractor verification of site access to allow Building Delivery: 1. You certify to PRC that suitable delivery access to the proposed building site is available. Suitable access is defined as 14’ minimum width, 16’ minimum height, and sufficient turning radius for a crane and 70’ tractor-trailer. 2. Our cost is based upon the crane we provide being able to get within 35’ from the building center and for the delivery truck to be no more than 35’ from the crane center picking point. 3. If the path to the building site traverses curbs, underground utilities, landscaping, sidewalks, or other obstacles that could be damaged, it is the Owner/General Contractor ‘s responsibility for repair and all costs, if damage occurs. 4. If trench plating is required, it shall be the cost responsibility of the Owner/General Contractor. 5. If unseen obstacles are present when site installation begins, it is the Owner/General Contractor responsibility to properly mark them and verbally notify PRC before installation. 6. If weather becomes an issue for safety or site installation delays due to weather, Owner/General Contractor or PRC with General Contractor’s confirmation may call-off set. If building set is stopped, relocation of the building modules to an onsite or offsite location may incur additional costs to Owner/General Contractor. Installation Notice and Site Availability: PRC will provide sufficient notice of delivery of the prefabricated building. The Owner/General Contractor shall make the site available during the delivery period. During the delivery period, on an Cubberley Field Restroom, Palo Alto CA | 05/08/2023| Reference # 10575-2/19/2023-7 2587 Business Parkway | Minden, NV 89423 | www.PublicRestroomCompany.com | p: 888-888-2060 | f: 888-888-1448 2 of 8 Item 3 Attachment A - Cubberley Restroom Scope of Work Item 3: Staff Report Pg. 5 Packet Pg. 23 of 911 DocuSign Envelope ID: 2E3514FE-F601-4A12-B443-C90422AC35B0 improved site, Owner should stop site watering several days before delivery to minimize the impact on the soils for the heavy equipment needed for installation. Caution: If site is not ready for our field crew to perform their installation and if no notice of delay in readiness from Owner/General Contractor is received, PRC will provide a change order for re- mobilization on a daily basis until the site is ready for us. Ready means that the site pad is completed, the corner required survey stakes are in place, the slab elevation stakes are in place, the location of the front of the building is confirmed on site, and access to the site is available from an improved roadway. Owner/General Contractor shall sign the change order before we will continue delivery. Public Restroom Company will “turn-key” set the buildings including the hook up of utilities inside the building (only) when they are available. PRC will use its own factory trained staff for the installation. Utility Connections: 1. PRC to complete all internal building plumbing connections and connections from the electrical panel to building’s fixtures. The Owner/ Contractor is responsible for making the final plumbing connections at the 6’ POC locations. 2. The Owner/Contractor is responsible for pulling the wire and completing the final tie-in to the electrical panel from the 6’ POC location. 3. The Owner/Contractor is responsible for commissioning the building once final utility connections are made. This includes flushing & testing all water service lines before final startup. Special Conditions, Permits, and Inspection Fees: Follow any published specifications governing local building procedures for applicable building permit fees, health department fees, all inspection fees, site concrete testing fees, and compaction tests, if required by Owner. PRC is responsible for all required State inspections and final State insignia certification of the building, if applicable. Jurisdiction for Off-site Work: Jurisdiction, for permitting and inspection of this building shall be either the State agency who manages prefabricated building compliance in the state or the local CBO (when the State does not provide certification.) If the responsibility for building inspection is the local CBO, we will provide a certified plan set, calculations, and a third-party engineer inspection report for any and all closed work the local official cannot see. PUBLIC RESTROOM COMPANY SCOPE OF WORK: Our In Plant/Off-Site Construction Scheduling System: PRC has several off-site manufacturing centers in the United States, strategically located, with the proper equipment and trained staff to fabricate our custom buildings to our high-quality fit and finish standards. PRC manages quality control in our off-site production facility to comply with the approved drawings and provides an inspection certification and photos as required. When proprietary materials, Cubberley Field Restroom, Palo Alto CA | 05/08/2023| Reference # 10575-2/19/2023-7 2587 Business Parkway | Minden, NV 89423 | www.PublicRestroomCompany.com | p: 888-888-2060 | f: 888-888-1448 3 of 8 Item 3 Attachment A - Cubberley Restroom Scope of Work Item 3: Staff Report Pg. 6 Packet Pg. 24 of 911 DocuSign Envelope ID: 2E3514FE-F601-4A12-B443-C90422AC35B0 which we have designed and fabricated, are part of the project, PRC supplies the manufacturing centers with these proprietary PRC components. We then schedule the in-plant construction process to coordinate with your delivery date through our Operations Division field staff. We guaranty on time at cost delivery weather permitting. Special Payment and Progress Billing Terms: Invoicing begins on the 30th of the month following an order and/or the acceptance of the proposal/contract. The first progress billing invoice will be issued for the commencement of design and engineering of architectural plans. This will be 10% of the contracted amount. Once construction begins invoicing will commence monthly based on plant percentage of completion, supported by photographs. In the event of project stoppage, additional fees may be assessed for re-mobilization, storage, crane costs, etc. Our discounted project costs are based upon timely payments. Delays in payment could change delivery schedules and project costs. Delivery and Installation: Site Inspection: PRC staff, upon site arrival, will verify the required dimensions of the building pad and the corner locations/elevation. We will also verify the delivery path from an accessible road or street and install the underground utilities to the point of connection nominally 6’ from the exterior of the building. Installation: PRC will install the building turn-key, except for any exclusion (listed under “Exclusions,” herein.) Installation of Utilities under the Prefabricated Building: We fabricate off-site an underground utilities (water, and DWV piping and fittings) preassembled plumbing and electrical tree. Our site staff will set the underground tree into code depth excavated trenches and our staff will install the coarse concrete sand to bed the piping per our submitted drawing. We provide all the buildings under-slab piping including the driven electrical ground rod. The Owner/General Contractor brings utility services to within 6’ of the pad and are responsible for final connections at that point. Connection of Utilities Post Building Placement: After placement of the building on the pad by PRC, our field staff will tie in the water and sewer connection “inside” the building only and terminate at a point of connection (POC) outside the building clearly marked for each utility service. The Owner/General Contractor is responsible for final utility point of service connections at the nominal 6’ from building locations. Electrical: PRC provides the electrical conduit to the POC 6’ from the building. The Owner/General Contractor pulls the wire and ties it off on the electrical panel. Cubberley Field Restroom, Palo Alto CA | 05/08/2023| Reference # 10575-2/19/2023-7 2587 Business Parkway | Minden, NV 89423 | www.PublicRestroomCompany.com | p: 888-888-2060 | f: 888-888-1448 4 of 8 Item 3 Attachment A - Cubberley Restroom Scope of Work Item 3: Staff Report Pg. 7 Packet Pg. 25 of 911 DocuSign Envelope ID: 2E3514FE-F601-4A12-B443-C90422AC35B0 Plumbing: PRC provides the POC up to 6’ from the building footprint and the Owner/General Contractor connects the water to our stub out location. Sewer: Some sites depending on the local jurisdiction will require an outside house trap which Owner/General Contractor shall install if needed. PRC will provide you with a sewer point of connection including a clean out to which Owner/General Contractor will terminate the site sewer service. Testing of Water, Sewer, and Electrical in Plant and Final Site Utility Connection: Before the building leaves the manufacturing center, PRC certifies a pressure water piping test, DWV, and the electrical connections for compliance with code. While the building is fully tested for leaks at the plant before shipment, road vibration may loosen some plumbing slip fittings and require tightening once the building services (water) is completed. Owner/General Contractor is responsible for minor fitting tightening to handle small slip fitting leaks caused by transportation. Time of Completion: PRC estimates a 240 calendar day schedule to complete our scope of work from receipt of written notice to proceed together with signed approved architectural submittals; Including final construction documents and structural calculations from all authorities required to approve them. Exclusions/Exceptions: 1. Access issues for delivery of the building by a clear unobstructed path of travel from an improved roadway to the final installation pad or foundation may cause site delays and extra cost at each site. This exclusion covers sites whose access is limited by trees, inaccessible roadways, overhead power lines at location where crane will lift building, grade changes disallowing our delivery trailers with only 4” of clearance to grade, berms, or uneven site grades, or when the path of travel is over improvements such as sidewalks, all of which are not within the scope of work by PRC. On some sites without on-site storage availability for buildings that cannot be set, relocation to a proximal crane yard and later relocated to the site for installation, will incur additional fees at rates that vary depending on local rates. PRC will provide written costs for this additional work by change order. 2. If weather on site causes site delivery issues, the delivery may have to be diverted to an off-site location and the additional costs will be a change order to the bid. Our staff works with the Owner/General Contractor in advance to make sure sound decisions for delivery are made to avoid this issue. But sometimes Owner/General Contractor take risks for weather, but this risk is clearly at the Owner/General Contractor risk, not PRC. 3. Sidewalks outside the building footprint. 4. Trench plates or matting needed for protection of site soils, sidewalks, hardscaping, or site utilities shall be the responsibility of the Owner/General Contractor. Any site soils damage or other site improvements if damaged during installation shall be the responsibility of the Owner/General Contractor. Cubberley Field Restroom, Palo Alto CA | 05/08/2023| Reference # 10575-2/19/2023-7 2587 Business Parkway | Minden, NV 89423 | www.PublicRestroomCompany.com | p: 888-888-2060 | f: 888-888-1448 5 of 8 Item 3 Attachment A - Cubberley Restroom Scope of Work Item 3: Staff Report Pg. 8 Packet Pg. 26 of 911 DocuSign Envelope ID: 2E3514FE-F601-4A12-B443-C90422AC35B0 5. Not responsible for removing any soil, sand, or other debris as a result of trenching or installation. 6. Survey, location of building corners, finish floor elevation, excavation, and construction of subgrade building pad and footings (if required) per PRC plans. 7. Soil conditions not suitable for bearing a minimum of 1500 PSF with compaction to 90% maximum dry density shall require Owner/General Contractor correction before building placement. If no soils testing report is available before bid, Owner/General Contractor must verify site supporting soils at a minimum of 1500 PSF because that is the least we can place our structures on or Owner/General Contractor or engineer of record must design a foundation system to meet the imposed loads of site placement. 8. Improper water pressure, an undersized meter, or improper water volume flow to the building may necessitate a change order for installation of a building internal diaphragm tank to provide the minimum flow rate and static pressure of up to 60 PSI and a minimum of 40 PSI to properly flush the fixtures. Building water service chlorination, post installation, shall be by Owner/General Contractor. 9. Our bid included crane costs are based on a maximum 35’ radius from the center pin of the crane (10’ back from the rear of the crane) to the building center point of the furthest building module roof. If additional distance requires a larger crane, additional costs will be assessed by change order to the Owner/General Contractor. 10. Bonds, building permits, a site survey, special inspection fees, minor trash removal (nominally one pickup truck of shipping materials), final utility connections to the on-site water, sewer and electrical are by the Owner/General Contractor. Since the building is fully inspected and tested in plant, minor plumbing leaks (if water is not available when building site work installation is completed) is by the Owner/ General Contractor. 11. Site Traffic Control, if applicable, shall be by Owner/ General Contractor, not PRC. 12. Any equipment installation, site work or special inspections other than described within this proposal, shall be by Owner/General Contractor. 13. Backflow certification if applicable by Owner/ General Contractor. Insurance and Prevailing Wage Certification: PRC shall comply with the required insurance requirements, wage reports, and safety requirements for the project, including OSHA regulations. Special Insurance to protect the Building before acceptance: As PRC requires payment for each month of off-site construction, and since the building is not on owner property where their insurance will cover the building, we maintain a special policy that insures the property even when paid for off-site until the building is finally accepted by the owner. This special policy protects the Owner’s custom ordered materials to be used in the fabrication of the building during this period. PRC provides this Stock Throughput Policy to cover the building materials from supplier to manufacturer, while it is being built off-site, while in transit to the job site, during and after it is installed on-site until final acceptance. This special policy has a $1,000,000 coverage limit. This exceeds the cost of any single building we have offered for sale herein. Cubberley Field Restroom, Palo Alto CA | 05/08/2023| Reference # 10575-2/19/2023-7 2587 Business Parkway | Minden, NV 89423 | www.PublicRestroomCompany.com | p: 888-888-2060 | f: 888-888-1448 6 of 8 Item 3 Attachment A - Cubberley Restroom Scope of Work Item 3: Staff Report Pg. 9 Packet Pg. 27 of 911 DocuSign Envelope ID: 2E3514FE-F601-4A12-B443-C90422AC35B0 Errors and Omissions Insurance: Our firm employs licensed architects, engineers, and drafting staff to provide design of our buildings. Since these buildings are required to meet accessibility standards and building codes on site, and since we are the designer, we carry Errors and Omissions Insurance (E & O) to protect our clients from any errors. The policy covers a limit of up to $2,000,000 per occurrence and is more clearly explained in the insurance certificates we provide after receipt of a purchase order. WARRANTY All work performed by PUBLIC RESTROOM COMPANY (called “Company”) shall be warranted to the Owner to be of good quality, free of faults and defects in material, workmanship, and title for 5 years from last date of installation if building is installed by Company or 1 year if building is installed by Owner or Owner’s agent without on-site supervision by Company. Company warranty on building shell including exterior walls, concrete 8” slab/foundation, and roof system is warranted for 20 years structurally. The Company will repair or replace at their sole option any defects in work upon proper notice to the below stated address below. Our Company extended warranties shall be Company only and shall have no effect on any required Performance, Payment, or Warranty Bonds where Surety shall assume no liability to the Company, the Owner, or any third parties should the Company fail for any reason to deliver acceptable maintenance warranties beyond the one year period. The warranty extension is solely between the owner and PRC and not the general contractor, bonding company, or architect/engineer of record. This warranty applies only if all work performed by Company has been fully paid for, including change orders if applicable. Company has no responsibility for any neglect, abuse, or improper handling of building product. The warranties expressed herein are exclusive, and are in lieu of all other warranties expressed or implied, including those of merchantability and fitness. There are no warranties which extend beyond those described on the face of this Warranty. The foregoing shall constitute the full liability of the Company and be the sole remedy to the Owner. Term of Offer to Sell and Owner/General Contractor Acceptance: This offer is valid for acceptance within 30 days, or when a part of a public bid for the applicable duration imposed within the Owner’s bid documents. Acceptance is by approving our post bid preliminary notice to begin drawings subject to final Owner/General Contractor approval of our submittals and receipt of a contract or a purchase order/contract. Special Notice of Possible Project Cost Increases as a Result of Late Payments: In the event of delayed or late payment, PRC shall have the right to remedies including late charges, overall project total cost increases, and other damages as allowed by applicable law. The contract price quoted herein is a discounted price based upon our receipt of progress payments as invoiced on the agreed billing schedule of PRC. In the event of non-payment, PRC will provide a 5 day written notice to Cubberley Field Restroom, Palo Alto CA | 05/08/2023| Reference # 10575-2/19/2023-7 2587 Business Parkway | Minden, NV 89423 | www.PublicRestroomCompany.com | p: 888-888-2060 | f: 888-888-1448 7 of 8 Item 3 Attachment A - Cubberley Restroom Scope of Work Item 3: Staff Report Pg. 10 Packet Pg. 28 of 911 DocuSign Envelope ID: 2E3514FE-F601-4A12-B443-C90422AC35B0 cure and if payment is still not received, the discounted price for the payment due may increase, to an undetermined amount, to cover work stoppage, remobilization, cancellation of materials and subsequent restocking charges, resale of the contracted building to another party, storage fees, additional crane fees, travel and per diem costs for field crews, and any other cost applicable to the project, as allowed by law. Interest if applicable to non-payment will be assessed at the maximum amount allowed by law or 18% whichever is greater. Termination Upon Termination for any reason, Owner/General Contractor shall be liable for the cost of all work performed up to the date of termination. Additionally, Owner/General Contractor shall pay for off-site demolition and disposal of the partially or fully fabricated building as well as any non-returnable materials which were custom-ordered to complete fabrication in PRC’s factory location. Any returned materials are subject to return and restocking fees at the Owner/General Contractor expense. Venue for Contract Jurisdiction: Public Restroom Company requires all contracts accepted by our firm to hold that the venue for legal jurisdiction for this contract offer and acceptance shall be Douglas County, Nevada. In the event of your default, PRC shall be entitled to the full amount due including reasonable attorney fees, costs, storage, expenses of physical recovery, and statutory interest, as allowed by law. No modifications to this offer shall be authorized unless confirmed in writing by the President of Public Restroom Company. Offered by: Public Restroom Company by _ This provides conditional acceptance of this preliminary purchase order for this building subject to acceptance of the submittals, furnished by Public Restroom Company. Once you accept the preliminary submittals, this shall become a final purchase agreement or at your discretion the final purchase order or a contract may be substituted with this attached. Accepted by: _______________________________ Authorized Signature _______________________________ Date Signed _______________________________ Printed Name _______________________________ Legal Entity Name and Address Cubberley Field Restroom, Palo Alto CA | 05/08/2023| Reference # 10575-2/19/2023-7 2587 Business Parkway | Minden, NV 89423 | www.PublicRestroomCompany.com | p: 888-888-2060 | f: 888-888-1448 8 of 8 Item 3 Attachment A - Cubberley Restroom Scope of Work Item 3: Staff Report Pg. 11 Packet Pg. 29 of 911 DocuSign Envelope ID: 2E3514FE-F601-4A12-B443-C90422AC35B0 PROJECT REF#: 10575-5/8/2023-8 FLOOR PLAN SCALE: NOT TO SCALE RESTROOM BUILDING PALO ALTO, CALIFORNIACUBBERLEY FI ELD RESTROOM ARTIST IMPRESSION: 3D RENDERING ONLY FOR REPRESENTATION. COLORS AND MATERIALS ARE SUBJECT TO CHANGE www.PublicRestroomCompany.comCOPYRIGHT 2023, PUBLIC RESTROOM COMPANY THIS MATERIAL IS THE EXCLUSIVE PROPERTY OF PUBLIC RESTROOM COMPANY AND SHALL NOT BE REPRODUCED, USED OR DISCLOSED TO OTHERS EXCEPT AS AUTHORIZED BY THE WRITTEN PERMISSION OF PUBLIC RESTROOM COMPANY.2587 BUSINESS PARKWAY MINDEN NEVADA 89423 P: 888-888-2060 F: 888-888-1448 Item 3 Attachment A - Cubberley Restroom Scope of Work Item 3: Staff Report Pg. 12 Packet Pg. 30 of 911 DocuSign Envelope ID: 2E3514FE-F601-4A12-B443-C90422AC35B0 PROJECT REF#: 10575-5/8/2023-8 3 - 30'-0" (ROOF OVERALL) 26'-8" (BUILDING OVERALL)1'-8"1'-8" MOP SINK W/ MOP HOLDER UTILITY CHASE SOAP DISPENSER HR ELEC.SOAP DISPENSER PANELDRINKING FOUNTAIN W/ BOTTLE FILLER 2 - HD HD 4 - ACC/ RR ACC/ RR ALL GENDER ALL GENDER ALL GENDERALL GENDER BC BC 27'-2" (SLAB OVERALL) 1 - FLOOR PLAN SCALE: 3/16"=1'0" C O P Y R I G H T 2 0 2 3 , P U B L I C RESTROOM COMPANY THIS MATERIAL IS THE EXCLUSIVE P R O P E R T Y O F P U B L I C RES TRO OM CO MP ANY A ND SHALL NOT BE REPRODUCED, U S E D , O R D I S C L O S E D T O RESTROOM BUILDING REVISION #REVISION 5/8/2023 SHEET#BUILDING TYPE: PROJECT: A-18DATE: DRAWN BY: EOR CUBBERLEY FIELD RESTROOM PALO ALTO, CA PROJECT #:START DATE: MAX. PERSON / HOUR: 12/4/2018 180 SOTHERSEXCEPTAS10575AUTHORIZED BY THE WRITTEN P E R M I S S I O N O F P U B L I C R E S T R O O M C O M P A N Y .DRAWN BY: EOR ~NOT FOR CONSTRUCTION ~ PRELIMINARY DESIGN DRAWING ONLY ~ DO NOT SCALE, DIMENSIONS PRESIDE Item 3 Attachment A - Cubberley Restroom Scope of Work Item 3: Staff Report Pg. 13 Packet Pg. 31 of 911 DocuSign Envelope ID: 2E3514FE-F601-4A12-B443-C90422AC35B0 PROJECT REF#: 10575-5/8/2023-8 T.O. WALL 7'-4" BOARD & BATTS T.O. SLAB 0'-0" ELEVATION 1 SCALE:3/16"=1'-0" 12 1 T.O. WALL 7'-4" BOARD & BATTS T.O. SLAB 0'-0" DRINKING FOUNTAIN W/ BOTTLE FILLER ELEVATION 2 SCALE:3/16"=1'-0" C O P Y R I G H T 2 0 2 3 , P U B L I C RESTROOM BUILDING REVISION #REVISION 5/8/2023 SHEET#BUILDING TYPE: PROJECT: A-2RESTROOM COMPANY THIS MATERIAL IS THE EXCLUSIVE P R O P E R T Y O F P U B L I C RES TRO OM CO MP ANY A ND SHALL NOT BE REPRODUCED, U S E D , O R D I S C L O S E D T O 8 DATE: DRAWN BY:EOR CUBBERLEY FIELD RESTROOM PALO ALTO, CA PROJECT #:START DATE: MAX. PERSON / HOUR: 12/4/2018 180 SOTHERSEXCEPTAS10575AUTHORIZED BY THE WRITTEN P E R M I S S I O N O F P U B L I C R E S T R O O M C O M P A N Y .DRAWN BY: EOR ~NOT FOR CONSTRUCTION ~ PRELIMINARY DESIGN DRAWING ONLY ~ DO NOT SCALE, DIMENSIONS PRESIDE Item 3 Attachment A - Cubberley Restroom Scope of Work Item 3: Staff Report Pg. 14 Packet Pg. 32 of 911 DocuSign Envelope ID: 2E3514FE-F601-4A12-B443-C90422AC35B0 PROJECT REF#: 10575-5/8/2023-8 T.O. WALL 7'-4" BOARD & BATTS T.O. SLAB 0'-0" ELEVATION 3 SCALE:3/16"=1'-0" 12 1 T.O. WALL 7'-4" BOARD & BATTS T.O. SLAB 0'-0" ELEVATION 4 SCALE:3/16"=1'-0" C O P Y R I G H T 2 0 2 3 , P U B L I C RESTROOM BUILDING REVISION #REVISION 5/8/2023 SHEET#BUILDING TYPE: PROJECT: A-3RESTROOM COMPANY THIS MATERIAL IS THE EXCLUSIVE P R O P E R T Y O F P U B L I C RES TRO OM CO MP ANY A ND SHALL NOT BE REPRODUCED, U S E D , O R D I S C L O S E D T O 8 DATE: DRAWN BY:EOR CUBBERLEY FIELD RESTROOM PALO ALTO, CA PROJECT #:START DATE: MAX. PERSON / HOUR: 12/4/2018 180 SOTHERSEXCEPTAS10575AUTHORIZED BY THE WRITTEN P E R M I S S I O N O F P U B L I C R E S T R O O M C O M P A N Y .DRAWN BY: EOR ~NOT FOR CONSTRUCTION ~ PRELIMINARY DESIGN DRAWING ONLY ~ DO NOT SCALE, DIMENSIONS PRESIDE Item 3 Attachment A - Cubberley Restroom Scope of Work Item 3: Staff Report Pg. 15 Packet Pg. 33 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: June 19, 2023 Report #:2304-1328 TITLE Approval of Construction Contract Number C23187877 with Casey Construction, Inc. in the amount of $410,604, Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not-to-Exceed Amount of $41,060, and approval of a FY 2023 Budget Amendment in the Stormwater Management Fund for the Trash Capture Device Installation Project, Capital Improvement Program Project SD-22002; CEQA status – exempt under CEQA Guideline Section 15303. RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or their designee to execute the construction contract Number C23187877 with Casey Construction, Inc. in the Amount of $410,604 for the Trash Capture Device Installation Project, Capital Improvement Program Project SD-22002; 2. Authorize the City Manager or their designee to negotiate and execute related change orders to the contract with Casey Construction Inc. for related additional but unforeseen work that may develop during the project, the total value of which shall not exceed $41,060; and 3. Amend the Fiscal Year 2023 Budget Appropriation for the Stormwater Management Fund (requires 2/3 vote): a. Increase the Trash Capture Device Installation Project (SD-22002) budget appropriation by $161,837. b. Increase the Trash Capture Device Installation Project (SD-22002) revenue from the State of California by $161,836. BACKGROUND The City of Palo Alto is required by the State Water Resources Control Board (State Water Board) to address trash generated in its right of way. The agency’s State Stormwater Permit issued by the State Water Board allows Caltrans to partner with local municipalities by providing funding for regional water quality treatment facilities in significant trash generating areas (as identified in the Caltrans Statewide Trash Implementation Plan). Caltrans receives trash reduction compliance credits for contributions to regional projects. The City is also Item 4 Item 4 Staff Report Item 4: Staff Report Pg. 1 Packet Pg. 34 of 911 required to comply with the Municipal Regional Stormwater NPDES Permit (MRP) in the San Francisco Bay Area (Order R2-2015-0049). The MRP outlines various requirements for protecting the City’s storm drain system and local receiving waters from pollutants commonly found in urban stormwater runoff, including trash and other priority pollutants like PCBs and mercury. The MRP requires the 76 Permittees (including the City) to meet the goal of 100 percent trash load reduction, or no adverse impact to receiving waters from trash, by July 1, 2025. California Department of Transportation’s (Caltrans) National Pollutant Discharge Elimination System (NPDES) permit allows and encourages Caltrans to partner with municipalities by providing funding for stormwater quality treatment facilities that address trash or other pollutants. Palo Alto has been selected to receive such funding, and consequently, both agencies will receive compliance credit to meet permit requirements. Caltrans requires that all projects selected to be funded enter into a Cooperative Implementation Agreement (CIA), and Council approved the CIA for the project on June 14, 2021.1 In the CIA, Caltrans agreed to reimburse the City up to $613,000 for the design and construction of a trash capture device (TCD) to be installed on Embarcadero Road in front of the Baylands Golf Links To implement the agreement with Caltrans, Trash Capture Device project SD-22002 was created to install a debris or trash separating device into the existing storm drain system near the Baylands Golf Course. This device is designed to treat an estimated 190 acres of land in the City of Palo Alto’s right of way and an additional 20 acres in the Caltrans right of way. Since the project treats a portion of Caltrans land, state funding has been granted for the full cost of the project. The device’s design and the analysis of the project have been performed by Schaaf and Wheeler through contract C221848962. This project represents a 5% reduction in trash flows into the San Francisco Bay from the City’s jurisdiction and is a part of the Stormwater Compliance group’s plan to reduce all trash discharges by 100% by the year 2025. Implementation of the device will require digging, trenching and shoring in the grass area adjacent to the Baylands Golf Course, followed by attaching the system to the existing 36-inch storm drain system running through the area. Lastly, the area will be backfilled and the existing surface restored. The device will require yearly maintenance and cleanouts to be performed by the Public Works Operations group. ANALYSIS Project Description 1 City Council, June 14, 2021; Agenda Item #4 Staff Report 12267 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id-12267.pdf 2 City Council, August 15, 2022: Agenda Item #4 Staff Report 14423 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81931 Item 4 Item 4 Staff Report Item 4: Staff Report Pg. 2 Packet Pg. 35 of 911 Staff recommends approval of Contract No. C231878773 to furnish and install the new trash capture device, which will be maintained by the City of Palo Alto. The contract scope of work includes the trenching and shoring of a suitable installation location, furnishing, delivery and installation of a new trash capture device as detailed in the project’s plans and specifications, integration of the device into the existing storm water system, installation of a secondary slide gate system for future maintenance ease, and restoration of the trenched area including relocating or repairing any disturbed or damaged utilities. The nearby pathway will not be within the limits of work and will not need closure or maintenance due to the installation of this device. The proposed location of the device is shown in Attachment A. Bid Process On May 4, 2023, an invitation for bids (IFB) for the Embarcadero Trash Capture Device Project was posted on the City’s Planet Bids eProcurement system. The bidding period was 27 calendar days. The City received 6 bids from qualified contractors as listed on the attached Bid Summary (Attachment C). Bid Name/Number Trash Capture Device IFB # 187877 Proposed Length of Project # of Bid Packages Downloaded by Builder’s Exchanges Number of Bid Packages Downloaded by Contractors Total Days to Respond to Bid Pre-Bid Meeting? Number of Bids Received Bid Price Range Public Link to Solicitation Bids ranged from $410,604 to $798,869 and from 17% below to 61% above the engineer’s estimate of $495,900. Staff has reviewed the bids submitted and recommends the base bid in the amount of $410,604 submitted by Casey Construction, Inc., be accepted, and that Casey Construction, Inc. be declared the lowest responsible bidder. The construction contingency amount of $41,060, which equals 10 percent of the contract value, is requested for related, additional, but unforeseen work which may arise during the project, implemented via City-approved change orders. Staff reviewed information and similar projects performed by the lowest bidder, Casey 3 Contract No. C23187877 Casey Construction, Inc. https://www.cityofpaloalto.org/files/assets/public/public-works/engineering-services/cip-contracts/c23187877- casey-construction-trash-capture-device.pdf Item 4 Item 4 Staff Report Item 4: Staff Report Pg. 3 Packet Pg. 36 of 911 Construction, Inc. and found them to be the lowest responsive and responsible bidder. Staff also checked with the Contractor's State License Board and confirmed the contractor has an active license on file. Caltrans has agreed to pay for all project costs above the original estimate of $613,000 agreed upon in the original CIA. The total project cost for design, construction and staff time is $774,837. The additional funding of $161,837 is included in the attached amended CIA (Attachment C). Following construction, the City will accept responsibility for the operations and maintenance of the device. FISCAL/RESOURCE IMPACT The recommendation in this memorandum to increase the Fiscal Year 2023 budget appropriation for the Trash Capture Device Project (SD-22002) by $161,837 includes funding for the construction contract, administrative project costs, and salary and benefits needed to complete the project. Caltrans has agreed to fund all additional costs in excess of the original funding of $613,000, including the additional construction costs and City staff salary and benefits to manage the project, as detailed in the amended cooperative implementation agreement (CIA) D43CIASCL0001. This project is anticipated to impact operating expenses in the future. Future maintenance for the device will be performed by Public Works Public Services and will cost an estimated $8,500 annually. STAKEHOLDER ENGAGEMENT The project has been coordinated with the Baylands Golf Course to allow for partial use of the parking area for construction work and staging. The construction should not impact the Golf Course’s typical daily operations or use. ENVIRONMENTAL REVIEW This project is exempt from CEQA per CEQA Guidelines §15303 (Class 3 - New Construction or Conversion of Small Structures). The project qualifies for an exemption under Class 3 because the project would involve construction of new small structures on-site. The project would include installation of a DSSB trash capture device and associated accessories within an existing storm drain system. ATTACHMENTS Attachment A: Project Map Attachment B: Bid Summary Attachment C: Amendment No. 1 Cooperative Implementation Agreement APPROVED BY: Brad Eggleston, Director Public Works/City Engineer Item 4 Item 4 Staff Report Item 4: Staff Report Pg. 4 Packet Pg. 37 of 911 ATTACHMENT A: PROJECT MAP Figure 1. TCD Location and Drainage Area Item 4 Attachment A - Project Map Item 4: Staff Report Pg. 5 Packet Pg. 38 of 911 Attachment B: Bid Summary UNIT COST TOTAL COST UNIT COST TOTAL COST UNIT COST TOTAL COST UNIT COST TOTAL COST 1 Base Bid: Provide all labor, equipment, materials, transportation, and applicable taxes, insurance, bonds and other ocerhead to perform the work in accordance with the project plans and technical specifications. 1 LS $ 495,900.00 495,900.00$ $ 410,604.00 410,604.00$ $ 599,000.00 599,000.00$ $ 655,450.00 655,450.00$ 495,900.00$ 410,604.00$ 599,000.00$ 655,450.00$ (85,296.00)$ 103,100.00$ 159,550.00$ -17%21%32% UNIT COST TOTAL COST UNIT COST TOTAL COST UNIT COST TOTAL COST UNIT COST TOTAL COST 1 materials, transportation, and applicable taxes, insurance, bonds and other ocerhead to perform the work in accordance with the 1 LS $ 495,900.00 495,900.00$ $ 675,800.00 675,800.00$ $ 707,000.00 707,000.00$ $ 798,869.00 798,869.00$ 495,900.00$ 675,800.00$ 707,000.00$ 798,869.00$ 179,900.00$ 211,100.00$ 302,969.00$ 36%43%61% Base Bid Total (Item 001 through 001) VALUE OVER/UNDER ENG EST % OVER/UNDER ENG EST GSW Corporation Paulson Cox Construction Inc Golden Bay Construction, Inc.BID ITEM BASE - DESCRIPTION APPROX. QTY UNIT Engineer's Estimate BID ITEM BASE - DESCRIPTION APPROX. QTY UNIT Engineer's Estimate Casey Construction % OVER/UNDER ENG EST Terocons Inc.Brannon Corporation Base Bid Total (Item 001 through 001) VALUE OVER/UNDER ENG EST Item 4 Attachment B - Bid Summary Item 4: Staff Report Pg. 6 Packet Pg. 39 of 911 City of Palo Alto CIA No. D43CIASCL0001 Amendment No. 1 Page 1 of 5 COOPERATIVE IMPLEMENTATION AGREEMENT AMENDMENT No. 1 This AMENDMENT No. 1 entered into on is between the State of California acting by and through its Department of Transportation, referred to as CALTRANS and the City of Palo Alto, referred to as “AGENCY” and together referred to as PARTIES. RECITALS 1. CALTRANS and AGENCY entered into Cooperative Implementation Agreement No. D43CIASCL0001 (AGREEMENT) on June 15, 2021, defining the terms, covenants and conditions to implement the City of Palo Alto Embarcadero Trash Capture Device Project (PROJECT), within the regional area under the jurisdiction of AGENCY to comply with the TMDL referred to herein as PROJECT. 2. Due to a shortage in the level of AGENCY staffing and cost increases to market labor rates and supplies and materials caused the AGENCY to revise its PROJECT budget and schedule. Attachment I of this Amendment No. 1 documents the revisions to the budget and schedule, to which CALTRANS has agreed. AGENCY has agreed to implement PROJECT in accordance with Attachment II of the CIA and Attachment 1 of this Amendment. IT IS MUTUALLY AGREED: 1. The PARTIES hereby replace the PROJECT’S original budget and schedule described in Attachment II of the AGREEMENT with Attachment II of this Amendment. 2. Any reference to ATTACHMENT I in the AGREEMENT is deemed to be a reference to the revised PROJECT’S revised budget and scope. 3. All other terms and conditions of said amended AGREEMENT shall remain in full force and effect. 4. AMENDMENT No. 1 with its attachment(s) is hereby deemed to a part of the AGREEMENT. ATTACHMENT The following attachment is incorporated into and is made a part of this AGREEMENT AMENDMENT No. 1 by this reference and attachment: ATTACHMENT I for Amendment No. 1 to AGREEMENT DocuSign Envelope ID: ED0A2A73-1C0F-476F-B04B-1EED0C3ACDF4 5/30/2023 Item 4 Attachment C - Amendment No. 1 Cooperative Implementation Agreement Item 4: Staff Report Pg. 7 Packet Pg. 40 of 911 2 SIGNATURES Signatories may execute this Amendment No. 1 to the AGREEMENT through individual signature pages provided that each signature is an original. This Amendment No. 1 is not fully executed until all original signatures are attached. PARTIES are empowered by California Streets and Highways Code (SHC) sections 114 and 130 to enter into this AGREEMENT Amendment No. 1 and have delegated to the undersigned the authority to execute this AGREEMENT Amendment No. 1 on behalf of the respective agencies and covenant to have followed all the necessary legal requirements to validly execute this AGREEMENT Amendment No. 1. CITY OF PALO ALTO Signature: Signature: Print Name: Print Name: Title: Title: Date: Date: Signature: Print Name: Title: Date: Signature: Print Name: JEREMY KETCHUM Chief, Division of Environmental Analysis Date: DocuSign Envelope ID: ED0A2A73-1C0F-476F-B04B-1EED0C3ACDF4 5/30/2023 06/05/2023 06/05/2023 Item 4 Attachment C - Amendment No. 1 Cooperative Implementation Agreement Item 4: Staff Report Pg. 8 Packet Pg. 41 of 911 3 ATTACHMENT I BUDGET AND SCHEDULE CHANGES CITY OF PALO ALTO EMBARCADERO TRASH CAPTURE DEVICE PROJECT Introduction The scope of the City of Palo Alto (City) Embarcadero Trash Capture Device Project (Project) has not changed. The following describes changes to the original project schedule and budget presented in Attachment I of CIA D43CIASCL0001 (Agreement). Project Schedule The project site is located in front of the City’s Baylands Golf Links (1875 Embarcadero Road, Palo Alto, CA 94303) at the end of Embarcadero Road east of Highway 101. The project will consist of installing a Contech Debris Separating Baffle Box (DSBB) within the existing City storm drain pipeline located at the golf course along Embarcadero Road. The DSBB device is selected per the requirements of the Santa Clara County Hydrology and Hydraulics manual and meets trash reduction requiremnts of Regional Water Quality Control Board. The storm system drains portions of the City of Palo Alto and Caltrans ROW, specifically Highway 101, and discharges to the San Francisco Bay. To date, the project design has been completed, and the City has entered into a contract with the construction contractor. Attachment II of the CIA stated that Project construction and as-builts would be completed by end of October 2022. Due to delays, the construction period is expected to commence July 5, 2023 and be completed by December 4, 2023. The project schedule in Table 1 provides project timeline, from design through construction (Table 1). DocuSign Envelope ID: ED0A2A73-1C0F-476F-B04B-1EED0C3ACDF4 Item 4 Attachment C - Amendment No. 1 Cooperative Implementation Agreement Item 4: Staff Report Pg. 9 Packet Pg. 42 of 911 4 Table 1. Embarcadero Trash Capture Device Project Amended Schedule DocuSign Envelope ID: ED0A2A73-1C0F-476F-B04B-1EED0C3ACDF4 Item 4 Attachment C - Amendment No. 1 Cooperative Implementation Agreement Item 4: Staff Report Pg. 10 Packet Pg. 43 of 911 5 Project Budget Attachment II of the CIA estimated the Project budget to be $613,000. The City has invoiced for this amount per CIA requirements. Due to increases in market costs to labor, equipment and supplies and also adding City staff costs (which is allowed per the CIA) to the Project budget, the total Project budget has increased to $774,837.35. Because Caltrans has already reimbursed the City for the original CIA agreed-upon budget of $613,000, this Amendment I to the Agreement allows for additional reimbursement to the City of $161,837.35. Tables 2 and 3 provide an overview of the amended budget and a breakdown of the included City staff time. Table 2. Embarcadero Trash Capture Device Project Amended Budget Consultant Support (inspections, encroachment permit, misc. support) construction) Total (Amended) $ 774,837.35 CalTrans Reimbursement (based on original CIA) $ 613,000.00 Addition Reimbursement Requested by City of Palo Alto Table 3. Embarcadero Trash Capture Device Project City Staff Budget Breakdown Staff Title Estimated Hours Hourly Rate Senior Engineer 162 140 $22,603.60 Engineer 360 $102.09 $36,753.92 Stormwater Compliance Manager 25 $117.30 $2,932.51 Associate Engineer (Stormwater Compliance Total $67,037.15 DocuSign Envelope ID: ED0A2A73-1C0F-476F-B04B-1EED0C3ACDF4 Item 4 Attachment C - Amendment No. 1 Cooperative Implementation Agreement Item 4: Staff Report Pg. 11 Packet Pg. 44 of 911 Caltrans_CIA_Palo_Alto_Amendment_WITH DOCUSIGN_052423 Final Audit Report 2023-06-02 Created:2023-06-02 By:Ken Johansson (s134816@dot.ca.gov) Status:Signed Transaction ID: CBJCHBCAABAAa3eqDRhAx09Hpyg3hLLBzmMcBKryA96D "Caltrans_CIA_Palo_Alto_Amendment_WITH DOCUSIGN_0524 23" History Document digitally presigned by DocuSign\, Inc. (enterprisesupport@docusign.com) 2023-05-31 - 11:57:44 PM GMT Document created by Ken Johansson (s134816@dot.ca.gov) 2023-06-02 - 9:52:58 PM GMT Document emailed to Ken Johansson (ken.johansson@dot.ca.gov) for signature 2023-06-02 - 9:53:34 PM GMT Email viewed by Ken Johansson (ken.johansson@dot.ca.gov) 2023-06-02 - 9:54:03 PM GMT Document e-signed by Ken Johansson (ken.johansson@dot.ca.gov) Signature Date: 2023-06-02 - 9:54:14 PM GMT - Time Source: server Agreement completed. 2023-06-02 - 9:54:14 PM GMT Item 4 Attachment C - Amendment No. 1 Cooperative Implementation Agreement Item 4: Staff Report Pg. 12 Packet Pg. 45 of 911 Palo Alto CIA - Amendment 1 Final Audit Report 2023-06-05 Created:2023-06-02 By:Ken Johansson (s134816@dot.ca.gov) Status:Signed Transaction ID: CBJCHBCAABAAf7ZZVrQR-HYHwNbd7pzkbxlHJE5tWCPm "Palo Alto CIA - Amendment 1" History Document digitally presigned by DocuSign\, Inc. (enterprisesupport@docusign.com) 2023-05-31 - 11:57:44 PM GMT Document created by Ken Johansson (s134816@dot.ca.gov) 2023-06-02 - 10:03:07 PM GMT Document emailed to Shaila Chowdhury (shaila.chowdhury@dot.ca.gov) for signature 2023-06-02 - 10:05:42 PM GMT Email viewed by Shaila Chowdhury (shaila.chowdhury@dot.ca.gov) 2023-06-02 - 10:13:29 PM GMT Document e-signed by Shaila Chowdhury (shaila.chowdhury@dot.ca.gov) Signature Date: 2023-06-05 - 6:23:37 PM GMT - Time Source: server Document emailed to Mike Bartlett (mike.bartlett@dot.ca.gov) for signature 2023-06-05 - 6:23:38 PM GMT Email viewed by Mike Bartlett (mike.bartlett@dot.ca.gov) 2023-06-05 - 7:00:28 PM GMT Document e-signed by Mike Bartlett (mike.bartlett@dot.ca.gov) Signature Date: 2023-06-05 - 7:00:42 PM GMT - Time Source: server Agreement completed. 2023-06-05 - 7:00:42 PM GMT Item 4 Attachment C - Amendment No. 1 Cooperative Implementation Agreement Item 4: Staff Report Pg. 13 Packet Pg. 46 of 911 2 0 6 9 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: June 19, 2023 Staff Report:2304-1331 TITLE Utilities Advisory Commission Recommends Adoption of the 2023 Annual Water Shortage Assessment Report RECOMMENDATION The Utilities Advisory Commission (UAC) and staff recommend the City Council adopt the 2023 Annual Water Shortage Assessment Report. EXECUTIVE SUMMARY Beginning in 2022, every urban water supplier in California must conduct an Annual Water Supply and Demand Assessment as required by California Water Code Section 10632 (a). Each urban water supplier must also submit an Annual Water Shortage Assessment Report to the Department of Water Resources (DWR) on or before July 1, as required by California Water Code Section 10632.1. The City’s Annual Water Shortage Assessment Report (Attachment A, Tables 1- 5) shows that there is no water shortage anticipated for Fiscal Year 2024. On April 17, 2023, the San Francisco Public Utilities Commission (SFPUC), Palo Alto’s water supplier, provided Palo Alto with the Water Supply Availability Update indicating for this upcoming water year, to-date precipitation has been above average and snowpack is at record- breaking levels; additionally, SFPUC indicated its 11% regional voluntary reduction request will expire at the same time the State Board’s drought emergency regulation expires on June 10th, 2023 (unless the State Board rescinds the drought emergency regulation earlier). Palo Alto’s water use for the period July 1, 2022 through March 31, 2023 was 13% below the base year of July 1, 2019 through March 31, 2020. The City of Palo Alto encourages continued water conservation efforts and the City’s website contains more information about available water Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 1 Packet Pg. 47 of 911 2 0 6 9 conservation programs1 and latest water conservation and drought updates.2 DISCUSSION To prepare the 2023 Annual Water Shortage Assessment Report, staff followed the procedures outlined in its Water Shortage Contingency Plan, contained in Section 7 of the City’s 2020 Urban Water Management Plan (UWMP). Palo Alto’s 2023 Annual Water Shortage Assessment Report uses the DWR-developed Optional Annual Assessment Tool format. This format includes the 5 tables shown in Attachment A. Staff will submit the standard tables to DWR by July 1, 2023. “Table 1. Annual Assessment Information” (Table 1) provides required overview information. The remaining tables project water supply and demand for FY 2024 under dry conditions, as required, and finds that there is no projected water shortage. After Palo Alto and other urban water suppliers report to DWR on the 2023 Annual Water Shortage Assessment Reports, DWR will prepare a summary report on its review of the Annual Water Supply and Demand Assessment results and provide it to the State Water Resources Control Board (State Board) by September 30. The DWR report will include water shortage information at the supplier level, as well as regional and statewide analysis of water conditions as required by California Water Code Section 10644 (c)(1)(B). Potable Water Palo Alto receives 100% of its potable water supply from the SFPUC Regional Water System and staff used the SFPUC's April 17, 2023 Water Supply Availability Update to determine water supply. Attachment A shows the following potable water tables: •“Table 2: Water Demands” (Table 2) provides a demand projection for each month of FY 2024; •“Table 3: Water Supplies” (Table 3) notes that there is sufficient supply to meet Palo Alto’s demand and projects supply equal to the demand projection since there is no projected water shortage; •“Table 4(P): Potable Water Shortage Assessment” (Table 4(P)) compares projected FY 2024 demand with supply and illustrates that there is no shortage projected for FY 2024; •“Table 5: Planned Water Shortage Response Actions” (Table 5) shows no triggered water shortage actions. On March 24, 2023, Governor Newsom issued Executive Order (N-5-23) which eliminated his directive that agencies implement Stage II of their water shortage contingency plans as well as lessened the drought emergency restrictions presented in his previous Executive Order (N-7-22), while not eliminating all actions completely. On April 11, 2023, the SFPUC approved the 1 Water Conservation Programs https://www.cityofpaloalto.org/Departments/Utilities/Sustainability/Ways-to- Save 2 Water Conservation and Drought Updates https://www.cityofpaloalto.org/Departments/Utilities/Sustainability/Water-Conservation-and-Drought-Updates Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 2 Packet Pg. 48 of 911 2 0 6 9 rescindment of the Water Shortage Emergency that was declared on November 23, 2021. This action removes the voluntary system wide cutback of 11% (Resolution No. 22-0098) effective when the State Board’s order expires on June 10, 2023 (unless the State Board takes an earlier action). The City of Palo Alto’s temporary drought water use restrictions expire at the same time as SFPUC’s voluntary water use restriction and the State Board’s drought emergency regulations.3 Palo Alto’s eight permanent water use regulations will remain in effect (see Palo Alto Municipal Code Section 12.32.010). Staff will continue to monitor drought actions and requirements at the SFPUC and State level and provide updates to the UAC and to the public through the City’s website described above. Non-Potable Water For non-potable recycled water, Attachment A shows non-potable water in Tables 2, 3, and 4(NP). Table 2 provides the demand projection and Table 3 notes that there is sufficient supply to meet Palo Alto’s non-potable recycled water demand. For that reason, the supply is set to equal demand and there is no shortage of non-potable water projected in Table 4(NP), “Non Potable Water Shortage Assessment”. FISCAL/RESOURCE IMPACT Adoption of the 2023 Annual Water Shortage Assessment Report does not have an associated resource impact. STAKEHOLDER ENGAGEMENT Staff encourages interested parties to comment or provide feedback on the draft Annual Water Shortage Assessment Report at the Council meeting where the report will be considered for approval, or to submit written comments prior to those meetings. COMMISSION REVIEW The 2023 Annual Water Shortage Assessment Report was presented to the UAC at its June 7, 2023 meeting. The UAC voted unanimously (6-0), with Commissioner Scharff absent, to recommend Council adopt the 2023 Annual Water Shortage Assessment Report. Commissioner Questions: - There was a question about possible feedback or impacts from the State in response to Palo Alto’s 2023 Annual Water Shortage Assessment Report. Staff explained that the report is a requirement for Palo Alto to qualify for state loans and grants. - There was a question about future droughts and whether water savings were in line with expected savings and whether staff would continue tracking water sales and rebound. Staff explained that water savings were in line with expectations and that Palo Alto’s Water Shortage Contingency Plan provides a guide to water shortage actions for 3 See Resolution 10054, adopted June 20, 2022: https://www.cityofpaloalto.org/files/assets/public/city- clerk/resolutions/resolutions-1909-to-present/2022/reso-10054.pdf Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 3 Packet Pg. 49 of 911 2 0 6 9 each needed water conservation level; staff will continue to track water sales and rebound and will make appropriate recommendations to Council about needed water use restrictions in future droughts. ENVIRONMENTAL REVIEW Adoption of the 2023 Annual Water Shortage Assessment Report is exempt from California Environmental Quality Act’s (CEQA) review pursuant to Water Code Section 10652. ATTACHMENTS: Attachment A: 2023 Annual Water Shortage Assessment Report Tables APPROVED BY: Dean Batchelor, Director of Utilities Staff: Lisa Bilir, Senior Resource Planner Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 4 Packet Pg. 50 of 911 Attachment A: 2023 Annual Water Shortage Assessment Report Tables Item 5 Attachment A - 2023 Annual Water Shortage Assessment Report Tables Item 5: Staff Report Pg. 5 Packet Pg. 51 of 911 Table 1. Annual Assessment Information Annual Assessment Information (Required) Year Covered By This Shortage Report Start: July 1,2023 End: June 30,2024 Supplier's Annual Assessment Planning Cycle Start Month:July End Month:June Data Reporting Interval Used: MONTHLY Volume Unit for Reported Supply and Demand: (Must use the same unit throughout)AF Water Supplier's Contact Information Water Supplier's Name:City of Palo Alto Contact Name:Lisa Bilir Contact Title:Senior Res ource Planner Street Addres s :250 Hamilton Avenue, Palo Alto ZIP Code:94301 Phone Number:(650)329-2543 Email Addres s :lisa.bilir@ci tyofpaloalto.org Report Preparer's Contact Information (if different from above) Preparer's Organization Name: Preparer's Contact Name: Phone Number: Email Addres s : Supplier's Water Shortage Contingency P lan W SCP Title 2020 Water Shortage Contingency Plan of the City of Palo Alto WSCP Adoption Date 6/7/2021 Other Annual Assessment Related Activities (Optional) Activity Timeline/ Outcomes / Links / Notes Annual Ass es sment/ Shortage Report Title:Optional Annual As s ess ment / Shortage Report Approval Date:6/12/2023 Other Annual Ass es sment Related Activities : The 2020 Water Shortage Contingency Plan of the City of Palo Alto s tates that Palo Alto will utilize the BAWSCA Regional Reliability Model to evaluate water supply availability, however, the plan als o permits the City to us e SFPUC data since SFPUC is the City's s ole s upplier. Specifically, the 2020 Water Shortage Contingency Plan s tates : "Becaus e Palo Alto relies on only one potable water s upply s ource, SFPUC RWS water, the Annual Ass es sment will rely on key data inputs from the SFPUC." Palo Alto us ed the SFPUC's April 17th 2023 Water Supply Availability Update to determine water s upply. (Add rows as needed) Item 5 Attachment A - 2023 Annual Water Shortage Assessment Report Tables Item 5: Staff Report Pg. 6 Packet Pg. 52 of 911 = From prior tables = Auto calculated Use Type Start Year:2023 Volumetric Unit Used2:AF Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total by Water Demand Type All Demands 1259 1147 1103 1070 840 715 673 554 674 887 1138 1120 11182 00 00 000 00 1259 1147 1103 1070 840 715 673 554 674 887 1138 1120 11182 All Demands Tertiary 54 53 35 22 11 2 2 11 9 24 42 50 315 0 00 0 54 53 35 22 11 2 2 11 9 24 42 50 315 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total 0 0 0 0 Thre e years ago total demand Four years ago total demand Optional (for comparison purposes) Last ye ar's total demand Two years ago total demand Table 2: Water Demands1 Projected Water Demands - Volume3 Total by Month (Non-Potable) 1Projections are base d on best availabl e data at ti me of submitting the report and actual demand volumes coul d be diffe rent due to many factors. 2Uni ts of measure (AF, CCF, MG) must remai n consistent. 3When opti ng to provide other than monthly volumes (bi-monthly, quarte rly, or annual), please see directions on entering data for Projecte d Water Demand in the Table Instructions. Notes: Potable unconstrained customer demand determi ne d using the end-use model de scri bed in the 2020 UWMP Secti on 4. Non-potabl e unconstrained customer demand determined based on 2020 UWMP projection. Total by Month (Potable) Additional Descripti on (as ne e de d) Level of Treatme nt for Non- Potabl e Supplies Drop-down list Drop-down list May sel ect each use multi pl e ti me s These are the only Use Types that will be recognize d by the WUEdata online submittal tool (Add additional rows as needed) Demands Served by Potable Supplies Demands Served by Non-Potable Supplies Item 5 Attachment A - 2023 Annual Water Shortage Assessment Report Tables Item 5: Staff Report Pg. 7 Packet Pg. 53 of 911 = From prior tabl es = Auto calculated Water Supply Start Year:2023 Volumetric Unit Used2:AF Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total by Water Supply Type Purchased/Imported Water San Francisco Public Utilities Commission Regional Water Supply System 1259 1147 1103 1070 840 715 673 554 674 887 1138 1120 11182 00000 0000 1259 1147 1103 1070 840 715 673 554 674 887 1138 1120 11182 0 Recycl ed Water Recycled Water from the Regional Water Quality Control Plant 54 53 35 22 11 2 2 11 9 24 42 50 315 0000 54 53 35 22 11 2 2 11 9 24 42 50 315 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total 0 Table 3: Water Supplies1 Projected Water Supplies - Volume3 Water Quality Drop-down List Total Right or Safe Yield* (optional) Additional Detail on Water Suppl y Drop-down List May use each category multiple times.These are the only water supply categories that will be recognized by the WUEdata online submittal tool (Add additional rows as needed) Potable Supplies Non-Potable Supplies eAR Reported Total Water Supplies Optional (for comparison purposes) 1Projections are based on be st avail able data at time of submitting the re port and actual supply volumes could be different due to many factors. 2Units of measure (AF, CCF, MG) must remain consi stent. 3When opting to provide other than monthly volumes (bi -monthl y, quarterly, or annual ), please see directions on entering data for Projected Water Supplies in the Tabl e Instructions. Notes: Palo Al to purchases 100% of i ts potable water from SFPUC; Palo Al to used the SFPUC's April 17th 2023 Water Supply Availabil i ty Update to determine water supply. Palo Alto supplies recycled wate r for irrigation of the municipal golf course, a park and some other minor applications. There is sufficient suppl y of both potable and recycled water to mee t demand. Total by Month (Potable) Total by Month (Non-Potable) Item 5 Attachment A - 2023 Annual Water Shortage Assessment Report Tables Item 5: Staff Report Pg. 8 Packet Pg. 54 of 911 = Auto calculated = For manual input Table 4(P): Potable Water Shortage Assessment1 Start Year:2023 Volumetric Unit Used2:AF Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun3 Total Antici pated Unconstrained Demand 1,259 1,147 1,103 1,070 840 715 673 554 674 887 1,138 1,120 11,182 Anti cipated Total Water Supply 1,259 1,147 1,103 1,070 840 715 673 554 674 887 1,138 1,120 11,182 Surplus/Shortage w/o WSCP Acti on 0 0 0 0 0 0 0 0 0 0 0 0 0 % Surplus/Shortage w/o WSCP Acti on 0%0%0%0%0%0%0%0%0%0%0%0%0% State Standard Shortage Level 0 0 0 0 0 0 0 0 0 0 0 0 0 Benefit from WSCP: Supply Augmentati on 0.0 Benefi t from WSCP: Demand Reducti on 0 0 0 0 0 0 0 0 0 0 0 0 0 Revise d Surplus/Shortage wi th WSCP 0 0 0 0 0 0 0 0 0 0 0 0 0 % Revise d Surplus/Shortage wi th WSCP 0%0%0%0%0%0%0%0%0%0%0%0%0% = Auto calculated = For manual input Table 4(NP): Non-Potable Water Shortage Assessment1 Start Year:2023 Volumetric Unit Used2:AF Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun3 Total Anti cipated Unconstrained Demand: Non-Potabl e 54 53 35 22 11 2 2 11 9 24 42 50 315 Anticipated Total Water Supply: Non-Potabl e 54 53 35 22 11 2 2 11 9 24 42 50 315 Surpl us/Shortage w/o WSCP Action: Non-Potabl e 0 0 0 0 0 0 0 0 0 0 0 0 0 % Surpl us/Shortage w/o WSCP Action: Non-Potabl e 0%0%0%0%0%0%0%0%0%0%0%0%0% Benefit from WSCP: Supply Augmentati on 0.0 Benefi t from WSCP: Demand Reducti on 0.0 Revise d Surplus/Shortage wi th WSCP 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 % Revise d Surplus/Shortage wi th WSCP 0%0%0%0%0%0%0%0%0%0%0%0%0% = From prior tables Planned WSCP Actions 1Assessments are based on best availabl e data at time of submitting the re port and actual vol umes could be diffe rent due to many factors. 2Units of measure (AF, CCF, MG) must remai n consistent. 3When optional monthly volumes aren't provided, verify Tables 2 and 3 use the same columns for data entry and are reflected properly i n Table 4 and make sure to use those same columns to enter the benefi ts from Planned WSCP Actions. Please se e directions on the shortage balanci ng e xercise in the Table Instructions. If a shortage i s projecte d, the supplier i s highly recommended to perform a monthly anal ysis to more accurately identi fy the ti me of shortage. = From prior tables Planned WSCP Actions 1Assessments are based on best availabl e data at time of submitting the re port and actual vol umes could be diffe rent due to many factors. 2Units of measure (AF, CCF, MG) must remai n consistent. 3When optional monthly volumes aren't provided, verify Tables 2 and 3 use the same columns for data entry and are reflected properly i n Table 4 and make sure to use those same columns to enter the benefi ts from Planned WSCP Actions. Please se e directions on the shortage balanci ng e xercise in the Table Instructions. If a shortage i s projecte d, the supplier i s highly recommended to perform a monthly anal ysis to more accurately identi fy the ti me of shortage. Item 5 Attachment A - 2023 Annual Water Shortage Assessment Report Tables Item 5: Staff Report Pg. 9 Packet Pg. 55 of 911 July 1,2023 to June 30,2024 Enter Amount (Drop-down List) Select % or Volume Unit Start Month End Month Table 5: Planne d Water Shortage Respons e A ctions NOTES: Palo Alto currently implements permanent water us e res trictions according to the Palo Alto Municipal Code Section 12.32.010 https ://codelibrary.amlegal.com/codes /paloalto/lates t/paloalto_ca/0-0-0-69362#JD_C hapter12.32. There is currently no water s hortage projected for FY 2024 in Table 4(P). Add additional rows as needed How much is acti on g oing to reduce the s hortag e g ap? When is s hortage res pons e action anticipated to be implemented?Is action al ready being implemented? (Y/N) ACTIONS: Demand Reduct io n , Supply Augmentat ion, and Other Actions. (Drop-down List ) Thes e are the only categories that will be accepted by the WUEdata online s ubmittal tool. Select thos e that apply. Anticipated Shortage Level Drop-down Lis t of State Standard Levels (1 - 6) and Level 0 (No Shortage) Item 5 Attachment A - 2023 Annual Water Shortage Assessment Report Tables Item 5: Staff Report Pg. 10 Packet Pg. 56 of 911 1 8 5 5 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Administrative Services Meeting Date: June 19, 2023 Report #:2303-1115 TITLE Grant of Easements to City of Mountain View for the City of Mountain View’s Phase 2 San Antonio Area Sewer Main Improvements Project. CEQA Status – Exempt Under CEQA Guidelines Section 15378(b)(5). RECOMMENDATION Staff recommends that Council: 1. Authorize the City Manager or their designee to execute the attached Grant of Easement and Agreement to City of Mountain View (Attachment A); and 2. Authorize the City Manager or their designee to execute the attached Temporary Construction Easement (Attachment B). EXECUTIVE SUMMARY The San Antonio Area Sewer Main Improvements Project (Project) will address operation and capacity issues for the City of Mountain View’s sanitary sewer collection system in the San Antonio service area and replace a sewer meter, also known as the Alma Recorder. The San Antonio service area is located along the western border of the City of Mountain View. The Mountain View system also collects sewage from a small area of the City of Palo Alto at Silva Avenue and Silva Court. As part of this Project, the City of Mountain View will construct a new sanitary sewer pipeline on San Antonio Avenue that encroaches onto City of Palo Alto owned Assessor Parcel Number 147-09-051 located between San Antonio Avenue and San Antonio Road (Attachment C). To support the project, the City of Palo Alto will execute a Grant of Easement and a Temporary Construction Easement to the City of Mountain View. BACKGROUND The City of Mountain View owns and operates the wastewater collection system within its boundaries. The majority of wastewater generated within the City of Mountain View is collected and conveyed to the Shoreline Pump Station in the City of Mountain View’s Shoreline Regional Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 1 Packet Pg. 57 of 911 1 8 5 5 Park, which is then pumped to a trunk sewer conveying to the Palo Alto Regional Water Quality Control Plant (RWQCP). However, two areas on the western border of the City of Mountain View have topography such that wastewater does not flow to the Shoreline Pump Station. In these areas, wastewater is collected and conveyed to the Los Altos Trunk Sewer for conveyance to the Palo Alto RWQCP. The San Antonio service area as shown below is the larger of the two areas. Wastewater flows are collected from the San Antonio service area and a small service area from the City of Palo Alto before being conveyed through the Alma Recorder to calculate wastewater flows. The sewage then flows to the Los Altos Trunk Sewer at the intersection of Alma Street and San Antonio Avenue in the City of Palo Alto. Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 2 Packet Pg. 58 of 911 1 8 5 5 To plan for the existing and projected future developments in the San Antonio service area, the City of Mountain View completed a study in 2017 to evaluate improvement options for the sewer collection system. The project identified areas of pipeline capacity deficiencies, and existing operation and capacity issues at the Alma Recorder. Based on the study findings, City of Mountain View developed a design plan to replace the existing Alma Recorder and to construct a new pipeline on San Antonio Avenue in order to relocate the existing Los Altos Trunk Sewer Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 3 Packet Pg. 59 of 911 1 8 5 5 connection point to a lower elevation. This new pipeline and connection point will resolve a backwater issue currently experienced at the Alma Recorder that makes the sewer flow readings problematic. This new pipeline will not directly connect to the City of Palo Alto’s sanitary sewer system. Due to existing utility conflicts along San Antonio Avenue, the new pipeline alignment will be located along the south edge of San Antonio Avenue. The alignment will encroach onto a City of Palo Alto’s Assessor Parcel Number 147-09-051 located adjacent to the traffic ramp from Alma Street to San Antonio Road. The City of Palo Alto acquired the 28,089 square foot parcel in 2011 via an exchange agreement as part of the Mayfield Mall redevelopment project (CMR 12681). The parcel is currently a landscaped island between roadways, and the site will be restored after project construction. For the project to complete design and before construction proceeds, the City of Mountain View requested the City of Palo Alto to grant a temporary construction easement and a permanent easement for the new pipeline. 1 01/18/2011 City Council, Approval of an Agreement and Quit Claim Deed https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2011/1268.pdf Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 4 Packet Pg. 60 of 911 1 8 5 5 ANALYSIS For the construction of the San Antonio Area Sewer Main Improvements project to proceed, a permanent sewer easement and a temporary construction easement will need to be granted by the City of Palo Alto to the City of Mountain View. The City will be granting the following easement rights for the Project: •A 20’ wide non-exclusive permanent easement, containing approximately 5,203 square feet, parallel to San Antonio Avenue from the City of Palo Alto owned parcel APN 147-09- 051, for the new sanitary sewer pipeline as a part of the San Antonio Area Sewer Mains Improvements Project. •A 30’ wide temporary construction easement to the east of and parallel to the permanent easement for the pipeline, from the City of Palo Alto owned parcel APN 147-09-051. This temporary easement is approximately 7,129 square feet and will be used for construction and staging for the Project. The term will commence upon notification to proceed and terminate within 200 days and not exceed June 30, 2025. Granting the easement rights to City of Mountain View to support the San Antonio Area Sewer Main Improvements project is consistent with policies and programs in the Comprehensive Plan to promote public safety and infrastructure investments, to develop a safer regional area, and to work in cooperation with neighborhood cities to solve regional issues that impact many residents and communities. Once the City of Palo Alto grants the easements to the City of Mountain View, the City of Mountain View will finalize the construction documents and advertise the project for bidding. The contractor for the project will apply for the City of Palo Alto Street Work Permit and Encroachment Permit and secure both before the start of construction. Construction is scheduled to commence in September 2023 and is anticipated to require approximately four to six months. FISCAL/RESOURCE IMPACT The City of Palo Alto’s Easement Document Preparation and Processing fee of $1,504 each as set forth in the Municipal Fee Schedule will be paid by the City of Mountain View. As noted in CMR 12682, the market value of the land was estimated at $25,000 or $0.89 per square foot, suggesting that the value of the easements would likely be minimal. Assuming that the value of the permanent easement is no more than 50% of the fee simple land value ($0.89 per square foot x 5,203 square feet x 50% = $2,315) and the temporary construction easement is no more than 10% of the fee simple land value, per year ($0.89 per square foot x 7,129 square feet x 10% x 200 days / 365 days = $348), the total value of the easements would be valued at less than 2 01/18/2011 City Council, Approval of an Agreement and Quit Claim Deed https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2011/1268.pdf Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 5 Packet Pg. 61 of 911 1 8 5 5 $2,663. Therefore, the City of Palo Alto plans to issue the two easements with no fee to the City of Mountain View. STAKEHOLDER ENGAGEMENT The City of Mountain View has provided the project design plans for review to the City of Palo Alto Utilities and Public Works Engineering, the City of Los Altos, and the County of Santa Clara. The proposed sewer line crosses underneath Palo Alto’s existing storm drain line, as part of the Street Work Permit the contractor will need to protect the storm drain line and may need to CCTV the line prior to and post construction to verify the line was not damaged by the project. During the project design, City of Mountain View staff contacted utility companies and checked that the proposed sewer line do not have conflicts with the existing utility pipes. Over the past few years, City staff have been meeting and working with the staff of the City of Mountain View to coordinate the project, and to develop and review the plats, legal descriptions, and real estate rights that will be included in the easements to be granted to facilitate the Project. To support regional collaboration and to consider the proposed project will benefit the City of Palo Alto by continuing to provide reliable sanitary sewer collection for the City of Mountain View’s San Antonio service area and a small portion of the City of Palo Alto. The agencies have addressed public inquiries as they have been received. The City of Mountain View plans to provide community notification on the construction work and has offered to work with the City of Palo Alto if other outreach is needed. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because the conveyance of a sewer easement is an administrative activity that will not result in direct or indirect physical changes in the environment. CEQA Guidelines section 15378(b)(5). On January 26, 2021, the City of Mountain View filed a notice of exemption for the project with the Santa Clara County Recorder. The project is the Phase 2 San Antonio Area Sewer Main Improvements, statutorily exempt from CEQA under Public Resources Code section 21080.21; CEQA Guidelines section 15282(k) (pertaining to construction or installation of pipelines that do not exceed one mile in length). ATTACHMENTS Attachment A: Grant of Easement and Agreement Attachment B: Temporary Construction Easement Attachment C: San Antonio Area Sewer Main Improvements Drawings APPROVED BY: Kiely Nose, Assistant City Manager Lead Staff: Sunny Tong, Real Property Manager Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 6 Packet Pg. 62 of 911 Page 1 of 10 Recording requested by and when recorded mail to: City of Palo Alto Real Estate Division PO Box 10250 Palo Alto, CA 94303 With a copy to: City of Mountain View Real Property 500 Castro St P.O Box 7540 Mountain View, CA 94309 No recording fee pursuant to Government Code §6103 GRANT OF EASEMENT AND AGREEMENT THIS GRANT OF EASEMENT AND AGREEMENT, is made as of ______________ by and between CITY OF PALO ALTO, a chartered city and municipal corporation of the state of California, hereinafter referred to as “Grantor”, and CITY OF MOUNTAIN VIEW, a California Charter City and municipal corporation, hereinafter referred to as “Grantee”. RECITALS A. Grantor is the owner of that certain real property commonly known as Assessor Parcel Number 147-09-051, located on San Antonio Road, Palo Alto, CA, as more particularly described in Attachment 1 (entitled “Property Legal Description”), attached hereto and incorporated herein, (the “Property”). B. Grantee desires to acquire an easement to construct and maintain sewer pipelines and appurtenances in, under, and across a portion of the Property to connect from Grantee’s Alma Recorder to the City of Los Altos Trunk Sewer as part of the San Antonio Area Sewer Improvements, Project 19-45. NOW, THEREFORE, for valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties agree as follows: 1. Grantor hereby grants to Grantee a nonexclusive easement (“Easement”) under the Property as described in Exhibit A (entitled “Easement Legal Description”) and depicted on Exhibit B (entitled “Easement Plat to Accompany Legal Description”), attached hereto and incorporated herein, (“Easement Area”) for so long as the Easement Area is used exclusively for the purposes of laying, installing, constructing, reconstructing, removing, replacing, maintaining, repairing, operating, inspecting, and using an underground sewer pipeline together with all necessary appurtenances thereof. Grantor expressly reserves for itself, its successors and its Item 6 Attachment A - Grant of Easement and Agreement Item 6: Staff Report Pg. 7 Packet Pg. 63 of 911 Page 2 of 10 assigns, the right to use the Easement Area or to grant other easements or licenses at the same location so long as such uses do not unreasonably interfere with the rights herein granted. 2. Grantee shall maintain the Easement Area together with any improvements constructed or installed thereon by Grantee or associated with Grantee’s use of the Easement Area. The operation and maintenance of such improvements and of the Easement Area shall be at Grantee’s sole cost and expense. Following completion of the construction of the underground sewer pipeline and appurtenances—and excluding emergency work, inspection, maintenance, and repairs—Grantee will provide a minimum of fifteen (15) days’ notice to Grantor before commencing any minor maintenance or repair of the underground sewer pipeline or appurtenances, and Grantee will provide a minimum of ninety (90) days’ prior written notice to Grantor before commencing any major reconstruction of the underground sewer pipeline or appurtenances. Notwithstanding the foregoing, any failure of Grantee to provide such notice shall not constitute a breach of this Easement Agreement. 3. This Easement is subject to all liens, encumbrances, covenants, conditions, restrictions, reservations, contracts, leases and licenses, easements, and rights of way pertaining to the Property, whether or not of record. The use of the word “grant” shall not imply any warranty on the part of the Grantor with respect to the Easement or the Easement Area. 4. Grantee shall comply with all applicable laws, ordinances and regulations, including but not limited to all applicable regulatory, environmental and safety requirements at Grantee’s sole cost and expense. 5. Grantee shall not use, deposit or permit the use or deposit of any hazardous material or toxic waste or other harmful substances in, on, under or above the Property or any other real property of Grantor adjacent to the Easement Area. 6. Grantor may relocate the Easement if in the opinion of Grantor it unreasonably interferes with the present or future use by Grantor of the Property. The first such relocation shall be at Grantee’s sole cost and expense with any subsequent relocation at Grantor’s expense; provided, however, that Grantor shall provide to Grantee a substitute Easement Area reasonably suited to Grantee’s needs. 7. Grantee shall not materially interfere with the use by and operation and activities of Grantor on its property, and Grantee shall use such routes and follow such procedures on Grantor’s property as result in the least damage and inconvenience to Grantor. 8. Grantee shall be responsible for any damage to Grantor’s property or that of third parties resulting from any exercise of the rights herein granted, including but not limited to soil erosion, subsidence or damage resulting therefrom. Grantee shall promptly repair and restore to its original condition any of Grantor’s property, including, but not limited to, roads, utilities, buildings and fences that may be altered, damaged or destroyed in connection with the exercise of the Easement or use of the Easement Area. 9. This Grant of Easement is made on the express condition that Grantor is to be free from all liability by reason of injury or death to persons or injury to property from whatever cause arising out of Grantee’s, its contractors’, agents’, officers’, members’, employees’, invitees’, or licensees’ exercise of rights granted pursuant to this Easement or use of the Item 6 Attachment A - Grant of Easement and Agreement Item 6: Staff Report Pg. 8 Packet Pg. 64 of 911 Page 3 of 10 Easement Area or of the improvements or personal property of Grantee thereto or thereon, including any liability for injury or death to the person or property of Grantee, its contractors, agents, officers, members, employees, invitees, or licensees or to any property under the control or custody of Grantee. Grantee hereby covenants and agrees to defend and indemnify Grantor, its officers, employees, agents, invitees and guests and save them harmless from any and all liability, loss, costs, or obligations on account of, or arising out of, any such injury or losses caused or claimed to be caused by the exercise of the Easement or use of the Easement Area by Grantee, however occurring, other than those caused solely by the willful or negligent acts or omissions of Grantor. 10. Grantor may terminate this Easement and all of the rights granted herein any time after six (6) months of continuous non-use of the Easement or the Easement Area by Grantee. In the event of such termination, the Easement shall be quitclaimed from Grantee to Grantor, without expense to Grantor, and any and all interest in the Property conveyed in this Easement shall automatically revert to Grantor or its assigns and successors, without the necessity of any further action to effect said reversion. On demand by Grantor, Grantee shall promptly remove any and all improvements it installed in, on, under or above the Easement Area. At the option of Grantor, all such improvements shall become the personal property of Grantor at no cost to Grantor. 11. Grantee alone shall pay any and all taxes, charges or use fee(s) levied by any governmental agency against Grantee’s interest in the Easement Area, or against any of Grantor’s real property as a result of the Easement herein granted. Grantee shall not cause liens of any kind to be placed against the Easement Area or any of Grantor’s real property. 12. This instrument contains the entire agreement between the parties relating to the rights herein granted and the obligations herein assumed. Any oral representations or modifications concerning this instrument shall be of no force or effect except in a subsequent modification in writing, signed by the party to be charged. 13. This instrument shall bind and inure to the benefit of the respective successors and assigns of the parties hereto. 14. If any term, covenant, condition, or provision of this instrument is found invalid, void, or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect. [SIGNATURES ON FOLLOWING PAGE(S)] Item 6 Attachment A - Grant of Easement and Agreement Item 6: Staff Report Pg. 9 Packet Pg. 65 of 911 Page 4 of 10 IN WITNESS WHEREOF, the parties hereto have executed this instrument the date first above written. GRANTOR: CITY OF PALO ALTO, a chartered city and municipal corporation of the State of California By ______________________________________________ Ed Shikada City Manager APPROVED AS TO FORM: By ______________________________________________ Name: ___________________________________________ City Attorney or Designee GRANTEE: CITY OF MOUNTAIN VIEW, a California Charter City and municipal corporation By ______________________________________________ Kimbra McCarthy City Manager APPROVED AS TO CONTENT: By ______________________________________________ Name:__________________________________________ Public Works Director FINANCIAL APPROVAL: By ______________________________________________ Name: ___________________________________________ Finance and Administrative Services Director APPROVED AS TO FORM: By ______________________________________________ Name: ___________________________________________ City Attorney Item 6 Attachment A - Grant of Easement and Agreement Item 6: Staff Report Pg. 10 Packet Pg. 66 of 911 Page 5 of 10 CERTIFICATE OF ACKNOWLEDGEMENT OF NOTARY PUBLIC A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA, ) COUNTY OF _________________) On _______________________ before me, ___________________________ , a notary public in and for said County and State, personally appeared ____________________________________ personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s), acted, executed the instrument. WITNESS my hand and official seal. ____________________________________ Rev. 9/29/99 (Signature of Notary Public) CERTIFICATE OF ACKNOWLEDGEMENT OF NOTARY PUBLIC A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA, ) COUNTY OF _________________) On _______________________ before me, ___________________________ , a notary public in and for said County and State, personally appeared ____________________________________ personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s), acted, executed the instrument. WITNESS my hand and official seal. _________________________________ Rev. 9/29/99 (Signature of Notary Public) Item 6 Attachment A - Grant of Easement and Agreement Item 6: Staff Report Pg. 11 Packet Pg. 67 of 911 Page 6 of 10 ATTACHMENT 1 – PROPERTY LEGAL DESCRIPTION Item 6 Attachment A - Grant of Easement and Agreement Item 6: Staff Report Pg. 12 Packet Pg. 68 of 911 Page 7 of 10 EXHIBIT A – EASEMENT LEGAL DESCRIPTION Item 6 Attachment A - Grant of Easement and Agreement Item 6: Staff Report Pg. 13 Packet Pg. 69 of 911 Page 8 of 10 EXHIBIT B – EASEMENT PLAT TO ACCOMPANY LEGAL DESCRIPTION Item 6 Attachment A - Grant of Easement and Agreement Item 6: Staff Report Pg. 14 Packet Pg. 70 of 911 Page 9 of 10 CERTIFICATE OF ACCEPTANCE THIS IS TO CERTIFY that the interest in portions of the parcel of land (APN: 147-09- 051) conveyed by the Grant of Easement dated the ____ day of ____________ 2021, from the CITY OF PALO ALTO (“GRANTOR”) to the CITY OF MOUNTAIN VIEW (“GRANTEE”), IS HEREBY ACCEPTED by the undersigned officer on behalf of the City of Mountain View pursuant to authority conferred by RESOLUTION NO. 13622 of the Mountain View City Council adopted on May 26, 1982 authorizing the City Manager of the City of Mountain View to accept and consent to deeds, grants, dedications, and other conveyances to the City of Mountain View pursuant to Council Policy A-10, and GRANTEE consents to recordation thereof by GRANTEE’s duly authorized officer, the City Clerk of the City of Mountain View. Dated this the _____ day of__________________ 20___ CITY OF MOUNTAIN VIEW, a California charter city and municipal corporation By: Kimbra McCarthy, City Manager Gov. Code 27281 /// /// Item 6 Attachment A - Grant of Easement and Agreement Item 6: Staff Report Pg. 15 Packet Pg. 71 of 911 Page 10 of 10 GENERAL ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ss. COUNTY OF SANTA CLARA ) On __________________________, before me, _______________________, personally appeared ________________________, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: ________________________________ (Seal) _______________________ City of Mountain View Government Code §40814 Item 6 Attachment A - Grant of Easement and Agreement Item 6: Staff Report Pg. 16 Packet Pg. 72 of 911 ALM/6/PWK 930-02-09-21AG Page 1 of 9 TEMPORARY CONSTRUCTION EASEMENT BETWEEN THE CITY OF MOUNTAIN VIEW AND THE CITY OF PALO ALTO TO ENTER ONTO A PORTION OF PROPERTY OF APN: 147-09-051, PALO ALTO, CALIFORNIA This Temporary Construction Easement (“Easement”) is dated for identification this ___ day of _______________ 2023 (the “Effective Date”), and is made by and between the CITY OF MOUNTAIN VIEW, a California charter city and municipal corporation, whose address is 500 Castro Street, P.O. Box 7540, Mountain View, California, 94039-7540 (hereinafter “CITY”), and the CITY OF PALO ALTO, a California chartered municipal corporation, whose address is 250 Hamilton Avenue Palo Alto, California, 94301 (hereinafter “OWNER”), (CITY and OWNER hereinafter collectively “Parties” or individually “Party”). RECITALS A.WHEREAS, in association with CITY’s San Antonio Area Sewer Improvements, Project 19-45, CITY desires to construct sewer pipelines and appurtenances connected from CITY’s Alma Recorder to the City of Los Altos Trunk Sewer (“Improvements”) in, under, and across a portion of OWNER’s real property commonly known as Assessor Parcel Number (APN) 147-09-051, located on San Antonio Road, Palo Alto, CA, as more particularly described in Attachment 1 (entitled “Property Legal Description”), attached hereto and incorporated herein (“the Property”); and B.WHEREAS, CITY desires access to a portion of OWNER’s Property to conduct construction and construction activities associated with the Improvements; and C.WHEREAS, CITY anticipates that construction will require approximately four (4) to six (6) months and is scheduled to commence in September 2023. AGREEMENT NOW THEREFORE, in consideration of the recitals and mutual promises contained herein, CITY and OWNER agree to the Temporary Construction Easement as set forth herein in accordance with the following terms and conditions: 1.Grant of Temporary Construction Easement. OWNER hereby grants a nonexclusive Temporary Construction Easement over, on, and across an approximately seven thousand one hundred twenty-nine (7,129) square foot area (the “Easement Area”), described and shown on Exhibit A (entitled “Easement Legal Description”) and Exhibit B (entitled “Easement Plat to Accompany Legal Description”), attached hereto and made a part hereof, and grants permission to CITY and CITY’s officers, employees, contractors, Attachment B - Temporary Construction Easement Item 6 Attachment B - Temporary Construction Easement Item 6: Staff Report Pg. 17 Packet Pg. 73 of 911 ALM/6/PWK 930-02-09-21AG Page 2 of 9 subcontractors, and agents to enter upon the Easement Area for the sole purpose of constructing the Improvements and conducting construction activities associated with construction of the Improvements. OWNER expressly reserves for itself, its successors and its assigns, the right to use the Easement Area or to grant other easements or licenses at the same location so long as such uses do not unreasonably interfere with the rights herein granted. 2. Responsibility for Damage; Repair. CITY shall be responsible for any damage to OWNER’S property or that of third parties resulting from any exercise of the rights herein granted, including but not limited to soil erosion, subsidence or damage resulting therefrom. CITY shall promptly repair and restore to its original condition any of OWNER’S property, including but not limited to, roads, utilities, and irrigation systems that may be altered, damaged, or destroyed in connection with this Easement. 3. Scope of Work. The work to be performed is detailed in the construction plans, entitled “San Antonio Area Sewer Improvements, Project 19-45,” dated January 15, 2021, and incorporated herein by reference, which have been provided to OWNER. CITY shall not cause liens of any kind to be placed against OWNER’s Property. 4. Access, Utilities, and Conformance. CITY shall not interfere with the use by and operation and activities of OWNER and CITY shall use such routes and follow such procedures as result in the least damage and inconvenience to OWNER. CITY will maintain a safe egress and entry route for OWNER, their guests, tenants, and invitees throughout the term of this Easement. CITY will verify locations of all underground utilities and protect any such utilities from damage or destruction prior to beginning work. CITY will conform all Improvements to OWNER’s Property at the completion of construction. City shall not use, deposit, or permit the use or deposit of any hazardous material or toxic waste or other harmful substances on, in, over or under the Property or any other real property of OWNER adjacent to the Easement Area. 5. Term. The term of this Easement herein shall commence upon written notification by CITY to OWNER of CITY’s Notice to Proceed to CITY’s contractor for the Improvements and will terminate two hundred (200) working days from said Notice and will not exceed June 30, 2025. 6. Extension. The Parties agree that as long as normal use and access to the Property is provided by CITY for the convenience of OWNER and OWNER’s guests, tenants, and invitees, the term of this Easement may be extended in the event that the construction project is not yet complete for an additional one (1) month period upon CITY giving written notice to OWNER thirty (30) days before the expiration of the term of this Easement. Item 6 Attachment B - Temporary Construction Easement Item 6: Staff Report Pg. 18 Packet Pg. 74 of 911 ALM/6/PWK 930-02-09-21AG Page 3 of 9 7. Indemnification. This grant of Easement is made on the express condition that OWNER is to be free from all liability by reason of injury or death to persons or injury to property from whatever cause arising out of CITY’s, its contractors’, agents’, officers’, members’, employees’, invitees’, or licensees’ exercise of rights granted pursuant to this Easement or use of the Easement Area or of the improvements or personal property of CITY thereto or thereon, including any liability for injury or death to the person or property of CITY, its contractors, agents, officers, members, employees, invitees, or licensees or to any property under the control or custody of CITY. CITY hereby covenants and agrees to defend and indemnify OWNER, its officers, employees, agents, invitees and guests and save them harmless from any and all liability, loss, costs, or obligations on account of, or arising out of, any such injury or losses caused or claimed to be caused by the exercise of the Easement or use of the Easement Area by CITY, however occurring, other than those caused solely by the willful or negligent acts or omissions of OWNER. 8. Notices. Any notice given under this Easement shall be in writing and shall be given by delivering the same to such Party in person, by delivering the same to such Party by reputable overnight courier or express service, or by sending the same to such Party by registered or certified mail, return receipt requested, with postage prepaid. The address(es) of each Party for the giving of notices hereunder are, until changed as hereinafter provided, the following: To CITY: Public Works Director City of Mountain View 500 Castro Street P.O. Box 7540 Mountain View, CA 94039-7540 To OWNER: City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Attention: Real Property Manager With a copy to: real.property@cityofpaloalto.org Any notice will be deemed given on the date of delivery, on the date of refusal to accept delivery, or when delivery is first attempted but cannot be made due to a change of address for which no notice was given. A Party may change its notice address(es) at any time by giving written notice of such change to the other Party in the manner provided herein. Notice given by counsel shall be deemed given by the Party represented by such counsel. 9. Compliance with Law. CITY shall comply with all applicable laws, ordinances and regulations of the Federal, State, and local government, including but not limited to Item 6 Attachment B - Temporary Construction Easement Item 6: Staff Report Pg. 19 Packet Pg. 75 of 911 ALM/6/PWK 930-02-09-21AG Page 4 of 9 all applicable regulatory, environmental and safety requirements, at CITY’S sole cost and expense. CITY specifically agrees to comply with any applicable laws, regulations, and/or guidelines relating to COVID-19, including, but not limited to, Centers for Disease Control and Prevention (CDC) guidelines and Santa Clara County Department of Public Health orders and/or guidelines. 10. Subject to Liens, Etc.; No Warranty. This Easement is subject to all liens, encumbrances, covenants, conditions, restrictions, reservations, contracts, leases and licenses, easements, and rights of way pertaining to the Property, whether or not of record. The use of the word “grant” shall not imply any warranty on the part of the OWNER with respect to the Easement or the Easement Area. 11. Taxes, Charges, Fees. CITY alone shall pay any and all taxes, charges or use fee(s) levied by any governmental agency against CITY’s interest in the Easement Area, or against any of OWNER’s real property as a result of the Easement herein granted. CITY shall not cause liens of any kind to be placed against the Easement Area or any of OWNER’s real property. 12. Partial Invalidity. If any term, covenant, condition, or provision of this Easement is found invalid, void, or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect. /// /// /// /// /// /// /// Item 6 Attachment B - Temporary Construction Easement Item 6: Staff Report Pg. 20 Packet Pg. 76 of 911 ALM/6/PWK 930-02-09-21AG Page 5 of 9 IN WITNESS WHEREOF, this Temporary Construction Easement between the City of Mountain View (“CITY”) and the City of Palo Alto (“OWNER”), is executed by CITY and by OWNER. CITY OF MOUNTAIN VIEW, a California charter city and municipal corporation By: City Manager APPROVED AS TO CONTENT: Public Works Director FINANCIAL APPROVAL: Finance and Administrative Services Director APPROVED AS TO FORM: City Attorney CITY OF PALO ALTO, a California chartered municipal corporation By: Ed Shikada, City Manager APPROVED AS TO FORM: City Attorney or designee Attachments: Attachment 1 – Property Legal Description Exhibit A – Easement Legal Description Exhibit B – Easement Plat to Accompany Legal Description Item 6 Attachment B - Temporary Construction Easement Item 6: Staff Report Pg. 21 Packet Pg. 77 of 911 ALM/6/PWK 930-02-09-21AG Page 6 of 9 CERTIFICATE OF ACKNOWLEDGEMENT OF NOTARY PUBLIC A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA, ) COUNTY OF _________________) On _______________________ before me, ___________________________ , a notary public in and for said County and State, personally appeared ____________________________________ personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s), acted, executed the instrument. WITNESS my hand and official seal. ____________________________________ Rev. 9/29/99 (Signature of Notary Public) CERTIFICATE OF ACKNOWLEDGEMENT OF NOTARY PUBLIC A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA, ) COUNTY OF _________________) On _______________________ before me, ___________________________ , a notary public in and for said County and State, personally appeared ____________________________________ personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s), acted, executed the instrument. WITNESS my hand and official seal. _________________________________ Rev. 9/29/99 (Signature of Notary Public) Item 6 Attachment B - Temporary Construction Easement Item 6: Staff Report Pg. 22 Packet Pg. 78 of 911 ALM/6/PWK 930-02-09-21AG Page 7 of 9 ATTACHMENT 1 – PROPERTY LEGAL DESCRIPTION Item 6 Attachment B - Temporary Construction Easement Item 6: Staff Report Pg. 23 Packet Pg. 79 of 911 ALM/6/PWK 930-02-09-21AG Page 8 of 9 EXHIBIT A – EASEMENT LEGAL DESCRIPTION Item 6 Attachment B - Temporary Construction Easement Item 6: Staff Report Pg. 24 Packet Pg. 80 of 911 ALM/6/PWK 930-02-09-21AG Page 9 of 9 EXHIBIT B – EASEMENT PLAT TO ACCOMPANY LEGAL DESCRIPTION Item 6 Attachment B - Temporary Construction Easement Item 6: Staff Report Pg. 25 Packet Pg. 81 of 911 ALM/6/PWK 930-02-09-21AG Page 10 of 9 CERTIFICATE OF ACCEPTANCE THIS IS TO CERTIFY that the interest in portions of the parcel of land (APN: 147-09-051) conveyed by the Grant of Easement dated the ____ day of ____________ 2023, from the CITY OF PALO ALTO (“GRANTOR”) to the CITY OF MOUNTAIN VIEW (“GRANTEE”), IS HEREBY ACCEPTED by the undersigned officer on behalf of the City of Mountain View pursuant to authority conferred by RESOLUTION NO. 13622 of the Mountain View City Council adopted on May 26, 1982 authorizing the City Manager of the City of Mountain View to accept and consent to deeds, grants, dedications, and other conveyances to the City of Mountain View pursuant to Council Policy A-10, and GRANTEE consents to recordation thereof by GRANTEE’s duly authorized officer, the City Clerk of the City of Mountain View. Dated this the _____ day of__________________ 20___ CITY OF MOUNTAIN VIEW, a California charter city and municipal corporation By: Kimbra McCarthy, City Manager Gov. Code 27281 /// /// Item 6 Attachment B - Temporary Construction Easement Item 6: Staff Report Pg. 26 Packet Pg. 82 of 911 ALM/6/PWK 930-02-09-21AG Page 11 of 9 GENERAL ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ss. COUNTY OF SANTA CLARA ) On __________________________, before me, _______________________, personally appeared ________________________, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature: ________________________________ (Seal) _______________________ City of Mountain View Government Code §40814 Item 6 Attachment B - Temporary Construction Easement Item 6: Staff Report Pg. 27 Packet Pg. 83 of 911 Attachment C - San Antonio Area Sewer Main Improvements Drawings CITY OF MOUNTAIN VIEW, CALIFORNIAPUBLIC WORKS DEPARTMENT REVISIONS CITY OF MOUNTAIN VIEWNO.DATE DESCRIPTION APPROVED 500 CASTRO STREET, MOUNTAIN VIEW, CA 94041CHECKED BY:RECOMMENDED FOR APPROVAL:APPROVED FOR CONSTRUCTION:CITY OF MOUNTAIN VIEWSAN ANTONIO AREA SEWER MAIN IMPROVEMENTS - PHASE 2 NOT FORCONSTRUCTION Suite 100Davis, California 95618(530) 756-5905FAX (530) 756-5991 PROJECT ENGINEER PRINCIPAL CIVIL ENGINEER DATE ASST. PUBLIC WORKS DIRECTOR/CITY ENGINEERDESIGNED BY: JDG/LCODRAWN BY: JHP SCALE: AS SHOWN DATE:SHEET:PROJ. MGR. : LCO DATE DATE 01/15/2021 OF 13PIN 8703-1 Item 6 Attachment C - San Antonio Area Sewer Main Improvements Drawings Item 6: Staff Report Pg. 28 Packet Pg. 84 of 911 SECTION & DETAIL DESIGNATIONSLEGENDABBREVIATIONS INDEX OF SHEETSSHEET DRAWINGNUMBER NUMBER SHEET TITLE UTILITY CONTACTS SPRINTPH-X TWO DAYSBEFOREYOU DIG CITY OF MOUNTAIN VIEW, CALIFORNIAREVISIONSPUBLIC WORKS DEPARTMENTNO.DATE DESCRIPTION APPROVED 500 CASTRO STREET, MOUNTAIN VIEW, CA 94041CITY OF MOUNTAIN VIEWSAN ANTONIO AREA SEWER MAIN IMPROVEMENTS - PHASE 2SHEET INDEX, LEGEND, ABBREVIATIONS, & UTILITY CONTACTS NOT FORCONSTRUCTION Suite 100Davis, California 95618(530) 756-5905FAX (530) 756-5991 CITY OF MOUNTAIN VIEW DESIGNED BY:DRAWN BY: JDG/LCOJHP PROJ. MGR. : LCO SCALE:DATE:SHEET:AS SHOWN 01/15/2021 OF 13PIN 8703- 2 Item 6 Attachment C - San Antonio Area Sewer Main Improvements Drawings Item 6: Staff Report Pg. 29 Packet Pg. 85 of 911 CITY OF MOUNTAIN VIEW CONSTRUCTION NOTES: CITY OF MOUNTAIN VIEW, CALIFORNIAPUBLIC WORKS DEPARTMENT REVISIONSNO.DATE DESCRIPTION APPROVED 500 CASTRO STREET, MOUNTAIN VIEW, CA 94041CITY OF MOUNTAIN VIEWSAN ANTONIO AREA SEWER MAIN IMPROVEMENTS - PHASE 2GENERAL NOTES 1 NOT FORCONSTRUCTION Suite 100Davis, California 95618(530) 756-5905FAX (530) 756-5991 CITY OF MOUNTAIN VIEW DESIGNED BY:DRAWN BY: JDG/LCOJHP PROJ. MGR. : LCO SCALE:DATE:SHEET:AS SHOWN 01/15/2021 OF 13PIN 8703- 3 Item 6 Attachment C - San Antonio Area Sewer Main Improvements Drawings Item 6: Staff Report Pg. 30 Packet Pg. 86 of 911 CITY OF MOUNTAIN VIEW CONSTRUCTION NOTES (CONTINUED):PROJECT SPECIFIC NOTES: “ CITY OF MOUNTAIN VIEW, CALIFORNIAPUBLIC WORKS DEPARTMENT REVISIONSNO.DATE DESCRIPTION APPROVED 500 CASTRO STREET, MOUNTAIN VIEW, CA 94041CITY OF MOUNTAIN VIEWSAN ANTONIO AREA SEWER MAIN IMPROVEMENTS - PHASE 2GENERAL NOTES 2 NOT FORCONSTRUCTION Suite 100Davis, California 95618(530) 756-5905FAX (530) 756-5991 CITY OF MOUNTAIN VIEW DESIGNED BY:DRAWN BY: JDG/LCOJHP PROJ. MGR. : LCO SCALE:DATE:SHEET:AS SHOWN 01/15/2021 OF 13PIN 8703- 4 Item 6 Attachment C - San Antonio Area Sewer Main Improvements Drawings Item 6: Staff Report Pg. 31 Packet Pg. 87 of 911 SURVEY CONTROL POINTS C01 TWO DAYSBEFOREYOU DIG CITY OF MOUNTAIN VIEW, CALIFORNIAPUBLIC WORKS DEPARTMENT REVISIONSNO.DATE DESCRIPTION APPROVED 500 CASTRO STREET, MOUNTAIN VIEW, CA 94041CITY OF MOUNTAIN VIEWSAN ANTONIO AREA SEWER MAIN IMPROVEMENTS - PHASE 2KEY MAP AND SURVEY NOTES NOT FORCONSTRUCTION Suite 100Davis, California 95618(530) 756-5905FAX (530) 756-5991 CITY OF MOUNTAIN VIEW DESIGNED BY:DRAWN BY: JDG/LCOJHP PROJ. MGR. : LCO SCALE:DATE:SHEET:AS SHOWN 01/15/2021 OF 13PIN 8703- 5 Item 6 Attachment C - San Antonio Area Sewer Main Improvements Drawings Item 6: Staff Report Pg. 32 Packet Pg. 88 of 911 CITY OF MOUNTAIN VIEW, CALIFORNIAPUBLIC WORKS DEPARTMENT REVISIONSNO.DATE DESCRIPTION APPROVED 500 CASTRO STREET, MOUNTAIN VIEW, CA 94041CITY OF MOUNTAIN VIEWSAN ANTONIO AREA SEWER MAIN IMPROVEMENTS - PHASE 2 NOT FORCONSTRUCTION Suite 100Davis, California 95618(530) 756-5905FAX (530) 756-5991 CITY OF MOUNTAIN VIEW DESIGNED BY:DRAWN BY: JDG/LCOJHP PROJ. MGR. : LCO SCALE:DATE:SHEET:AS SHOWN 01/15/2021 OF 13PIN 8703-6 Item 6 Attachment C - San Antonio Area Sewer Main Improvements Drawings Item 6: Staff Report Pg. 33 Packet Pg. 89 of 911 CITY OF MOUNTAIN VIEW, CALIFORNIAPUBLIC WORKS DEPARTMENT REVISIONSNO.DATE DESCRIPTION APPROVED 500 CASTRO STREET, MOUNTAIN VIEW, CA 94041CITY OF MOUNTAIN VIEWSAN ANTONIO AREA SEWER MAIN IMPROVEMENTS - PHASE 2 NOT FORCONSTRUCTION Suite 100Davis, California 95618(530) 756-5905FAX (530) 756-5991 CITY OF MOUNTAIN VIEW DESIGNED BY:DRAWN BY: JDG/LCOJHP PROJ. MGR. : LCO SCALE:DATE:SHEET:AS SHOWN 01/15/2021 OF 13PIN 8703-7 Item 6 Attachment C - San Antonio Area Sewer Main Improvements Drawings Item 6: Staff Report Pg. 34 Packet Pg. 90 of 911 SAN ANTONIO AVE PH-4 PH-3CITY OF PALO ALTOAPN: 147-09-051 POTHOLE TABLE TWO DAYSBEFOREYOU DIG CITY OF MOUNTAIN VIEW, CALIFORNIAPUBLIC WORKS DEPARTMENT REVISIONSNO.DATE DESCRIPTION APPROVED 500 CASTRO STREET, MOUNTAIN VIEW, CA 94041CITY OF MOUNTAIN VIEWSAN ANTONIO AREA SEWER MAIN IMPROVEMENTS - PHASE 2SAN ANTONIO DR PLAN AND PROFILE STA 40+00 TO STA 47+00 NOT FORCONSTRUCTION Suite 100Davis, California 95618(530) 756-5905FAX (530) 756-5991 CITY OF MOUNTAIN VIEW DESIGNED BY:DRAWN BY: JDG/LCOJHP PROJ. MGR. : LCO SCALE:DATE:SHEET:AS SHOWN 01/15/2021 OF 13PIN 8703- 8 Item 6 Attachment C - San Antonio Area Sewer Main Improvements Drawings Item 6: Staff Report Pg. 35 Packet Pg. 91 of 911 PH-1 PH-2 POTHOLE TABLE TWO DAYSBEFOREYOU DIG CITY OF MOUNTAIN VIEW, CALIFORNIAPUBLIC WORKS DEPARTMENT REVISIONSNO.DATE DESCRIPTION APPROVED 500 CASTRO STREET, MOUNTAIN VIEW, CA 94041CITY OF MOUNTAIN VIEWSAN ANTONIO AREA SEWER MAIN IMPROVEMENTS - PHASE 2CIVIL DETAILS 1 NOT FORCONSTRUCTION Suite 100Davis, California 95618(530) 756-5905FAX (530) 756-5991 CITY OF MOUNTAIN VIEW DESIGNED BY:DRAWN BY: JDG/LCOJHP PROJ. MGR. : LCO SCALE:DATE:SHEET:AS SHOWN 01/15/2021 OF 13PIN 8703- 9 Item 6 Attachment C - San Antonio Area Sewer Main Improvements Drawings Item 6: Staff Report Pg. 36 Packet Pg. 92 of 911 CITY OF MOUNTAIN VIEW, CALIFORNIAPUBLIC WORKS DEPARTMENT REVISIONSNO.DATE DESCRIPTION APPROVED 500 CASTRO STREET, MOUNTAIN VIEW, CA 94041CITY OF MOUNTAIN VIEWSAN ANTONIO AREA SEWER MAIN IMPROVEMENTS - PHASE 2CIVIL DETAILS 2 NOT FORCONSTRUCTION Suite 100Davis, California 95618(530) 756-5905FAX (530) 756-5991 CITY OF MOUNTAIN VIEW DESIGNED BY:DRAWN BY: JDG/LCOJHP PROJ. MGR. : LCO SCALE:DATE:SHEET:AS SHOWN 01/15/2021 OF 13PIN 8703- 10 Item 6 Attachment C - San Antonio Area Sewer Main Improvements Drawings Item 6: Staff Report Pg. 37 Packet Pg. 93 of 911 CITY OF MOUNTAIN VIEW, CALIFORNIAPUBLIC WORKS DEPARTMENT REVISIONSNO.DATE DESCRIPTION APPROVED 500 CASTRO STREET, MOUNTAIN VIEW, CA 94041CITY OF MOUNTAIN VIEWSAN ANTONIO AREA SEWER MAIN IMPROVEMENTS - PHASE 2CIVIL DETAILS 3 NOT FORCONSTRUCTION Suite 100Davis, California 95618(530) 756-5905FAX (530) 756-5991 CITY OF MOUNTAIN VIEW DESIGNED BY:DRAWN BY: JDG/LCOJHP PROJ. MGR. : LCO SCALE:DATE:SHEET:AS SHOWN 01/15/2021 OF 13PIN 8703- 11 Item 6 Attachment C - San Antonio Area Sewer Main Improvements Drawings Item 6: Staff Report Pg. 38 Packet Pg. 94 of 911 CITY OF MOUNTAIN VIEW, CALIFORNIAPUBLIC WORKS DEPARTMENT REVISIONSNO.DATE DESCRIPTION APPROVED 500 CASTRO STREET, MOUNTAIN VIEW, CA 94041CITY OF MOUNTAIN VIEWSAN ANTONIO AREA SEWER MAIN IMPROVEMENTS - PHASE 2STANDARD DETAILS NOT FORCONSTRUCTION Suite 100Davis, California 95618(530) 756-5905FAX (530) 756-5991 CITY OF MOUNTAIN VIEW DESIGNED BY:DRAWN BY: JDG/LCOJHP PROJ. MGR. : LCO SCALE:DATE:SHEET:AS SHOWN 01/15/2021 OF 13PIN 8703- 12 Item 6 Attachment C - San Antonio Area Sewer Main Improvements Drawings Item 6: Staff Report Pg. 39 Packet Pg. 95 of 911 TRAFFIC CONTROL PLAN DETOUR PLAN GENERAL NOTES:1. THESE TRAFFIC CONTROL PLANS HAVE BEEN PREPARED USING INFORMATIONCONTAINED IN THE 2016 CALIFORNIA MANUAL ON UNIFORM TRAFFIC CONTROLDEVICES (CA MUTCD).2. THE CONTRACTOR MUST INSTALL TRAFFIC CONTROL DEVICES PRIOR TOCOMMENCEMENT OF CONSTRUCTION. THE CONTRACTOR MUST ALSO MAINTAINALL TRAFFIC CONTROL DEVICES DURING CONSTRUCTION, AS REQUIRED BY THEENGINEER/INSPECTOR. A 24-HOUR "ON CALL" TELEPHONE NUMBER MUST ALSO BEPROVIDED TO THE CITY BY THE CONTRACTOR FOR SERVICES REQUIRED BEYONDNORMAL WORKDAY OPERATIONS.3. ACTUAL SIGN INSTALLATION LOCATIONS ARE TO BE DETERMINED IN THE FIELD.ALL SIGNS MUST BE INSTALLED PER CALTRANS STANDARD PLAN RS1-RS4 OR ONAPPROVED BARRICADES. SIGN LOCATIONS MUST BE APPROVED BY THE CITYENGINEER/INSPECTOR PRIOR TO ANY INSTALLATION WORK.4. SIGNS MUST BE INSTALLED/PLACED AND REMOVED BY THE CONTRACTOR INACCORDANCE WITH THESE PLANS AND AS DIRECTED BY THE CITY.5. SIGNS MUST BE DESIGNED AND COMMERCIALLY MANUFACTURED INACCORDANCE WITH THE MOST RECENT CALTRANS STANDARD SPECIFICATIONAND CA MUTCD.6. ANY EXISTING SIGNS, STRIPING, AND/OR PAVEMENT MARKINGS THAT CONFLICTWITH THESE TRAFFIC CONTROL PLANS MUST BE COVERED OR REMOVED DURINGCONSTRUCTION. REMOVAL OF ROADWAY STRIPING AND/OR PAVEMENTMARKINGS MUST BE DONE IN ACCORDANCE WITH CURRENT CALTRANS AND CAMUTCD STANDARDS. SIGNS, STRIPING, AND/OR PAVEMENT MARKINGS MUST BERESTORED TO EXISTING CONDITIONS TO THE SATISFACTION OF THE CITYENGINEER/INSPECTOR ONCE CONSTRUCTION IS COMPLETE.7. A MINIMUM OF ONE 12' WIDE TRAVEL LANE PER DIRECTION OF TRAVEL MUSTREMAIN OPEN AT ALL TIMES DURING CONSTRUCTION.8. TEMPORARY TRAFFIC CONTROL DEVICES MUST NOT BLOCK FIRE HYDRANTSAND/OR DRIVEWAYS.9. ALL TRAFFIC CONTROL DEVICES (SIGNS, CHANNELIZERS, ETC.) MUST BERETROFLECTIVE AND/OR ILLUMINATED DURING NIGHTTIME TRAFFIC CONTROL.10. CONTRACTORS MUST POST TEMPORARY "NO PARKING" SIGNS ALONG ROADWAYFRONTAGE, WHERE APPLICABLE, A MINIMUM OF 48 HOURS PRIOR TOCOMMENCEMENT OF WORK AND MUST NOTIFY THE POLICE DEPARTMENT. SIGNSMUST STATE DAYS AND HOURS OF RESTRICTIONS.11. CONTRACTOR MUST DISPLAY ON BARRICADES COMPANY NAME AND 24-HOUREMERGENCY TELEPHONE NUMBER IN CASE OF EMERGENCY CALLOUTS.12. CONTRACTOR MUST FURNISH, ERECT, AND MAINTAIN BARRICADES, LIGHTS,SIGNS, FLAGMEN, FENCING, AND OTHER SAFETY MEASURES TO GIVE ADEQUATEPROTECTION TO THE PUBLIC AT ALL TIMES.13. THE PARKING OF ANY CONSTRUCTION-RELATED VEHICLES OR STORAGE OF ANYMATERIAL IS NOT ALLOWED ON A PUBLIC STREET OR SIDEWALK UNLESSAPPROVED IN ADVANCE BY THE CITY ENGINEER.14. ANY TRAFFIC STRIPING, PAVEMENT MARKINGS, PAVEMENT SURFACE, ETC.DAMAGED OR DESTROYED BY CONTRACTOR'S WORK MUST BE REPLACED BYCONTRACTOR TO THE SATISFACTION OF THE CITY ENGINEER AT THECONTRACTOR'S SOLE EXPENSE.15. FOR ANY ONGOING PROJECTS IN THE VICINITY OF THIS PROJECT, THE ROUTINGOF PEDESTRIANS, VEHICLES, AND CONSTRUCTION TRUCKS MUST BECOORDINATED WITH OTHER CONTRACTORS TO MINIMIZE PUBLIC CONVENIENCE.16. SIDEWALKS AND TRAFFIC LANES MUST REMAIN OPEN WHEN NO ACTIVITY ISPLANNED AND/OR BETWEEN SCHEDULED CLOSURES. SIDEWALKS AND TRAFFICLANES MUST BE OPENED AT THE END OF EACH WORKDAY.17. EXISTING CURBS, GUTTERS, SIDEWALKS, AND DRIVEWAYS TO BERECONSTRUCTED MUST BE REPLACED WITHIN 5 DAYS AFTER DEMOLITIONUNLESS GRANTED AN EXCEPTION BY THE CITY.18. DURING CONSTRUCTION, TRASH/RECYCLING/YARD WASTE COLLECTION VEHICLESMUST HAVE ACCESS TO COLLECTION ROUTE STREETS IN ORDER TO FACILITATECOLLECTION ACTIVITIES. DELAYS OR DISRUPTIONS TO COLLECTION SERVICESMAY NOT OCCUR AS A RESULT OF CONSTRUCTION ACTIVITY. LEGEND: WORK AREA TRAFFIC CONTROL SIGN FLASHING ARROW BOARDTRAFFIC CONE AT 15' OC UNLESS OTHERWISENOTED ON PLAN (28" MINIMUM HEIGHT) CITY OF MOUNTAIN VIEW, CALIFORNIAPUBLIC WORKS DEPARTMENT REVISIONSNO.DATE DESCRIPTION APPROVED 500 CASTRO STREET, MOUNTAIN VIEW, CA 94041CITY OF MOUNTAIN VIEWSAN ANTONIO AREA SEWER MAIN IMPROVEMENTS - PHASE 2TRAFFIC HANDLING PLANCITY OF MOUNTAIN VIEW DESIGNED BY:DRAWN BY: MGABONMGABON SCALE:DATE:SHEET:AS SHOWN 06/24/2020 12 OF 12PIN 8703-12 Item 6 Attachment C - San Antonio Area Sewer Main Improvements Drawings Item 6: Staff Report Pg. 40 Packet Pg. 96 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: June 19, 2023 Report #:2305-1392 TITLE Approval of Construction Contract with OBS Engineering, Inc. (#C23187759) in the Amount of $4,199,222 and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not-to-Exceed Amount of $419,922 for the Boulware Park Improvements project (PE- 17005) and Green Stormwater Infrastructure project (SD-22001); and Approval of FY 2023 Budget Amendments in the Park Development Impact Fee, Stormwater Management, and Capital Improvement Funds; CEQA status—exempt under CEQA Guidelines sections 15301 (existing facilities), 15302 (replacement or reconstruction), 15303 (small structures), and 15311 (accessory structures) RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or their designee to execute construction contract No. C23187759 with OBS Engineering, Inc. in an amount not-to-exceed $4,199,222 for the Boulware Park Improvements Capital Improvement Program project (PE-17005) and the Green Stormwater Infrastructure Stormwater Management Fund project (SD-22000); 2. Authorize the City Manager or their designee to negotiate and execute change orders to the contract No. C23187759 with OBS Engineering, Inc., the total value of which shall not exceed $419,922, for related, additional but unforeseen work that may arise; and 3. Amend the Fiscal Year 2023 Budget Appropriation (requires 2/3 approval) for: a. The Park Development Impact Fee Fund by: i. Decreasing the Ending Fund Balance by $1,500,000; and ii. Increasing the transfer to the Capital Improvement Fund by $1,500,000. b. The Stormwater Management Fund by: i. Decreasing the Green Stormwater Infrastructure project (SD-22001) by $114,950; and ii. Increasing the transfer to the Capital Improvement Fund by $114,950. c. The Capital Improvement Fund by: i. Increasing the Boulware Park Improvements project (PE-17005) revenue estimate for grants from the State of California by $218,979; and Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 1 Packet Pg. 97 of 911 ii. Increasing the Boulware Park Improvements project (PE-17005) transfer from the Park Development Impact Fee Fund by $1,500,000; and iii. Increasing the Boulware Park Improvements project (PE-17005) transfer from the Stormwater Management Fund by $114,950; and iv. Increasing the Boulware Park Improvements project (PE-17005) appropriation by 1,833,929. EXECUTIVE SUMMARY This action would enable the City to engage with the lowest responsible bidder, OBS Engineering, Inc. who was 3% below the current engineer’s estimate to complete construction of the Boulware Park Improvements project and approve necessary budget amendments to ensure sufficient project funding. The Boulware Park Improvements project (PE-17005) began in 2018 to implement necessary infrastructure and maintenance improvements to the existing Boulware Park parcel and updated with the purchase of the adjacent Birch Street property in 2019, the scope of the park project expanded to renovate both parcels as one contiguous park facility. The park design was developed through an intensive community engagement process from 2019 through 2022. The initial project budget established in 2019 and maintained at this initial level until a procurement process was complete. Costs have increased due to construction inflation over the last few years by 10%-15% and design elements incorporated through community-based design. Other factors contributing to the increased project costs are utility upgrades required to meet increased electrical demand for park facilities and additional drainage elements. BACKGROUND In 2017, Council approved capital improvement funding to address Boulware Park maintenance needs as part of the Fiscal Year 2018 Capital Budget. The renovation included infrastructure, accessibility, and maintenance improvements. The project was postponed to Fiscal Year 2019 due to budget/resource constraints and prioritization of capital projects. During that period, the adjacent 3350 Birch Street property owned by AT&T became available. The City pursued the purchase of the parcel in order to add new parkland to the Ventura neighborhood, which is densely populated and has a limited amount of open space. Upon finalizing the purchase of the land in 2019, the City re-engaged the community-based design process to determine how the existing Boulware Park and the newly purchased property would be developed into one contiguous park. On February 10, 2020, Council adopted an ordinance dedicating 0.64 acres of land adjacent to 3350 Birch Street to become part of Boulware Park.1 Community Outreach Process The City conducted a series of public outreach meetings to develop the park improvement 1 City Council, February 10, 2020; Agenda Item #8, SR #10990 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2020/id-10990-park-dedication.pdf?t=60521.13 Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 2 Packet Pg. 98 of 911 design. On November 9, 2019, the first community meeting was held at Boulware Park. The goal of the meeting was for the community to have the opportunity to provide input on what park facilities should be considered in the renovation and expansion of Boulware Park. The community provided input on different park facilities and ranked them based on preference and priority. The facilities presented were drawn from existing facilities at Boulware Park and facilities that were highlighted in the Parks Master Plan to be considered as part of all park renovation projects. These facilities included: Existing Facilities at Boulware Park Playground Basketball Court Group Picnic Area Open Turf Area Master Plan Identified Park Facilities Restroom Dog Park Community Garden Loop Walking Path Adult Fitness Pickle Ball Courts Shaded Seating Areas Habitat/Native Planting Security Lighting Upon completion of the first community meeting, an on-line survey was released for those who could not attend. A total of 62 community members responded to the survey. Survey responses can be viewed on the project web page at www.cityofpaloalto.org/boulwarepark.2 Input from the community and survey, as well as an initial draft park plan, were presented to the Parks and Recreation Commission (PRC) on January 28, 2020.3 The PRC stressed the importance of aligning the proposed park plan with the recommendations of the North Ventura Coordinated Area Plan (NVCAP), which is an on-going comprehensive community planning effort to provide a walkable, mixed-use neighborhood.4 The PRC also expressed support for the initial draft plan including support for a dog park, the removal of a section of Ash Street to combine the two parcels of land, a restroom closer to the playgrounds, and limiting built park 2 Boulware Park Renovation Project Webpage: https://www.cityofpaloalto.org/Departments/Public- Works/Engineering-Services/Engineering-Projects/Boulware-Park-Birch-Street 3 Parks and Recreation Commission, January 28, 2020; Agenda Item #5 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/parks-and- recreation-commission/agendas-minutes/2020-agenda-and-minutes/boulware-park-staff-report-012820_mb.pdf 4 North Ventura Coordinated Area Plan Webpage: https://www.cityofpaloalto.org/Departments/Planning- Development-Services/Housing-Policies-Projects/NVCAP Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 3 Packet Pg. 99 of 911 facilities along the edge of Matadero Creek for potential creek restoration. On February 27, 2020, the City held a joint meeting with the NVCAP working group.5 As the closest adjacent park to the proposed redevelopment area, Boulware Park is important in providing open parkland to the area. The community was presented three draft plan options of the overall park design for input, each of which combined the existing parkland and newly purchased AT&T property, as well as a portion of Ash Street. The design options and facilities were developed from the input received at the first community meeting and guidance from the PRC. On December 7, 2020, a third community meeting was held to allow the community to review the draft park plan layout. Utilizing input collected from PRC and other previous community meetings, a final draft plan was presented for community input. Overall, the park plan includes the following amenities:6 ▪Inclusive playground (both tot (2-5) & children (5-12)) ▪Basketball Court ▪Restroom ▪Dog Park ▪Turn around Drop-Off ▪Open Turf Area ▪Loop Pathway ▪Picnic Area ▪Shaded Seating Area ▪Bocce court ▪Covered picnic area ▪New head-in and accessible parking stalls along Lambert Avenue ▪Environmental amenities include: ▪Runoff filtration gardens ▪Native habitat gardens ▪Net increase of 20 trees 5 North Ventura Working Group; February 27, 2020; https://www.cityofpaloalto.org/files/assets/public/planning- amp-development-services/north-ventura-cap/nvcap_cw-agenda-for-posting-75518.pdf?t=57443.57 6 Boulware Schematic Park Plan: https://www.cityofpaloalto.org/files/assets/public/public-works/engineering- services/webpages/pe-17005-boulware-park-improvements-project/schematic-plan-9.22.22-reduced.pdf Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 4 Packet Pg. 100 of 911 The plan was supported by the community, including the locations of the proposed site amenities, the location of the restroom close to the playground, the added head-in-parking along Lambert Avenue, and the removal of the section of Ash Street. The community was also supportive of a proposed 65-foot setback for built structures along the creek in support of future creek restoration. On January 26, 2021, PRC reviewed the proposed park plan and community feedback.7 The community and PRC supported the overall park plan design. PRC also expressed support for funding and implementing the Boulware Park Improvements project as soon as funding was available. On July 27, 2021, PRC voted unanimously to recommend that Council adopt a Park Improvement Ordinance for the proposed improvements at Boulware Park.8 The Council adopted the Ordinance on October 18, 20219 with its second reading occurring on November 8, 2021.10 All materials presented to the community and PRC can be viewed on the project web site at www.cityofpaloalto.org/boulwarepark. City staff submitted the project for Proposition 68 state grant funding and the project was awarded $218,979. On December 13, 2021, Council adopted a resolution accepting the terms of the grant.11 The grant funds will cover the cost of the group picnic area shade cover, playground equipment, and site furnishings. ANALYSIS Procurement Process On April 20, 2023, an invitation for bids (IFB) for the Boulware Park Improvements project PE- 17005 was posted to the City’s Planet Bids eProcurement system. The bidding period was 33 calendar days. The City received two bids from qualified contractors on May 23, 2023 as listed on the attached proposal bid summary (Attachment A). 7 Parks and Recreation Commission, January 26, 2021, Agenda Item #3 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/parks-and- recreation-commission/agendas-minutes/2021-agendas-and-minutes/january-26-2021-parks-and-recreation- commission-agenda-item-3-boulware-design.pdf 8 Parks and Recreation Commission, July 27, 2021, Agenda Item #3 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/parks-and- recreation-commission/agendas-minutes/2021-agendas-and-minutes/boulware-park-pio-staff-report-final.pdf 9 City Council, October 18, 2021, Agenda Item #8, SR #13536 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/parks-and- recreation-commission/staff-reports/sr-13536-002.pdf 10 City Council, November 8, 2021, Agenda Item #11, SR #13720 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/sr-13720-002.pdf 11 City Council, December 13, 2021; Agenda Item #12, SR #13791 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/parks-and- recreation-commission/staff-reports/sr-13791-002.pdf Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 5 Packet Pg. 101 of 911 A review of the bids included the base bid and all the bid alternates. Base bids ranged from $3,709,710 to $4,530,000 and from 3% below to 16% above the engineer’s estimate of $3,818,921. Bid alternates ranged from $489,511 to $503,421 and from 18% below to 16% below the Engineer’s Estimate of $595,979. SUMMARY OF PROCUREMENT PROCESS BID NAME/NUMBER BOULWARE PARK IMPROVEMENTS PROJECT IFB #187759 Proposed Length of Project # of Bid Packages Downloaded Contractors # of Bid Packages Downloaded by Builder’s Exchanges Total Days to Respond to Bid Pre-Bid Meeting? Number of Bids Received Bid Price Range (Base Bid) Bid Price Range (Base Bid Plus Alternates) Public Link to Solicitation Staff has reviewed all bids and recommends that the Base Bid of $3,709,710, plus Additive Bid Alternates (1 through 28 as outlined in Attachment A) of $489,511, for a total of $4,199,222 submitted by OBS Engineering, Inc. be accepted and that OBS Engineering, Inc. be declared the lowest responsible bidder. Bid alternate items were separated out from the base bid to allow for flexibility in prioritizing the park elements that could be included in the project scope with the available funding, including: the bocce court, synthetic turf in the dog park, basketball court acrylic surfacing, increased light fixtures, site furnishings, and playground equipment. The construction contingency amount of $461,914, which equals 10 percent of the contract value, is requested for related, additional, but unforeseen work which may arise during the project, implemented via City-approved change orders. Staff reviewed information and similar projects performed by the lowest bidder, OBS Engineering, Inc., and found them to be the lowest responsive and responsible bidder. Staff also checked with the Contractor's State License Board and confirmed that the contractor has an active license on file. Staff recommends approval of Contract No. C2318775912 in the amount of $4,199,222, and a $1.5 million budget amendment in the Park Development Impact Fee Fund. This additional funding will provide for a complete park renovation project that retains all key elements and maintains the design discussed during the community outreach process with guidance from the 12 Contract No. C23187759 with OBS Engineering, Inc. https://www.cityofpaloalto.org/files/assets/public/public-works/engineering-services/cip-contracts/boulware- park-contract-final-c23187759r1.pdf Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 6 Packet Pg. 102 of 911 park master plan. The higher engineer’s estimate and bids reflect the current bidding environment, recent inflation and increased cost due the addition of utility upgrades required to meet increased electrical demand for park facilities and additional drainage elements compared to the original project estimate and budget. Additionally, staff from the Public Works and Community Services Departments prioritized this project to use the Park Development Impact Fees because of the importance to the community. FISCAL/RESOURCE IMPACT Partial funding for this contract is available in the Fiscal Year 2023 Boulware Park Improvements Project (PE-17005) and the Green Stormwater Infrastructure Project (SD-22001). The recommendations in this memorandum will increase the Fiscal Year 2023 budget appropriation in the Boulware Park Improvements Project (PE-17005) by $1,833,929. The additional funding will also be used for administrative costs including utilities service fees, material testing, and outreach costs. The ongoing maintenance costs for this project are estimated to be approximately $50,000 annually for landscaping and custodial expenses, in addition to major renovations every 20 years after completion of this project to replace equipment and park amenities. STAKEHOLDER ENGAGEMENT Extensive stakeholder engagement has been completed in developing the proposed project improvement plan, including the many community and public meetings described in this report. ENVIRONMENTAL REVIEW The proposed Boulware Park and Birch Street Property Renovation Project is categorically exempt from the California Environmental Quality Act (CEQA) under Title 14 California Code of Regulations Section 15301 (Existing Facilities), Section 15302 (Replacement or Reconstruction), Section 15303 (New Construction of Small Facilities or Structures), and Section 15311 (Accessory Structures) because it consists of the redevelopment of an existing park. Although the new park area will also include the Birch Street property, the proposed amenities would largely replace existing amenities at the site (e.g., playgrounds, picnic areas, basketball court) or would otherwise provide local-serving amenities. Therefore, the expansion in use would be negligible. In addition, although a small new parking area is proposed, it would replace existing street parking along Ash Street that would be removed as part of the project. Therefore, these alterations to an existing public facility and addition of small new structures would be consistent with the Class 1 (Section 15301) and Class 3 (Section 15303) exemptions. ATTACHMENTS Attachment A: Bid Summary Table APPROVED BY: Brad Eggleston, Director Public Works/City Engineer Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 7 Packet Pg. 103 of 911 Attachment 'A' ‐ Bid Summary Table BASE BID BID ITEM APPROX QTY. UNIT DESCRIPTION, WITH UNIT PRICE IN WORDS (EACH BID ITEM SHALL INCLUDE ALL APPLICABLE TAXES, PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD) Engineers Estimate OBS Engineering Bothman Construction GENERAL SITE WORK 1 1 LUMP SUM Mobilization $35,000.00 $26,425.00 $604,387.51 2 1 LUMP SUM Construction Surveying $22,500.00 $54,769.00 $31,000.00 3 1 LUMP SUM Traffic Control and Construction Area Signage $12,500.00 $4,170.00 $40,000.00 4 1 LUMP SUM Storm Water Pollution Prevention $8,500.00 $38,522.00 $98,000.00 5 1 LUMP SUM Construction Fencing and Gates $11,000.00 $7,408.00 $10,000.00 6 23 EACH Tree Protection $1,100.00 $19,159.00 $10,350.00 7 1 LUMP SUM Pot Hole Existing Utilities $8,500.00 $7,949.00 $2,100.00 PARK DEMOLITION 8 43,951 SQ.FT. Clear and Grub Existing Grass, Decomposed Granite and Shrubs Per Plan $19,777.95 $70,585.3 $24,612.5 9 63 EACH Remove Existing Trees Including Grinding of Stumps $277,200.00 $63,690.17 $69,300.00 10 500 SQ.FT. Remove and Discard Existing Concrete Paving $750.00 $3,938.00 $2,500.00 11 112 LN.FT. Remove and Discard Existing Concrete Curb $1,680.00 $3,278.35 $1,232.00 12 10,735 SQ.FT. Remove and Discard Existing Asphalt Paving, 6" Base and Concrete Curbs $16,102.50 $38,141.46 $53,675.00 13 4,475 SQ.FT. Remove and Discard Existing Asphalt Basketball Court and 6" Base $6,712.50 $16,342.70 $17,900.00 14 1 LUMP SUM Remove and Discard Existing Storm Drain System $6,500.00 $17,094.00 $13,500.00 15 1 LUMP SUM Remove and Discard Existing Playground and Footings (Inc., Fencing, Curbs and Rubber Surfacing)$12,000.00 $35,475.00 $6,500.00 16 280 YARDS Remove and Discard Existing Play Sand $12,600.00 $17,269.56 $20,440.00 17 1 LUMP SUM Remove and Discard Existing Light Fixtures, Footings, Pull Box and Wiring $7,800.00 $4,620.00 $9,000.00 18 1 LUMP SUM Remove and Discard Existing Irrigation Parts $4,800.00 $12,716.00 $4,000.00 19 1 LUMP SUM Remove and Discard Existing Site Furnishing (inc. tables, benches, BBQ, trash receptacles)$6,800.00 $18,490.00 $2,200.00 20 1 EACH Remove and Store Existing Park Sign $1,200.00 $1,980.00 $200.00 21 1 LN.FT. Saw Cut Site Paving $3,500.00 $924.00 $7.50 22 1 LUMP SUM Remove and Discard Small Wooded Shade Structure & Bench $750.00 $6,600.00 $1,100.00 23 230 LN.FT. Remove and Discard Property Line Chainlink Fence $3,200.00 $6,357.89 $1,610.00 STREET DEMOLITOIN 24 895 LN.FT. Remove and Discard Existing Curb and Gutter $1,790.00 $19,197.75 $9,845.00 25 2,827 SQ.FT. Remove and Discard Existing Sidewalk and Ramps $5,654.00 $18,471.62 $14,135.00 26 17,500 SQ.FT. Remove and Discard Existing Street Asphalt $26,250.00 $52,745.00 $70,000.00 27 6 EACH Raise Existing Valve Boxes in Street $3,900.00 $4,620.00 $5,400.00 28 3 EACH Remove and Discard Existing Man Hole $2,550.00 $4,620.00 $5,700.00 29 7 EACH Remove and Discard Existing Street Sign and Footings $2,450.00 $2,310.00 $2,870.00 PARK GRADING 30 362 YARDS Export from Open Lot Area ‐ use to fill Ash St. $19,910.00 $20,272.00 $11,222.00 31 102,886 SQ.FT. Fine Grade Full Park Area $25,721.00 $159,473.30 $174,906.20 STREET GRADING 32 318 YARDS Ash Street Fill ‐ use soil from open lot $6,360.00 $15,900.00 $9,858.00 UTILITIES WATER 33 1 LUMP SUM Relocate Existing Water Meter and Box on Lambert $3,200.00 $2,820.00 $30,000.00 34 115 LN.FT. Drinking Fountain Water Line & 1" Plastic Ball Valve in Round Box $3,775.00 $4,600.00 $4,715.00 35 1 EACH Drinking Fountain Backflow Devise $4,800.00 $5,188.00 $2,000.00 36 170 LN.FT. Restroom Water Line $14,450.00 $6,290.00 $23,800.00 37 1 LN.FT. Restroom Backflow Devise $2,600.00 $5,188.00 $2,000.00 38 1 EACH Hose Bib at Dog Park & 1" Plastic Ball Valve in Round Box $650.00 $3,771.00 $350.00 SEWER 39 170 LN.FT. Restroom Sewer Line to Back of Curb (city to install in street segement) $31,450.00 $19,380.00 $20,400.00 ELECTRICAL (Light Poles and Pole Installation by City) 40 14 EACH Excavate and Install Light Pole Footings $91,000.00 $49,140.00 $42,000.00 41 14 EACH Light Pole Pull Boxes $11,900.00 $40,404.00 $35,000.00 42 1,600 LN.FT. Wire and Conduit $174,000.00 $93,600.00 $80,000.00 43 1 EACH Meter at Restroom $15,000.00 $24,050.00 $20,000.00 44 1 EACH Electrical Plug $3,200.00 $1,950.00 $1,600.00 45 1 EACH Pull Box at Existing Transformer for Splitting Purposes $4,200.00 $7,800.00 $6,500.00 46 10 LN.FT. Irrigation Controller Electrical $1,450.00 $5,655.00 $4,700.00 DRAINAGE 47 5 EACH 30" Catch Basins $21,000.00 $19,625.00 $24,000.00 48 430 LN.FT. 8" Drain Line $49,450.00 $33,540.00 $29,240.00 49 200 LN.FT. 6" Drain Line $19,000.00 $15,000.00 $13,600.00 INFILTRATION PLANTERS LARGE PLANTER 50 280 YARDS Soil Removal $12,600.00 $19,600.00 $3,080.00 51 161 YARDS New C3 Approved Soil $50,700.00 $21,455.20 $20,930.00 52 48 YARDS Biochar $15,105.00 $7,992.00 $6,240.00 53 70 YARDS 3/4" Angular Rock Layer $8,050.00 $10,878.00 $11,200.00 54 1884 SQ.FT. Filter Fabric $3,768.00 $731.93 $715.92 55 2 YARDS Cobble Stone $600.00 $1,110.00 $0.76 56 250 LN.FT. 4" Perforated Pipe $21,250.00 $1,595.63 $4,000.00 57 1 EACH 30" Catch Basin $4,200.00 $1,942.50 $4,800.00 58 1 EACH Clean out ‐ per detail (to be spotted in field) $400.00 $388.50 $371.00 59 70 LN.FT. 8" Drain Line $8,050.00 $5,460.00 $1,120.00 BASKETBALL COURT 60 60 YARDS Soil Removal $2,700.00 $4,200.00 $9,060.00 IFB187759 ‐ Boulware Park Renovation Project Item 7 Attachment A - Bid Summary Table Item 7: Staff Report Pg. 8 Packet Pg. 104 of 911 61 38 YARDS New C3 Approved Soil $10,725.00 $7,381.50 $7,220.00 62 8 YARDS Biochar $3,420.00 $142.08 $1,384.00 63 15 YARDS 3/4" Angular Rock Layer $1,725.00 $3,163.50 $3,075.00 64 402 SQ.FT. Filter Fabric $804.00 $290.04 $281.40 65 70 LN.FT. 4" Perforated Pipe $5,950.00 $446.78 $1,120.00 66 1 EACH 30" Catch basin $4,200.00 $1,942.50 $4,800.00 67 1 EACH Clean out ‐ per detail (to be spotted in field) $400.00 $388.50 $371.00 68 31 LN.FT. 6" Drain Line $2,945.00 $2,325.00 $496.00 LAMBERT AVE. 69 20 YARDS Soil Removal $900.00 $1,400.00 $16,000.00 70 13 YARDS New C3 Approved Soil $3,575.00 $3,751.80 $3,653.00 71 3 YARDS Biochar $1,140.00 $532.80 $519.00 72 5 YARDS 3/4" Angular Rock Layer $575.00 $1,581.75 $1,550.00 73 135 SQ.FT. Filter Fabric $270.00 $172.33 $168.75 74 1 EACH Clean out ‐ per detail (to be spotted in field) $400.00 $388.50 $371.00 75 1 YARDS Cobble Stone $300.00 $1,420.50 $1,400.00 RESTROOM 76 1 LUMP SUM Purchase and Install New Prefabricated Restroom Building Per Plans $300,000.00 $314,480.00 $300,000.00 77 1 LUMP SUM Prepare Restroom Pad ‐ per plan $18,000.00 $4,670.00 $1,000.00 SITE CONSTRUCTION 78 6,575 SQ.FT. Asphalt Basketball Court $46,025.00 $32,546.25 $31,231.25 79 360 LN.FT. Pressure Treated Header Board at Asphalt Paving Areas $9,000.00 $5,940.00 $2,628.00 80 1 LUMP SUM Basketball Court Striping $3,800.00 $1,980.00 $2,000.00 81 9,751 SQ.FT. Asphalt Pathways $68,257.00 $42,904.40 $39,004.00 82 1,133 LN.FT. Pressure Treated Header Board at Asphalt Paving Areas $28,325.00 $18,694.50 $8,270.90 83 1,950 SQ.FT. 6" Thick Concrete Paving $35,100.00 $17,550.00 $37,050.00 84 928 LN.FT. 9" Wide Concrete Curbs at Fence Locations with 2' Deep Galvanized Sleeves (sleeves @ 6' interval) $125,280.00 $41,760.00 $79,808.00 85 112 LN.FT. 6" Wide Concrete Curbs $5,040.00 $9,632.00 $6,160.00 86 4,980 SQ.FT. Decomposed Granite Pathways $24,900.00 $40,905.72 $39,840.00 87 1,540 LN.FT. Pressure Treated Header Board at Decomposed Granite Pathways $38,500.00 $11,367.51 $11,088.00 88 5,590 SQ.FT. Decomposed Granite Picnic Area $27,950.00 $21,717.15 $21,242.00 89 17 EACH Purchase and Install Landscape Boulders $20,400.00 $6,604.50 $6,460.00 90 28 SQ.FT. Concrete Pads for Trash Enclosures $420.00 $2,800.00 $1,400.00 91 1 EACH Install Existing Park Sign $1,800.00 $446.00 $450.00 92 1 EACH Purchase and Install New Park Sign $8,500.00 $669.00 $15,000.00 93 82 LN.FT. Cast‐in‐place Concrete Seat Wall $18,450.00 $23,780.00 $28,700.00 DOG PARK 94 5,143 SQ.FT. 10" Layer Dog Park Mulch $15,429.00 $51,378.57 $50,144.25 95 101 LN.FT. 6" Curb at Planter $4,040.00 $8,686.00 $6,767.00 STREET CONSTRUCTION LAMBERT AVE. 96 120 LN.FT. Curb and Gutter (lamp black)$15,000.00 $5,760.00 $11,520.00 97 113 LN.FT. Gutter (lamp black)$7,345.00 $5,537.00 $8,249.00 98 116 LN.FT. Curb (lamp black)$9,860.00 $10,092.00 $14,152.00 99 180 SQ.FT. Driveway Apron (lamp black)$3,240.00 $15,300.00 $2,880.00 100 681 SQ.FT. Sidewalk (lamp black)$9,534.00 $30,645.00 $13,620.00 101 3,165 SQ.FT. Street Asphalt and Sub‐base $22,155.00 $33,074.25 $75,960.00 102 1 LUMP SUM Street and Parking and Accessible Striping $3,200.00 $4,738.75 $4,600.00 103 145 SQ.FT. Concrete Accessible Ramps $2,610.00 $4,350.00 $2,755.00 104 27 LN.FT. Concrete Accessible Ramp Curbs $945.00 $2,295.00 $1,404.00 105 56 SQ.FT. Truncated Domes $1,960.00 $1,568.00 $2,464.00 106 7 EACH Street Signs $5,950.00 $4,683.00 $4,550.00 107 83 SQ.FT. Cobble Stone Set in Mortar $2,324.00 $4,482.00 $2,158.00 CHESTNUT AVE. 108 94 LN.FT. Curb and Gutter (lamp black)$11,750.00 $4,512.00 $9,024.00 109 53 LN.FT. Rolled Curb and Gutter (lamp black)$8,745.00 $2,650.00 $6,254.00 110 51 LN.FT. Zero Curb and Gutter $4,335.00 $2,295.00 $357.00 111 903 SQ.FT. Sidewalk (lamp black)$12,642.00 $40,635.00 $18,060.00 112 3,157 SQ.FT. Street Asphalt and Sub‐base $22,099.00 $29,517.95 $75,768.00 113 145 SQ.FT. Concrete Accessible Ramps $2,610.00 $4,350.00 $2,610.00 114 16 LN.FT. Concrete Accessible Ramp Curbs $560.00 $1,360.00 $832.00 115 56 SQ.FT. Truncated Domes $1,960.00 $1,568.00 $2,464.00 116 4 EACH Street Signs $3,400.00 $2,676.00 $2,600.00 117 1 EACH Gutter Drain In Let $6,500.00 $3,500.00 $12,000.00 FERNANDO AVE. 118 15 LN.FT. Curb and Gutter (lamp black)$1,875.00 $720.00 $1,440.00 119 773 SQ.FT. Sidewalk (lamp black)$10,822.00 $34,785.00 $15,460.00 120 4,157 SQ.FT. Street Asphalt and Sub‐base $29,099.00 $38,867.95 $95,611.00 PLAYGROUND EQUIPMENT (inclucde tax and shipping ‐refer to Add Alternate List for equipment not on this list) 121 1 EACH Alpah Tower ‐ By Landscape Structures or approved equal $174,610.00 $164,479.29 $230,000.00 122 1 EACH 3 Bay Swings ‐ By Dynamo or approved equal $22,000.00 $11,985.51 $40,000.00 123 1 EACH Disk Swings ‐ Dy Dynamo or approved equal $36,000.00 $20,459.34 $47,000.00 124 1 EACH Disk Spinner ‐ By Goric or approved equal $26,000.00 $26,560.08 $37,000.00 125 1 EACH Accessible Spinner ‐ By Playworld or approved equal $18,000.00 $19,477.39 $25,000.00 126 2 EACH Spring Rider 'Digirider Bear'‐ Landscape Structure or approved equal $3,600.00 $19,434.91 $8,000.00 127 1 EACH Tot Play Structure ‐ Landscape Structure or approved equal $19,000.00 $26,422.64 $37,000.00 128 1 EACH Tot Swing ‐ By Landscape Structures or approved equal $2,200.00 $6,166.58 $5,000.00 129 1 EACH Tandem Swing "You & Me Swing"‐ By Kompan or approved equal $3,600.00 $6,381.90 $17,000.00 IFB187759 ‐ Boulware Park Renovation Project Item 7 Attachment A - Bid Summary Table Item 7: Staff Report Pg. 9 Packet Pg. 105 of 911 130 3 EACH Spin Cup ‐ By Playworld $9,600.00 $14,049.87 $9,000.00 131 1 LUMP SUM Playground Equipment Installation $138,000.00 $99,580.00 $83,000.00 132 1 LUMP SUM Playground Safety Inspection ‐ Third Party $12,000.00 $4,050.00 $2,000.00 SURFACING 133 1,358 SQ.FT. Integral Color Concrete with Retarted Finish $24,444.00 $31,234.00 $38,024.00 134 203 SQ.FT. Integral Color Concrete Paving with Seeded Aggregate Finish $4,669.00 $4,669.00 $11,368.00 135 4,945 SQ.FT. Synthetic Turf $108,790.00 $85,030.51 $108,790.00 136 3,173 SQ.FT. Putting Green Length Synthetic Turf $69,806.00 $53,984.31 $69,806.00 137 1,377 SQ.FT. Premium Rubber Surfacing $34,425.00 $26,303.52 $24,786.00 138 9,495 SQ.FT. 3.5" Attenuated Rubber Pad Under Surfacing $52,222.50 $125,011.17 $123,435.00 139 1,497 SQ.FT. Bonded Rubber Mulch ‐ set on finish grade $23,952.00 $29,241.42 $28,443.00 140 1,025 LN.FT. Synthetic Header Board along Concrete Edges $38,950.00 $7,679.81 $7,482.00 141 65 LN.FT. 6" Concrete Curb $2,925.00 $5,590.00 $3,965.00 SITE FURNISHING 142 8 EACH Picnic Tables and Installation ‐ Quickcrete $38,400.00 $11,000.00 $40,000.00 143 4 EACH Picnic Tables and Installation ‐ Dumor $19,200.00 $11,116.00 $16,000.00 144 3 EACH Game Tables and Installation $18,500.00 $7,317.00 $12,900.00 145 11 EACH Benches and Installation $26,400.00 $30,569.00 $36,300.00 146 2 EACH Trash Receptacles and Installation $13,600.00 $8,920.00 $7,600.00 147 1 EACH Drinking Fountain and Installation $18,500.00 $14,000.00 $18,000.00 148 2 EACH Basketball Hoops and Installation $9,600.00 $5,096.00 $11,600.00 149 7 EACH Bike Rack $4,550.00 $5,705.00 $7,000.00 PICNIC SHADE TRELLIS 150 1 EACH Shade Structure & Shipping $92,000.00 $101,202.80 $78,000.00 151 4 EACH Shade Structure Footings $29,600.00 $95,160.00 $12,000.00 152 1 EACH Shade structure Installation $18,500.00 $15,950.00 $16,000.00 SITE FENCING AND GATES CHAIN LINK 153 133 LN.FT. 12' Black Vinyl Clad Chain Link Fence $13,300.00 $19,278.35 $24,073.00 154 319 LN.FT. 8' Tall Black Vinyl Clad Chain Link Fence $27,115.00 $33,790.08 $39,875.00 155 700 LN.FT. 4' Tall Black Vinyl Clad Chain Link Fence $45,500.00 $54,635.00 $57,400.00 156 7 LN.FT. 4' Tall Single Black Vinyl Gates w/ Panic Bar and Self Closing Hinges $33,600.00 $48,781.25 $37,800.00 157 5 LN.FT. 4' Tall Double Black Vinyl Maintenance Gates (Typical)$11,000.00 $8,697.00 $21,500.00 WOOD 158 227 LN.FT. 6' Tall Douglas Fir Wood Fence with Pressure Treated Frame and Posts $26,105.00 $11,350.00 $27,467.00 159 38 EACH Wood Fence Concrete Post Footings and Hardware (6' interval)$18,240.00 $380.00 $11,590.00 PLANTING 160 53 EACH 24" Box Trees $21,200.00 $58,830.00 $57,240.00 161 239 EACH 1 Gallon Shrubs $6,692.00 $7,958.70 $7,767.50 162 529 EACH 5 Gallon Shrubs $23,805.00 $38,167.35 $37,030.00 163 20 EACH 15 Gallon Shrubs $3,300.00 $2,220.00 $2,200.00 164 2 EACH 15 Gallon Vines $370.00 $177.60 $200.00 165 29 EACH 5 Gallon Vines $1,885.00 $2,092.35 $2,030.00 166 180 LN.FT. Pressure Treated Landscape Header Board $6,300.00 $1,298.70 $1,260.00 167 35,000 SQ.FT. Hydroseed Area $70,000.00 $27,195.00 $7,000.00 168 10 YARDS Soil Amendment $2,250.00 $3,052.50 $3,000.00 IRRIGATION 169 1 EACH Irrigation Controller Set On Concrete Pad $24,000.00 $11,000.00 $11,000.00 170 1 EACH Remove and Replace Exisitng Irrigaiotn Backflow with New 2" Backflow Devise and Cage $6,800.00 $8,325.00 $8,200.00 171 1 EACH 2" Master Valve $1,200.00 $1,110.00 $1,100.00 172 1 EACH 2" Flow Sensor $1,400.00 $2,442.00 $2,400.00 173 2 EACH 3" Gate Valves $1,700.00 $2,553.00 $2,600.00 174 3 EACH 2 1/2" Gate Valves $2,400.00 $3,330.00 $3,300.00 175 1 EACH 2" Gave Valve $750.00 $550.00 $550.00 176 3 EACH 1 1/2" Gate Valves $1,950.00 $1,332.00 $1,200.00 177 5 EACH 1" Gate Valves $2,500.00 $1,665.00 $1,625.00 178 6 EACH 1 1/2" Rotor Valves $5,100.00 $3,330.00 $3,240.00 179 7 EACH 1" Rotor Valves $5,250.00 $2,991.45 $2,800.00 180 6 EACH 1 1/2" Drip Valves, Drip Tube and Associated Parts $25,200.00 $33,300.00 $33,000.00 181 11 EACH 1" Drip Valves, Drip Tube and Associated Parts $41,800.00 $8,547.00 $8,250.00 182 63 EACH 12" Rotor Head and Assembly $17,955.00 $4,195.80 $4,095.00 183 48 EACH Bubbler Assembly in Sleeves $15,600.00 $2,664.00 $2,640.00 184 410 LN.FT. 3" Sch 80 Irrigation Line $19,680.00 $18,204.00 $17,630.00 185 360 LN.FT. 2 1/2" Sch 40 Irrigation Line $15,120.00 $4,795.20 $4,680.00 186 325 LN.FT. 2" Sch 40 Irrigation Line $12,350.00 $3,968.25 $3,900.00 187 225 LN.FT. 1 1/2" Sch 40 Irrigation Line $7,200.00 $2,497.50 $2,475.00 188 80 LN.FT. 1 1/4" Sch 40 Irrigation Line $2,240.00 $799.20 $800.00 189 535 LN.FT. 1" Sch 40 Irrigation Line $12,840.00 $4,750.80 $4,815.00 190 500 LN.FT. 3/4" Sch 40 Irrigation Line $9,000.00 $3,855.00 $4,000.00 191 450 LN.FT. 1/2" Sch 40 Irrigation Line $7,200.00 $2,997.00 $3,150.00 192 18 EACH 1" Quick Couplers $13,500.00 $7,992.00 $7,200.00 Base Bid Total (Items 001 ‐ 192)$3,818,921.95 $3,709,710.36 $4,530,000.00 ADDITIVE ALTERNATE IFB187759 ‐ Boulware Park Renovation Project Item 7 Attachment A - Bid Summary Table Item 7: Staff Report Pg. 10 Packet Pg. 106 of 911 BID ITEM APPROX. QTY UNIT DESCRIPTION, WITH UNIT PRICE IN WORDS (EACH BID ITEM SHALL INCLUDE ALL APPLICABLE TAXES, PROFIT, INSURANCE, BONDS, AND OTHER OVERHEAD) UNIT PRICE BOCCE COURT 1 215 LN.FT. Pressure Treated Edger $13,975.00 $3,724.88 $3,440.00 2 1,170 SQ.FT. 2" Decomposed Granite $4,680.00 $2,895.75 $3,510.00 3 1,170 SQ.FT. 1" Depth Oyster Shell $9,360.00 $4,182.75 $4,680.00 DOG PARK SYNTHETIC TURF 4 5,143 SQ.FT. Synthetic Turf $113,146.00 $74,600.76 $77,145.00 5 305 LN.FT. Synthetic Wood Perimeter Header $11,590.00 $2,285.21 $2,135.00 6 100 YARDS 10" 3/4" Angular Rock $18,500.00 $23,700.00 $14,700.00 7 2 EACH Rotor Irrigation Valves (includes valve, rotors and laterals) $12,800.00 $5,994.00 $6,000.00 BASKETBALL COURT SURFACING 8 5,685 SQ.FT. Acrylic Surfacing $14,212.00 $25,576.82 $17,055.00 9 4 EACH Basketball Hoops $19,200.00 $10,192.00 $30,000.00 ELECTRICAL (Light Poles and Pole Installation by City) 10 6 EACH Excavate and Install Light Pole Footings $39,000.00 $21,060.00 $18,000.00 11 6 EACH Light Pole Pull Boxes $5,100.00 $15,600.00 $13,200.00 12 800 LN.FT. Wire and conduit $94,250.00 $43,680.00 $36,000.00 PLAYGROUND EQUIPMENT (inclucde tax and shipping) 13 1 EACH Unity Dome ‐ By Playworld or Approved Equal $42,160.00 $60,191.17 $34,000.00 14 1 EACH Net Spinner ‐ By Dynamo or Approved Equal $38,000.00 $27,843.19 $33,000.00 15 2 EACH Hammock Swings ‐ by Komppan or Approved Equal $6,800.00 $16,817.96 $10,000.00 16 1 EACH Double Spring Rider ‐ By Landscape Structures or Approved Equal $2,600.00 $5,518.35 $6,200.00 17 1 LUMP SUM Playground Equipment Installation $67,200.00 $27,000.00 $19,500.00 SITE FURNISHING 18 4 EACH Picnic Tables and Installation ‐ Quickcrete $4,800.00 $5,500.00 $20,800.00 19 2 EACH Picnic Tables and Installation ‐ Dumor $4,800.00 $5,558.00 $9,800.00 20 2 EACH Game Tables and Installation $3,700.00 $4,878.00 $11,400.00 21 11 EACH Benches and Installation $24,000.00 $30,569.00 $40,700.00 22 1 EACH Trash Receptacles, Concrete Pad and Installation $6,800.00 $4,460.00 $4,500.00 SITE FENCING AND GATES CHAIN LINK 23 43 LN.FT. 6' Tall Chain Link Fence at Pump Station $2,795.00 $10,169.50 $10,879.00 24 1 LN.FT. 6' Tall Double Chain Link Gates at Pump Station (Typical)$2,400.00 $2,200.00 $4,600.00 WOOD 25 152 LN.FT. 6' Tall Douglas Fir Wood Fence with Pressure Treated Frame and Posts $17,480.00 $7,600.00 $18,392.00 26 26 EACH Wood Fence Concrete Post Footings and Hardware (6' interval)$12,480.00 $260.00 $7,800.00 PLANTING 27 19 EACH 36" Box Trees (Arbutus & Quercus rubrum) ‐ Price difference from 24" box $17,100.00 $13,794.00 $13,585.00 28 18 EACH 48" Box Trees (Quercus lobata & Platanus) ‐ Price difference from 24" box $3,600.00 $33,660.00 $32,400.00 Additive Alternate Bid Total (Items 001 ‐ 028)$595,978.50 $489,511.34 $503,421.00 IFB187759 ‐ Boulware Park Renovation Project Item 7 Attachment A - Bid Summary Table Item 7: Staff Report Pg. 11 Packet Pg. 107 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Transportation Meeting Date: June 19, 2023 Report #:2305-1414 TITLE Approval of the Conceptual Plan for Quiet Zone at Palo Alto Avenue/Alma Street Rail Crossing and Direct Staff to Proceed with Design and Construction of the Project. CEQA status – categorically exempt (Regulation 15301). RECOMMENDATION The Rail Committee and staff recommend the City Council approve the Conceptual Plan to implement a Quiet Zone at Palo Alto Avenue/Alma Street (Attachment A) and direct staff to proceed with the design and to construct improvements required for implementing the quiet zone at this crossing. EXECUTIVE SUMMARY The Office of Transportation is currently working on the Quiet Zone (QZ) study at Palo Alto Avenue in collaboration with City of Menlo Park. Based on the study, the project consultant has prepared the conceptual plans for improvements that will be necessary to implement the quiet zone at this crossing. A study session was conducted with Planning and Transportation Commission (PTC) and the Pedestrian and Bicycle Advisory Committee (PABAC) before seeking Rail Committee’s review. The project received positive consideration and endorsements from these committees. The Rail Committee has reviewed the proposed Conceptual Plan on May 23, 2023 and unanimously recommended approval to the City Council. BACKGROUND The City of Palo Alto (City) has received several requests for consideration of Quiet Zone at crossings across Caltrain Corridor. As the first phase of this project, the City of Menlo Park, in coordination with the City of Palo Alto, is conducting a QZ study that includes consideration of a quiet zone at the Palo Alto Avenue/Alma Street crossing. Kimley Horn and Associates was selected as consultant to perform this study. The procurement process was led by the City of Menlo Park consistent with its policies and practices. A similar study at other crossings within Palo Alto will be performed as a second phase of this project. Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 1 Packet Pg. 108 of 911 ANALYSIS Federal regulation requires that locomotive horns begin sounding 15–20 seconds before entering public rail grade crossings, no more than one-quarter mile in advance. These horns produce sounds from 96 to 110 decibels for at-grade crossings. The sound noise affects the quality of life of the Palo Alto residents in the vicinity of the railroad crossings and causes significant noise pollution. Local agencies, however, can implement Quiet Zones where railroads have been directed to cease the routine of sounding their horns when approaching public highway-rail grade crossings. Train horns may still be used in emergency situations or to comply with other Federal regulations or railroad operating rules. The Federal Railroad Administration (FRA) Title 49 regulations provide opportunity for localities nationwide to mitigate the effects of train horn noise by establishing Quiet Zones. The regulations require a quiet zone study to review the Quiet Zone Risk Index (QZRI) qualifying for quiet zone or Supplemental Safety Measures (SSM) at each crossing. Based on the study, the crossings need to be upgraded to be safer without horns than they are in the current state with horns before proceeding with quiet zones. In early 2022, City of Menlo Park issued a Request for Proposals to conduct Quiet Zone study for four at-grade crossings in Menlo Park. Due to close proximity of the Palo Alto Avenue/Alma Street crossing, City of Palo Alto staff collaborated with City of Menlo Park to include this crossing in the study. The procurement process was led by the City of Menlo Park consistent with its policies and practices. However, staff from both cities worked towards the selection of the Consultant. Kimley Horn and Associates (Consultant) was the selected consultant to perform this study. Consultant performed the crossing analysis based on the FRA and California Public Utilities Commission (CPUC) requirements and prepared preliminary conceptual plans for improvements at these crossings to meet QZ requirements. A field diagnostic meeting was held amongst a team of consultant staff, staff from the cities of Palo Alto and Menlo Park, CPUC, Caltrain, and FRA to review the existing conditions at the crossing and to seek feedback and concurrence in developing recommendations for improvements to implement the Quiet Zone. The consultant therefore developed conceptual plans consistent with FRA and CPUC requirements. The improvements for Palo Alto Avenue/Alma Street primarily recommend for modifications to median islands on both sides of the railroad tracks. These improvements include reconstruction to have median islands with eight (8) inch curb and extension of median islands to meet regulatory standards for quiet zones. A community outreach meeting was held on March 23, 2023. Staff received positive feedback and community desire to expedite implementation of quiet zone in Palo Alto. Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 2 Packet Pg. 109 of 911 On April 26, 2023, a Study Session (Staff Report ID 2303-1201) 1 with Planning and Transportation Commission was held to review proposed project recommendations and seeking feedback for implementing a quiet zone at Palo Alto Avenue/Alma Street Crossing. In addition, on May 2, 2023, a study session seeking comments and feedback was also conducted with the Pedestrian and Bicycle Advisory Committee. At both study sessions, staff received positive consideration for implementing quiet zones. The Rail Committee has reviewed the proposed Conceptual Plan on May 23, 2023 (Staff Report 2304-1285)2 and unanimously recommend approval to the City Council. Next Steps Upon approval of the project and concept plans by the City Council, the City will engage a consultant to support the design and help obtain the necessary permits and approvals from Caltrain and CPUC to modify the At-Grade Railroad Crossing. Following this, the project will bid for construction to install the required improvements. The final step involves City formally requesting the Federal Rail Administration to establish a quiet zone at this crossing. The estimated cost for the design and construction of the improvements outlined in the concept is between $200,000 and $250,000. It is expected that implementation of the quiet zone will take approximately 20-24 months, assuming the City is able to secure timely approvals from the relevant agencies and funding availability. However, if external funding or grants are involved, additional coordination and approvals will be required for grant-related requirements, and the timeline will depend on the funding requirements and processing involved. As needed, staff will return to the City Council for approval of design and/or construction contract. FISCAL/RESOURCE IMPACT This work will be incorporated into one of the City’s existing transportation capital projects; the exact one is to be determined. Staff will seek funding from any applicable federal, state, or regional grants concurrently with the approval process. However, if such funding is unavailable due to the size and timing of the project, staff will seek Measure B Local Streets and Roads (LSR) funds or alternatively absorb the costs within the existing capital project. STAKEHOLDER ENGAGEMENT A Community Meeting was held on March 23, 2023, to seek feedback and comments. In addition, a study session at Planning and Transportation Committee was conducted on April 26, 2023, to solicit feedback and comments. Staff also presented the project at the Pedestrian and Bike Advisory Committee Rail Committee on May 2, 2023, and City School Transportation Safety Committee on May 18, 2023, for feedback before seeking Rail Committee’s review and approval 1 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=11277 2 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=11356 Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 3 Packet Pg. 110 of 911 on May 23, 2023. All meetings are open to the public and therefore provide the community with opportunities to provide comments to the City. ENVIRONMENTAL REVIEW The proposed modifications are minor upgrades to an existing street right-of-way and would not result in any new impacts on the existing environment. This project is considered as a minor alteration to the existing street system, and therefore categorically exempt (Class 1 Exemption, Section 15301) from the provisions of the California Environmental Quality Act (CEQA). ATTACHMENTS Attachment A: Conceptual Plan for Quiet Zone Improvements at Palo Alto Ave APPROVED BY: Philip Kamhi, Chief Transportation Official Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 4 Packet Pg. 111 of 911 PALO ALTO AVE AT-GRADE CROSSING Item 8 Attachment A - Conceptual Plan for Quiet Zone Improvements Palo Alto Ave Item 8: Staff Report Pg. 5 Packet Pg. 112 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: June 19, 2023 Report #:2304-1375 TITLE Approval of: (1) a Purchase Order with Pivot Interiors Inc. in the Amount of $756,021 and (2) a Purchase Order with One Workplace in the Amount of $480,229 for the Public Safety Building Capital Project (PE-15001); CEQA: Environmental Impact Report for the Public Safety Building and New California Avenue Area Parking Garage (Resolution No. 9772) RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or their designee to execute: 1. A Purchase Order with Pivot Interiors Inc. (Attachment A) for the Public Safety Building Capital Project (PE-15001) in an amount not to exceed $756,021, including $687,292 for basic services and $68,729 for contingency; and 2. A Purchase Order with One Workplace (Attachment B) for the Public Safety Building Capital Project (PE-15001) in an amount not to exceed $480,229, including $436,572 for basic services and $43,657 for contingency. BACKGROUND On February 1, 2021, the Public Safety Building (PSB) general construction contract was authorized by Council1. Construction has been underway since March 2021 and is expected to complete in fall 2023. The general construction contract does not include most items designated as fixtures, furniture, and equipment (FF&E). It does include some built-in FF&E items such as wall-mounted video screens and computer server racks. Budget for other stand- alone FF&E has also been included in the project plan, and the overall debt funding plan anticipated these FF&E expenditures. The City-standard modular office furniture purchases 1 City Council, February 1, 2021; Agenda Item #4, SR #11752 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id-11752.pdf Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 1 Packet Pg. 113 of 911 included in this recommendation will be a key component of the final PSB to provide efficient and functional workspaces. The new PSB will house staff from the Police and Fire Departments, and the Office of Emergency Services. Spaces in the building include offices, staff workspaces, break rooms, meeting rooms, fitness rooms, and public lobbies. ANALYSIS In February 2021, Council directed staff to “examine the FF&E budget and remove all that are not necessary at time of completion.” Staff hired Single Source, Inc. to perform a survey of existing offices, conference rooms, and common areas in the Palo Alto Police Department on the first floor of City Hall and Fire Department administration offices on the sixth floor of City Hall. The survey indicated that 16 percent of furniture items were at the end of useful life, about half were not recommended for re-use, and 39 percent had potential for re-use but would require repairs. Repairs could be costly, especially if the item no longer has a warranty. In addition to the age and condition of the existing furniture, the new public areas and staff workspaces of the PSB are configured differently than at City Hall and direct re-use of existing modular furniture would not effectively use the new space. Most of the existing modular furniture in the old facility is also comprised of an earlier generation of Herman Miller cubicles that has been discontinued. Areas in the existing facility that do have the newer generation of the Herman Miller cubicles may be more suitable to reuse in-place under the City Hall Space Planning Capital Project (PE-19000), and avoid expenses associated with a mixed design and move of applicable furniture. As a result, virtually all furniture items will be replaced due to their condition and infeasibility of direct re-use. PSB offices and staff workspaces will be furnished with City-standard Herman Miller modular furniture with finishes matching recent tenant improvements at City Hall and the Municipal Services Center (MSC). If modifications are needed in the future due to changing needs, City staff will be able to source from the current in-house spare parts inventory where possible. Lobby, break area, and staff seating fabrics were selected to withstand public use over the years and for easy cleaning by the City’s maintenance staff. Typically, the selected furniture should last a minimum of 12 years with normal usage and occasional maintenance. In order to remove unnecessary furnishings, staff modified the original furniture plans from 2019 as follows: 1. Removed cubicle fabric tiles that were up against walls on the backside of cubicle walls. 2. Consolidated power in cubicles to avoid having additional powered raceways. 3. Removed standard under cabinet lighting where lighting was sufficient or rarely used by staff. 4. Removed unnecessary cubicle walls and overhead storage on the third-floor administrative counter area and replaced it with freestanding desks. Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 2 Packet Pg. 114 of 911 5. Removed overhead storage where no longer needed in offices on the first floor. As a result, and between the two purchase orders, the City will be purchasing the following items: •118 staff task chairs •59 cubicles and 27 furnished offices •12 staff workstations •56 chairs and 21 tables for staff break areas •28 chairs and 6 tables for public lobbies •61 tables for conference or multi-purpose areas •152 chairs for conference and multi-purpose areas •31 communal storage units •40 pieces of various electronics such as power modules for tables and desk lighting. Per Palo Alto Municipal code 2.30.360(j), the City can take advantage of cooperative purchasing agreements provided: (i) the services are solicited using methods substantially similar to those required under the Municipal Code, as determined by the Procurement Officer; and (ii) the contract is consistent with the requirements under the Municipal Code. OMNIA Partners (OMNIA) and Sourcewell provide discounts for government entities purchasing furniture from brands such as Herman Miller, Steelcase, and Coalesse. The cooperative purchasing agreement contracts were competitively solicited and publicly awarded through the cooperating purchasing organizations and the purchase orders are consistent with the requirements of the Municipal Code. Cooperative purchasing programs allow government organizations to use a single solicitation with the best value and favorable terms and conditions. Each purchase order includes a material cost for furniture and accessories, freight and installation of furniture, and project management fees including layout design from the vendor. Council authorization for a 10% contingency on these Purchase Orders is also included and recommended for minor changes, additions, and for storage fees if there are unforeseen project delays that prevent delivery and installation during the specified calendar window. Furniture sourced through Pivot Interiors Inc. has a lead time of 10-16 weeks, and furniture sourced from One Workplace has a lead time of 18-20 weeks. Staff also expects manufacturing costs to increase on July 1, 2023 for Herman Miller and its subsidiaries. Project Timeline While the project is progressing well toward completion, it should be noted that construction contract substantial completion dates often change during construction as change orders can authorize additional time for various issues that affect the critical path. Staff and the construction manager believe that the PSB is on track for substantial completion in October. Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 3 Packet Pg. 115 of 911 Following substantial completion, the “move-in” phase of the project will continue for several months for the installation and testing of several highly-technical and critical Public Safety, IT, Security, and Communications systems that will be housed at the new PSB. Activities that will be performed during the move-in phase, include: •Completion of punchlist items – minor issues identified during inspections to be corrected prior to final completion of the construction contract, but that do not necessarily impact substantial completion •Furniture Delivery and Installation •Installation, Testing and Commissioning of City / Police IT systems •Commissioning of 9-1-1 telephone and dispatch systems •Commissioning of Radio Systems and Equipment •Phased relocation of Dispatch Operations •Integration of the new facility with neighboring agencies, including Silicon Valley Regional Interoperability Authority (SVRIA) •Phased re-location of Police, Fire Department Administration and Office of Emergency Services staff from the existing facility to the new PSB site Some move-in items will occur during construction. The move-in phase is expected to continue for 3-4 months after substantial construction completion, with the new facility projected to become fully-operational in early 2024. FISCAL/RESOURCE IMPACT Funding for these Purchase Orders for a total of $1,236,250 is available in the Fiscal Year 2023 Adopted Capital Improvement Program budget for the Public Safety Building capital project (PE- 15001) and does not increase the overall PSB budget approved by Council when the construction contract was approved in early 2021. The Purchase Order for One Workplace includes furniture from Steelcase, Coalesse, Enwork, and Jasper Seating. The following totals including applicable taxes are shown below for One Workplace. Item Amount Total $480,228.78 Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 4 Packet Pg. 116 of 911 The Purchase Order for Pivot Interiors Inc. includes furniture from Herman Miller and its subsidiary companies including HAY, Geiger, and Naughtone. The following totals including applicable taxes are shown below for Pivot Interiors. Item Amount Total $756,020.54 STAKEHOLDER ENGAGEMENT Public Works has coordinated the furniture design with key staff from departments whose operations will be dependent upon the PSB. ENVIRONMENTAL REVIEW An Environmental Impact Report for the PSB and the New California Avenue Area Parking Garage was prepared and certified by Council on June 11, 2018, by adoption of Resolution No. 9772.2 ATTACHMENTS Attachment A: Purchase Order with Pivot Interiors Inc. Attachment B: Purchase Order with One Workplace APPROVED BY: Brad Eggleston, Director Public Works/City Engineer 2 Resolution 9772, 2018 https://www.cityofpaloalto.org/files/assets/public/city-clerk/resolutions/reso-9772.pdf?t=40475.53 Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 5 Packet Pg. 117 of 911 This City of Palo Alto (City) Purchase Order agreement (PO) with Pivot Interiors pursuant and subject to Omnia agreement Contract 202000062 PH485, Sourcewell Contract no. 19Z08621 and Omnia agreement Contract R191819 & R191806 with Pivot Interiors for the project management, procurement of equipment and assembly services as detailed in this PO This PO is governed by California law without regard to conflict of law principles. The venue for any dispute under this PO is Santa Clara County, California. This PO by reference incorporates the following contract documents into this PO by reference as though fully set forth herein: 1. Omnia agreement Contract 202000062 PH485 2. Omnia agreement Contract R191819 & R191806 3. Sourcewell Contract 19Z08621 4. Pivot Interiors Quote 411901-01, 411901-02, 411901-03, 411901-04, 411901-05 and 411901-06 5. City of Palo Alto Purchase Order Terms and Conditions 0010 PIVOT Project Management PSB 1 USD 39,073.30 39,073.30 0020 PIVOT Freight & Install PSB 1 USD 121,956.77 121,956.77 Vendor Address PIVOT INTERIORS INC. 3355 SCOTT BLVD STE 110 Santa Clara CA 95054-3138 Tel: 408-432-5600 Fax: 408-432-5601 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Public Safety Building City of Palo Alto 250 Sherman Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Purchase Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number 4523000432 Date 05/30/2023 Vendor No.100165 Payment Terms Payment Due 30 days FOB Point F.O.B Destination Ship via Vendor to ship best method Required Date 07/31/2023 Buyer/Phone Saira Cardoza / 650-329-2327 Email Saira.Cardoza@CityofPaloAlto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 1 of 2 Item 9 Attachment A - Purchase Order with Pivot Interiors Inc. Item 9: Staff Report Pg. 6 Packet Pg. 118 of 911 0030 PIVOT Materials PSB 1 USD 526,261.33 526,261.33 0040 PIVOT Contingency 1 USD 68,729.14 68,729.14 ------------------------- Sub-Total 756,020.54 *** ORDERING VIA EMAIL *** **** PRICE HAS BEEN QUOTED **** Vendor Address PIVOT INTERIORS INC. 3355 SCOTT BLVD STE 110 Santa Clara CA 95054-3138 Tel: 408-432-5600 Fax: 408-432-5601 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Public Safety Building City of Palo Alto 250 Sherman Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer Total 756,020.54 THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Purchase Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number 4523000432 Date 05/30/2023 Vendor No.100165 Payment Terms Payment Due 30 days FOB Point F.O.B Destination Ship via Vendor to ship best method Required Date 07/31/2023 Buyer/Phone Saira Cardoza / 650-329-2327 Email Saira.Cardoza@CityofPaloAlto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 2 of 2 Item 9 Attachment A - Purchase Order with Pivot Interiors Inc. Item 9: Staff Report Pg. 7 Packet Pg. 119 of 911 CITY OF PALO ALTO GDS Rev. 06/22/2016 TERMS AND CONDITIONS OF PURCHASE PAGE 1 OF 3 ACCEPTANCE/AGREEMENT: City of Palo Alto (City) reserves the right to reject any and all quotations, to waive any informalities, and, unless otherwise specified by Seller, to accept any item in a quotation. By accepting or filing this Purchase Order (P.O.), Seller agrees to the terms and conditions herein which shall prevail over any inconsistent provision in any form or other paper submitted by Seller. All shipments or services performed shall be deemed to have been made pursuant hereto. No other terms are acceptable. This P.O., including all specifications and drawings, shall constitute the entire agreement between the parties unless modified in writing by City. CITY'S PROPERTY: Seller agrees that the information, tools, jigs, dies, or materials, and drawings, patterns, and specification supplied or paid for by City shall be and remain City property and shall be held by Seller for City unless directed otherwise. Seller shall account for such items and keep them protected, insured, and in good working conditions without expense to City. DELIVERY: The terms of delivery are as stated on the reverse side hereof. The obligation of Seller to meet the delivery dates, specifications, and quantities set forth herein is of the essence of this P.O. No boxing, packing, or cartage charge will be allowed unless authorized by this P.O. Deliveries are to be made both in quantities and at times specified herein or, if not, such quantities and times are specified pursuant to City's written instruction. Items not delivered may be canceled without penalty to City. Shipments in greater or lesser quantity that ordered may be returned at Seller's expense unless written authorization is issued by City. PRICES: The price which Seller charges in filling this P.O. shall not be higher than Seller's most recent quote or charge to City for such materials, supplies, services and/or installations unless City expressly agrees otherwise in writing. Notwithstanding the prices set forth the P.O. City shall receive the benefit of any general reduction in the price of any item(s) listed herein which may be made by Seller at any time prior to the last delivery of goods or services covered by this P.O. TERMINATION: City shall have the right to terminate this P.O. or any part thereof upon ten (10) days notice in writing to Seller. (1) Without Cause. City may terminate all or any part of this P.O. without cause. Any claim by Seller for damages due to termination without cause must be submitted to City within thirty (30) days after effective date of termination. (2) For Cause. If Seller fails to make any delivery in accordance with the agreed delivery date, delivery schedule, or otherwise fails to observe or comply with any of the other instructions, terms, conditions or warranties applicable to this P.O., City may, in addition to any other right or remedy provided by this P.O. or by law, terminate all or any part of this P.O. in writing without any liability of City with respect to Seller at any time during the term of this P.O. In the event of termination for cause, City may purchase supplies or services elsewhere on such terms or in such manner as City may deem appropriate and Seller shall be liable to City for any cost and other expenses incurred by City, which is charged to City. CHANGES: City shall have the right at any time by written notice via P.O. Change Order to Seller to make changes in the specifications, the quantity of items called for, delivery schedules, and requirements covering testing, packaging, or destination. Any claim by Seller for adjustment under this clause shall be deemed waived unless made in writing with then (10) days after receipt by Seller of notice of such change. Price increases or extensions of time for delivery shall not be binding on City unless evidenced by a P.O. Change Order issued by City's Purchasing Manager. INSPECTION: City shall have the right to inspect and approve or reject any materials, supplies, services and/or installations upon arrival of notice of completion prior to payment without regard to the manner of shipment, completion, or any shipping or price terms contained in this P.O. All materials, supplies, services and/or installations must be furnished as specified. (1) Defective, damaged, and nonconforming materials and/or supplies may be returned for credit or refund, at Seller's expense. City may charge Seller for all expenses of unpacking, examining, repacking and reshipping of such materials and/or supplies. (2) Defective, incorrect and nonconforming services and/or installations may be returned for credit or refund, at Seller's expense. All of the above notwithstanding prior payment by City. WARRANTY: Seller expressly warrants that all materials, supplies, services and/or installations covered by this P.O. shall: (1) conform to the specifications, drawings, samples, or other descriptions specified by City or if none are so specified, to Seller's standard specification or the standards of the ASTM or ANSI or other national standard organizations; (2) be new and unless specified to the contrary on the face hereof, will be free from defects in material and workmanship and will be free of all liens and encumbrances and will conform to any affirmation of facts made on the container or label; (3) be adequately contained, packaged, marked, labeled and/or provided in compliance with all applicable federal and state laws and regulations (including materials deemed hazardous); (4) be performed within the rules and regulations of the Occupational Safety and Health Act of 1970 (as amended); (5) be produced or transferred or disposed of as required by federal and state laws and regulation under the conditions of the Toxic Substances Control Act; the Hazardous Materials Control and Hazardous Waste Regulations; and other toxic laws and programs. Seller further expressly agrees to protect, indemnify, and hold harmless City, its employees and agents for any loss, damage, fine, liability, fee (including reasonable charges and fees) or expense arising in connection with or resulting from Seller's failure to furnish materials or supplies or perform services that conform with any warranty contained herein. (6) have good marketable title. GOVERNING LAW: This P.O. shall be governed by the laws of the State of California. INDEPENDENT CONTRACTOR, INSURANCE: Seller certifies, by acceptance, that he/she is an independent contractor. Seller shall protect, defend, and indemnify and hold City harmless against all damages, liability, claims, losses and expenses (including attorney's fees) arising out of , or resulting in any way from Seller's negligence in providing the goods or services purchased hereunder or from any act or omission of Seller, its agents, employees, or subcontractors, Seller shall maintain such public liability insurance, including contractual liability, automobile and general public liability, (including non-owned automobile liability) Worker's Compensation, and employer's liability insurance as well adequately protect City against such damage, liabilities, claims, losses, and expenses (including attorney's fees). Seller agrees to submit certificates of insurance, evidencing its insurance coverage when requested by City. EQUAL OPPORTUNITY CLAUSE: By acceptance of this P.O., Seller certifies it is in compliance with the Equal Opportunity Clause required by Executive Order 11246, as amended, and the Palo Alto Municipal Code, as amended, including Affirmative Action Compliance Programs for Veterans; Handicapped; and Minority Business, and other equal opportunity programs. FORCE MAJEURE: City may delay delivery or acceptance occasioned by causes beyond its control. Seller shall hold such materials, supplies, services and or installations at the direction of City and shall deliver them when the cause affecting the delay has been removed. City shall be responsible only for Seller's direct additional costs in holding the goods or delaying performance of this P.O. and City's request. Seller shall also be excused if delivery is delayed by unforeseen events beyond its reasonable control, provided Seller notifies City as soon as they occur. City may cancel this P.O. if such delay exceeds thirty (30) days from the original delivery date. Seller shall use its best efforts to grant preference to this P.O. over those of other customers, which were placed after this P.O. AUTHORITY OF AGENT OR FACTOR: Seller represents that, whenever it executes this P.O. on behalf of a third party as an agent or factor, it shall disclose the existence of the agency or factor relationship to City. Seller shall be deemed to have the legal authority to enter into this P.O. with City on behalf of the third party. INTERPRETATION OF CONTRACT DOCUMENTS: In the event of a conflict between the terms of this P.O. and the attached specification with respect to any obligation of Seller, the provision which impose the greater obligations upon Seller shall prevail. Item 9 Attachment A - Purchase Order with Pivot Interiors Inc. Item 9: Staff Report Pg. 8 Packet Pg. 120 of 911 CITY OF PALO ALTO GDS Rev. 06/22/2016 TERMS AND CONDITIONS OF PURCHASE PAGE 2 OF 3 ENVIRONMENTALLY PREFERRED PURCHASING REQUIREMENTS: Seller agrees to comply with the City's Environmentally Preferred Purchasing Requirements. (1) Hazardous Waste: Seller shall take-back all spent or otherwise discarded hazardous products sold to the City by the Seller if the spent or discarded products are classified as hazardous or universal wastes by State or Federal regulations. Seller shall provide convenient collection and recycling services (or disposal services if recycling technology is unavailable) for all universal wastes, which originate from the Vendor. Hazardous waste manifests or bills of lading must be provided to City staff upon request. Recycling and reuse of hazardous wastes must occur within the United States. Universal waste lists and information are available www.dtsc.ca.gov/HazardousWaste/UniversalWaste/. A hazardous waste list is available at http://www.calrecycle.ca.gov/LEA/Training/wasteclass/yep.htm. Additional information can be obtained by contacting the City of Palo Alto Hazardous Waste Department at (650) 496-6980. (2) Zero Waste and Pollution Prevention: Per Palo Alto City Council policy, the City is targeting to achieve Zero Waste by 2021. The City must also meet Municipal Regional Stormwater Permit requirements requiring no visible impact from litter via stormdrains by 2022. To that end the vendor, manufacturer and or contractor must individually or collaboratively comply with the waste reduction, reuse and recycling requirements of the City's Zero Waste and Pollution Prevention Programs. Seller acknowledges and agrees that if Seller fails to fully and satisfactorily comply with these requirements, the City will suffer, as a result of Seller's failure, substantial damages which are both extremely difficult and impracticable to ascertain. Therefore, the Seller agrees that in addition to all other damages to which the City may be entitled, in the event Seller fails to comply with the below requirements Seller shall pay City as liquidated damages the amounts specified below. The liquidated damage amount is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer as a result of such non-compliance. Sellers shall adhere to the standard that all printed materials provided to the City that are generated from a personal computer and printer including, proposals, quotes, invoices, reports, and public education materials shall be double-sided, printed on a minimum of 30% post-consumer content paper or greater unless otherwise approved by the City's Environmental Services Division (650) 329-2117. Materials printed by a professional printing company shall be a minimum of 30% post-consumer material or greater and printed with vegetable based inks. Liquidated damages of $30 per document will be assessed by City for failure to adhere to this requirement. All paper packaging must be Forest Stewardship Council (FSC) Certified. All primary, secondary and shipping (tertiary) packaging be minimized to the maximum extent feasible while protecting the product being shipped. All primary, secondary and shipping packaging shall be recyclable in the City's recycling program. A complete list of items accepted for recycling are found at www.zerowastepaloalto.org or by calling (650) 496-5910. If any portion is received that does not meet this requirement, liquidated damages of $235 or a minimum of $50 if the combined product and shipping cost is $235 or less will be assessed by City for failure to adhere to this requirement. Expanded foam plastics (e.g., foam or cushion blocks, trays, packing 'peanuts'), such as but not limited to polystyrene (aka Styrofoam[tm]), polypropylene, or polyurethane shall not be used as primary, secondary or tertiary/shipping packaging with the following exceptions: o Primary packaging made from these materials may be used if the vendor, manufacturer, contractor individually or collaboratively does one of the following: (a) takes the material back at the City's convenience and at no cost to the City, or (b) pays the City of Palo Alto's disposal costs via payment of liquidated damages of $235, or a minimum of $50 if the combined product and shipping cost is $235 or less. o Bioplastics that meet ASTM D6400 standards for compostability may be accepted with approval from the City's Environmental Services Division subject to local municipal compost facility requirements. o If approved by the City's Environmental Services Division, a packaging requirement may be waived if no other viable packaging alternative exists. Reusable/returnable pallets shall be used and taken back by the Seller, at no additional cost to the City. Seller shall provide documentation upon request ensuring reuse of pallets and/or recycling of broken pallets. Liquidated damages of $262 or a minimum of $50 if the combined product and shipping cost is $262 or less will be assessed by City for failure to adhere to this requirement. (3) Energy and Water Efficiency: Seller shall provide products with an ENERGY STAR, Water Sense or State of California standard rating, whichever is more efficient, when ratings exist for those products. A life cycle cost analysis shall be provided to the City upon request and shall at minimum include: first cost, operating costs, maintenance costs, and disposal costs. Contacts for additional information about City of Palo Alto Hazardous Waste, Zero Waste and Utilities programs: Hazardous Waste Program (Public Works) (650) 496-6980 Zero Waste Program (Public Works) (650) 496-5910 Watershed Protection (650) 329-2117 Energy Efficiency (650) 496-2244 (4) Liquidated Damages: Seller agrees that failure to comply with the City's Environmentally Preferred Purchasing Requirements will result in Liquidated Damages, according to the table marked Liquidated Damages on page 3 of this P.O. Item 9 Attachment A - Purchase Order with Pivot Interiors Inc. Item 9: Staff Report Pg. 9 Packet Pg. 121 of 911 Event of Non-Performance Recycled Paper Use Failure to use 30% recycled content paper Recyclable Packaging Materials Failure of Seller to use secondary and shipping packaging that is recyclable in the City's recycling program. Expanded Foam Plastics Unapproved use of expanded foam plastics for secondary or shipping packaging Pallet Use Failure of Seller to take-back and reuse pallets, recycling only broken pallets, at no additional cost to the City. Acceptable Performance Level (Allowed events per Fiscal Year) 1 1 0 1 Liquidated Damage Amount $30 per each document $235 or a minimum of $50 if the combined product and shipping cost is $250 or less will be incurred if this is not adhered to. $235 or a minimum of $50 if the combined product and shipping cost is $235 or less $262 or a minimum of $50 if the combined product and shipping cost is $2 or less CITY OF PALO ALTO GDS Rev. 06/22/2016 TERMS AND CONDITIONS OF PURCHASE NONCOMPLIANCE WITH ENVIRONMENTALLY PREFERRED PURCHASING REQUIREMENTS, LIQUIDATED DAMAGES: The following table lists the events that constitute breaches of the Agreement's standard of performance warranting the imposition of liquidated damages; the acceptable performance level, and the amount of liquidated damages for failure to meet the contractually required standards of performance. PAGE 3 OF 3 Item 9 Attachment A - Purchase Order with Pivot Interiors Inc. Item 9: Staff Report Pg. 10 Packet Pg. 122 of 911 This City of Palo Alto (City) Purchase Order agreement (PO) with One Workplace is made pursuant and subject to Sourcewell Contract #19Z08621 and Omnia agreement Contract R191819 & R191806 with One Workplace for the procurement of the equipment detailed in this PO. This PO is governed by California law without regard to conflict of law principles. The venue for any dispute under this PO is Santa Clara County, California. This PO by reference incorporates the following contract documents into this PO by reference as though fully set forth herein: 1. Sourcewell Contract No. 19Z08621 2. Omnia agreement Contract R191819 3. Omnia agreement Contract R191806 4. Quote 701689 5. City of Palo Alto Purchase Order Terms and Conditions 0010 Project Management PSB PE-15001 1 USD 31,428.00 31,428.00 0020 Freight and Installation 1 USD 45,805.22 45,805.22 0030 Materials 1 USD 359,338.40 359,338.40 Vendor Address ONE WORKPLACE L.FERRARI, LLC 2500 DE LA CRUZ BLVD. Santa Clara CA 95050 Tel: 415-357-2200 Fax: 415-357-2201 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Public Safety Building City of Palo Alto 250 Sherman Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Purchase Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number 4523000434 Date 05/30/2023 Vendor No.106158 Payment Terms Payment Due 30 days FOB Point F.O.B Destination Ship via Vendor to ship best method Required Date 07/31/2023 Buyer/Phone Saira Cardoza / 650-329-2327 Email Saira.Cardoza@CityofPaloAlto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 1 of 2 Item 9 Attachment B - Purchase Order with One Workplace Item 9: Staff Report Pg. 11 Packet Pg. 123 of 911 0040 Contingency 1 USD 43,657.16 43,657.16 ------------------------- Sub-Total 480,228.78 *** ORDERING VIA EMAIL *** **** PRICE HAS BEEN QUOTED **** Vendor Address ONE WORKPLACE L.FERRARI, LLC 2500 DE LA CRUZ BLVD. Santa Clara CA 95050 Tel: 415-357-2200 Fax: 415-357-2201 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Public Safety Building City of Palo Alto 250 Sherman Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer Total 480,228.78 THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Purchase Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number 4523000434 Date 05/30/2023 Vendor No.106158 Payment Terms Payment Due 30 days FOB Point F.O.B Destination Ship via Vendor to ship best method Required Date 07/31/2023 Buyer/Phone Saira Cardoza / 650-329-2327 Email Saira.Cardoza@CityofPaloAlto.org DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 2 of 2 Item 9 Attachment B - Purchase Order with One Workplace Item 9: Staff Report Pg. 12 Packet Pg. 124 of 911 CITY OF PALO ALTO GDS Rev. 06/22/2016 TERMS AND CONDITIONS OF PURCHASE PAGE 1 OF 3 ACCEPTANCE/AGREEMENT: City of Palo Alto (City) reserves the right to reject any and all quotations, to waive any informalities, and, unless otherwise specified by Seller, to accept any item in a quotation. By accepting or filing this Purchase Order (P.O.), Seller agrees to the terms and conditions herein which shall prevail over any inconsistent provision in any form or other paper submitted by Seller. All shipments or services performed shall be deemed to have been made pursuant hereto. No other terms are acceptable. This P.O., including all specifications and drawings, shall constitute the entire agreement between the parties unless modified in writing by City. CITY'S PROPERTY: Seller agrees that the information, tools, jigs, dies, or materials, and drawings, patterns, and specification supplied or paid for by City shall be and remain City property and shall be held by Seller for City unless directed otherwise. Seller shall account for such items and keep them protected, insured, and in good working conditions without expense to City. DELIVERY: The terms of delivery are as stated on the reverse side hereof. The obligation of Seller to meet the delivery dates, specifications, and quantities set forth herein is of the essence of this P.O. No boxing, packing, or cartage charge will be allowed unless authorized by this P.O. Deliveries are to be made both in quantities and at times specified herein or, if not, such quantities and times are specified pursuant to City's written instruction. Items not delivered may be canceled without penalty to City. Shipments in greater or lesser quantity that ordered may be returned at Seller's expense unless written authorization is issued by City. PRICES: The price which Seller charges in filling this P.O. shall not be higher than Seller's most recent quote or charge to City for such materials, supplies, services and/or installations unless City expressly agrees otherwise in writing. Notwithstanding the prices set forth the P.O. City shall receive the benefit of any general reduction in the price of any item(s) listed herein which may be made by Seller at any time prior to the last delivery of goods or services covered by this P.O. TERMINATION: City shall have the right to terminate this P.O. or any part thereof upon ten (10) days notice in writing to Seller. (1) Without Cause. City may terminate all or any part of this P.O. without cause. Any claim by Seller for damages due to termination without cause must be submitted to City within thirty (30) days after effective date of termination. (2) For Cause. If Seller fails to make any delivery in accordance with the agreed delivery date, delivery schedule, or otherwise fails to observe or comply with any of the other instructions, terms, conditions or warranties applicable to this P.O., City may, in addition to any other right or remedy provided by this P.O. or by law, terminate all or any part of this P.O. in writing without any liability of City with respect to Seller at any time during the term of this P.O. In the event of termination for cause, City may purchase supplies or services elsewhere on such terms or in such manner as City may deem appropriate and Seller shall be liable to City for any cost and other expenses incurred by City, which is charged to City. CHANGES: City shall have the right at any time by written notice via P.O. Change Order to Seller to make changes in the specifications, the quantity of items called for, delivery schedules, and requirements covering testing, packaging, or destination. Any claim by Seller for adjustment under this clause shall be deemed waived unless made in writing with then (10) days after receipt by Seller of notice of such change. Price increases or extensions of time for delivery shall not be binding on City unless evidenced by a P.O. Change Order issued by City's Purchasing Manager. INSPECTION: City shall have the right to inspect and approve or reject any materials, supplies, services and/or installations upon arrival of notice of completion prior to payment without regard to the manner of shipment, completion, or any shipping or price terms contained in this P.O. All materials, supplies, services and/or installations must be furnished as specified. (1) Defective, damaged, and nonconforming materials and/or supplies may be returned for credit or refund, at Seller's expense. City may charge Seller for all expenses of unpacking, examining, repacking and reshipping of such materials and/or supplies. (2) Defective, incorrect and nonconforming services and/or installations may be returned for credit or refund, at Seller's expense. All of the above notwithstanding prior payment by City. WARRANTY: Seller expressly warrants that all materials, supplies, services and/or installations covered by this P.O. shall: (1) conform to the specifications, drawings, samples, or other descriptions specified by City or if none are so specified, to Seller's standard specification or the standards of the ASTM or ANSI or other national standard organizations; (2) be new and unless specified to the contrary on the face hereof, will be free from defects in material and workmanship and will be free of all liens and encumbrances and will conform to any affirmation of facts made on the container or label; (3) be adequately contained, packaged, marked, labeled and/or provided in compliance with all applicable federal and state laws and regulations (including materials deemed hazardous); (4) be performed within the rules and regulations of the Occupational Safety and Health Act of 1970 (as amended); (5) be produced or transferred or disposed of as required by federal and state laws and regulation under the conditions of the Toxic Substances Control Act; the Hazardous Materials Control and Hazardous Waste Regulations; and other toxic laws and programs. Seller further expressly agrees to protect, indemnify, and hold harmless City, its employees and agents for any loss, damage, fine, liability, fee (including reasonable charges and fees) or expense arising in connection with or resulting from Seller's failure to furnish materials or supplies or perform services that conform with any warranty contained herein. (6) have good marketable title. GOVERNING LAW: This P.O. shall be governed by the laws of the State of California. INDEPENDENT CONTRACTOR, INSURANCE: Seller certifies, by acceptance, that he/she is an independent contractor. Seller shall protect, defend, and indemnify and hold City harmless against all damages, liability, claims, losses and expenses (including attorney's fees) arising out of , or resulting in any way from Seller's negligence in providing the goods or services purchased hereunder or from any act or omission of Seller, its agents, employees, or subcontractors, Seller shall maintain such public liability insurance, including contractual liability, automobile and general public liability, (including non-owned automobile liability) Worker's Compensation, and employer's liability insurance as well adequately protect City against such damage, liabilities, claims, losses, and expenses (including attorney's fees). Seller agrees to submit certificates of insurance, evidencing its insurance coverage when requested by City. EQUAL OPPORTUNITY CLAUSE: By acceptance of this P.O., Seller certifies it is in compliance with the Equal Opportunity Clause required by Executive Order 11246, as amended, and the Palo Alto Municipal Code, as amended, including Affirmative Action Compliance Programs for Veterans; Handicapped; and Minority Business, and other equal opportunity programs. FORCE MAJEURE: City may delay delivery or acceptance occasioned by causes beyond its control. Seller shall hold such materials, supplies, services and or installations at the direction of City and shall deliver them when the cause affecting the delay has been removed. City shall be responsible only for Seller's direct additional costs in holding the goods or delaying performance of this P.O. and City's request. Seller shall also be excused if delivery is delayed by unforeseen events beyond its reasonable control, provided Seller notifies City as soon as they occur. City may cancel this P.O. if such delay exceeds thirty (30) days from the original delivery date. Seller shall use its best efforts to grant preference to this P.O. over those of other customers, which were placed after this P.O. AUTHORITY OF AGENT OR FACTOR: Seller represents that, whenever it executes this P.O. on behalf of a third party as an agent or factor, it shall disclose the existence of the agency or factor relationship to City. Seller shall be deemed to have the legal authority to enter into this P.O. with City on behalf of the third party. INTERPRETATION OF CONTRACT DOCUMENTS: In the event of a conflict between the terms of this P.O. and the attached specification with respect to any obligation of Seller, the provision which impose the greater obligations upon Seller shall prevail. Item 9 Attachment B - Purchase Order with One Workplace Item 9: Staff Report Pg. 13 Packet Pg. 125 of 911 CITY OF PALO ALTO GDS Rev. 06/22/2016 TERMS AND CONDITIONS OF PURCHASE PAGE 2 OF 3 ENVIRONMENTALLY PREFERRED PURCHASING REQUIREMENTS: Seller agrees to comply with the City's Environmentally Preferred Purchasing Requirements. (1) Hazardous Waste: Seller shall take-back all spent or otherwise discarded hazardous products sold to the City by the Seller if the spent or discarded products are classified as hazardous or universal wastes by State or Federal regulations. Seller shall provide convenient collection and recycling services (or disposal services if recycling technology is unavailable) for all universal wastes, which originate from the Vendor. Hazardous waste manifests or bills of lading must be provided to City staff upon request. Recycling and reuse of hazardous wastes must occur within the United States. Universal waste lists and information are available www.dtsc.ca.gov/HazardousWaste/UniversalWaste/. A hazardous waste list is available at http://www.calrecycle.ca.gov/LEA/Training/wasteclass/yep.htm. Additional information can be obtained by contacting the City of Palo Alto Hazardous Waste Department at (650) 496-6980. (2) Zero Waste and Pollution Prevention: Per Palo Alto City Council policy, the City is targeting to achieve Zero Waste by 2021. The City must also meet Municipal Regional Stormwater Permit requirements requiring no visible impact from litter via stormdrains by 2022. To that end the vendor, manufacturer and or contractor must individually or collaboratively comply with the waste reduction, reuse and recycling requirements of the City's Zero Waste and Pollution Prevention Programs. Seller acknowledges and agrees that if Seller fails to fully and satisfactorily comply with these requirements, the City will suffer, as a result of Seller's failure, substantial damages which are both extremely difficult and impracticable to ascertain. Therefore, the Seller agrees that in addition to all other damages to which the City may be entitled, in the event Seller fails to comply with the below requirements Seller shall pay City as liquidated damages the amounts specified below. The liquidated damage amount is not a penalty but considered to be a reasonable estimate of the amount of damages City will suffer as a result of such non-compliance. Sellers shall adhere to the standard that all printed materials provided to the City that are generated from a personal computer and printer including, proposals, quotes, invoices, reports, and public education materials shall be double-sided, printed on a minimum of 30% post-consumer content paper or greater unless otherwise approved by the City's Environmental Services Division (650) 329-2117. Materials printed by a professional printing company shall be a minimum of 30% post-consumer material or greater and printed with vegetable based inks. Liquidated damages of $30 per document will be assessed by City for failure to adhere to this requirement. All paper packaging must be Forest Stewardship Council (FSC) Certified. All primary, secondary and shipping (tertiary) packaging be minimized to the maximum extent feasible while protecting the product being shipped. All primary, secondary and shipping packaging shall be recyclable in the City's recycling program. A complete list of items accepted for recycling are found at www.zerowastepaloalto.org or by calling (650) 496-5910. If any portion is received that does not meet this requirement, liquidated damages of $235 or a minimum of $50 if the combined product and shipping cost is $235 or less will be assessed by City for failure to adhere to this requirement. Expanded foam plastics (e.g., foam or cushion blocks, trays, packing 'peanuts'), such as but not limited to polystyrene (aka Styrofoam[tm]), polypropylene, or polyurethane shall not be used as primary, secondary or tertiary/shipping packaging with the following exceptions: o Primary packaging made from these materials may be used if the vendor, manufacturer, contractor individually or collaboratively does one of the following: (a) takes the material back at the City's convenience and at no cost to the City, or (b) pays the City of Palo Alto's disposal costs via payment of liquidated damages of $235, or a minimum of $50 if the combined product and shipping cost is $235 or less. o Bioplastics that meet ASTM D6400 standards for compostability may be accepted with approval from the City's Environmental Services Division subject to local municipal compost facility requirements. o If approved by the City's Environmental Services Division, a packaging requirement may be waived if no other viable packaging alternative exists. Reusable/returnable pallets shall be used and taken back by the Seller, at no additional cost to the City. Seller shall provide documentation upon request ensuring reuse of pallets and/or recycling of broken pallets. Liquidated damages of $262 or a minimum of $50 if the combined product and shipping cost is $262 or less will be assessed by City for failure to adhere to this requirement. (3) Energy and Water Efficiency: Seller shall provide products with an ENERGY STAR, Water Sense or State of California standard rating, whichever is more efficient, when ratings exist for those products. A life cycle cost analysis shall be provided to the City upon request and shall at minimum include: first cost, operating costs, maintenance costs, and disposal costs. Contacts for additional information about City of Palo Alto Hazardous Waste, Zero Waste and Utilities programs: Hazardous Waste Program (Public Works) (650) 496-6980 Zero Waste Program (Public Works) (650) 496-5910 Watershed Protection (650) 329-2117 Energy Efficiency (650) 496-2244 (4) Liquidated Damages: Seller agrees that failure to comply with the City's Environmentally Preferred Purchasing Requirements will result in Liquidated Damages, according to the table marked Liquidated Damages on page 3 of this P.O. Item 9 Attachment B - Purchase Order with One Workplace Item 9: Staff Report Pg. 14 Packet Pg. 126 of 911 Event of Non-Performance Recycled Paper Use Failure to use 30% recycled content paper Recyclable Packaging Materials Failure of Seller to use secondary and shipping packaging that is recyclable in the City's recycling program. Expanded Foam Plastics Unapproved use of expanded foam plastics for secondary or shipping packaging Pallet Use Failure of Seller to take-back and reuse pallets, recycling only broken pallets, at no additional cost to the City. Acceptable Performance Level (Allowed events per Fiscal Year) 1 1 0 1 Liquidated Damage Amount $30 per each document $235 or a minimum of $50 if the combined product and shipping cost is $250 or less will be incurred if this is not adhered to. $235 or a minimum of $50 if the combined product and shipping cost is $235 or less $262 or a minimum of $50 if the combined product and shipping cost is $2 or less CITY OF PALO ALTO GDS Rev. 06/22/2016 TERMS AND CONDITIONS OF PURCHASE NONCOMPLIANCE WITH ENVIRONMENTALLY PREFERRED PURCHASING REQUIREMENTS, LIQUIDATED DAMAGES: The following table lists the events that constitute breaches of the Agreement's standard of performance warranting the imposition of liquidated damages; the acceptable performance level, and the amount of liquidated damages for failure to meet the contractually required standards of performance. PAGE 3 OF 3 Item 9 Attachment B - Purchase Order with One Workplace Item 9: Staff Report Pg. 15 Packet Pg. 127 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: June 19, 2023 Report #:2303-1226 TITLE Approval of a one-year General Services contract with Stephen Ciari Plumbing and Heating, Inc. for Backflow Prevention Devices Testing, Repair, and Certification Services and Approval of a FY 2023 Budget Amendment in the General Fund; CEQA Status – Categorically Exempt 15301 and 15302 RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or their designee to execute contract C23187444 with Stephen Ciari Plumbing and Heating, Inc. in the amount of $146,308 for Backflow Prevention Device Testing, Repair, and Certification Services; and 2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with Stephen Ciari Plumbing and Heating, Inc. for related, additional but unforeseen work which may develop during the contract period, the total value of which shall not exceed $14,630; and 3. Amend the Fiscal Year 2023 budget appropriation for the General Fund (requires a 2/3 vote) by: a) Increasing the Public Works Department Public Services Division operating budget ongoing contract expenses expenditure by $55,911; b) Increasing the Community Services Department Parks Division operating budget ongoing contract expenses expenditure by $55,911; and c) Decreasing the Budget Stabilization Reserve by $111,822. Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 1 Packet Pg. 128 of 911 BACKGROUND In accordance with State law, backflow prevention devices require annual testing and certification. The testing of City of Palo Alto-owned backflow prevention devices must follow current regulations of the California State Department of Public Health contained in Title 17 of the California Administrative Code, Chapter 5, Subchapter 1, Group 4, Sections 7583 through 7604. ANALYSIS Scope Overview The City has about 400 backflow devices that need to be tested and certified annually. Prior to starting work, the contractor is required to meet with City of Palo Alto Cross Connection Control Staff from the Utilities Department, who will provide prefilled test forms and tags for known devices. The annual inspections will occur in July, and repairs or replacements will immediately follow. There are also miscellaneous inspections, repairs, or replacements that happen throughout the year. Bid Process On March 14, 2023, a notice inviting formal bids for Backflow Prevention Device Testing, Repair, and Certification Services was posted on the PlanetBids website. The bidding period was 15 days. Bids were received from two qualified contractors on March 28, 2023, as listed on the attached Bid Summary (Attachment A). Summary of Bid Process Bid Name/Number Backflow Prevention Devise Testing, Repair, and Certification Services RFQ #187444 Three Years 15 2 $457,791 to $693,979 Staff has reviewed the submitted bids and recommends that the bid of $457,791 submitted by Stephen Ciari Plumbing and Heating, Inc. be accepted and that Stephen Ciari Plumbing and Heating, Inc. be declared the lowest responsible bidder. The award of contract1 includes the base bid, but for a term of one year rather than the three-year term originally included in the procurement. The change order amount of $14,630 (which equals 10 percent of the total 1 Stephen Ciari Plumbing and Heating, Inc C23187444: https://www.cityofpaloalto.org/files/assets/public/public- works/public-services/contracts/contract-c23187444-stephen-ciari-plumbing-and-heating-inc.pdf Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 2 Packet Pg. 129 of 911 contract) is requested for related, additional but unforeseen work which may develop during the contract term. Staff confirmed with the Contractor's State License Board that the contractor has an active license on file. Staff also confirmed with the California Department of Industrial Relations (DIR) that the contractor has an active DIR registration. Contract Cost Increases The prior three-year contract was $122,325. The new three-year contract total as submitted by the low bidder was $457,791. As a comparison, individual inspection costs under the previous contract were $75 whereas for the new contract, they are ranging from $229 to $611. Prevailing and union wage rates have substantially increased in the last three years. Additionally, the prior contractor had significant and ongoing performance issues in completing the required work, which may have been related to their lower costs in comparison to other contractors. Staff contacted other local cities to ask for cost comparisons, but was unable to obtain comparisons. Several cities stated that they perform this work in-house. Staff also contacted one of the contractors who downloaded the bid package but chose not to submit a bid. The contractor verbally stated a price higher than the two bids that were received as the bid they had developed but decided not to submit. Given the significantly higher cost of the new contract, staff recommends approval of a one- year contract rather than the three-year contract originally intended under the procurement. After further review, staff believes that the tight timeframe requirement to complete all testing and any needed repairs may have contributed to higher bids. Staff is reevaluating this requirement and will adjust the contract specifications to provide greater flexibility to bidders and complete a new procurement prior to the expiration of the recommended one-year contract. Additionally, the Utilities Department is considering a potential in-house model under which Utilities staff would conduct backflow prevention device testing for all water utility customers. FISCAL/RESOURCE IMPACT Funding for a portion of the first year of the Backflow Prevention Device Testing, Repair, and Certification Services contract is available in the Fiscal Year 2023 Public Works Department and Community Services Department operating budgets. For the remaining portion, staff recommends increasing the Fiscal Year 2023 budget by $55,911 in the Public Works operating budget and by $55,911 in the Community Services operating budget, and decreasing the Budget Stabilization Reserve (BSR) by $111,822. This draw would reduce the BSR to $52.8 million, this reserve level is 19% of General Fund expenses, above the Council target of 18.5% however, impact the estimates used to develop the FY 2024 Proposed Budget as this use was not included. Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 3 Packet Pg. 130 of 911 STAKEHOLDER ENGAGEMENT Ten contractors were notified through Planetbids for this solicitation. Staff will be notified if testing or repair work will be disruptive in their workspace. ENVIRONMENTAL REVIEW This contract is categorically exempt from the California Environmental Quality Act (CEQA) under Sections 15301 and 15302 of the CEQA guidelines as an alteration to an existing facility and no further environmental review is necessary. ATTACHMENTS Attachment A: Bid Summary for Backflow Prevention Devices Testing, Repair, and Certification Services APPROVED BY: Brad Eggleston, Director Public Works/City Engineer Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 4 Packet Pg. 131 of 911 Bid Summary Backflow Prevention Devices Testing, Repair, and Certification Services RFQ187444 Vendor Name Bid Amount Item 10 Attachment A - Bid Summary for Backflow Prevention Devices Testing, Repair, and Certification Services Item 10: Staff Report Pg. 5 Packet Pg. 132 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Fire Meeting Date: June 19, 2023 Report #:2305-1461 TITLE Approval of Amendment No. 1 with South Bay Regional Public Safety Training Consortium (Contract No S23187799) for Fire Academy and Other Training Services extended through 12/31/2023 and increasing the total compensation by $114,370 for a total contract amount not to exceed $199,000. CEQA status: not a project. RECOMMENDATION Staff recommends that the Council approve and authorize the City Manager or their designee to execute Amendment No. 1 to Contract No. S23187799 with South Bay Regional Public Safety Training Consortium (Attachment A) for Fire Academy training services and performance evaluations for Firefighter 1 and 2 qualifications, to extend term to December 31, 2023, and to increase the contract compensation by $114,370 for the additional services over the extended term. This amendment results in a revised total contract amount not to exceed amount of $199,000. BACKGROUND The Palo Alto Fire Department has recently hired 12 new Firefighters who require comprehensive training. After hiring a recruit, each firefighter must undergo training as per the California State Fire curriculum, which encompasses Firefighter 1 and Firefighter 2 qualifications. The curriculum requires approximately 21 weeks of instruction, with two weeks of planning before the beginning of the academy. Training requires an approved facility that meets the specifications of the State Fire Marshal’s office, with a state-approved classroom and training grounds. South Bay Regional Public Safety Training Consortium (South Bay) possesses such a facility, and a team of industry experts who are certified instructors throughout California. In this contract, they will provide the training site, logistics, instructors, equipment, and all required state documentation to certify firefighters for the Palo Alto Fire Department. Item 11 Item 11 Staff Report Item 11: Staff Report Pg. 1 Packet Pg. 133 of 911 In April 2023, staff executed a contract through June 30, 2023 with South Bay, totaling $84,630,(Attachment B). This contract exclusively covered the Firefighter 1 Training academy. An exemption to competitive solicitation was approved by the City Manager in accordance with PAMC 2.30.360(d) due to South Bay being the only source available to provide services with the time-sensitive nature of the Fire Department’s requirements and the need for an experienced training service provider. ANALYSIS Given the Fire Department's inability to host the remainder of the Firefighter 2 academy, to facilitate this additional training staff recommends an amendment to the existing contract with South Bay, increasing the contract's value by $114,370 and extending its duration to December 31, 2023. The proposed contract amendment brings the total academy and additional training value to $199,000, an increase from its original focus on Firefighter 1 training alone. This new total includes optional courses such as driver training, pump/hydraulic training, and other rescue- related courses necessary to serve the community. Previously, from July 2022 to February 2023, the Fire Department contracted with South Bay for $49,900 for non-hosted Firefighter 1 & Firefighter 2 training. This contract included instruction for approximately 3 recruits in a Joint Fire Academy using the approved training site of another fire department. Currently, no joint academy has the capacity to accommodate the current group of 12 hires. While South Bay is a commonly used provider across the County of Santa Clara, the Fire Department aims to participate in a solicitation and competitive bidding process for calendar year 2024. It is necessary to amend our existing contract to continue new firefighter training and extend the contract period to the end of calendar year 2023 due to the pressing need for firefighter staffing and the current timeline of recruiting and training. FISCAL/RESOURCE IMPACT The fiscal impact of this amendment includes an increase in compensation by $114,370, leading to a new total not-to-exceed contract amount of $199,000. Funds were approved by the Council to be appropriated for the new hire costs for the 12 recruits as part of the Fiscal Year 2023 Midyear Budget Review (CMR 2212-05151). STAKEHOLDER ENGAGEMENT Staff coordinated internally with procurement staff and legal support to review and execute this amendment. 1 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1073 Item 11 Item 11 Staff Report Item 11: Staff Report Pg. 2 Packet Pg. 134 of 911 ENVIRONMENTAL REVIEW The contract amendment involves no physical changes to the environment or to any physical project that has been approved. Therefore, it is not subject to environmental review under the California Environmental Quality Act (CEQA). ATTACHMENTS Attachment A: Contract Amendment No.1 with South Bay Regional Training Attachment B: Current contract No. S23187799 with South Bay Regional Training APPROVED BY: Geoffrey Blackshire, Fire Chief Item 11 Item 11 Staff Report Item 11: Staff Report Pg. 3 Packet Pg. 135 of 911 Vers.: Aug. 5, 2019 Page 1 of 8 AMENDMENT NO. 1 TO CONTRACT NO. S23187799 BETWEEN THE CITY OF PALO ALTO AND SOUTH BAY REGIONAL PUBLIC SAFETY TRAINING CONSORTIUM This Amendment No. 1 (this “Amendment”) to Contract No. S23187799 (the “Contract” as defined below) is entered into as of June 19, 2023, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and SOUTH BAY REGIONAL PUBLIC SAFETY TRAINING CONSORTIUM, located at 560 Bailey Avenue, San Jose, CA 95141 (“CONSULTANT”). CITY and CONSULTANT are referred to collectively as the “Parties” in this Amendment. R E C I T A L S A. The Contract was entered into by and between the Parties hereto for the provision of proving Firefighter 1 training to new Fire Department recruits, as detailed therein. B. The Parties now wish to amend the Contract in order to expand the scope of services to include Firefighter 2 training and optional certifications, extend the term an additional six (6) months until December 31, 2023 and increase the total not-to-exceed amount of the Contract by One Hundred Fourteen Thousand Three Hundred Seventy Dollars ($114,370) from Eighty-Four Thousand Six Hundred Thirty Dollars ($84,630) to a new total not-to-exceed amount of One Hundred Ninety-Nine Thousand Dollars ($199,000); to 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. S23187799 between CONSULTANT and CITY, dated April 5, 2023. 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, 2023 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement.” DocuSign Envelope ID: 7840F7AC-39A6-4F21-B1E1-8CEF5DD5744B Item 11 Attachment A - Contract Amendment No.1 with South Bay Regional Training Item 11: Staff Report Pg. 4 Packet Pg. 136 of 911 Vers.: Aug. 5, 2019 Page 2 of 8 SECTION 3. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to add the following: “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-to-exceed amount of One Hundred Ninety-Nine Thousand Dollars ($199,000). The schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.” SECTION 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 “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS. c. 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: 7840F7AC-39A6-4F21-B1E1-8CEF5DD5744B Item 11 Attachment A - Contract Amendment No.1 with South Bay Regional Training Item 11: Staff Report Pg. 5 Packet Pg. 137 of 911 Vers.: Aug. 5, 2019 Page 3 of 8 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 ____________________________ Purchasing Manager APPROVED AS TO FORM: __________________________ City Attorney or designee SOUTH BAY REGIONAL PUBLIC SAFETY TRAINING CONSORTIUM By:__________________________________ Name:________________ ________________ Title:_________________________________ Attachments: EXHIBIT “A”: SCOPE OF SERVICES (AMENDED, REPLACES PREVIOUS) EXHIBIT “C”: COMPENSATION (AMENDED, REPLACES PREVIOUS) EXHIBIT “C-1”: SCHEDULE OF RATES (AMENDED, REPLACES PREVIOUS) DocuSign Envelope ID: 7840F7AC-39A6-4F21-B1E1-8CEF5DD5744B President/CEO Kevin Jensen Item 11 Attachment A - Contract Amendment No.1 with South Bay Regional Training Item 11: Staff Report Pg. 6 Packet Pg. 138 of 911 Vers.: Aug. 5, 2019 Page 4 of 8 EXHIBIT A - AMENDED, REPLACES PREVIOUS SCOPE OF SERVICES Scope of Work: Firefighter 1 and 2 Training Academy for PAF Recruits at South Bay Training Center. Objective: To provide a comprehensive Firefighter 1 and 2 Training Academy for up to 12 PAF Recruits, including training curriculum and materials, required instructors, proctors, and evaluators in accordance with the State FF1 and FF2 Curricula. 1. Pre-Academy Planning: Collaborate with PAFD staff to develop a detailed plan for the academy, including scheduling, logistics, and coordination of instructors and resources. 2. Orientation: Deliver an introduction to the academy, its policies and procedures, and an overview of the training program for fire recruits. 3. Firefighter Fitness Training: Implement a physical fitness training and evaluation program designed to improve recruits' strength, endurance, and overall fitness. 4. Basic Firefighting Skills: Provide instruction and hands-on training in fundamental firefighting skills, including hose lays, ladders, forcible entry, ventilation, salvage and overhaul, basic rescue techniques, and advanced techniques introduced in FF2 training. 5. Firefighter Survival and Safety: Teach firefighter safety principles, personal protective equipment (PPE), self-contained breathing apparatus (SCBA), rapid intervention crew (RIC) operations, firefighter survival skills, and advanced safety protocols covered in FF2 training. 6. Fire Behavior and Fire Control: Educate recruits on fire chemistry, fire behavior, fire suppression techniques, extinguishing agents, and advanced fire control strategies introduced in FF2 training. 7. Hazardous Materials: Deliver training on hazardous materials awareness and operations, and strategies for handling incidents involving hazardous materials, including specialized scenarios covered in FF2 training. 8. Wildland Firefighting: Instruct recruits on wildland firefighting techniques, equipment, strategies specific to California's unique landscape and wildfire challenges, and advanced tactics covered in FF2 training. 9. Technical Rescue: Introduce rope rescue, confined space rescue, and trench rescue operations through classroom instruction and practical exercises, including advanced rescue techniques covered in FF2 training. 10. State FF1 and FF2 Testing: Administer proctored written and skills testing for the CA State FF1 and FF2 certifications, ensuring that recruits are well-prepared and meet all necessary requirements. DocuSign Envelope ID: 7840F7AC-39A6-4F21-B1E1-8CEF5DD5744B Item 11 Attachment A - Contract Amendment No.1 with South Bay Regional Training Item 11: Staff Report Pg. 7 Packet Pg. 139 of 911 Vers.: Aug. 5, 2019 Page 5 of 8 Deliverables: 1. Comprehensive training curriculum and materials aligned with State FF1 and FF2 Curricula. 2. Sufficient number of qualified instructors, proctors, and evaluators for FF1 and FF2 training. 3. Training facilities and equipment, including South Bay Training Center, for the duration of the academy. 4. Regular progress reports and evaluations for each recruit. 5. Proctored written and skills testing for CA State FF1 and FF2 certifications. 6. Coordination and communication with PAFD staff throughout the academy. Training includes: • Joint Fire Academy, with up to 12 recruits FF1/FF2: o Total training estimate of $199,000  Estimate includes 21-week academy: $139,000  Optional State Fire Certified Training: $60,000 • See optional State Fire Classes (listed below) o Single squad academy • 21 weeks of FF1 & FF2 instruction o 23 weeks total  2 weeks prep • Breakdown without agency instructor or coordination o Approximately 1/3 Lecture - 1 instructor filling instructor and coordinator roll simultaneously o Approximately 1/3 Manipulative training - 1 instructor 1 coordinator  Coordinator filling in as needed • Pump operator • Skills coach • Safety officer • Other o Approximately 1/3 Manipulative training with - 2 instructors and 1 coordinator  Coordinator (1) filling in as needed • Pump operator • Skills coach • Safety officer • Other DocuSign Envelope ID: 7840F7AC-39A6-4F21-B1E1-8CEF5DD5744B Item 11 Attachment A - Contract Amendment No.1 with South Bay Regional Training Item 11: Staff Report Pg. 8 Packet Pg. 140 of 911 Vers.: Aug. 5, 2019 Page 6 of 8  Instructors (2) • Staffing drills that require smaller student to instructor ratio o Example: ladder throws @ 3 groups of 5 • Optional State Fire Courses --SFT certificates and specialty courses not included in Joint Fire Academy (Approximate Costs for Palo Alto recruits (subject to change)): o Optional State Fire Courses may include:  Behavioral Health & Cancer Awareness 1A – • Includes: $1,200 certification fee  Driver 1A – • Total for group: $11,200 w/certs • Includes: $1,200 certification fee to state fire training  Driver 1B – • Total for group: $11,200 w/certs • Includes: $1,200 certification fee to state fire training  Rescue Systems 1 – • ~$975 per student w/cert • X12 Students= $11,700  Vehicle Extrication – • ~ $595 per student w/cert • X12 Students= $7,140  Rope Rescue Awareness/ Operations – • ~ $1,400 per student w/cert • X12 Students= $16,800  Trench Rescue – • ~$975 per student w/cert • X12 Students= $11,700  Confined Space Rescue – • ~$975 per student w/cert • X12 Students= $11,700  Other agency requested Certified State Fire Training as required by PAFD DocuSign Envelope ID: 7840F7AC-39A6-4F21-B1E1-8CEF5DD5744B Item 11 Attachment A - Contract Amendment No.1 with South Bay Regional Training Item 11: Staff Report Pg. 9 Packet Pg. 141 of 911 Vers.: Aug. 5, 2019 Page 7 of 8 EXHIBIT C - AMENDED, REPLACES PREVIOUS COMPENSATION CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00. DocuSign Envelope ID: 7840F7AC-39A6-4F21-B1E1-8CEF5DD5744B Item 11 Attachment A - Contract Amendment No.1 with South Bay Regional Training Item 11: Staff Report Pg. 10 Packet Pg. 142 of 911 Vers.: Aug. 5, 2019 Page 8 of 8 EXHIBIT C-1 - AMENDED, REPLACES PREVIOUS SCHEDULE OF RATES CONSULTANT’s schedule of rates is as follows: DocuSign Envelope ID: 7840F7AC-39A6-4F21-B1E1-8CEF5DD5744B Item 11 Attachment A - Contract Amendment No.1 with South Bay Regional Training Item 11: Staff Report Pg. 11 Packet Pg. 143 of 911 Professional Services Rev. Dec.15, 2020 Page 1 of 18 CITY OF PALO ALTO CONTRACT NO. S23187799 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND SOUTH BAY REGIONAL PUBLIC SAFETY TRAINING CONSORTIUM This Agreement for Professional Services (this “Agreement”) is entered into as of the 5th day of April, 2023 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and SOUTH BAY REGIONAL PUBLIC SAFETY TRAINING CONSORTIUM, located at 560 Bailey Avenue, San Jose, CA 95141 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to engage a consultant to deliver a training to new fire department recruits in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 30, 2023 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 12 Packet Pg. 144 of 911 Professional Services Rev. Dec.15, 2020 Page 2 of 18 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 Eighty-Four Thousand Six Hundred Thirty Dollars ($84,630). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more, CONSULTANT shall make DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 13 Packet Pg. 145 of 911 Professional Services Rev. Dec.15, 2020 Page 3 of 18 recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING. Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Ernie Smedlund, Director of Administrative Services, Telephone: 408-229-4255, Email: esmedlund@theacademy.ca.gov as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 14 Packet Pg. 146 of 911 Professional Services Rev. Dec.15, 2020 Page 4 of 18 CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY’s Project Manager is Steve Lindsey, Deputy Fire Chief, Fire Department, 250 Hamilton Ave., Palo Alto, CA, 94301, Telephone: 650-838-2714, Email: Stephen.Lindsey@CityofPaloAlto.org. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services. SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 15 Packet Pg. 147 of 911 Professional Services Rev. Dec.15, 2020 Page 5 of 18 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 16 Packet Pg. 148 of 911 Professional Services Rev. Dec.15, 2020 Page 6 of 18 caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination. 19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 17 Packet Pg. 149 of 911 Professional Services Rev. Dec.15, 2020 Page 7 of 18 CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises. 21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 18 Packet Pg. 150 of 911 Professional Services Rev. Dec.15, 2020 Page 8 of 18 Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. 26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract: (1) is not a public works contract; (2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j). DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 19 Packet Pg. 151 of 911 Professional Services Rev. Dec.15, 2020 Page 9 of 18 SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. This Project is not a 9204 Public Works Project. SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement. 28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 20 Packet Pg. 152 of 911 Professional Services Rev. Dec.15, 2020 Page 10 of 18 Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions. 29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time. 29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 21 Packet Pg. 153 of 911 Professional Services Rev. Dec.15, 2020 Page 11 of 18 29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: EXHIBIT A: SCOPE OF SERVICES EXHIBIT C: COMPENSATION EXHIBIT C-1: SCHEDULE OF RATES EXHIBIT D: INSURANCE REQUIREMENTS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 22 Packet Pg. 154 of 911 Professional Services Rev. Dec.15, 2020 Page 12 of 18 CONTRACT NO. S23187799 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO ____________________________ Purchasing Manager APPROVED AS TO FORM: __________________________ City Attorney or designee SOUTH BAY REGIONAL PUBLIC SAFETY TRAINING CONSORTIUM By:__________________________________ Name:________________ ________________ Title:_________________________________ By:__________________________________ Name:________________ ________________ Title:_________________________________ DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Kevin Jensen President/CEO Director of Administrative Services Ernest Smedlund Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 23 Packet Pg. 155 of 911 Professional Services Rev. Dec.15, 2020 Page 13 of 18 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. Scope of Work: Firefighter 1 Training Academy for PAF Recruits at South Bay Training Center Objective: To provide a comprehensive Firefighter 1 Training Academy for up to 15 PAF Recruits, including training curriculum, consumables, and materials, required instructors, proctors, and evaluators in accordance with the State FF1 Curriculum. 1. Pre-Academy Planning: Collaborate with PAFD staff to develop a detailed plan for the academy, including scheduling, logistics, and coordination of instructors and resources. 2. Orientation: Deliver an introduction to the academy, its policies and procedures, and an overview of the training program for fire recruits. 3. Firefighter Fitness Training: Implement a physical fitness training and evaluation program designed to improve recruits' strength, endurance, and overall fitness. 4. Basic Firefighting Skills: Provide instruction and hands-on training in fundamental firefighting skills, including hose lays, ladders, forcible entry, ventilation, salvage and overhaul, and basic rescue techniques. 5. Firefighter Survival and Safety: Teach firefighter safety principles, personal protective equipment (PPE), self-contained breathing apparatus (SCBA), rapid intervention crew (RIC) operations, and firefighter survival skills. 6. Fire Behavior and Fire Control: Educate recruits on fire chemistry, fire behavior, fire suppression techniques, and extinguishing agents. 7. Wildland Firefighting: Instruct recruits on wildland firefighting techniques, equipment, and strategies specific to California's unique landscape and wildfire challenges. 8. Technical Rescue: Introduce rope rescue, confined space rescue, and trench rescue operations through classroom instruction and practical exercises. 9. State FF1 Testing: Administer proctored written and skills testing for the CA State FF1 certification, ensuring that recruits are well-prepared and meet all necessary requirements. Deliverables: 1. Comprehensive training curriculum and materials aligned with State FF1 Curriculum. 2. Sufficient number of qualified instructors, proctors, and evaluators. 3. Training facilities and equipment, including South Bay Training Center, for the duration of the academy. 4. Regular progress reports and evaluations for each recruit. DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 24 Packet Pg. 156 of 911 Professional Services Rev. Dec.15, 2020 Page 14 of 18 5. Proctored written and skills testing for CA State FF1 certification. 6. Coordination and communication with PAFD staff throughout the academy. Training includes: • Joint Fire Academy, with up to 12 recruits $84,630 o Single squad academy • 12 weeks of FF1 instruction o 14 weeks total  2 weeks prep • Breakdown without agency instructor or coordination o Approximately 1/3 Lecture - 1 instructor filling instructor and coordinator roll simultaneously o Approximately 1/3 Manipulative training - 1 instructor 1 coordinator  Coordinator filling in as needed • Pump operator • Skills coach • Safety officer • Other o Approximately 1/3 Manipulative training with - 2 instructors and 1 coordinator  Coordinator (1) filling in as needed • Pump operator • Skills coach • Safety officer • Other  Instructors (2) • Staffing drills that require smaller student to instructor ratio o Example: ladder throws @ 3 groups of 5 • SFT certificates and specialty courses not included: o FF2 Training and certification o Optional courses  BHCA  Driver 1A  RRAO DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 25 Packet Pg. 157 of 911 Professional Services Rev. Dec.15, 2020 Page 15 of 18 EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00. A. Travel outside the San Francisco Bay Area, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses. B. Long distance telephone service charges, cellular phone service charges, facsimile transmission and postage charges, if specified as reimbursable, will be reimbursed at actual cost. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 26 Packet Pg. 158 of 911 Professional Services Rev. Dec.15, 2020 Page 16 of 18 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT’s schedule of rates is as follows: DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 27 Packet Pg. 159 of 911 Professional Services Rev. Dec.15, 2020 Page 17 of 18 EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN. REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 28 Packet Pg. 160 of 911 Professional Services Rev. Dec.15, 2020 Page 18 of 18 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP DocuSign Envelope ID: A29FD7F7-6591-4933-B96C-B90E43537E28 Item 11 Attachment B - Current contract No. S23187799 with South Bay Regional Training Item 11: Staff Report Pg. 29 Packet Pg. 161 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Administrative Services Meeting Date: June 19, 2023 Report #:2305-1529 TITLE Approval of the Fiscal Year 2024 Investment Policy; CEQA – Not a Project RECOMMENDATION Staff recommends the City Council approve the Fiscal Year 2024 Investment Policy (Attachment A). DISCUSSION The Investment Policy (Policy) requires that the Policy be reviewed, and any changes proposed by Staff be approved by the City Council during the annual budget process. Staff has reviewed the policy and recommends no changes to the Policy for Fiscal Year 2024. FISCAL/RESOURCE IMPACT There are no budget impacts associated with the approval of the Investment Policy and the City’s investment portfolio continues to be managed in-house with existing staff resources. POLICY IMPLICATIONS This recommendation does not represent any change to City policies. STAKEHOLDER ENGAGEMENT Staff works internally and regularly checks the State of California code for any relevant permitted investment code changes. ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. Item 12 Item 12 Staff Report Item 12: Staff Report Pg. 1 Packet Pg. 162 of 911 ATTACHMENTS Attachment A: City of Palo Alto Investment Policy - Fiscal Year 2024 APPROVED BY: Kiely Nose, Assistant City Manager Lead Staff: Tarun Narayan; Manager Treasury, Debt, & Investment Item 12 Item 12 Staff Report Item 12: Staff Report Pg. 2 Packet Pg. 163 of 911 Fiscal Year 2023 1 Attachment A PROPOSED CITY OF PALO ALTO Investment Policy Fiscal Year 2023-24 With No Changes INTRODUCTION The City of Palo Alto invests its pooled idle cash according to State of California law and the charter of the City of Palo Alto. In particular, the City follows “The Prudent Investor Standard” cited in the State Government Code (Section 53600.3). Under this standard, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. INVESTMENT PHILOSOPHY The basic principles underlying Palo Alto's investment philosophy is to ensure the safety of public funds, provide that sufficient money is always available to meet current expenditures, and achieve a reasonable rate of return on its investments. The City's preferred and chief practice is to buy securities and to hold them to their date of maturity rather than to trade or sell securities prior to maturity. The City may, however, elect to sell a security prior to its maturity should there be a significant financial need. If securities are purchased and held to their maturity date, then any changes in the market value of those securities during their life will have no effect on their principal value. Under a buy and hold philosophy, the City is able to protect its invested principal. The economy, the money markets, and various financial institutions (such as the Federal Reserve System) are monitored carefully to make prudent investments and to assess the condition of the City’s portfolio. INVESTMENT OBJECTIVES The primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield: Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 3 Packet Pg. 164 of 911 Fiscal Year 2023 2 1. Safety: Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. a) Credit risk is the risk that an obligation will not be paid and a loss will result. The City will seek to minimize this risk by:  Limiting investment to the safest types of securities or minimum credit quality rating as listed in the “Authorized Investment” section  Diversifying its investments among the types of securities that are authorized under this investment policy b) Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investor’s portfolio. For example, an investor with large holdings in long-term bonds has assumed significant interest rate risk because the value of the bonds will fall if interest rates rise. The City can minimize this risk by:  Buying and holding its securities until maturity  Structuring the investment portfolio so that securities mature to meet cash flow requirements To further achieve the objective of safety, the amount that can be invested in all investment categories, excluding obligations of the U.S. Government and its agencies, is limited either as a percentage of the portfolio or by a specific dollar amount. These limits are defined under the “Authorized Investments” section. 2. Liquidity: Liquidity is the second most important objective of the investment program. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by maintaining a portion of the portfolio in liquid money market mutual funds or local government investment pools. In addition, the City will maintain one month’s net cash needs in short term and/or liquid investments and at least $50 million shall be maintained in securities maturing in less than two years. Although the City’s practice is to buy and hold securities to maturity, since all possible cash demands cannot be anticipated, the portfolio will consist of securities with active secondary or resale markets should the need to sell a security prior to maturity arises. 3. Yield: Yield on the City’s portfolio is last in priority among investment objectives. The investment portfolio shall be designed to obtain a market rate of return that reflects the authorized investments, risk constraints, and liquidity needs outlined in the City’s investment policy. Compared to similar sized cities, the City of Palo Alto should be able to take advantage of its relatively large reserve balances to achieve higher yields through long-term investments. In addition, the City will strive to maintain the level of investment of idle funds as close to 100 percent as possible. Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 4 Packet Pg. 165 of 911 Fiscal Year 2023 3 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) RESPONSIBILITIES In addition to and subordinate to the Safety, Liquidity, and Yield investment objectives, investments that support sound environmental, social and governance (ESG) objectives are also considered. While the City’s portfolio is not classified as an ESG portfolio, investments in entities that support community well-being through practices that emphasize safe and environmentally sound objectives; fair labor practices; and equality of rights regardless of sex, race, age, disability, or sexual orientation, is encouraged. Direct investments in entities that manufacture tobacco products, firearms, and engage in direct production or drilling of fossil fuels is discouraged. This section applies to new investments (after November 5, 2018) only and does not require divestment of existing investments. Investments in Certificates of Deposit (CDs) and Negotiable Certificates of Deposit are exempt from the ESG investing objective. SCOPE A. This investment policy shall apply to all financial assets of the City of Palo Alto as accounted for in the Annual Comprehensive Financial Report (ACFR), including but not limited to the following funds: 1. General Fund 2. Special Revenue Funds 3. Debt Service Funds 4. Capital Project Fund 5. Enterprise Funds 6. Internal Service Funds 7. Trust and Agency Funds B. The policy does not cover funds held by the California Public Employees Retirement System (CalPERS), the California Employers’ Retiree Benefit Trust (CERBT), Deferred Compensation programs (e.g. ICMA, Hartford), the Authority for California Cities Excess Liability (ACCEL), and the Public Agency Retirement Services (PARS) Section 115 Irrevocable Trust. C. Investments of bond proceeds shall be governed by the provisions of the related bond indentures. GENERAL INVESTMENT GUIDELINES 1. The maximum stated final maturity of individual securities in the portfolio should be ten years. 2. A maximum of 30 percent of the par value of the portfolio shall be invested in securities with maturities beyond five years. 3. The City shall maintain a minimum of one month’s net cash needs in short term and/or Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 5 Packet Pg. 166 of 911 Fiscal Year 2023 4 liquid investments. 4. At least $50 million shall be maintained in securities maturing in less than two (2) years. 5. Should the ratio of the market value of the portfolio to the book value of the portfolio fall below 95 percent, the Administrative Services Department will report this fact to the City Council within a reasonable time frame and evaluate whether there is any risk of holding any of the securities to maturity. 6. Commitments to purchase securities newly introduced on the market shall be made no more than three (3) working days before pricing. 7. Whenever possible, the City will obtain three or more quotations on the purchase or sale of comparable securities and take the higher yield on purchase or higher price on sale. This rule will not apply to new issues, which are purchased at market no more than three (3) working days before pricing, as well as to LAIF, City of Palo Alto bonds, money market accounts and mutual funds, all of which shall be evaluated separately. 8. Where the Investment Policy specifies a percentage limitation for a particular category of investment, that percentage is applicable only at the date of purchase. A later increase or decrease in a percentage resulting from a change in the portfolio’s assets or values shall not constitute a violation of that restriction. As soon as possible, percentage limitations will be restored as investments mature in each category. AUTHORIZED INVESTMENTS The California Government Code (Sections 53600 et seq.) governs investment of City funds. The following investments are authorized: 1. U.S. Government Securities (e.g. Treasury notes, bonds and bills) Securities that are backed by the full faith and credit of the United States a) There is no limit on purchase of these securities. b) Securities will not exceed 10 years maturity. c) All purchased securities must have an explicit or a de facto backing of the full faith and credit of the U.S. Government. 2. U.S. Government Agency Securities – Obligations issued by the Federal Government agencies (e.g. Federal National Mortgage Association, etc.). a. There is no limit on purchase of these securities except for: Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 6 Packet Pg. 167 of 911 Fiscal Year 2023 5  Callable and Multi-step-up securities provided that: - The potential call dates are known at the time of purchase - The interest rates at which they “step-up” are known at the time of purchase - The entire face value of the security is redeemed at the call date - No more than 25 percent of the par value of the portfolio b. Securities will not exceed 10 years maturity. 3. California State, California Local Government Agencies, and other United States State Bonds a) Having at time of investment a minimum Double A (AA/Aa2) rating as provided by a nationally recognized rating service (e.g. Moody’s, Fitch, and/or Standard and Poor’s). b) May not exceed 40 percent of the par value of the portfolio. c) Investments include: i) Registered state warrants or treasury notes or bonds of the State of California and bonds, notes, warrants, or other evidences of indebtedness of any local agency within California, including bonds payable solely out of the revenues from a revenue producing property owned, controlled, or operated by the state or local agency or by a department, board, agency, or authority of the state or local agency. ii) Registered treasury notes or bond of any of the 49 United States in addition to the State of California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency or authority of any of the other 49 United States, in addition to the State of California. 4. Certificates of Deposit (CD) - A debt instrument issued by a bank for a specified period of time at a specified rate of interest. Purchase of CD’s are limited to: a) May not exceed 20 percent of the par value of the portfolio. b) No more than 10 percent of the par value of the portfolio in collateralized CDs in any institution. c) Purchase collateralized deposits only from federally insured large banks that are rated by a nationally recognized rating service (e.g. Moody’s, Fitch, and/or Standard and Poor’s). Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 7 Packet Pg. 168 of 911 Fiscal Year 2023 6 d) For non-rated banks, deposit should be limited to amounts federally insured (FDIC). – See Appendix C e) Rollovers are not permitted without specific instruction from authorized City staff. 5. Banker's Acceptance Notes (BA) – Bills of exchange or time drafts drawn on and accepted by commercial banks. Purchase of banker’s acceptances are limited to: a) No more than 30 percent of the par value of the portfolio. b) Not to exceed 180 days maturity. c) No more than $5 million with any one institution. 6. Commercial Paper - Short-term unsecured obligations issued by banks, corporations, and other borrowers. Purchases of commercial paper are limited to: a) Having highest letter or numerical rating as provided for by a nationally recognized rating service (e.g. Moody’s, Fitch, and/or Standard and Poor’s). b) No more than 15 percent of the par value of the portfolio. c) Not to exceed 270 days maturity. d) No more than $3 million or 10 percent of the outstanding commercial paper of any one institution, whichever is lesser. 7. Local Agency Investment Fund (LAIF) – A State of California managed investment pool may be used up to the maximum permitted by California State Law. 8. Short-Term Repurchase Agreements (REPO) – A contractual agreement between a seller and a buyer, usually of U.S. government securities, whereby the seller agrees to repurchase the securities at an agreed upon price and, usually, at a stated time. Purchases of REPO’s must: a) Not to exceed 1 year. b) Market value of securities that underlay a repurchase agreement shall be valued at 102 percent or greater of the funds borrowed against those securities. c) A Master Repurchase agreement must be signed with the bank or dealer. Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 8 Packet Pg. 169 of 911 Fiscal Year 2023 7 9. Money Market Deposit Accounts – Liquid bank accounts which seek to maintain a net asset value of $1.00. 10. Mutual Funds which seek to maintain a net asset value of $1.00 and which are limited essentially to the above investments and further defined in note 9 of Appendix A a) No more than 20 percent of the par value of the portfolio. b) No more than 10 percent of the par value with any one institution. 11. Negotiable Certificates of Deposit (NCD) issued by nationally or state-chartered banks and state or federal savings institutions and further defined in note 11 of Appendix A. Purchases of negotiable certificates of deposit: a) May not exceed 20 percent of the par value of the portfolio. b) No more than $5 million in any one institution. 12. Medium-Term Corporate Notes – Issued by corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating with the United States. a) Not to exceed 5 years maturity. b) Securities eligible for investment shall have a minimum rating of AA or Aa2 from a nationally recognized rating service (e.g. Moody’s, Fitch, and/or Standard & Poor’s). c) No more than 10 percent of the par value of the portfolio. d) No more than $5 million of the par value may be invested in securities of any single issuer, other than the U.S. Government, its agencies and instrumentality. e) If securities owned by the City are downgraded by Moody’s, Fitch, or Standard & Poors to a level below AA or Aa2, it shall be the City’s policy to review the credit situation and make a determination as to whether to sell or retain such securities in the portfolio. 13. Supranational Organizations Securities – Supranational organizations refer to International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC) and Inter-American Development Bank (IADB). a. Securities will not exceed 5 years maturity. b. No more than 20 percent of the par value of the portfolio. c. No more than 10 percent of the par value with any one institution. Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 9 Packet Pg. 170 of 911 Fiscal Year 2023 8 d. Securities eligible for investment shall have a minimum rating of AA or Aa2 from a nationally recognized rating service (e.g. Moody’s, Fitch, and/or Standard & Poor’s). e. Limited to United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by IBRD, IFC, and IADB. Appendix A provides a more detailed description of each investment vehicle and its security and liquidity features. Most of the City's short-term investments will be in securities which pay principal upon maturity, while long-term investments may be in securities that periodically repay principal, as well as interest. Most of the City's investments will be at a fixed rate. However, some of the investments may be at a variable rate, so long as that rate changes on specified dates in pre- determined increments. PROHIBITED INVESTMENTS: Includes all investments not specified above, and in particular: 1. Reverse repurchase agreements 2. Derivatives, as defined in Appendix B Appendix B provides a more detailed description of each investment, which is prohibited, for City investment. AUTHORIZED INVESTMENT PERSONNEL Idle cash management and investment transactions are the responsibility of the Administrative Services Department. The Administrative Services Department is under the control of the Director of Administrative Services (Director), as treasurer, who is subject to the direction and supervision of the City Manager. The Assistant Directors of Administrative Services (Assistant Director), who reports to the Director, are authorized to make all investment transactions allowed by the Statement of Investment Policy. The Assistant Director may authorize the Manager of Treasury, Debt & Investments and/or Senior Management Analyst (Manager and/or Analyst) to enter into investments within clearly specified parameters. The Investment function is under the supervision of the Assistant Director. The Assistant Director is charged with the responsibility to manage the investment program (portfolio), which includes developing and monitoring the City's cash flow model and developing long-term revenue and financing strategies and forecasts. The Manager and/or Analyst are subject to the direction and supervision of the Assistant Director. The Manager and/or Analyst assist the Assistant Director, in the purchase and sale of securities. The Manager and/or Analyst also prepare the quarterly report, and record daily all investment transactions as to the type of investment, amount, yield, and maturity. Cash flow projections are Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 10 Packet Pg. 171 of 911 Fiscal Year 2023 9 prepared as needed. In all circumstances, approval from the Director of Administrative Services is required before selling securities from the City's portfolio. The Manager and/or Analyst may also transfer no more than a total of $10 million a day from the City's general account to any one financial institution, without the prior approval of the Assistant Director. No other person has authority to make investment transactions without the written authority of the Director or Assistant Director of Administrative Services. USE OF BROKERS AND DEALERS The Administrative Services Department maintains a list of acceptable dealers. A dealer acts as a principal in security transactions, selling securities from and buying securities for their own position. A dealer must have: a) At least three years experience operating with California municipalities; b) Maintain an inventory of trading securities of at least $10 million; and c) Be approved by the Assistant Director before being added to the City's list of approved dealers; including individual traders or agents representing a dealer: A dealer will be removed from the list should there develop a history of problems to include: failure to deliver securities as promised, failure to honor transactions as quoted, or failure to provide accurate information. SAFEKEEPING AND CUSTODY All securities shall be delivered to the City's safekeeping custodian and held in the name of the City of Palo Alto, with the exception of the following investments: a) Certificates of deposit, which may be held by the City itself. b) City shares in pooled investment funds, under contract. c) Mutual funds d) Local Agency Investment Fund (LAIF) Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 11 Packet Pg. 172 of 911 Fiscal Year 2023 10 POLICY REVIEW AND REPORTING ON INVESTMENTS Monthly, the Administrative Services Department will review performance in relation to Council adopted Policy. Quarterly, the Department will report to Council investment activity, including: the portfolio’s performance in comparison to policy, explain any variances from policy, provide any recommendations for policy changes, and discuss overall compliance with the City’s Investment Policy. In addition, the Department will provide Council with: a) A detailed list of all securities, investments and monies held by the City, and b) Report on the City’s ability to meet expenditure requirements over the next six months. Annually, the Administrative Services Department will present a Proposed Statement of Investment Policy, to include the delegation of investment authority, to the City Council for review during the annual budget process. All proposed changes in policy must be approved by the Council prior to implementation. Adopted by City Council October 22, 1984 Amended by City Council June 17, 2002 Monthly reporting effective January 1985 Amended by City Council June 17, 2003 Amended and Adopted by City Council June 24, 1985 Amended by City Council June 28, 2004 Amended by City Council Decem er 2, 1985 Amended by City Council June 20, 2005 Amended by City Council June 23, 1986 Amended by City Council June 12, 2006 Amended by City Council June 22, 1987 Amended y City Council June 11, 2007 Amended by City Council August 8, 1988 Amended by City Council June 09, 2008 Amended by City Council November 28, 1988 Amended by City Council June 15, 2009 Amended by City Council June 26, 1989 Amended by City Council June 28, 2010 Amended by City Council May 14, 1990 Amended by City Council June 20, 2011 Amended y City Council June 24, 1991 Amended by City Council June 18, 2012 Amended by City Council June 22, 1992 Amended by City Council June 03, 2013 Amended by City Council June 23, 1993 Amended by City Council June 16, 2014 Amended by City Council June 20, 1994 Amended by City Council June 15, 2015 Amended by City Council June 19, 1995 Amended y City Council June 13, 2016 Amended by City Council June 24, 1996 Amended by City Council June 27, 2017 Amended by City Council June 23, 1997 Amended by City Council November 5, 2018 Amended by City Council January 26, 1998 Amended by City Council June 24, 2019 Amended by City Council June 22, 1998 Adopted y City Council June 22, 2020 Amended by City Council June 28, 1999 Amended y City Council June 21, 2021 Amended by City Council June 19, 2000 Adopted y City Council June 20, 2022 Amended by City Council June 11, 2001 Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 12 Packet Pg. 173 of 911 Fiscal Year 2023 11 APPENDIX A EXPLANATION OF PERMITTED INVESTMENTS 1. U.S. Government Securities: United States Treasury notes, bonds, bills, or certificates of indebtedness or those for which the faith and credit of the United States are pledged for the payment of principal and interest. 2. U.S. Government Agency Securities: U.S. Government Agency Obligations include the securities of the Federal National Mortgage Association (FNMA), Federal Land Banks (FLB), Federal Intermediate Credit Banks (FICB), banks for cooperatives, Federal Home Loan Banks (FHLB), Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC), Student Loan Marketing Association (SLMA), Small Business Administration (SBA), Federal Farm Credit (FFC), and Federal Agricultural Mortgage Corporation (FAMC or FMAC). Federal Agency securities are debt obligations that essentially result from lending programs of the Government. Federal agency securities differ from other types of securities, as well as among themselves. Their characteristics depend on the issuing agency. It is possible to distinguish three types of issues: (A) participation certificates (pooled securities), (B) Certificates of interest (pooled loans), (C) notes, bonds, and debentures. The securities of a few agencies are explicitly backed by the full faith and credit of the U.S. Government. All other issues purchased by the City have the de facto backing from the federal government, and it is highly unlikely that the government would let any agency default on its obligations. 3. Certificates of Deposit: A certificate of deposit (CDs) is a receipt for funds deposited in a bank, savings bank, or savings and loan association for a specified period of time at a specified rate of interest. Denominations are $250,000 and up. The first $250,000 of a certificate of deposit is guaranteed by the Federal Deposit Insurance Corporation (FDIC), if the deposit is with a bank or savings bank, or the Savings Association Insurance Fund (SAIF), if the deposit is with a savings and loan. CDs with a face value in excess of $250,000 can be collateralized by U.S. Government Agency and Treasury Department securities or first mortgage loans. Government securities must be at least 110 percent of the face value of the CD collateralized in excess of the first $250,000. The value of first mortgages must be at least 150 percent of the face value of the CD balance insured in excess of the first $250,000. Generally, CDs are issued for more than 30 days and the maturity can be selected by the purchaser. 4. Bankers' Acceptance: A Banker's Acceptance (BA) is a negotiable time draft or bill of exchange drawn on and accepted by a commercial bank. Acceptance of the draft irrevocably obligates the bank to pay the bearer the face amount of the draft at maturity. BAs are usually created to finance the import and export of goods, the shipment of goods within the United States and storage of readily marketable staple commodities. In over 70 years of usage in the United States, there has been no known instance of principal loss to any investor in BAs. In addition to the guarantee by the accepting bank, the transaction is identified with a specific commodity. Warehouse receipts verify that the pledged commodities exist, and, by definition, these commodities are readily marketable. The sale of the underlying goods generates the Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 13 Packet Pg. 174 of 911 Fiscal Year 2023 12 necessary funds to liquidate the indebtedness. BAs enjoy marketability since the Federal Reserve Bank is authorized to buy and sell prime BAs with maturities of up to nine months. The Federal Reserve Bank enters into repurchase agreements in the normal course of open market operations with BA dealers. As are sold at a discount from par. An acceptance is tied to a specific loan transaction; therefore, the amount and maturity of the acceptance is fixed. 5. Commercial Paper: Commercial paper notes are unsecured promissory notes of industrial corporations, utilities, and bank holding companies. Interest is discounted from par and calculated using actual number of days on a 360-day year. The notes are in bearer form, with maturities up to 270 days selected by the purchaser, and denominations generally start at $100,000. There is a small secondary market for commercial paper notes and an investor may sell a note prior to maturity. Commercial paper notes are backed by unused lines of credit from major banks. Some issuer's notes are insured, while some are backed by irrevocable letters of credit from major banks. State law limits a City to investments in United States corporations having assets in excess of five hundred million dollars with an "A" or higher rating by a nationally recognized rating service for the issuer's debentures. Cities may not invest more than 25 percent of idle cash in commercial paper. 6. Local Agency Investment Fund Demand Deposit: The Local Agency Investment Fund LAIF) was established by the State to enable treasurers to place funds in a pool for investments. The City is limited to an investment of the amount allowed by LAIF (currently $75 million). LAIF has been particularly beneficial to those jurisdictions with small portfolios. Palo Alto uses this fund for short-term investment, liquidity, and yield. 7. Repurchase Agreements: A Repurchase Agreement (REPOS) is not a security, but a contractual arrangement between a financial institution or dealer and an investor. The agreement normally can run for one or more days. The investor puts up funds for a certain number of days at a stated yield. In return, the investor takes title to a given block of securities as collateral. At maturity, the securities are repurchased and the funds repaid, plus interest. Usually, amounts are $500,000 or more, but some REPOS can be smaller. 8. Money Market Deposit Accounts: Money Market Deposit Accounts are market-sensitive bank accounts, which are available to depositors at any time, without penalty. The interest rate is generally comparable to rates on money market mutual funds, though any individual bank's rate may be higher or lower. These accounts are insured by the Federal Deposit Insurance Corporation or the Savings Association Insurance Fund. Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 14 Packet Pg. 175 of 911 Fiscal Year 2023 13 9. Mutual Funds: Mutual funds are shares of beneficial interest issued by diversified management companies, as defined by Section 23701 M of the Revenue and Taxation Code. To be eligible for investment, these funds must: a) Attain the highest ranking in the highest letter and numerical rating provided by not less than two of the three largest nationally recognized rating services; or b) Have an investment advisor registered with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations, as authorized by subdivisions (a) to (n), inclusive, of Section 53601 of the California Government Code, and with assets under management in excess of five hundred million dollars; and c) Invest solely in those securities and obligations authorized by Sections 53601 and 53635 of the California Government Code. Where the Investment Policy of the City of Palo Alto may be more restrictive than the State Code, the Policy authorizes investments in mutual funds that shall have minimal investment in securities otherwise restricted by the City's Policy. Minimal investment is defined as less than 5 percent of the mutual fund portfolio; and d) The purchase price of shares of beneficial interest purchased shall not include any commission that these companies may charge. e) Have a net asset value of $1.00. 10. Callable Securities and Multi-Step-ups: Callable securities are defined as fixed interest rate government agency securities that give the issuing agency the option of returning the invested funds at a specific point in time to the purchaser. Multi-step-ups are government agency securities in which the interest rate increases ("steps-up") at preset intervals, and which also have a callable option that allows the issuing agency to return the invested funds at a preset interval. Callable and multi-step-ups are permitted, provided that:  the potential call dates are known at the time of purchase;  the interest rates at which they “step-up” are known at the time of purchase; and  the entire face value of the security is redeemed at the call date. Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 15 Packet Pg. 176 of 911 Fiscal Year 2023 14 11. Negotiable Certificates of Deposit (NCD): NCDs are large-dollar-amount, short-term certificate of deposit. Such certificates are issued by large banks and bought mainly by corporations and institutional investors. They are payable either to the bearer or to the order of the depositor, and, being negotiable, they enjoy an active secondary market, where they trade in round lots of $5 million. Although they can be issued in any denomination from $100,000 up, the typical amount is $1 million also called a Jumbo Certificate of Deposit. State law prohibits the investment of local agency funds in negotiable certificates of deposit issued by a state or federal credit union if a member of the legislative body of the local agency, or any person with investment decision making authority in the administrative, manager’s, budget, auditor-controller’s, or treasurer’s offices of the local agency also serves on the board of directors, other credit committee or the supervisory committee of the state or federal credit union issuing the negotiable certificate of deposit. 12. Medium-Term Corporate Notes: All corporate and depository institution debt securities with a maximum remaining maturity of five years or less, issued by corporations organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. According to California Government Code Section 53601, “Notes eligible for investment under this subdivision shall be rated in a rating category of “A” or its equivalent or better by a nationally recognized rating service. Purchase of medium-term notes shall include other instruments authorized by this section and shall not exceed 30 percent of the agency’s moneys that may be invested pursuant to this section.” 13. Supranational Securities: California Government Code Section53601 defines allowable supranational securities as United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, the International Finance Corporation, and Inter-American Development Bank. Supranationals are well capitalized and in most cases have strong credit support from contingent capital calls from their member countries. Section 53601 was amended effective January 1, 2015 to allow local agencies to invest in the senior debt obligations of these three supranational issuers which are eligible for purchase and resale within the United States. These entities were established with the purpose of ending poverty and raising the standard of living around the world through sustainable economic growth. a) The supranationals are international organization owned by member countries. These are:  International Bank for Reconstruction and Development (IBRD or World Bank), a member of the World Bank Group, provides direct loans and guarantees to sovereigns and government-backed projects  International Finance Corporation (IFC), a member of the World Bank Group, supports the creation and growth of private companies through direct lending and equity investment, attracting third party capital, and providing advisory services  Inter-American Development Bank (IADB), a member of the Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 16 Packet Pg. 177 of 911 Fiscal Year 2023 15 Inter-American Development Bank Group, provides loans, grants, and guarantees to sovereigns in Latin America and the Caribbean b) Additional characteristics shared by the IBRD, IFC, and IADB include:  Headquartered in Washington, D.C. with the United States as the largest shareholder of each organization  Rated AAA/Aaa by S&P and Moody’s Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 17 Packet Pg. 178 of 911 Fiscal Year 2023 16 APPENDIX B EXPLANATION OF PROHIBITED INVESTMENTS 1. Reverse Repurchase Agreements: A Reverse Repurchase Agreement (Reverse REPO) is a contractual agreement by the investor (e.g. local agency) to post a security it owns as collateral, and a bank or dealer temporarily exchanges cash for this collateral, for a specific period of time, at an agreed-upon interest rate. During the period of the agreement, the local agency may use this cash for any purpose. At maturity, the securities are repurchased from the bank or dealer, plus interest. California law contains a number of restrictions on the use of Reverse REPOS by local agencies. 2. Derivatives: A derivative is a financial instrument created from, or whose value depends on (is derived from), the value of one or more underlying assets or indices. The term "derivative" refers to instruments or features, such as collateralized mortgage obligations, forwards, futures, currency and interest rate swaps, options, caps and floors. Except for those callable and multi- step-up securities as described under Permitted Investments, derivatives are prohibited. Certain derivative products have characteristics which could include high price volatility, liquid markets, products that are not market-tested, products that are highly leveraged, products requiring a high degree of sophistication to manage, and products that are difficult to value. According to California law, a local agency shall not invest any funds in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages. Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 18 Packet Pg. 179 of 911 Fiscal Year 2023 17 APPENDIX C GLOSSARY OF INVESTMENT TERMS AGENCIES: Federal agency and instrumentality securities. ASKED: The price at which securities are offered. BID: The price offered by a buyer of securities (when one sells securities, one asks for a bid). See “Offer”. BROKER: A person or institution that conducts investment transactions on behalf of the buyer and seller of the investment and earns a commission on the transaction. COLLATERAL: Securities, evidence of deposit, or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR): The official annual report for the City of Palo Alto. It includes combined financial statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles and pronouncements set forth by the Governmental Accounting Standards Board (GASB). The ACFR also includes supporting schedules that are necessary to demonstrate compliance with finance-related legal and contractual provisions, extensive introductory material, and a detailed statistical section. COUPON: The annual rate of interest that a bond’s issuer promises to pay the bondholder on the bond’s face value or the certificate attached to a bond evidencing interest due on a payment date. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE: A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: (1) delivery versus payment (DVP); and (2) delivery versus receipt (DVR). DVP is delivery of securities with an exchange of money for the securities. DVR is delivery of securities with an exchange of a signed receipt for the securities. DISCOUNT: The difference between the acquisition cost of a security and its value at maturity when quoted at lower than face value. A security that sells below original offering price shortly after sale, is also is considered to be at a discount. DISCOUNT SECURITIES: Non-interest-bearing money market instruments that are issued a discount and that are redeemed at maturity for full face value (e.g., U.S. Treasury Bills). Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 19 Packet Pg. 180 of 911 Fiscal Year 2023 18 DIVERSIFICATION: Dividing investment funds among a variety of securities that offer independent returns. FEDERAL AGRICULTURAL MORTGAGE CORPORATION (“FAMC” or “FMAC”): A federal agency established in 1988 to provide a secondary market for farm mortgage loans. Informally called Farmer Mac. FEDERAL CREDIT AGENCIES: Agencies of the Federal Government that were established to supply credit to various classes of institutions and individuals (e.g., S&Ls, small business firms, students, farmers, farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION (“FDIC”): A federal agency that insures all types of deposits received at an insured bank, including deposits in a checking account, negotiable order of withdrawal (NOW) account, savings account, money market deposit account (MMDA) or time deposit such as a certificate of deposit (CD). FDIC insurance covers depositors' accounts at each insured bank, dollar-for-dollar, including principal and any accrued interest through the date of the insured bank's closing, up to the insurance limit. The FDIC does not insure money invested in stocks, bonds, mutual funds, life insurance policies, annuities or municipal securities, even if these investments are purchased at an insured bank. The FDIC does not insure U.S. Treasury bills, bonds or notes, but these investments are backed by the full faith and credit of the United States government. The standard maximum deposit insurance amount is described as the “SMDIA” in FDIC regulations. The SMDIA is $250,000 per depositor, per insured bank. FEDERAL FUNDS RATE: The rate of interest at which Fed funds are traded. This rate is currently pegged by the Federal Reserve through open-market operations. FEDERAL HOME LOAN BANKS (“FHLB”): Government-sponsored wholesale banks (currently 12 regional banks) which lend funds and provide correspondent banking services to member commercial banks, thrift institutions, credit unions, and insurance companies. The mission of the FHLBs is to liquefy the housing-related assets of its members, who must purchase stock in their District Bank. FEDERAL NATIONAL MORTGAGE ASSOCIATION (“FNMA”): FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation’s purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA’s securities are also highly liquid and are widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. FEDERAL OPEN MARKET COMMITTEE (“FOMC”): The FOMC consists of seven Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 20 Packet Pg. 181 of 911 Fiscal Year 2023 19 members of the Federal Reserve Board and five of the 12 Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regarding purchases and sales of government securities in the open market, as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C., 12 regional banks, and about 5,700 commercial banks that are members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (“GNMA” or “Ginnie Mae”): Securities that influence the volume of bank credit that is guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. A security holder is protected by the full faith and credit of the U.S. Government. Ginnie Mae securities are backed by the FHA, VA, or FMHM mortgages. The term “pass-throughs” is often used to describe Ginnie Maes. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow, and reasonable amount can be done at those quotes. LOCAL GOVERNMENT AGENCY: A local government agency is any city, county, city and county, district, or other local governmental body or corporation, including the California State Universities (CSU) and University of California (UC) systems, K-12 schools and community colleges empowered to expend public funds. LOCAL GOVERNMENT INVESTMENT FUND (“LAIF”): Monies from local governmental units may be remitted to the California State Treasurer for deposit in this special fund for the purpose of investment. MARKET VALUE: The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase-reverse repurchase agreements that establish each party’s rights in the transactions. A master agreement will often specify, among other things, the right of the buyer (lender) to liquidate the underlying securities in the event of default by the seller (borrower). MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET: The market in which short-term debt instruments (e.g., bills, commercial paper, and bankers’ acceptances) are issued and traded. OFFER: The price asked by a seller of securities (when one buys securities, one asks for an offer). See “Asked” and “Bid”. Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 21 Packet Pg. 182 of 911 Fiscal Year 2023 20 OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank, as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations are the Federal Reserve’s most important and most flexible monetary policy tool. PORTFOLIO: A collection of securities that an investor holds. PRIMARY DEALER: A group of government securities dealers that submit daily reports of market activity and positions, and monthly financial statements to the Federal Reserve Bank of New York, and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) -- registered securities broker-dealers, banks, and a few unregulated firms. PRUDENT INVESTOR RULE: An investment standard cited in the California Government Code Section 53600 et seq. Under this standard, all governing bodies of local agencies or persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. QUALIFIED PUBLIC DEPOSITORIES: A financial institution that: (1) does not claim exemption from the payment of any sales, compensating use, or ad valorem taxes under the laws of this state; (2) has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability; and (3) has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES AND EXCHANGE COMMISSION: An agency created by Congress to administer securities legislation for the purpose of protecting investors in securities transactions. STRUCTURED NOTES: Notes issued by instrumentalities (e.g., FHLB, FNMA, SLMA) and by corporations, that have imbedded options (e.g., call features, step-up coupons, floating rate coupons, derivative-based returns) in their debt structure. The market performance of structured notes is affected by fluctuating interest rates; the volatility of imbedded options; and shifts in the yield curve. Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 22 Packet Pg. 183 of 911 Fiscal Year 2023 21 SUPRANATIONALS: International institutions that provide development financing, advisory services and/or financial services to their member countries to achieve the overall goal of improving living standards through sustainable economic growth. The California Government Code Section 53601 allows local agencies to purchase the United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), or Inter- American Development Bank (IADB). TIME CERTIFICATE OF DEPOSIT: A non-negotiable certificate of deposit, which cannot be sold prior to maturity. TREASURY BILLS: A non-interest-bearing discount security that is issued by the U.S. Treasury to finance the national debt. Most T-bills are issued to mature in three months, six months, or one year. TREASURY BONDS: Long-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of more than 10 years. TREASURY NOTES: Medium-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of two to 10 years. YIELD: The rate of annual income return on an investment, expressed as a percentage. YIELD-TO-CALL (YTC): The rate of return an investor earns from a bond assuming the bond is redeemed (called) prior to its nominal maturity date. YIELD-TO-MATURITY: The current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity. ZERO-COUPON SECURITIES: Security that is issued at a discount and makes no periodic interest payments. The rate of return consists of a gradual accretion of the principal of the security and is payable at par upon maturity. Item 12 Attachment A - City of Palo Alto Investment Policy - Fiscal Year 2024 Item 12: Staff Report Pg. 23 Packet Pg. 184 of 911 1 6 4 9 CITY COUNCIL Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: June 19, 2023 Report #: 2301-0903 TITLE City Council Appointment of the Castilleja Neighborhood Committee in Accordance With Condition Number 33 Contained in Record of Land Use Action 2022-22 Authorizing Redevelopment of Private School at 1310 Bryant Street (Castilleja School). Environmental Assessment: Exempt from CEQA Pursuant to CEQA Guidelines Section 15061(b)(3). RECOMMENDATION Staff recommends Council appoint Bruce McLeod, Rob Levitsky and Hank Sousa to serve two- year terms on the Council-appointed Neighborhood Committee. BACKGROUND/DISCUSSION Last year the City Council approved several discretionary entitlements and a legislative change to the municipal code to enable the redevelopment and increase enrollment for Castilleja School located at the subject address. The project received significant public input and in its deliberation, the City Council added a condition of approval requiring the formation of a Council-appointed neighborhood committee to ensure opportunities for continued dialogue between the school and area residents concerned about neighborhood impacts. Condition number 33 on the record of land use action1 sets for the requirement for a three- person committee that has the following advisory responsibilities: I. Review transportation demand management reports and performance; II. Review impacts related to special events and make recommendation to the planning and development services director on future increases to the number of special events; III. Review noise complaints and other impacts on the neighboring community related to these conditions of approval; 1 June 6, 2022 Record of Land Use Action: www.cityofpaloalto.org/files/f65eb77d-4d17-41a6-8158- 44f1df3b649f/Casti-Signed-ROLUA-and-Exhibit.pdf Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 1 Packet Pg. 185 of 911 1 6 4 9 IV. Coordinate with the school in organizing twice annual community meetings; and, V. Provide recommendations to the planning and development services director on whether the school has met conditions that would trigger changes in student enrollment. The committee is charged with convening within 30 days of submission of a transportation demand management report and as needed to review other issues within its purview. Any recommendation from the committee shall be submitted to the planning and development director within 14 days of the meeting. As a Council-created committee, all meetings are subject to the Brown Act which requires that meetings be noticed 72 hours in advance, prohibits committee members from deliberating over items under their purview outside of noticed meetings, and prohibits or to receive information serially from other committee members. The condition requiring a neighborhood committee does not stipulate a process for selecting committee members and staff has not engaged in a formal process to solicit names for recommendation. Forty-two residents living in the neighborhood that includes Castilleja School have, on their own accord, advanced three names of individuals they would like the Council to consider for appointment. Additionally, a fourth individual, Barbara Hazlett, submitted an email to staff requesting consideration. Both of these records are included with this report for the Council’s consideration for appointment. The three names advanced by some of the area residents and recommended by staff for appointment include: •Bruce McLeod •Rob Levitsky •Hank Sousa As Castilleja has submitted building permit plans for redevelopment and given the amount of time that has lapsed since this project was approved, staff recommends Council appoint the three individuals supported by the area residents in the attached document. In two years when this process is repeated, staff will formalize the effort and prepare a brief application process; responses will be forwarded to Council for its consideration. If Council supports the recommended candidates, staff will follow up with a request for each committee member to sign an affidavit asserting they live within 500 feet of Castilleja School and understand the individual and committee requirements under the Brown Act. While this action is being considered on the City Council’s consent calendar, if any three Councilmembers would like to discuss or deliberate on the neighborhood committee Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 2 Packet Pg. 186 of 911 1 6 4 9 assignments or process, this item could be pulled from consent and scheduled for a future public hearing. As a separate effort in August, staff will schedule a public hearing for the City Council to review the final form version of the transportation demand management plan previously approved by the City Council for the school on June 6, 2022. If the subject item is pulled from consent, staff would recommend scheduling both matters at the same time. RESOURCE IMPACT The appointment of these individuals to the Castilleja Neighborhood Committee does not result in a resource impact. Future more formal processes as well as support of the Brown Act body may require staffing resources. STAKEHOLDER ENGAGEMENT Staff has not engaged in a formal process to solicit names for recommendation or selection to this committee. Forty-two residents living in the neighborhood that includes Castilleja School, on their own accord, advanced three names of individuals they would like the Council to consider for appointment. Staff will formalize the effort and prepare a brief application process; responses will be forwarded to Council for its consideration. ENVIRONMENTAL REVIEW Exempt from CEQA Pursuant to CEQA Guidelines Section 15061(b)(3) ATTACHMENTS Attachment A: Neighborhood Committee Candidates APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 3 Packet Pg. 187 of 911 Item 13 Attachment A - Neighborhood Committee Candidates Item 13: Staff Report Pg. 4 Packet Pg. 188 of 911 Item 13 Attachment A - Neighborhood Committee Candidates Item 13: Staff Report Pg. 5 Packet Pg. 189 of 911 Item 13 Attachment A - Neighborhood Committee Candidates Item 13: Staff Report Pg. 6 Packet Pg. 190 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: June 19, 2023 Report #:2305-1580 TITLE Authorization for the City Manager to Negotiate and Execute a Memorandum of Understanding and Funding Agreement with Peninsula Corridor Joint Powers Board (Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank of the San Francisquito Creek RECOMMENDATION Staff recommends that Council authorize the City Manager or their designee to negotiate and execute a Memorandum of Understanding and Funding Agreement with the Peninsula Corridor Joint Powers Board and the City of Menlo Park for Emergency Repairs to the North Bank of the San Francisquito Creek BACKGROUND/ANALYSIS In early January 2023, after a week of heavy rain, Peninsula Corridor Joint Powers Board/Caltrain (Caltrain) engineering staff inspected the Caltrain bridge over San Francisquito Creek (SFC) at Alma Street and discovered that storms had eroded the soil on the north creek bank supporting the foundation of the rail bridge, threatening the integrity of the structure. On March 29, 2023, Caltrain declared an emergency, and the Caltrain board authorized staff to enter into contracts for the purpose of conducting emergency repairs. In early April 2023, staff from Public Works Engineering Services Division identified erosion on the same northern creek bank supporting the Alma Street Bicycle Bridge, which was constructed and is maintained by the City of Palo Alto, with the City of Menlo Park responsible for 50 percent of maintenance costs under a 1996 maintenance agreement.1. On April 7, 2023, the City’s on-call structural engineering consultant, Biggs Cardosa & Associates, conducted a structural assessment of the Alma Street Bicycle Bridge. The consultant recommended that the north creek bank be restored in conjunction with Caltrain’s bank restoration to prevent further erosion that could threaten the stability of the Alma Street Bicycle Bridge. Additionally, the high creek flows undermined a storm drain outfall owned and maintained by the City of Menlo Park. 1 1996 Alma Street Bicycle Bridge Maintenance Agreement https://www.cityofpaloalto.org/files/assets/public/public-works/engineering-services/cip-contracts/alma-street- bicycle-bridge-maintenance-agreement.pdf Item 14 Item 14 Staff Report Item 14: Staff Report Pg. 1 Packet Pg. 191 of 911 The two bridges, outfall and repair area can be seen in Attachment A. Staff from Caltrain, Menlo Park, Palo Alto and San Francisquito Creek Joint Powers Authority began meeting biweekly in April to discuss the needed repair work on the SFC north embankment. Caltrain has identified a consultant, AECOM, to complete the design and a contractor, Walsh Construction, to do the construction. Caltrain has also started discussions with the permitting agencies to obtain the necessary permits to do the work in the creek during the limited construction access of April 15 to October 15. The City recommends authorizing the City Manager to negotiate and sign a Memorandum of Understanding and Funding Agreement (MOU) to partner with Caltrain and the City of Menlo Park in completing these necessary creek embankment repairs prior to next winter. If Council does not provide authorization for the City Manager to negotiate and sign the MOU agreement, the City would not be able to design, permit, and make repairs on its own to the creek embankment prior to the upcoming winter season. Additionally, if the MOU is not authorized, staff would need to monitor erosion and potentially close the bridge until the City was able to develop its own repair project. The scope of work for the project includes the implementation of measures for the stabilization of the north bank of the SFC in the immediate vicinity of the SFC Caltrain Bridge, the City of Menlo Park drain outfall and Alma Street Bicycle Bridge. Required activities are anticipated to include, but are not limited to: ▪Topographic survey and site observations ▪Hydraulic modeling and engineering design ▪Acquisition of permits and environmental clearances ▪Preparation and negotiation of construction contract(s) ▪Material procurement and construction services ▪Construction management and inspection ▪Safety oversight and operational safety support ▪Project management and project controls ▪Administration for consultant and construction contracts ▪Public outreach and community engagement ▪Project construction per plans and specifications ▪Post construction environmental compliance, monitoring and mitigation Additionally, the MOU will include requirements for a no-cost encroachment permit for construction access via the south side of SFC. Special consideration and care will be taken for protection/restoration of El Palo Alto Park and for protection of the El Palo Alto tree. Caltrain’s project team is reviewing project drawings and lessons learned from the 2013 Bonde Weir Fish Passage Improvement project to limit construction impacts. Specific construction impacts will be better known as the design progresses this summer. The most recent update to Caltrain’s Item 14 Item 14 Staff Report Item 14: Staff Report Pg. 2 Packet Pg. 192 of 911 Finance Committee on May 22, 2023 can be found here.2 Councilmember Burt currently serves on the Caltrain Board. FISCAL/RESOURCE IMPACT Plans are currently at 30% design and the estimated project cost is $5.3 million. Staff will negotiate with Caltrain and Menlo Park to determine what portion of the repair cost would be due to the Alma Street Bicycle Bridge area. Staff will return to Council after the summer break to update the progress on the MOU and bring a budget amendment for the City’s funding share as there is no funding programmed for this activity at this time. This funding is anticipated to come from the capital Infrastructure Reserve. STAKEHOLDER ENGAGEMENT Staff from Caltrain, San Francisquito Creek Joint Powers Authority and the cities of Menlo Park and Palo Alto are meeting biweekly to discuss updates on MOU agreement language, design, permitting, and construction logistics. Staff from all three partnering agencies will also provide outreach during construction to all users of the facilities as well as nearby residents on any construction impacts. ENVIRONMENTAL REVIEW The level of environmental review required under CEQA will be determined by Caltrain, as the lead agency, as part of project design and permitting. ATTACHMENTS Attachment A: Project Location/Preliminary Design Concept APPROVED BY: Brad Eggleston, Director Public Works/City Engineer 2 Joint Powers Board Finance Committee Meeting 5/22/2023 Item #9 San Francisquito North Bank Restoration Presentation https://www.caltrain.com/meetings/2023/05/jpb-finance-committee Item 14 Item 14 Staff Report Item 14: Staff Report Pg. 3 Packet Pg. 193 of 911 Preliminary Design Concept 8 Drain Outfall North The scope of the project will address erosion around: •Caltrain rail bridge •Menlo Park drain outfall •Alma Street Bicycle Bridge Boulder Toe Revetment Vegetated Boulder Revetment Wrapped Lift Erosion Control Boulder Toe Trench Assets to be Protected Item 14 Attachment A - SFC Project Location & Preliminary Design Concept Item 14: Staff Report Pg. 4 Packet Pg. 194 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: June 19, 2023 Report #:2305-1411 TITLE Adopt an Ordinance Amending Palo Alto Municipal Code (PAMC) Section 9.10.060 (f) and Adoption of a Resolution to Modify the Administrative Penalty Schedule Related to Enforcement of the City’s Gas-Powered Leaf Blower Ban. Environmental Analysis: Not Subject to CEQA Review in Accordance with CEQA Guidelines 15061(b)(3). RECOMMENDATION Staff recommends that Council adopt: (1) Ordinance (Attachment A) amending PAMC Title 9, Public Peace, Morals, and Safety, Chapter 9.10, Noise, Section 9.10.060 to expand the scope of the gas-powered leaf blower ban in residential neighborhoods; and (2) Resolution (Attachment B) increasing the administrative penalty related to gas-powered leaf blower use in residential neighborhoods. BACKGROUND On February 6, 2023, the City Council held a public hearing to consider staff recommended changes to the noise ordinance and penalty schedule to improve the efficiency enforcing the City’s gas-powered leaf blower ban in residential districts. The recommended amendments remove a five-day citation “waiting period” that impedes the City’s ability to cite violators in the act of using prohibited equipment. Another recommended amendment would clarify and assert the City’s ability to assign property owner liability for knowingly hiring or allowing a person to use a gas-powered leaf blower on their residentially zoned property. Staff also recommended adjustments to the City’s penalty schedule related to gas-powered leaf blower use to be aligned with other municipal code violations. The staff report and City Council action minutes from Item 15 Item 15 Staff Report Item 15: Staff Report Pg. 1 Packet Pg. 195 of 911 February 6, 2023 is available online and contains additional information in support the City’s interest to advance these changes.1 The City Council approved the staff recommendations, which is the reason this ordinance is being presented to the City Council on the consent calendar. In addition to the recommended actions, the City Council also referred to the Policy and Services Committee a discussion considering a ban on gas-powered leaf blowers citywide and to evaluate the replacement of internal combustion engines for other gardening equipment for residences and commercial properties. This work has been assigned to the planning and development services department and is included on its workplan but is currently un-resourced as staff resources are currently focused on other Council priorities. The City Council also directed staff to incorporate the concept of ‘constructive knowledge’ of the property owner or property manager. A property owner or property manager may not know that a gas-powered leaf blower is being used on their property, such as those residents who work outside of the home. Without actual or constructive knowledge that a gas-powered leaf blower is being used, an owner/property manager may not have an opportunity to cure an issue and such citations could be overturned if challenged. The remedy is to provide some form of notice to the property owner or property manager with a timeline or opportunity to cure the violation before being cited. Existing practice already includes a notice provision that the City’s code enforcement staff does and would continue to use any time a violation is alleged (reported by a community member or witnessed by City staff) or when seeking compliance from the individual or entity hiring the gardener. Accordingly, no further amendment to the existing municipal code is required as this approach is consistent with existing rules and practices. Another concern the City Council considered with regard to enforcement was related to equity and a concern that a gardener being cited for violating the ordinance may be experience the impact of a fee penalty more acutely than a property owner or property management company. To help mitigate this concern, staff presented a robust public engagement strategy intended to inform gardeners and homeowners of the existing and anticipated rule changes. This strategy has been previously endorsed by the City Council on February 6, 2023 and is summarized below in the community engagement section of this report. Additionally, code enforcement officers have long exercised discretion in the field and generally employ a strategy to gain voluntary compliance over aggressive citation and penalty fee collection. An overriding principle is to first inform and then seek compliance. When needed, follow up with a time to cure and fee penalty thereafter if needed. Notwithstanding this strategy, leaf blower enforcement consumes a significant amount of city resources and the Council authorized the hiring of a full-time employee to address community concerns regarding noise and air pollution associated with gas-powered leaf blowers. After 1 February 6, 2023 staff report: https://cityofpaloalto.primegov.com/meeting/attachment/585.pdf?name=Item%207%20Staff%20Report and action minutes: https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=1068&compileOutputType=1#page=3. Item 15 Item 15 Staff Report Item 15: Staff Report Pg. 2 Packet Pg. 196 of 911 several months of implementing its community engagement strategy, code enforcement officers will seek to obtain increased compliance to ameliorate these community concerns, including issuing citations upon observation and citing homeowners and property managers after sending notice in accordance with the Council’s interest to ensure ‘constructive knowledge’. DISCUSSION The attached ordinance and resolution implement the Council’s direction to improve the effectiveness of the City’s enforcement of gas-powered leaf blowers in residential districts. This is accomplished in several ways. First, it removes a 5-day waiting period enabling a code enforcement officer to cite when a violation of the ban is witnessed. Second, the ordinance clarifies the code enforcement officer can cite the operator, the property owner or other entity responsible for hiring the gardener using a gas-powered leaf blower in violation of the ban. At the officer’s discretion one or all parties could be cited. Third, the penalty fee would be increased with the expectation that a higher penalty may encourage a transition to electric or battery- powered leaf blowers. Fourth, staff will continue its outreach and engagement strategy to communicate local requirements, highlight actions gardeners and property owners can take to support compliance and potential implications for non-compliance. Lastly, staff will ensure proper notice is given to provide constructive knowledge and continue an effort that promotes voluntary compliance over aggressive citation and penalty fee issuance. STAKEHOLDER ENGAGEMENT Council endorsed the outreach strategy outlined in the February 6, 2023 report; actions taken to date include: •Created a website2 that provides information on the City’s rules, information on converting to electric or battery-powered equipment, flyers to download and share with neighbors, and links to other resources; •Communicated via the City’s social media platforms information about the City’s ban; •Attended Palo Alto neighborhood meetings to share information about the City’s ordinance and enforcement efforts; •Hosted a community meeting in April 2022 at the Mitchell Park Library; and, •Informed gardeners and property owners of local requirements when a violation is observed with the goal to encourage voluntary compliance. Additional efforts underway or to be implemented in the next several months: •Continue with efforts and strategies listed above; •Enhance the City’s gas-powered leaf blower ban website with additional information, including links where gardeners and homeowners can access available financial assistance to convert to electric or battery blowers; 2 City of Palo Alto Gas-Powered Leaf Blower Ban Website: https://www.cityofpaloalto.org/Departments/Planning- Development-Services/Code-Enforcement/Leaf-Blower-Ordinance Item 15 Item 15 Staff Report Item 15: Staff Report Pg. 3 Packet Pg. 197 of 911 •Prepare door hangers for placement when violations are observed or alleged; •Explore options for including information in utility meter billing (paper and online); and, •Reach out to gardener organizations and individual businesses as able to inform them of new changes and compliance expectations. The subject ordinance, if approved by Council would have a second reading in August and would become effective in September. Adoption of the ordinance provides an opportunity for staff to reinforce public awareness of the new provisions through various City Communications channels including social media, printed flyers, and other initiatives described in this report. Staff anticipates using public engagement and education for the balance of the year to encourage voluntary compliance; notices of violation may be issued to establish constructive knowledge. Beginning in 2024, staff anticipates issuing citations, when warranted. FISCAL/RESOURCE IMPACT Enforcement and outreach related to the gas-powered leaf blower ban can be accomplished with existing department resources and staffing. The City may collect slightly more penalty fee collection in 2024. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA) Guidelines, Section 15061(b)(3), the recommendation in this report does not qualify as a project because it can be seen with certainty that the proposed ordinance and amendment to the penalty fee schedule would not have an adverse impact on the environment. ATTACHMENTS Attachment A: Ordinance Amending PAMC Section 9.10.060(f) Related to Leaf Blowers Attachment B: Resolution Amending the Administrative Penalty Schedule Increasing Penalties Related to PAMC 9.10.060(f)), Leaf Blower Violations APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 15 Item 15 Staff Report Item 15: Staff Report Pg. 4 Packet Pg. 198 of 911 *NOT YET APPROVED* 1 271_20230602_ts24 Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Palo Alto Municipal Code Section 9.10.060(f) to Expand Liability for the Use of Gas-Powered Leaf Blowers and to Exempt Enforcement from Mandatory Warning Provisions. The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and declarations. The City Council finds and declares as follows: 1. The use of gas-powered leaf blowers generates noise and air pollution, which can have a negative effect on the quality-of-life for residents. 2. In 2021, the State of California approved AB 1346, which is intended to regulate “Small off-road engines (SORE), which are used primarily in lawn and garden equipment.” The California Legislature found that the NOx and ROG emissions from SORE “were higher than emissions from light-duty passenger cars” in 2020. The Legislature also found that “zero- emission equivalents to all SORE equipment” already exist. 3. The City currently prohibits the operation of leaf blowers powered by internal combustion engines in residential zones. 4. The City Council now desires to prohibit property owners (and those in control of real property) from allowing gardeners or any other person to use a gas-powered leaf blower on their property. 5. The City Council also desires to allow staff to issue citations without offering a five- business day warning period as generally required by PAMC section 1.12.030(c). 6. The City Council also desires to conform the code to current City practices by deleting a requirement for commercial leaf blower operators to be certificated by the Chief of Police. SECTION 2. Section 9.10.060(f) of the Palo Alto Municipal Code is hereby amended as follows (new text underlined, deleted text in strikethrough): (f) Leaf Blowers. (1) No person shall operate any leaf blower which does not bear an affixed manufacturer's label indicating the model number of the leaf blower and designating a noise level not in excess of sixty-five dBA when measured from a distance of fifty feet utilizing American National Standard Institute methodology. Any leaf blower which bears such a manufacturer's label shall be presumed to comply with any noise level limit of this chapter provided that it is operated with all mufflers and full extension tubes supplied by the manufacturer for that leaf blower. No person shall operate any leaf blower without attachment of all mufflers and full extension tubes supplied by the manufacturer for that leaf blower. (2) No person shall operate; cause operation of; or allow operation of a leaf blower on property a person owns, has control of, or is a tenant of; (including but not limited to a leaf blower Item 15 Attachment A - Ordinance Amending PAMC 9.10.060(f) Related to Leaf Blowers Item 15: Staff Report Pg. 5 Packet Pg. 199 of 911 *NOT YET APPROVED* 2 271_20230602_ts24 operator, leaf blower operator’s employer, property owner, property manager, tenant, or other person authorizing or employing the use of a leaf blower on their property) as follows: (A) No person shall operate any leaf blowers within Within a residential zone (as defined by Title 18) except during the following hours: nine a.m. and five p.m. Monday through Friday and ten a.m. and four p.m. Saturday. ; (B) No person shall operate any leaf blower wWithin any non-residential zone except during the following hours: eight a.m. and six p.m. Monday through Friday, and ten a.m. to four p.m. Saturday. ; (C) No person shall operate any leaf blowers oOn Sundays and holidays. ; or (D) Within any residential zone, at any time, No person shall operate, aany leaf blower powered by an internal combustion engine or any leaf blower powered by a generator powered by an internal combustion engine within any residential zone after July 1, 2005. Commercial operators of leaf blowers are prohibited from operating any leaf blower within the city if they do not prominently display a certificate approved by the Chief of Police verifying that the operator has been trained to operate leaf blowers according to standards adopted by the Chief of Police. (3) In addition to all authorizations and restrictions otherwise provided in this chapter, public streets, sidewalks, and parking lots in business districts and at the Municipal Golf Course and all city parks may be cleaned between 4:00 a.m. and 8:00 a.m. using leaf blowers which bear an affixed manufacturer's label indicating the model number of the leaf blower and designating a noise level not in excess of sixty-five dBA when measured from a distance of fifty feet utilizing American National Standard Institute methodology. (4) Enforcement of this subsection (f) is exempt from PAMC section 1.12.030(c). SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Council finds that adoption of this Ordinance is not a “project” within the meaning of CEQA. // // // // Item 15 Attachment A - Ordinance Amending PAMC 9.10.060(f) Related to Leaf Blowers Item 15: Staff Report Pg. 6 Packet Pg. 200 of 911 *NOT YET APPROVED* 3 271_20230602_ts24 SECTION 5. This Ordinance shall be effective on the thirty-first date after the date of its adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ Assistant City Attorney City Manager ____________________________ Director of Planning and Development Services Item 15 Attachment A - Ordinance Amending PAMC 9.10.060(f) Related to Leaf Blowers Item 15: Staff Report Pg. 7 Packet Pg. 201 of 911 *NOT YET APPROVED* 1 272_20230602_ts24 Resolution No. ______ Resolution of the Council of the City of Palo Alto Amending and Restating the Administrative Penalty Schedule and Civil Penalty Schedules for Certain Violations of the Palo Alto Municipal Code and the California Vehicle Code Established by Resolution No. 10031 The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. Administrative Penalties. The administrative penalty schedule for violations of the Palo Alto Municipal Code established by Resolution No. 10031 is hereby amended and restated to read as follows: Standard penalty unless otherwise indicated below. $50 Second violation within 36 month period 150% of listed penalty (unless otherwise specified) Third & subsequent violations within 36 month period. 200% of listed penalty (unless otherwise specified) Delinquency penalty. 10% per month, simple interest, on delinquent amount 4.04.020 License or permit required. 300 4.04.100 Display of license or permit. 300 4.10.045 License fees for pushcart vendors. 300 4.10.050 Regulations for solicitors and peddlers. 350 4.10.055 Identification cards for solicitors. 250 4.10.057 Regulations for pushcart vendors. 300 4.10.070 License required - circus etc. 300 4.10.120 Arcade prohibited. 250 4.10.200 Pawn brokers prohibited. 250 4.10.230 Daily report of second hand dealers. 250 4.10.240 Maintaining reports - second hand dealers. 250 4.10.260 Failure to make report - second hand dealers. 250 4.10.270 Second hand goods held for inspection. 250 4.18.040 Unlawful dog or cat kennel. 250 4.30.010 Soliciting without a permit. 250 4.30.100 Conduct of solicitations. 250 4.32.020 Soliciting without a permit. 250 4.32.060 Investigation of records of solicitor. 250 4.32.090 Acts required during solicitation. 250 4.32.100 Restriction of solicitation. 250 4.32.110 Hours of solicitation. 250 4.34.020 Permit required - closing out sale. 250 4.39.030 Audible alarms. 250 4.39.040 Limitation on automatic dialing devices. 250 4.39.060 Registration of alarm. 250 4.39.110 Alarm violations. 100 Item 15 Attachment B - Resolution Amending the Administrative Penalty Schedule Increasing Penalties related to PAMC 9.10.060(f)), Leaf Blower Violations Item 15: Staff Report Pg. 8 Packet Pg. 202 of 911 *NOT YET APPROVED* 2 272_20230602_ts24 4.42.020 Certificate of public convenience. 1000 4.42.085 Controlled substance and alcohol testing. 500 4.42.090 Taxi owners permit. 5000 4.42.100 Taxi drivers permit expired. 250 4.42.130(b) Taxi drivers permit not displayed. 250 4.42.190 Taximeters. 500 4.42.200 Taxi cab operating regulations. 250 4.42.210(a) Interference with inspection. 500 4.42.210(b) Inspection of vehicles. 500 4.42.220 Operating regulations. 500 4.42.230 Maintenance of vehicles. 500 4.51.030 License required - bingo. 250 4.51.050 Minors restricted - bingo. 50 4.51.080 Staffing and operations - bingo. 250 4.51.110 Physical presence required - bingo. 250 4.52.020 License required - billiards and bowling. 1000 4.52.040 Minors restricted - billiards and bowling. 250 4.52.060 Offensive conduct - billiards and bowling. 250 4.52.070 Interference w/emerg. Access -billiards/bowling. 250 4.54.030(a) Permit required - massage establishment. 1000 4.54.060(a) Permit required - massage tech. 250 4.54.110 Massage establishment facilities. 250 4.54.130 Business name - massage. 250 4.55.030 License required - adult entertainment. 1000 4.56.030 License required - hot tub and sauna. 1000 4.56.060 Employee permit required - hot tub and sauna. 250 4.56.100 Hot tub/sauna establishment and operations. 250 4.56.120 Business name - hot tub and sauna. 250 4.56.150 Display of permit - hot tub and sauna. 250 4.56.200 Employment of persons < 18 - hot tub and sauna. 250 4.57.020 Permit required - firearms sales. 1000 4.57.095 Firearms dealers – business and security. 500 4.58.020 Minors restricted - narcotics paraphernalia shop. 750 4.58.030 Regulations - narcotics paraphernalia shop. 750 4.59.010 Pet shop requirements. 250 4.59.020 Pet shop sanitation. 250 4.59.030 Pet shop food. 250 4.59.040 Pet shop notification. 250 4.59.050 Pet shop - sale of dangerous or wild animals. 250 4.59.070 Dead animals. 250 4.59.080 Permit required - pet shop and kennel. 250 4.59.090 Permit required - grooming shop. 250 4.59.095 Sales of kittens and puppies. 250 4.59.100 Sales of raccoons. 250 4.59.105 Sales of rabbits, chicks, ducklings. 250 4.60.030 Business registration required 250 4.60.060 Business registry application required 250 4.60.120(a) Business registry fee delinquency 50% of registry fee if 1-30 days late 100% of fee or 31+ days late 5.12.010 Permit required - refreshment stand. 250 5.20.030 Discarding solid waste. 250 5.20.040 Accumulation of garbage. 250 5.20.050 Unauthorized bins, boxes, containers-first violation. 500 Item 15 Attachment B - Resolution Amending the Administrative Penalty Schedule Increasing Penalties related to PAMC 9.10.060(f)), Leaf Blower Violations Item 15: Staff Report Pg. 9 Packet Pg. 203 of 911 *NOT YET APPROVED* 3 272_20230602_ts24 Second and subsequent violations. 1000 5.20.080 Number of containers required. 250 5.20.090 Collection of recyclable materials. 250 for Commercial Premises 50 for Residential Premises 5.20.100 Collection of compostable materials. 250 for Commercial Premises 50 for Residential Premises 5.20.105 Contamination of containers. 250 for Commercial Premises 50 for Residential Premises 5.20.108 Multifamily properties/Commercial premises. 250 5.20.109 Requirements for special events. 100 5.20.111 Self-haul in violation of code 100 5.20.120 Improper container condition. 250 5.20.130 Maintenance of bins and boxes- first violation. 250 Second and subsequent violations. 500 5.20.160 Spillage or leakage of solid waste. 250 5.20.180 No accumulation of solid waste. 250 5.20.190 No burning, burial, or dumping of solid waste. 250 5.20.200 Hazardous waste. 500 5.20.220 Scavenging prohibited. 100 5.30.020 Polystyrene & Non-Recyclable Plastic. 500 5.30.025(a)-(d) Limitation on use of Disposable Foodware items 100 and other Disposable products. 5.30.025(e) Prohibition of third-party vendors providing utensils 350 or condiments unless requested by customer. 5.35.020 Bags at retail establishments. 500 5.35.030 Bags at supermarkets. 500 6.08.020(b) Interference with animal control officer. 250 6.16.010 No dog license. 50 6.16.080 Number of dogs allowed. 100 6.16.100 Leash Law. 100 6.20.010 Animals at large. 100 6.20.020 Animals on unenclosed premises. 100 6.20.030 Animals kept in enclosures. 100 6.20.035 Tying animals to bicycle racks or trees. 100 6.20.040 Nuisance on sidewalk. 100 6.20.045 Animal waste removal - first offense. 25 6.20.045 Animal waste removal - second offense. 50 6.20.045 Animal waste removal - third offense. 125 6.20.055 Animals in vehicles. 250 6.20.060 Bees close to property line. 100 6.20.080 Permit required - livestock. 100 6.20.090 Maintaining birds, goats, pigs and rabbits. 100 6.20.110 Number of cats kept. 100 6.20.120 Permit required - breeding animals. 100 6.20.130 Cat or dog in heat. 100 6.20.140 Barking dogs. 100 6.20.150 Vaccination required - animals. 100 6.20.160 Sanitary enclosures. 100 6.20.170 Slaughter of animals. 500 6.24.020 Permit required - construction of stable. 250 6.24.050 Maintenance of stable. 250 6.28.040 Possession of dangerous or wild animals. 500 6.32.010 Keeping diseased animals. 500 Item 15 Attachment B - Resolution Amending the Administrative Penalty Schedule Increasing Penalties related to PAMC 9.10.060(f)), Leaf Blower Violations Item 15: Staff Report Pg. 10 Packet Pg. 204 of 911 *NOT YET APPROVED* 4 272_20230602_ts24 6.32.020 Confining animals with rabies. 500 6.32.050 Dead animals in public. 500 6.36.010 Sales of certain animals. 250 8.04.020 Permit required - tree work. 500 8.04.080 Interference with tree enforcement. 500 8.08.010 Weeds as public nuisance. 250 8.10.050 Protected trees. 500 8.10.070 Care of protected trees. 500 8.10.080(b) Development conditions. 500 9.04.010 Open container in business district. 100 9.04.020 Open container in City parking lot. 100 9.04.030 Open container near liquor store. 100 9.04.040 Social host. First violation 250 Second violation 500 Third & subsequent violation 1000 9.07.020 Safe Storage of Firearms 1000 9.08.010 Discharge of firearms/fireworks. 1000 9.09.010(a) Urinating/defecating on street or public place. 250 9.09.010(b) Igniting or maintaining outdoor fire. 250 9.10.030 Residential property noise limits. 100 9.10.040 Commercial property noise limits. 100 9.10.050 Public property noise limits. 100 9.10.060(b) Construction noise signs. 250 9.10.060(c) Construction noise. 250 9.10.060(d) Construction equipment noise. 100 9.10.060(e) Residential power equipment noise. 100 9.10.060(f) Leaf blower noise- first violation. 100250 Leaf blower noise- second violation 150500 Leaf blower noise- third and subsequent violation 3001000 9.10.060(g) Street sweeping noise. 100 9.10.060(h) Refuse collection noise. 100 9.10.060(i) Safety device noise. 100 9.10.060(k) Public parking lot cleaning noise. 100 9.10.060(l) Business district street cleaning noise. 100 9.12.010 Loudspeakers. 150 9.14.020 Smoking prohibited - enclosed places. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations in 1 year: $500) 9.14.025 Smoking prohibited – unenclosed areas. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations in 1 year: $500) 9.14.030 Smoking prohibited - city cars. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations in 1 year: $500) 9.14.035 Smoking prohibited – public parks and public events 250 (2nd violation in 1 year: $300; 3rd and subsequent violations in 1 year: $500) 9.14.040 Smoking prohibited - child care facilities. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations in 1 year: $500) 9.14.050 Smoking prohibited – commercial areas and public events. 250 (2nd violation in 1 year: $300; 3rd and subsequent violations Item 15 Attachment B - Resolution Amending the Administrative Penalty Schedule Increasing Penalties related to PAMC 9.10.060(f)), Leaf Blower Violations Item 15: Staff Report Pg. 11 Packet Pg. 205 of 911 *NOT YET APPROVED* 5 272_20230602_ts24 in 1 year: $500) 9.14.080 Location of tobacco vending machines. 1000 9.14.090 Display of tobacco products. 500 9.14.100 Failure to post “No Smoking” signs. 50 9.22.010 Impersonating public officials. 500 9.26.020 False representation as police officer. 250 9.28.010 Hotel guest register required. 250 9.28.020 Use of false name by hotel guest. 50 9.40.020 Landing aircraft at other than airport. 1000 9.44.010 Solicitation prohibited - public parking lot. 100 9.48.010 Displaying goods on sidewalk. 50 9.48.025 Sitting or lying on University Avenue sidewalks. 100 9.48.030 Operation of sidewalk elevator. 500 9.48.040 Throwing rubbish on streets. 250 9.48.050 Obligation to clean sidewalk. 200 9.50.010 Graffiti prohibited on public property. 500 9.56.030 Abatement of public nuisance. 500 unless otherwise specified 9.56.030(a)(5) Thirty-five foot site triangle. 200 9.56.030(a)(8) Foliage/branch obstruction. 200 9.56.030(a)(10) Excessive planting strip vegetation height. 150 9.60.030 Blocking entrances to City Hall. 500 9.60.050 Placing signs or climbing on City Hall. 500 9.60.060 Bicycles and skateboards at City Hall. 50 9.60.070 Alcoholic beverages prohibited - City Hall. 100 9.64.010 Overnight use of community facilities 250 9.74.030 Discrimination in housing. 250 9.78.020 Mosquito breeding places. 500 9.79.100 News rack violations. 100 12.08.010 Permit required - public right of way. 500 12.08.100 Removal of City Engineer monuments. 500 12.12.010 Building on public easement without or in violation 1000 of encroachment permit 12.12.020 Failure to obtain or violation of commercial 500 sidewalk encroachment permit 12.16.030 Overhead wires in underground districts. 500 12.16.090 Property owner responsibility. 500 12.20.010 Utility rules and regulations 500 unless otherwise specified 12.20.010 Emergency water conservation regulations 100 (2nd violation in 1 year: $250; (Reso. Nos. 9509, 9460, 9449) 3rd and subsequent violations in 1 year: $500) 12.20.020 Providing false information to City Utilities. 500 12.32.010 Water use regulation. 100 15.04.070 Violations of Uniform Fire Code. 500 unless otherwise specified 16.04.050 Violations of California Building Code as amended. 500 unless otherwise specified 16.05.040 Violations of California Mechanical Code as amended500 16.06.050 Violations of California Residential Code as amended.500 16.08.040 Violations of California Plumbing Code as amended. 500 16.09.260 Violations of Sewer Use Ordinance 1000 16.10.020 Construction of private sewer system. 750 16.10.050 Permit required - private sewage system. 500 16.14.040 Violations of California Green Building 500 Standards Code as amended 16.14.260 Failure to meet diversion requirements. $150 per ton of waste not Item 15 Attachment B - Resolution Amending the Administrative Penalty Schedule Increasing Penalties related to PAMC 9.10.060(f)), Leaf Blower Violations Item 15: Staff Report Pg. 12 Packet Pg. 206 of 911 *NOT YET APPROVED* 6 272_20230602_ts24 diverted or $3000, whichever is greater 16.14.370 Failure to meet diversion requirements. $150 per ton of waste not diverted or $3000, whichever is greater 16.16.060 Violations of California Electrical Code as amended. 500 16.17.020 Violations of California Energy Code as amended. 500 16.18.020 Violations of International Pool and Spa Code as 500 amended 16.20.020 Design review required - signs. 500 16.20.090 Prohibited signs. 250 16.20.100 Prohibited locations - signs. 250 16.20.110 Fuel price signs required. 250 16.20.210 Non-compliance with sign ordinance. 250 16.20.230 Abandoned signs. 250 16.20.250 Parking of advertising vehicles. 250 16.24.080 Fence violation. 250 16.28.060 Permit required - excavation and grading. 500 16.28.330 Protection of adjacent property. 500 16.28.340 Deposits of earth, rock, etc. 500 16.32.010 Permit required - moving a building. 250 16.36.050 Curb painting without a permit. 100 16.36.060 House numbering required. 100 16.38.020 Certificate of occupancy – community housing. 500 16.40.040 Dangerous and substandard buildings. 500 16.40.090 Non-compliance with order of building official. 500 16.40.180 Interference with repair or demolition work. 500 16.42.090 Failure to submit seismic report. 250 16.45.070 Failure to pay fee - Stanford Research Park. 250 16.46.060 Failure to pay fee - San Antonio - West Bayshore. 250 16.47.050 Failure to pay housing impact fee. 250 16.49.050 Exterior alteration of downtown historic structures 10000 or a significant structure outside the downtown without or in violation of permit 16.49.060 Demolition of a significant downtown building 10000 without or in violation of permit 16.49.070 Demolition of a contributing downtown structure 10000 or significant structure outside the downtown without or in violation of permit 16.49.080 Maintenance of downtown historic structure. 10000 16.49.090 Demolition of downtown historic structure. 10000 16.52.070 Construction - flood hazards. 500 16.59.090 Failure to pay fee- Citywide Transportation Impact. 250 16.60.090 Failure to pay fee- Charleston/Arastradero. 250 16.62.020 Maintenance of expired building permit 200 for 31st through 60th day 400 for 61st through 120th day 800 for 121st day and thereafter 17.04.020 Violations of hazardous materials storage. 500, unless otherwise specified 17.04.030 Specific obligation - hazardous materials. 500 17.10.010 General obligation - underground storage tanks. 750 unless otherwise specified 17.10.040 Permit required - underground storage. 500 17.10.140 Financial responsibility - underground storage. 500 17.10.150 Monitoring underground storage tanks. 1000 Item 15 Attachment B - Resolution Amending the Administrative Penalty Schedule Increasing Penalties related to PAMC 9.10.060(f)), Leaf Blower Violations Item 15: Staff Report Pg. 13 Packet Pg. 207 of 911 *NOT YET APPROVED* 7 272_20230602_ts24 17.10.170 Unlawful abandonment - underground storage tanks.1000 17.12.010 Permit required - hazardous materials storage. 750 17.12.020 New hazardous materials storage facilities. 750 17.12.060 Hazardous materials storage facilities. 750 17.16.010 Hazardous materials management plan. 250 17.20.010 Hazardous materials inventory statement. 250 17.24.010 Hazardous materials discharge report. 750 17.32.010 Permit required - storage of hazardous materials. 1000 18.01.080 Violation of zoning laws. 500 18.16.060(d)Hotel stay in excess of 30 days. 200 18.38.020 Planned Community zoning (unless otherwise 500 specified in PC ordinance) 2500 beginning the 181st day following notice of violation Violations of Ordinance 5069 shall be subject to the penalties listed above except that the penalty for violations of Sections 4(b)(1), (2), (6), and (7) of Ordinance 5069 shall not be subject to the penalties above or to the escalators for second, third and subsequent violations, but shall be $2157 per day, for each and every day that a grocery store is not in operation within College Terrace Centre in accordance with the terms of Ordinance 5069. (The City Council intends to adjust this penalty amount periodically in future updates to this administrative penalty schedule to account for periodic increases in the Consumer Price Index for All Urban Consumers.) In calculating the penalties for such violations, the City will allow for a grace period for any daily violations that do not exceed six (6) cumulative months in any five (5) year period. However, this grace period was previously applied to violations from 1/10/18 through 7/10/18, so there is no entitlement to any further grace period prior to 1/10/23. 18.42.060(a)Incompatibility of home occupations. 200 18.42.060(b) Employees of home occupation. 200 18.42.060(c) On site advertising of home occupation. 200 18.42.060(d) Floor area of home occupation. 200 18.42.060(e) Traffic related to home occupation. 200 18.42.060(f) Home occupation as nuisance. 200 18.42.060(g) Outdoor storage related to home occupation. 200 Item 15 Attachment B - Resolution Amending the Administrative Penalty Schedule Increasing Penalties related to PAMC 9.10.060(f)), Leaf Blower Violations Item 15: Staff Report Pg. 14 Packet Pg. 208 of 911 *NOT YET APPROVED* 8 272_20230602_ts24 18.42.070 Servicing vehicles in residential zone. 250 18.52.050 Transportation demand management conditions 1000 4000 beginning the 181st day following notice of violation 18.84.200 Temporary uses. 250 22.04.030 Compliance with park regulations. 46 for violation of regulation R1-6 requiring payment of Foothills Park entry fee; 250 for violation of all other Park & Open Space Regulations. 22.04.040 Failure to obtain use permit. 300 22.04.150(b) Entry at unapproved location - Foothills Park 50 22.04.150(c) Person in park after hours - Foothills Park. 250 22.04.150(d) Speed limit 20MPH - Foothills Park. 250 22.04.150(e) Vehicles in Foothills Park after hours. 100 22.04.150(f) Skateboards and motorcycles - Foothills Park. 250 22.04.150(g) Smoking on trails - Foothills Park. 1000 22.04.150(h) Fires in Foothills Park. 1000 22.04.150(i) Use of trails - Foothills Park. 100 22.04.150(l) Unleashed dog - Foothills Park. 250 22.04.155 Restraint of dogs in City parks. 250 22.04.160 Permit required - sales in parks. 250 22.04.170 Violation of park use permit. 250 22.04.180 Sound in parks. 250 22.04.190 Unauthorized golf and other games in parks. 250 22.04.200 Unauthorized models and kites in parks. 100 22.04.210 Parking in parks. 100 22.04.215 Launch and takeout from ramp or dock. 250 22.04.220 Bicycle not permitted on trails. 250 22.04.230 Dumping in park. 1000 22.04.240 Interference with park use permit. 250 22.04.250 Park regulations . 250 unless otherwise specified 22.04.260 Discharge of weapons in park. 500 22.04.270 Removal of flora or fauna. 500 22.04.280 Removal of turf or soil. 500 22.04.290(a) Damaging, defacing, etc., property. 1000 22.04.290(b) Marking, writing or printing on property. 1000 22.04.290(c) Attaching sign, etc., without permit. 500 22.04.290(d) Entering, etc., structure after posted hours. 250 22.04.290(e) Bringing portable tables without a permit. 100 22.04.300 Unlawful fire in city park. 1000 22.04.310 Enid Pearson Arastradero, Esther Park closure. 250 22.04.315 Byxbee Park and Baylands closed. 250 22.04.320 Parks closed. 250 22.04.321(a)Skateboarding in park after hours. 50 22.04.322 Trespass at Rinconada Park pool. 50 22.04.330 Alcohol in Cogswell Park. 250 22.04.331 Alcohol in Lytton Plaza. 250 22.04.332 Alcohol in Johnson Park. 250 22.04.333 Alcohol in Boulware Park. 250 22.04.334 Alcohol in Scott St. Minipark. 250 22.04.335 Alcohol in Greer Park. 250 Item 15 Attachment B - Resolution Amending the Administrative Penalty Schedule Increasing Penalties related to PAMC 9.10.060(f)), Leaf Blower Violations Item 15: Staff Report Pg. 15 Packet Pg. 209 of 911 *NOT YET APPROVED* 9 272_20230602_ts24 22.04.336(a)Alcohol in Rinconada Park. 250 22.04.337 Alcohol in Mitchell Park. 250 22.04.338 Alcohol in Robles Park. 250 22.04.339 Alcohol in Hopkins Park. 250 22.04.340 Vehicles in park. 250 22.04.341 Alcohol in El Palo Alto Park. 250 22.04.342 Alcohol in Heritage Park. 250 22.04.343 Alcohol in Pardee Park. 250 22.04.350 Consumption of alcoholic beverage in vehicles. 250 22.04.360 Open container in park - alcoholic beverage. 250 22.04.370 Reckless driving in park. 250 22.04.380 Unlawful riding and towing in parks. 250 22.04.390 Duck pond. 100 SECTION 2. Municipal Code Civil Penalties. The civil penalty schedule for violations of the Palo Alto Municipal Code established by Resolution No. 10031 is hereby restated to read as follows*: Standard penalty unless otherwise indicated below. $46 10.36.020 No parking in parkways. 46 10.36.030(a)Storage on the street (72 hours). 86 10.36.040(a)(1)Vehicle for sale on street. 46 10.36.040(a)(2)Repairing vehicle on street. 46 10.36.050 Not w/in 18” of left curb--One-way street. 46 10.36.090 Removal of chalk markings. 111 10.40.020(a)(1)Parking violation – red curb. 46 10.40.020(a)(4)Parking violation – green curb. 46 10.40.020(a)(5)Parking violation – blue curb. 308 10.40.020(b)Parking in violation of sign (except blue curb). 46 10.40.020(b)Unlawful disabled parking - signs (blue curb). 308 10.40.040(b)Commercial vehicle double parking. 46 10.40.050 Unlawful parking in yellow loading zone. 46 10.40.060 Unlawful parking in passenger loading zone. 46 10.40.070 Unlawful alley parking. 46 10.40.100(g)Parking in a bus zone. 46 10.44.010(b)Overtime parking (limited time zone). 41 10.44.010(c)Additional violation of time limited or no 44 parking zones. 10.44.020(a)Oversized vehicle parking in residential or 46 public facilities zones 2am-6am. 10.44.040(b)Not in space marking. 46 10.44.050(b)Parking violation--temporary sign. 46 10.44.060 Dealers--parking for sale or repair. 46 10.44.070(b)Parking in violation of posted sign. 46 10.44.080 Vehicle obstruction of roadway or lot. 46 10.44.090 Unattended vehicle, engine running. 111 10.45.110 Parking in on-street valet parking space. 46 10.46.110 Overtime residential parking permit (CT) 53 10.48.030 Truck route violation. 211 10.50.100(a)Violation of posted RPP permit sign 53 10.60.070(c)Permit not properly displayed. 41 10.60.070(d)Overtime permit parking in City lot. 41 10.60.070(e)Parking without permit in permit area. 46 Item 15 Attachment B - Resolution Amending the Administrative Penalty Schedule Increasing Penalties related to PAMC 9.10.060(f)), Leaf Blower Violations Item 15: Staff Report Pg. 16 Packet Pg. 210 of 911 *NOT YET APPROVED* 10 272_20230602_ts24 22.04.150(e)In Foothills Park after hours. 111 22.04.210 Parking in parks. 111 Late payment penalty. 35 Collection cost penalty. 35% of listed penalty *All penalties include state-mandated assessments pursuant to Gov’t. Code 76000, S.B 1407(2008), and Government Code 76000.3 (S.B. 857, 2008) totaling $12.50. SECTION 3. Vehicle Code Civil Penalties. The civil penalty schedule for violations of the California Vehicle Code established by Resolution No. 10031 is hereby restated to read as follows*: 5200 No front license plate. $78 (If corrected within 31 days) 10 (state mandated) 5204(a) No registration tabs on license plate. 78 (If corrected within 31 days) 10 (state mandated) 21113(a) Parking on public grounds. 46 22500(a) Parking in an intersection. 46 22500(b) Parking in a crosswalk. 46 22500(d) Parking w/in 15 feet--fire station driveway. 46 22500(e) Blocking driveway. 46 22500(f) Parking on sidewalk. 46 22500(g) Parking or stopping--excavation site, etc. 46 22500(h) Double parking on roadway. 46 22500(i) Parking in a bus zone. 261 22500(l) Parking in front of accessible curb. 303 22500.1 Parking in a fire lane (public or private). 46 22502 Right hand wheels not w/in 18” of rt. curb. 46 22505(b) Parking on state highway violation. 46 22507.8(a-b)Unlawful parking in handicapped space. 303 22507.8(c)(1-2)Straddling Lines/Cross hatched, disabled. 303 22511.57(a) Parking/standing of vehicle in disabled parking $753 stall or space with invalid license/placard. 22511.57(b) Unauthorized use of license/placard for vehicle $753 parking/standing in disabled parking stall or space. 22511.57(c) Parking/standing of vehicle in disabled parking $753 stall or space with counterfeit, forged, altered or mutilated license/placard for disabled. 22514 Parking within 15 feet of fire hydrant. 46 22515 Unattended vehicle, engine running. 111 22516 Person locked in vehicle. 111 22521 Parking within 7 1/2 feet of railroad tracks. 46 22522 Parking near sidewalk access ramp. 303 22523(a) Unlawful abandonment of vehicle on highway. 131 22523(b) Abandoned vehicle--public/private property. 131 22526 Entering/blocking intersection – anti-gridlock. 131 22951 No street, alley parking--patron vehicles. 46 *All penalties include state-mandated assessments pursuant to Gov’t. Code 76000, S.B 1407(2008), and Government Code 76000.3 (S.B. 857, 2008) totaling $12.50. Item 15 Attachment B - Resolution Amending the Administrative Penalty Schedule Increasing Penalties related to PAMC 9.10.060(f)), Leaf Blower Violations Item 15: Staff Report Pg. 17 Packet Pg. 211 of 911 *NOT YET APPROVED* 11 272_20230602_ts24 SECTION 4. The Council finds that the adoption of this resolution does not meet the definition of a project under Public Resources Code Section 21065, thus, no environmental assessment under the California Environmental Quality Act is required. SECTION 5. This resolution shall become effective on the date that Ordinance No. _____ becomes effective. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: APPROVED: ________________________________ ________________________________ City Clerk Mayor ________________________________ ________________________________ Assistant City Attorney City Manager ________________________________ Director of Planning and Development Services Item 15 Attachment B - Resolution Amending the Administrative Penalty Schedule Increasing Penalties related to PAMC 9.10.060(f)), Leaf Blower Violations Item 15: Staff Report Pg. 18 Packet Pg. 212 of 911 1 7 2 2 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: June 19, 2023 Report #:2302-0978 TITLE Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for Radio Communication Systems for the New Public Safety Building Capital Project (PE-15001), including $399,007 for Basic Services and $39,900 for Additional Services; CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772) RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or their designee to execute the attached purchase order with Aviat Networks (Attachment A) for radio communication systems for the New Public Safety Building Capital project (PE-15001) in an amount not to exceed $438,907, including $399,007 for basic services and $39,900 for additional services. EXECUTIVE SUMMARY The City of Palo Alto participates in a regional public safety radio system that operates as a large “ring” of microwave communications links between key emergency and essential service nodes such as police stations, Sheriff’s offices, city halls, hospitals, fire stations, and other sites. In addition to the ring that provides redundancy, some locations are spurs with only one connection. Approval of the recommended purchase order will allow the new Public Safety Building (PSB) to become a node on the ring, like the Palo Alto Civic Center is currently, as included in the PSB’s design and project budget. The PSB will also become a spur when the node is completed, enhancing resiliency. Attachment B shows the current and proposed topology of the ring. The microwave ring is also critical to the Tri-Cities Consortium of Palo Alto, Mountain View, and Los Altos to increase redundancy and cooperation between the emergency dispatch operations of the three cities. BACKGROUND In 2010, Council approved an agreement to form the Silicon Valley Regional Interoperability Authority (SVRIA), a Joint Powers Authority (JPA) in partnership with other Santa Clara County municipalities and agencies to enhance and coordinate regional public safety data and radio Item 16 Item 16 Staff Report Item 16: Staff Report Pg. 1 Packet Pg. 213 of 911 1 7 2 2 communications systems. SVRIA services the Santa Clara Operation Area, which includes the County of Santa Clara, its fifteen cities and towns, and all special districts. Council approved a subsequent Memorandum of Understanding (MOU) on June 22, 2015 to participate in a multi- year project with other SVRIA members to fund and construct the Silicon Valley Radio Communications (SVRCS) System.1 The SVRCS is a NAPCO Project 25 (P25) compliant trunked digital communications system using the 700 MHz frequency spectrum currently in use in Santa Clara County. Radio sites and dispatch centers are connected through the SVRIA E-COMM digital microwave system (ECOMM) that provides connectivity to remote government radio sites. ECOMM is a dedicated microwave network connecting all Public Safety Answering Points (9-1-1 centers), selected key public safety facilities, and numerous radio sites throughout Santa Clara County. ECOMM provides secure data and voice communications to public safety agencies and other cooperating agencies for mission critical applications. The City Managers of Palo Alto, Mountain View, and Los Altos (Tri-Cities Consortium) agreed to a broad initiative of sharing public safety technology as a method to conserve resources, improve response times, increase the resiliency and redundancy of these critical systems, as well as to enhance interoperable communications between the three cities’ first responders. This initiative was part of a Council Study Session on May 2, 20112 that presented the "virtual consolidation" concept and the framework to share public safety technology and communication systems. ANALYSIS In March 2019, Aviat Networks (Aviat) conducted a Microwave Path Survey Report to verify site locations and to determine antenna sizes and centerlines to establish a microwave communications system for the Public Safety Building (PSB), to make the PSB a new site on the SVRIA ECOMM system. Aviat is the exclusive maintenance contractor for the ECOMM system as authorized by SVRIA3. The microwave path survey included the following services: •Identifying geographical location of sites and antenna, waveguide length, and tower requirements. •Verifying path clearance objectives for each of the paths from existing or new tower locations. 1 City Council, June 22, 2015; Agenda Item #6, SR #5811, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2015/id-5811.pdf 2 City Council, May 2, 2011; Agenda Item #2, SR #1587, https://www.cityofpaloalto.org/files/assets/public/from-archive/agendas-minutes-reports/reports/city-manager- reports-cmrs/2011/1587-tri-cities-virtual-cad.pdf 3SVRIA, May 11, 2023; Agenda Item #8a, https://svria.org/wp-content/uploads/2023/05/SVRIA-Board-of-Directors-Agenda-05-11-2023-REVISED-05-08- 2023.pdf Item 16 Item 16 Staff Report Item 16: Staff Report Pg. 2 Packet Pg. 214 of 911 1 7 2 2 •Documenting obstruction, critical points, and reflection points in each of the paths. •Verifying tower coordinates and site elevations. •Establishing coordinates and height requirements for new towers, as needed for governmental agency registration and licenses filed by SVRIA. •Confirming antenna centerlines and waveguide length requirements. •Cataloging antennas on the existing structures noting any space limitations in the survey report. Adding the PSB as an independent site on the ECOMM ring enables the PSB to maintain access to the ECOMM network in the event a large-scale critical event disrupts connectivity to the Palo Alto Civic Center. Ringed networks can be built up to provide scalability and redundancy in the network. The radio sites are independent from each other. As a result, a fault or failure at one site will not affect another site. When reviewing interoperability in terms of voice radio system issues, the interoperability of data is of equal importance. Public safety agencies have become more reliant on various systems that capture and store information. Systems such as Computer Aided Dispatch (CAD), Records Management Systems (RMS), and intelligence databases all contain information that is of value to multiple agencies. The Tri-Cities Consortium developed the virtually consolidated public safety network using the ECOMM digital microwave system as the primary connection between the cities. Due to the critical applications being accessed over the ECOMM network, it was determined to have the new PSB connected to the ECOMM network as an independent site as part of the SVRCS network. Aviat is part of the National Association of State Procurement Officials (NASPO) ValuePoint cooperative purchasing program which facilitates public procurement solicitations and agreements. Cooperative purchasing programs allow government organizations to use a single solicitation with the best value and favorable terms and conditions. Per Palo Alto Municipal code 2.30.360(j), the City is able to take advantage of the Aviat contract since it was competitively solicited and publicly awarded through NASPO ValuePoint. Project Timeline While the project is progressing well toward completion, it should be noted that construction contract substantial completion dates often change during construction as change orders can authorize additional time for various issues that affect the critical path. Staff and the construction manager believe that the PSB is on track for substantial completion in October. Following substantial completion, the “move-in” phase of the project will continue for several months for the installation and testing of several highly-technical and critical Public Safety, IT, Security, and Communications systems that will be housed at the new PSB. Activities that will be performed during the move-in phase, include: Item 16 Item 16 Staff Report Item 16: Staff Report Pg. 3 Packet Pg. 215 of 911 1 7 2 2 •Completion of punchlist items – minor issues identified during inspections to be corrected prior to final completion of the construction contract, but that do not necessarily impact substantial completion •Furniture Delivery and Installation •Installation, Testing and Commissioning of City / Police IT systems •Commissioning of 9-1-1 telephone and dispatch systems •Commissioning of Radio Systems and Equipment •Phased relocation of Dispatch Operations •Integration of the new facility with neighboring agencies, including Silicon Valley Regional Interoperability Authority (SVRIA) •Phased re-location of Police, Fire Department Administration and Office of Emergency Services staff from the existing facility to the new PSB site Some move-in items will occur during construction. The move-in phase is expected to continue for 3-4 months after substantial construction completion, with the new facility projected to become fully-operational in early 2024. FISCAL/RESOURCE IMPACT Adding the PSB in the ECOMM loop between the Palo Alto Civic Center to Mountain View will cost $399,007 including a one-time management discount and freight charges. A contingency amount of $39,900 will be included in the contract for unforeseen conditions during installation, for a total contract amount of $438,907. Funding for this purchase order is available in the Fiscal Year 2023 budget for the New Public Safety Building Capital Project (PE- 15001) and is included in the overall PSB budget approved by Council when the construction contract was approved in early 2021. STAKEHOLDER ENGAGEMENT City staff coordinated with the Tri-Cities Consortium and SVRIA in development of the network changes and specifications. ENVIRONMENTAL REVIEW An Environmental Impact Report for the PSB and the New California Avenue Area Parking Garage was prepared and was certified by Council on June 11, 2018, by adoption of Resolution No. 97724. ATTACHMENTS Attachment A: Aviat Purchase Order Attachment B: ECCOM Topology APPROVED BY: Brad Eggleston, Director Public Works/City Engineer 4 Resolution 9772, 2018: https://www.cityofpaloalto.org/files/assets/public/city-clerk/resolutions/reso-9772.pdf?t=40475.53 Item 16 Item 16 Staff Report Item 16: Staff Report Pg. 4 Packet Pg. 216 of 911 This is a NASPO ValuePoint contract under a Cooperative Purchasing Master Agreement No. 00318. State of California Participating Addendum Number 7-22-70-49-02. Contract term of NASPO Master Agreement expires on December 31, 2026. This is for the Public Safety Building. Additional products may be purchased per the staff report approved by City Council. This PO is governed by California law without regard to conflict of law principles. This PO by reference incorporates the following contract documents into this PO by reference as though fully set forth herein: 1. Cooperative Purchasing Master Agreement No. 00318 By and Between State of Washington Department of Enterprise Services and Aviat U.S., Inc. 2. State of California Participating Addendum Number 7-22-70-49-02 Public Safety Communications Products, Services and Solutions Washington NASPO ValuePoint Master Agreement Number 00318 0010 PD Aviat Networks + FREIGHT 399,007 USD 1.00 399,007.00 This is a NASPO ValuePoint contract under a Cooperative Purchasing Vendor Address AVIAT US INC 200 PARKER DR SUITE C100A AUSTIN TX 78728 Tel: 408-343-4614 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Police Dept. - Technical Serv. Div. City of Palo Alto 275 Forest Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C23187020 Date 05/31/2023 Vendor No.108087 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by Cty Term 05/31/2023 - 05/30/2024 Buyer/Phone Ann Marie Romero / 650-329-2460 Email No email DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 1 of 5 Item 16 Attachment A - Aviat Puchase Order Item 16: Staff Report Pg. 5 Packet Pg. 217 of 911 Master Agreement No. 00318. State of California Participating Addendum Number 7-22-70-49-02. Contract term of NASPO Master Agreement expires on December 31, 2026. This is for the Public Safety Building. Additional products may be purchased per the staff report approved by City Council. This PO is governed by California law without regard to conflict of law principles. This PO by reference incorporates the following contract documents into this PO by reference as though fully set forth herein: 1. Cooperative Purchasing Master Agreement No. 00318 By and Between State of Washington Department of Enterprise Services and Aviat U.S., Inc. 2. State of California Participating Addendum Number 7-22-70-49-02 Public Safety Communications Products, Services and Solutions Washington NASPO ValuePoint Master Agreement Number 00318 Line item #10 includes the following parts + freight ($6,705) EV206-AMC-AM0-410000 Price $21,193.04 QTY 2 ET106-B-0-300 Price $2,433.20 QTY 2 179-530135-AA121 Price $260.48 QTY 1 179-530135-BB221 Price $765.60 QTY 1 179-530135-DD421 Price $999.68 QTY 0 024-905026-080 Price $227.04 QTY 0 024-905034-080 Price $216.48 QTY 0 Vendor Address AVIAT US INC 200 PARKER DR SUITE C100A AUSTIN TX 78728 Tel: 408-343-4614 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Police Dept. - Technical Serv. Div. City of Palo Alto 275 Forest Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C23187020 Date 05/31/2023 Vendor No.108087 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by Cty Term 05/31/2023 - 05/30/2024 Buyer/Phone Ann Marie Romero / 650-329-2460 Email No email DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 2 of 5 Item 16 Attachment A - Aviat Puchase Order Item 16: Staff Report Pg. 6 Packet Pg. 218 of 911 179-530089-001 Price $141.68 QTY 1 179-530089-002 Price $282.48 QTY 0 WGKIT-3000 Price $939.84 QTY 4 ET106-B-0-300 Price $2,433.20 QTY 0 EXX-000-205 Price $1,666.72 QTY 2 EXS-002 Price $385.44 QTY 2 179-530064-001 Price $17.60 QTY 2 EXR-700-002 Price $1,085.04 QTY 8 EXA-001 Price $339.68 QTY 2 037-579315-001 Price $69.52 QTY 2 EXD-181-002 Price $1,223.20 QTY 2 037-579461-500 Price $40.48 QTY 0 083-845434-001 Price $100.32 QTY 4 LOC-CAT6SH-3M-BLB Price $19.36 QTY 2 614-196502-001 Price $35.20 QTY 2 EXD-400-002 Price $1,769.68 QTY 2 EXD-161-002 Price $1,769.68 QTY 2 037-579408-015 Price $259.60 QTY 1 EXD-156-001 Price $3,473.36 QTY 2 037-579131-001 Price $7.92 QTY 2 EZE-08004 Price $2,718.32 QTY 2 EZE-08006 Price $5,437.52 QTY 0 EZF-62 Price $3,263.04 QTY 2 EZF-64 Price $6,525.20 QTY 0 EZF-03 Price $1,497.76 QTY 2 EZF-04 Price $998.80 QTY 2 EZF-06 Price $374.88 QTY 2 EZF-14 Price $3,263.04 QTY 1 Vendor Address AVIAT US INC 200 PARKER DR SUITE C100A AUSTIN TX 78728 Tel: 408-343-4614 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Police Dept. - Technical Serv. Div. City of Palo Alto 275 Forest Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C23187020 Date 05/31/2023 Vendor No.108087 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by Cty Term 05/31/2023 - 05/30/2024 Buyer/Phone Ann Marie Romero / 650-329-2460 Email No email DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 3 of 5 Item 16 Attachment A - Aviat Puchase Order Item 16: Staff Report Pg. 7 Packet Pg. 219 of 911 EZG-14 Price $3,263.04 QTY 0 ERM-ACC-401 Price $8,156.72 QTY 1 179-530307-0113 Price $1,859.44 QTY 1 179-530118-001 Price $523.60 QTY 2 COMMON-BREAKERS-RACK Price $79.20 QTY 3 179-530119-001 Price $795.52 QTY 1 SIPQ-CABLES Price $2.64 QTY 3 CNI-SA-2115-0001 Price $1,437.92 QTY 1 RAV-61510D-622-DB-01 Price $4,834.72 QTY 1 037-579453-002 Price $87.12 QTY 2 037-579459-001 Price $406.56 QTY 2 PWR-000047-TRM Price $23.76 QTY 0 AND-VHLP3-11W-6WH Price $1,041.04 QTY 2 LS(TBD) Price $2,529.12 QTY 1 179-530147-001 Price $2,076.80 QTY 2 AND-EW90-F Price $7.04 QTY 665 AND-EW90INSTALL-KIT Price $1,078.00 QTY 5 179-530526-001 Price $459.36 QTY 5 018-510090-003 Price $52.80 QTY 55 VLT-BAEW903 Price $47.52 QTY 5 DHY-000001-ETI Price $6,597.36 QTY 1 AND-L6600D-4 Price $717.20 QTY 1 CDT-H48120V4U36AR Price $6,534.88 QTY 1 CDT-H48TEL12-230FN-19 Price $5,961.12 QTY 1 CDT-100.7675.4850 Price $836.88 QTY 1 LS(ASR-903_SVRIA) Price $51,594.40 QTY 1 LS(ASA) Price $12,194.16 QTY 1 LS(A900-RSP2A-128) Price $12,142.24 QTY 1 Vendor Address AVIAT US INC 200 PARKER DR SUITE C100A AUSTIN TX 78728 Tel: 408-343-4614 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Police Dept. - Technical Serv. Div. City of Palo Alto 275 Forest Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C23187020 Date 05/31/2023 Vendor No.108087 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by Cty Term 05/31/2023 - 05/30/2024 Buyer/Phone Ann Marie Romero / 650-329-2460 Email No email DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 4 of 5 Item 16 Attachment A - Aviat Puchase Order Item 16: Staff Report Pg. 8 Packet Pg. 220 of 911 LS(ASA) Price $12,194.16 QTY 1 SVCS-IN-SIPQ-RI Price $2,174.48 QTY 1 SVCS-IN-SIPQ-VI Price $1,897.28 QTY 1 SVCS-IN-SIPQ-AT Price $1,883.20 QTY 0 SVCS-IN-SS-CEDFT Price $3,126.64 QTY 1 SVCS-PN-EN-SE Price $14,542.88 QTY 1 SVCS-PN-EN-XE Price $0.00 QTY 0 SVCS-PN-EN-XE Price $5,099.60 QTY 1 SVCS-IN-PM-PM Price $10,347.92 QTY 1 SVCS-IN-PM-PM Price $12,121.12 QTY 1 SVCS-IN-IC-FI Price $54,187.76 QTY 1 SVCS-IN-IC-FI Price $28,186.40 QTY 1 SVCS-IN-IC-FI Price $4,162.16 QTY 1 0020 PD CONTINGENCY 50,659 USD 1.00 50,659.00 ------------------------- Sub-Total 449,666.00 Vendor Address AVIAT US INC 200 PARKER DR SUITE C100A AUSTIN TX 78728 Tel: 408-343-4614 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Police Dept. - Technical Serv. Div. City of Palo Alto 275 Forest Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer Total 449,666.00 THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C23187020 Date 05/31/2023 Vendor No.108087 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by Cty Term 05/31/2023 - 05/30/2024 Buyer/Phone Ann Marie Romero / 650-329-2460 Email No email DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 5 of 5 Item 16 Attachment A - Aviat Puchase Order Item 16: Staff Report Pg. 9 Packet Pg. 221 of 911 County Fire Dept Headquarters (2) Rinconda Water Treatment Plant (2) Cupertino City Center (2) Seven Springs Fire Station (3)Black Mountain (3) Dahl Reservoir (3) Mt. Chual (3) Redwood Fire Station (3)Redwood Cell (2) Westside Sheriff’s Office (2) Sierra Azule (3) Santa Clara Fire Station 29 (3) Palo Alto Public Works Facility (3) Fire Station 28 Fire Station 25 Lakeview Court El Toro Pacheco Peak Good Samaritan Hospital Sunnyvale Corporate Yard Sunnyvale Police Dept Woodland Gilroy Target Gilroy Reservoir D San Jose Airport San Jose Police Dept South Substation Doyle Road City Hall Annex Stickney Valley Medical Center Los Gatos Police Department Carol Drive Data Center Frazier Peak Rodoni Holiday Lake Sheriff Campbell Tower Morgan Hill Police Department California Dept of Forestry Carol Drive (County Communication Center) (2) Milpitas Police Station Mountain View Police Department Los Altos Police Department El Camino Hospital Palo Alto Civic Center Cadwallader Reservoir Coyote Peak Eagle Rock County Admin San Jose Communication Center San Jose City Hall (2) E-COMM Phase III Project. 211284Figure 2Existing ECOMM Network and Proposed Phase III Expansions SOURCE: Harris Stratex Category (2) Category (3) Add New Antennas at Existing Facilites Erect New Towers/Shelters and Install New Antennas at Existing Facilites The following categories, indicated in parentheses (), signify the level of development proposed at each communication network site Existing ECOMM Network Segments Proposed Phase III Sites and Segments Possible Future Phase III Sites and Segments (communication links unknown) Item 16 Attachment B - ECOMM Topology Item 16: Staff Report Pg. 10 Packet Pg. 222 of 911 City Council Staff Report From: City Attorney Report Type: CONSENT CALENDAR Lead Department: City Attorney Meeting Date: June 19, 2023 Report #:2305-1401 TITLE Authorization to Execute Amendment to Legal Services Contract S22184420 with Rankin Stock Heaberlin Oneal to Increase Amount by $150,000 for Total Not-to-Exceed Amount of $225,000 and to Extend the Term to January 2025; CEQA Status – Not a Project RECOMMENDATION Authorize the City Attorney or designee to amend the agreement for litigation defense services with the law firm of Rankin Stock Heaberlin Oneal (Contract S22184420) to increase the contract amount by $150,000 for a total not-to-exceed amount of $225,000 and to extend the term to January 2025. BACKGROUND Rankin Stock Heaberlin Oneal is a law firm representing cities in a variety of areas, including police civil rights claims and personal injury litigation. In January 2022, the City entered into a two-year agreement (S22184420) in the amount of $50,000 with Rankin Stock Heaberlin Oneal for continuing litigation defense services in civil suit Scrivner v. City of Palo Alto, et al., Santa Clara Co. Sup. Ct. Case No. 18-CV-333834. In December 2022, staff amended the contract to increase the not to exceed amount to $75,000. Staff now seeks authority to increase the contract amount by $150,000 which will bring the new not to exceed amount to $225,000, and to extend the term to January 2025. Litigation defense is continuing in this matter. Prior to agreement S22184420, the City entered into agreement S19175172 with Rankin Stock Heaberlin Oneal for initial Government Claim and litigation defense services in this matter. The city expended $80,000 under the prior contract. Item 17 Item 17 Staff Report Item 17: Staff Report Pg. 1 Packet Pg. 223 of 911 FISCAL/RESOURCE IMPACT Funding for this amendment does not require additional budgetary authority as it can be accommodated within existing budgets. ENVIRONMENTAL REVIEW Amendment of a legal services contract is not a project requiring environmental review under the California Environmental Quality Act (CEQA) (See CEQA Guidelines 15378(b)(5), administrative activities that will not result in direct or indirect physical changes in the environment). APPROVED BY: Molly Stump, City Attorney Item 17 Item 17 Staff Report Item 17: Staff Report Pg. 2 Packet Pg. 224 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: IT Department Meeting Date: June 19, 2023 Report #:2306-1612 TITLE Approval of Contract with VOX Network Solutions (C23187554) to Procure Services to Upgrade the City’s Phone System and a Three-Year Support Term for a Total Amount Not-To-Exceed $504,107; CEQA Status—not a project RECOMMENDATION Staff recommends that Council approve and authorize the City Manager or designee to execute the following: 1. Execute Contract C23187554 with VOX Network Solutions to upgrade the City’s current phone system in the amount of $458,279 utilizing a National Cooperative Purchasing Alliance (NCPA) cooperative agreement, (Attachment A). 2. Authorize a 10% contingency in the amount of $45,828 for the purchase of additional licensing and support for any unforeseen licensing needs. BACKGROUND The City executed a contract with VOX to replace the previous phone system which had been in place for over two decades through an RFP that had been issued in 2012. This contract was previously approved by Council in June 20121. The new phone system was fully implemented in October 2013. A maintenance contract was issued in October 2017 for three years (through October 2020) and then again in October 2020, a 3-year maintenance contract was issued to VOX for maintenance and support through October 2023. Annual maintenance for VOX is approximately $68,000. With this upgrade, we can expect to see about an $20,000 increase annually for maintenance and support. 1 https://www.cityofpaloalto.org/files/assets/public/from-archive/agendas-minutes-reports/reports/city-manager- reports-cmrs/2012/cmr-2760.pdf Item 18 Item 18 Staff Report Item 18: Staff Report Pg. 1 Packet Pg. 225 of 911 ANALYSIS The City of Palo Alto has an existing Avaya phone system and voicemail platform that is deployed in all city facilities with physical desk phones. The system has reached a critical milestone in the manufacturer’s lifecycle which does not allow license expansion or additions. Additionally, some of the hardware has reached its end of life and requires replacement for the upgrade to the latest release. To mitigate risk and scale for growth, the city will be upgrading the phone system to the latest release of software, that offers a more secure communications platform and can provide additional functionality as well as being fully supported and expandable. Any legacy hardware will be migrated to newer, supported hardware. VOX will reuse licensing and existing hardware where possible. City staff will assist with firmware upgrades on hardware for cost savings to the city. Upgrading to the current version of the phone system software will provide significant benefits in terms of functionality, security, compatibility, reliability, cost savings, regulatory compliance, and support. City Staff did investigate cloud-based phone system options, however with city’s specific needs with police, fire, library, community services and other departments staff recommend staying on on- premise phone system for security, cost and compliance reasons. Following are some high-level Enterprise Phone System integrations/requirements that are specific to support City business need and not supported by basic cloud phone systems used by individuals and small businesses: 1. Integration with Public Safety 911 dispatch system. 2. Call Center real time reporting and historical reporting for Utilities and Planning and Development services. 3. Interactive Voice Response System integration to handle credit card payments by phone for utilities customers. 4. Integration with Citywide Outage Management System for Office of Emergency and Utilities. 5. Integration with the City’s Call Accounting system to provide audit reports on all calls. 6. Local desk phone and soft phones on laptops to support remote staff with hybrid workforce. 7. Support for over 100 different auto attendants used by various departments with announcements and transferring requirements. Below are the benefits of this proposed hardware and software upgrade: 1. Improved functionality: Upgrading to the current version of the software will provide access to new features and functionalities that were limited or not available in previous versions. These new features like number of users supported, conference bridge, call recording and reporting, skills-based phone routing, call center redundancy, paging, music on hold, reception console, etc. can improve the efficiency and productivity of the phone system. Item 18 Item 18 Staff Report Item 18: Staff Report Pg. 2 Packet Pg. 226 of 911 2. Enhanced security: The current version of the software will have the latest security updates and patches, ensuring that the system is protected from new security threats and vulnerabilities. 3. Better compatibility: As new hardware and software applications are implemented for city departments; the current version of phone system software will be compatible with them. This can help to avoid issues with system performance and data compatibility. For example, the Outage Management System and 911 Dispatch System. 4. Improved reliability: With each new release, the vendor typically includes bug fixes and stability improvements that can help reduce downtime and system failures. 5. Cost savings: Upgrading to the current version of your software will help avoid costly maintenance and support fees for outdated versions of the software. For some of the equipment, no support at all. To switch to a brand-new phone system Cloud or On- Premise is estimated at twice the cost of the upgrade due to the existing investment in hardware and phone devices already in place. 6. Regulatory compliance: Upgrading the software to the current version will help to ensure that the city is meeting required compliance with specific laws and regulations. For example to meet the Ray Baum's Act that states that when a 911 call is placed, the call includes dispatchable location information and Kari's Law that requires that 911 are the only digits needed to contact public safety. To call 911, you must not have a dialing prefix, such as 9, and the call must go directly to the PSAP. 7.Support: The vendor's support team typically provides assistance and troubleshooting only for the current version of the software. Upgrading to the current version will make it easier to receive support and resolve issues in timely manner for city staff. FISCAL/RESOURCE IMPACT The funding for this contract is available in the Information Technology Fiscal Year 2023 Adopted Operating Budget. Funding for subsequent years of the contract will be subject to approval through the annual budget development process. One-Time Costs: Year 1 Costs: Year 2 Costs: Year 3 Costs: Total: STAKEHOLDER ENGAGEMENT The services were coordinated with internal stakeholders and the service provider. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because the purchase of phone system hardware and software licenses is a continuing administrative or maintenance activity. CEQA Guidelines section 15378(b)(2). Item 18 Item 18 Staff Report Item 18: Staff Report Pg. 3 Packet Pg. 227 of 911 ATTACHMENTS Attachment A: Contract with VOX, C23187554 APPROVED BY: Darren Numoto, Chief Information Officer Item 18 Item 18 Staff Report Item 18: Staff Report Pg. 4 Packet Pg. 228 of 911 PROPOSAL City of Palo Alto AVAYA UPGRADE & 3YR SUBSCRIPTION PREPARED BYPREPARED FORDATE PREPAREDVERSIONQUOTE # 10 33247.198 2/8/2023 SJ Park Tonja Marcus (650) 989-1054 tmarcus@voxns.com A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 5 Packet Pg. 229 of 911 PROPOSAL TECHNICAL SOLUTIONS SUMMARY TSS Solution: Avaya Upgrade to Aura 10.1 NCPA 01-114 as procurement vehicle Description of Proposed Solution: The City of Palo Alto (Customer”) has an existing Avaya Aura Communication Manager R6.3 Simplex Core/ESS system with an Avaya Aura Messaging 6.1 platform that is deployed in their main Core and DR locations. They also have several Survivable Remote (LSP) and non LSP gateways deployed. The system has reached a critical milestone in the manufacturer’s lifecycle which does not allow license expansion or additions. Additionally, some of the hardware has reached its end of life and requires replacement for the upgrade to the latest release. To mitigate risk and scale for corporate growth, the customer will be upgrading their communications environment to the latest release of software, that offers a more secure communications platform and can provide additional functionality as well as being fully supported and expandable. Any legacy hardware will be migrated to newer, supported hardware. VOX will reuse licensing, cards and endpoints where possible. The customer will perform firmware upgrade on all existing gateways, media cards, and IP endpoints. Location(s) covered in this design: City Hall & Pd – 250 Hamilton Ave. Palo Alto, CA 94301 – Sold To: 0003638486 / 0051802663 The following Avaya applications and licenses will be upgraded to the latest release of Avaya Aura 10.x. All Applications listed below will be migrated to the new Avaya ASP server platform: A VOX Software Specialist will work with the customer enable remote access to the appliances. VOX will remotely configure the applications and provide on site resources for the installation and placement of the new Avaya servers, gateways, IP phones and for the decommissioning of the Media Gateways at Manchester and Bedford. Avaya Licenses: The existing Avaya licenses will be upgraded to the latest Avaya Aura R10 release. (1184) CM6.x Enterprise Edition RTU upgrading to R10.x UC Core Subscription (252) CM 6.x Analog Only upgrading to CM 10.x UC Basic Subscription (33) Existing Call Center Elite R6 o Removing CC Elite as customer is using Xima for contact center (108) Existing TSAPI Basic R6 Licenses upgrading to R10 3rd Party CTI Subscription (56) Existing DMCC Full R6 Licenses upgrading to R10 3rd Party CTI Subscription Avaya Applications and Servers: All Applications listed below will be installed and configured on Avaya provided ASP servers. (1) ASP130 P5 server for all Avaya applications except the ASBCE (1) ASP130 P2 Server for CM Simplex to CM Duplex A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 2 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 6 Packet Pg. 230 of 911 PROPOSAL TECHNICAL SOLUTIONS SUMMARY (1) ASP110 server for ASBCE SA Avaya Diagnostic Services (ADS) / Secure Access Link (SAL) Upgrade and migrate Secure Access Link R2.5 to R4 . The embedded SAL on the main CM Server was upgraded by VOX in March to gain remote access to the system and correct part of the Avaya records. See section on Final Registration regarding ADS and SAL. Communication Manager Upgrade and migrate (1) existing Communication Manager Simplex R6.3 to R10.X (Simplex to Duplex) System Manager Upgrade and migrate (1) Existing System Manager R6 to R10.X from the existing DL360 G7 Server to the new Avaya ASP server Integrate with Customer’ Active Directory Environment Enterprise Configuration Profiles to be used for Remote Workers. Session Manager Upgrade and migrate (1) Existing Session Manager R6 to R10.X from the existing DL360 G7 Server to the new Avaya ASP server Avaya Aura Device Services Install (1) New Device Services R10 on the new Avaya ASP server AADS will be installed and used for Utility and HTTPS File Services Certificate authentication for Remote worker Enterprise setup for Full IX Workplace Remote Worker to include Single Sign on, Unified login and auto configuration. Avaya Breeze Presence Server Install (1) New Avaya Breeze Presence Server R10.X on the new Avaya ASP server Presence Services will be deployed in the enterprise for Remote Worker. Avaya Application Enablement Server Upgrade and migrate (1) Existing Avaya AES Server R6.3 to R10.X from the existing DL360 to the new Avaya ASP server The AES will be deployed in the enterprise for Remote Worker to provide Presence services for non-SIP Endpoints. The AES is being used for the Telstrat Call recording applications used by the Utilities (SCADA) and Police Department. Avaya Session Border Controller (SBC) (1) Existing Avaya SBC R7 Encryption license upgrading to R10 Upgrade (1) Existing Avaya Aura SBC R7 (Dell R210) to R10 on the new dedicated ASP110 server. Advanced Licenses will be leveraged for the Remote Worker part of the product. Existing SIP trunking is being retained as is within this project. Avaya Messaging (formerly IX Messaging) The following Avaya applications and licenses will be upgraded from Avaya Aura Messaging R6.x to Avaya Messaging R11 and migrated to the new Avaya ASP server. (1020) existing AAM R6.x RTUs will be migrated to IX messaging. (1020) Avaya Aura Messages will be migrated from the old user mailboxes to the new Avaya Messaging mailboxes. All Applications listed below will be installed as part of this project. (1) Avaya Messaging Voice Server – New Avaya ASP Server A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 3 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 7 Packet Pg. 231 of 911 PROPOSAL TECHNICAL SOLUTIONS SUMMARY o Windows Server 2019 OS (Customer Provided) (1) Avaya Messaging Consolidation Server – New Avaya ASP Server o Windows Server 2019 OS (Customer Provided) Licenses o Upgrade (1200) AAM R6.x Mainstream ASIPP to Avaya Messaging R11 Hardware Media Gateways (Existing Gateways 001- 002) (2) Existing Avaya G450 Media Gateways Note: This site has (3) unsupported 9650 IP Phones that will be replaced by the customer prior to the R10 upgrade. Municipal Service Ctr – 3201 E Bayshore Rd. Palo Alto, CA 94303 – Sold To: 0005233711 The following Avaya applications gateways will be upgraded to the latest release of Avaya Aura 10.x. Avaya Applications and Servers: All Applications listed below will be installed and configured on a new Avaya ASP server. (1) ASP130 P3 server for all Avaya applications Communication Manager Upgrade and migrate (1) existing Communication Manager Simplex ESS Server R6.3 to R10.X Session Manager Install (1) New Session Manager R10.X on the new Avaya ASP server. This will be a secondary Session Manager that will provide resiliency to the new Avaya Messaging voicemail VM Install (1) New G450 Media Gateway Max DSP Additional Power Supply Install (6) MM716 for 144 Analog stations. IX Avaya Messaging o (1) Avaya Messaging Voice Server – New Avaya ASP server Windows Server 2019 OS (Customer Provided) Media Gateways (Existing Gateway 022) (1) Existing Avaya G450 Media Gateway MP80 + MP80 and Dual Power Mobile Emergency Operation Center at Muni Svc Ctr Yard – Command Vehicle located on MSC Lot. Media Gateways (Existing Gateway 023) (1) Existing Avaya G430 Media Gateway (shows unregistered, in MEOC command vehicle) VOX will install a New Avaya S8300E Media Server to replace the existing S8300D that is no longer supported by the manufacturer. A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 4 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 8 Packet Pg. 232 of 911 PROPOSAL TECHNICAL SOLUTIONS SUMMARY NOTE: This vehicle is used during certain emergency situations only. The Avaya LSP and media gateway are only online when the vehicle is place in service and the equipment is powered up. Survivable Remote - UCC - 3241 E Bayshore Rd. Palo Alto, CA 94303 – Sold To: 0005367282 Media Gateways (Existing Gateway 041) (1) Existing Avaya G430 Media Gateway Upgrade existing S8300E Media Server Remote Gateway - Main Library/ Rinconada – 1213 Newell Rd. Palo Alto, CA 94303 – Sold To: 0005367312 Media Gateways (Existing Gateway 039) (1) Existing Avaya G430 Media Gateway Remote Gateway - Mitchell Park Library – 3700 Middlefield Rd. Palo Alto, CA 94306 – Sold To: 0005367313 Media Gateways (Existing Gateway 040) (1) Existing Avaya G430 Media Gateway Note: This site has (1) unsupported 9650 IP Phone that will be replaced by the customer prior to the R10 upgrade. Remote Gateway – Lucie Stern Complex – 1305 Middlefield Rd, Palo Alto, CA 94301– Sold To: 0005367314 Media Gateways (Existing Gateway 038) (1) Existing Avaya G430 Media Gateway Remote Gateway – Children’s Library – 1275 Harriet St. Palo Alto, CA 94301 – Sold To: 0005367316 Media Gateways (Existing Gateway 034) (1) Existing Avaya G430 Media Gateway Remote Gateway - Art Center – 1213 Newell Rd. Palo Alto, CA 94303 – Sold To: 0005367317 Media Gateways (Existing Gateway 033) (1) Existing Avaya G430 Media Gateway Remote Gateway - Cubberly Ctr – 4000 Middlefield Rd. Palo Alto, CA 94303 – Sold To: 0005367318 Media Gateways (Existing Gateway 035) (1) Existing Avaya G430 Media Gateway Remote Gateway - Fire Station 1 – 301 Alma St. Palo Alto, CA 94301 – Sold To: 0005367320 Media Gateways (Existing Gateway 043) (1) Existing Avaya G430 Media Gateway Remote Gateway - Fire Station 2 – 2675 Hanover St. Palo Alto, CA 94304 – Sold To: 0005367321 Media Gateways (Existing Gateway 044) (1) Existing Avaya G430 Media Gateway A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 5 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 9 Packet Pg. 233 of 911 PROPOSAL TECHNICAL SOLUTIONS SUMMARY Remote Gateway - Junior Museum – 1451 Middlefield Rd. Palo Alto, CA 94301 – Sold To: 0005367324 Media Gateways (Existing Gateway 037) (1) Existing Avaya G430 Media Gateway Remote Gateway - Water Quality – 2501 Embarcadero Way Palo Alto, CA 94303 – Sold To: 0005367326 Media Gateways (Existing Gateway 042) (1) Existing Avaya G430 Media Gateway Remote Gateway - Utilities Engineering Office – 1007 Elwell Ct. Palo Alto, CA 94303 – Sold To: 0005367329 Media Gateways (Existing Gateway 036) (1) Existing Avaya G430 Media Gateway Remote Gateway - Fire Station 3 – 2501 Embarcadero Way Palo Alto, CA 94303 – Sold To: 0051758172 Media Gateways (Existing Gateway 062) (1) Existing Avaya G450 Media Gateway Remote Gateway - Fire Station 4 – 3600 Middlefield Rd. Palo Alto, CA 94301– Sold To: 0051485177 Media Gateways (Existing Gateway 054) (1) Existing Avaya G430 Media Gateway Remote Gateway - Fire Station 5 – 600 Arastradero Rd. Palo Alto, CA 94301 – Sold To: 0051485178 Media Gateways (Existing Gateway 055) (1) Existing Avaya G430 Media Gateway Remote Gateway - Fire Station 6 – 711 Serra St, Stanford, CA 94305 – Sold To: 0005367323 Media Gateways (Existing Gateway 045) (1) Existing Avaya G430 Media Gateway 3rd Party Applications: Calero – eCAS Call Accounting The customer has an existing eCAS Call Accounting system by Calero. Vox has provided a quote for the Calero to upgrade the existing platform remotely and also to add a block of (250) station monitoring licenses to the existing system. Newer software may require a new server or expansion of virtual resources. The customer will be responsible to reconfigure their virtual environment to match any revised resource requirements. Telstrat Call Recording (Police only) The Telstrat system upgrade at the Police Department location is included with this project. The Utility /SCADA system is being provided under an optional quote as a separate project. The current Police Department system is running in an end of life state. The current platform is running Windows Server 2008 which no longer supported by the platform or Microsoft. VOX will coordinate the migration of the new call recording server. The customer will need to build a new Virtual environment running Windows Server 2016 64 bit. This quote includes the necessary professional services required by Seranova to complete the remote installation of Engage 5.7.x on a new customer provided VM. This quote also includes the migration of data to the new server, and Administrative training on the new version of software. A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 6 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 10 Packet Pg. 234 of 911 PROPOSAL TECHNICAL SOLUTIONS SUMMARY 3rd Party Applications not being upgraded: In the event that applications fail to connect after the upgrade, VOX will provide basic troubleshooting activities to attempt to restore connectivity. In the event the basic troubleshooting becomes extended or requires additional work with the 3rd party manufacturer, and the issue is related to an upgrade or configuration change of that 3rd party’s system, a change order may be required to provide extended support. VOX recommends that the customer have the 3rd Party vendors on stand-by in case their support is required. Ribbon The customer has an existing Ribbon1000 SBC providing SIP trunk connectivity. The SBC will be reconnected after the upgrade, but the customer is responsible for any support required by Ribbon after the upgrade should any configuration changes be required. VOX is not providing any upgrade related services for this application; however, we will test the SBC connectivity and work with Ribbon or the customer to restore a service outage. Vocantas IVR The customer has a 12 port, SIP connected Vocantas IVR that is installed and connected via the Avaya SBC. The SBC will be reconnected after the upgrade and option 1 to an outbound number will be tested as it is critical to the services team. The customer is responsible for any support required by Vocantas after the upgrade should any configuration changes be required. VOX is not providing any upgrade related services for this application however; we will test the IVR’s connectivity and work with Vocantas or the customer to restore a service outage. Motorola Vesta NG911 PSAP The customer has a Vesta NG911 PSAP connected via Adtran Gateways to analog ports back to Avaya CM. There are some loop current lockups occurring on loop start lines prompting the customer to manually reset them. This may be a loop start supervision issue based on how some calls get routed between two analog Loop Start lines. VOX will verify that the analog calls are routing however the loop locks may require a service ticket for assistance due to the pre-existing condition associated with them. PROFESSIONAL SERVICES SOW Project Specific Scope of Work VOX will provide: Remote Project Manager Remote Software Specialist Onsite Technician for Rack and Stack G450 and EM200 gateways as well as the cross-connect of the cables required during regular business hours and OT to handle the cross-connects for the cables Installation of new ASP servers during regular business hours Installation of S8300E during regular business hours OT Event for individual cutover event excluding Sunday Onsite Technician for 1st day of business Follow upgrade project plan which will be detailed and setup by the Project Manager assigned for this project Work with the customer related to the new and upgraded applications "Application Deployment Detail" Section for added detail related to the Upgrade Project and the applications being installed Customer will: A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 7 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 11 Packet Pg. 235 of 911 PROPOSAL PROFESSIONAL SERVICES SOW Update the firmware on all Phones, Media Gateways, Media boards Telstrat will: Remote Installation New Engage Server - Major Software Upgrade Recorder Data Migration - Professional Services Voice Platform Upgrade - Professional Services Calero will: BUNDLE: Remote Upgrade to one server (application and databases) from a supported VeraSMART Call Accounting version to the latest version of VeraSMART – Product migration and upgrade to one server. Up to 5 CDR Sources, services completed 8AM-6PM ET Training (2) each of four hour sessions of Remote Delta Training over the following Applications: System Manager, CM administration training for Admins, Avaya Messaging (IX Messaging) Admin training, and Remote Worker Training will be provided to the administrative personnel of the Customer (3) days of End user training will be provided remotely as well with electronic training materials provided for employee reference and future employee onboarding VOX will provide (4) hours of remote XIMA Training to the customer’s supervisors to better understand and interpret the reports; 4 Hour(s) of Instructor Led Remote Training - www.ximasoftware.com/InstructorTraining.html Telstrat will provide remote knowledge transfer Calero will provide online resource materials and remote phone support under their standard support coverage - Getting Started with VeraSMART Call Accounting (2 hours Web-based, up to 4 seats) Project Management Project Management Tasks The VOX Project Manager will serve as the primary point of contact for all issues related to the project. The VOX Project Manager will perform the following tasks as part of the project: Review and understand the Statement of Work (SOW) as well as the goals of the customer Make preliminary contact with the customer and review project expectations and next steps Create a detailed project plan. The project plan will define project tasks, responsibilities, and project timelines. The project plan will be updated as necessary as part of ongoing project status meetings. Plan, schedule, and conduct a remote project kickoff call with the customer and VOX project teams. The kickoff call will include the following agenda items as applicable: o Introduce team members and review customer and VOX roles and responsibilities o Review the project objectives with the customer and the VOX project team o Review and update the project contact list A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 8 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 12 Packet Pg. 236 of 911 PROPOSAL PROFESSIONAL SERVICES SOW o Review the technical requirements for the solutions and equipment being implemented o Review the VOX change management process o Conduct an initial discussion of required data collection forms o Review and update the initial project plan and confirm project task responsibilities o Conduct an initial discussion of training (if applicable) Place the equipment order and provide order status and delivery information to the customer Schedule and manage VOX project resources Hold remote status calls with the customer and VOX project teams o Scope assumes a cadence of (1) regularly scheduled status call per week, with additional technical or breakout calls scheduled ad hoc as required. If additional weekly status calls are requested, additional charges may apply. Coordinate project logistics between the customer and VOX Perform Project Control activities to include: o Managing the project plan o Managing project risk o Holding status meetings o Reporting project status to the project teams o Managing project change orders o Validating the collected information and requirements from the customer o Managing the installation and configuration to include hardware, software, and services Remotely plan and manage the project implementation Remotely plan and manage the project cutover activities. The VOX Project Manager will remotely manage the cutover activities and ensure that any issues that may arise are identified, documented, and addressed. Provide status updates for first day of business support activities (if applicable) Understand and comply with customer provided change management policies Coordinate the handoff to VOX support (if applicable) Schedule and conduct a project closure meeting with customer and VOX project teams VOX Deliverables - Project Management In addition to the project tasks performed above, the following are the VOX deliverables associated with Standard Project Management services: Provide the customer with the appropriate technical requirements and data collection forms and once completed, review the collection forms for accuracy Provide the relevant project planning documentation to include: o Project contact list o Kickoff meeting agenda and minutes o Detailed and mutually agreed upon project plan o Status meeting agenda and minutes o Training plan and schedule (if applicable) o Solution and/or equipment test plans (if applicable) Provide the customer an equipment delivery schedule for any VOX provided equipment Report any project changes which may impact the project schedule A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 9 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 13 Packet Pg. 237 of 911 PROPOSAL PROFESSIONAL SERVICES SOW Provide the customer with a handoff package to include: o Project description and summary o “As-Built” diagrams (if applicable) o Warranty and support information o Post-install punch list (if applicable) Customer Responsibilities - Project Management The following are the customer responsibilities for Standard Project Management: Manage the collection of customer data using VOX provided data collection forms Coordinate and ensure compliance with VOX provided technical requirements Provide information and guidance on customer Change Management policies Assist the VOX PM as necessary with scheduling and coordination of customer resources Provide any VOX requested documentation or information necessary to adhere to the project schedule Coordinate and provide any necessary access to customer systems Attend all mutually agreed upon required project meetings (if applicable) Coordinate all customer provided vendors, subcontractors, and LEC/Carrier interactions Site Not Ready If operational functionality cannot be established because Customer’s responsibilities were not met or non-VOX vendors have not met their responsibilities (unless under an Agency Agreement), Customer may incur additional charges.. This includes, but is not limited to, issues that arise during the course of the project impacting the solution or impeding/delaying progress that are deemed to be due to CPE (Customer Premises Equipment such as network, carrier, server or other identified customer requirements). Upon VOX identification of such issues and request for customer action, if additional time and effort is requested of VOX to continue to troubleshoot the issue or repeat attempts at resolution, and it is finally confirmed to be a customer responsibility, time incurred to provide this additional troubleshooting, testing or research will be billable at current Time and Materials rates. General Assumptions Resources from VOX Network Solutions, Inc. and/or its sub-contractors will be utilized, as needed, to provide a full scope of technical expertise. Additional charges to customer may apply for items not specifically provided for in this SOW. VOX Network Solutions, Inc. is not responsible for the performance or quality of third-party vendors/contractors hired by customer. Specific equipment purchased and Installation and Labor is listed in the attached Equipment Bill of Materials. Requests for additional services beyond this Scope of Work require written approval by customer and acceptance by the VOX Network Solutions, Inc. Project Manager. If the project extends beyond the timeline specified in the Project Plan due to delays caused by parties other than VOX Network Solutions, Inc. and its business partners, additional charges may apply. Engineering changes: Change orders made by customer after project initiation may affect the agreed-upon project schedule and will A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 10 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 14 Packet Pg. 238 of 911 PROPOSAL PROFESSIONAL SERVICES SOW require a project review to determine impact and schedule requirements. Customer Responsibilities Implementation Access Provide remote access to all VOX configured elements as defined by the project team via VPN or other mutually agreed upon access methodologies to ensure persistent independent access is available to the project team throughout the project life cycle. o If persistent independent remote access is not provided, additional charges may apply to accommodate monitored/escorted access or other mean Coordinate and provide any necessary access to customer systems Provide access to all installation locations and equipment being installed. Data Gathering and Site Readiness Manage the collection of customer data using VOX provided data collection forms Work with VOX when needed for discovery to program and implement the specified solution(s). Provide all IP addressing and host names per provided planning forms for customer’s network. Planning forms are to be completed and returned within 5 days of completed consultation. Work with VOX to mutually develop test and communication plans to confirm functionality required per solution specified. Customer to provide onsite resource(s) for turn-up and test of 3rd party application, unless VOX onsite resources are otherwise specified in this SOW. Changes to customer network or environment which were not part of discovery and planning for the project, and which cause delays in implementation, will push out dates and cut dates/times respectively. Additional charges may apply to accommodate unplanned changes made. Coordinate and ensure compliance with VOX provided technical requirements Provide any VOX requested documentation or information necessary to adhere to the project schedule Provide proper site environment as defined in the product documentation. Provide floor plans and cabling schematics for station installation, if scoped. Ensure that the installation of network and dial circuits is complete. Ensure that demarcation points can be connected to with the cables provided. Provide Layer 1, 2 and 3 IP infrastructures all network connectivity unless provided by VOX under this agreement For all VoIP devices, Customer to provide Cat 5 or better cabling to all endpoint/device locations and POE equipment as required if not provided by VOX under this agreement. Customer is responsible for implementing a Qualify of Service policy that will classify and prioritize voice packets for all VoIP applications and endpoints. Project Management Provide information and guidance on customer Change Management policies Provide a single point of contact (Customer PM Role) to align with VOX PM as necessary for scheduling and coordination of customer resources and overall project communication Attend all mutually agreed upon required project meetings (if applicable) Coordinate all customer provided vendors, subcontractors, and LEC/Carrier interactions A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 11 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 15 Packet Pg. 239 of 911 PROPOSAL PROFESSIONAL SERVICES SOW Provide an on-site contact to assist during installation. Additional Equipment, Changes and Rearrangements A duly authorized representative of Customer, upon acceptance thereof by VOX of a Job Change Order (JCO) may add additional equipment and or services to the contracted Bill of Materials and services SOW at the charges applicable upon execution. Such modification will state the location and the additional items of equipment and or services. In the event the Customer requests changes in the installation specifications, VOX reserves the right to adjust the contract price to correspond with the additions or modifications to or deletions from the amount of work to be performed. All such requests shall be made in writing by Customer to VOX, and VOX shall be entitled to amend the Schedule hereto to reflect these changes. Out of scope services will be invoiced hourly at prevailing VOX T&M rates under the following schedule: Monday through Friday 8am to 5pm local time: Standard Hourly Rate Monday through Friday 5pm to 8am local time and Saturdays: Overtime (1.5 x hourly rate) Sunday work commencing after 6am local time and all work conducted on a holiday: Premium Time (2 x hourly rate) Cancellation and Delays Delays: Upon project initiation and kickoff, the VOX Project Manager or Coordinator will provide standard intervals for the scope of work deployment timeline. if customer requires compression of the standard intervals or expedite to meet specific dates, VOX reserves the right to assess an expedite fee via the Job Change Order process based on the type and nature of the expedite, resources and overtime required to meet dates, and other factors to be defined. Prolonged delays to the schedule may result in additional charges being applied. Examples of such delays include but are not limited to: If customer fails to meet agreed upon and scheduled deliverables per the project plan, and such delay impacts the project schedule requiring reassignment of resources or cancellation of work within 72 hours, delay fees will be assessed accordingly. If scope or design changes via the Change Management process substantively impact the project scope and schedule, additional charges for such changes may be incorporated into the Change Order submitted for customer approval, If project is placed on extended hold resulting in delays of longer than xxx, a project restart fee may be assessed due to changes in resource assignments, system update requirements, or need to re-initiate portions of the project, these charges may include, but are not limited to, a project restart fee of 10% of the professional services costs of the original project. Cancellation: An order once placed with and accepted by VOX can be cancelled only with the consent of VOX and upon terms, which will indemnify VOX against all loss, incurred as a result thereof. Cancellation fees of up to 25% of the selling price may apply to equipment purchases that are ordered but cancelled prior to installation. Professional Services cancellation fees will be incurred once resources have been engaged on the project and result in billing of the greater amount of 25% of the Professional Services sales price, or the billable rate of the hours incurred to the point of cancellation. In the event that Customer is in Default under this agreement, VOX may cancel or terminate any or all service(s) provided. A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 12 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 16 Packet Pg. 240 of 911 PROPOSAL PROFESSIONAL SERVICES SOW Project Phasing: Unless explicitly stated in the SOW above, project cutover support is assumed to occur in a single event. If additional cutover phases are requested or added during project planning, additional charges will apply and will be specified under the Job Change Order process. Freeze Dates: Freeze dates are jointly developed and agreed to by the customer and the VOX project team and incorporated into the project plan. Where freeze dates are applicable and documented in the project plan, the PM will provide written notification to the customer confirming entry into the freeze period. If changes are made by the customer after the freeze date, VOX will provide up to 4 hours for non-Contact Center related programming, and 8 hours for Contact Center related programming if applicable, to support changes. If the required changes involve more time than noted above, additional charges will apply via a Job Change Order (JCO). APPLICATION DEPLOYMENT DETAIL Communication Manager Platform Migration Upgrade VOX deliverables for CM Migration Upgrade service: Review System Design and Upgrade Considerations Review, validate, download and apply license files on target platform A freeze period of no less than 2 weeks will be established to migrate translations to new platform and test prior to cutover o Any changes made to system during freeze period by customer will be tracked by customer and input to the system by customer after cutover handoff, or may be input by VOX for an additional charge Remotely download all migration programming o Migration is assumed to be like for like carrying forward all existing station, trunk, routing and integrations to new platform without modification unless required by target release, or specified in the Project Specific Scope of Work above Conduct Solution Validation Testing for CM core functionality and integrated elements defined in scope Handoff to customer for User Acceptance Testing (UAT) o Track UAT reported issues and perform remediation Finalize Cutover Plan Certify System Readiness and conduct Go / No Go Cutover Meeting Conduct cutover in phased manner defined during project planning bringing new new release level applications into production in groups per best practices, concluding with a final cutover phase moving users to fully programmed target platform via migration of gateways, TDM stations and trunking to upgraded CM core and execute cutover test plan Work with customer to define new DHCP scope as required for upgraded core system o Customer to program DHCP, and initiate phone reboot via POE reset or other means to initiate IP/SIP phone registration to upgraded core o VOX to validate phone registration completion via before and after registered endpoint validation o Customer to troubleshoot any IP/SIP phones previously registered that do not register to upgraded core Certify system cutover completion Survivable Processors: For in place upgrades, VOX will remotely upgrade the Survivable Processor during business hours A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 13 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 17 Packet Pg. 241 of 911 PROPOSAL APPLICATION DEPLOYMENT DETAIL For hardware migration upgrades, VOX will stage the new processor server, ship to site and provide onsite resources (if scoped) to swap out during business hours Failover testing: o VOX will conduct failover testing for the quantity of survivable processors locations defined in the Project Specific Scope of Work. Based on the scope and design, a failover test may not be performed for every location. o For the scoped number of failover testing sites, VOX will work with customer to simulate (via network or other means) the unavailability of the core processor complex and validate Survivable Processor(s) perform as designed, and then revert system back to primary core and validate functionality In Service/First Day of Business Support: VOX will provide remote and/or onsite resources with durations defined in the Project Specific Scope of Work During project planning, integration with customer Help Desk process will be defined to validate trouble reporting workflow and issue tracking for remediation Deliverables Fully programmed CM platform including dial plan, trunking and IP address schema Customer Responsibilities Provide remote access for all system programming via VPN or other persistently and independently available means throughout the project life cycle, or until VOX remote access via monitoring server (if scoped) provides for all required access Participate in cutover planning sessions Mutually define UAT activities Conduct UAT and report issues to VOX project in a defined and consistent format Exclusions/Assumptions Above work to be performed during business hours unless overtime for cutover or other service affecting tasks is defined in Project Specific Scope of Work at top of this document. Appliance Server Software Installation (Staging) VOX deliverables for Appliance Server installation For applications being deployed under this Professional Services Scope of Work on hardware servers purchased through VOX on this agreement, VOX will provide the following tasks for Appliance Server Software Installation (Staging): Verification of all hardware, software, documentation components delivered from the distributor A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 14 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 18 Packet Pg. 242 of 911 PROPOSAL APPLICATION DEPLOYMENT DETAIL Bench server hardware, POST and burn in, validate hardware health Assign IP addressing and host names from VOX Data Gathering documentation completed by customer prior to onset of VMware staging activities Deploy OVA, OS and/or software packages as applicable Activate Licensing as applicable Create Login accounts as defined during project planning for VOX and customer access Box and ship to customer site per defined project schedule and shipping details All non-service affecting work will be completed during regular business hours Service affecting work will be completed after hours A working solution that meets design specifications and conformity to the TSS Customer Responsibilities for Appliance Server Software Installation Provide a single point of contact Provide IP Address Workbook prior to equipment ordering Provide adequate power based upon the manufacture’s specifications Provide Server Racks Provide staff to shadow the technician during deployment to understand backup procedures, patching, etc. Exclusions/Assumptions for Appliance Server Software Installation Above work to be performed during business hours Services above are not applicable to customer provided servers Certificate Management 3rd Party Certificates Avaya G4x0 Gateway Staging and Installation VOX deliverables for Avaya G4x0 Gateway Staging and installation: System Preparation Unbox and bench test hardware and confirm no hardware defects Assign IP addressing from VOX Data Gathering documentation completed by customer prior to staging activities. Download and apply firmware for the gateway and media modules. o Firmware will be loaded at most current GA levels at time of staging unless otherwise specified during project planning. o Any subsequent firmware updates requested to system prior to cutover and handoff to support are subject to additional charges unless verified to remediate a known and present issue Test MGC list Ship to customer site Provide onsite technician for rack and stack installation in customer provided rack and connect to customer provided power and network Validate registration to Aura core Cable out TDM cards per design scope to customer provided wallfield/patch panel (or if provided by VOX, to VOX installed and provided wallfield/patch panel) A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 15 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 19 Packet Pg. 243 of 911 PROPOSAL APPLICATION DEPLOYMENT DETAIL Deliverables for Gateway Staging All non-service affecting work will be completed during regular business hours Service affecting work will be completed after hours A working solution that meets design specifications and conformity to the TSS Customer Responsibilities for Gateway Staging and Installation Provide IP Address Workbook prior to equipment ordering Provide adequate power based upon manufacture’s specifications Disposition of any disconnected equipment Provide patch panels or wall field with properly labeled toned and tested cable runs Customer is responsible for station wiring and data rack space Application Enablement Services (AES) - Single Server VOX deliverables for AES Single Server install: VOX to work with customer to configure AES for 3rd party application connecting with it. o Work to configure security DB (SDB) for extensions if necessary. o CTI full access configured b default o One CTI user configured by default o Basic TSAPI and DMCC configuration assumed unless other integration type is specified elsewhere in this proposal. o VOX to configure monitoring stations and CTI links Testing with access with 3rd party application o Checking for monitored stations, hunt groups, VDNs o Checking connectivity with CTI user o Checking station and protocol access This statement of work is for implementation of the solution as specified. Manufacturer changes in software versions and hardware between SOW approval date and completion of the project are not covered in this statement of work. Customer Deliverables for AES Single Server install: Work with VOX to assist in coordination between 3rd party system engineers, staff, and VOX resources Provide test plan to confirm functionality required per solution specified Customer is responsible for settings files after post-cut testing (per customer’s test plan) Planning form to be completed and returned within 5 days of completed consultation Customer to provide onsite resource(s) for turn-up and test of 3rd party application, unless VOX onsite resources are otherwise specified in this SOW Changes to customer network or environment which were not part of discovery and planning for the project, and which cause delays in implementation, may push out dates and cut dates/times respectively. Additional charges may apply to accommodate unplanned changes made Assumptions for AES Single Server install: A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 16 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 20 Packet Pg. 244 of 911 PROPOSAL APPLICATION DEPLOYMENT DETAIL Newly requested items or features not included in this statement of work may be addressed via job change order or new project See Assumptions Section in Customer Provided VMware section of this SOW for related exclusions/assumptions Installation is for AES single Server only. No administration on 3rd party application included. Required customer participants are made available when requested All work is provided remotely unless specified otherwise in this SOW AES Certificate to use SMGR CA at install Exclusions for AES Single Server install: 3rd Party Application Implementation and Administration High Availability (Clustering) 3rd Party Certificates Multi-Site AES HA AADS single server / Utility Services Implementation for single SSO, auto-config, AD VOX deliverables for AADS single server / Utility Services Installation for single SSO, auto-config, AD: Work with customer to understand LDAP requirements o Active Directory (AD) assumed o Service account o Security Groups (3 minimum) o Base DN o DNS HA for Domain Controllers o E.164 Formatted Phone numbers (TelephoneNumber Field minimum) Work with Customer to configure Auto-Configuration for IX Workplace for Windows, MAC, iOS, Android. Management setup on AADS only, this is not work to deploy Mobility apps. Test with IX Workplace (Auto-Configuration, SSO, Contact List) Testing for management connection for AADS only, this is not work to deploy Mobility apps. o Test up to 5 Softphone devices total (PC, Mac, iOS, Android) o Test internal network o Test external network (Through SBC when applicable) VOX to work with customer to create 46xxSettings.txt file and validate firmware o Work to place 46xxSettings.txt file on Utility Service o Place agreed-upon firmware in Utility Services Testing with Hard phones, Softphones (if applicable) - up to 5 endpoints o All firmware to be at compatible release prior to testing o AADS-supported phone models only o NON-AADS supported phone models tested on AADS Utility server or HTTP/HTTPS server o Testing more than 5 endpoints can be added via change order VOX to provide up to 2 hours knowledge transfer for administration of: o 46xx Settings file, Auto-Configuration o Utility Services admin interface o AADS admin interface o Basic Troubleshooting of AADS/Utility Services A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 17 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 21 Packet Pg. 245 of 911 PROPOSAL APPLICATION DEPLOYMENT DETAIL o System Manager interaction with AADS/Utility Services This statement of work is for implementation of the solution as specified. Manufacturer changes in software versions and hardware between SOW approval date and completion of the project are not covered in this statement of work. Customer Deliverables for AADS single server / Utility Services Installation for single SSO, auto-config, AD: DHCP administration o DHCP scope(s) for phones/PCs o Option 242 for voice and data VLANs – create or modify for hard phones Make changes necessary to Active Directory services needed for solution implementation Work with VOX to create desired 46xxSettings files Provide test plan to confirm functionality required per solution specified Customer is responsible for settings files after post-cut testing (per customer’s test plan) Planning form to be completed and returned within 5 days of completed consultation Customer to provide onsite resource(s) for turn-up and test of phones (if applicable), unless VOX onsite resources are otherwise specified in this SOW Changes to customer network or environment which were not part of discovery and planning for the project, and which cause delays in implementation, will push out dates and cut dates/times respectively. Additional charges may apply to accommodate unplanned changes made Network latency between Avaya Aura® Device Services and the LDAP sever must be less than 75 milliseconds at all times Assumptions for AADS single server / Utility Services Installation for single SSO, auto-config, AD: Newly requested items or features not included in this statement of work may be addressed via job change order or new project See Assumptions Section in Customer Provided VMware section of this SOW for related exclusions/assumptions Installation is for AADS and Utility Server Functionality Required customer participants are made available when requested All work is provided remotely unless specified otherwise in this SOW Exclusions for AADS single server / Utility Services Installation for single SSO, auto-config, AD: Screen Saver files, Wallpaper images, Ringtone files are not included in base deployment High Availability (Clustering) SAML Open LDAP Certificate Management 3rd Party Certificates System Manager Single Server and Session Manager VOX Deliverables for Single Server System Manager- Session Manager using Avaya SMGR certificates: Perform discovery of deployment and administration data, and Avaya Systems in place Work with Customer to configure network parameters A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 18 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 22 Packet Pg. 246 of 911 PROPOSAL APPLICATION DEPLOYMENT DETAIL VOX to implement required patches and updates VOX to install required licenses for SMGR and SM servers This statement of work is for implementation of the solution as specified. Manufacturer changes in software versions and hardware between SOW approval date and completion of the project are not covered in this statement of work. Customer Deliverables for Single Server System Manager- Session Manager using Avaya SMGR certificates Provide Remote Access method Work with VOX when needed for discovery to program and implement the specified solution QOS discovery and maintenance for VOIP solutions Network latency between all Avaya servers must be less than, 5 milliseconds at all times Ensure NTP servers must have less than 5 strata drift Entries for all Avaya servers required on private DNS Work to mediate between application engineers not provided directly by VOX Provide test plan to confirm functionality required per solution specified Planning form to be completed and returned within 5 days of completed consultation Customer to provide onsite resource(s) for turn-up and test of SIP phones (unless otherwise specified – VOX onsite resource(s) - in this SOW when applicable Changes to customer network or environment which were not part of discovery and planning for the project, and which cause delays in implementation, will push out dates and cut dates/times respectively. Additional charges may apply to accommodate unplanned changes made Network latency between SMGR and the LDAP sever must be always less than 75 milliseconds Customer to administer required service accounts, phone numbers, etc.. within the LDAP server for SMGR LDAP integration. Should LDAP integration be a requirement, a new job change order (JCO)/SOW for LDAP integration will be required. Assumptions for Single Server System Manager- Session Manager using Avaya SMGR certificates: Newly requested items or features not included in this statement of work may be addressed via job change order (JCO) or new project and SOW See Assumptions Section from Customer Provided VMware for exclusions/assumptions Installation is for SMGR/SM install only Required customer participants made available when requested All work is provided remotely unless specified otherwise in this SOW Exclusions for Single Server System Manager- Session Manager using Avaya SMGR certificates: High Availability (Clustering) SAML Open LDAP Active Directory integration Certificate Management 3rd Party Certificates Entities and CM integration Building of entities beyond Session Manager Entity Links A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 19 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 23 Packet Pg. 247 of 911 PROPOSAL APPLICATION DEPLOYMENT DETAIL Integrations to other servers Avaya Messaging HA Basic The HA system requires 3 virtual or hardware servers. Notes: No Fax, No Speech, No TTS, up to 1020 users. (1) Consolidated server, (1) Primary Voice/License server, (1) Secondary Voice Server It can be expanded with additional Secondary Voice Servers. It cannot have less that the 3 servers as shown above. All servers must be built, and the software installed at the same time. The Avaya Messaging license must be ready and accessible in order to install the Avaya Messaging software. TTS and Fax are options. Any item not specifically listed and defined is not included. The functions and features of the Basic and Advanced user license are subject to change. VOX Deliverables for Avaya Messaging Basic HA 3 Server System, Dual Subnet/Dual Site Avaya Messaging Installation: Work with Customer to determine OS and Server requirements Work with Customer to review and complete Avaya Messaging Planning Form Work with Customer to review and agree upon Avaya Messaging Features and Functions included in implementation Work with Customer to determine additional software required. Examples: o .Net4.7.2 o Admin application password reset tools o Other Avaya developer tools Work with Customer to determine and configure network configuration for Avaya Messaging Server Determine location of WebLM for Avaya Messaging license Load license on SMG/WebLM Work with Customer to confirm remote access to Avaya Messaging server (VPN Required) Work with Customer to confirm Avaya Messaging server and OS specifications Work with Customer to confirm UAC is disabled Work with Customer to confirm that antivirus is disabled Work with Customer to determine if Avaya Messaging server is joined to domain Work with Customer to determine if AD “Service Account” is configured and member of local Admin Group on Avaya Messaging server Configure Server OS Roles and Features Work with Customer to install exe files. Options are: o VOX deploys, via web session with customer’s VMWare admin o Customer provides VPN access to Avaya Messaging server and VOX deploys exe via RDP Configure Avaya Messaging basic parameters Configure Avaya Messaging SIP integration Work with Customer to test basic SIP integration features Work with Customer to determine configuration of test users Feature Groups and Mailboxes Work with Customer to add test user group to Avaya Messaging Provide Customer with Avaya produced user guide VOX provided knowledge transfer for administration of Avaya Messaging This statement of work is for implementation of the solution as specified. Manufacturer changes in software versions and hardware between A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 20 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 24 Packet Pg. 248 of 911 PROPOSAL APPLICATION DEPLOYMENT DETAIL SOW approval date and completion of the project are not covered in this statement of work. Customer Deliverables for Avaya Messaging Basic HA 3 Server System, Dual Subnet/Dual Site: Provide Approved Remote Access method via RDP (Required) VPN access that is compatible with the Avaya Provision Tool is required Return completed Avaya Messaging Planning Form to VOX Provide and build approved OS and Servers for Avaya Messaging Add servers to Customer’s domain Provide AD “Service Account” for Avaya Messaging Add AD Service Account to local Admins Group on Avaya Messaging Servers Disable UAC on Avaya Messaging servers (Required during installation and testing) Disable Antivirus per Avaya Messaging design requirements Work with VOX when needed for discovery to program and implement the specified solution DHCP administration Attend Avaya Messaging KT Provide input from test user group Work with VOX to review and modify User, System, and Feature Group parameters Provide Avaya Messaging User Database in CSV or other compatible format o Usually requires First and Last Name o Extension number(s) o Email address(es) o Feature Group o Personal operator Meet network latency requirements for Avaya Messaging Ensure NTP servers must have less than 5 strata drift Entries for all Avaya servers required on private DNS Public access for specific services requires public DNS entries VOX to provide high-level consultation only Provide test plan to confirm functionality required per solution specified Customer to provide onsite resource(s) for turn-up and test of Avaya Messaging (unless otherwise specified – VOX onsite resource(s) - in this SOW when applicable Changes to customer network or environment which were not part of discovery and planning for the project, and which cause delays in implementation, will push out dates and cut dates/times respectively. Additional charges may apply to accommodate unplanned changes made. Assumptions for Avaya Messaging Basic HA 3 Server System, Dual Subnet/Dual Site: Newly requested items or features not included in this statement of work may be addressed via job change order or new project See Assumptions Section from Customer Provided VMware for exclusions/assumptions Installation is for a 3 server Basic HA Avaya Messaging system consisting of the 3 servers described above Required customer participants made available when requested All work is provided remotely unless specified otherwise in this SOW Customer to provide OS and Virtual/Hardware Servers based on Avaya Messaging server requirements A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 21 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 25 Packet Pg. 249 of 911 PROPOSAL APPLICATION DEPLOYMENT DETAIL Exclusions for Avaya Messaging Basic HA 3 Server System, Dual Subnet/Dual Site: MS Active Directory Integration Certificate Management 3rd Party Certificates Fax TTS Speech features User Web Interface User Password Self-Service Reset Server redundancy Avaya Messaging Email Integration Avaya Messaging Advanced Email Integration: Exchange, O365 Notes: This option adds the ability to integrate voicemail and email. The email will include a copy of the voicemail recording. When a voicemail message is read or deleted from either the email client or the Avaya Messaging telephone interface it is marked as read or deleted and the message light will be extinguished. As of the current software release 11, this feature requires an Advanced user license. Control of the message via the Email Integration is controlled via communications between the Avaya Messaging Consolidated Server and the Email System. This requires that Consolidated server can communicate with the email system. The type of email determines the communication and security requirements. The Customer is responsible to DNS, certificates, IP addresses, routing, account configuration, etc. Only Avaya documented configurations will be implemented and supported. The Avaya Messaging will require special permissions in the Customer’s environment to work as designed. VOX Avaya Messaging Advanced Email Integration: Exchange, O365 Each type of email has specific requirements for integration This SOW only includes a single email integration with a single Domain Customer is responsible to configuring and allowing this required network traffic The Avaya Messaging system must be installed and messaging features working. Work with Customer to review and agree upon Avaya Messaging Email Integration Features and Functions included in implementation. Work with Customer to determine additional software required. Work with Customer to determine and configure network configuration for Avaya Messaging Server email integration Work with Customer to confirm remote access to Avaya Messaging server Work with Customer to confirm Avaya Messaging server and OS specifications Work with Customer to confirm UAC is disabled Work with Customer to confirm that antivirus is disabled Configure Avaya Messaging basic Email Integration parameters Work with Customer to test basic Email Integration features A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 22 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 26 Packet Pg. 250 of 911 PROPOSAL APPLICATION DEPLOYMENT DETAIL Work with Customer to determine configuration of test users Feature Groups and Mailboxes Work with Customer to add a test user group to Avaya Messaging Provide Customer with Avaya produced user guide VOX provided knowledge transfer for administration Avaya Messaging This statement of work is for implementation of the solution as specified. Manufacturer changes in software versions and hardware between SOW approval date and completion of the project are not covered in this statement of work. Customer Deliverables: Avaya Messaging Advanced Email Integration: Exchange, O365 Provide Approved Remote Access method via RDP VPN access that is compatible with the Avaya Provision Tool is required Return completed Avaya Messaging Planning Form to VOX Provide Email Integration information Add accounts and applications as required for Avaya Messaging Email Integration Disable UAC on Avaya Messaging server Disable Antivirus per Avaya Messaging design requirements Work with VOX when needed for discovery to program and implement the specified solution Attend Avaya Messaging KT Provide input from test user group Work with VOX to review and modify User, System, and Feature Group parameters Provide Avaya Messaging User Database in CSV or another compatible format o Usually requires First and Last Name o Extension number(s) o Email address(es) Customer is responsible for Email Integration including o Correct licenses and plans o Administrative, Web, and PowerShell access o Application registrations, permissions, and delegated permissions as required based on Avaya documentation o Special account(s) and permissions as required based on Avaya documentation o Special blocking or restriction considerations. Example: Sending to Distribution List Customer to provide DNS, SMTP, Certificates, IP addresses, etc. Provide test plan to confirm functionality required per solution specified Customer to provide onsite resource(s) for turn-up and test of Avaya Messaging Email Integration (unless otherwise specified – VOX onsite resource(s) - in this SOW when applicable. Changes to customer network or environment which were not part of discovery and planning for the project, and which cause delays in implementation, will push out dates and cut dates/times respectively. Additional charges may apply to accommodate unplanned changes made Avaya Messaging Advanced Email Integration: Exchange, O365 Newly requested items or features not included in this statement of work may be addressed via job change order or new project Customer is responsible for all network, Exchange, O365, Gmail, etc. changes required to allow and route from the Avaya Messaging and to its destinations. Required customer participants made available when requested All work is provided remotely unless specified otherwise in this SOW A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 23 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 27 Packet Pg. 251 of 911 PROPOSAL APPLICATION DEPLOYMENT DETAIL Avaya Messaging does not allow for modification of the header or body of the email notification. Exclusions for Avaya Messaging Advanced Email Integration: Exchange, O365 MS Active Directory Integration Certificate Management 3rd Party Certificates Enhanced Migration of data from AAM to Avaya Messaging Additional assumptions: Customer will allow VOX to connect a provided Provision laptop to network that has access to the AAM (MSS Store – not Exchange Store) and Avaya Messaging systems. VOX to provide Provision software. Provision laptop will have access to the internet This is for 1 migration event During this time we will test migrations in our lab to find out any caveats with the product o Caveats might be: PW migration limits, Auto Attendants, only primary greetings are migrated VOX Will: VOX to migrate data from AAM to Avaya Messaging using advanced provision software. o Use of Provision will require the ability to have a high-speed connection from an VOX laptop connected to the Customer’s network to each system. o Customer will allow VOX to connect VOX provided Provision laptop to network that has access to the Avaya Messaging to AAM systems. o Here is a list of items that will migrate: names, messages, passwords and personal operators. ASBCE Base Deployment ASBCE Base Deployment Standalone: VOX to provide the following tasks for a Standalone ASBCE: Provide OVA files for deployment Generate and install Avaya Product License Delivery System license file Perform installation of Session Boarder Controllers connect to LAN Perform installation of Element Management System server (if required for Front end Back end deployment.) Customer Deliverables: Customer network resources to be available to assist in an on call basis A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 24 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 28 Packet Pg. 252 of 911 PROPOSAL APPLICATION DEPLOYMENT DETAIL Provide current topology maps of WAN and LAN infrastructure IP addressing for SBC public, private and management networks Ensure NTP servers must have less than 5 strata drift Entries for all Avaya servers required on private DNS Public access for specific services requires public DNS entries VOX to provide high-level consultation only Changes to customer network or environment which were not part of discovery and planning for the project, and which cause delays in implementation, will push out dates and cut dates/times respectively. Additional charges may apply to accommodate unplanned changes made Network latency between Avaya Aura Session Manager severs must be less than 75 milliseconds at all times Assumptions: Upgrade of existing Core ASBCE and performing a backup/restore of current programming Breeze + Presence VOX Deliverables for Breeze + Presence Installation: Breeze Platform Perform discovery of deployment and administration data, and Avaya Systems in place (if applicable) Consult with customer to complete VOX Planning Form Require Customer Participants o Network Admin o Security Admin o DNS Admin o VMWare Admin Schedule Implementation and Administration Patch and integrate servers to supported releases based on environment IM and Presence Snap-in Verify that implementation prerequisites have been met (refer to TSS) SBC installation and configuration required for Remote Workers (configuration not included in this SOW) o SBC Presence administration included (SBC must already be in place) Work with customer to configure Zang account with IM Apple push notifications Configure inventory elements, Presence Domain, Users, etc… in SMGR (up to 100 users) Test Implementation and admin – including backup/restore Provide entries for 46xxsettings.txt for AADS dynamic configuration, as needed, in relation to IM/Presence VOX to provide up to 4 hours knowledge transfer for administration for topics including: o Breeze o Presence Snap-in o Basic troubleshooting o SIP Communication profiles This statement of work is for implementation of the solution as specified. Manufacturer changes in software versions and hardware between SOW approval date and completion of the project are not covered in this statement of work. Customer Deliverables for Basic Presence Installation: A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 25 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 29 Packet Pg. 253 of 911 PROPOSAL APPLICATION DEPLOYMENT DETAIL Provide Remote Access method Work with VOX when needed for discovery to program and implement the specified solution Ensure NTP servers have less than 5 strata drift Entries for all Avaya servers required on private DNS o VOX to advise on specific records required for Breeze and cluster Public access for specific services requires public DNS entries o VOX to provide high-level consultation only Provide test plan to confirm functionality required per solution specified Customer is responsible for settings files after post-cut testing (per customer’s test plan) Planning form to be completed and returned within 5 days of completed consultation Customer to provide onsite resource(s) for turn-up and test of phones (if applicable), unless VOX onsite resources are otherwise specified in this SOW Responsible for Network routing and firewall configurations needed (VOX to provide documentation on ports and requirements) Changes to customer network or environment which were not part of discovery and planning for the project, and which cause delays in implementation, may push out dates and cut dates/times respectively. Additional charges may apply to accommodate unplanned changes made Assumptions for Basic Presence Installation: Newly requested items or features not included in this statement of work may be addressed via job change order or new project See Assumptions Section in Customer Provided VMware section of this SOW for related exclusions/assumptions Installation is for a single Breeze server, cluster, and site for use with IX Workplace Attendant Snap-in/Client and integrated with a single Avaya Aura Media Server o A dedicated Avaya Media Server is required for this deployment, included in this SOW section Breeze will be installed in environment with releases of software supported by Avaya on servers with approved specifications Required customer participants are made available when requested All work is provided remotely unless specified otherwise in this SOW Exclusions for Basic Presence Installation: IX Workplace Client installation and setup Public Certificate Management SMGR LDAP integration (recommended) A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 26 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 30 Packet Pg. 254 of 911 PROPOSAL AVAYA UPGRADE & 3YR SUBSCRIPTION Prepared by:Prepared for:Quote Information: VOX Network Solutions City of Palo Alto Quote #: 033247 Tonja Marcus (650) 989-1054 tmarcus@voxns.com Palo Alto, CA 94301 SJ Park SJ.Park@CityofPaloAlto.org Version: 10 Delivery Date: 02/08/2023 Expiration Date: 03/31/2023 AVAYA - HARDWARE / SOFTWARE Description Price Qty Ext. Price 412786 S8300 R10.X ESXI R7.X LIC:DS $0.00 1 $0.00 412787 S8300E UPGRADE TO AVAYA AURA R10.X - ESXI R7.x LIC:CU $0.00 1 $0.00 405362641 POWER CORD USA $12.57 2 $25.14 700514264 ASP 110 DELL R640 SERVER PROFILE 3 WITH SESSION BORDER CONTROL $8,580.55 1 $8,580.55 405362641 POWER CORD USA $12.57 4 $50.28 413031 ASP 130 R5 ESXI R7.X LIC:DS $0.00 2 $0.00 700515842 ASP 130 R5 VMW7 DELL R640 SERVER P2 BUNDLE $8,087.14 1 $8,087.14 700515845 ASP 130 R5 VMW7 DELL R640 SERVER P5 BUNDLE $20,691.43 1 $20,691.43 700406416 CABLE ASSEMBLY B25A 25 FEET RHS $25.15 6 $150.90 381276 APPLIANCE VIRTUAL PLTFRM R7+ SINGLE CPU EMBEDDED SERVER LIC:SR $200.00 1 $200.00 405362641 POWER CORD USA $12.57 2 $25.14 700394703 MM716 ANALOG MEDIA MODULE 24 FXS RHS $2,300.00 6 $13,800.00 700506955 G450 MP160 MEDIA GATEWAY $8,069.63 1 $8,069.63 700507394 G450 R2 POWER SUPPLY $683.33 1 $683.33 405362641 POWER CORD USA $12.57 2 $25.14 413031 ASP 130 R5 ESXI R7.X LIC:DS $0.00 1 $0.00 A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 27 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 31 Packet Pg. 255 of 911 PROPOSAL AVAYA - HARDWARE / SOFTWARE Description Price Qty Ext. Price 700515843 ASP 130 R5 VMW7 DELL R640 SERVER P3 BUNDLE $9,767.18 1 $9,767.18 700515840 S8300E PRELOADED TAA $2,733.33 1 $2,733.33 Subtotal:$72,889.19 CALERO SOFTWARE Description Price Qty Ext. Price BNI250 Increment of 250 extensions on any base model size $2,556.67 1 $2,556.67 Subtotal:$2,556.67 TELSTRAT SUPPORT - 3YR PRE-PAY Description Price Qty Ext. Price MAINT-ENG-REC- 01 RECORDING - LIABILITY RECORDING 3 YR PP $196.88 42 $8,268.96 MAINT-ENG-10 RECORDING - CONCURRENT LICENSE 3 YR PP $160.31 8 $1,282.48 Subtotal:$9,551.44 XIMA SUPPORT - 3YR PRE-PAY Description Price Qty Ext. Price XC-8X5-R STANDARD XIMA CARE SUPPORT CONTRACT 3YR PP $800.00 3 $2,400.00 Subtotal:$2,400.00 AVAYA ONECLOUD SUBSCRIPTION ANNUAL - 1 OF 3 YEAR TERM Description Recurring Qty Ext. Recurring 405416 UC BASIC LICENSE FIXED SUBS ADJ LP $54.00 45 $2,430.00 405416 UC BASIC LICENSE FIXED SUBS ADJ LP $26.40 207 $5,464.80 A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 28 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 32 Packet Pg. 256 of 911 PROPOSAL AVAYA ONECLOUD SUBSCRIPTION ANNUAL - 1 OF 3 YEAR TERM Description Recurring Qty Ext. Recurring 405418 UC CORE LICENSE FIXED SUBS ADJ LP $38.85 1184 $45,998.40 408030 3RD PARTY CTI LICENSE FIXED SUBS ADJ LP $2.74 164 $449.36 Annual Subtotal:$54,342.56 AVAYA SA SUPPORT - 1 OF 3 YEAR TERM Description Recurring Qty Ext. Recurring 284959J SA PREFER SUPT CO-DEL AVAYA DIAGONSTIC SRVR SAL GATEWAY OVA $0.00 1 $0.00 284962 UPGRADE ADVANTAGE AVAYA DIAGONSTIC SERVER SLA MON OVA $0.00 1 $0.00 352445J SA PREFER SUPT CO-DEL UPG SM R10 TRACKING $0.00 1 $0.00 352441J SA PREFER SUPT CO-DEL UPG AES R10 TRACKING $0.00 1 $0.00 352444J SA PREFER SUPT CO-DEL UPG SBC R10 TRACKING $0.00 1 $0.00 284961J SA PREFER SUPT CO-DEL AVAYA DIAGONSTIC SERVER SLA MON OVA $0.00 1 $0.00 352504J SA PREFER SUPT CO-DEL S8300E R10.X ESXI R7.X 3YR AN PREPD $298.80 1 $298.80 352504J SA PREFER SUPT CO-DEL S8300E R10.X ESXI R7.X 3YR AN PREPD $298.80 1 $298.80 352510J SA PREFER SUPT CO-DEL ASP 130 R5 ESXI R7.X 3YR AN PREPD $262.95 2 $525.90 255853 SA ON-SITE 24X7 SUPT APPL MEDIUM SRV R2-D 3YR AN PREPD $1,188.00 1 $1,188.00 255853 SA ON-SITE 24X7 SUPT APPL MEDIUM SRV R2-D 3YR AN PREPD $1,188.00 1 $1,188.00 256196 SA ON-SITE 24X7 SUPT APPL LARGE SRV R2-D 3YR AN PREPD $2,376.00 1 $2,376.00 352341J SUPT ADV PREFERRED CO-DELIVERY REMOTE SITE TRACKING AURA R10 $0.00 1 $0.00 293650J SA PREFER SUPT CO-DEL AAVP R7 SINGLE CPU EMBD SRV 3YR AN PREPD $43.05 1 $43.05 293656 UPGRADE ADVANTAGE AAVP R7 SINGLE CPU EMBD SRV 3YR AN PREPD $0.00 1 $0.00 352341J SUPT ADV PREFERRED CO-DELIVERY REMOTE SITE TRACKING AURA R10 $0.00 1 $0.00 352510J SA PREFER SUPT CO-DEL ASP 130 R5 ESXI R7.X 3YR AN PREPD $271.43 1 $271.43 A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 29 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 33 Packet Pg. 257 of 911 PROPOSAL AVAYA SA SUPPORT - 1 OF 3 YEAR TERM Description Recurring Qty Ext. Recurring 230194 SA ON-SITE 24X7 SUPT CM MEDIUM GATEWAY 3YR AN PREPD $817.55 1 $817.55 255853 SA ON-SITE 24X7 SUPT APPL MEDIUM SRV R2-D 3YR AN PREPD $1,226.32 1 $1,226.32 352341J SUPT ADV PREFERRED CO-DELIVERY REMOTE SITE TRACKING AURA R10 $0.00 1 $0.00 Annual Subtotal:$8,233.85 MANAGED SERVICES SUPPORT - 1 OF 3 YEAR TERM Description Recurring Qty Ext. Recurring VX-VMS- GP21321 VOX MANAGED SERVICES - ANNUAL $25,590.86 1 $25,590.86 Annual Subtotal:$25,590.86 AVAYA ONECLOUD SUBSCRIPTION ANNUAL - 2 OF 3 YEAR TERM Description Recurring Price Qty Ext. Recurring Ext. Price 405416 UC BASIC LICENSE FIXED SUBS ADJ LP $54.00 $0.00 45 $2,430.00 $0.00 405416 UC BASIC LICENSE FIXED SUBS ADJ LP $26.40 $0.00 207 $5,464.80 $0.00 405418 UC CORE LICENSE FIXED SUBS ADJ LP $38.85 $0.00 1184 $45,998.40 $0.00 408030 3RD PARTY CTI LICENSE FIXED SUBS ADJ LP $2.74 $0.00 164 $449.36 $0.00 Annual Subtotal:$54,342.56 Subtotal:$0.00 AVAYA SA SUPPORT - 2 OF 3 YEAR TERM Description Recurring Qty Ext. Recurring 284959J SA PREFER SUPT CO-DEL AVAYA DIAGONSTIC SRVR SAL GATEWAY OVA $0.00 1 $0.00 284962 UPGRADE ADVANTAGE AVAYA DIAGONSTIC SERVER SLA MON OVA $0.00 1 $0.00 A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 30 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 34 Packet Pg. 258 of 911 PROPOSAL AVAYA SA SUPPORT - 2 OF 3 YEAR TERM Description Recurring Qty Ext. Recurring 352445J SA PREFER SUPT CO-DEL UPG SM R10 TRACKING $0.00 1 $0.00 352441J SA PREFER SUPT CO-DEL UPG AES R10 TRACKING $0.00 1 $0.00 352444J SA PREFER SUPT CO-DEL UPG SBC R10 TRACKING $0.00 1 $0.00 284961J SA PREFER SUPT CO-DEL AVAYA DIAGONSTIC SERVER SLA MON OVA $0.00 1 $0.00 352504J SA PREFER SUPT CO-DEL S8300E R10.X ESXI R7.X 3YR AN PREPD $298.80 1 $298.80 352504J SA PREFER SUPT CO-DEL S8300E R10.X ESXI R7.X 3YR AN PREPD $298.80 1 $298.80 352510J SA PREFER SUPT CO-DEL ASP 130 R5 ESXI R7.X 3YR AN PREPD $271.43 2 $542.86 255853 SA ON-SITE 24X7 SUPT APPL MEDIUM SRV R2-D 3YR AN PREPD $1,226.32 1 $1,226.32 255853 SA ON-SITE 24X7 SUPT APPL MEDIUM SRV R2-D 3YR AN PREPD $1,226.32 1 $1,226.32 256196 SA ON-SITE 24X7 SUPT APPL LARGE SRV R2-D 3YR AN PREPD $2,452.65 1 $2,452.65 352341J SUPT ADV PREFERRED CO-DELIVERY REMOTE SITE TRACKING AURA R10 $0.00 1 $0.00 293650J SA PREFER SUPT CO-DEL AAVP R7 SINGLE CPU EMBD SRV 3YR AN PREPD $44.44 1 $44.44 293656 UPGRADE ADVANTAGE AAVP R7 SINGLE CPU EMBD SRV 3YR AN PREPD $0.00 1 $0.00 352341J SUPT ADV PREFERRED CO-DELIVERY REMOTE SITE TRACKING AURA R10 $0.00 1 $0.00 352510J SA PREFER SUPT CO-DEL ASP 130 R5 ESXI R7.X 3YR AN PREPD $271.43 1 $271.43 230194 SA ON-SITE 24X7 SUPT CM MEDIUM GATEWAY 3YR AN PREPD $817.55 1 $817.55 255853 SA ON-SITE 24X7 SUPT APPL MEDIUM SRV R2-D 3YR AN PREPD $1,226.32 1 $1,226.32 352341J SUPT ADV PREFERRED CO-DELIVERY REMOTE SITE TRACKING AURA R10 $0.00 1 $0.00 Annual Subtotal:$8,405.49 MANAGED SERVICES SUPPORT - 2 OF 3 YEAR TERM Description Recurring Qty Ext. Recurring VX-VMS- GP21321 VOX MANAGED SERVICES - ANNUAL $25,590.86 1 $25,590.86 A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 31 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 35 Packet Pg. 259 of 911 PROPOSAL MANAGED SERVICES SUPPORT - 2 OF 3 YEAR TERM Description Recurring Qty Ext. Recurring Annual Subtotal:$25,590.86 AVAYA ONECLOUD SUBSCRIPTION ANNUAL - 3 OF 3 YEAR TERM Description Recurring Qty Ext. Recurring 405416 UC BASIC LICENSE FIXED SUBS ADJ LP $54.00 45 $2,430.00 405416 UC BASIC LICENSE FIXED SUBS ADJ LP $26.40 207 $5,464.80 405418 UC CORE LICENSE FIXED SUBS ADJ LP $38.85 1184 $45,998.40 408030 3RD PARTY CTI LICENSE FIXED SUBS ADJ LP $2.74 164 $449.36 Annual Subtotal:$54,342.56 AVAYA SA SUPPORT - 3 OF 3 YEAR TERM Description Recurring Qty Ext. Recurring 284959J SA PREFER SUPT CO-DEL AVAYA DIAGONSTIC SRVR SAL GATEWAY OVA $0.00 1 $0.00 284962 UPGRADE ADVANTAGE AVAYA DIAGONSTIC SERVER SLA MON OVA $0.00 1 $0.00 352445J SA PREFER SUPT CO-DEL UPG SM R10 TRACKING $0.00 1 $0.00 352441J SA PREFER SUPT CO-DEL UPG AES R10 TRACKING $0.00 1 $0.00 352444J SA PREFER SUPT CO-DEL UPG SBC R10 TRACKING $0.00 1 $0.00 284961J SA PREFER SUPT CO-DEL AVAYA DIAGONSTIC SERVER SLA MON OVA $0.00 1 $0.00 352504J SA PREFER SUPT CO-DEL S8300E R10.X ESXI R7.X 3YR AN PREPD $298.80 1 $298.80 352504J SA PREFER SUPT CO-DEL S8300E R10.X ESXI R7.X 3YR AN PREPD $298.80 1 $298.80 352510J SA PREFER SUPT CO-DEL ASP 130 R5 ESXI R7.X 3YR AN PREPD $271.43 2 $542.86 255853 SA ON-SITE 24X7 SUPT APPL MEDIUM SRV R2-D 3YR AN PREPD $1,226.32 1 $1,226.32 255853 SA ON-SITE 24X7 SUPT APPL MEDIUM SRV R2-D 3YR AN PREPD $1,226.32 1 $1,226.32 A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 32 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 36 Packet Pg. 260 of 911 PROPOSAL AVAYA SA SUPPORT - 3 OF 3 YEAR TERM Description Recurring Qty Ext. Recurring 256196 SA ON-SITE 24X7 SUPT APPL LARGE SRV R2-D 3YR AN PREPD $2,452.65 1 $2,452.65 352341J SUPT ADV PREFERRED CO-DELIVERY REMOTE SITE TRACKING AURA R10 $0.00 1 $0.00 293650J SA PREFER SUPT CO-DEL AAVP R7 SINGLE CPU EMBD SRV 3YR AN PREPD $44.44 1 $44.44 293656 UPGRADE ADVANTAGE AAVP R7 SINGLE CPU EMBD SRV 3YR AN PREPD $0.00 1 $0.00 352341J SUPT ADV PREFERRED CO-DELIVERY REMOTE SITE TRACKING AURA R10 $0.00 1 $0.00 352510J SA PREFER SUPT CO-DEL ASP 130 R5 ESXI R7.X 3YR AN PREPD $271.43 1 $271.43 230194 SA ON-SITE 24X7 SUPT CM MEDIUM GATEWAY 3YR AN PREPD $817.55 1 $817.55 255853 SA ON-SITE 24X7 SUPT APPL MEDIUM SRV R2-D 3YR AN PREPD $1,226.32 1 $1,226.32 352341J SUPT ADV PREFERRED CO-DELIVERY REMOTE SITE TRACKING AURA R10 $0.00 1 $0.00 Annual Subtotal:$8,405.49 MANAGED SERVICES SUPPORT - YEAR 3 OF 3 YEAR TERM Description Recurring Qty Ext. Recurring VX-VMS- GP21321 VOX MANAGED SERVICES - ANNUAL $25,590.86 1 $25,590.86 Annual Subtotal:$25,590.86 PROFESSIONAL SERVICES Description Price Qty Ext. Price VX-VPS-GP21321 Professional Services $85,237.266 1 $85,237.266 VX-VPS-PL8999 PROJECT-NCPA Pricing $12,515.00 1 $12,515.00 Subtotal:$97,752.27 A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 33 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 37 Packet Pg. 261 of 911 PROPOSAL SUMMARY Description Recurring One-Time AVAYA - HARDWARE / SOFTWARE $0.00 $72,889.19 CALERO SOFTWARE $0.00 $2,556.67 TELSTRAT SUPPORT - 3YR PRE-PAY $0.00 $9,551.44 XIMA SUPPORT - 3YR PRE-PAY $0.00 $2,400.00 AVAYA ONECLOUD SUBSCRIPTION ANNUAL - 1 OF 3 YEAR TERM $54,342.56 $0.00 AVAYA SA SUPPORT - 1 OF 3 YEAR TERM $8,233.85 $0.00 MANAGED SERVICES SUPPORT - 1 OF 3 YEAR TERM $25,590.86 $0.00 AVAYA ONECLOUD SUBSCRIPTION ANNUAL - 2 OF 3 YEAR TERM $54,342.56 $0.00 AVAYA SA SUPPORT - 2 OF 3 YEAR TERM $8,405.49 $0.00 MANAGED SERVICES SUPPORT - 2 OF 3 YEAR TERM $25,590.86 $0.00 AVAYA ONECLOUD SUBSCRIPTION ANNUAL - 3 OF 3 YEAR TERM $54,342.56 $0.00 AVAYA SA SUPPORT - 3 OF 3 YEAR TERM $8,405.49 $0.00 MANAGED SERVICES SUPPORT - YEAR 3 OF 3 YEAR TERM $25,590.86 $0.00 PROFESSIONAL SERVICES $0.00 $97,752.27 Subtotal:$264,845.09 $185,149.57 Shipping:$5,388.61 Total:$264,845.09 $190,538.18 Project Total:$455,383.27 VOX Network Solutions City of Palo Alto Signature: Name: Title: Date:02/08/2023 Signature: Name: Date: PAYMENT TERMS A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 34 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 38 Packet Pg. 262 of 911 PROPOSAL PAYMENT TERMS Avaya Subscription Terms Avaya Subscription Termination Policy The Customer may terminate a subscription in its entirety during the Subscription License Term upon thirty (30) days’ written notice subject to termination fees equal to 50% of the remaining unpaid balance of the Subscription License Term. Please note that that for Workforce Engagement, customer can terminate after 28 months of subscription contract and the termination fees equal are 60% of the remaining unpaid balance of the Subscription License Term. Avaya Subscription Start Dates Unless an earlier date is specified in an order, the Subscription License Term for the Subscription License(s) will commence and be chargeable as follows: New System Builds: Term will commence on the first day of the second month following the order of the Subscription Licenses. Conversions to Subscription: If the Subscription Licenses are replacing existing perpetual licenses being transitioned from an existing support order, the Subscription License Term starts on the start date specified on the Order. Additions to Subscription terms in progress: Additional Subscription Licenses being added to an existing Subscription License Term are added to the Subscription Term effective on the earlier of the date stated on the order or the 1st day of the first month following Avaya’s acceptance of the order for additional Subscription Licenses. Additional Subscription Licenses added to an existing Subscription License Term will coterminate with the original contract regardless of when in the term they are added to the contract. Renewal of Coverage Avaya OneCloud™ Subscription Licensing will automatically renew at the end of the term for a similar term length at then current pricing unless either party provides written notice of its intent not to renew such coverage at least *30 days prior to the renewal date. All Avaya OneCloud™ Subscription Orders receive the offer entitlements outlined in the Subscription License Supplement, the latest version of which is available for download at https://support.avaya.com/helpcenter/getGenericDetails?detailId=C2012112916262543043 Expansion Allowance: Avaya Subscription includes a 20% expansion allowance which can be leveraged during the contract period without impact to the billing. Customers can also expand beyond the 20% allowance by ordering additional Avaya OneCloud™ Subscription licenses and co-terming to the existing contract expiration dates. Expansion allowance is supported in accordance with Avaya’s Product Lifecycle Policy found at https://downloads.avaya.com/css/P8/documents/100081098 Exceptions to 20% Stretch Allowance: 20% Stretch Allowance is not applied to BTSAPI, DMCC, and DMCC Full entitlements that carry over as part of a perpetual license conversion at no fee. 20% Stretch Allowance does not apply to system/server-based offers such as AES CVLAN, AES DLG, and Outbound Digital Channels (SMS/Email) as it’s not practical to offer a fraction of a package’s entitlement. A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 35 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 39 Packet Pg. 263 of 911 PROPOSAL PAYMENT TERMS 20% Stretch allowance does not apply to subscription conversions for product releases that are End of Sale for license additions. Additional Terms TAX and Shipping/Handling will be added at time of invoice: not included in this SOW/Quote. VOX Network Solutions, Inc. PROPRIETARY AND CONFIDENTIAL. All information contained herein is confidential and the proprietary information of VOX Network Solutions, Inc. Disclosure of any information contained herein to any other party is strictly prohibited. A Waterfield Company www.waterfieldtech.com (650) 989-1000 110 S Hartford Ave Suite 2502 Tulsa, 74120 Page: 36 of 36 Item 18 Attachment A - Contract with VOX, C23187554 Item 18: Staff Report Pg. 40 Packet Pg. 264 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: City Manager Meeting Date: June 19, 2023 Report #:2306-1635 TITLE Approval and authorization to execute contract Amendment No. 2 with the OIR Group for an additional two-year period and an additional $105,000 for a new not-to-exceed amount of $212,500 for independent police auditing services with a new expiration date of January 1, 2025. RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager to execute contract Amendment No. 2 with the OIR Group for an additional two-year period and an additional $105,000 for a new not-to-exceed amount of $212,500 for independent police auditing services with a new expiration date of January 1, 2025 (Attachment A). BACKGROUND Since approximately 2006, Palo Alto has contracted with an outside firm to act as Independent Police Auditor (IPA). The IPA performs several functions for Palo Alto. First, the IPA provides independent review of PAPD internal affairs investigations. Department management confers with IPA periodically as investigations are opened and in process. When the Department’s investigation is complete, the IPA conducts a secondary review and assesses “thoroughness, objectivity and appropriateness” of the investigation and disposition. Where appropriate, the IPA provides recommendations for training, procedural adjustments or other follow-up actions. In 2014, the City issued a Request for Proposals for independent police auditor services. Three firms submitted proposals. The City selected the Michael Gennaco dba Office of Independent Review (OIR Group) as the most qualified to perform the services. The contract between the City and the OIR Group expired in October 2019 and was bid again at that time and OIR Group was awarded the contract again. The 2019 contract1 was amended in July 2021 as a culmination of expanded contract scope for the IPA that stemmed from the City’s race and equity efforts over the previous year. Link to the updated scope Amendment No. 1: 1 2019 Contract and Staff report: https://www.cityofpaloalto.org/files/assets/public/police- department/accountability/cmr10924-oir-contract.pdf Item 19 Item 19 Staff Report Item 19: Staff Report Pg. 1 Packet Pg. 265 of 911 https://www.cityofpaloalto.org/files/assets/public/police-department/accountability/oir- contract-s20178065-amendment-one.pdf). Amendment No. 1 also intended to add travel to the contract amount, though that was inadvertently left out of the not-to-exceed total. ANALYSIS This Amendment No. 2 corrects the not-to-exceed amount to account for travel for the two planned visits annually with OIR at City Council. It also extends the contract for two additional years with the correct base contract amount given the updated scope. Lastly, it adds an additional $10,000 for additional services if needed by the City during the contract period. The outline below identifies the historic and expected annual expenditures by type and amount under the Agreement, including Amendments No. 1 and 2. All dates refer to calendar years: Calendar Year 2020 •Basic services compensated at rate of $25,000, resulting in $25,000 in total 2020 compensation paid. Calendar Year 2021 (Amendment 1 effective approximately July 1, 2021) •January 1, 2021 through June 30, 2021, basic services compensated at rate of $25,000 annually, resulting in $12,500 in compensation paid for six months of services. •July 1, 2021 through December 31, 2021, basic services rate increased to $40,000 annually to reflect additional scope, resulting in $20,000 in compensation paid for six months of services. Total 2021 compensation paid: $32,500 Calendar Year 2022 •Basic services compensated at rate of $40,000, resulting in $40,000 in compensation paid. •Reimbursable travel – two in-person appearances at Council in spring and fall 2022 •Additional services – Consulting project #1 (Recruitment and Hiring) initiated, with task order budgeted at $10,000. Total 2022 Compensation paid: $45,000 without additional services or up to $55,000 if additional project services are assigned. Calendar Year 2023 •Basic services compensated at rate of $40,000, expected to result in $40,000 in compensation paid. •Reimbursable travel – two in-person appearances at Council expected, in spring and fall 2023. •Additional services – Consulting project #1 (Recruitment and Hiring) completed. $10,000 remaining for Additional Services if desired by City Item 19 Item 19 Staff Report Item 19: Staff Report Pg. 2 Packet Pg. 266 of 911 Total 2023 planned Compensation: $45,000 without additional services or up to $55,000 if additional project services are assigned. Calendar Year 2024 •Basic services compensated at rate of $40,000, expected to result in $40,000 in compensation paid. •Reimbursable travel – two in-person appearances at Council expected, in spring and fall 2024 Total 2024 planned Compensation: $45,000 RESOURCE IMPACT Departmental budgets include adequate funding for this contract. ENVIRONMENTAL REVIEW Approval of this contract is not a project for the purposes of the California Environmental Quality Act. See CEQA Guidelines 15378(b)(5): administrative activities that will not result in direct or indirect physical changes in the environment. ATTACHMENTS Attachment A: Amendment No. 2 with OIR Group for IPA services APPROVED BY: Ed Shikada, City Manager Item 19 Item 19 Staff Report Item 19: Staff Report Pg. 3 Packet Pg. 267 of 911 Vers.: Aug. 5, 2019 Page 1 of 6 AMENDMENT NO. TWO TO CONTRACT NO. S20178065 BETWEEN THE CITY OF PALO ALTO AND MICHAEL GENNACO DBA OIR GROUP This Amendment No. 2 (this “Amendment”) to Contract No. S20178065 (the “Contract” as defined below) is entered into as of January 1, 2023, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and MICHAEL GENNACO DBA OIR GROUP, a sole proprietor, located at 7142 Trask Avenue, Playa Del Rey, CA, 90293 (“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 professional services, as detailed therein. B. The Parties now wish to amend the Contract in order to increase compensation by One Hundred Ten Thousand Dollars ($110,000) from One Hundred Seven Thousand Five Hundred Dollars ($107,500) to a new not to exceed amount of Two Hundred Seventeen Thousand Five Hundred Dollars ($217,500); extend the term for two (2) additional years, from January 1, 2023 through January 1, 2025; and correct a clerical omission regarding reimbursable expenses. 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. C20178065 between CONSULTANT and CITY, dated December 16, 2019, as amended by: Amendment No. 1, dated July 20, 2021 b. Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. SECTION 2. Section 2 “TERM” of the Contract is hereby amended to read as follows: “The term of this Agreement shall be from the date of its full execution through January 1, 2025, unless terminated earlier pursuant to Section 19 of this Agreement.” SECTION 3. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to read as follows: DocuSign Envelope ID: C037561D-DA65-4F83-913E-66310DBEA859 Item 19 Attachment A - Amendment No. 2 with OIR Group for IPA Services Item 19: Staff Report Pg. 4 Packet Pg. 268 of 911 Vers.: Aug. 5, 2019 Page 2 of 6 The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit “A” (also referred to herein as the “Basic Services”), and reimbursable expenses (if specified in Exhibit “C”), (“Basic Services”), and reimbursable expenses, shall not exceed One Hundred Ninety-Two Thousand Five Hundred Dollars ($192,500). In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to-exceed compensation amount of Twenty Thousand Dollars ($20,000) for the performance of Additional Services. CONSULTANT agrees to complete all Basic Services, including specified reimbursable expenses, within this amount. In the event Additional Services (defined below) are authorized, the total compensation for Basic Services, Additional Services and specified reimbursable expenses shall not exceed Two Hundred Twelve Thousand Five Hundred Dollars ($212,500). The applicable rate schedule is set out at Exhibit “C-1”, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amounts of compensation set forth herein shall be at no cost to the CITY. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit “C”. CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit “A”. SECTION 4. The following exhibit(s) to the Contract is/are hereby amended or added, as indicated below, to read as set forth in the attachment(s) to this Amendment, which is/are hereby incorporated in full into this Amendment and into the Contract by this reference: a. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE”, AMENDED, REPLACES PREVIOUS. b. Exhibit “C” entitled “COMPENSATION”, AMENDED, REPLACES PREVIOUS. Legal Effect. Except as modified by this Amendment, all other provisions of the Contract, including any exhibits thereto, shall remain in full force and effect. SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. (SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.) DocuSign Envelope ID: C037561D-DA65-4F83-913E-66310DBEA859 Item 19 Attachment A - Amendment No. 2 with OIR Group for IPA Services Item 19: Staff Report Pg. 5 Packet Pg. 269 of 911 Vers.: Aug. 5, 2019 Page 3 of 6 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 MICHAEL GENNACO DBA OIR GROUP By:______________________________ Name:___________________________ Title:____________________________ Attachments: EXHIBIT “B”: SCHEDULE OF PERFORMANCE (AMENDED, REPLACES PREVIOUS) EXHIBIT “C”: COMPENSATION (AMENDED, REPLACES PREVIOUS) DocuSign Envelope ID: C037561D-DA65-4F83-913E-66310DBEA859 Michael Gennaco Principal, OIR Group Item 19 Attachment A - Amendment No. 2 with OIR Group for IPA Services Item 19: Staff Report Pg. 6 Packet Pg. 270 of 911 Vers.: Aug. 5, 2019 Page 4 of 6 EXHIBIT “B” SCHEDULE of PERFORMANCE (AMENDED, REPLACES PREVIOUS) Consultant shall complete reports for calendar years 2020, 2021, 2022, 2023 and 2024. Beginning in calendar year 2023, the following additional specific schedule shall apply: In calendar year 2023, CONSULTANT shall complete two reports, for publication in approximately February/March and August 2023, containing all matters completed since the last published report. In calendar year 2024, CONSULTANT shall complete two reports, for publication in approximately February/March and August 2024, containing all matters completed since the last published report. DocuSign Envelope ID: C037561D-DA65-4F83-913E-66310DBEA859 Item 19 Attachment A - Amendment No. 2 with OIR Group for IPA Services Item 19: Staff Report Pg. 7 Packet Pg. 271 of 911 Vers.: Aug. 5, 2019 Page 5 of 6 EXHIBIT “C” COMPENSATION (AMENDED, REPLACES PREVIOUS) CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed up to the not-to-exceed amount of: Fifteen Thousand Dollars ($15,000). A. Travel from CONSULTANT’S office to Palo Alto City Hall, including transportation and meals, if specified as reimbursable, will be reimbursed at actual cost subject to the City of Palo Alto’s policy for reimbursement of travel and meal expenses. All requests for reimbursement of expenses, if any are specified as reimbursable under this section, shall be accompanied by appropriate backup documentation and information. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-1. The additional services scope, DocuSign Envelope ID: C037561D-DA65-4F83-913E-66310DBEA859 Item 19 Attachment A - Amendment No. 2 with OIR Group for IPA Services Item 19: Staff Report Pg. 8 Packet Pg. 272 of 911 Vers.: Aug. 5, 2019 Page 6 of 6 schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. SCHEDULE OF EXPENDITURES For the convenience of the Parties, the following identifies the historic and expected annual expenditures by type and amount under the Agreement, including Amendments One and Two. All dates refer to calendar years: 2020 • Basic services compensated at rate of $25,000, resulting in $25,000 in compensation paid. 2021 (Amendment One effective approximately July 1, 2021) • January 1, 2021 through June 30, 2021, basic services compensated at rate of $25,000 annually, resulting in $12,500 in compensation paid for six months of services. • July 1, 2021 through December 31, 2021, basic services rate increased to $40,000 annually to reflect additional scope, resulting in $20,000 in compensation paid for six months of services. 2022 • Basic services compensated at rate of $40,000, resulting in $40,000 in compensation paid. • Reimbursable travel – two in-person appearances at Council in spring and fall 2022 • Additional services – Consulting project #1 (Recruitment and Hiring) initiated, with task order budgeted at $10,000. 2023 • Basic services compensated at rate of $40,000, expected to result in $40,000 in compensation paid. • Reimbursable travel – two in-person appearances at Council expected, in spring and fall 2023. • Additional services – Consulting project #1 (Recruitment and Hiring) completed. $10,000 remaining for Additional Services if desired by City. 2024 • Basic services compensated at rate of $40,000, expected to result in $40,000 in compensation paid. • Reimbursable travel – two in-person appearances at Council expected, in spring and fall 2024 DocuSign Envelope ID: C037561D-DA65-4F83-913E-66310DBEA859 Item 19 Attachment A - Amendment No. 2 with OIR Group for IPA Services Item 19: Staff Report Pg. 9 Packet Pg. 273 of 911 Certificate Of Completion Envelope Id: C037561DDA654F83913E66310DBEA859 Status: Completed Subject: Complete with DocuSign: S20178065 Amendment no. 2 final approved.pdf Source Envelope: Document Pages: 6 Signatures: 1 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 6/7/2023 11:51:25 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 Michael Gennaco michael.gennaco@oirgroup.com Principal, OIR Group Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 104.174.143.23 Sent: 6/7/2023 11:53:31 AM Viewed: 6/7/2023 11:58:32 AM Signed: 6/7/2023 11:59:02 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign In Person Signer Events Signature Timestamp Editor Delivery Events Status Timestamp Agent Delivery Events Status Timestamp Intermediary Delivery Events Status Timestamp Certified Delivery Events Status Timestamp Carbon Copy Events Status Timestamp Chantal Gaines Chantal.Gaines@CityofPaloAlto.org Assistant to City Manager City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 6/7/2023 11:59:03 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Ingrid Velasquez Ingrid.Velasquez@CityofPaloAlto.org Administrative Assistant City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 6/7/2023 11:59:03 AM Viewed: 6/8/2023 9:01:33 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Item 19 Attachment A - Amendment No. 2 with OIR Group for IPA Services Item 19: Staff Report Pg. 10 Packet Pg. 274 of 911 Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 6/7/2023 11:53:31 AM Certified Delivered Security Checked 6/7/2023 11:58:32 AM Signing Complete Security Checked 6/7/2023 11:59:02 AM Completed Security Checked 6/7/2023 11:59:03 AM Payment Events Status Timestamps Item 19 Attachment A - Amendment No. 2 with OIR Group for IPA Services Item 19: Staff Report Pg. 11 Packet Pg. 275 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Community Services Meeting Date: June 19, 2023 Report #:2306-1601 TITLE Approval of Amendment Number 3 to the Agreement With Palo Alto Unified School District (PAUSD) for PAUSD Athletic Field Brokering and Maintenance Cost-sharing to Extend the Term to June 30, 2024, with an Optional Extension for an Additional Six Months; CEQA status – categorically exempt (Regulation 15301). RECOMMENDATION Staff recommends that City Council approve and authorize the City Manager to execute Amendment No. 3 (Attachment A) to the Agreement1 Between the City of Palo Alto and the Palo Alto Unified School District of Santa Clara County Concerning the Public Use, Brokering and Maintenance of District-Owned Athletic Fields, Tennis Courts, and Basketball Courts Jointly Used By School Students and the General Public (Agreement) to extend the term to cover the period July 1, 2022 through June 30, 2024, with an optional extension of an additional six months. EXECUTIVE SUMMARY The City and PAUSD have partnered since 1995 for the maintenance of select school athletic fields for joint school and community use of the fields through a cost sharing agreement. The initial agreement has been modified and renewed multiple times with revisions to capital improvements, revenue sharing of field brokering fees, and priority use dates and times. The partnership provides field maintenance and facilitates field use during school and athletic activity hours and community use during late afternoon, evenings, and weekends. City and PAUSD staff have met several times over the past year to discuss extending the terms and prioritization of tennis court hours. Both parties have come to an agreement on Amendment No. 3 to extend the partnership through June 30, 2024, with an optional six-month extension 1 City Council June 25, 2018; SR 9278; Agreement as Attachment B https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2018/id-9278.pdf Item 20 Item 20 Staff Report Item 20: Staff Report Pg. 1 Packet Pg. 276 of 911 BACKGROUND Beginning in 1993, the City and PAUSD staff met to discuss a possible partnership for the maintenance and public use of PAUSD athletic fields. In 1995, the City and PAUSD entered into an Agreement for the City to maintain select PAUSD athletic fields for both school and community use with both parties contributing an equal share of the costs. The Agreement also included an equal cost share for capital improvements to athletic fields. The agreement has since been revised several times and no longer includes a cost share for capital improvements. The cost of capital improvements is now fully incurred by PAUSD. The Agreement encompasses the maintenance and brokering of the athletic fields at 13 elementary schools and three middle schools, and tennis courts at five PAUSD schools. The City manages the brokering of PAUSD athletic fields and tennis courts for public community use outside of school activity hours. Revenue received from renting PAUSD athletic fields and courts is shared between both parties with the City retaining 60% and PAUSD retaining 40% of revenue. The Agreement provides for the continued maintenance of school district fields at all PAUSD elementary schools, as well as the fields at Jane Lathrop Stanford (JLS) and Frank S. Greene, Jr. (Greene) Middle Schools. The maintenance of turf areas includes mowing, edging, de-thatching, reseeding, aeration, and maintenance of irrigation heads, valves, and controllers. The fields at Ellen Fletcher (Fletcher) Middle School are not part of this agreement as these fields are dedicated parkland (Terman Park) and are maintained in a manner consistent with City Park maintenance standards. The Agreement also provides for the maintenance of tennis courts and basketball courts at JLS, Greene, and Fletcher Middle Schools, and at Henry M. Gunn and Palo Alto High Schools. This work includes periodic sweeping of the court surfaces and washing during the summer months. The City brokers the fields, tennis courts, and basketball courts in accordance with the Council- approved Field Use Policy2. This policy is intended to ensure residents, both youth and adults, have fair access to PAUSD and City-owned fields and athletic facilities. The criteria incorporated into the Field Use Policy helps ensure Palo Alto youth and non-profit sports clubs have top priority access to field space for practice and competition. The City places a high priority on the maintenance and safety of school playing fields to ensure the community has access to athletic fields and courts for physical fitness and recreation. This Agreement will continue the City’s commitment to provide quality turf and court surfaces. 2 City of Palo Alto Field and Court Use Policy https://www.cityofpaloalto.org/files/assets/public/community-services/facility-rentals/reservations-community- centers-fields/field-and-tennis-court-reservations/field-court-policy-22.pdf Item 20 Item 20 Staff Report Item 20: Staff Report Pg. 2 Packet Pg. 277 of 911 ANALYSIS In the fall of 2019, City and PAUSD staff met to discuss renewing the Agreement (Amendment No. 13). City and PAUSD staff agreed to extend the Agreement through December 31, 2021, with an option for a two-year extension. On December 9, 2019, City Council approved an extension of the Agreement (Amendment No. 2). City staff later learned that PAUSD staff did not bring Amendment No. 2 to the PAUSD Board for approval. While this matter was being resolved, both the City and PAUSD honored the terms of the Agreement and Amendment No. 2. PAUSD staff later agreed to update Amendment No. 2 to extend the term to cover the period July 1, 2019 through June 30, 2022, with an optional 24-month extension, and brought Amendment No. 2 to the PAUSD Board for their approval on February 8, 2022. City Council approved the updated Amendment No. 24 on February 14, 2022. City and PAUSD staff met multiple times from March 2022 to May 2023 to discuss extending the Agreement. Though the Agreement expired on June 30, 2022, both the City and PAUSD honored the terms of the Agreement while negotiations continued. In May 2023, City and PAUSD staff came to mutually agreeable terms for an Amendment No. 3 to the Agreement. Amendment No. 3 retains the same scope of work and service level performed by City staff. The maintenance costs are shared equally between the City and PAUSD. The revenue share remains at 60% to City and 40% to PAUSD. Amendment No. 3 extends designated hours and dates for PAUSD to have priority use of four of the seven tennis courts at Palo Alto High School. PAUSD priority use of courts number 1, 2, 3, and 4 extends from 4:00pm to 7:00pm weekdays during the following date periods. The select four courts are identified on the map attached to the Amendment: •June 5, 2023 – August 4, 2023 •November 20, 2023 – November 24, 2023 •December 25, 2023 – January 5, 2024 •June 3, 2024 – June 28, 2024 The period covered by Amendment No. 3 is July 1, 2022 through June 30, 2024, with an optional six-month extension. PAUSD staff intends to bring Amendment No. 3 to the PAUSD Board for approval on June 6, 2023. If City Council approves Amendment No. 3 of the Agreement, staff will 3 City Council June 25, 2018; SR 9278; Amendment No. 1 as Attachment A https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2018/id-9278.pdf 4 City Council February 14; 2022 SR 13899; Agenda Item #4; Amendment No. 2 as Attachment A https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20220214/20220214pccsm-amended-linked-final.pdf Item 20 Item 20 Staff Report Item 20: Staff Report Pg. 3 Packet Pg. 278 of 911 collaborate with PAUSD and return to City Council in 2024 with a recommendation to extend the Agreement with an amendment or approve a new Agreement. FISCAL/RESOURCE IMPACT Amendment No. 3 extends the terms of the existing agreement for two years (July 1, 2022 to June 30, 2024). The annual maintenance cost is approximately $1.0 million, and the costs are split equally between the City and PAUSD. The revenue remains shared at 60% to the City and 40% to PAUSD. The total shared revenue varies and has been approximately $45,000 annually. The amendment maintains the level and scope of services and cost share of actual expenses as established in the original contract. The only financial impacts to the City from this action are the result of updated labor costs for continuing these services, which are included in the FY 2024 Operating Budget of the Community Services Department. Funding for subsequent years of the agreement is subject to City Council approval and appropriation of funds through the annual budget process. STAKEHOLDER ENGAGEMENT City and PAUSD staff met multiple times to discuss Amendment No. 3 to the Agreement and have a mutual interest in continuing this partnership. If Council approves Amendment No. 3, staff will communicate with the tennis community the reduced access to certain courts at Palo Alto High School. ENVIRONMENTAL REVIEW This amendment is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to section 15301 (existing facilities) of the CEQA guidelines. ATTACHMENTS Attachment A: PAUSD Athletic Field Brokering and Maintenance Cost-sharing Agreement Amendment No. 3 APPROVED BY: Kristen O'Kane, Community Services Director Item 20 Item 20 Staff Report Item 20: Staff Report Pg. 4 Packet Pg. 279 of 911 AMENDMENT NO. 3 TO THE AGREEMENT BETWEEN THE CITY OF PALO ALTO AND THE PALO ALTO UNIFIED SCHOOL DISTRICT OF SANTA CLARA COUNTY CONCERNING THE PUBLIC USE, BROKERING AND MAINTENANCE OF DISTRICT-OWNED ATHLETIC FIELDS, TENNIS COURTS AND BASKETBALL COURTS JOINTLY USED BY SCHOOL STUDENTS AND THE GENERAL PUBLIC This Amendment No. 3 to the “Agreement Between The City Of Palo Alto And The Palo Alto Unified School District Of Santa Clara County Concerning The Public Use, Brokering And Maintenance Of District-Owned Athletic Fields, Tennis Courts And Basketball Courts Jointly Used By School Students And The General Public” (“Contract”) is entered into June 20, 2023, by and between the CITY OF PALO ALTO, a California chartered municipal corporation (the “CITY”) and the PALO ALTO UNIFIED SCHOOL DISTRICT OF SANTA CLARA COUNTY, a unified school district organized and existing under the Laws of the State of California (the “DISTRICT”) (individually, a “Party” and, collectively, the “Parties”), in reference to the following facts and circumstances: R E C I T A L S A.The Contract was entered into between the Parties on or about January 1, 2014 for the use, maintenance, and related cost-sharing of District-owned athletic fields and courts. The Contract was amended in June 2018 [Amendment No. 1] and March 2022 [Amendment No. 2]. B.The Parties intend to extend the Contract to cover the period July 1, 2022 through June 30, 2024. The Parties also intend to designate specific tennis courts for priority use by the District as detailed below. C.The Parties wish to amend the Contract for the purposes described 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 titled “Agreement Between The City Of Palo Alto And The Palo Alto Unified School District Of Santa Clara County Concerning The Public Use, Brokering And Maintenance Of District-Owned Athletic Fields, Tennis Courts And Basketball Courts Jointly Used By School Students And The General Public” between DISTRICT and CITY, dated January 1, 2014 as amended by: I. Amendment No.1, dated June 25, 2018; and II. Amendment No. 2, dated March 16, 2022 b.Other Terms. Capitalized terms used and not defined in this Amendment shall have the meanings assigned to such terms in the Contract. 1 of 4006247.0014641 163498.1 Item 20 Attachment A - PAUSD Athletic Field Brokering and Maintenance Cost- sharing Agreement, Amendment No. 3 Item 20: Staff Report Pg. 5 Packet Pg. 280 of 911 SECTION 2. Subsection 2.1 of Section 2 TERM AND TERMINATION of the Contract is hereby amended to read as follows: 2.1 The term of this Agreement pursuant to this Amendment 3 commences on July 1, 2022, and ends on June 30, 2024, subject to the earlier termination of this Agreement by any Party hereto upon ninety (90) days’ advance written notice. The preceding sentence notwithstanding, this Agreement is subject to the fiscal provisions of the Charter of the CITY and other Laws of the CITY and the DISTRICT, and this Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated by the Council or Board of Education for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are not appropriated by the Council or Board of Education for a portion of the fiscal year and funds for this Agreement are no longer available. The CITY or the DISTRICT will use reasonable efforts to give the other Party reasonable notice of termination in the event that funds will not be appropriated. No provision is made for the automatic extension or renewal of the term. SECTION 3. Subsection 2.3 of Section 2 TERM AND TERMINATION of the Contract is hereby amended to read as follows: 2.3 The term of this Agreement may be extended for an additional six (6) months by written mutual agreement of the parties executed at least seven (7) calendar days before expiration of the term. Nothing in this Agreement requires either party to renew or extend this Agreement or to enter into negotiations regarding the renewal or extension of this Agreement. SECTION 4. Section 7.2a is hereby added to read as follows: 7.2a District will have priority use of tennis courts numbered 1, 2 ,3 and 4 per Attachment H located at Palo Alto High School from 8 am to 7 pm, Monday through Friday during the following time periods: a. June 5, 2023 through August 4, 2023 (“2023 Summer Period”), b. November 20, 2023 through November 24, 2023 (“2023 Fall Period”) c. December 25, 2023 through January 5, 2024 (“2023/24 Winter Period”); and d. June 3, 2024 through June 28, 2024 (“2024 Summer Period”). SECTION 5. New Attachment H (as attached to this Amendment) is hereby incorporated into the Contract pursuant to Section 15.6 of the Contract. 2 of 4006247.0014641 163498.1 Item 20 Attachment A - PAUSD Athletic Field Brokering and Maintenance Cost- sharing Agreement, Amendment No. 3 Item 20: Staff Report Pg. 6 Packet Pg. 281 of 911 SECTION 6. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. SECTION 7. The recitals set forth above are terms of this Amendment and are fully incorporated herein by this reference. IN WITNESS WHEREOF, the Parties hereto have by their duly authorized representatives executed this Amendment on the date first above written. Dated: ____________________________Dated: __________________________ CITY OF PALO ALTO PALO ALTO UNIFIED SCHOOL DISTRICT _________________________________ Ed Shikada, City Manager ________________________________ Carolyn Chow, Chief Business Officer APPROVED AS TO FORM: __________________________________ City Attorney or designee 3 of 4006247.0014641 163498.1 Item 20 Attachment A - PAUSD Athletic Field Brokering and Maintenance Cost- sharing Agreement, Amendment No. 3 Item 20: Staff Report Pg. 7 Packet Pg. 282 of 911 ATTACHMENT H - Palo Alto High School Tennis Courts Palo Alto High School Tennis Courts #7 #3 #2 #1#6 #5 #4 Item 20 Attachment A - PAUSD Athletic Field Brokering and Maintenance Cost- sharing Agreement, Amendment No. 3 Item 20: Staff Report Pg. 8 Packet Pg. 283 of 911 City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: June 19, 2023 Report #:2305-1581 TITLE Approval of the 2023-2024 Human Relations Commission Work Plan; CEQA Status – Not a Project RECOMMENDATION Staff recommends Council review and approve the 2023-2024 Human Relations Commission Work Plan. BACKGROUND On November 30, 2020, the City Council adopted the Boards, Commissions and Committees (BCC) Handbook, which implemented an annual review and approval of BCC work plans. Each BCC is required to prepare an annual work plan for review and approval by the Council by second quarter of the calendar year. The annual report should include the results of the prior year’s plan and should consist of up to three priorities. When applicable, the City Council would like to see metrics of community involvement and participation in meetings and activities included in the work plan. Council may refer additional items to the BCCs in response to new developments. BCCs should work on the items outlined in the approved workplans over the course of the year and should refrain from expending their time and staff resources on items that have not been approved by the City Council. In the event a BCC would like to add an item to the workplan for review after an annual workplan has been approved by the City Council, a prompt request by the BCC Chair to the City Council is required and the item will then be addressed by the City Council as a whole. At the June 12, 2023 meeting, Council will review the workplans for Architectural Review Board, Historic Resources Board, Parks and Recreation Commission, Planning and Transportation Commission, Public Art Commission, Stormwater Management Oversight Committee, and Utilities Advisory Commission. At this meeting, Council will review the workplan for the Human Relations Commission. Item 21 Item 21 Staff Report Item 21: Staff Report Pg. 1 Packet Pg. 284 of 911 FISCAL/RESOURCE IMPACT There is no fiscal impact associated with the review and approval of the BCC workplans. Any fiscal resources that will be necessary for the implementation of these workplans can be incorporated into the FY 2024 budget discussions at the Council’s discretion. ATTACHMENTS Attachment A: Human Relations Commission Work Plan APPROVED BY: Mahealani Ah Yun, Interim City Clerk Item 21 Item 21 Staff Report Item 21: Staff Report Pg. 2 Packet Pg. 285 of 911 Human Relations Commission 2023-2024 Workplan Staff Liaison: Minka van der Zwaag, Human Services Manager Lead Department: Community Services About the Commission This workplan covers portions of Fiscal Year 2023 and 2024 (June 1, 2023 – March 30, 2024) for the Human Relations Commission (HRC). The Commission is composed of 7 members who are residents of Palo Alto. Terms are for 3 years. See Palo Alto Municipal Code (PAMC) Sections 2.16 and 2.22. For more information about the HRC please visit our webpage at http://www.cityofpaloalto.org/gov/boards/hrc Current Commissioners •Kaloma Smith (Chair) •Adriana Eberle (Vice Chair) •Katie Causey •Amy Hsieh •Michelle Kraus •Daryl Savage •Mary Kate Stimmler Mission Statement HRC Mission: To promote the just and fair treatment of all people in Palo Alto, particularly our most vulnerable populations. By promoting awareness of issues and enabling conversations that enhance inclusion, the HRC strives to create a community where civility, respect and responsible actions are the norm. HRC Jurisdiction: Muni Code 2.22.050 (a) The Human Relations Commission has the discretion to act with respect to any human relations matter when the commission finds that any person or group does not benefit fully from public or private opportunities or resources in the community or is unfairly or differently treated due to factors of concern to the commission. (1) Public or private opportunities or resources in the community include, but are not limited to, those associated with ownership and rental of housing, employment, education and governmental services and benefits. (2) Factors of concern to the commission include, but are not limited to, socioeconomic class or status, physical condition or handicap, married or unmarried state, emotional condition, intellectual ability, age, sex, sexual preference, gender identity, race, cultural characteristics, ethnic background, ancestry, citizenship, and religious, conscientious or philosophical belief. (b) The commission shall conduct such studies and undertake such responsibilities as the council may direct. Item 21 Attachment A - Human Relations Commission Work Plan Item 21: Staff Report Pg. 3 Packet Pg. 286 of 911 Prior Year Accomplishments Goal #1 - Public Safety: Recommended to bring the FBI and community resources to Palo Alto to do community education on hate crimes. In addition, made a recommendation to City Council to increase public awareness and marketing on how to report a hate crime and hate incidents (March 2022). Hosted a Community Listening Session with City Manager Ed Shikada on key qualities of the next police chief and community priorities for the Palo Alto Police Department (March 2022). HRC members participated in the Police Chief interview panel and reported back to the full Commission (August 2022). Presentation on Hate Crimes by the Federal Bureau of Investigation (FBI) Civil Rights Unit (September 2022). Presentation by Palo Alto Police Chief Andrew Binder on his goals and visions for the Police Department and update on current issues (November 2022). Goal #2 - Belonging: Joined the Public Art Commission in the selection process for the King Artist Residency at King Plaza to promote culture, identity, belonging, mental health and resilience in Palo Alto, with the special focus on amplifying voices of Latinx and BIPOC community members and mental health service providers (March 2022). Approval of HRC support of Multifaith Peace Picnic and Prayer Services on September 11, 2022, on King Plaza (August 2022). Created a draft Framework on Process for City Recognition of Events, Individuals, and Celebrations to develop recommendations to City Council, in response to the referral from the City Council on Recognizing Key Dates to Advance Race and Equity (September 2022). Formation of an ad-hoc committee for the Council Referral to research the lived experience of Asian American, Native Hawaiian and Pacific Islanders (AANHPI), and circulation of the AANHPI Lived Experience Survey (February 2023). Goal #3 - Public Health: Recommendations passed in response to the City Council referral to the Commission on ways to improve implementation of current City renter protections (November 2022). Goal #4 - Core Responsibilities: A subcommittee of HRC commissioners and city staff served as the review committee for the Emerging Needs Fund. In 2022, a total of 5 grants totaling $46,031 was approved (February, June, & September 2022). Reviewed and made funding recommendations to the Finance Committee for 9 grants totaling $665,459 as part of the Community Development Block Grant (CDBG) Funding program for Fiscal Year 2022-23 (March 2022). Recommended to Adopt Amendments to the Community Block Grant (CDBG) Citizen Participation Plan (May 2022). Completed site visits with 16 Human Services Resource Allocation Process (HSRAP) Fiscal Year 2022-23 grantees (August 2022). Hosted a listening session with current Human Services Resource Allocation Process (HSRAP) grantees and past applicants to review the HSRAP application process and procedures (October 2022). Review of the 2022 Human Services Needs Assessment Survey results, and recommendations on the draft Fiscal Year 2024-25 Human Services Resource Allocation Process (HSRAP) Priority of Needs (October 2022). Goal #5 - Climate Change: Presentation of the draft framework on Climate Impact on Vulnerable Communities in Palo Alto by the Palo Alto Student Climate Coalition. Formation of an ad-hoc subcommittee to work with the Palo Alto Student Climate Coalition to aid in the research phase of the framework (January 2023). Item 21 Attachment A - Human Relations Commission Work Plan Item 21: Staff Report Pg. 4 Packet Pg. 287 of 911 PROJECT/GOAL 1: Core Responsibilities Funding Programs - Human Services Resource Allocation Process (HSRAP), Community Development Block Grant (CDBG) and Emerging Needs Fund. Continue to review and give input to funding decisions. Priority during this workplan cycle includes a professional Human Services Needs Assessment by a consultant in anticipation of the 2026-2027 HSRAP funding cycle. The Needs Assessment will assess the current human service needs of the Palo Alto community, the role of the program, the goals of the program, and how program impact is measured. BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED The funding programs provide human services organizations with essential monetary support to serve vulnerable and underserved residents of Palo Alto. Ongoing Adhoc HRC subcommittee and staff time for the funding decisions. Funds needed for the hiring of a consultant to complete a Human Services Needs Assessment. Moderate level of staff and adhoc subcommittee time. Results of Human Services Needs Assessment will provide the HRC, staff and Council with updated and vital information on current human needs in the community, concrete suggestions for changes/additions to the HSRAP priority of needs, application and/or review process, and increased ways in which to measure the effectiveness of the City’s funding investment in Human Services organizations. N/A HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE The Human Services Needs Assessment is a high priority to ensure the HSRAP grant program is serving the Palo Alto community to the best of its ability. Continue to provide funding recommendations for CDBG and the Emerging Needs Fund as needed. N/A PROJECT/GOAL 2: Inclusion and Belonging Inclusion & Belonging - Explore ways in which the Commission can continue to positively affect the sense of inclusion and belonging in the community. Projects include: •The continuation of the AANHPI lived experience survey and the beginning of community outreach, interviews, and listening sessions. •Equity work through partnering with the City on creating policy language and bias training for commissions. •Other projects as identified. BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED All individuals who live, work or worship in Palo Alto have the right to feel included and valued as members of the community. Spring-Fall 2023 Adhoc HRC subcommittee and staff time Moderate level of staff and adhoc subcommittee time. AANHPI Project – After review of the survey, demographics and interview data, the creation of a series of a report and series of recommendations for Council consideration for increased understanding and increased and possible action to improve a sense of inclusion and belonging in the AANHPI community. N/A Item 21 Attachment A - Human Relations Commission Work Plan Item 21: Staff Report Pg. 5 Packet Pg. 288 of 911 HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE Compile and report on the results of the AANHPI Survey and continue gathering perspectives from the community through outreach, interviews and listening sessions. Begin work on partnering with the City to provide bias training for commission and to create equitable policy language and bias training for commissions. -AANHPI Survey - Council Referral May 2022 PROJECT/GOAL 3: Public Safety Public Safety - Explore and implement avenues to decrease incidences of crimes in the community. Areas of priority include: •Hate Crimes •Human trafficking. •Online targeting of youth. •Community conversations. •Training for local businesses and hotels on how to recognize and de-escalate hate crimes and incidents. BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED All individuals who live, work or worship in Palo Alto have the right to do so without fear of verbal or physical abuse or attack. Summer-Fall 2023 Adhoc subcommittee and staff time. Space and marketing for educational programming. Moderate level of staff and adhoc subcommittee time. Measures may include: How many people attend educational programming, specific actions taken by members of the public to combat hate crimes, and the increased reporting of hate crimes. N/A HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE Continue partnering with the FBI Civil Rights Unit to create programming that will be used in educational programming. Begin analysis and consideration of any actions beyond the Community meeting with the FBI. Council Referral May 2022 PROJECT/GOAL 4: Climate Change Climate Change - Explore ways in which climate change may disproportionately affect specific populations in the community, especially in the wake of recent flooding, extreme weather conditions, and power-outages. Areas of priority include: •Possibility of City funds to help low-income and vulnerable populations transfer to electric and smart meters. •Continue partnership with the Palo Alto Student Climate Coalition research on the Climate Impact on Vulnerable Communities. BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED Item 21 Attachment A - Human Relations Commission Work Plan Item 21: Staff Report Pg. 6 Packet Pg. 289 of 911 Climate change is a priority for the Sate of California and the City of Palo Alto. Climate awareness and changes in habits help everyone thrive and special attention should be paid to vulnerable populations. Project began in Spring 2023 and will continue to Fall 2023. Adhoc subcommittee to work alongside student committee. Lower level of staff and adhoc subcommittee time. A series of recommendations to be presented to the Council which will inform them of the issues that face low income and vulnerable members of the community that are caused or affected by Climate Change. N/A HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE Completion and analysis of information presented by the community/student committee. N/A PROJECT/GOAL 5: Learning Sessions Learning Sessions - Engage in learning sessions to gain more understanding on the following topics: •Public Health - Post-pandemic wellbeing (work, personal loss, mental health, physical health, job loss) of residents. A day of remembrance for those that lost their life to COVID-19 and their loved ones. •The lack of community and walkability in South Palo Alto and other under-resourced communities with a focus on zoning, new housing elements, and a timeline for the rebuilding of the complex of business at 3163 Middlefield Road. •Issues faced by seniors including affordable housing, elder abuse, food security and access, the digital divide, and affordable and reliable transportation. BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED Listening sessions are utilized by the HRC to explore an issue with the help of subject matter experts in order to 1) Become informed on the topic(s); 2) Explore whether there is a role for the HRC in addressing/recommending any action. During the term covered by this workplan Staff and HRC commissioner time Lower level of staff and adhoc subcommittee time. HRC discussions, deliberations, actions and recommendation are all well served by the review of information presented by subject matter experts. N/A HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE Priority level of the individual Listening Sessions will be determined by the HRC at their June, 8, 2023 meeting. N/A PROJECT/GOAL 6: Emerging Needs Emerging Needs - The HRC will identify emerging issues in the community, prioritize those that need further attention and bring any major initiatives, including those that involve significant staff time to the Council for approval. The Commission will also be responsive to future referrals by the Council. Item 21 Attachment A - Human Relations Commission Work Plan Item 21: Staff Report Pg. 7 Packet Pg. 290 of 911 BENEFICIAL IMPACTS TIMELINE RESOURCES NEEDED MEASURE OF SUCCESS STATE MANDATED / LOCAL LAW / COUNCIL-APPROVED The HRC has the discretion to act with respect to any human relations matter when the commission finds that any person or group does not benefit fully from public or private opportunities or resources in the community, or is unfairly or differently treated due to factors of concern to the commission. Ongoing TBD TBD N/A HIGH PRIORITY LOWER PRIORITY COUNCIL-DIRECTED POLICY UPDATE Lower priority N/A Item 21 Attachment A - Human Relations Commission Work Plan Item 21: Staff Report Pg. 8 Packet Pg. 291 of 911 2 3 2 7 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: City Auditor Meeting Date: June 19, 2023 Report #:2305-1537 TITLE Approval of Office of City Auditor Remote and Flexible Work Study Report; CEQA Status – Not a Project RECOMMENDATION The Policy and Services Committee, City Auditor, and Staff recommend that the City Council approve the Remote and Flexible Work Study Report. BACKGROUND Baker Tilly, in its capacity serving as the Office of the City Auditor (OCA), performed a citywide risk assessment that assessed a wide range of risk areas, including strategic, financial, operational, compliance, technological, and reputation risks. The purpose of the assessment was to identify and prioritize risks to develop the annual audit plan. During the FY2022 risk assessment (ID#13914)1, the OCA identified recruitment and retention challenges and need for a study of remote positions which affect recruitment and retention as many people prefer remote positions. Baker Tilly presented the attached report during the Policy & Service Committee meeting on April 26, 2023, where the report was approved as follows: MOTION: Council Member Veenker moved, seconded by Chair Tanaka to recommend the City Council: A. Accept the Office of the City Auditor Remote and Flexible Work Study Audit Report, and; B. Request that the City Manager’s Office include in the staff report to Council an analysis of pre-Covid full onsite performance evaluations compared to current Hybrid/Remote work. MOTION PASSED: 3-0 1 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20220404/20220404pccsmamendedlinked1.pdf Item 22 Item 22 Staff Report Item 22: Staff Report Pg. 1 Packet Pg. 292 of 911 2 3 2 7 The Committee asked the City Attorney to provide follow-up information regarding the operation of State worker’s compensation law in the remote work context. The City Attorney’s response can be found at Attachment B. DISCUSSION The objectives of the review were to: 1) Evaluate the alignment of remote and flexible work policy and procedure to best practices. 2) Identify position eligibility criteria for remote and flexible work schedules. Through conversations with the Human Resources management staff, analysis of current applicable remote work policies, and market research, Baker Tilly created a framework for the implementation of a remote and flexible work study program. This framework includes the use of a criteria tool and two potential options for the implementation of the framework. The tool can be used to objectively evaluate City positions for remote and flexible work eligibility. The report provides market trend research to inform future implementation for this recommended framework and optional surveys to distribute to City employees for assistance in the determination of remote and flexible work eligibility. The Policy & Services Committee motion included request for staff to provide a comparison of pre-Covid full onsite performance evaluations compared to current Hybrid/Remote Work. HR staff reported that currently this data is collected in an electronic format only for Management and Professional employees. The following information compares pre-Covid full onsite performance rating results in comparison to most current performance ratings since eligible employees have been working a Hybrid/Remote work schedule. The performance ratings for pre-Covid FY19, in comparison to FY22 did not indicate performance rating decline or productivity decrease. In FY19 there were 177 managers and professionals who were evaluated: 117 exceeded expectations; 53 met expectations and 7 needed improvement. In FY 22, there were 176 managers and professionals who were evaluated: 118 exceed expectations; 57 met expectations and only 1 employee in this group was rated as needing improvement. Overall, there were similar results in the performance ratings pre-Covid in FY19 in comparison to FY22 and improved ratings for employees who had been rated as “needing improvement” in FY19. As stated to the Policy & Services Committee, since there are between 80% - 90% of employees working on-site between Monday through Friday, it appears there is no impact to performance and productivity by allowing employees the option to work a hybrid schedule. FISCAL/RESOURCE IMPACT The corrective action plans and the timeline for implementation are identified within the attached report. Item 22 Item 22 Staff Report Item 22: Staff Report Pg. 2 Packet Pg. 293 of 911 2 3 2 7 STAKEHOLDER ENGAGEMENT The Office of the City Auditor worked primarily with Human Resources Department and engaged with additional stakeholders, including the City Manager’s Office and the City Attorney’s Office, as necessary. ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. ATTACHMENTS Attachment A: OCA-Remote and Flexible Work Study Attachment B: Response to PS Worker’s Comp Waiver Questions 05.31.23 APPROVED BY: Adriane D. McCoy, City Auditor Item 22 Item 22 Staff Report Item 22: Staff Report Pg. 3 Packet Pg. 294 of 911 1 j City of Palo Alto Office of the City Auditor FY21/22 Remote and Flexible Work Study March 14, 2023 Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 4 Packet Pg. 295 of 911 2 Executive Summary Purpose of the Audit The purpose of this audit was to: 1) Evaluate the alignment of remote and flexible work policy and procedure to best practices 2) Identify position eligibility criteria for remote and flexible work schedules Report Highlights Category/Theme Page # Recommendation Remote Work Policy Pg. 6 The City should revise the current policy to strengthen its teleworking risk mitigation and further clarify the remote work arrangement between its employees and departments. The City should also implement a periodic review of its telework policy in annual intervals to ensure content is current and still meeting department needs. Remote Work Procedures Pg. 7 The City should revise the current agreement form to include a more robust list of employee obligations to improve the clarity of responsibilities for remote workers and their departments. The City should also ensure that the agreement form reflects the content of the current teleworking policy. Position Eligibility Pg. 7 We recommend the development of a standardized criteria for position remote and flex work eligibility. All positions should be evaluated for full remote, partial remote/flex schedule, and ineligible remote work. Once position eligibility is determined, the City should follow existing policy to review individual employee eligibility for all eligible positions. Opportunities Remote Work Best Practices Pg. 8 We provide context to consider for future implementation of a remote and flexible work policy to remain current and competitive in the hiring market and considerations for executing a position eligibility assessment. Summarized by: - Early Covid-19 Pandemic Workforce Response - Sustaining Remote Workforce Responses - Future Workforce Challenges Position Eligibility Framework Pg. 9-11 We recommend a six-step framework for position eligibility implementation: - Creation of a framework - Creation of a communication plan - Selection of pilot departments - Pilot department evaluation with two approaches - Modification of the implementation plan - Implementation of position evaluation Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 5 Packet Pg. 296 of 911 3 Table of Contents Executive Summary ........................................................................................................................................................... 2 Purpose of the Audit ..................................................................................................................................................... 2 Report Highlights ........................................................................................................................................................... 2 Objective........................................................................................................................................................................... 4 Background ..................................................................................................................................................................... 4 Scope................................................................................................................................................................................. 4 Methodology .................................................................................................................................................................... 4 Compliance Statement.................................................................................................................................................. 4 Organizational Strengths ............................................................................................................................................. 5 Category/Theme ............................................................................................................................................................. 6 Analysis on the Future of Remote Work ...................................................................................................................... 8 Appendices ........................................................................................................................................................................ 12 Appendix A: Sample Policy Modifications ............................................................................................................ 12 DEFINITIONS ..................................................................................................................................................................... 15 POLICY ................................................................................................................................................................................ 15 PROCEDURE ..................................................................................................................................................................... 16 ELIGIBILITY ........................................................................................................................................................................ 17 CONDITIONS ..................................................................................................................................................................... 17 Information Security and Protection ................................................................................................................................ 19 Ad Hoc Arrangements ....................................................................................................................................................... 19 Exceptions ........................................................................................................................................................................... 19 Appendix B: Hybrid Work Agreement Form ......................................................................................................... 20 Appendix C: Position Eligibility Criteria ................................................................................................................ 23 Appendix D: Management Response ..................................................................................................................... 24 Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 6 Packet Pg. 297 of 911 4 Introduction 1 Government auditing standards require an external peer review at least once every three (3) years. The last peer review of the Palo Alto Office of the City Auditor was conducted in 2017. The Palo Alto City Council approved a contract from October 2020 through Objective The purpose of this audit was to: 1) Evaluate the alignment of remote and flexible work policy and procedure to best practices. 2) Identify position eligibility criteria for remote and flexible work schedules. Background The City of Palo Alto’s Human Resources Department states they "strive to recruit, develop, and retain a diverse, well-qualified and professional workforce that reflects the high standards of the community we serve. The department’s key responsibilities are: Employment Recruitment & Selection, Employee Benefit Administration, Employee Training & Development, Employee and Labor Relations, Compensation & Classification Administration, Risk Management, Safety and Workers Compensation and Volunteer Administration. As part of the FY2022-2023 Audit Plan approved by the City Council, a Remote and Flexible Work Study audit was authorized. Through conversations with the Human Resources management staff, analysis of current applicable remote work policies, and market research, Baker Tilly created a framework for the implementation of a remote and Flexible Work Study Program. This framework includes the use of a criteria tool and two potential options for the implementation of the framework. The tool can be used to objectively evaluate City positions for remote and flexible work eligibility. The report provides market trend research to inform future implementation for this recommended framework and optional surveys to distribute to City employees for assistance in the determination of remote and flexible work eligibility. More details on this framework are included in the Methodology and Detailed Testing Results section. Scope The scope of this engagement includes remote work policies, procedures, and eligibility effective as of June, 2021. Methodology The Baker Tilly team conducted the following audit activities to meet the engagement objectives:  Interviewed Human Resources staff to understand the current state, benefits, and barriers of remote work,  Reviewed relevant policies and procedures,  Identified industry-relevant criteria to be used for evaluation,  Researched best practices, as well as remote work trends and challenges. Compliance Statement This audit activity was conducted from May 2022 to July 2022 in accordance with generally accepted government auditing standards, except for the requirement of an external peer review1. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 7 Packet Pg. 298 of 911 5 June 2022 with Baker Tilly US, LLP (Baker Tilly) and appointed Kyle O’Rourke, Senior Consulting Manager in Baker Tilly's Public Sector practice, as City Auditor. Given the transition in the City Audit office, a peer review was not conducted in 2020 and will be conducted after the third year of Baker Tilly’s contract. Organizational Strengths During this audit activity, we observed certain strengths of the City. Key strengths include: Dedicated Human Resources staff committed to the organization. A commitment to providing excellent service delivery in the community while balancing the needs and safety of City employees. Staff awareness regarding the ever-changing landscape of the remote work environment in a post-covid workplace. The Office of the City Auditor greatly appreciates the support of the Human Resources Department in conducting this audit activity. Thank you! Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 8 Packet Pg. 299 of 911 6 Testing Results During our assessment, we identified three key documents of improvement for Palo Alto to implement related to remote work practices. The areas assessed, results of each assessment, and our recommendations for improvement are shown below. Policy and procedure criteria were based upon Society for Human Resources best practice documents:  SHRM Telecommuting Policy and Procedure  SHRM Short Term Telecommuting Agreement  International Public Management – Human Resources Association remote work best practices Category/Theme Document name Finding # Finding Recommendation Remote Work Policy 2-38/HRD Remote Work Policy 1 The City last updated the Remote Work policy in June of 2021 in consultation with City management, modifying the original to accommodate telework modification required as a result of the COVID-19 pandemic. The City's Remote Work Policy is missing components that will strengthen and clarify the remote work arrangement between employees, their departments, and the City. Some components were recommended by Human Resources during the most recent revisions, but discussions with City management resulted in their omission from the final policy. The current policy leaves the City susceptible to holding employees accountable for attendance and performance issues, City property inventory discrepancies, and dependent care responsibilities. The City should revise the current policy to strengthen its teleworking risk mitigation and further clarify the remote work arrangement between its employees and departments. The City should also implement a periodic review of its telework policy in annual intervals to ensure content is current with best practices and meets department needs. A sample policy revision, based upon The Society for Human Resources Management and the International Public Management – Human Resources Association best practices and sample policies, is provided in Appendix A. Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 9 Packet Pg. 300 of 911 7 Category/Theme Document name Finding # Finding Recommendation Remote Work Procedures Hybrid Work Agreement Form (FY23) 2 The City's Hybrid Work Agreement Form omits obligations of a remote worker that, if present, would better define employee responsibilities and commitments. As is, the form leaves the City susceptible to employee attendance and performance issues, unclear accountability standards with regard to City property and policy, and an inability to modify the remote work agreement as needed. The City last updated the teleworking agreement form June 2021, modifying the original to accommodate remote work modification required as a result of the COVID-19 pandemic. However, the revised form does not comprehensively reflect components of the City’s teleworking policy. The Society for Human Resources Management, with a thorough sample agreement form for teleworking, frames content that addresses these common remote work risks. The City should revise the current agreement form to include a more robust list of employee obligations to improve the clarity of responsibilities for remote workers and their departments. The City should also ensure that the agreement form reflects the content of the current teleworking policy. A sample revision of the form is provided in Appendix B. Remote Work Position Eligibility n/a 3 The City does not have a standardized approach to determine position eligibility for remote or flex work schedules. Department directors approve eligibility on a case-by-case basis as employees request it, with a strong consideration of department norms and supervisor preferences. This creates inconsistent eligibility across departments for positions with similar essential duties. Department requirement of in-person work when essential job duties do not require the position to be on-site or in the office damages the City’s ability to retain employees and attract new talent. The City should development standardized criteria for position remote and flex work eligibility. All positions should be evaluated for full remote, partial remote/flex schedule, and ineligible remote work. Once position eligibility is determined, The City should follow existing policy to review individual employee eligibility for all eligible positions. A sample criteria is provided in Appendix C. Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 10 Packet Pg. 301 of 911 8 Analysis on the Future of Remote Work This section provides market and industry context to consider for future implementation to remain current and competitive in the hiring market and considerations for executing a position eligibility assessment. 2 Public Sector Telework Trends During the Coronavirus Pandemic | IPMA-HR 3 Public Sector Telework Trends During the Coronavirus Pandemic | IPMA-HR 4 Quick Steps to Prepare a Remote Work Policy for Your Local Government | icma.org 5 The Future of Remote Work in the Public Sector - Government Technology Insider Remote Work Best Practices and Research Governments and public sector organizations have continued to leverage remote work as a necessary alternative to traditional in-person work. Forecast trends predict public sector reliance on remote work will continue and likely expand. Standardized implementation of remote work will allow the City of Palo Alto to remain competitive as well as modernize and expand the quality services its residents expect. Early Covid-19 Pandemic Workforce Response Prior to the Covid-19 Pandemic and government issued shutdowns, remote work was uncommon within the public sector. The U.S. Bureau of Labor Statistics 2019 National Compensation Survey found flexible workplace benefits were available to 4 percent of state and local government workers and 5 percent of management level positions . An International Public Management Association for Human Resources (IPMA-HR) survey of local government members found that 70 percent of public sector organizations did not have established remote work programs in early 2020 when the Pandemic began. During Covid, among the 30 percent of public sector organizations surveyed by IPMA-HR which already had remote work programs, the percentage of remote workers increased to 63 percent after closures began. Among organizations that did not have established programs, survey participants reported an average of 1 percent of their workforce worked remotely before the Pandemic. Their share of remote workers grew to 41 percent by April 2020, representing an increase of 4,000 percent and indicating industry-wide adoption of remote work flexibility.2 Sustaining Remote Workforce Responses IPMA-HR reports 69 percent of the respondents at public sector organizations that already had established remote work policies prior to February 2020 reported plans to continue allowing more remote work after reopening their offices. Maintained remote work programs were lower, at 45 percent, among survey respondents whose organizations lacked remote work programs prior to the Covid-19 Pandemic.3 Currently, local government policies and approaches address primarily four areas: 1) Employee eligibility for remote work, 2) Necessary forms and policy development, 3) Accessing communication channels, and 4) IT practices, procedures, and security.4 Government Technology Insider notes that investments made to enhance and maintain network architecture are needed for continued support of remote work. Services, such as streamlined support tickets and an IT service desk, are important to support remote end-users. Additionally, agencies should establish a business continuity plan (BCP) to train workers on secure network practices while remotely working.5 The reported ability to work remote varies widely depending on the industry. Government, public administration, and military organizations fall in the middle of this list with 46 percent of workers reporting most daily job functions can be performed remotely. According to the FlexJobs online trends database, The State of California has the most remote job listings of any state. In terms of remote worker populations, The City of Palo Alto is among the top five cities in the State, with 9.3% of their Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 11 Packet Pg. 302 of 911 9 6 Remote Job Market Map - Trends, Companies, & Facts by State | FlexJobs 7 Amid public sector hiring challenges, researchers highlight telework, flexibility as path forward - American City and County 8 Public Sector Remote Work Challenges - Exisor, California Transportation Commission, 2021, “Effects of COVID-19-Related Telework Policies on the Transportation System” 9 Work remotely – Employees | telework.govops.ca.gov total working population remote. Neighboring cities Mountain View, Sunnyvale, and Redwood, also make this list of the top 50 California cities for remote work with 6.2 percent, 5.3 percent, and 4.6 percent, remote populations, respectively.6 Future Workforce Challenges As the public sector rebounds from the demands incurred from the Covid-19 Pandemic, hiring challenges, vacancies, and burnout are impeding return to pre-pandemic workforce levels. Approximately 90 percent of jobs lost in the private sector have returned as of April 2022, while only 53 percent of jobs lost have returned for the public sector. Pandemic job loss and pre-pandemic hiring challenges have made quality talent recruiting and succession planning the highest priority staffing challenges government organizations face.7 Burnout and stress have caused 44 percent of public sector employees to experience decline in mental-emotional health. In California, other remote work challenges include public sector work culture, high paper dependencies, and cybersecurity concerns according to the California Transportation Commission.8 Remote work is likely preceding a future of public service performed by a network of workers across integrated geographies, making “remoteability” a key metric for a public sector organization’s success. Addressing motivation and the intrinsic value of public sector work is one strategy to retain devoted public servants. Increasing resources through benefits and salary to match the increased demands placed on large City and County employees will further encourage public sector participation. We anticipate California will continue various resources, programs, and benefits that enable employers and local governments to support their remote work segments. The California Government’s “telework.govops.ca.gov” is one resource providing best practices and helpful tips for governments like Palo Alto. We encourage use of these resources and others to achieve ideal remoteability.9 Position Eligibility Framework Below is a sample framework to consider implementing for evaluating position eligibility for remote work and modifying the position eligibility in context of the remote work policy at the City of Palo Alto: 1. Human Resources makes a framework for position eligibility assessment deployment a. HR evaluates the positions first and solicits director feedback on potential eligible positions b. HR collaborates with department directors to evaluation eligibility for all positions 2. Human Resources creates a communication plan for the evaluation framework 3. Human Resources selects pilot departments to evaluation position eligibility 4. Human Resources runs the pilot department evaluation 5. Human Resources modifies implementation plan using lessons learned from the pilot 6. Human Resources implements position evaluation with remaining departments 1. Creation of framework a. Human Resources evaluates the positions first to eliminate positions for department review that are ineligible to work remotely The benefits of this method: Creates a top-down efficient approach using the knowledge and expertise of the Human Resources staff and reducing the volume of department position review. The negatives of this method: Reduced position review transparency for department leadership and employees b. Department directors review all positions The benefits of this method: Illustrates to employees the desire to intimately understand positions when determining eligibility. Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 12 Packet Pg. 303 of 911 10 Increases the volume of positions for department directors and employees to review. The negatives of this method: Increased review and implementation time-frame 2. Creation of a communication plan Change management plan standards suggest the use of comprehensive and clear communications to all affected parties. Human Resources will need to identify the target audience for each communication and the intended purpose/goal of the communication. The City may consider a communication approach as follows: - Notify all City employees of the position review. In the notification, state the pilot departments, phased approach for additional department position reviews, roles and responsibility for Human Resources, department supervisors, and employees. - Provide regular updates during executive team meetings - Provide updates to department directors of when phases are complete and next steps - Provide written communication to all employee participants at each phase. Hold a townhall meeting introducing the project, communicating the purpose, approach and outcome - Communicate position eligibility to the executive team and directors when all positions are evaluated The methods and delivery for the communication plan should also be outlined, considering a formalized message to staff and informal channels. Human Resources should be prepared for the responses they will receive to the communication plan – both negative and positive - and appropriate response channels. Human Resources should be clear and repeatedly communicate throughout the process that the assessment is to determine position eligibility to equitably apply consideration across the City. Individuals who hold eligible positions should continue to be assessed for approval and continued eligibility per the City’s policy. 3. Selection of pilot departments When selecting the two departments for the pilot, consider the following: - A department that performs administrative functions for the City (e.g. Legal, City Clerk and Information Technology) - A department that has positions performing some elements of fieldwork/operations - Departments that are collaborative in nature and willing to adapt to changes in City policy - Departments that are well respected within the City as they will serve as advocates for the future rollout of the Remote and Flexible Work program - Departments with a high volume of hard-to-fill positions or key positions with a high vacancy rate Running the pilot - Human Resources should consider the length of the pilot program, any changing needs of the community and potential changes in service delivery requiring a stop or pause to the pilot, and any changing needs of the department that may require a stop or pause. - Develop a re-start plan to continue the pilot to keep staff engaged and invested in the pilot program. Feedback from piloted departments should be solicited and factored into future implementation for improved deployment. The pilot should be self-evaluated by all participants and ‘lessons learned’ documented when providing feedback to Human Resources. The feedback provided in this phase will inform steps 5 and 6. 4. Pilot department evaluation Human Resources outlines the approach needed for the evaluation of the pilot department program. Steps may include: - Department director meeting: o Kick-off o Project timeline/purpose o Confirm approach and scope - Employee kick-off meeting o Kick-off o Project timeline/purpose o Confirm approach and scope Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 13 Packet Pg. 304 of 911 11 The approach will differ and is dependent on if Human Resources will provide the first assessment of positions or initiate preliminary assessment at the employee level. 1a Approach. Human Resources evaluates positions using essential duties from the job descriptions and designates positions ineligible to work remotely. Human Resources reviews the assessment with department directors. For all remaining positions, employees self-evaluate their position eligibility, directors review the self- assessment and Human Resources analyzes the responses to find an average question score for each position. Human Resources should review all results with Managers/Directors for their input and approval of the results. 1b Approach. All employees self-evaluate their position eligibility, directors review the self-assessment and Human Resources analyzes the responses to find an average question score for each position. Human Resources should review all results with Managers/Directors for their input and approval of the results. From this analysis, Human Resources can designate positions as eligible for options of fully remote, flexible hours/day schedules, or ineligible for remote work. All results of the analysis should be shared with both Directors and Employees and include any next steps. For Directors, considerations for next steps to accommodate employee requests going forward: - Technology needs - Scheduling needs - Ebbs and flows of services in their department For Employees, considerations for next steps going forward: - A review of essential duties for similar positions would result in an equitable approach amongst all employees and improve program deployment 5. Modification of the implementation plan Using the feedback received in Phase 3, Human Resources should adjustment the implementation plan. Considerations of adjustments should include the ability to adapt the plan to a changing environment within the City (e.g. at different times of the year different needs may arise where staff may need a more frequent presence in the office) 6. Implementation of position evaluation Human Resources will need to prioritize the remaining City departments. Considerations on prioritizing should include: - High turnover or high vacancy rate departments - Departments with a balance of administrative and non-administrative functions - Seasonality of work and City milestones (e.g. budget planning, Capital infrastructure planning, high volumes of outdoor functions for summer and spring activities) Consider developing a phased deployment. A potential implementation approach includes: - Phase 1: common positions across all departments (e.g. administrative assistants, Directors, etc.) - Phase 2: Departments with common functionality (e.g. operations and fieldwork functions) - Phase 3: Departments with common functionality (e.g. administrative and internal shared services positions). As mentioned in Phase 2, elements of a change management plan can assist Human Resources in this implementation. In addition to the communication plan, a Change Management Approach implementation strategy includes a training plan, business systems plan and resistance plan. Having a plan to address any resistance from employees will assist with a successful program. A possible tool to consider is a Resistance Assessment Survey. This survey identifies areas of possible resistance, and provides a space for rating (1-5 from strongly disagree to strongly agree). Human Resources could deploy this survey and aggregate the scores as they did for the evaluation tool to find pockets of resistance and approval. Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 14 Packet Pg. 305 of 911 12 Appendices Appendix A: Sample Policy Modifications SHRM Telecommuting Policy and Procedure Blue highlighted text indicates content recommended to include in City Policy Objective Telecommuting allows employees to work at home, on the road or in a satellite location for all or part of their workweek. [Organization Name] considers telecommuting to be a viable, flexible work option when both the employee and the job are suited to such an arrangement. Telecommuting may be appropriate for some employees and jobs but not for others. Telecommuting is not an entitlement, it is not a companywide benefit, and it in no way changes the terms and conditions of employment with [Organization Name]. Procedures Telecommuting can be informal, such as working from home for a short-term project or on the road during business travel, or a formal, set schedule of working away from the office as described below. Either an employee or a supervisor can suggest telecommuting as a possible work arrangement. Any telecommuting arrangement made will be on a trial basis for the first three months and may be discontinued at will and at any time at the request of either the telecommuter or the organization. Every effort will be made to provide 30 days’ notice of such change to accommodate commuting, child care and other issues that may arise from the termination of a telecommuting arrangement. There may be instances, however, when no notice is possible. Eligibility Individuals requesting formal telecommuting arrangements must be employed with [Organization Name] for a minimum of 12 months of continuous, regular employment and must have a satisfactory performance record. Before entering into any telecommuting agreement, the employee and manager, with the assistance of the human resource department, will evaluate the suitability of such an arrangement, reviewing the following areas:  Employee suitability. The employee and manager will assess the needs and work habits of the employee, compared to traits customarily recognized as appropriate for successful telecommuters.  Job responsibilities. The employee and manager will discuss the job responsibilities and determine if the job is appropriate for a telecommuting arrangement.  Equipment needs, workspace design considerations and scheduling issues. The employee and manager will review the physical workspace needs and the appropriate location for the telework.  Tax and other legal implications. The employee must determine any tax or legal implications under IRS, state and local government laws, and/or restrictions of working out of a home-based office. Responsibility for fulfilling all obligations in this area rests solely with the employee. If the employee and manager agree, and the human resource department concurs, a draft telecommuting agreement will be prepared and signed by all parties, and a three-month trial period will commence. Evaluation of telecommuter performance during the trial period will include regular interaction by phone and e-mail between the employee and the manager, and weekly face-to-face meetings to discuss work progress and problems. At the end of the trial period, the employee and manager will each complete an evaluation of the arrangement and make recommendations for continuance or modifications. Evaluation of telecommuter performance beyond the trial period will Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 15 Packet Pg. 306 of 911 13 be consistent with that received by employees working at the office in both content and frequency but will focus on work output and completion of objectives rather than on time-based performance. An appropriate level of communication between the telecommuter and supervisor will be agreed to as part of the discussion process and will be more formal during the trial period. After conclusion of the trial period, the manager and telecommuter will communicate at a level consistent with employees working at the office or in a manner and frequency that is appropriate for the job and the individuals involved. Equipment On a case-by-case basis, [Organization Name] will determine, with information supplied by the employee and the supervisor, the appropriate equipment needs (including hardware, software, modems, phone and data lines and other office equipment) for each telecommuting arrangement. The human resource and information system departments will serve as resources in this matter. Equipment supplied by the organization will be maintained by the organization. Equipment supplied by the employee, if deemed appropriate by the organization, will be maintained by the employee. [Organization Name] accepts no responsibility for damage or repairs to employee-owned equipment. [Organization Name] reserves the right to make determinations as to appropriate equipment, subject to change at any time. Equipment supplied by the organization is to be used for business purposes only. The telecommuter must sign an inventory of all [Organization Name] property received and agree to take appropriate action to protect the items from damage or theft. Upon termination of employment, all company property will be returned to the company, unless other arrangements have been made. [Organization Name] will supply the employee with appropriate office supplies (pens, paper, etc.) as deemed necessary. [Organization Name] will also reimburse the employee for business-related expenses, such as phone calls and shipping costs, that are reasonably incurred in carrying out the employee’s job. The employee will establish an appropriate work environment within his or her home for work purposes. [Organization Name] will not be responsible for costs associated with the setup of the employee’s home office, such as remodeling, furniture or lighting, nor for repairs or modifications to the home office space. Security Consistent with the organization’s expectations of information security for employees working at the office, telecommuting employees will be expected to ensure the protection of proprietary company and customer information accessible from their home office. Steps include the use of locked file cabinets and desks, regular password maintenance, and any other measures appropriate for the job and the environment. Safety Employees are expected to maintain their home workspace in a safe manner, free from safety hazards. [Organization Name] will provide each telecommuter with a safety checklist that must be completed at least twice per year. Injuries sustained by the employee in a home office location and in conjunction with his or her regular work duties are normally covered by the company’s workers’ compensation policy. Telecommuting employees are responsible for notifying the employer of such injuries as soon as practicable. The employee is liable for any injuries sustained by visitors to his or her home worksite. Telecommuting is not designed to be a replacement for appropriate child care. Although an individual employee’s schedule may be modified to accommodate child care needs, the focus of the arrangement must remain on job performance and meeting business demands. Prospective telecommuters are encouraged to discuss expectations of telecommuting with family members prior to entering a trial period. Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 16 Packet Pg. 307 of 911 14 Time Worked Telecommuting employees who are not exempt from the overtime requirements of the Fair Labor Standards Act will be required to accurately record all hours worked using [Organization Name]’s time-keeping system. Hours worked in excess of those scheduled per day and per workweek require the advance approval of the telecommuter’s supervisor. Failure to comply with this requirement may result in the immediate termination of the telecommuting agreement. Ad Hoc Arrangements Temporary telecommuting arrangements may be approved for circumstances such as inclement weather, special projects or business travel. These arrangements are approved on an as-needed basis only, with no expectation of ongoing continuance. Other informal, short-term arrangements may be made for employees on family or medical leave to the extent practical for the employee and the organization and with the consent of the employee’s health care provider, if appropriate. All informal telecommuting arrangements are made on a case-by-case basis, focusing first on the business needs of the organization. Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 17 Packet Pg. 308 of 911 15 POLICY AND PROCEDURE 2-38/HRD Revised: June 2021 Blue highlighted text indicates content recommend to include from SHRM policy. Green highlighted text indicates Baker Tilly language based upon review of current state and federal reimbursement requirements. Baker Tilly does not provide legal advice. We recommend the City consult with their employment law counsel prior to any sample form or policy adoption. REMOTE WORK POLICY PURPOSE The purpose of this Policy is to provide guidance for administering remote work. DEFINITIONS Remote Work is the practice of working from an alternative worksite on either a voluntary (Remote Work Arrangement) or assigned (Remote Work Assignment) on a regular basis. Occasional remote work is when an employee is approved to work remotely on an infrequent or project basis. Occasional remote work does not require a formal remote work agreement. Remote Work Agreement is the formal agreement between a supervisor and an employee which defines the employee’s regular remote work schedule and details any City-owned resources the employee will use in the alternative worksite. Alternative Worksite is a location where the employee works other than at a City facility. POLICY It is the policy of the City of Palo Alto to allow and/or assign employees to work remotely when it is consistent with the City’s operational needs. When the employee and their position are eligible and well-suited for remote work, Department Directors are strongly encouraged to allow remote work. Remote work can be advantageous to the employee, department and the community. Research and numerous sources have identified that remote work: • Reduces air pollutants and decreases traffic, parking congestion and overcrowding of public transportation. • Improves the City’s ability to maintain services during an emergency when the regular worksite is inaccessible. • Enhances the ability to recruit and retain quality employees, improves job satisfaction, supports work-life balance, and may increase productivity. While remote work is typically a voluntary arrangement, the City may require work to be performed remotely based on operational needs or in emergency circumstances. Remote work is a service delivery model that can be used to meet operational needs, and is not to be viewed as an entitlement, reward or benefit. All City employees who are working remotely on a regular basis must have an approved Remote Work Agreement under this Policy. Occasional Remote Work must be documented and approved in advance by the employee’s supervisor, but no formal Remote Work Agreement is required. Remote work does not alter duties, obligations, responsibilities and conditions of employment for the employee who is approved and/or assigned to work remotely. Employees working remotely remain obligated to comply with all City rules, regulations, policies, procedures, and state and federal laws. Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 18 Packet Pg. 309 of 911 16 Remote Work is not designed to be a replacement for appropriate child care. Although an individual employee’s schedule may be modified to accommodate child care needs, the focus of the arrangement must remain on job performance and meeting business demands. Prospective remote workers are encouraged to discuss expectations of remote work with family members prior to entering a trial period PROCEDURE All employees must have a Remote Work Agreement in order to work remotely on a regular basis. Any Remote Work arrangement made will be on a trial basis for the first three months and may be discontinued at will and at any time at the request of either the telecommuter or the organization. Every effort will be made to provide 30 days’ notice of such change to accommodate commuting, child care and other issues that may arise from the termination of a remote work arrangement. There may be instances, however, when no notice is possible. Evaluation of telecommuter performance during the trial period will include regular interaction by phone and e-mail between the employee and the manager, with recommended bi-weekly meetings to discuss work progress and problems. At the end of the trial period, the employee and manager will each complete an evaluation of the arrangement and make recommendations for continuance or modifications. Evaluation of telecommuter performance beyond the trial period will be consistent with that received by employees working at the office in both content and frequency but will focus on work output and completion of objectives rather than on time-based performance. An appropriate level of communication between the telecommuter and supervisor will be agreed to as part of the discussion process and will be more formal during the trial period. After conclusion of the trial period, the manager and telecommuter will communicate at a level consistent with employees working at the office or in a manner and frequency that is appropriate for the job and the individuals involved. Remote Work Request Initiated by Employee (Remote Work Arrangements) Employees who believe they may be eligible for Remote Work as defined in this Policy must first discuss their desire to work remotely with their direct supervisor. At that time, the supervisor and employee can discuss eligibility, schedule, equipment needs, work hours, and other items that are part of the Remote Work Agreement and this Policy. The employee must then submit the Remote Work Agreement to their supervisor for approval. If the supervisor approves the Remote Work Agreement, they will submit the agreement to the Department Director or designee for consideration. The Department Director or designee will either approve, deny, or modify the agreement. A copy of the final signed agreement must be provided to the employee, their supervisor, and submitted to Human Resources. Should an employee’s remote work request be denied, the decision is final and not subject to the grievance procedure or any other appeal. The employee may request to meet with the Human Resources Director or their designee to discuss their denial. As part of an employee’s annual performance appraisal, the Remote Work Agreement should be evaluated by the employee and supervisor to determine if the arrangement is successful and if it should continue. The Remote Work Agreement should be updated with any changes and submitted for approval by the Department Director or designee. The Department Director or designee can suspend or cancel the Remote Work Agreement with at least five business days’ written notice when possible. In the event operational necessity does not allow for five business days’ notice, the Department Director or designee may suspend or cancel the Remote Work Agreement with less notice. General considerations for terminating the agreement include, but are not limited to, operational need, performance, conduct, safety, and violation of the Remote Work Policy and other City policies. Termination of the agreement is administrative and not considered discipline. The decision is not be subject to the grievance procedure nor can it be appealed. Remote Work Required by the City (Remote Work Assignment) Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 19 Packet Pg. 310 of 911 17 If operational needs require remote work for continuity of City services, or in cases of emergency, managers and the Department Director will evaluate each position for remote work. The requirement to perform work remotely will be assigned in consultation with the City Manager’s Office and Human Resources. Employees assigned to work remotely must complete a Remote Work Agreement. Remote Work Assignments may be discontinued at any time at the sole discretion of the City pursuant to the procedures outlined above. ELIGIBILITY Not all positions or employees are eligible for remote work. When determining whether an employee requesting remote work is eligible, employees must meet both the position eligibility criteria and performance eligibility criteria. When a position is being required to work remotely due to operational necessity and continuity of service or emergency circumstances, City management will evaluate the eligibility of the position and follow any local, state or federal guidance. Individuals requesting Remote Work arrangements must maintain a satisfactory performance record. *** Eligibility requirements may need to be revised based on the final outcome of the Remote and Flexible Work Study*** Position Based Eligibility: Criteria for establishing eligibility of a position:  In-person interaction or physical presence on a daily basis is not essential to the performance of job duties and may be scheduled or conducted virtually to permit Remote Work.  Some or all the job duties are able to be performed from an alternative worksite without diminishing the quality and timeliness of the work.  Appropriate equipment must be available or can be made available in the alternative worksite to perform job duties and assigned tasks.  Remote Work must not unduly disrupt or create problems for projects, staff, the community or other stakeholders.  When performed remotely, job duties can be completed in compliance with all applicable IT, Security, Privacy and Confidentiality policies and procedures. Performance Based Eligibility: Criteria for establishing eligibility of an employee:  Employee is adaptable, with a proven ability to work independently.  Employee demonstrates good time-management skills by completing quality assignments on time.  Employee communicates information efficiently with leadership, coworkers, support staff and customers.  Employee sets appropriate priorities, changes priorities as needed, and maintains a suitable workspace.  Employee possesses computer and other necessary skills sufficient to work independently at an alternate worksite. CONDITIONS Schedule and Work Hours: The actual time worked by the employee, as established by the Remote Work Agreement, must be accurately recorded on the timesheet.  Employees FLSA status as exempt or non-exempt will not be altered as a result of the employee working remotely.  The number of hours worked by the employee will not change because the employee is working at an alternative worksite. Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 20 Packet Pg. 311 of 911 18  Employees eligible for overtime may work overtime only when directed to do so and approved in advance by the supervisor.  Employees must obtain approval to use vacation, sick, or other leave in the same manner as departmental employees who do not work remotely.  Employees working remotely will maintain accessibility via email, phone, or as otherwise agreed to by their supervisor during agreed upon work hours.  Employees must follow all regular timecoding requirements. Employees working at an alternate worksite may be required to report to a City facility on a remote workday. Supervisors should give at least 24 hours’ notice of this change, unless an unforeseeable immediate need should arise. An employee who is required to report to a City facility instead of their alternative worksite is not eligible for travel reimbursement. When an employee is required to report to a City Facility on the same day, then travel time to the City facility shall be considered hours worked. Occasional requests by employees to change their schedule should be accommodated by the supervisor if possible. Occasional changes (such as working remotely on a different day in the same week) do not constitute a change in the underlying agreement. A permanent schedule change would require an employee to resubmit an approved Remote Work Agreement. Remote Worksite & Equipment It is the responsibility of the employee to create a safe and ergonomically suitable environment for work. Employees shall make all reasonable efforts to ensure their remote work area meets the ergonomic standards of the City. Upon request, the City will provide an ergonomic evaluation for the employee’s alternative worksite. Employees working remotely must work in an environment that allows them to perform their duties safely and efficiently. Employees are responsible for ensuring their work areas comply with health and safety requirements. Employees are covered by workers’ compensation laws when performing work duties at their designated alternate locations during their regular work hours. Employees who suffer a work-related injury or illness while remote working must notify their supervisor and complete any required forms immediately in accordance with the City’s Workers’ Compensation Policy. In order to work remotely, employees and supervisors must identify the equipment, software, and supplies required to successfully work at an alternate location. The employee will not be eligible for Remote Work if the required equipment is not available. IT will serve as resources to assist employees and supervisors determine appropriate equipment needs. The remote worker must sign an inventory of all City property received and agree to take appropriate action to protect the items from damage or theft City Equipment: Any equipment and software shall remain the property of the City and is limited to use for purposes relating to City business only. Employees working remotely must keep City-owned equipment in good working order, report any problems or malfunctions immediately, and must promptly return equipment upon completion or termination of their Remote Work Agreement, or separation from the City. Basic office supplies that normally are available at the City worksite for the employee's use (e.g., pens, binders, notepads, Post-its, etc., but not including printer ink cartridges) may be used at the employee’s remote worksite in accordance with the same policies that govern their use at the City worksite. Employees working remotely will not be reimbursed for additional office supplies unless approval to purchase supplies is given in advance. City issued supplies must be used for City work purposes only. Any other costs may be incurred only with prior approval by the Department Director. City-issued laptops or other required computer equipment and repairs will be provided based on need and availability. To ensure hardware and software security, all software used for remote work must be approved by the department and IT Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 21 Packet Pg. 312 of 911 19 before installation. Networking can only be established using compatible hardware and software. All remote work must be done through the City VPN or approved applications. Personal Equipment: When not provided by the City, employees under a Remote Work Agreement are expected to use personal office equipment including, but not limited to, furniture, seating, internet access, scanners, calculators, ink cartridges, etc., used while working remotely. Employees working remotely are responsible for the maintenance and repair of their office equipment and are required to install and maintain personal office equipment at no expense to the City. The employee is responsible for ensuring that software used on non-City premises is compatible with City standards. Business-related Expenses: Employees voluntarily working remotely are responsible for all business expenses incurred. Should the City require employees to work remotely, the City will supply the employee with “necessary” and “reasonable” expenses 10. Employees may not incur expenses before receiving written approval from a department supervisor. Information Security and Protection Remote workers, like all City employees, are expected to protect confidential, proprietary, and business information from unauthorized or accidental access, destruction, or disclosure. Employees may not disclose confidential or private files, records, materials, or information, and may not allow access to City networks or databases to anyone who is not authorized to have access. Employees who work remotely shall comply with the City’s Information Security Policy, Information Security Standards, Information Privacy Policy and ensure the protection of the City’s protected information. Ad Hoc Arrangements Temporary remote work arrangements may be approved for circumstances such as inclement weather, special projects or business travel. These arrangements are approved on an as-needed basis only, with no expectation of ongoing continuance. Other informal, short-term arrangements may be made for employees on family or medical leave to the extent practical for the employee and the organization and with the consent of the employee’s health care provider, if appropriate. All informal remote work arrangements are made on a case-by-case basis, focusing first on the business needs of the organization. Exceptions The City is not liable for loss or destruction of the employee’s home or personal property while working remotely. The City is not liable for injury to the employee that occurs outside of remote work hours or while not conducting City work. The City is not liable for injury to the employee’s family members, visitors, or invitees within or around the remote worker’s home. 10 California Labor Code 2802 Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 22 Packet Pg. 313 of 911 20 Appendix B: Hybrid Work Agreement Form Baker Tilly does not provide legal advice. We recommend the City consult with their employment law counsel prior to any sample form or policy adoption. Hybrid Work Agreement Sample teleworking agreement modified from the SHRM and other industry samples. Blue text indicates added content from SHRM template. Definition For purposes of this agreement, “telework” means an agreed-upon regular, modified work location outside of City premises or standard work location (e.g., home office, community workspace. etc.) Employee Information Name: ____________________________________ Hire date: __________________ Employee ID: _________________________________________________________ Job title: _____________________________________________________________ Department: ___ ______________________________________________________ Supervisor’s Title: _____________________________________________________ Is your supervisor the Department Director (Y/N) ______________________________ Department Director’s email address: ______________________________________ FLSA status: Exempt Nonexempt This telework agreement will begin and end on the following dates: Start date: _______________ End date: _______________ Primary work location: ________________________________________________ Employee Telework Schedule - Mark “X” where applicable Remote Work Work Combination Day Off Monday Wednesday Thursday Friday Saturday Sunday The employee agrees to the following conditions: The employee will remain accessible and productive during scheduled work hours. Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 23 Packet Pg. 314 of 911 21 Nonexempt employees will record all hours worked and meal periods taken in accordance with regular timekeeping practices. Nonexempt employees will obtain supervisor approval prior to working unscheduled overtime hours. The employee will report to the employer’s work location as necessary upon directive from his or her supervisor and notify the supervisor in advance of work location modifications. The employee will communicate regularly with his or her supervisor and co-workers, with a cadence and format established by the supervisor. The employee will comply with all City rules, policies, practices and instructions that would apply if the employee were working at the employer’s work location. The employee will maintain satisfactory performance standards. The employee will make arrangements for regular dependent care and understands that telework is not a substitute for dependent care. In pandemic or natural disaster circumstances, exceptions may be made for employees with caregiving responsibilities. The employee will maintain a safe and secure work environment at all times. The employee will allow the employer to have access to the telework location for purposes of assessing safety and security, upon reasonable notice by the City. The employee will report work-related injuries to his or her supervisor as soon as practicable. City will provide the following equipment: __________________________ ______________________________________________________________________ The employee will provide the following equipment: ____________________________ ______________________________________________________________________ The employee agrees that City equipment will not be used by anyone other than the employee and only for business- related work. The employee will not make any changes to security or administrative settings on City equipment. The employee agrees to promptly install all technology security upgrades to ensure network security. The employee understands that all tools and resources provided by the City shall remain the property of the City at all times. The employee agrees to protect City tools and resources from theft or damage and to report theft or damage to his or her supervisor immediately. The employee agrees to comply with City’s policies and expectations regarding information security. The employee will be expected to ensure the protection of confidential and customer information accessible from their home offices. The employee understands that telework is a privilege, subject to position eligibility and performance review requirements. The employee understands that reomote eligibility may be revoked based upon performance reviews, non-compliance of this agreement and/or position essential duty modifications. Palo Alto will reimburse employee for the following expenses: ________________________________________________________________ Employee will submit expense reports with attached receipts in accordance with City expense reimbursement policy. Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 24 Packet Pg. 315 of 911 22 The employee understands that all terms and conditions of employment with the City remain unchanged, except those specifically addressed in this agreement. The employee understands that management retains the right to modify this agreement on a temporary or permanent basis for any reason at any time. The employee agrees to return City equipment and documents within five days of termination of employment. Employee signature: ______________________________ Date: ____________________ Manager signature: _______________________________ Date:______________________ Human resources signature: ________________________ Date: ______________________ Hybrid Work Agreement Form (FY23) All workers who are assigned to Telework, including those who partially Telework, should complete this form. Telework minimizes the number of employees at City facilities, while allowing essential work to continue. By submitting this Telework Agreement you acknowledge and agree to the following: While on this telework arrangement, you are expected to fully engage in your job and to work in a manner that is safe, efficient and responsible. Telework requires that you take extra care to remain in close communication with your supervisor and co-workers. When you telework, you have the same responsibilities as when you work at your normal worksite. Responsibilities include being immediately available during work time, following work policies and protocols; protecting the confidentiality of sensitive data; maintaining a safe work area and reporting any injury; protecting government property; and reporting your absences accurately. In addition, if you are in a classification that allows for overtime or comp time you are required to obtain prior approval from your supervisor. If you have any questions regarding telework arrangements please contact HR at (650)329-2376 or HR@CityofPaloAlto.org (mailto:HR@CityofPaloAlto.org) Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 25 Packet Pg. 316 of 911 23 Appendix C: Position Eligibility Criteria Key Item 22 Attachment A - OCA- Remote and Flexible Work Study Item 22: Staff Report Pg. 26 Packet Pg. 317 of 911 24 Appendix D: Management Response Summary Statement: The Palo Alto City Administration thanks the City Auditor’s Office for their work on this important and timely topic. As requested by the Administration, this study provides an independent perspective on one of the most widely discussed and rapidly evolving contemporary workplace issues. The study affirms that the City’s efforts, initiated pre-pandemic, continue to reflect a progressive and balanced approach to ensuring worker productivity in delivering services to the community while continuing to model an “employer of choice.” This will continue to guide and inform future decision making and strategic opportunities for revision of hybrid working practices. Item 22 Attachment A - OCA-Remote and Flexible Work Study Item 22: Staff Report Pg. 27 Packet Pg. 318 of 911 25 Recommendation Responsible Department(s) Agree, Partially Agree, or Do Not Agree and Target Date and Corrective Action Plan Finding 1: Remote Work Policy The City should revise the current policy to strengthen its teleworking risk mitigation and further clarify the remote work arrangement between its employees and departments. The City should also implement a periodic review of its telework policy in annual intervals to ensure content is current with best practices and meets department needs. A sample policy revision, based upon The Society for Human R Management and the International Public Management – Human Appendix A. Human Resources Concurrence: Partially agree Target Date: March 2023 Completion Date: To be determined during the OCA’s follow-up review Action Plan: Currently the City’s policy includes Position Based and Performance Based Eligibility criteria for the Department Director to consider their employee’s request for a hybrid work schedule. City equipment, is tracked by the Information Technology department therefore incorporating an additional and could lead to confusing and contradictory practices. In regards to excluding employees on probation, the City did not include this provision as providing hybrid work as an option may offer flexibility candidates are seeking. “hybrid work”, now titled the Hybrid Work Policy, and will be reviewed periodically or at minimum, annually as recommended. Finding 2: Remote Work Procedures The City should revise the current agreement form to include a more robust list of employee obligations to improve the clarity of responsibilities for remote workers and their departments. The City should also ensure that the agreement form reflects the content of the current teleworking policy. A sample revision of the form is provided in Appendix B. Human Resources Concurrence: Partially Agree Target Date: March 2023 Completion To be determined during the OCA’s follow-up review Action Plan: The City provides regular and consistent training to supervisors and managers on how to effectively communicate performance feedback, use progressive discipline, targeted development plans, and leave of absence tracking to ensure efficient and effective delivery of City services. Changes to the Hybrid Policy and agreement form that infer disciplinary results or actions would detract from the City’s established performance management processes and cause meet and discuss obligations with the City’s different impacted labor groups. Authority of managers and supervisors is clearly articulated in the City’s merit rules to document expectations of an employee to perform their assigned tasks. An employee performing their assigned tasks remotely does Item 22 Attachment A - OCA-Remote and Flexible Work Study Item 22: Staff Report Pg. 28 Packet Pg. 319 of 911 26 not impact the supervisor’s responsibility to complete the performance management process. The City closely reviewed sample documents from the Society for Human Resources Management in developing the revision to the Remote Work Policy and Agreement form currently utilized. The City’s Hybrid Work agreement form has been updated to reference the Hybrid Work policy and include link. Finding 3: Remote Work Position Eligibility The City should development standardized criteria for position remote and flex work eligibility. All positions should be evaluated for full remote, partial remote/flex schedule, and ineligible remote work. Once position eligibility is determined, The City should follow existing policy to review individual employee eligibility for all eligible positions. A sample criteria is provided in Appendix C. Human Resources Concurrence: Partially Agree Target Date: February 2023 Completion Date: February 28, 2023 Action Plan: position eligibility and employee eligibility creating a two-step process for approving hybrid work. Fully remote is not articulated as an option going forward as no longer mandated by public health conditions, except as a special exemption authorized by the City Manager’s Office. A survey tool such as discussed during the audit, using criteria tailored to City operational requirements, will be placed on the HR website as a resource that can be incorporated into future use by supervisors and managers when reviewing a position for hybrid work eligibility. Opportunities We provide context to consider for future implementation of a remote and flexible work policy to remain current and competitive in the hiring market and considerations for executing a position eligibility assessment. Summarized by: - Early Covid-19 Pandemic Workforce Response - Sustaining Remote Workforce Responses - Future Workforce Challenges We recommend a six- - Creation of a framework - Creation of a communication plan Human Resources to test the revised changes to an earlier version of the City’s policy. Two city divisions were selected to pilot the new policy with surveys of employees being conducted at the beginning, middle, and end of the pilot process. This feedback he policy adopted in June 2021. We believe it is consistent with existing practice to follow this similar framework if/when significant additional changes are needed to the framework of the hybrid being pursued at this time. However the critical position assessment suggested can be used when new positions are submitted for Annual Budget in support of providing flexible work options. Item 22 Attachment A - OCA-Remote and Flexible Work Study Item 22: Staff Report Pg. 29 Packet Pg. 320 of 911 27 - Selection of pilot departments - Pilot department evaluation with two approaches - Modification of the implementation plan - Implementation of position evaluation Item 22 Attachment A - OCA-Remote and Flexible Work Study Item 22: Staff Report Pg. 30 Packet Pg. 321 of 911 Attachment B City Attorney’s Response to Policy and Services’ Questions regarding the Potential for Waiver of Workers’ Compensation Coverage in the Context of Remote Work At Policy and Services, the Committee noted that both the SHRM remote work model policy and the City of Palo Alto’s remote work policy state that employees are covered by workers’ compensation laws when performing work duties at their designated alternate locations during their regular work hours. Committee members expressed concern that alternative work environments are not entirely within the employer’s control, with the potential that these environments could carry increased risk of worker injury without the employer’s knowledge and ability to take corrective action. Committee members inquired whether it is possible for the City to require employees to waive workers’ compensation coverage under these circumstances. The answer is no. California’s Workers’ Compensation Act is meant to apply to all workplace injuries, irrespective of the fault of any party.1 A waiver is a type of contract, and State law provides that no contract, rule, or regulation can exempt an employer from liability for workers’ compensation.2 Even if waivers were an option, which they are not, it would likely not be advisable to require waivers for remote work. This is because, in general, workers’ compensation liability is often preferable to the alternative, which is civil liability. While the Workers' Compensation Act expands employers’ liability for workplace injuries, it also strictly limits the amount recoverable3 and the types of damages available 4, as compared to the civil litigation system where disputes over employee injuries would otherwise be adjudicated. When workers’ compensation applies, an employee may generally only seek damages within the framework of workers’ compensation.5 Broad application of workers’ compensation lowers an employer’s exposure to high dollar damage awards, while increasing the employees’ access to expeditious and reasonable relief. As the audit recommends, an employer’s best tools to address concerns around the safety of alternative workspaces is to establish policies, educate remote workers, and conduct inspections as needed. 1 Farmers Bros. Coffee v. Workers' Comp. Appeals Bd. (App. 2 Dist. 2005) 35 Cal.Rptr.3d 23, 27. 2 Cal. Labor Code section 5000. 3 See e.g., Cal. Labor Code section 4653 (“If the injury causes temporary total disability, the disability payment is two-thirds of the average weekly earnings during the period of such disability”). 4 See West v. Industrial Acc. Com. (1947) 79 C.A.2d 711, 718; 82 Am.Jur.2d (2013 ed.), Workers' Compensation § 356 et seq. 5 See, e.g., Melendrez v. Ameron Int. Corp. (2015) 240 C.A.4th 632, 193 C.R.3d 23 (wrongful death action was barred by workers' compensation exclusive remedy rule, when employee exposed to employer’s asbestos at home as well as at the workplace); Walker v. San Francisco (1950) 97 C.A.2d 901, 904, 219 P.2d 487 (workers' compensation was exclusive remedy for family of fireman killed in collision with municipal railway car while responding to fire). Item 22 Attachment B - Response to PS Workers' Comp Waiver Questions 05.31.23 Item 22: Staff Report Pg. 31 Packet Pg. 322 of 911 City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Auditor Meeting Date: June 19, 2023 Report #:2306-1648 TITLE Approval of Office of City Auditor Task Order Change - 04.16 ALPR Technology Contract Management; CEQA Status – Not a Project BACKGROUND This report will be a special late packet release on Thursday, June 15, 2023. APPROVED BY: Adriane McCoy, City Auditor Item 23 Item 23 Late Packet Report Item 23: Staff Report Pg. 1 Packet Pg. 323 of 911 City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Auditor Meeting Date: June 19, 2023 Report #:2306-1649 TITLE Approval of Office of City Auditor Task Order Change - 04.19 Disaster Recovery Preparedness; CEQA Status – Not a Project BACKGROUND This report will be a special late packet release on Thursday, June 15, 2023. APPROVED BY: Adriane McCoy, City Auditor Item 24 Item 24 Late Packet Report Item 24: Staff Report Pg. 1 Packet Pg. 324 of 911 City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Auditor Meeting Date: June 19, 2023 Report #:2306-1650 TITLE Approval of Office of City Auditor Task Order Change - FY23-01 Citywide Risk Assessment & FY23-02 Annual Audit Plan; CEQA Status – Not a Project BACKGROUND This report will be a special late packet release on Thursday, June 15, 2023. APPROVED BY: Adriane McCoy, City Auditor Item 25 Item 25 Late Packet Report Item 25: Staff Report Pg. 1 Packet Pg. 325 of 911 City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: June 19, 2023 Report #:2306-1621 TITLE SECOND READING: Adoption of an Ordinance Amending Section 2.04.010 (Regular Meeting) of Chapter 2.04 (Council Organization and Procedure) of the Palo Alto Municipal Code to Change the City Council Meeting Start Time from Six p.m. to Five- Thirty p.m. (FIRST READING: June 5, 2023 PASSED 7-0) BACKGROUND This was heard by the City Council on June 5, 2023 for a first reading and was approved 7-0. No changes were made to the Ordinance; it is now before you for a second reading. ATTACHMENTS Attachment A: Ordinance Amending Section 2.04.010 (Regular Meeting) to Change the Council Meeting Start Time APPROVED BY: Mahealani Ah Yun, Interim City Clerk Item 26 Item 26 Staff Report Item 26: Staff Report Pg. 1 Packet Pg. 326 of 911 1 NOT YET APPROVED Attachment A Ordinance No. Ordinance of the Council of the City of Palo Alto Amending Section 2.04.010 (Regular Meeting) of Chapter 2.04 (Council Organization and Procedure) of the Palo Alto Municipal Code to Change the City Council Meeting Start Time from Six p.m. to Five- Thirty p.m. The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: (a) The Palo Alto Charter states that the Council shall set a time and pla ce for its regular meetings. (Charter, Art. III, Section 5.) For many years, the Municipal Code has provided that the regular meeting time is the first three Mondays of each month beginning at six p.m. (Palo Alto Municipal Code section 2.04.010.); (b) In recent years, it has been common for Council meetings to begin at five p.m. Such meetings are noticed as “special meetings” as required by state and local law. (Cal. Govt. Code sections 54954, 54956; PAMC section 2.04.020; Palo Alto City Council Procedures and Protocols, section 2.1(a), p. 9.); and (c) Council now wishes to amend the Municipal Code to provide that the regular meeting time be the first three Mondays of each month beginning at five- thirty p.m. Meetings noticed for other times will be designated “special meetings.” SECTION 2. Section 2.04.010 (Regular Meeting) of Chapter 2.04 (Council Organization and Procedure) of the Palo Alto Municipal Code is hereby amended as follows (additions are in underline, deletions are in strikethrough): 2.04.010 Definitions (a) The council of the city shall hold regular meetings on the first three Mondays of each month, at six five- thirty p.m. in the council chambers of the City Hall, 250 Hamilton Avenue, in said city unless the council chambers shall be determined by a majority vote of the council to be inadequate or unavailable for a meeting, in which event the council may designate some other suitable place in the city for the conduct of the meeting. The determination to hold the meeting at a place other than the council chambers may be made by the mayor prior to the regular meeting date; provided, that notice of the change in place for conduct of the meeting shall be published prior to the meeting in a newspaper of general circulation published in the city, setting forth the reasons for the change, and a copy of the notice shall be posted on the council chamber door for at least twenty-four hours prior to the time scheduled for the meeting and during the meeting. If the council adjourns its meeting from the council chambers to another place, notice to adjourn and the new place for holding the meeting shall be posted on the council chamber door during the time the meeting is being held. Item 26 Attachment A - Ordinance Amending Section 2 04 010 to Change the Council Meeting Item 26: Staff Report Pg. 2 Packet Pg. 327 of 911 2 NOT YET APPROVED Attachment A (b) Each year, no later than the third meeting in February, the council shall by resolution schedule its vacation for that year. The resolution shall designate the dates of this scheduled vacation and the city clerk will give notice thereof by whatever means are deemed appropriate. During said scheduled annual vacation, there shall be no regular meetings of the council nor of the council standing committees, unless it is an adjourned regular meeting. The mayor or a majority of the council may call a special meeting during the scheduled vacation if necessary. SECTION 3. Council action on this item is not a project as defined by the California Environmental Quality Act (CEQA) because it is an organizational or administrative matter that will not result in direct or indirect physical changes in the environment. (CEQA Guidelines 15378(b)(5).) 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: ____________________________ ____________________________ City Attorney City Manager ____________________________ Director of Administrative Services Item 26 Attachment A - Ordinance Amending Section 2 04 010 to Change the Council Meeting Item 26: Staff Report Pg. 3 Packet Pg. 328 of 911 City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: June 19, 2023 Report #:2306-1623 TITLE SECOND READING: Adoption of an Ordinance Amending Section Palo Alto Municipal Code Chapter 9.68, Rental Housing Stabilization, to Clarify the Definitions of At-Fault and No-Fault Just Cause for Evictions, Extend Just Cause Eviction Protections and Tenant Relocation Assistance to More Rental Units in Palo Alto than Offered by State Law, and Adopt a Security Deposit Limit for Unfurnished Rental Units in Palo Alto. Environmental Assessment: Exempt under CEQA Guidelines Section 15061(b)(3). (FIRST READING: June 5, 2023 PASSED 6-1) BACKGROUND This was heard by the City Council on June 5, 2023 for a first reading and approved 6-1, Tanaka no. It is now before you for a second reading. In preparing the ordinance for a second reading, staff identified a minor subsection reference typo. This has been corrected in the attached ordinance. ATTACHMENTS Attachment A: Draft Ordinance - Just Cause Eviction and Security Deposit APPROVED BY: Mahealani Ah Yun, Interim City Clerk Item 27 Item 27 Staff Report Item 27: Staff Report Pg. 1 Packet Pg. 329 of 911 Not Yet Approved Ordinance No. _____ Ordinance of the Council of the City of Palo Alto Amending Chapter 9.68 (Rental Housing Stabilization) to Clarify the Definitions of At-Fault and No-Fault Just Cause for Evictions, Extend Just Cause Eviction Protections to More Rental Units in Palo Alto than Offered by State Law, and to Enact a Security Deposit Limit for Unfurnished Rental Units in Palo Alto The Council of the City of Palo Alto ORDAINS as follows: SECTION 1. Findings and Declarations. The City Council finds and declares as follows: A. Renters represent a significant percentage of Palo Alto’s population; B. Landlords provide a significant community service by providing rental housing in the City of Palo Alto; C. Palo Alto has great diversity in residential rental property and rental unit types, ranging from single-family homes, accessory and junior accessory dwelling units, to properties with multi-family apartment buildings containing a variety of rental units; D. There is a need to ensure that housing is provided for people of all income levels, and affirmatively further fair housing; E. The Palo Alto rental market is one of the most expensive in the country, which is one factor that can lead to potential renters being unable to afford standard rental unit move- in costs; F. The Palo Alto rental market is one of the most expensive in the country, which is one factor that can lead to renters at risk of displacement; G. The city desires to implement policies for certainty, stability, and fairness in the rental market for renters and landlords; H. A significant number of renters in Palo Alto are low -income and cost-burdened; I. Move-in costs for unfurnished residential rental units commonly include first and last month's rent plus a security deposit of up to two months’ rent, leading to high initial move in costs , J. The State of California created eviction protections for some rental units in Palo Alto but not others through the enactment of California Assembly Bill 1482 (2019), which currently automatically sunsets in 2030, Item 27 Attachment A - Draft Ordinance - Just Cause Eviction and Security Deposit Item 27: Staff Report Pg. 2 Packet Pg. 330 of 911 Not Yet Approved 230607 sm 010 2 K. The city is making significant investments on an ongoing basis regarding rental unit protection, preservation, and production and will also soon need to implement the 6 th Cycle Housing Element policies and programs; and L. On November 29, 2021, the City Council held a public meeting to discuss a variety of renter protection measures and directed staff to draft a Security Deposit Limit ordinance that caps the maximum allowed security deposit for unfurnished rental units in Palo Alto to one and one half times (1.5x) the monthly rent, whereas California Civil Code section 1950.5 allows for the maximum security deposit for unfurnished units to be two times (2x) the monthly rent, M. On November 29, 2021, the City Council held a public meeting to discuss a variety of renter protection measures and directed staff to draft a response to California Assembly Bill 1482 (2019) by preparing an Eviction Reduction/Just Cause ordinance for Palo Alto to extend state eviction protections to properties built and receiving occupancy within the last fifteen (15) years, but does not include rental units occupied less than a year or single family homes not owned by a corporation or renters who live in a duplex when one unit is owner occupied, N. On February 9, 2023, the Human Relations Commission held a public meeting to discuss the effectiveness of existing renter protections in Palo Alto and recommended that the City Council adopt the extensions described by the City Council on November 29, 2021 in addition to several other extensions, O. The city, while still retaining local definitions in some cases, adjusted the previous Palo Alto definitions of at-fault and no-fault just cause eviction in order to be consistent with California Assembly Bill 1482 (2019) for the purposes of consistency, transparency, legal clarity, P. The city finds that the Eviction Reduction/Just Cause and Security Deposit Limit ordinance is not in conflict with and is more protective than California Assembly Bill 1482 (2019) in regard to the number of rental units receiving eviction protections and relocation assistance, the limitations on security deposits for unfurnished residential rental units, and, in some circumstances, in regard to the Tenant Relocation Assistance (TRA) dollar amount required if a tenant received a no -fault just cause eviction, and because the ordinance is permanent and does not contain the California Assembly Bill 1482 (2019) automatic sunset in 2030, Q. The City Council finds and determines that the Eviction Reduction/Just Cause and Security Deposit Limit ordinance codified in Palo Alto Municipal Code Chapter 9.68 (Rental Housing Stabilization) is adopted pursuant to the city’s authority to protect the public health, safety, and welfare. SECTION 2. Chapter 9.68 (Rental Housing Stabilization) of Title 9 (Public Peace, Morals and Safety) is hereby amended as follows (new text underlined and deletions struck-through): Item 27 Attachment A - Draft Ordinance - Just Cause Eviction and Security Deposit Item 27: Staff Report Pg. 3 Packet Pg. 331 of 911 Not Yet Approved 230607 sm 010 3 9.68.010. Purpose. (a) It is found and declared that there is a growing shortage of, but increasing demand for, housing in the city of Palo Alto. Such shortage and increased demand, coupled with increasing inflation, have placed substantial pressure on those residents of Palo Alto seeking rental housing. This council finds that tenantrenters are entitled to a contractual relationship with a landlord that offers some assurance of stability and fair treatment under the terms of a written lease so as toto minimize displacement of tenantrenters into a rental housing market which affords them few and expensive options. (b) Council further finds that the provisions of California Assembly Bill 1482 (2019), as codified and later expanded in the Civil Code of the state of California, offers important protections from instability and displacement to renters. The provisions of that bill as they relate to eviction reduction are restated and expanded below, to make the protections permanent in the city of Palo Alto and extend them to renters living in qualified residential rental units that received a certificate of occupancy within the last fifteen years. 9.68.020. Definitions. For purposes of this chapter, the following terms are defined as follows: (a) “Landlord” means an owner, lessor, or sublessor, or the agent, representative, or successor of any of the foregoing persons who receives, or is entitled to receive, rent for the use and occupancy of any rental unit or portion thereof the owner or property manager exercising effective control over the terms and conditions of the tenancy of a residential rental unit, including a person with such control delegated through a durable power of attorney. (b) "Rent" means the consideration, including any bonus, benefit, or gratuity demanded or received by a landlord, for or in connection with the use or occupancy of a residential rental unit. (c) "Rent increase" means any additional rent demanded of or paid by a renter for a residential rental unit. (d) "Residential rental unit" means any housing structure occupied as a dwelling or offered for rent or lease as a dwelling, whether attached, detached, single or multiple-family."Rental unit" means a dwelling unit in the city of Palo Alto with the land and appurtenant buildings thereto and all housing services, privileges, and facilities supplied in connection with the use or occupancy thereof, which unit is in a multiple-family dwelling (including a duplex), boardinghouse, lodginghouse, or mobilehome park. The term "rental unit" shall not include: (0) A single-family dwelling; (0) Rooms or accommodations in hotels, boardinghouses, or lodginghouses which are rented to transient guests for a period of less than thirty days; Item 27 Attachment A - Draft Ordinance - Just Cause Eviction and Security Deposit Item 27: Staff Report Pg. 4 Packet Pg. 332 of 911 Not Yet Approved 230607 sm 010 4 (0) Dwelling units in a condominium, community apartment, planned development or stock cooperative as defined in Chapter 21.40, or in a limited equity stock cooperative as defined in the California Business and Professions Code; (0) Dwelling units in which housing accommodations are shared by lan dlord and tenant; (0) Housing accommodations in any hospital, extended care facility, asylum, nonprofit home for the aged, or in dormitories owned and operated by an institution of higher education, a high school or an elementary school; (0) Housing accommodations rented by a medical institution which are then subleased to a patient or patient's family; (0) Dwelling units whose rents are controlled or regulated by any government unit, agency, or authority, or whose rent is subsidized by any government unit, agency, or authority; or (0) Dwelling units acquired by the city of Palo Alto or any other governmental unit, agency or authority and intended to be used for a public purpose. (m)(e) “Tenant” "Renter" means a person or entity entitled by written or oral agreement to occupy a residential rental unit to the exclusion of others. (f) “Just cause” to terminate a tenancy means either of the following: (1) “At-fault just cause”, which means any of the following: (A) Default in the payment of rent. (B) A breach of a material term of the lease, as described in paragraph (3) of Section 1161 of the California Code of Civil Procedure, including, but not limited to, violation of a provision of the lease after being issued a written notice to correct the violation. (C) Maintaining, committing, or permitting the maintenance or commission of a nuisance as described in paragraph (4) of Section 1161 of the California Code of Civil Procedure. (D) Committing waste as described in paragraph (4) of Section 1161 of the California Code of Civil Procedure. (E) The renter had a written lease that terminated on or after July 20, 2023, and after a written request or demand from the landlord, the renter has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this chapter or any other provision of law. (F) Criminal activity by the renter on the residential rental unit, including any common areas, or any criminal activity or criminal threat, as defined in subdivision (a) of Section 422 of the California Penal Code, on or off the residential rental unit, that is directed at any landlord or agent of the landlord. Item 27 Attachment A - Draft Ordinance - Just Cause Eviction and Security Deposit Item 27: Staff Report Pg. 5 Packet Pg. 333 of 911 Not Yet Approved 230607 sm 010 5 (G) Assigning or subletting the premises in violation of the renter’s lease, as described in paragraph (4) of Section 1161 of the California Code of Civil Procedure. (H) The renter’s refusal to allow the landlord to enter the residential rental unit as authorized by Sections 1101.5 and 1954 of the California Civil Code, and Sections 13113.7 and 17926.1 of the California Health and Safety Code. (I) Using the premises for an unlawful purpose as described in paragraph (4) of Section 1161 of the California Code of Civil Procedure. (J) The employee, agent, or licensee’s failure to vacate after their termination as an employee, agent, or a licensee as described in paragraph (1) of Section 1161 of the California Code of Civil Procedure. (K) When the renter fails to deliver possession of the residential rental unit after providing the landlord written notice as provided in Section 1946 of the California Civil Code of the renter’s intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice as described in paragraph (5) of Section 1161 of the California Code of Civil Procedure. (2) “No-fault just cause,” which means any of the following: (A) Intent to occupy the residential rental unit by the landlord or their sibling, spouse, domestic partner, children, grandchildren, parents, grandparents, father-in-law, mother-in-law, son-in-law, or daughter-in-law, provided the landlord is a natural person. (B) Permanent withdrawal of the residential rental unit from offer for rent or lease pursuant to California Government Code sections 7060-7060.7. (C) The landlord complying with any of the following: (i) An order issued by a government agency or court relating to habitability that necessitates vacating the residential rental unit. (ii) An order issued by a government agency or court to vacate the residential rental unit. (iii) A local ordinance that necessitates vacating the residential rental unit. (D) Intent to demolish or to substantially remodel the residential rental unit. “Substantially remodel” means the replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit from a governmental agency, or the abatement of hazardous materials, including lead- based paint, mold, or asbestos, in accordance with applicable Item 27 Attachment A - Draft Ordinance - Just Cause Eviction and Security Deposit Item 27: Staff Report Pg. 6 Packet Pg. 334 of 911 Not Yet Approved 230607 sm 010 6 federal, state, and local laws, that cannot be reasonably accomplished in a safe manner with the renter in place and that requires the renter to vacate the residential rental unit for at least 30 days. Cosmetic improvements alone, including painting, decorating, and minor repairs, or other work that can be performed safely without having the residential rental unit vacated, do not qualify as substantial rehabilitation. (g) “Security” means any payment, fee, deposit, or charge, including, but not limited to, any payment, fee, deposit, or charge, except as provided in Section 1950.6 of the California Civil Code, that is imposed at the beginning of the tenancy to be used to reimburse the landlord for costs associated with processing a new renter or that is imposed as an advance payment of rent, used or to be used for any purpose, including, but not limited to, any of the following: (1) The compensation of a landlord for a renter’s default in the payment of rent. (2) The repair of damages to the premises, exclusive of ordinary wear and tear, caused by the renter or by a guest or licensee of the renter. (3) The cleaning of the premises upon termination of the tenancy necessary to return the unit to the same level of cleanliness it was in at the inception of the tenancy. (1)(4) To remedy future defaults by the renter in any obligation under the rental agreement to restore, replace, or return personal property or appurtenances, exclusive of ordinary wear and tear, if the security deposit is authorized to be applied thereto by the rental agreement. 9.68.030. Requirement of offering one-year written leases. (a) Offer. If a tenant renter or prospective tenant renter wishes to rent a residential rental unit from a landlord and if said landlord wishes to rent said residential rental unit to said renter tenant or prospective rentertenant, the landlord must offer to the renter tenant or prospective renter tenant a written lease which has a minimum term of one year. Such offer must be made in writing. Signing of a lease which has a minimum term of one year shall be considered an offer in writing. (b) Acceptance. If the renter tenant or prospective renter tenant accepts the offer of a written lease which has a minimum term of one year, this acceptance must be in writing. Signing a lease which has a minimum term of one year will be considered an acceptance. (c) Rejection. If the renter tenant or prospective renter tenant rejects the offer for a written lease which has a minimum term of one year, this rejection must be in writing, and the landlord and renter tenant or prospective renter tenant may then enter into an agreement, oral or written, that provides for a rental term of less than one year. Item 27 Attachment A - Draft Ordinance - Just Cause Eviction and Security Deposit Item 27: Staff Report Pg. 7 Packet Pg. 335 of 911 Not Yet Approved 230607 sm 010 7 (d) Rent. If the landlord and renter tenant enter into a written lease which has a minimum term of one year, such lease must set the rent for the residential rental unit at a rate or rates certain and these rates shall not be otherwise modified during the term of such lease. (e) Renewal of Leases. If both the landlord and the renter tenant wish to continue the rental relationship, upon the expiration of the initial written lease which has a minimum term of one year, a lease shall be offered again in accordance with the procedures of Section 9.68.030(a) through (d): (1) Leases with a term of one year shall be offered annually. (2) Leases with a term longer than one year shall be renewable at the expiration of each lease period for a minimum term of one year. (3) A landlord shall offer annually a written lease with a minimum term of one year to a renter tenant who rejected an initial offer of a written lease with a minimum term of one year but who has rented a unit from the landlord for a period of at least twelve months. (f) Applicability. This section shall not apply to: (1) A residential rental unit which is rented on the effective date of the ordinance codified in this chapter, provided, that (A) if the unit is rented subject to a written lease, when the lease in effect for such a unit expires, the ordinance codified in this chapter shall then apply; and (B) if the unit is rented without a written lease, within thirty days after the effective date of this section, the landlord shall offer a written lease to the renter tenant in accordance with this section; (2) An owner-occupied unit that is rented to a renter tenant for less than one year; (3) A residential rental unit occupied by a renter tenant who subleases that unit to another renter tenant for less than one year; (3)(4) A single-family dwelling; (5) Rooms or accommodations in hotels, boardinghouses, or lodginghouses which are rented to transient guests for a period of less than thirty days; (6) Dwelling units in a condominium, community apartment, planned development or stock cooperative as defined in Chapter 21.40, or in a limited equity stock cooperative as defined in the California Business and Professions Code; (7) Dwelling units in which housing accommodations are shared by landlord and tenant; (8) Housing accommodations in any hospital, extended care facility, asylum, nonprofit home for the aged, or in dormitories owned and operated by an institution of higher education, a high school or an elementary school; (9) Housing accommodations rented by a medical institution which are then subleased to a patient or patient's family; (10) Dwelling units whose rents are controlled or regulated by any government unit, agency, or authority, or whose rent is subsidized by any government unit, agency, or authority; Item 27 Attachment A - Draft Ordinance - Just Cause Eviction and Security Deposit Item 27: Staff Report Pg. 8 Packet Pg. 336 of 911 Not Yet Approved 230607 sm 010 8 (11) Dwelling units acquired by the city of Palo Alto or any other governmental unit, agency or authority and intended to be used for a public purpose; (4)(12) A residential rental unit where tenancy is an express condition of, or consideration for employment under a written rental agreement or contract. 9.68.040. Just-cause evictions required. (a) Applicability to residential rental units. This section shall apply to all residential rental units, except not any of the following: (1) Transient and tourist hotel occupancy as defined in in subdivision (b) of Section 1940 of the California Civil Code. (2) Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly, as defined in Section 1569.2 of the California Health and Safety Code, or an adult residential facility, as defined in Chapter 6 of Division 6 of Title 22 of the Manual of Policies and Procedures published by California’s State Department of Social Services. (3) Dormitories owned and operated by an institution of higher education or a kindergarten and grades 1 to 12, inclusive, school. (4) Housing accommodations in which the renter shares bathroom or kitchen facilities with the owner who maintains their principal residence at the residential rental unit. (5) Single-family owner-occupied residences. (6) A property containing two separate dwelling units within a single structure in which the owner occupied one of the units as the owner’s principal place of residence at the beginning of the tenancy, so long as the owner continues in occupancy, and neither unit is an accessory dwelling unit or a junior accessory dwelling unit. (7) A residential rental unit that is alienable separate from the title to any other dwelling unit, provided that both subparagraphs (A) and (B) below apply: (A) The owner is not any of the following: (i) A real estate investment trust, as defined in Section 856 of the California Internal Revenue Code. (ii) A corporation. (iii) A limited liability company in which at least one member is a corporation. (iv) Management of a mobilehome park, as defined in Section 798.2 of the California Civil Code. (B) The renters have been provided written notice that the residential property is exempt from this section. (i) Notice must be given using the following statement: “This property is not subject to the just cause eviction requirements of Chapter 9.68 of the Palo Alto Item 27 Attachment A - Draft Ordinance - Just Cause Eviction and Security Deposit Item 27: Staff Report Pg. 9 Packet Pg. 337 of 911 Not Yet Approved 230607 sm 010 9 Municipal Code. This property meets the requirements of Section 9.68.040 (a)(7) of the Palo Alto Municipal Code and the owner is not any of the following: (1) a real estate investment trust, as defined by Section 856 of the California Internal Revenue Code; (2) a corporation; (3) a limited liability company in which at least one member is a corporation; or (4) management of a mobilehome park, as defined in Section 798.2 of the California Civil Code.” (ii) The notice required under clause (i) may, but is not required to, be provided in the rental agreement. (8) Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the California Health and Safety Code, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low, or moderate income, as defined in Section 50093 of the California Health and Safety Code or comparable federal statutes. (b) Protection for renters. Notwithstanding any other law, after a renter has continuously and lawfully occupied a residential rental unit for 12 months, the landlord of the residential rental unit shall not terminate the tenancy without just cause, which shall be stated with specificity in the written notice to terminate tenancy. If any additional adult renters are added to the lease before an existing renter has continuously and lawfully occupied the residential rental unit for 24 months, then this subdivision shall only apply if either of the following are satisfied: (1) All of the renters have continuously and lawfully occupied the residential rental unit for 12 months or more. (2) One or more renters have continuously and lawfully occupied the residential rental unit for 24 months or more. (c) Opportunity to cure. Before a landlord issues a notice to terminate a tenancy for just cause that is a curable lease violation, the landlord shall first give notice of the violation to the renter with an opportunity to cure the violation pursuant to paragraph (3) of Section 1161 of the California Code of Civil Procedure. If the violation is not cured within the time period set forth in the notice, a three-day notice to quit without an opportunity to cure may thereafter be served to terminate the tenancy. (d) Notice. A landlord subject to this section shall provide notice to the tenant, which may take the form of a lease provision or an addendum to a lease, and which shall include the following, in no less than 12 -point type: “California law limits the amount your rent can be increased. See Section 1947.12 of the Civil Code for more information. Local law also provides that after Item 27 Attachment A - Draft Ordinance - Just Cause Eviction and Security Deposit Item 27: Staff Report Pg. 10 Packet Pg. 338 of 911 Not Yet Approved 230607 sm 010 10 all of the tenants have continuously and lawfully occupied the property for 12 months or more or at least one of the tenants has continuously and lawfully occupied the property for 24 months or more, a landlord must provide a statement of cause in any notice to terminate a tenancy. See Chapter 9.68 of the Palo Alto Municipal Code for more information.” (e) Dispute resolution. Nothing in this chapter abrogates the responsibility of landlords to comply with the requirements of Chapter 9.72 (Mandatory Response to Request for Discussion of Disputes between Landlords and Tenants) of the Palo Alto Municipal Code. As applicable, a renter may request mandatory discussion of rental housing disputes by filing a written request for dispute resolution according to section 9.72.040 (Dispute Resolution Process). 9.68.050. General relocation assistance or rent waiver for no-fault eviction. (a) Applicability. This section shall be applicable only to tenancies for which just cause is required to terminate the tenancy under section 9.68.040 (Just-cause evictions required), except it shall not apply to a tenancy when relocation assistance payment is available to the renter through section 9.68.060 (Relocation assistance for evictions without at-fault just cause in structures or lots containing 10 or more residential rental units) and the assistance available through section 9.68.060 is greater in value than the assistance available through this section. (b) Relocation assistance for renters. (1) Form of assistance. If a landlord issues a termination notice based on a no- fault just cause described in section 9.68.020 (f)(2), the landlord shall, regardless of the renter’s income, at the landlord’s option, do one of the following: (A) Assist the renter to relocate by providing a direct payment to the tenant as described in section 9.68.050 (b)(3). (B) Waive in writing the payment of rent for the final month of the tenancy, prior to the rent becoming due. (2) Notice required. If a landlord issues a notice to terminate a tenancy for no- fault just cause, the landlord shall notify the renter of the renter’s right to relocation assistance or rent waiver pursuant to this chapter. If the landlord elects to waive the rent for the final month of the tenancy as provided in section 9.68.050 (b)(1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy. (3) Amount. (A) The amount of relocation assistance or rent waiver shall be equal to one month of the renter’s rent that was in effect when the landlord issued the notice to terminate the tenancy. Any relocation assistance shall be provided within 15 calendar days of service of the notice. Item 27 Attachment A - Draft Ordinance - Just Cause Eviction and Security Deposit Item 27: Staff Report Pg. 11 Packet Pg. 339 of 911 Not Yet Approved 230607 sm 010 11 (B) If a renter fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance or rent waiver provided pursuant to this section shall be recoverable as damages in an action to recover possession. (C) The relocation assistance or rent waiver required by this section shall be credited against any other relocation assistance required by any other law. (4) Effect of noncompliance. A landlord’s failure to strictly comply with this subdivision shall render the notice of termination void. 9.68.035 9.68.060 Relocation assistance for no-fault evictions without at-fault just cause in structures or lots containing 10 or more residential rental units. (a) Applicability. This section shall be applicable only to structures or lots containing 10 or more residential rental units. This section shall not apply to any of the following: (1) A single-family dwelling; (2) Rooms or accommodations in hotels, boardinghouses, or lodginghouses which are rented to transient guests for a period of less than thirty days; (3) Dwelling units in a condominium, community apartment, planned development or stock cooperative as defined in Chapter 21.40, or in a limited equity stock cooperative as defined in the California Business and Professions Code; (4) Dwelling units in which housing accommodations are shared by landlord and tenant; (5) Housing accommodations in any hospital, extended care facility, asylum, nonprofit home for the aged, or in dormitories owned and operated by an institution of higher education, a high school or an elementary school; (6) Housing accommodations rented by a medical institution which are then subleased to a patient or patient's family; (7) Dwelling units whose rents are controlled or regulated by any government unit, agency, or authority, or whose rent is subsidized by any government unit, agency, or authority; or (8) Dwelling units acquired by the city of Palo Alto or any other governmental unit, agency or authority and intended to be used for a public purpose. For purposes of this section , a "no-fault eviction" means an action by a landlord to recover possession of a rental unit for any reason other than the following: (1) The tenant has failed to pay rent to which the landlord is legally entitled. (2) The tenant has violated a lawful obligation or covenant of the tenancy. The tenant has refused the landlord reasonable access to the unit for the purposes of making repairs or improvements, for any reasonable purpose as permitted by law, or for the purpose of showing the rental unit to any prospective purchaser or tenant. Item 27 Attachment A - Draft Ordinance - Just Cause Eviction and Security Deposit Item 27: Staff Report Pg. 12 Packet Pg. 340 of 911 Not Yet Approved 230607 sm 010 12 (4) The tenant is permitting a nuisance to exist in, or is causing damage to, the rental unit. (4) The tenant is using or permitting a rental unit to be used for any illegal purpose. (4) The landlord seeks in good faith to recover possession of the rental unit in order to comply with regulations relating to the qualifications of tenancy established by a governmental entity, where the tenant is no longer qualified. No fault evictions shall include, without limitation, actions in which the landlord seeks in good faith to recover possession of the rental unit: (4) To demolish or otherwise permanently withdraw the rental unit from offer for rent or lease pursuant to California Government Code section s 7060-7060.7. (4) To perform work on the building or buildings housing the rental unit that will render the rentable unit uninhabitable; (4) For use and occupancy by the landlord or the landlord's spouse, grandparents, brother, sister, father-in-law, mother-in-law, son-in-law, daughter-in-law, children, or parents provided the landlord is a natural person. (4) For no specified cause. (a)(b) Amount required. Whenever a landlord seeks an eviction for any reason other than to comply with regulations relating to the qualifications of tenancy established by a governmental entity or at-fault just cause, as defined in this Chapter, other than temporary displacement of 31 days or fewer, the landlord shall provide a relocation assistance payment as follows: (1) Unit Type Amount 0 bedrooms $7,000 1 bedroom $9,000 2 bedrooms $13,000 3 or more bedrooms $17,000 If the residential rental unit is occupied by two or more tenantrenters, the landlord shall provide each tenantrenter with a proportional share of the required payment. One half of the payment shall be paid at the time that the landlord provides notice of its intent to seek no-fault a qualifying eviction; the remainder of the payment shall be paid to each tenantrenter when that tenantrenter vacates the unit. (2) Notwithstanding subsection (db)(1), each residential rental unit that, at the time the landlord provides notice of its intent to seek no-faultan eviction subject to this section, is occupied by a low-income household as defined in Chapter 16.65, a tenantrenter who is 60 years of age or older, a tenantrenter who is disabled within the meaning of Government Code section 12955.3, or a tenantrenter who is a minor, shall be entitled to a single additional relocation payment of $3,000. This amount shall be divided equally among the qualifying Item 27 Attachment A - Draft Ordinance - Just Cause Eviction and Security Deposit Item 27: Staff Report Pg. 13 Packet Pg. 341 of 911 Not Yet Approved 230607 sm 010 13 (i.e. low-income, elderly, disabled, or minor) tenantrenters. In order to receive this additional payment a qualifying tenantrenter must provide written notice to the landlord of his or her eligibility along with supporting evidence within 15 days of receiving the landlord's notice. The entirety of this additional payment shall be paid within 15 days of the tenantrenter's written notice to the landlord. (b)(c) Notice. Prior to or at the same time that the landlord provides notice of its intent to seek no-faultan eviction subject to this section, the landlord shall serve on the tenantrenter a written notice describing the rights described in this section. The failure to provide this notice shall not operate as a substantive defense to an eviction pursuant to California Government Code sections 7060 - 7060.7. (c)(d) Annual adjustment. Commencing July 1, 2019, the relocation payments specified in this section shall increase annually at the rate of increase in the "rent of primary residence" expenditure category of the Consumer Price Index (CPI) for all urban consumers in the San Francisco-Oakland-San JoseHayward Region, not seasonally adjusted, for the preceding calendar year. Current rates shall be published on the city's website. (d)(e) Request for waiver. A landlord may request a waiver or adjustment of the relocation assistance payment required by this section only upon a showing that strict application of its requirements would effectuate an unconstitutional taking of property or otherwise have an unconstitutional application to the property. Requests for waiver or adjustment must be submitted in writing to the director of planning and development services together with supporting documentation at least 90 days before the proposed termination of tenancy. Requests shall be acted on by the city council. (e)(f) Authority to regulate. The director of planning and development services may issue regulations implementing this section. 9.68.070. Security deposit limit. (a) Applicability. This section applies to security for leases of all residential rental units. (b) Limits. A landlord may not demand or receive security, however denominated, in an amount or value in excess of an amount equal to one and a half months’ rent, in the case of unfurnished rental units, in addition to any rent for the first month paid on or before initial occupancy. (c) Security deposit purposes. The landlord may claim of the security only those amounts as are reasonably necessary for the purposes specified in subdivision 9.68.020 (g). The landlord may not assert a claim against the renter or the security for damages to the premises or any defective conditions that preexisted the tenancy, for ordinary wear and tear or the effects thereof, whether the wear and tear preexisted the tenancy or occurred during the tenancy, or for the cumulative effects of ordinary wear and tear occurring during any one or more tenancies. Item 27 Attachment A - Draft Ordinance - Just Cause Eviction and Security Deposit Item 27: Staff Report Pg. 14 Packet Pg. 342 of 911 Not Yet Approved 230607 sm 010 14 9.68.040 9.68.080 TenantRenter's remedies. (a) Defense to Action to Recover Possession. Failure of a landlord to comply with any of the provisions of this chapter shall provide the tenantrenter with a defense in any legal action brought by the landlord to recover possession of the residential rental unit. (b) Defense to Action to Collect Rent. Failure of a landlord to comply with any of the provisions of this chapter shall provide the tenant renter with a defense in any legal action brought by the landlord to collect rent. (c) Injunctive Relief. A tenant renter may seek injunctive relief on his or her own behalf and on behalf of other affected tenants renters to enjoin the landlord's violation of this chapter. (d) Remedies are Nonexclusive. Remedies provided in this section are in addition to any other existing legal remedies and are not intended to be exclusive. 9.68.050 9.68.090 Nonwaiver. Any waiver or purported waiver by a tenantrenter of rights under this chapter prior to the time when such rights may be exercised, except a rejection of a one-year lease offered in accordance with Section 9.68.030, shall be void as contrary to public policy. SECTION 3. If any section, subsection, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portion or sections of the Ordinance. The Council hereby declares that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid. SECTION 4. The Council finds that this project is exempt from the provisions of the California Environmental Quality Act (“CEQA”), pursuant to Section 15061 of the CEQA Guidelines, because it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment. SECTION 5. This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: PASSED: AYES: Item 27 Attachment A - Draft Ordinance - Just Cause Eviction and Security Deposit Item 27: Staff Report Pg. 15 Packet Pg. 343 of 911 Not Yet Approved 230607 sm 010 15 NOES: ABSENT: ABSTENTIONS: ATTEST: ____________________________ ____________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: ____________________________ ____________________________ City Attorney City Manager ____________________________ Director of Planning and Development Services ____________________________ Director of Community Services ____________________________ Director of Administrative Services Item 27 Attachment A - Draft Ordinance - Just Cause Eviction and Security Deposit Item 27: Staff Report Pg. 16 Packet Pg. 344 of 911 Item No. 28. Page 1 of 10 1 6 8 4 CITY COUNCIL STAFF REPORT From: City Manager Report Type: Action Lead Department: Utilities Meeting Date: June 19, 2023 Staff Report: 2302-0939 TITLE Finance Committee Recommends Adoption of Four Resolutions: 1) Approving the Fiscal Year 2024 Wastewater Collection Utility Financial Plan, Proposed Reserve Transfers, and Increasing Wastewater 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; 3) Amending Utility Rate Schedules EDF- 1 and EDF-2, to Increase Dark Fiber Rates by 4.9 Percent and amending Rate Schedule EDF-3 to make technical revisions with no rate change; and 4) Amending Utility Rate Schedule D-1 Increasing the Storm Water Management Fee by 4.9 Percent per Month per Equivalent Residential Unit for FY 2024; and CEQA Status: Not a project under CEQA Guidelines Section 15378(b)(4) and (5) and exempt under Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a) RECOMMENDATION Finance Committee, the Utilities Advisory Commission (UAC) and staff recommend that the City Council adopt the following: 1. For the Wastewater Collection Utility, a Resolution1: a. Approving the Fiscal Year 2024 Wastewater Collection Financial Plan2, including a 9% wastewater rate increase; and b. Approving a transfer of up to $3.178 million from the Capital Improvement Projects Reserve to the Operations Reserve in FY 2023; and c. Approving a transfer of up to $342 thousand from the Rate Stabilization Reserve to the Operations Reserve in FY 2023; and d. Increasing the Wastewater Collection Utility Rates via the Amendment of Rate Schedules3 1 Wastewater Resolution https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/attachments/03-01-2023-id-2301-0798-ww-resolution.pdf 2 Fiscal Year 2024 Wastewater Financial Plan https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/attachments/03-07-2023-id-2302-0944-ww-financial-plan-lisa.pdf 3 Wastewater Rate Schedules https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/attachments/06-19-2023-id-2302-0939-wastewater-rate-schedules- fy24-combined.pdf Item 28 Item 28 Staff Report Item 28: Staff Report Pg. 1 Packet Pg. 345 of 911 Item No. 28. Page 2 of 10 1 6 8 4 S-1 (Residential Wastewater Collection and Disposal), S-2 (Commercial Wastewater Collection and Disposal), S-6 (Restaurant Wastewater Collection and Disposal) and S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger) 2. For the Water Utility, a Resolution4: a. Approving the FY 2024 Water Utility Financial Plan5, including a 2% water distribution rate increase; and b. Approving a transfer of up to $3.746 million from the Capital Improvement Program (CIP) Reserve to the Operations Reserve in FY 2023; and c. Approving a transfer of up to $3.0 million from the Rate Stabilization Reserve to the Operations Reserve in FY 2023; and d. Increasing Water Utility Rates via the Amendment of Rate Schedules6 W-1 (General Residential Water service), W-2 (Water Service from Fire Hydrants), W3 (Fire Service Connections), W-4 (Residential Master-Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) 3. A Resolution Amending Utility Rate Schedules EDF-1 and EDF-27 to increase Dark Fiber Rates 4.9 percent, and amending Schedule EDF-3 to reflect minor edits with no rate change; 4. A Resolution Amending Utility Rate Schedule D-18 increasing the Storm Water Management Fee by 4.9 percent consistent with the applicable Consumer Price Index. EXECUTIVE SUMMARY In March and April 2023, the UAC, Finance Committee, and City Council reviewed the proposed rate changes recommended by Staff for Fiscal Year (FY) 2024. This report summarizes the meetings that occurred, including all staff recommendations. This utility rates report includes sections for wastewater collection, water, dark fiber, and storm water management. Estimates for retail revenue impacts are included in the FY 2024 budget assumptions. This report outlines the actions requested, transmits the resolutions from these reviews, and requests City Council approval and adoption. Approval of this item would result in implementation of the finalized rates for FY 2024, beginning July 1, 2023. 4 Water Resolution https://cityofpaloalto.primegov.com/meeting/attachment/791.pdf?name=Attachment%20A,%20Water%20Resolu tion%20FY%202024 5 Fiscal Year 2024 Water Financial Plan https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/attachments/06-19-2023-id-2302-0939-water-financial-plan-fy24- cc.pdf 6 Water Rate Schedules https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city- manager-reports-cmrs/attachments/06-19-2023-id-2302-0939-water-rate-schedules-fy24-combined.pdf 7 Dark Fiber Resolution https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city- manager-reports-cmrs/attachments/06-19-2023-id-2302-0939-dark-fiber-optic-resolution.pdf and Rate Schedules https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city- manager-reports-cmrs/attachments/06-19-2023-id-2302-0939-dark-fiber-rate-schedules-fy-24-combined.pdf 8 Storm Water Management Fee Resolution https://cityofpaloalto.primegov.com/meeting/attachment/668.pdf?name=Attachment%20B%20- %20Resolution%20Amending%20Utility%20Rate%20Schedule%20D- 1%20(DRAFT%20Storm%20&%20Surface%20Water%20Drainage) and Rate Schedule https://cityofpaloalto.primegov.com/meeting/attachment/667.pdf?name=Attachment%20A%20- %20Rate%20Schedule%20D-1%20(DRAFT) Item 28 Item 28 Staff Report Item 28: Staff Report Pg. 2 Packet Pg. 346 of 911 Item No. 28. Page 3 of 10 1 6 8 4 The overall system average proposed rate changes are below, with the expected average utility bill for residential service to increase 3% in FY 2024. - 9% increase for wastewater, - 5% increase for water, - 4.9% increase for Dark Fiber rate schedules EDF-1 and EDF-2 and - 4.9% increase for the Storm Water Management Fee. - 5% decrease for electric [approved by Council April 17th], and - 8% increase for gas [approved by Council April 17th]. Drivers of the water and wastewater rate changes include rising costs of construction inflation, commodity prices and the rising cost to transport water. Additionally, infrastructure is aging, and investment is needed to maintain the health and reliability of the water and wastewater utilities. On April 17, 2023, the Council held a study session9 and a Gas10 and Electric11 public hearing regarding rates for those utilities and approved the Gas and Electric rate changes. For this reason, this report does not address Gas and Electric utility rates. On the same day, the Council directed staff to proceed with Proposition 218 notification of Water and Wastewater rate changes recommended by Finance Committee on March 21, 2023, and agendize a public hearing for these rates on June 19, 2023. Staff completed the Proposition 218 customer notifications and revised the Water utility financial plan, and rate sheets consistent with the Council and Finance Committee’s direction (for a 2% water distribution rate increase). BACKGROUND Wastewater Collection & Water For both Wastewater Collection and Water utilities, on April 17, to proceed with Proposition 218 notification of Water and Wastewater rate changes recommended by Finance Committee on March 21, 2023, and agendize a public hearing for these rates on June 19, 2023.12 Staff sent the Prop 218 notifications13 on April 27, 2023. The following are the reviews that culminated in the April 17th City Council review. 9 City Council Meeting April 17, 2023, Agenda Item 3 STUDY SESSION https://cityofpaloalto.primegov.com/meeting/document/1996.pdf?name=Item%203%20Staff%20Report 10 City Council Meeting April 17, 2023, Action Item 14 PUBLIC HEARING https://cityofpaloalto.primegov.com/meeting/document/1964.pdf?name=Item%2014%20Staff%20Report 11 City Council Meeting April 17,2023, Action Item 15 PUBLIC HEARING https://cityofpaloalto.primegov.com/meeting/document/1982.pdf?name=Item%2015%20Staff%20Report 12 April 17, 2023 City Council Item 10 https://cityofpaloalto.primegov.com/meeting/document/1963.pdf?name=Item%2010%20Staff%20Report 13 https://www.cityofpaloalto.org/files/assets/public/utilities/rates-schedules-for-utilities/final_prop- 218_w_graphic-design-2023.pdf Item 28 Item 28 Staff Report Item 28: Staff Report Pg. 3 Packet Pg. 347 of 911 Item No. 28. Page 4 of 10 1 6 8 4 Wastewater Collection Utilities staff presented to the UAC on March 1, 2023,14 the Finance Committee on March 7, 202315 and March 21, 202316 a recommendation that Council approve the FY 2024 Wastewater Utility Financial Plan as follows: Staff recommended the following transfers at the end of FY 2023: 1. up to $3.178 million from the Capital Improvement Projects Reserve to the Operations Reserve; and 2. up to $342 thousand from the Rate Stabilization Reserve to the Operations Reserve; and Staff also recommended the following rate actions for FY 2024: 3. An increase to retail Wastewater Collection Utility Rates S-1 (Residential Wastewater Collection and Disposal), S-2 (Commercial Wastewater Collection and Disposal), S-6 (Restaurant Wastewater Collection and Disposal) and S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger) of 9% effective July 1, 2023 The UAC unanimously approved the staff recommendation. When staff first made this recommendation to the Finance Committee at the March 7, 2023 meeting the Finance Committee did not approve it, but instead asked staff to return with additional information for further evaluation for the Wastewater Utility. When staff returned to the Finance Committee on March 21, 2023 the Committee unanimously recommended approval of the staff recommendation as written in Staff Report 2302-094417 after reviewing the additional information. Water Utilities staff presented a Water financial plan with a 3% water distribution rate increase to the UAC on March 1, 202318, and to the Finance Committee on March 7, 202319. On March 21, 202320 staff revised this recommendation to a 2% water distribution rate increase as follows: Staff recommended the following transfers at the end of FY 2023: 1. up to $3.746 million from the Capital Improvement Program (CIP) Reserve to the Operations Reserve in FY 2023; and 14 Utilities Advisory Commission March 1, 2023 Meeting https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-advisory- commission/archived-agenda-and-minutes/agendas-and-minutes-2023/03-mar-2023/03-01-2023-item-1.pdf 15 Finance Committee Staff Report 2302-0944 https://cityofpaloalto.primegov.com/meeting/document/1691.pdf?name=Staff%20Report 16 Finance Committee Staff Report 2302-1107 https://cityofpaloalto.primegov.com/meeting/document/1852.pdf?name=Item%202%20Staff%20Report 17 Utilities Advisory Commission Staff Report 2302-0944 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-advisory- commission/archived-agenda-and-minutes/agendas-and-minutes-2023/03-mar-2023/03-01-2023-item-1.pdf 18 Utilities Advisory Commission March 1, 2023 Meeting https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-advisory- commission/archived-agenda-and-minutes/agendas-and-minutes-2023/03-mar-2023/03-01-2023-agenda-and- packet.pdf 19 Finance Committee March 7, 2023 Staff Report 2302-1011 https://cityofpaloalto.primegov.com/meeting/document/1759.pdf?name=Staff%20Report 20 Finance Committee March 21, 2023 Staff Report 2302-1125 https://cityofpaloalto.primegov.com/meeting/document/1871.pdf?name=Item%201%20Staff%20Report Item 28 Item 28 Staff Report Item 28: Staff Report Pg. 4 Packet Pg. 348 of 911 Item No. 28. Page 5 of 10 1 6 8 4 2. up to $3.0 million from the Rate Stabilization Reserve to the Operations Reserve in FY 2023; and Staff also recommended the following rate actions for FY 2024: 3. An increase to retail Water Distribution Utility Rates W-1 (General Residential Water service), W-2 (Water Service from Fire Hydrants), W3 (Fire Service Connections), W-4 (Residential Master-Metered and General Non-Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) of 2% effective July 1, 2023 The Finance Committee unanimously recommended approval of this proposal on March 21, 2023. Storm Drain On March 7, 2023, Public Works staff presented the Finance Committee with a recommendation that the City Council adopt a resolution amending Utility Rate Schedule D-1 (Storm and Surface Water Drainage) to implement a 4.9 percent rate increase consistent with the applicable Consumer Price Index, increasing the monthly charge per Equivalent Residential Unit (ERU) by $0.78, from $15.98 to $16.76 for FY 2024. See Staff Report 2302-095721 for more information. The Finance Committee unanimously recommended approval of this proposal on March 7, 2023. ANALYSIS Based upon feedback from the UAC, Finance Committee and City Council during March and April 2023, this report requests City Council adoption of the remaining proposed rate changes for Fiscal Year (FY) 2024. This report contains links to the documents referenced and links to the City’s website for all the staff reports presented through the review process to the UAC, Finance Committee and City Council. Staff and the Finance Committee recommend that the City Council approve the utility financial plans, reserve transfers and proposed rate changes listed below. The City Council has already approved the rate changes and financial plans for both the Gas and Electric utilities on April 17, 2023. Proposed Rate Changes and Financial Plans Wastewater Collection Proposal The City’s Wastewater Collection (sewer) system collects wastewater from Palo Alto residents and delivers it to the Regional Water Quality Control Plant (RWQCP) for treatment. The City of Palo Alto runs the RWQCP, which also treats wastewater for five other partner agencies (Stanford, East Palo Alto Sanitary District, Los Altos Hills, Los Altos, and Mountain View). Some of the wastewater for certain partner agencies is also transported across the City’s wastewater collection system. The Wastewater Collection Utility has two main costs: Palo Alto’s share of the cost of running the RWQCP (treatment costs) and the costs of operating and maintaining the collection system. One of the main drivers for the increase in the Wastewater Collection Utility’s costs (and therefore rates) over the next several years is the cost for wastewater treatment, which is projected to increase by an average of 6.2% annually from FY 2022 to FY 2028 as the City makes several upgrades to the RWQCP. Increases to capital expenses begin in FY 2024 with the Joint Intercepting Sewer Rehabilitation construction, funded on a pay-as-you-go basis. Additional debt service payments begin as estimated: 21 Finance Committee March 7, 2023 Staff Report 2302-0957 https://cityofpaloalto.primegov.com/meeting/document/1704.pdf?name=Staff%20Report Item 28 Item 28 Staff Report Item 28: Staff Report Pg. 5 Packet Pg. 349 of 911 Item No. 28. Page 6 of 10 1 6 8 4 - In FY 2025 for the Primary Sedimentation Tank, - In FY 2028, for the construction of an Outfall Line, Lab/Technical Services building, and Operations building remodel, and - In 2029 for Secondary Treatment Upgrades and Headworks. Staff projects Wastewater Collection operations and CIP costs (excluding costs associated with treatment) to increase by approximately 3.7% annually from FY 2022 to FY 2028; operations costs are projected to grow an average of 1.4% annually over the same time period. The Wastewater Collection Utility undertakes a larger main replacement project every other year. Undertaking a larger main replacement project every other year allows staff to continue replacing wastewater mains that are in poor condition, while easing scheduling difficulties for inspection coverage due to shared staffing across Water, Wastewater, Gas, and large development services projects. Over the last few years, main replacement costs have been increasing for utilities due to economic activity in the Bay Area causing construction cost inflation. It is likely that this trend will continue in the short term. The Finance Committee, UAC and staff recommend accelerating the rate of main replacements, from 1 mile to 2.5 miles per year beginning in FY 2026. This acceleration will allow the Wastewater Collection Utility to replace the last main no more than approximately 8 years beyond its anticipated 100-year life expectancy. Staff’s recommendation attempts to minimize rate impacts while also prudently managing the City’s infrastructure and maintaining an acceptable level of risk. Staff proposes a 9% overall rate increase in FY 2024, 9% annual rate increases in FY 2025 and FY 2026, 8% in FY 2027 and 5% in FY 2028, to cover current and projected costs. Water Proposal The City’s water rate schedules currently consist of a volumetric charge for each CCF (100 Cubic Feet or 748 gallons) of water consumed during the billing period and a monthly service charge for each customer, based on water meter size. The volumetric charge has two parts: a wholesale commodity rate (or San Francisco Public Utilities Commission or SFPUC wholesale rate), and a volumetric rate. Water rates are designed to recover the City’s costs of buying and distributing water while maintaining adequate financial reserves. The volumetric rate and the monthly service charge together are considered distribution rates; revenue from those rates pay for the upkeep of Palo Alto’s distribution system. Revenue from the wholesale commodity rate pays for the City’s cost of buying water from the SFPUC. The FY 2024 Water Utility Financial Plan includes projections of the utility’s costs and revenues for FY 2023 through FY 2028. The Financial Plan projects costs to rise by about 2-3% per year over the next several years. California has experienced drought over the past 3 years and customer response to state, regional and local calls for water conservation reduced water sales revenue. In FY 2022, water sales revenue declined by 7% compared with FY 2021; the FY 2023 Financial Plan anticipated this level of reduction and there was adequate funding in the Operations Reserve as well as offsetting cost reductions due to lower water purchase costs. On April 11, 2023, Palo Alto’s water supplier, the San Francisco Public Utilities Commission (SFPUC), rescinded the Water Shortage Emergency Declaration but kept the voluntary San Francisco Regional Water system-wide water use reduction of 11% in place until the State’s emergency regulation expires in June. Palo Alto’s water use restrictions track both the State’s regulation and SFPUC’s water use regulation. Staff expects some rebound in water sales during FY 2024, while some water conservation is projected to be permanent. Other revenues also declined below prior forecast levels primarily due to reductions in Item 28 Item 28 Staff Report Item 28: Staff Report Pg. 6 Packet Pg. 350 of 911 Item No. 28. Page 7 of 10 1 6 8 4 water service connection and capacity fee revenue. These drought impacts put upward pressure on water rates. While these rate increases can be perceived as decreasing the benefit of conservation, bills for customers who conserve will be lower in the future than they would have been without conservation. The Water Fund’s healthy reserve levels allowed the Water Utility to hold rates flat for two years (FY 2021 and FY 2022) and provide adequate funding for the first year of drought-related sales revenue reductions in FY 2022. Additionally, the Finance Committee and staff propose the Water Utility use remaining reserves to mitigate distribution rate increases (rates that cover the cost to deliver water within the City) to 2% in FY 2024 and to 7% annually from FY 2025 through FY 2028 while still funding essential capital investments. Customers pay a separate commodity rate for purchased water from the SFPUC relative to the rest of the distribution-related portion of the volumetric rates. This commodity charge passes through SFPUC rate increases to customers (Resolution 9844).22 The pass-through commodity rate is currently $4.75 per hundred cubic feet (CCF). On May 9, 2023, SFPUC held a public hearing and adopted the FY 2024 wholesale water rate of $5.21 per CCF, effective July 1, 2023; this represents an increase of 9.7% from the current rate. Palo Alto will notify customers at least 30 days in advance of the pass-through rate increase via their billing statements or by any other mailing by CPAU to the customer’s regular billing address. Dark Fiber Proposal Since 2007, the EDF-1 and EDF-2 rates for Dark Fiber customers have increased annually by the annual December change in the Consumer Price Index for All Urban Consumers (CPI-U) in the San Francisco area, as stated in their dark fiber license agreements and rate schedules. Based on prior UAC and City Council direction, these rate changes are routinely included as part of the Budget adoption process rather than in a separate staff report. This year’s change in CPI-U was 4.9 percent, as reported by the Bureau of Labor Statistics. The City has five customers remaining on the EDF-1 rate schedule, which applies to customer accounts established before September 18, 2006. All other dark fiber customers are on the EDF-3 rate schedule, which has remained unchanged since its inception on September 18, 2006, and no rate change is recommended for this year. The attached rate schedules EDF-1, EDF-2 and EDF-3 include minor clarifications that are not substantive to synchronize the rate schedules with the defined terms in City of Palo Alto Utilities Rule and Regulation 2. Storm Water and Surface Water Drainage Proposal On April 11, 2017, a majority of Palo Alto property owners approved a ballot measure approving a monthly Storm Water Management Fee. This fee funds thirteen storm drainage capital improvement projects listed in the ballot measure, enhanced maintenance of the storm drainage system, and a variety of storm water quality protection programs. The approved ballot measure allows for an annual adjustment based on the Consumer Price Index (CPI) or six percent, whichever is less. The Storm Water and Surface Drainage Rate will increase 4.9 percent, increasing the monthly charge per Equivalent Residential Unit (ERU) by $0.78, from $15.98 to $16.76 for Fiscal Year 2024 effective July 1, 2023, to reflect the annual CPI change. See Staff Report 2302-0957 for more information.23 22 Resolution 9844 https://www.cityofpaloalto.org/files/assets/public/city-clerk/resolutions/reso- 9844.pdf?t=69020.51 23 Finance Committee March 7, 2023 Meeting Stormwater Management Staff Report #2302-0957 https://cityofpaloalto.primegov.com/meeting/document/1704.pdf?name=Staff%20Report Item 28 Item 28 Staff Report Item 28: Staff Report Pg. 7 Packet Pg. 351 of 911 Item No. 28. Page 8 of 10 1 6 8 4 TIMELINE Water and Wastewater Collection Rates After the June 19th Public Hearing is opened and testimony from members of the public accepted, City Council may choose to: 1. Close the hearing and take action; or 2. Close the hearing and defer action until the close of the Budget Adoption Hearing on June 19th; Unless written protests are filed by a majority of affected Water and Wastewater customers, Council may vote on the proposed rate actions. If approved, the Water and Wastewater rates will become effective July 1, 2023. Dark Fiber and Storm Water rates, as well as Utility Financial Plans The dark fiber and storm drainage rates will be considered at the June 19, 2023 public hearing. Should the City Council take action to approve any or all of these rates, they will become effective July 1, 2023. The City Council will also consider changes to Financial Plans and/or Reserve Management Policies for the Wastewater Collection and Water utilities, and should the Council take action to approve any or all of these plans and/or policies, they will also become effective July 1, 2023. Additionally, for the water commodity pass-through rate, SFPUC voted to increase the wholesale water rate to $5.21 per CCF effective July 1, 2023. Staff provided Palo Alto customers with notice of the wholesale rate increase and will pass-through the increase. FISCAL/RESOURCE IMPACT Utility fund resource impacts of the recommendations summarized in this report include the continued financial solvency of the various utilities through the revenue increases described below. Following are the estimated FY 2024 revenue impacts of the recommendations in this report: • Staff projects estimated revenue for the Water Utility in FY 2024 to increase by $2.5 million or 5% compared to FY 2023 levels. This estimate includes the SFPUC wholesale rate increase of 9.7%. • For Wastewater Collection, staff projects revenues in FY 2024 to increase by approximately $1.8 million or 9% compared to FY 2023 levels because of the proposed rate changes. • The proposed 4.9% fee increase is expected to increase FY 2024 revenue to the Storm Water Management Fund by approximately $0.4 million. • The Dark Fiber rate increase is the CPI index of 4.9% for rate schedules EDF-1 and EDF-2. Staff expects this to increase FY 2024 revenue for Dark Fiber by approximately $0.03 million. For those on the EDF-3 rate, there is no increase. The recommendations summarized in this report are reflected in the FY 2024 Proposed Operating Budget except for the Water Utility, which will require revenue and expense adjustments to align with the final SFPUC wholesale rate increase, as that information was not available at the time the budget was produced. Staff will bring these water adjustments forward for Council consideration through the annual budget process. POLICY IMPLICATIONS Policy Implications related to the proposed Wastewater Collection, Water, and Storm Water Management fee rate actions are detailed fully in the linked Finance Committee reports. There are no policy changes contained in the adoption of the proposed new Dark Fiber rates. Item 28 Item 28 Staff Report Item 28: Staff Report Pg. 8 Packet Pg. 352 of 911 Item No. 28. Page 9 of 10 1 6 8 4 STAKEHOLDER ENGAGEMENT On March 1, 202324 the UAC reviewed and approved the FY 2024 Water and Wastewater Collection Utility Financial Plans and Rate Proposals. • Wastewater Collection Staff Report Action Item 125 • Water Staff Report Action Item 226 The UAC voted unanimously to approve staff’s proposals. On March 7, 202327, the Finance Committee reviewed the FY 2024 Water, Wastewater Collection Utility Financial Plans and Rate Proposals and the Stormwater Management fee increase. • Wastewater Collection Staff Report # 2302-094428 • Water Staff Report # 2301-101129 • Storm Water Management Staff Report # 2302-095730 The Finance Committee approved the Water Utility proposals unanimously and continued the Wastewater item to March 21, 2023 and asked staff to return with additional information for further evaluation. The Finance Committee unanimously approved the Storm Water Management proposals. On March 21, 202331, the Finance Committee reviewed the FY 2024 Water, and Wastewater Collection Financial Plans and Rate Proposals • Wastewater Collection Staff Report # 2302-110732 and Supplemental Memo33 24 Utilities Advisory Commission Meeting of March 1, 2023 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-advisory- commission/archived-agenda-and-minutes/agendas-and-minutes-2023/03-mar-2023/03-01-2023-agenda-and- packet.pdf 25 Utilities Advisory Commission Meeting March 1, 2023, Action item 1 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-advisory- commission/archived-agenda-and-minutes/agendas-and-minutes-2023/03-mar-2023/03-01-2023-item-1.pdf 26 Utilities Advisory Commission Meeting March 1, 2023, Action item 2 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/utilities-advisory- commission/archived-agenda-and-minutes/agendas-and-minutes-2023/03-mar-2023/03-01-2023-item-2.pdf 27 Finance Committee Meeting March 7, 2023 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=11235 28 Finance Committee Meeting March 7, 2023, Action Item 2 https://cityofpaloalto.primegov.com/meeting/document/1691.pdf?name=Staff%20Report 29 Finance Committee Meeting March 7, 2023, Action Item 1 https://cityofpaloalto.primegov.com/meeting/document/1759.pdf?name=Staff%20Report 30 Finance Committee Meeting March 7, 2023, Action Item 3 https://cityofpaloalto.primegov.com/meeting/document/1704.pdf?name=Staff%20Report 31 Finance Committee Meeting March 21, 2023 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=11228 32 Finance Committee Meeting March 21, 2023, Action Item 2 https://cityofpaloalto.primegov.com/meeting/document/1852.pdf?name=Item%202%20Staff%20Report 33 Finance Committee Meeting March 21, 2023, Action Item 2 https://cityofpaloalto.primegov.com/meeting/attachment/1081.pdf?name=Item%202%20Supplemental%20Mem o Item 28 Item 28 Staff Report Item 28: Staff Report Pg. 9 Packet Pg. 353 of 911 Item No. 28. Page 10 of 10 1 6 8 4 • Water Staff Report # 2303-112534 and Supplemental Memo35 The Finance Committee unanimously approved the Water and Wastewater Collection Proposals. On April 17, 2023,36 the City Council reviewed the FY 2024 Water, and Wastewater Collection Financial Plans and Rate Proposals and directed staff to proceed with Proposition 218 notification of Water and Wastewater rate changes recommended by Finance Committee on March 21, 2023, and agendize a public hearing for these rates on June 19, 2023. The City Council voted to approve this item 6-1 with Council Member Tanaka voting no. ENVIRONMENTAL REVIEW Adoption of the referenced Financial Plans and budgeted transfers does not meet the California Environmental Quality Act’s definition of a project, pursuant to CEQA Guidelines Section 15378(b)(4) and (5), because it is a governmental fiscal and administrative activity which will not cause a direct or indirect physical change in the environment. Adoption of the proposed Wastewater Collection, Water, Storm Water Management fee, and Dark Fiber rates to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and CEQA Guidelines Section 15273(a). After reviewing the staff report and all referenced financial plans, rate schedules, and resolutions presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. ATTACHMENTS Attachment A: Dark Fiber Optic Resolution Attachment B: Storm Drain and Surface Resolution and Amending Utility Rate Schedule D-1 Attachment C: Wastewater FY24 Resolution Attachment D: Water FY24 Resolution Attachment E: Dark Fiber Rate Schedules Attachment F: Wastewater Rate Schedules Attachment G: Water Rate Schedules APPROVED BY: Dean Batchelor, Director of Utilities Staff: Utility Rates Team Lisa Bilir, Senior Resource Planner Micah Babbitt, Senior Resource Planner Eric Wong, Resource Planner 34 Finance Committee Meeting March 21, 2023, Action Item 1 https://cityofpaloalto.primegov.com/meeting/document/1871.pdf?name=Item%201%20Staff%20Report 35 Finance Committee Meeting March 21, 2023, Action item 1 https://cityofpaloalto.primegov.com/meeting/attachment/1078.pdf?name=Item%201%20Supplemental%20Mem o 36 April 17, 2023 City Council Item 10 https://cityofpaloalto.primegov.com/meeting/document/1963.pdf?name=Item%2010%20Staff%20Report Item 28 Item 28 Staff Report Item 28: Staff Report Pg. 10 Packet Pg. 354 of 911 6056632 1 6 3 4 *Not Yet Passed* Resolution No.____ Resolution of the Council of the City of Palo Alto Adopting a Dark Fiber Rate Increase and Amending Rate Schedules EDF-1 (Dark Fiber Licensing Services), EDF-2 (Dark Fiber Connection Fees), and EDF-3 (Dark Fiber Licensing Services) The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule EDF-1 (Dark Fiber Licensing Services) is hereby amended to read as attached and incorporated. Utility Rate Schedule EDF-1, as amended, shall become effective July 1, 2023. SECTION 2. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule EDF-2 (Dark Fiber Connection Fees) is hereby amended to read as attached and incorporated. Utility Rate Schedule EDF-2, as amended, shall become effective July 1, 2023. SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule EDF-3 (Dark Fiber Licensing Services) is hereby amended to read as attached and incorporated. Utility Rate Schedule EDF-3, as amended, shall become effective July 1, 2023. SECTION 4. The Council finds that the revenue derived from the adoption of this resolution shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. // // // // // // // // // // // Item 28 Attachment A - Dark Fiber Optic Resolution Item 28: Staff Report Pg. 11 Packet Pg. 355 of 911 6056632 2 6 3 4 // SECTION 4. The Council finds that the adoption of this resolution increasing Dark Fiber utility rates by the Consumer Price Index to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: ______________________________________________________ City Clerk Mayor APPROVED AS TO FORM:APPROVED: ______________________________________________________ Assistant City Attorney City Manager ___________________________ Director of Utilities ___________________________ Director of Administrative Services Item 28 Attachment A - Dark Fiber Optic Resolution Item 28: Staff Report Pg. 12 Packet Pg. 356 of 911 *YET TO BE PASSED* Resolution No. Resolution of the Council of the City of Palo Alto Amending Utility Rate Schedule D-1 (Storm and Surface Water Drainage) to Increase Storm Water Management Fee Rates by 4.9% Per Month Per Equivalent Residential Unit for Fiscal Year 2024 A. In April 2017, a majority of property owners approved a ballot measure adopting a monthly Storm Water Management Fee to fund storm drain capital improvements projects, enhanced maintenance of the storm drain system, storm water quality protection programs, and related activities. B. The ballot measure allowed for annual increases to the fee based on lesser of the local rate of inflation (based on changes to the Consumer Price Index for the San Francisco-Oakland-San Jose region as published by the Bureau of Labor Statistics) or 6%. C. According to the Bureau of Labor Statistics, the Consumer Price Index for the San Francisco-Oakland-San Jose region increased by 4.9% between December 2021 and December 2022. The Council of the City of Palo Alto RESOLVES as follows: SECTION 1. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule D-1 (Storm and Surface Water Drainage) is hereby amended to read in accordance with sheet D-1-1, attached hereto and incorporated herein. The foregoing Utility Rate Schedule, as amended, shall become effective July 1, 2023. SECTION 2. The Council finds that this rate increase is being imposed to offset the effects of inflation on labor and material costs pursuant to the annual inflationary fee escalator provision of the Storm Water Management Fee ballot measure, which was approved by a majority of Palo Alto property owners on April 11, 2017. SECTION 3. The Council finds that the revenue derived from the authorized adoption enumerated herein shall be used only for the purpose set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. / / / / / / / / / / / / Item 28 Attachment B - Storm Drain and Surface Resolution and Amending Utility Rate Schedule D-1 Item 28: Staff Report Pg. 13 Packet Pg. 357 of 911 // SECTION 4. The Council finds that the adoption of this resolution changing the Storm Water Management Fee to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15378(b)(4). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Public Works Director of Administrative Service Item 28 Attachment B - Storm Drain and Surface Resolution and Amending Utility Rate Schedule D-1 Item 28: Staff Report Pg. 14 Packet Pg. 358 of 911 GENERAL STORM AND SURFACE WATER DRAINAGE UTILITY RATE SCHEDULE D-1 A. APPLICABILITY: This schedule applies to all Storm and Surface Water Drainage Service, excepting only those users and to the extent that they are constitutionally exempt under the Constitution of the State of California or who are determined to be exempt pursuant to Rule and Regulation 25. B. TERRITORY: Inside the incorporated limits of the city of Palo Alto and land owned or leased by the City. C. RATES: Per Month: Storm Water Management Fee per Equivalent Residential Unit (ERU) .......................... $16.76 D. SPECIAL NOTES: 1. An Equivalent Residential Unit (ERU) is the basic unit for computation of storm drainage fees for residential and non-residential Customers. All single-family residential properties shall be billed the number of ERUs specified in the following table, based on an analysis of the relationship between impervious area and lot size for Palo Alto properties. RESIDENTIAL RATES (Single-Family Residential Properties PARCEL SIZE (sq.ft.) ERU All other properties will have ERUs computed to the nearest 1/10 ERU using the following formula: No. of ERU = Impervious Area (Sq. Ft.) 2,500 Sq. Ft. 2. For more details on the Storm Water Management Fee, refer to Utilities Rule and Regulation 25. {End} CITY OF PALO ALTO UTILITIES Issued by the City Council Effective 7-1-2023 Supersedes Sheet No.D-1-1 dated 7-1-2022 Sheet No. D-1-1 Item 28 Attachment B - Storm Drain and Surface Resolution and Amending Utility Rate Schedule D-1 Item 28: Staff Report Pg. 15 Packet Pg. 359 of 911 Attachment A 027021423 * NOT YET APPROVED * Resolution No. Resolution of the Council of the City of Palo Alto Approving the FY 2024 Wastewater Collection Utility Financial Plan, Including Reserve Transfers, and Adjusting Wastewater Rates by Amending Rate Schedules S-1 (Residential Wastewater Collection and Disposal), S-2 (Commercial Wastewater Collection and Disposal), S-6 (Restaurant Wastewater Collection and Disposal) and S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger) R E C I T A L S A. Each year the City of Palo Alto (“City”) assesses the financial position of its utilities with the goal of ensuring adequate revenue to fund operations. This includes making long-term projections of market conditions, the physical condition of the system, and other factors that could affect utility costs, and setting rates adequate to recover these costs. The City does this with the goal of providing safe, reliable, and sustainable utility services at competitive rates. The City adopts Financial Plans to summarize these projections. B. The City uses reserves to protect against contingencies and to manage other aspects of its operations, and regularly assesses the adequacy of these reserves and the management practices governing their operation. The status of utility reserves and their management practices are included in Reserves Management Practices attached to and made a part of the Financial Plans. C. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges. D. On , 2023, the City Council held a full and fair public hearing regarding the proposed rate increase and considered all protests against the proposals. E. As required by Article XIII D, Section 6 of the California Constitution and applicable law, notice of the , 2023 public hearing was mailed to all City of Palo Alto Utilities wastewater customers by , 2023. F. The City Clerk has tabulated the total number of written protests presented by the close of the public hearing, and determined that it was less than fifty percent (50%) of the total number of customers and property owners subject to the proposed wastewater rate amendments, therefore a majority protest does not exist against the proposal. The Council of the City of Palo Alto does hereby RESOLVE as follows: SECTION 1. The Council hereby adopts the FY 2024 Wastewater Collection Utility Financial Plan. Item 28 Attachment C - Wastewater FY24 Resolution Item 28: Staff Report Pg. 16 Packet Pg. 360 of 911 Attachment A 027021423 * NOT YET APPROVED * SECTION 2. The Council hereby approves the following transfers as described in the FY 2024 Wastewater Collection Utility Financial Plan: a. Up to $3,178,000 in FY 2023 from the Capital Improvement Projects Reserve to the Operations Reserve. b. Up to $342,000 in FY 2023 from the Rate Stabilization Reserve to the Operations Reserve. SECTION 3. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule S-1 (Residential Wastewater Collection and Disposal) is hereby amended to read as attached and incorporated. Utility Rate Schedule S-1, as amended, shall become effective July 1, 2023. SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule S-2 (Commercial Wastewater Collection and Disposal) is hereby amended to read as attached and incorporated. Utility Rate Schedule S-2, as amended, shall become effective July 1, 2023. SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule S-6 (Restaurant Wastewater Collection and Disposal) is hereby amended to read as attached and incorporated. Utility Rate Schedule S-6, as amended, shall become effective July 1, 2023. SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule S-7 (Commercial Wastewater Collection and Disposal – Industrial Discharger) is hereby amended to read as attached and incorporated. Utility Rate Schedule S-7, as amended, shall become effective July 1, 2023. SECTION 7. The Council finds that the revenue derived from the wastewater rates approved by this resolution do not exceed the funds required to provide wastewater service, and the revenue derived from the adoption of this resolution shall be used only for the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. SECTION 8. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product. // // // // Item 28 Attachment C - Wastewater FY24 Resolution Item 28: Staff Report Pg. 17 Packet Pg. 361 of 911 Attachment A 027021423 * NOT YET APPROVED * // SECTION 9. The Council finds that the adoption of this resolution approving the FY 2024 Wastewater Financial Plan and Reserve transfers does not meet the California Environmental Quality Act’s definition of a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment, and therefore, no environmental review is required. The Council finds that the adoption of this resolution changing Wastewater collection rates to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Utilities Director of Administrative Services Item 28 Attachment C - Wastewater FY24 Resolution Item 28: Staff Report Pg. 18 Packet Pg. 362 of 911 Attachment A 027021423 * NOT YET APPROVED * Resolution No. Resolution of the Council of the City of Palo Alto Approving the FY 2024 Water Utility Financial Plan and Reserve Transfers, and Increasing Water Rates by Amending Rate Schedules W-1 (General Residential Water Service), W-2 (Water Service from Fire Hydrants), W-3 (Fire Service Connections), W-4 (Residential Master-Metered and General Non- Residential Water Service), and W-7 (Non-Residential Irrigation Water Service) R E C I T A L S A. Each year the City of Palo Alto (“City”) assesses the financial position of its utilities with the goal of ensuring adequate revenue to fund operations. This includes making long-term projections of market conditions, the physical condition of the system, and other factors that could affect utility costs, and setting rates adequate to recover these costs. The City does this with the goal of providing safe, reliable, and sustainable utility services at competitive rates. The City adopts Financial Plans to summarize these projections. B. The City uses reserves to protect against contingencies and to manage other aspects of its operations, and regularly assesses the adequacy of these reserves and the management practices governing their operation. The status of utility reserves and their management practices are included in Reserves Management Practices attached to and made part of the Financial Plans. C. Pursuant to Chapter 12.20.010 of the Palo Alto Municipal Code, the Council of the City of Palo Alto may by resolution adopt rules and regulations governing utility services, fees and charges. D. On , 2023, the City Council held a full and fair public hearing regarding the proposed rate increase and considered all protests against the proposals. E. As required by Article XIII D, Section 6 of the California Constitution and applicable law, notice of the , 2023 public hearing was mailed to all City of Palo Alto Utilities water customers by , 2023. F. The City Clerk has tabulated the total number of written protests presented by the close of the public hearing, and determined that it was less than fifty percent (50%) of the total number of customers and property owners subject to the proposed water rate amendments, therefore a majority protest does not exist against the proposal. The Council of the City of Palo Alto does hereby RESOLVE, as follows: Item 28 Attachment D - Water FY24 Resolution Item 28: Staff Report Pg. 19 Packet Pg. 363 of 911 Attachment A 027021423 SECTION 1. The Council hereby adopts the FY 2024 Water Utility Financial Plan. SECTION 2. The Council hereby approves a transfer from the Capital Improvement Program Reserve to the Operations Reserve of up to $3,746,000 in FY 2023 as described in the FY 2024 Water Utility Financial Plan. SECTION 3. The Council hereby approves a transfer from the Rate Stabilization Reserve to the Operations Reserve of up to $3,000,000 in FY 2023 as described in the FY 2024 Water Utility Financial Plan. SECTION 4. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-1 (General Residential Water Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-1, as amended, shall become effective July 1, 2023. SECTION 5. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-2 (Water Service from Fire Hydrants) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-2, as amended, shall become effective July 1, 2023. SECTION 6. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-3 (Fire Service Connections) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-3, as amended, shall become effective July 1, 2023. SECTION 7. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-4 (Residential Master-Metered and General Non-Residential Water Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-4, as amended, shall become effective July 1, 2023. SECTION 8. Pursuant to Section 12.20.010 of the Palo Alto Municipal Code, Utility Rate Schedule W-7 (Non-Residential Irrigation Water Service) is hereby amended to read as attached and incorporated. Utility Rate Schedule W-7, as amended, shall become effective July 1, 2023. SECTION 9. The City Council finds as follows: a. Revenues derived from the water rates approved by this resolution do not exceed the funds required to provide water service. b. Revenues derived from the water rates approved by this resolution shall not be used for any purpose other than providing water service, and the purposes set forth in Article VII, Section 2, of the Charter of the City of Palo Alto. c. The amount of the water rates imposed upon any parcel or person as an incident of Item 28 Attachment D - Water FY24 Resolution Item 28: Staff Report Pg. 20 Packet Pg. 364 of 911 Attachment A 027021423 property ownership shall not exceed the proportional cost of the water service attributable to the parcel. SECTION 10. The Council finds that the fees and charges adopted by this resolution are charges imposed for a specific government service or product provided directly to the payor that are not provided to those not charged, and do not exceed the reasonable costs to the City of providing the service or product. // // // // // // // // // // // // // // // // // // // Item 28 Attachment D - Water FY24 Resolution Item 28: Staff Report Pg. 21 Packet Pg. 365 of 911 Attachment A 027021423 // SECTION 11. The Council finds that the adoption of this resolution approving the FY 2024 Water Financial Plan and Reserve transfers does not meet the California Environmental Quality Act’s (CEQA) definition of a project under Public Resources Code Section 21065 and CEQA Guidelines Section 15378(b)(5), because it is an administrative governmental activity which will not cause a direct or indirect physical change in the environment, and therefore, no environmental review is required. The Council finds that the adoption of this resolution changing water rates to meet operating expenses, purchase supplies and materials, meet financial reserve needs and obtain funds for capital improvements necessary to maintain service is not subject to the California Environmental Quality Act (CEQA), pursuant to California Public Resources Code Sec. 21080(b)(8) and Title 14 of the California Code of Regulations Sec. 15273(a). After reviewing the staff report and all attachments presented to Council, the Council incorporates these documents herein and finds that sufficient evidence has been presented setting forth with specificity the basis for this claim of CEQA exemption. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Assistant City Attorney City Manager Director of Utilities Director of Administrative Services Item 28 Attachment D - Water FY24 Resolution Item 28: Staff Report Pg. 22 Packet Pg. 366 of 911 DARK FIBER LICENSING SERVICES UTILITY RATE SCHEDULE EDF-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EDF-1-1 Effective 07-01-20232 dated 7-01-20221 Sheet No. EDF-1-1 A. APPLICABILITY: This Rrate Sschedule applies to Ccustomer Aaccounts established prior to September 18, 2006, unless the Ccustomer elects to apply the EDF-3 rate to the entire Ccustomer Aaccount. This Rrate Schedule applies to Fiber Optic services Service from the City of Palo Alto Utilities (CPAU) pertaining to the City's network Dark Fiber Infrastructure and Fiber Optic (Backbone. and associated connections). B. TERRITORY: All territory wWithin the incorporated limits of the City of Palo Alto and land owned or leased by the City. C. FEES: 1. DARK FIBER BACKBONE LICENSE FEES: The values or ranges for each of these price components are shown below: (1) Fiber Price………………………………………………………………. $432.32453.50/FMfiber mile/month (2) Quantity discount ……………………………………………………… $0 to $59.84/fiber mileFM/month (3) Buffer tube discount……………………………………………………….. $0 to $59.84/fiber mileFM/month (4) Route length discount…………………………………………………….. $0 to $77.80/fiber mileFM/month (5) Ring topology discount………………………………………………………$0 to $23.94/fiber mileFM/month (6) Length of term discount…………………………………………………… $0 to $46.80/fiber mileFM/month Minimum Backbone License Fee $685.90653.86/month Project Minimum Backbone License Fees apply to any project proposal signed after September 18, 2006 in which the project connects with the Fiber Optic Backbone. Description for Discounts: Quantity discount: based on an array of discounts for quantities of fiber licensed on a specific path. Buffer tube discount: discount for numbers of full buffer tubes licensed on a specific path. Route length discount: based on the route length licensed on a specific project. Ring topology discount: The ring topology discount for customers Customers contracting for complete rings. Term discount: based on an array of discounts for contracts Dark Optical Fiber Backbone License Agreement greater than one and less than ten years. 2. DARK FIBER LATERAL CONNECTION FEES: Item 28 Attachment E - Dark Fiber Rate Schedules Item 28: Staff Report Pg. 23 Packet Pg. 367 of 911 DARK FIBER LICENSING SERVICES UTILITY RATE SCHEDULE EDF-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EDF-1-2 Effective 07-01-20232 dated 7-01-20221 Sheet No. EDF-1-2 Customer responsibilities and fees for drop and custom cable construction are described in the CPAU Rules and Regulations, Rate Schedule EDF-2, project proposals and other associated documents. In all cases, the Licensee shall pay an annual Drop/Custom Cable Management Fee based on the follow per foot fees: (1) Drop Cable Management Fees (for the first 12-Fibers) …………………………… $0.03- $0.098/ft/month (2) Custom Cable Management Fees (for the first 12-Fibers) …………………… .......... $0.442/ft/month (3) Fees for additional Drop or Custom Cable fibers (each additional set of 12-Fibers) . $0.098/ft/month Minimum Drop or Custom Cable Management Fees .................................................. $338.91323.08/month Minimum Drop Cable Management Fees apply to any project proposal signed after September 18, 2006. Item 28 Attachment E - Dark Fiber Rate Schedules Item 28: Staff Report Pg. 24 Packet Pg. 368 of 911 DARK FIBER LICENSING SERVICES UTILITY RATE SCHEDULE EDF-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EDF-1-3 Effective 07-01-20232 dated 7-01-20221 Sheet No. EDF-1-3 3. EARLY TERMINATION FEES: If the Licensee chooses to terminate for convenience the Dark Fiber Licensinge Agreement (License Agreement) or the term of any project under the License Agreement, then the Licensee shall pay the applicable termination payment as specified in this schedule or in the License Agreement, as provided below. Unless otherwise provided in the License Agreement, the Licensee shall pay a termination fee in one of the following amounts, whichever is less: • Annual fee of the contract year that the Licensee chooses to terminates in full without term discounts, or • Remaining fees of the project term as indicated in the License Agreement. D. SPECIAL NOTES: 1. All fees must be paid to the City in accordance with the terms of the Dark Fiber Licensinge Agreement, the cCustomer’s project proposals and all the applicable Utilities Rates, Rules, and Regulations. 2. All fees and minimum charges are subject to Consumer Price Index (CPI) adjustments, to be applied annually, except as defined by Section D.3 of this Rate Schedule. Discounts will not be modified by changes to CPI. 3. The CPI adjustment will be based on the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco-Oakland-San JoseHayward MSA, published by the U.S. Department of Labor, Bureau of Labor Statistics. The adjustment is calculated by dividing the most recent calendar year’s December CPI by the December CPI in the year rates last changed. In the event that the change between December CPI’s indicates an adjustment of less than 1% is required, a change to rate schedulechanges may not be made for the upcoming year. Future rate changes will take the last year of change as the new base year for purposes of calculation. {End} Item 28 Attachment E - Dark Fiber Rate Schedules Item 28: Staff Report Pg. 25 Packet Pg. 369 of 911 DARK FIBER SERVICE CONNECTION FEES UTILITY RATE SCHEDULE EDF-2 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EDF-2-1 Effective 7-01-20232 dated 7-01-20221 Sheet No. EDF-2-1 A. APPLICABILITY: This Rate Sschedule applies to all connections, expansions, and upgrades to the City's Dark Fiber Infrastructure and network (Fiber Optic Backbone). B. TERRITORY: All territory within the incorporated limits of the City of Palo Alto and land owned or leased by the City. C. FEES: 1. ADVANCE ENGINEERING FEES: Advance engineering (AER) fees must be paid to start the engineering process and are non-refundable. The fees will be credited against the estimated project cost prior to the collection of the project construction fees. (1) Commercial/Industrial AER minimum fee ..................................................................... $108332.00 (2) Special conditions (requiring expert assessment) ........................................................... By Estimate 2. ESTIMATED SERVICE CONNECTION AND RECONFIGURATION FEES All estimated Sservice connection and reconfiguration fees must be paid prior to the scheduling of any construction or reconnections to the City's Dark Fiber Infrastructure and Fiber Optic Backbonenetwork. (1) Service connection (Interconnection) fee ...................................................... By Estimate (2) Reconfiguration Fees ..................................................................................... By Estimate Labor rates are subject to change as stated in the Utility Rate Schedule C-1. D. NOTES: 1. The Customer is responsible for the installation and maintenance of all ducts and pathways from the facility to the property line in compliance with City of Palo Alto Utilities Rules and Regulations and contract agreements. 2. The City shall not be held liable for delays or interruptions in service, but will make reasonable efforts to provide timely continuous Sservice. 3. All fees are subject to Consumer Price Index (CPI) adjustments, to be applied annually. The CPI adjustment will be based on the Consumer Price Index for All Urban Consumers (CPI-U) for the San Francisco-Oakland- San JoseHayward MSA, published by the U.S. Department of Labor, Bureau of Labor Statistics. The adjustment is calculated by dividing the most recent calendar year’s December CPI by the December CPI in the year rates last changed. In the event that the change between December CPI’s indicates an adjustment of less than 1% is required, a rate change to rate schedules may not be made for the upcoming year. Future rate changes will take the last year of change as the new base year for purposes of calculation. 3. {End} Item 28 Attachment E - Dark Fiber Rate Schedules Item 28: Staff Report Pg. 26 Packet Pg. 370 of 911 DARK FIBER LICENSING SERVICES UTILITY RATE SCHEDULE EDF-3 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EDF-3-1 Effective 9-18-20067-1-2023 dated 9-18-2006 Sheet No.EDF-3-1 A. APPLICABILITY: This Rrate Sschedule applies to all Ccustomer Aaccounts created after September 18, 2006 and also may be elected at any time by Ccustomers with Dark Optical Fiber Backbone Licenseing Agreements in effect existing prior to that dateSeptember 18, 2006. This Rrate Sschedule applies to Fiber Optic Sservices from the City of Palo Alto Utilities (CPAU) pertaining to the City's Dark Fiber Infrastructure and Fiber Optic network (Backbone and associated connections). B. TERRITORY: All territory wWithin the incorporated limits of the City of Palo Alto and land owned or leased by the City. C. FEES: 1. DARK FIBER BACKBONE LICENSE FEES: The values or ranges for each of these price components are shown below: (1) Price for first fiber on public agency project routes may range between……… $213-$362/fiber mile/month a. Additional fibers used in the project on same route, per each .............. $142.00/fiber mile/month (2) Price for first fiber on non-public agency project routes may range between… . $250-$425/fiber mile/month a. Additional fibers used in the project on same route, per each .............. $166.67/fiber mile/month 2. DROP AND CUSTOM CABLE MANAGEMENT FEES: Customer responsibilities and fees for drop and custom cable construction are described in the CPAU Rules and Regulations, Rate Schedule EDF-2, project proposals and other associated documents. In all cases, the Licensee shall also pay the applicable Drop or Custom Cable Management Fees based on the following: (1) Drop Cable Management Fees for public agencies (per 12 fiber drop)………… $179-$213/fiber mile/month (2) Drop Cable Management Fees for non-public agencies (per 12 fiber drop)…… $210-$250/fiber mile/month (3) Custom Cable Management Fees (first 12 fiber cable on a project route) .................. $0.25/ft/month (4) Custom Cable Management Fees (per additional 12 fiber cable on a project route)…….. $0.05/ft/month D. SPECIAL NOTES: 1. All fees must be paid to the City according to the terms of specifics in the Dark Optical Fiber Backbone License Agreement, the Ccustomer’s project proposals and all the applicable Utilities Rates, Rules, and Regulations. Item 28 Attachment E - Dark Fiber Rate Schedules Item 28: Staff Report Pg. 27 Packet Pg. 371 of 911 DARK FIBER LICENSING SERVICES UTILITY RATE SCHEDULE EDF-3 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No EDF-3-2 Effective 9-18-20067-1-2023 dated 9-18-2006 Sheet No.EDF-3-2 2. All fees are subject to change by the City of Palo Alto Council. {End} Item 28 Attachment E - Dark Fiber Rate Schedules Item 28: Staff Report Pg. 28 Packet Pg. 372 of 911 RESIDENTIAL WASTEWATER COLLECTION AND DISPOSAL UTILITY RATE SCHEDULE S-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No S-1-1 Effective 7-1-20232 dated 79-1-20221 Sheet No S-1-1 A. APPLICABILITY: This schedule applies to each Occupied Domestic Dwelling unit. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides Wastewater Service. C. RATES: Per Month Each Occupied Domestic Dwelling unit ................................................................................ $44.6248.64 D. SPECIAL NOTES: 1. Any dwelling unit being individually served by a Water, Gas, or Electric Meter will be considered continuously occupied. 2. For two or more Occupied Domestic Dwelling units served by one Water Meter, the monthly Wastewater charge will be calculated by multiplying the current Wastewater rate by the number of dwelling units. 3. Each developed separate lot shall have a separate service lateral to a sanitary main or manhole. {End} Item 28 Attachment F - Wastewater Rate Schedules Item 28: Staff Report Pg. 29 Packet Pg. 373 of 911 COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL UTILITY RATE SCHEDULE S-2 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No S-2-1 Effective 7-1-20232 dated 79-1-20221 Sheet No S-2-1 A. APPLICABILITY: This schedule applies to all commercial establishments other than those served under Utility Rate Schedule S-1 (Residential Wastewater Collection and Disposal), Rate Schedule S-6 (Restaurant Wastewater Collection and Disposal) or Rate Schedule S-7 (Commercial Establishments Wastewater Disposal – Industrial Discharger). B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides Wastewater Service. C. RATES: Quantity Rate, per 100 cubic feet (See Section D.1) .......................................................... $9.088.33 D. SPECIAL NOTES: 1. The monthly charge for the quantity rate set forth in Section C of this rate schedule will be based upon the average Water usage for the months of January, February and March, and applied in the following July. If a Water Meter is identified as exclusively serving irrigation landscaping, such Meter will be exempted from Wastewater charge calculations. Customers without an applicable usage history will be rebuttably presumed to have usage of 4.8 ccf per month until such time as such usage may reasonably be established by the City of Palo Alto Utilities Department. 2. The City of Palo Alto Utilities Department may require Wastewater Metering facilities, in which case Service will be governed by terms of a special agreement between the City and the Customer. {End} Item 28 Attachment F - Wastewater Rate Schedules Item 28: Staff Report Pg. 30 Packet Pg. 374 of 911 RESTAURANT WASTEWATER COLLECTION AND DISPOSAL UTILITY RATE SCHEDULE S-6 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No S-6-1 Effective 7-1-20232 dated 79-1-20221 Sheet No S-6-1 A. APPLICABILITY: This schedule applies to all restaurants. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides Wastewater Service. C. RATES: Quantity Rates, per 100 cubic feet of monthly metered Water usage ...................................$ 13.5512.43 D. SPECIAL NOTES: 1. The City of Palo Alto Utilities Department may require Wastewater Metering facilities, in which case Service will be governed by terms of a special agreement between the City and the Customer. {End} Item 28 Attachment F - Wastewater Rate Schedules Item 28: Staff Report Pg. 31 Packet Pg. 375 of 911 COMMERCIAL WASTEWATER COLLECTION AND DISPOSAL – INDUSTRIAL DISCHARGER UTILITY RATE SCHEDULE S-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No S-7-1 Effective 7-1-20232 dated 79-1-20221 Sheet No S-7-1 A. APPLICABILITY: This schedule applies to any establishment requiring sampling of industrial discharges in excess of 25,000 gallons per day, or special discharge monitoring, as defined in Rule 23, Section C. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides Wastewater Service. C. RATES: 1. Collection System Operation, Maintenance, and Infiltration Inflow: $ 4.144.51 per 100 cubic feet of metered water use. 2. Advanced Waste Treatment Operations and Maintenance Charge: $ 1.651.80 per 100 cubic feet of metered water use 3. $220.43202.23 per 1000 pounds (lbs) of COD (Chemical Oxygen Demand) 4. $ 531.46 487.58 per 1000 lbs of SS (Suspended Solids) 5. $ 3,672.26 3,369.05 per 1000 lbs of NH 3 (Ammonia) 6. $ 16,111.5614,781.25 per 1000 lbs of toxics (chromium, copper, cyanide, lead, nickel, silver, and zinc) D. SPECIAL NOTES: 1. Water usage will be determined as defined in Rule 23, Section C. If a Water Meter is identified as exclusively serving irrigation landscaping, such Meter will be exempted from Wastewater charge calculations. 2. The City of Palo Alto Utilities Department may require Wastewater Metering facilities, in which case Service will be governed by terms of a special agreement between the City of Palo Alto and the Customer. 3. Charges for large discharges will be determined on the basis of sampling as outlined in Utilities Rule 23, Section C. However, for purposes of arriving at an accurate flow estimate, discharge Meters, if installed, can be utilized to measure outflow for billing purposes. Annual charges will be determined and allocated monthly for billing purposes. {End} Item 28 Attachment F - Wastewater Rate Schedules Item 28: Staff Report Pg. 32 Packet Pg. 376 of 911 GENERAL RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-1-1 Effective 7-1-20232 dated 7-1-202219 Sheet No W-1-1 A. APPLICABILITY: This schedule applies to separately metered single-family residential dwellings receiving Water Service from the City of Palo Alto Utilities. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides Water Service. C. RATES: Per Meter Monthly Service Charge: Per Month For meters 5/8-inch to 1 inch .................................................................................... $ 21.4806 For 1 1/2 inch meter .................................................................................................. 69.388.02 For 2-inch meter ........................................................................................................ 107.325.22 For 3-inch meter ........................................................................................................ 227.483.02 For 4-inch meter ........................................................................................................ 404.56396.63 For 6-inch meter ........................................................................................................ 828.2712.03 For 8-inch meter ........................................................................................................1,523.92494.04 For 10-inch meter ......................................................................................................2,409.29362.05 For 12-inch meter ....................................................................................................... 3,168.1906.07 Per Hundred Cubic Feet Volumetric Rates: (To be added to Service Charge, applicable to all pressure zones.) Per Month Commodity Rate: Water Delivery Charge from SFPUC (through July 31, 2022) .................................. $4.10 Water Delivery Charge from SFPUC (effective August 1, 2022) .............................. $ 5.214.75 Distribution Rate: Tier 1 usage ........................................................................................................................$ 2.7267 Tier 2 usage (All usage over 100% of Tier 1) ....................................................................... 6.3321 Item 28 Attachment G - Water Rate Schedules Item 28: Staff Report Pg. 33 Packet Pg. 377 of 911 GENERAL RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-1-2 Effective 7-1-20232 dated 7-1-202219 Sheet No W-1-2 Drought Surcharges (deactivated): A drought surcharge will be added to the Customer’s applicable commodity rate for Tier 1 and Tier 2 Water usage when the City Council has determined that a Water reduction level is in effect for the City as described in Section D.4. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf). Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Tier 1 0.20 0.43 0.64 Tier 2 0.58 1.21 1.85 Temporary Service – Developers Temporary unmetered service to residential subdivision developers, per connection ........................................................................ $ 6.00 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Commodity Rate The Commodity Charge is based on the water delivery rate per the San Francisco Public Utility Commission (SFPUC) Water Rate Schedule W-25: Wholesale Use with Long-Term Contract. The Commodity Charge will be passed through automatically via periodic rate adjustments to account for increases in wholesale water charges, as well as inflation. The pass-through period will be effective for fiscal years 2020 through 2024, inclusive. Customers will be provided notice of any adjustments via their billing statements or by any other mailing by CPAU to the customer’s regular billing address. Item 28 Attachment G - Water Rate Schedules Item 28: Staff Report Pg. 34 Packet Pg. 378 of 911 GENERAL RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-1 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-1-3 Effective 7-1-20232 dated 7-1-202219 Sheet No W-1-3 3. Calculation of Usage Tiers Tier 1 Water usage shall be calculated and billed based upon a level of 0.2 ccf per day rounded to the nearest whole ccf, based on Meter reading days of Service. As an example, for a 30-day bill, the Tier 1 level would be 0 through 6 ccf. For further discussion of bill calculation and proration, refer to Rule and Regulation 11. 4. Drought Surcharge During period of Water shortage or restrictions on local Water use, the City Council may, by resolution, declare the need for citywide Water conservation at the 10/15%, 20% or 25% level. While such a resolution is in effect, a drought surcharge will apply. The purpose of the drought surcharge is to recover revenues lost as a result of reduced consumption. {End} Item 28 Attachment G - Water Rate Schedules Item 28: Staff Report Pg. 35 Packet Pg. 379 of 911 WATER SERVICE FROM FIRE HYDRANTS UTILITY RATE SCHEDULE W-2 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-2-1 Effective 7-1-20232 dated 7-1-202219 Sheet No W-2-1 A. APPLICABILITY: This schedule applies to all Water taken from fire hydrants for construction, maintenance, and other uses in conformance with provisions of a Hydrant Meter Permit. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides Water Service. C. RATES: 1. Monthly Service Charge. METER SIZE 5/8 inch ........................................................................................................................... $ 50.00 3 inch ........................................................................................................................... 125.00 2. Volumetric Rate: (per hundred cubic feet) Commodity Rate: Water Delivery Charge from SFPUC (through July 31, 2022) ......................... $ 5.24.101 Water Delivery Charge from SFPUC (effective August 1, 2022) ..................... $4.75 Distribution Rate: .................................................................................................................$ 3.8376 4. Drought Surcharges (deactivated): A drought surcharge will be added to the Customer’s applicable Commodity rate when the City Council has determined that a Water reduction level is in effect for the City as described in Section D.6. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf). Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Surcharge 0.26 0.53 0.77 Item 28 Attachment G - Water Rate Schedules Item 28: Staff Report Pg. 36 Packet Pg. 380 of 911 WATER SERVICE FROM FIRE HYDRANTS UTILITY RATE SCHEDULE W-2 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-2-2 Effective 7-1-20232 dated 7-1-202219 Sheet No W-2-2 D. SPECIAL NOTES: 1. Monthly charges shall include the applicable monthly Service Charge in addition to usage billed at the commodity rate. 2. The Commodity Charge is based on the water delivery rate per the San Francisco Public Utility Commission (SFPUC) Water Rate Schedule W-25: Wholesale Use with Long-Term Contract. The Commodity Charge will be passed through automatically via periodic rate adjustments to account for increases in wholesale water charges, as well as inflation. The pass-through period will be effective for fiscal years 2020 through 2024, inclusive. Customers will be provided notice of any adjustments via their billing statements or by any other mailing by CPAU to the customer’s regular billing address. 3. Any person or company using a hydrant without first obtaining a valid Hydrant Meter Permit shall pay a fee of $50.00 for each day of such use in addition to all other costs and fees provided in this schedule. A hydrant permit may be denied or revoked for failure to pay such fee. 4. A Meter deposit of $750.00 may be charged any applicant for a Hydrant Meter Permit as a prerequisite to the issuance of a permit and Meter(s). A charge of $50.00 per day will be added for delinquent return of hydrant Meters. A fee will be charged for any Meter returned with missing or damaged parts. 5. Any person or company using a fire hydrant improperly or without a permit, or who draws Water from a hydrant without a Meter installed and properly recording usage shall, in addition to all other applicable charges be subject to criminal prosecution pursuant to the Palo Alto Municipal Code. 6. During period of Water shortage or restrictions on local Water use, the City Council may, by resolution, declare the need for citywide Water conservation at the 10/15%, 20% or 25% level. While such a resolution is in effect, a drought surcharge will apply. The purpose of the drought surcharge is to recover revenues lost as a result of reduced consumption. {End} Item 28 Attachment G - Water Rate Schedules Item 28: Staff Report Pg. 37 Packet Pg. 381 of 911 FIRE SERVICE CONNECTIONS UTILITY RATE SCHEDULE W-3 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-3-1 Effective 7-1-202322 dated 7-1-202219 Sheet No W-3-1 A. APPLICABILITY: This schedule applies to all public fire hydrants and private fire Service connections. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides Water Service. C. RATES: 1. Monthly Service Charges Public Fire Hydrant .................................................................................................... $ 5.00 Private Fire Service: 2-inch connection .......................................................................................................$ 4.42 4.34 4-inch connection .......................................................................................................27.38 26.85 6-inch connection ....................................................................................................... 79.51 77.96 8-inch connection .......................................................................................................169.45 166.13 10-inch connection .....................................................................................................304.74 298.77 12-inch connection .....................................................................................................492.24 482.59 2. Commodity (To be added to Service Charge unless Water is used for fire extinguishing or testing purposes.) Per Hundred Cubic Feet All water usage ..........................................................................................................$ 10.00 D. SPECIAL NOTES: 1. Service under this schedule may be discontinued if Water is used for any purpose other than fire extinguishing or testing and repairing the fire extinguishing facilities. Using hydrants and fire Services for other purposes is illegal and will be subject to the commodity charge as noted above, fines, and criminal prosecution pursuant to the Palo Alto Municipal Code. 2. For a combination Water and fire Service, the Water Service schedule shall apply. Item 28 Attachment G - Water Rate Schedules Item 28: Staff Report Pg. 38 Packet Pg. 382 of 911 FIRE SERVICE CONNECTIONS UTILITY RATE SCHEDULE W-3 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-3-2 Effective 7-1-202322 dated 7-1-202219 Sheet No W-3-2 3. Utilities Rule and Regulation No. 21 provides additional information on Automatic Fire Services. 4. Repairs and testing of fire extinguishing facilities are not considered unauthorized use of Water if records and documentation are supplied by the Customer. {End} Item 28 Attachment G - Water Rate Schedules Item 28: Staff Report Pg. 39 Packet Pg. 383 of 911 RESIDENTIAL MASTER-METERED AND GENERAL NON-RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-4-1 Effective 7-1-20232 dated 7-1-202219 Sheet No W-4-1 A. APPLICABILITY: This schedule applies to Water Services to non-residential buildings, and multi-family residential dwellings served through a Master-Meter. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides Water Service. C. RATES: Per Meter Monthly Service Charge Per Month For 5/8-inch meter .................................................................................... $ 18.78 18.42 For 3/4-inch meter .................................................................................... 25.11 24.62 For 1-inch meter .................................................................................... 37.76 37.02 For 1 ½-inch meter .................................................................................... 69.38 68.02 For 2-inch meter .................................................................................... 107.32 105.22 For 3-inch meter .................................................................................... 227.48 223.02 For 4-inch meter .................................................................................... 404.56 396.63 For 6-inch meter .................................................................................... 828.27 812.03 For 8-inch meter ....................................................................................1,523.92 1,494.04 For 10-inch meter ....................................................................................2,409.29 2,362.05 For 12-inch meter ....................................................................................3,168.19 3,106.07 Per Hundred Cubic Feet Volumetric Rates: (to be added to Service Charge, applicable to all pressure zones) Per Month Commodity Rate: Water Delivery Charge from SFPUC (through July 31, 2022) ............... $ 5.214.10 Water Delivery Charge from SFPUC (effective August 1, 2022) ........... 4.75 Distribution Rate: ........................................................................................... 3.8376 Item 28 Attachment G - Water Rate Schedules Item 28: Staff Report Pg. 40 Packet Pg. 384 of 911 RESIDENTIAL MASTER-METERED AND GENERAL NON-RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-4-2 Effective 7-1-20232 dated 7-1-202219 Sheet No W-4-2 Drought Surcharges (deactivated): A drought surcharge will be added to the Customer’s applicable commodity rate when the City Council has determined that a Water reduction level is in effect for the City as described in Section D.3. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf). Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Surcharge 0.26 0.53 0.77 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Commodity Rate The Commodity Charge is based on the water delivery rate per the San Francisco Public Utility Commission (SFPUC) Water Rate Schedule W-25: Wholesale Use with Long-Term Contract. The Commodity Charge will be passed through automatically via periodic rate adjustments to account for increases in wholesale water charges, as well as inflation. The pass-through period will be effective for fiscal years 2020 through 2024, inclusive. Customers will be provided notice of any adjustments via their billing statements or by any other mailing by CPAU to the customer’s regular billing address. 3. Drought Surcharge During period of Water shortage or restrictions on local Water use, the City Council may, by resolution, declare the need for citywide Water conservation at the 10/15%, 20% or 25% level. While such a resolution is in effect, a drought surcharge will apply. The purpose of the drought surcharge is to recover revenues lost as a result of reduced consumption. Item 28 Attachment G - Water Rate Schedules Item 28: Staff Report Pg. 41 Packet Pg. 385 of 911 RESIDENTIAL MASTER-METERED AND GENERAL NON-RESIDENTIAL WATER SERVICE UTILITY RATE SCHEDULE W-4 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-4-3 Effective 7-1-20232 dated 7-1-202219 Sheet No W-4-3 {End} Item 28 Attachment G - Water Rate Schedules Item 28: Staff Report Pg. 42 Packet Pg. 386 of 911 NON-RESIDENTIAL IRRIGATION WATER SERVICE UTILITY RATE SCHEDULE W-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-7-1 Effective 7-1-20232 dated 7-1-202219 Sheet No W-7-1 A. APPLICABILITY: This schedule applies to non-residential Water Service supplying dedicated irrigation Meters. B. TERRITORY: This schedule applies everywhere the City of Palo Alto provides Water Services. C. RATES: Per Meter Monthly Service Charge Per Month For 5/8-inch meter .................................................................................... $ 18.78 18.42 For 3/4-inch meter .................................................................................... 25.11 24.62 For 1-inch meter .................................................................................... 37.76 37.02 For 1 1/2 inch meter .................................................................................... 69.38 68.02 For 2-inch meter .................................................................................... 107.32 105.22 For 3-inch meter .................................................................................... 227.48 223.02 For 4-inch meter .................................................................................... 404.56 396.63 For 6-inch meter .................................................................................... 828.27 812.03 For 8-inch meter ....................................................................................1,523.92 1,494.04 For 10-inch meter ....................................................................................2,409.29 2,362.05 For 12-inch meter ....................................................................................3,168.19 3,106.07 Per Hundred Cubic Feet Volumetric Rates: (to be added to Service Charge, applicable to all pressure zones) Per Month Commodity Rate: Water Delivery Charge from SFPUC (through July 31, 2022) ..................... $ 5.214.10 Water Delivery Charge from SFPUC (effective August 1, 2022) ................. 4.75 Distribution Rate: ..................................................................................................... 5.8372 Item 28 Attachment G - Water Rate Schedules Item 28: Staff Report Pg. 43 Packet Pg. 387 of 911 NON-RESIDENTIAL IRRIGATION WATER SERVICE UTILITY RATE SCHEDULE W-7 CITY OF PALO ALTO UTILITIES Issued by the City Council Supersedes Sheet No W-7-2 Effective 7-1-20232 dated 7-1-202219 Sheet No W-7-2 Drought Surcharges (deactivated): A drought surcharge will be added to the Customer’s applicable commodity rate when the City Council has determined that a Water reduction level is in effect for the City as described in Section D.3. The drought surcharges in the table below are measured in dollars per hundred cubic feet (ccf). Level 1 (10/15%) Level 2 (20%) Level 3 (25%) Surcharge 0.53 1.25 2.02 D. SPECIAL NOTES: 1. Calculation of Cost Components The actual bill amount is calculated based on the applicable rates in Section C above and adjusted for any applicable discounts, surcharges and/or taxes. On a Customer’s bill statement, the bill amount may be broken down into appropriate components as calculated under Section C. 2. Commodity Rate The Commodity Charge is based on the water delivery rate per the San Francisco Public Utility Commission (SFPUC) Water Rate Schedule W-25: Wholesale Use with Long-Term Contract. The Commodity Charge will be passed through automatically via periodic rate adjustments to account for increases in wholesale water charges, as well as inflation. The pass-through period will be effective for fiscal years 2020 through 2024, inclusive. Customers will be provided notice of any adjustments via their billing statements or by any other mailing by CPAU to the customer’s regular billing address. 3. Drought Surcharge During period of Water shortage or restrictions on local Water use, the City Council may, by resolution, declare the need for citywide Water conservation at the 10/15%, 20% or 25% level. While such a resolution is in effect, a drought surcharge will apply. The purpose of the drought surcharge is to recover revenues lost as a result of reduced consumption. {End} Item 28 Attachment G - Water Rate Schedules Item 28: Staff Report Pg. 44 Packet Pg. 388 of 911 City Council Staff Report Report Type: ACTION ITEMS Lead Department: Administrative Services Meeting Date: June 19, 2023 Report #:2306-1659 TITLE PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project BACKGROUND This report will be a special late packet release on Thursday, June 15, 2023. APPROVED BY: Kiely Nose, Assistant City Manager Item 29 Item 29 Late Packet Report Item 29: Staff Report Pg. 1 Packet Pg. 389 of 911 City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: Administrative Services Meeting Date: June 19, 2023 Report #:2306-1656 TITLE Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 BACKGROUND 1A preliminary Appropriations Limit Notice was posted to the City’s website based on the FY 2024 Proposed Budget. An updated Notice based on the recommended FY 2024 Adopted Budget will be released as part of the late packet memorandum on June 15, 2023. APPROVED BY: Kiely Nose, Assistant City Manager 1 https://www.cityofpaloalto.org/files/assets/public/administrative-services/city-budgets/fy-2024-city-budget/fy- 2024-gann-notice.pdf Item 30 Item 30 Late Packet Report Item 30: Staff Report Pg. 1 Packet Pg. 390 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: June 19, 2023 Staff Report: 2304-1380 TITLE Approval of an Agreement Between Santa Clara Valley Water District and the City of Palo Alto for Administration and Funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure for a Total Not-To-Exceed Amount of $1,575,000 Over a Seven-Year Term Ending June 30, 2030 ( This is not a project and therefore is exempt from California Environmental Quality Act (CEQA)) RECOMMENDATION Staff recommends the Palo Alto City Council: 1) Approve and authorize the City Manager or designee to execute the agreement between Santa Clara Valley Water District (Valley Water) and the City of Palo Alto for administration and funding of Water Conservation and Stormwater Rebate Programs and Advanced Metering Infrastructure (Agreement), comprised of the City contribution of $1,400,000 for water conservation programs and $175,000 for stormwater programs over the seven-year contract term ending June 30, 2030, for a total-not-to-exceed amount of $1,575,000; and 2) Authorize the City Manager or designee to adjust the reimbursement amounts for the Programs, so long as the City’s total contribution does not exceed $1,400,000 for water conservation programs and $175,000 for stormwater programs over the seven-year contract term ending June 30, 2030. EXECUTIVE SUMMARY Staff recommends approval of the proposed Agreement with Valley Water for a new seven- year term allowing Valley Water and the City to administer a variety of water conservation programs including Advanced Metering Infrastructure (AMI) and allow the City to match funding for rebate programs, effectively increasing incentives for Palo Alto residents and businesses to reduce water use. The Rain Barrel Distribution Events, AMI, and the Water Use Reports are administered by the City, and Valley Water will pay up to $1,435,000 to help fund these programs. Item 31 Item 31 Staff Report Item 31: Staff Report Pg. 1 Packet Pg. 391 of 911 To achieve state and local water conservation and efficiency objectives, the City of Palo Alto Utilities (CPAU) partners with Valley Water to offer a suite of conservation programs and services to Palo Alto’s water customers. Valley Water offers the programs in the City’s service area, and the City adds funding to some of the programs. This partnership enables Palo Alto to receive more benefits and cost savings than would be achieved through self- administered water efficiency programs. The new agreement will replace the existing Agreement governing these programs to allow the City to receive funding from Valley Water for AMI. BACKGROUND State requirements and Council policies have resulted in aggressive water reduction goals which are largely achieved through conservation and efficiency programs. Valley Water and Palo Alto use innovative technologies and cost-effective programs to best utilize the annual water conservation operating budget. The guiding document for water utility efficiency goals is the Urban Water Management Plan (UWMP) (Staff Report #12025)1. The UWMP is updated every five years and outlines the long- term supply and demand-side issues and policies impacting the water utility. The UWMP also details the measures CPAU will take to reach its water reduction goals, through a series of Demand Management Measures. For over a decade Valley Water has delivered water conservation programs to residents and businesses throughout Santa Clara County. Valley Water and the City co-fund various programs and partner to promote residential and commercial sanitary fixtures, free conservation devices, indoor and outdoor water efficiency surveys, irrigation hardware upgrades, and residential educational workshops. Marketing for all water conservation programs is shared between Valley Water and the City. Implementation and administrative functions for these programs (e.g., scheduling, budget tracking and invoicing, contractor oversight, customer service, and project reporting associated with program implementation) is managed by City and/or Valley Water staff, depending on the program. The most recent agreement was approved by Council on June 20, 2022 (Staff Report #14384)2, for the delivery of water conservation and efficiency programs to the Palo Alto residents and businesses. This new agreement expands on the prior one to incorporate AMI programs. On October 18, 2021, Council approved the AMI project with Sensus for the citywide AMI installation system (Staff Report #13665)3. The new and upgraded AMI water meters will be able to provide near-real time data on water consumption. When the AMI system becomes fully 1 Staff Report 12025 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city- manager-reports-cmrs/year-archive/2021/id-12025.pdf 2 Staff Report 14384 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city- manager-reports-cmrs/attachments/06-20-2022-id-14384.pdf 3 Staff Report 13665 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city- manager-reports-cmrs/year-archive/2021/10-18-2021-id-13665.pdf Item 31 Item 31 Staff Report Item 31: Staff Report Pg. 2 Packet Pg. 392 of 911 operational, residents and businesses will be able to monitor ongoing water consumption data and be alerted about possible water leaks from high flow. ANALYSIS There is a need for a new agreement because the 2022 Agreement did not include funding from Valley Water for AMI. Cost-sharing for other water conservation programs remains the same. Under this Agreement, most rebates will continue to be funded by Valley Water, with the City matching payments to customers for some programs. Palo Alto residents and businesses will be eligible to receive higher incentives than those from other water retailers in Santa Clara County for retrofits such as high-water use landscape conversion and custom facility process improvements for water efficiency. Mobile home parks and condominium complexes in Palo Alto will receive increased incentives for adding residential submeters. Rebates for laundry-to- landscape gray water systems will provide a financial incentive to residents to reduce potable water landscape irrigation. The Landscape Replacement Program provides rebates for residential and commercial customers to replace high water use landscapes with low water use landscape, and the rebate will be greater in Palo Alto due to the City’s contribution. Likewise, cost sharing will be implemented for rain barrels, cisterns, graywater systems, and rain gardens, all of which reduce reliance on potable water while keeping pollution out of the stormwater system and, thus, the San Francisco Bay. Tables A-1, A-2 and A-3 summarize the proposed Agreement costs and reflect funding for the cost-sharing rebate amounts for the programs. Palo Alto will match Valley Water-funded rebates for landscape conversion rebates, graywater systems, submeters, rain barrels, cisterns, and rain gardens resulting in higher incentives for the Palo Alto community. Table A-1 Water Conservation Program Rebate Matching Amounts from Palo Alto Landscape Conversion Rebate (in addition to VALLEY WATER rebate) $2.00 per square foot, up to $2,000 per residential site and $20,000 per commercial site Large Landscape Lawn to Mulch Rebate (in addition to VALLEY WATER rebate) $1.00 per square foot, up to $1,000 per residential site and $10,000 per commercial site Graywater Conversion Rebate (in addition to VALLEY WATER rebate) $200 per site Submeter Rebate $150 per submeter Item 31 Item 31 Staff Report Item 31: Staff Report Pg. 3 Packet Pg. 393 of 911 Table A-2 Stormwater Program Rebate Matching Amounts from Palo Alto Rain Barrel Rebate (in addition to VALLEY WATER rebate) Cost of the rain barrel minus VALLEY WATER’s rebate amount, up to a maximum of $35. Cistern (in addition to VALLEY WATER rebate) $0.50 per gallon Rain Garden (in addition to VALLEY WATER rebate) Rebate cap: $1,000 per residential site; $5,000 per commercial site. Rebates may be applied to any combination of rebate types and amounts listed in Tables A-2 or A-3. $1 per square foot, up to $300 per site Table A-3 Payments from Valley Water to Palo Alto for Rain Barrels Distributed by Palo Alto Rain Barrel Distribution Event Rebate (in addition to CITY rebate) Rebate caps do not apply $35.00 per rain barrel Valley Water provides access to their online application portal to City of Palo Alto residents and businesses for all the programs listed above. Valley Water administers rebates for the programs listed in Table A-1 and A-2 on behalf of both agencies and then invoices the City. The City will administer rebates for the discounts on any rain barrels, cisterns or rain gardens (listed in Table A-3), and then invoice Valley Water. These discounts are offered at Rain Barrel Distribution Events which may occur yearly or biannually. CPAU staff also administers several water conservation programs in-house. CPAU’s Water Reports provide information to residents including water use and tips and programs to improve water efficiency. CPAU’s AMI program will be able to provide near-real time data on water consumption and alert residents of possible leaks. Valley Water will pay the City up to $1,435,000 to help fund the City’s AMI and Water Use Reports program, and Rain Barrel Distribution program. To ensure continued and aggressive water conservation efforts, staff recommends Council approve the proposed Agreement with a maximum City funding obligation total of $225,000 per year and $1,575,000 over the seven-year term. The additional funding will ensure continued momentum of the eight water efficiency programs administered by Valley Water and City though June 30, 2030. Table 2 shows funding amounts for the seven years of the proposed Agreement by department budget. Item 31 Item 31 Staff Report Item 31: Staff Report Pg. 4 Packet Pg. 394 of 911 Table 2: The City's Proposed Agreement Funding Department FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 Total Utilities (Water Fund) $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $1,400,000 Public Works (Stormwater Management Fund) $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $175,000 Total $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $1,575,000 FISCAL/RESOURCE IMPACT Palo Alto will match Valley Water-funded rebates for landscape conversion rebates, graywater systems, submeters, rain barrels, cisterns, and rain gardens resulting in higher incentives for the Palo Alto community. - Rebates for landscape conversion rebates, graywater systems, and submeters programs will be funded from the Utilities Department budget while rebates for the remaining programs will be funded by the City’s Stormwater Management Fee for the first year of the contract subject to the approval of the FY 2024 Proposed Operating budget. Funding for FY 2025 and beyond is subject to City Council approval of the annual appropriation of funds through the annual budget process. - Valley Water will pay the City up to $1,435,000 to help fund the City’s AMI and Water Use Reports program, and Rain Barrel Distribution program. Implementation of the proposed conservation programs will slightly reduce the City’s water consumption, and thus reduce water revenues to the Utility but will reduce water supply costs by a greater amount, reducing overall costs to the community. These water efficiency programs are expected to be cost-effective, meaning the cost of implementation will be lower than the water supply cost. POLICY IMPLICATIONS The proposed Agreement continues funding for water efficiency programs consistent with the 2020 Urban Water Management Plan (Staff Report #12025)4, the Utilities Strategic Plan, and the City’s Sustainability and Climate Action Plan Goals and Key Draft Sustainability and Climate Action Plan Goals and Key Actions5. Stormwater-related programs support implementation of the Green Stormwater Infrastructure (GSI) Plan accepted by Council in May 2019 (Staff Report #9883)6. 4 Staff Report 12025 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city- manager-reports-cmrs/year-archive/2021/id-12025.pdf 5 Draft Sustainability and Climate Action Plan Goals and Key Actions https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/attachments/2020-sustainability-and-climate-action-plan-potential-goals-and-key-actions-draft.pdf 6 Staff Report 9883 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city- manager-reports-cmrs/year-archive/2019/id-9883-acceptance-of-the-copa-green-stormwater-infrastructure- plan.pdf Item 31 Item 31 Staff Report Item 31: Staff Report Pg. 5 Packet Pg. 395 of 911 In December 2018, the SWRCB adopted amendments to the Water Quality Control Plan for the San Francisco Bay/Sacramento-San Joaquin Delta Estuary (Bay Delta Plan Amendment) to establish water quality objectives to maintain the health of the Bay Delta ecosystem. Palo Alto Council expressed support for the Bay Delta Plan Amendment in its August 20, 2018 vote7. Water conservation programs are an important means for Palo Alto to reduce its dependence on the Tuolumne River. STAKEHOLDER ENGAGEMENT Palo Alto and Valley Water both actively market these programs though their websites, at community events, via bill inserts, other social media and newsletters. ENVIRONMENTAL REVIEW Approval of the proposed Agreement does not meet the definition of a project pursuant to Section 21065 of the California Public Resources Code, thus no environmental review under the California Environmental Quality Act (CEQA) is required and is categorically exempt from CEQA under Public Resources Code Sections 15307 (Actions by Regulatory Agencies for Protection of Natural Resources) and 15308 (Actions by Regulatory Agencies for Protection of the Environment). Valley Water is the lead agency with respect to Water Conservation and Stormwater programs covered by the Agreement. The City’s implementation and use of AMI water meters is categorically exempt under California Environmental Quality Act (CEQA) Guidelines section 15301(b) as a Project involving minor alteration of existing public utilities facilities and equipment. ATTACHMENTS Attachment A: Agreement for Water Conservation Programs and Advanced Metering Infrastructure APPROVED BY: Dean Batchelor, Director of Utilities Staff, Linda Grand, Sustainability Programs Administrator 7 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/00-archive/2018/08-20-2018-final-ccm-minutes.pdf Item 31 Item 31 Staff Report Item 31: Staff Report Pg. 6 Packet Pg. 396 of 911 Agreement Between Valley Water and Palo Alto for Water Conservation Programs, FY 23 1 1 4 6 3 AGREEMENT BETWEEN THE SANTA CLARA VALLEY WATER DISTRICT AND THE CITY OF PALO ALTO FOR WATER CONSERVATION PROGRAMS AND ADVANCED METERING INFRASTRUCTURE This Agreement (AGREEMENT), effective as of June 25, 2023, (EFFECTIVE DATE) between the Santa Clara Valley Water District, a special district created by the California Legislature (hereinafter referred to as VALLEY WATER) and the City of Palo Alto, a California chartered municipal corporation (hereinafter referred to as PALO ALTO), sets forth the respective roles of VALLEY WATER and PALO ALTO in regard to WATER CONSERVATION PROGRAMS (hereinafter referred to as PROGRAMS). VALLEY WATER and PALO ALTO may be referred to in this AGREEMENT individually as a "PARTY" or collectively as the "PARTIES." RECITALS WHEREAS, the PROGRAMS involve providing water conservation services and rebates, Advanced Metering Infrastructure (AMI) and Water Use Reports for properties located within PALO ALTO’s service area; and WHEREAS, VALLEY WATER administers PROGRAMS as described in Exhibit A; and WHEREAS, PALO ALTO administers an AMI and WATER USE REPORTS PROGRAM per the AMI Guidelines specified in Exhibit B, and a RAIN BARREL DISTRIBUTION EVENT, during which PALO ALTO residents and businesses will have opportunity to purchase rain barrels at a discount funded by rebates from both PALO ALTO and VALLEY WATER without submitting a rebate application; and WHEREAS, the AMI and WATER USE REPORTS PROGRAM educates customers about water conservation, drought, and water demand management within Palo Alto’s service area; and WHEREAS, the PROGRAMS are consistent with VALLEY WATER’s and PALO ALTO’s Urban Water Management Planning Act requirements; and WHEREAS, the PROGRAMS goals are to save water and provide information on how to use water most efficiently; and WHEREAS, VALLEY WATER and PALO ALTO wish to collaborate to implement PROGRAMS, AMI and WATER USE REPORTS PROGRAM, and the RAIN BARREL DISTRIBUTION EVENT in the service area as described in this AGREEMENT; and WHEREAS, both PARTIES wish to cost share with each other on each of these PROGRAMS. NOW, THEREFORE, in consideration of the recitals and mutual obligations of the PARTIES expressed in this Agreement, VALLEY WATER and PALO ALTO agree as follows: 1. PALO ALTO’s RESPONSIBILITIES a. Administration of the AMI and WATER USE REPORTS PROGRAM per the AMI Guidelines, and any administrative updates implemented by Valley Water thereto (Exhibit B). b. Identify and provide data on PALO ALTO’s AMI Implementation plan, including timeline, number of active meters and their AMI status. c. Collection and analysis of data to determine water savings. d. Administration of all funds for the AMI and WATER USE REPORTS PROGRAM. Item 31 Attachment A - Agreement for Water Conservation Programs and Advanced Metering Infrastructure Item 31: Staff Report Pg. 7 Packet Pg. 397 of 911 Agreement Between Valley Water and Palo Alto for Water Conservation Programs, FY 23 2 1 4 6 3 e. Provide water usage records and other data to VALLEY WATER to determine savings and cost effectiveness of the AMI and WATER USE REPORTS PROGRAM , subject to the disclosure requirement outlined in 1.e.1. below. This includes number of Water Use Reports sent by month and additional requirements described in Exhibit B. 1. In accordance with Gov. Code 6254.16, customer name, home address and water usage records will only be made available to VALLEY WATER for those customer account holders from whom VALLEY WATER has obtained written authorization for the release of such information from PALO ALTO. In situations that release of such information as not been granted, then aggregate data will be provided. f. Invoice VALLEY WATER, on a bi-annual basis, for fifty percent of the contract cost (net any grant funding received by PALO ALTO) for PALO ALTO to send Water Use Reports to PALO ALTO residents, up to $2.25 per connection. PALO ALTO shall not invoice VALLEY WATER for any amounts exceeding the annual cap set forth in Section 3.d. below. Only costs paid directly to Water Use Reports vendor shall be included in the bi-annual invoice. g. Invoice VALLEY WATER, on a bi-annual basis, $10 for each AMI water connection meeting all of the following criteria as reflected in Exhibit B per Section 1.a. above. PALO ALTO shall not invoice VALLEY WATER for any amounts exceeding the annual cap set forth in Section 3.e. below. h. Provide VALLEY WATER bi-annually information on the number of leak alerts sent, estimated leak volumes and duration, and estimated water savings associated with leak alerts for each month. i. Work cooperatively with VALLEY WATER in appropriately advertising the PROGRAMS to targeted customers. j. Creation and distribution of outreach materials encouraging customer enrollment in leak alerts and active portal engagement. k. Make payment to VALLEY WATER within thirty (30) days of receipt of a bi-annual invoice from VALLEY WATER. When submitting an invoice, VALLEY WATER shall provide PROGRAM participation information. Parties may mutually agree in writing to extend the deadline for payment sixty (60) days of receipt of an invoice. l. Administer the RAIN BARREL DISTRIBUTION EVENT once annually or every other year. 1. At the RAIN BARREL DISTRIBUTION EVENT, PALO ALTO residents and businesses will have opportunity to purchase rain barrels at a discount funded by rebates from both PALO ALTO and VALLEY WATER without submitting a rebate application. 2. RAIN BARREL DISTRIBUTION EVENT rebates do not count toward the maximum rebate caps per site described in Exhibit A, Table A-2. 3. RAIN BARREL DISTRIBUTION EVENT will meet all of VALLEY WATER’s rain barrel rebate requirements as specified under the Landscape Rebate Program. 4. Notify VALLEY WATER within a minimum of 60 days before each RAIN BARREL DISTRIBUTION EVENT. 5. RAIN BARREL DISTRIBUTION EVENT’s outreach materials will acknowledge VALLEY WATER’s funding support and PROGRAMS. 6. Invoice Valley Water within a minimum of 30 days after each RAIN BARREL DISTRIBUTION EVENT in accordance with the amounts listed in Exhibit A, Table A-3. a. Include an attachment to the invoice with the following information: participating customer information, including customer name, site address, rain barrel purchase date, rain barrel quantity and size, total rebate amount in dollars, and total rebate amount owed by VALLEY WATER and PALO ALTO in dollars. 7. Confirm VALLEY WATER has provided written authorization for all customer account holders whose data will be shared under this Agreement. 2) VALLEY WATER’S RESPONSIBILITIES Item 31 Attachment A - Agreement for Water Conservation Programs and Advanced Metering Infrastructure Item 31: Staff Report Pg. 8 Packet Pg. 398 of 911 Agreement Between Valley Water and Palo Alto for Water Conservation Programs, FY 23 3 1 4 6 3 a. Administration of VALLEY WATER PROGRAMS as listed in Exhibit A, Tables A-1 and A-2 including, but not limited to, 1. Processing the payment of the amounts set forth in Section 3 below, to eligible persons residing in PALO ALTO (“ELIGIBLE RESIDENTS”). This supplemental rebate amount shall be in addition to the customary amounts paid by VALLEY WATER. 2. Payment of standard Landscape Rebate Program amounts to ELIGIBLE RESIDENTS within 8- 12 weeks of approval of PALO ALTO’s residential applicant’s request. b. At least once per fiscal year, collect and analyze data to determine VALLEY WATER PROGRAM water savings and provide the results to PALO ALTO with PALO ALTO customer participation data c. Administration of all funds for VALLEY WATER PROGRAMS. d. Invoicing PALO ALTO, on a bi-annual basis, in accordance with PALO ALTO’s REIMBURSEMENT RATES listed in Exhibit A. 1. Invoices shall include an attachment with VALLEY WATER PROGRAM customer information for those SERVICE AREA customers who received services during the dates of the invoice. 2. Customer information shall include the rebate number, invoice date, date of notice to proceed, rebate type, customer name, customer site type, customer address, area of converted landscape in square feet (if applicable), rainwater capture details (if applicable), including rain garden (roof square footage), rain barrel quantity, and cistern total gallonage, total rebate amount in dollars, total rebate amount owed by VALLEY WATER and PALO ALTO. 3. In accordance with Gov. Code 6254.16, VALLEY WATER shall ensure that customer names, home addresses and utility usage data will only be made available to PALO ALTO for those customer account holders from whom VALLEY WATER has obtained written authorization for the release of information. e. Share in the cost of the AMI and WATER USE REPORTS PROGRAM. VALLEY WATER will pay 50 percent of the costs, up to $2.25 per connection. The annual cap for this program is listed in Section 3.d below. f. Compensate PALO ALTO $10 for each qualifying AMI water connection meeting the specifications in Section 1.g. above and Section 3.e below. The annual cap for this program is listed in Section 3.e below. g. Make payment to PALO ALTO within thirty (30) days of receipt of an invoice from PALO ALTO. When submitting an invoice, PALO ALTO shall provide a copy of the corresponding Water Use Reports’ vendor invoice and program participation information to VALLEY WATER. Parties may mutually agree in writing to extend the deadline for payment sixty (60) days of receipt of an invoice. 3) NOT TO EXCEED COMPENSATION a. The compensation to be paid to VALLEY WATER by PALO ALTO for PROGRAMS as described EXHIBIT A, Table A-1, shall not exceed $200,000 per year or $1,400,000 over the TERM. b. The compensation to be paid to VALLEY WATER by PALO ALTO for PROGRAMS as described EXHIBIT A, Table A-2, shall not exceed $25,000 per year or $175,000 over the TERM. c. The compensation to be paid to PALO ALTO by VALLEY WATER for the RAIN BARREL DISTRIBUTION EVENT program as described in EXHIBIT A, Table A-3 shall not exceed $5,000 per year or $35,000 over the TERM. d. The compensation to be paid to PALO ALTO by VALLEY WATER for the WATER USE REPORTS PROGRAM shall not exceed $25,000 annually or $175,000 during the term of the agreement. e. The compensation to be paid to PALO ALTO by VALLEY WATER for AMI shall not exceed $175,000 per year or $1,225,000 over the TERM. Item 31 Attachment A - Agreement for Water Conservation Programs and Advanced Metering Infrastructure Item 31: Staff Report Pg. 9 Packet Pg. 399 of 911 Agreement Between Valley Water and Palo Alto for Water Conservation Programs, FY 23 4 1 4 6 3 f. Either PARTY may adjust its contribution to any of the rebate amounts for any of the PROGRAMS described in EXHIBIT A, so long as that PARTY’s total contribution for any individual program does not exceed the amounts described in Sections 3.a-3.e, respectively. g. Pay VALLEY WATER the annual retail agency licensing fee of $1,000 for access to Droplet Landscape Rebate Program application portal. 4) HOLD HARMLESS AND LIABILITY a. In lieu of and notwithstanding the pro rata risk allocation, which might otherwise be imposed between the PARTIES pursuant to Government Code Section 895.6, the PARTIES agree that all losses or liabilities incurred by a PARTY shall not be shared pro rata but, instead, VALLEY WATER and PALO ALTO agree that, pursuant to Government Code Section 895.4, each of the PARTIES hereto shall fully indemnify and hold each of the other PARTIES, their officers, Board members, Council members, employees, and agents, harmless from any claim, expense or cost, damage or liability imposed for injury (as defined in Government Code Section 810.8) occurring by reason of the negligent acts or omissions or willful misconduct of the indemnifying PARTY, its officers, employees or agents, under or in connection with or arising out of any work, authority or obligation delegated to such PARTY under this AGREEMENT. No PARTY, nor any officer, Board member, Council member, employee or agent thereof shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful misconduct of the other PARTIES hereto, their officers, Board members, Council members, employees, or agents, under or in connection with or arising out of any work authority or obligation delegated to such other PARTIES under this AGREEMENT. b. The rights, duties, and obligations of the PARTIES as set forth above in this Hold Harmless and Liability section will survive termination, suspension, completion, and expiration of this AGREEMENT. 5) NO POWER TO INCUR ANY DEBT, OBLIGATION OR LIABILITY PARTIES shall have no power to incur any debt, obligation, or liability on behalf of other PARTY or otherwise act as an agent of the other PARTY. 6) DOCUMENT REVIEW VALLEY WATER and PALO ALTO will, upon reasonable advance written notice, make available for inspection to the other PARTY records, books and other documents relating to the PROGRAMS. 7) TERM The term of the Agreement is from June 25, 2023 to June 30, 2030, or until funds are depleted, whichever occurs first. The term of the Agreement may be extended by mutual written consent of the PARTIES. This Agreement shall be contingent upon approval of program funding each fiscal year by both VALLEY WATER’s Board of Directors and by the City Council of PALO ALTO. 8) NOTICE Any notice, payment, credit or instrument required or permitted to be given hereunder shall be deemed received upon personal delivery or five (5) days after deposit in any United States mail depository, first class postage prepaid and addressed to the PARTY for whom intended. If to VALLEY WATER:Santa Clara Valley Water District 5750 Almaden Expressway San Jose, CA 95118 Item 31 Attachment A - Agreement for Water Conservation Programs and Advanced Metering Infrastructure Item 31: Staff Report Pg. 10 Packet Pg. 400 of 911 Agreement Between Valley Water and Palo Alto for Water Conservation Programs, FY 23 5 1 4 6 3 Attn: Conservation Programs If to PALO ALTO:Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 Either PARTY may change such address by notice given to the other PARTY as provided in this Section 8. 9) INSURANCE Each PARTY shall adhere to the insurance requirements that are specified in Exhibit C of this AGREEMENT. Either PARTY to this AGREEMENT may submit a letter of self-insurance to satisfy the insurance requirements of Exhibit C. 10)ENTIRE AGREEMENT This AGREEMENT contains the entire AGREEMENT between VALLEY WATER and PALO ALTO relating to the PROGRAMS. Any prior agreements, promises, negotiations, or representations not expressly set forth in this AGREEMENT are of no force or effect. 11)AMENDMENTS The Agreement may only be amended by written agreement executed by both PARTIES. 12)ASSIGNMENT Neither PARTY is allowed to assign, sublet, or transfer this AGREEMENT or any of the rights or interests in this AGREEMENT without the written consent of the other PARTY. 13)WAIVER A PARTY’s waiver of any term, condition, covenant, or breach of any term, condition, or covenant shall not be construed as a waiver of any other term, condition, or covenant, or breach of any other term, condition, or covenant. 14)SEVERABILITY The partial or total invalidity of one or more parts of this AGREEMENT will not affect the intent or validity or remaining parts of this AGREEMENT. 15)GOVERNING LAW This AGREEMENT is a contract under the laws of the State of California and for all purposes must be interpreted in accordance with such laws. The federal and state courts within Santa Clara County, California shall have exclusive jurisdiction to adjudicate any dispute arising out of or related to this Agreement. Each PARTY expressly consents to the personal jurisdiction of and venue in such courts, and service of process effected upon it by registered mail sent to the address set forth herein for each PARTY. 16)TERMINATION OF AGREEMENT Item 31 Attachment A - Agreement for Water Conservation Programs and Advanced Metering Infrastructure Item 31: Staff Report Pg. 11 Packet Pg. 401 of 911 Agreement Between Valley Water and Palo Alto for Water Conservation Programs, FY 23 6 1 4 6 3 This AGREEMENT may be terminated by either PARTY hereto for any reason upon thirty (30) days written notice to the other PARTY. 17)COUNTERPARTS This AGREEMENT may be executed in counterparts, each of which, when executed and delivered, will be deemed to be an original, and which taken together will be deemed to be one and the same instrument, and will be binding as executed. 18)SIGNATURES The individuals executing this AGREEMENT represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. Unless otherwise prohibited by law or PALO ALTO policy, the PARTIES agree that an electronic copy of a signed contract, or an electronically signed contract, has the same force and legal effect as a contract executed with an original ink signature. The term “electronic copy of a signed contract” refers to a writing as set forth in Evidence Code Section 1550. The term “electronically signed contract” means a contract that is executed by applying an electronic signature using technology approved by the PARTIES. 19)CALIFORNIA ENVIRONMENTAL QUALITY ACT. The PARTIES’ approval of this Agreement is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15301 (Existing Facilities) and 15304 (Minor Alterations to Land). 20)COMPLIANCE WITH LAWS Each PARTY shall at all times in the performance of its obligations under this Agreement comply with all applicable laws as each currently exists and as may hereafter be amended. 21)EQUAL OPPORTUNITY a. Equal Opportunity Employer Valley Water is an equal opportunity employer and requires its public agency partners to have and adhere to a policy of equal opportunity and non-discrimination. In the performance of the Agreement, both PARTIES will comply with all applicable federal, state, local laws and regulations, and will not discriminate against any subcontractor, employee, or applicant for employment in the recruitment, hiring, employment, utilization, promotion, classification or reclassification, transfer, recruitment advertising, evaluation, treatment, demotion, layoff, termination, rates of pay or other forms of compensation, and selection for professional development training (including apprenticeship), or against any other person, on the basis of sex (which includes pregnancy, childbirth, breastfeeding and medical conditions related to pregnancy, childbirth or breastfeeding), race, religion, color, national origin (including language use restrictions), ancestry, religious creed (including religious dress and grooming practices), political affiliation, disability (mental and physical, including HIV or AIDS), medical condition (cancer and genetic characteristics), genetic information, marital status, parental status, gender, age (40 and over), pregnancy, military and veteran status, sexual orientation, gender identity and gender expression, the exercise of family and medical care leave, the exercise of pregnancy disability leave, or the request, exercise, or need for reasonable accommodation. b. Compliance with Applicable Equal Opportunity Laws Item 31 Attachment A - Agreement for Water Conservation Programs and Advanced Metering Infrastructure Item 31: Staff Report Pg. 12 Packet Pg. 402 of 911 Agreement Between Valley Water and Palo Alto for Water Conservation Programs, FY 23 7 1 4 6 3 Each PARTY’s policy must be in conformance with applicable state and federal guidelines including the Federal Equal Opportunity Clause, 41 Code of Federal Regulations, Part 60-1, §60- 1.4; Title VII of the Civil Rights Act of 1964 as amended; the Americans with Disabilities Act of 1990; the Rehabilitation Act of 1973 (§503 and §504); the Age Discrimination Act of 1975 (42 U.S.C. §6101 et seq.); the California Fair Employment and Housing Act (Government Code §12900 et. seq.); and California Labor Code §1101 and §1102. c. Investigation of Claims Each Party must designate a specific position within its organization to be responsible for investigating allegations of non-compliance with the anti-discrimination and anti-harassment provisions of this Agreement. Each Party must conduct a fair, prompt, and thorough investigation of all allegations directed to that Party. In cases where such investigation results in a finding of discrimination, harassment, or hostile work environment, the responding Party must take prompt, effective action against the offender. In WITNESS WHEREOF, the PARTIES have executed this AGREEMENT as of the EFFECTIVE DATE set forth above. CITY OF PALO ALTO APPROVED AS TO FORM: Aylin Bilir Ed Shikada Assistant City Attorney City Manager City of Palo Alto City of Palo Alto SANTA CLARA VALLEY WATER DISTRICT an independent special district created by the California Legislature _________________________ Rick L. Callender, Esq. Chief Executive Officer Santa Clara Valley Water District Item 31 Attachment A - Agreement for Water Conservation Programs and Advanced Metering Infrastructure Item 31: Staff Report Pg. 13 Packet Pg. 403 of 911 Agreement Between Valley Water and Palo Alto for Water Conservation Programs, FY 23 8 1 4 6 3 EXHIBIT A WATER CONSERVATION PROGRAMS AND REIMBURSEMENT RATES The reimbursement rates for the PROGRAMS administered by VALLEY WATER and PALO ALTO are specified below. PARTIES will be reimbursed for the PROGRAMS listed below, up to a Not-To-Exceed Amount Specified in the AGREEMENT. Table A-1 Water Conservation Program Rebate Matching Amounts from PALO ALTO Landscape Conversion Rebate (in addition to VALLEY WATER rebate) $2.00 per square foot, up to $2,000 per residential site and $20,000 per commercial, industrial, institutional, and multi-family site (5+ units) Large Landscape Lawn to Mulch Rebate (in addition to VALLEY WATER rebate) $1.00 per square foot, up $10,000 per commercial, industrial, institutional, and multi-family sites (5+ units) Graywater Conversion Rebate (in addition to VALLEY WATER rebate) $200 per site Submeter Rebate (in addition to VALLEY WATER rebate) $150 per submeter Table A-2 Stormwater Program Rebate Matching Amounts from PALO ALTO Program PALO ALTO’S Reimbursement Rates Rain Barrel Rebate (in addition to VALLEY WATER rebate) Cost of the rain barrel minus VALLEY WATER’s rebate amount, up to a maximum of $35. Cistern (in addition to VALLEY WATER rebate) $0.50 per gallon Rain Garden (in addition to VALLEY WATER rebate) Rebate cap: $1,000 per residential site; $5,000 per commercial site, industrial, institutional, and multi-family site. Rebates may be applied to any combination of rebate types and amounts listed in Tables A-2 or A-3.$1 per square foot, up to $300 per site Table A-3 Payments from VALLEY WATER for Rain Barrels Distributed by PALO ALTO Rain Barrel DISTRIBUTION EVENT Rebate (in addition to PALO ALTO rebate) Rebate caps do not apply $35.00 per rain barrel. Item 31 Attachment A - Agreement for Water Conservation Programs and Advanced Metering Infrastructure Item 31: Staff Report Pg. 14 Packet Pg. 404 of 911 Agreement Between Valley Water and Palo Alto for Water Conservation Programs, FY 23 9 1 4 6 3 EXHIBIT B AMI AND WATER USE REPORT PROGRAM CRITERIA 2023 Valley Water offers a cost sharing program for Advanced Metering Infrastructure (AMI) meters and Water Use Reports, as described below. This cost sharing program is intended for both residential, and commercial, institutional, or industrial (CII) sites. Water use reports are intended for residential customers at a minimum but expansion to CII is encouraged. General Administrative Requirements: 1. Water retailers must provide documentation of the total number of meters (AMI and non-AMI) by account type (e.g., single-family residential, commercial, etc.) in the service area. Water retailers must include in the documentation: a. a description of the retailer’s account types, and b. how they will provide Valley Water accurate and up-to-date meter counts once per fiscal year. 2. Water retailers must provide an approximate implementation plan for AMI deployment, including the anticipated schedule. An implementation plan could include relevant excerpts from planning documents such as Water Supply Master Plans, Urban Water Management Plans, etc. 3. Provide customers with Water Use Reports to provide a detailed and relevant account of their water usage. Water Use Reports must be sent to residential customers and are encouraged for CII customers. Water Use Reports may differ between water retailers, but there are some required criteria, as described below: a. Their water usage history covering at least the most recent reporting and/or billing period; b. A specific water-use comparison between the target property and water usage to similar properties in their service area; c. Programmatic and behavioral recommendations to save water that are relevant to the property; d. Easy access to an online water usage portal; and e. Usage/leak alerts using industry best practices. 4. Water retailers must provide Valley Water with leak alert thresholds and report templates at least once per fiscal year unless no template changes occurred. The provision of other examples of program-related messaging (mailers and water-saving recommendations) is encouraged. 5. General administrative requirements affecting Water Use Reports, leak alert notifications, and leak alert thresholds may be adjusted for the purposes of conducting experiments to quantify water savings within specific service areas. Adjustments for this provision require written agreement between Valley Water and the water retailer. These adjustments are limited to a not- to-exceed period of 24 months. There are two options for water retailers to cost share with Valley Water on the AMI and Water Use Report Program (water retailers may only choose one option). Each option will have an annual not-to- exceed cap relative to the full term of the agreement, and a budget for the full term of the agreement based on the number of qualifying meters. Valley Water funding will be available as Valley Water’s budget allows, which is subject to annual Board approval (approximately every Spring). Please inform Valley Water of intent to participate in the program as soon as possible. Item 31 Attachment A - Agreement for Water Conservation Programs and Advanced Metering Infrastructure Item 31: Staff Report Pg. 15 Packet Pg. 405 of 911 Agreement Between Valley Water and Palo Alto for Water Conservation Programs, FY 23 10 1 4 6 3 OPTION 1: AMI Conversion Combined with Water Use Reports1 Valley Water will rebate $10 per AMI conversion currently in operation annually for the next seven years and will fund 50 percent of the cost of the software linked to AMI, up to $2.25 per connection per year, when combined with Water Use Reports. Valley Water’s funding may be used for either capital and/or operations and maintenance costs. Funding for this option in years 2 through 7 will be contingent upon documentation of water savings achieved in the previous year(s). Requirements for Option 1: 1. AMI meters eligible for funding must have been active for seven years or less; 2. AMI meters must be read at a minimum of once an hour; 3. AMI meters must be linked to a customer-accessible water usage portal with online access; 4. AMI Alerts: a. Data on leak and high usage alerts by account and zip code are required for the most recent invoicing period. In lieu of identifying leaks by account number, a unique-identifier system for each record in the dataset can instead be provided to aid Valley Water with long-term data querying and tracking. b. Leak alert settings for continuous leaks must not exceed 5 gallons per hour for single- family residential accounts with a duration not to exceed 72 hours; and duration of burst leaks is not to exceed 8 hours. Depending on metering technology advancements, these thresholds can be adjusted with mutual agreement between Valley Water and retailers.c.Leak alert settings (volume and duration thresholds) for continuous leaks or spikes in water use on CII properties must be set by the utility using industry best practices2 d. Utilities must have a plan in place for contacting customers with large leaks3 who cannot be contacted through standard procedures (letters, emails, SMS, or phone calls). Retailers must have a process in place to contact customers whose irrigation does not comply with local restrictions. 5. If Water Use Reports through the online portal are optional, the water retailers shall provide an opt-out option, as opposed to requiring opt-in sign-ups to access Water Use Reports; 6. Water Use Reports must be sent out a minimum of four times per year indicated clearly in supporting documentation (Item 7); 7. Water retailers must coordinate with Valley Water to promote Valley Water’s conservation programs through Water Use Reports; 8. Water retailers must provide to Valley Water the number of Water Use Reports sent, number of sites Water Use Reports were sent to, number of leak alerts sent, estimated leak volumes and duration, and estimated water savings associated with leak alerts. Data must be sent semi- annually, broken down by utility billing period, provide dates and durations of every leak alert, and include a total water savings estimate based on volume and duration of identified leaks. A data template may be provided by Valley Water. a. Providing Valley Water access to an aggregated dashboard with the above content is preferred over reports or Excel files. Excel files are acceptable. 1 If a water retailer has previously received funding from Valley Water for AMI conversions, those conversions will not be eligible for additional funding. 2 Individual customers may modify their individual use baseline and reset their notifications at their discretion. CII water use is more varied, making it more complex to analyze and making leaks harder to identify. Water retailers may choose to rely on long- term usage averages and multiples thereof to assess CII leak alert notifications and thresholds. CII leak alert notifications and thresholds should align with current industry best practices as demonstrated by primary research or applicable case studies. Custom CII leak alert notifications and thresholds should be provided to Valley Water in the water retailer’s supporting documentation. 3 “Large leaks” may be defined by the water retailer and defined in supporting documentation the water retailer provides Valley Water. Item 31 Attachment A - Agreement for Water Conservation Programs and Advanced Metering Infrastructure Item 31: Staff Report Pg. 16 Packet Pg. 406 of 911 Agreement Between Valley Water and Palo Alto for Water Conservation Programs, FY 23 11 1 4 6 3 i. If providing reports or Excel files, data must include the applicable cost-share agreement section reference that this requirement is fulfilling. ii. Data must cover the period from the effective date of the contract through the most recent invoicing period. If providing reports or Excel files, data redundancy between the reports/files of subsequent invoicing periods should be avoided. b. Corresponding metadata describing variables, attributes, and analysis conducted to estimate water savings shall be provided or embedded within delivered data. OPTION 2: Water Use Reports Only Valley Water will rebate 50 percent of the cost of Water Use Reports, up to $4.50 per connection per year. No AMI or meter type requirement. Valley Water currently has this program in place. Requirements for Option 2: 1. Customer accessible water usage portal, with mobile and online access; 2. If Water Use Reports through the online portal are optional, the water retailers shall provide an opt-out option, as opposed to requiring opt-in sign ups to access Water Use Reports; 3. Water Use Reports must be sent out a minimum of four times per year indicated clearly in supporting documentation (Item 5); 4. Water retailers must coordinate with Valley Water to promote Valley Water’s conservation programs through Water Use Reports; 5. Water retailers must provide to Valley Water the number of water use reports sent and the number of sites the reports were sent to. Data must be sent semi-annually, broken down by utility billing period. A data template may be provided by Valley Water. a. Providing Valley Water access to an aggregated dashboard with the above content is preferred over reports or Excel files. i. If providing reports or Excel files, data must include the applicable cost-share agreement section reference that this requirement is fulfilling. ii. Data must cover the period from the effective date of the contract through the most recent invoicing period. If providing reports or Excel files, data redundancy between the reports/files of subsequent invoicing periods should be avoided. b. Corresponding metadata describing variables, attributes, and analysis conducted to estimate water savings shall be provided or embedded within delivered data. Valley Water staff will work with water retailers to create new cost sharing agreements or amend existing agreements to include the AMI and Water Use Report Programs. Item 31 Attachment A - Agreement for Water Conservation Programs and Advanced Metering Infrastructure Item 31: Staff Report Pg. 17 Packet Pg. 407 of 911 Agreement Between Valley Water and Palo Alto for Water Conservation Programs, FY 23 12 1 4 6 3 EXHIBIT C INSURANCE Each PARTY represents and warrants that, at its sole cost and expense it will maintain for the duration of the AGREEMENT self-insurance against claims for injuries to persons or damages to property that may arise from, or in connection with its (and its agents, representatives’, employees’ or contractors)’ performance of the services and/or operations herein and the indemnity provisions of this AGREEMENT. A. Types of Coverage Coverage provided by said self-insurance programs shall apply to and be in lieu of maintaining General and Auto Liability and Workers’ Compensation insurance, as well as Professional Liability Errors and Omissions insurance, when applicable. B. Minimum Limits of Coverage Coverage for Commercial General and Auto Liability shall be for not less than $1,000,000 per occurrence and aggregate. Coverage for Professional Liability Errors and Omissions shall not be for less than $1,000,000 per claim and aggregate. Coverage for Workers’ Compensation coverage shall be as required by the California Labor Code and include Employers Liability limits of not less than $1,000,000 per accident. C. Other Self-Insurance Provisions Each PARTY’s self-insurance coverage applies to the other PARTY, its officers, employees, agents and contractors as respects: Liability arising out of activities performed by or on behalf of, the insuring PARTY; products and completed operations of the insuring PARTY; premises owned, leased or used by the insuring PARTY; and automobiles owned, hired or borrowed by the insurance PARTY. Said self- insurance applies fully to any indemnity for the insured PARTY, its officers, employees, agents and contractors. Each PARTY’s self-insurance coverage shall be primary as respects to insured PARTY, its officers, employees, agents and contractors. Any insurance or self-insurance maintained by insured PARTY, its officers, agents, or contractors shall be excess of insuring PARTY’s self-insurance and shall not contribute with it. D. Verification of Coverage Execution of this AGREEMENT shall constitute each PARTY’s representation and warranty as to the coverage required by this AGREEMENT, and authority of the person signing the AGREEMENT to bind coverage on its behalf. E. Contractors Each PARTY shall obtain separate evidence of insurance for each contractor/consultant hired to perform any services under this Agreement Item 31 Attachment A - Agreement for Water Conservation Programs and Advanced Metering Infrastructure Item 31: Staff Report Pg. 18 Packet Pg. 408 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: June 19, 2023 Report #:2304-1236 TITLE Approval of a Blanket Purchase Order with Graniterock Company for the purchase of Sand, Rock, and Cutback-Cold Mix Asphalt Materials for the Public Works and Utilities Departments for a three-year term ending June 30, 2026; CEQA – Not a Project RECOMMENDATION Staff recommends that Council authorize the City Manager or their designee to execute a blanket purchase order with Graniterock Company for Sand, Rock, and Cutback-Cold Mix Asphalt Materials in the not-to-exceed amount of $315,075 for Fiscal Year 2024, $327,575 for Fiscal Year 2025 and $340,075 for Fiscal Year 2026, for a total not-to-exceed amount of $982,725 over a three-year term from July 1, 2023 to June 30, 2026. BACKGROUND Both the Public Works and Utilities Departments use Sand, Rock and Cutback-Cold Mix Asphalt regularly. Public Works uses for these materials include installing new sidewalks and/or replacing damaged sidewalks, patching potholes, and creating temporary ramps around metal plates located within the roadway. Utilities uses for these materials include pipe bedding and backfill of wastewater, gas, and water infrastructure. Utilities typically uses Cold Mix-Cut Back for temporarily backfilling trenches and ramping up metal plates. Hot Mix Asphalt, which is supplied through a separate blanket purchase order, is typically used for permanent trench restoration and roadway resurfacing. ANALYSIS Sand, Rock and Asphalt are essential for the Utilities and Public Works Departments to perform their day-to-day operations and enhancement projects. Without the use of these materials neither department would be able to fulfill the Public Works and Utilities Standards requirements (WGW-02, WGW-02B, PW Standards 4040 and 405) to replace sidewalks, bed pipes, and backfill various utility infrastructures. Item 32 Item 32 Staff Report Item 32: Staff Report Pg. 1 Packet Pg. 409 of 911 A Request for Quotation (RFQ) for Sand, Rock, and Cutback-Cold Mix Asphalt was sent to three potential vendors and posted on Planet Bids. Quotes were received from Graniterock Company (Graniterock) and two other bidders. One of the bidders was deemed non-responsive because they were unable to provide all the materials requested in the Scope of Work. Graniterock met all the requirements and was the lowest responsible bidder. Table 1: Summary of Bid Process: Proposed Length of Project Three years Total Days to Respond to Bid 30 Pre-Bid Meeting No Number of Bids Received: 3 Base Bid Price Range $598,320 to $1,225,045 Link to Bid https://pbsystem.planetbids.com/portal/25569/bo/ bo-detail/102160#bidInformation Under the recommended blanket purchase order, the cost of materials has increased by approximately 28% compared to the rates for Fiscal Year 2023. This price increase is attributed to inflation and the overall rise of cost in commodities. Table 2 displays the existing pricing for Fiscal Year 2023 in comparison to the bid price for Fiscal Year 2024. Table 2: Pricing Comparison for Fiscal Years 2023 and 2024 2,000 Clean Sand, Salt Free and Clay-Free $40.35 $80,700 $60.75 $121,500 500 Class 3 Permeable ½” Crushed Rock $60.18 $30,090 $85.20 $42,600 3,500 Class 2 Aggregate Base Rock $19.64 $68,740 $18.00 $63,000 500 Cutback Asphalt, 3/8” Cold Mix $122.12 $66,060 $175.95 $87,975 Staff recommends that Council approve and authorize the blanket purchase order for materials with Graniterock as the primary supplier. The City has had previous blanket purchase orders with Graniterock, and staff has consistently received product that met both the State of California and the City’s standards. Item 32 Item 32 Staff Report Item 32: Staff Report Pg. 2 Packet Pg. 410 of 911 FISCAL/RESOURCE IMPACT Staff recommends that Council approve the not-to-exceed amount of $315,075 for Fiscal Year 2024; however, actual spending is dictated entirely by need and will be controlled by each department. Funding for the first year of this contract is included in the Fiscal Year 2024 budget, and execution of the recommended blanket purchase order is contingent on Council approval and adoption of the Fiscal Year 2024 budget. The bid table1 that Graniterock submitted represents a menu of available products with unit pricing that are required to install and repair sidewalks, pipe bedding, and backfill of wastewater, gas, and water infrastructure. The Public Works and Utilities Departments estimate an annual need of $50,000 and $260,000, respectively. Staffing levels and planned work deferments may impact those estimates and will be considered before expending the funds. Funding for contract years two and three is contingent upon Council approval of each department’s budget for each subsequent year. STAKEHOLDER ENGAGEMENT Stakeholder engagement for the recommended blanket order was limited to the procurement process for reaching out to prospective bidders. ENVIRONMENTAL REVIEW Approval of the recommended blanket purchase order is not a project under the California Environmental Quality Act. ATTACHMENTS Attachment A: Bid from Granite Rock Company, RFQ185983 APPROVED BY: Brad Eggleston, Director Public Works/City Engineer 1 Bid Table RFQ185983 Granite Rock Company, March 8, 2023 https://www.cityofpaloalto.org/files/assets/public/public-works/public-services/attachment-a-bid-rfq185983- granite-rock-company_1.pdf Item 32 Item 32 Staff Report Item 32: Staff Report Pg. 3 Packet Pg. 411 of 911 (Fill in name on each page) (Date on Each Page) CITY OF PALO ALTO – RFQ185983 Form Revised: October 29, 2020 Page 1 of 15 SECTION I – REQUEST FOR QUOTATION (RFQ) AND BIDDER REQUIRED INFORMATION PROJECT TITLE: AS-NEEDED MATERIAL PURCHASE FOR SAND, ROCK AND CUTBACK ASPHALT REQUEST FOR QUOTATION (RFQ) NUMBER: 185983 REBID RFQ DUE: WEDNESDAY, MARCH 8, 2023 by 3:00 P.M. February 8, 2023 Project Overview: The City of Palo Alto’s Public Works Public Services Department and Utilities Department are jointly requesting bids for an up to 3-year contract for the purchase of sand, rock, and cutback asphalt. The City intends to issue a Blanket Purchase Order for the purchase of material on an as-needed basis. The annual contract amount is not to exceed $175K per year. The material will be used to support construction activities performed by City crews. Actual material quantities, based on operational needs, will significantly differ from the bid quantities. Visit City of Palo Alto: www.cityofpaloalto.org Vendor Portal to PlanetBids: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569 Buyer: Philip Mai Philip.Mai@CityofPaloAlto.org (650) 329-2178 Table of Contents SECTION I Request for Quotation and Bidder Required Information* ...............................1-4 Bidder Representation* …...… ............................................................................6 Bidder Information* ...........................................................................................7-8 SECTION II Terms & Conditions of Purchase Order Agreement ......................................... 9-11 SECTION III Specifications and Bidder’s Bid Pages* ..............................................................12-15 The items identified with an asterisk (*) must be filled out, signed by the appropriate representative of the company and returned with submittal. Failure to complete and/or submit these forms may cause rejection of your Bid. Item 32 Attachment A - Bid from Granite Rock Company, RFQ185983 Item 32: Staff Report Pg. 4 Packet Pg. 412 of 911 (Fill in name on each page) (Date on Each Page) CITY OF PALO ALTO – RFQ185983 Form Revised: October 29, 2020 Page 2 of 15 February 8, 2023 In response to this Request for Quotation (RFQ), the undersigned, as Bidder, declares that the only persons or parties interested in this Bid as principals are those named herein; that this Bid is made without collusion with any other person, firm or corporation; that the Bidder has carefully examined the specifications herein referred to; and the Bidder proposes and agrees, if this Bid is accepted, that the Bidder will contract with the City of Palo Alto (City), to provide all necessary materials, and furnish the specified requirements in this RFQ, in the manner herein prescribed and at the prices stated in the Bid. Project Title As-Needed Materials Purchase for Sand, Rock and Cutback Asphalt City of Palo Alto Request for Quotation (RFQ) number: 185983 Quotation Due Date Quotation acceptance period closes at 3:00 PM, Wednesday, March 8, 2023. Your quotation/bids must be received by Purchasing and Contract Administration by this due date/time. Questions and or Clarifications Due Date Deadline for all questions and or clarification inquiries on this RFQ form must be submitted via Planetbids platform, which due date will close at 1:00 pm, Wednesday, February 22, 2023. Buyer Philip Mai Philip.Mai@CityofPaloAlto.org (650) 329-2178 Material Specifications: Material specifications shall be submitted with the bid and comply with the following standards: Sand (initial backfill material for Utility trench backfill) Sand shall conform with Section 19-3.02E(2) of the latest edition of the Caltrans State Standard Specifications and shall be imported clean natural sand, free from clay, salt, sea shells, or organic material, suitable for the purpose intended and shall conform to the following gradation: No. 4 sieve…………….90% - 100% No. 200 sieve…………0% - 5% Dredged sand from San Francisco Bay is NOT acceptable. Class 3 Permeable 1/2" Crushed Rock (initial backfill material for wastewater pipe) 1/2" crushed rock will be designated by nominal size and shall conform to the following gradation when tested in accordance with sections 6 and 68-2.02F(4) of the latest edition of the Caltrans State Standard Specifications Class 3 permeable base: Passing a 1-1/2” sieve………….................100% Item 32 Attachment A - Bid from Granite Rock Company, RFQ185983 Item 32: Staff Report Pg. 5 Packet Pg. 413 of 911 (Fill in name on each page) (Date on Each Page) CITY OF PALO ALTO – RFQ185983 Form Revised: October 29, 2020 Page 3 of 15 Passing a 1” sieve…………………….………….88% - 100% Passing a 3/4” sieve……………………..........52% - 85% Passing a 3/8" sieve...............................15% - 38% Passing a No. 4 sieve..............................0% - 16% Passing a No. 8 sieve..............................0% - 6% This material shall contain at least 75% of the particles having one or more fractured faces. Not over 25% shall be particles showing no such faces. Crushed rock shall meet the test grading requirements of ASTM C 131 test grading B. Class 2 Aggregate Base (3/4”) (subsequent backfill material for all pipes) Class 2 (3/4") will be designated by nominal size, shall conform to the following gradation, and shall meet the requirements of Sections 6 and 26-1.02B of the latest edition of the Caltrans State Standard Specifications: Passing a 1” sieve………………………...........100% Passing a 3/4" sieve................................87% - 100% Passing a No. 4 sieve...............................30% - 65% Passing a No. 30 sieve.............................5% - 35% Passing a No. 200 sieve...........................0% - 12% Asphalt Cutback (3/8”) (Cold/Mix (45CLDMIX)) Asphalt Cutbacks (3/8”) shall meet the requirements found in the latest edition of Caltrans State Standard Specification of Section 93, referred to as “Liquid Asphalts”. Terms of Agreement Intends to issue a pricing agreement for a period up to three (3) years term to purchase Sand, Rock and Asphalt as-needed by the Utilities and Public Works Department. A Blanket Order will be issued annually for the purchase and delivery of Sand, Rock and Asphalt. A City of Palo Alto representative will issue release orders for goods on an as-requested and authorized basis. Based on historical usage the annual expenditures are estimated to be $175,000 per year. The not to exceed amount per year of this agreement as specified is approximate and may increase or decrease during the contract term, and no guarantee is implied that the exact amount will be available for the term of the agreement. The term of the pricing agreement shall be from the date of its full execution by City, and shall expire three (years) from the commencement date, subject to: • Firm fixed price for the initial term of the pricing agreement; • City Council’s approval of each fiscal year budget and appropriation of funds; • The Vendor’s compliance with the terms and conditions as established by this RFQ; • The Vendor’s satisfactory performance, and timely compliance with the requirements of this RFQ; • Firm fixed pricing for the entire term, as set forth herein; • The Vendor’s ability to deliver within a maximum of 5 Days following City’s request; • Payment terms are Net 30 or greater; and • Notwithstanding the foregoing, City may terminate the agreement, with or without cause, by providing ten (10) days written notice. Item 32 Attachment A - Bid from Granite Rock Company, RFQ185983 Item 32: Staff Report Pg. 6 Packet Pg. 414 of 911 (Fill in name on each page) (Date on Each Page) CITY OF PALO ALTO – RFQ185983 Form Revised: October 29, 2020 Page 4 of 15 Contract Award The contract, if awarded, shall be awarded to the lowest responsive and responsible bidder. The lowest bid shall be the lowest total of the bid price quoted on the Bid Schedule. The total price is being used for the purpose of determining the lowest responsible bidder. The City requires a complete quote to be submitted which includes all line items. Purchaser reserves the right to make “no award” and delete from consideration for award any item or part of any item contained in this RFQ. Pursuant to Palo Alto Municipal Code Section 2.30.440(c), a responsible bidder is a Bidder determined by the awarding authority: (1) To have demonstrated the attribute of trustworthiness, and to have the quality, fitness, capacity, experience, and skill to satisfactorily perform the work, or provide the goods and/or services called for in the invitation for bids; (2) To have the ability to perform the contract within the time specified; (3) To have the equipment, facilities and resources of such capacity and location to enable the Bidder to perform the contract; (4) To have the ability to provide, as required, future maintenance, repair, parts and service for the use of goods purchased; (5) To have a record of satisfactory or better performance under prior contracts with the city or others; and (6) To have complied with applicable laws, regulations, policies (including city policies), guidelines and orders governing prior or existing contracts performed by the Bidder. Submittal of Documents All bids shall be submitted electronically through the City’s electronic procurement system, (Planet Bids) at: https://www.planetbids.com/portal/portal.cfm?CompanyID=25569. Bids must be received no later than 3:00 pm, Wednesday, March 8, 2023. The e-procurement system will not accept any bids after the specified close time. Complete, sign, and submit the RFQ/Bidder Information and Bidder Bid Pages with your quotation/bid. Failure to complete and/or submit these forms may cause rejection of your quotation/bid. All quotations/bids must be submitted on these forms. Bid Submittals Bids must be submitted though the City’s electronic procurement system. Bidder must complete line items information, Section 1: Bidder required information form. Section III: Bidder Bid pages, completed in full and signed. In addition, the Bidder shall attach (i.e. upload) the completed and signed Bidder required information form, bidder bid pages and all other documents required in this RFQ (collectively, the “Bidder’s Documents”). The Bidder will ensure that the information the Bidder inputs into the electronic procurement system matches the information on the Bidder’s Documents it uploads to the electronic procurement system. Any conflict or discrepancy will be resolved as provided below (Requirements and Order of Precedence) in this Bid Submittals Section. Requirements and Order of Precedence: In the event of any conflict or discrepancy between any requirements provided in this RFQ (including but not limited to bid submittal requirements) and any requirements that may be stated in the City’s electronic procurement system, the requirements of this RFQ will control. In the event of any conflict or discrepancy between information included on (or omitted from) the Bidder Bid Pages or Bidder’s Documents uploaded to the City’s electronic procurement system and any information inputted into the City’s electronic procurement system, the information included on (or omitted from) the uploaded Bidder Item 32 Attachment A - Bid from Granite Rock Company, RFQ185983 Item 32: Staff Report Pg. 7 Packet Pg. 415 of 911 (Fill in name on each page) (Date on Each Page) CITY OF PALO ALTO – RFQ185983 Form Revised: October 29, 2020 Page 5 of 15 Bid Pages or Bidder’s Documents will control. For clarity, the Bidder’s Documents uploaded into the electronic procurement system constitute a Bidder’s Bid, whereas the information a Bidder inputs into the electronic procurement system is for administrative convenience and will not control over the uploaded Bidder’s Documents in event of a conflict or discrepancy. Addenda/Clarifications Should discrepancies be found in this RFQ or should there be a need to clarify this RFQ, questions or comments regarding this RFQ must be submitted to the City no later than 1:00 p.m., Wednesday, February 22, 2023. Correspondence shall be communicated through the City’s e-procurement system Q&A tab. Responses from the City will be communicated through the City’s e-procurement system to all recipients of this RFQ via addendum. Inquiries received after the date and time stated may not be accepted. All addenda shall become a part of this RFQ and shall be acknowledged on the Bidder’s information form. The City shall not be responsible for nor be bound by any oral instructions, interpretations or explanations issued by the City or its representatives. Delivery Requirements When delivery time is requested in the quote or bid documents, time shall be of the essence; therefore, the quote or bid shall include the delivery date. In some instances, the City may specify only a maximum number of hours/days for delivery requirement as part the criteria to determine the award. The purchase order to be awarded is for a specific quantity purchased at one time. See Section III - Specifications and Bidder pages for the delivery requirements. In the event, that the City receives materials that do not meet the specification outlined in “Section B. Material Specifications”, the City may reject the load/delivery. The rejection of the delivery shall not result in any additional fees to the City. Decision to Reject The City reserves the right to reject any or all quotations (bids), to waive any informalities contained therein, and to select quotations on an item-by-item basis. The City reserves the right to award more than one contract from this solicitation. No quotation may be withdrawn for a period of sixty (60) days following the date of bid opening. The terms and conditions (the provisions) that shall govern any resulting agreement between City and the Lowest Responsible Bidder are contained in this RFQ. No charges of any kind will be allowed unless specifically made part of your quotation and are specified in your response. Rights of the City of Palo Alto This RFQ does not commit the City to enter into a contract, nor does it obligate the City to pay for any costs incurred in preparation and submission of quotation or in anticipation of a contract. Exceptions To the specifications or requirements issued must be itemized and justified in writing and included with proposals or quotations submitted. Documentation Manuals, when applicable, shall be furnished by the Vendor with the shipment or under separate cover. Taxes Quotations shall include all applicable federal, state and local taxes, import duties, commissions or other charges. (Refer to Bidder’s Representation Next Page) Item 32 Attachment A - Bid from Granite Rock Company, RFQ185983 Item 32: Staff Report Pg. 8 Packet Pg. 416 of 911 Item 32 Attachment A - Bid from Granite Rock Company, RFQ185983 Item 32: Staff Report Pg. 9 Packet Pg. 417 of 911 (Fill in name on each page) (Date on Each Page) CITY OF PALO ALTO – RFQ185983 Form Revised: October 29, 2020 Page 7 of 15 BIDDER INFORMATION: Provide the information requested below or indicate “not applicable”, if appropriate: A. Primary Contact Information: B. Bidder’s Company is established as a: Sole Proprietorship Joint Venture Partnership Corporation Date Incorporated: State Incorporated: Date Authorized to do business in California: Other (explain): Name Title C. Have you (or your firm) previously worked for the City of Palo Alto? If “Yes”, provide information below: Yes No D. The Bidder represents that it has not retained a person to solicit or secure a City contract (upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee) except for retention of bona fide employee or bona fide established commercial selling agencies for the purpose of securing business. E. The firm and individuals listed below, certify that: they do not and in the performance of this contract they will not discriminate in employment of any person because of race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person; and further certify that they are in compliance with all Federal, State and local directives and executive orders regarding nondiscrimination in employment Remit to Address, if different Item 32 Attachment A - Bid from Granite Rock Company, RFQ185983 Item 32: Staff Report Pg. 10 Packet Pg. 418 of 911 Item 32 Attachment A - Bid from Granite Rock Company, RFQ185983 Item 32: Staff Report Pg. 11 Packet Pg. 419 of 911 (Fill in name on each page) (Date on Each Page) CITY OF PALO ALTO – RFQ185983 Form Revised: October 29, 2020 Page 12 of 15 SECTION III – SPECIFICATIONS AND BIDDER’S BID PAGES SPECIFICATIONS A. Project Overview: The City of Palo Alto Utilities Department requests bids for an up to 3-year contract for purchase of sand, rock, and cutback asphalt. The City intends to issue a Blanket Purchase Order for the purchase of material on an as-needed basis. The annual contract amount is not to exceed $175K per year. The material will be used to support construction activities performed by City crews. Actual material quantities, based on operational needs, will significantly differ from the bid quantities. B. Material Specifications: Material specifications shall be submitted with the bid and comply with the following standards: 1. Sand (initial backfill material for water and gas pipes) Sand shall conform with Section 19-3.02E(2) of the latest edition of the Caltrans State Standard Specifications and shall be imported clean natural sand, free from clay, salt, sea shells, or organic material, suitable for the purpose intended and shall conform to the following gradation: No. 4 sieve…………… 90% - 100% No. 200 sieve………… 0% - 5% Dredged sand from San Francisco Bay is NOT acceptable. 2. Class 3 Permeable 1/2" Crushed Rock (initial backfill material for wastewater pipe) 1/2" crushed rock will be designated by nominal size and shall conform to the following gradation when tested in accordance with sections 6 and 68-2.02F(4) of the latest edition of the Caltrans State Standard Specifications Class 3 permeable base: Passing a 1-1/2” sieve………….............................................. 100% Passing a 1” sieve…………………….……………………………………… 88% - 100% Passing a 3/4” sieve……………………...................................... 52% - 85% Passing a 3/8" sieve............................................................ 15% - 38% Passing a No. 4 sieve........................................................... 0% - 16% Passing a No. 8 sieve........................................................... 0% - 6% This material shall contain at least 75% of the particles having one or more fractured faces. Not over 25% shall be particles showing no such faces. Crushed rock shall meet the test grading requirements of ASTM C 131 test grading B. Item 32 Attachment A - Bid from Granite Rock Company, RFQ185983 Item 32: Staff Report Pg. 12 Packet Pg. 420 of 911 (Fill in name on each page) (Date on Each Page) CITY OF PALO ALTO – RFQ185983 Form Revised: October 29, 2020 Page 13 of 15 3. Class 2 Aggregate Base (3/4”) (subsequent backfill material for all pipes) Class 2 (3/4") will be designated by nominal size, shall conform to the following gradation, and shall meet the requirements of Sections 6 and 26-1.02B of the latest edition of the Caltrans State Standard Specifications: Passing a 1” sieve……………………….......................................100% Passing a 3/4" sieve.............................................................87% - 100% Passing a No. 4 sieve............................................................30% - 65% Passing a No. 30 sieve..........................................................5% - 35% Passing a No. 200 sieve........................................................0% - 12% 4. Asphalt Cutback (3/8”) (Cold/Mix (45CLDMIX) Asphalt Cutbacks (3/8”) shall meet the requirements found in the latest edition of Caltrans State Standard Specification of Section 93, referred to as “Liquid Asphalts”. C. Delivery: All material shall be delivered to the City of Palo Alto Municipal Service Center bunkers within five (5) business days of each work request. Prices quoted for deliveries shall remain firm for each period listed and shall include all applicable fees, transportation, delivery charges, and all other incidentals as necessary to perform the requirements of this RFQ. Pricing shall also include an allowance for fuel price increase during the contract. Requests for price adjustment during the contract period will not be allowed. In the event, that the City receives materials that do not meet the specification outlined in “Section B. Material Specifications”, the City may reject the load/delivery. The rejection of the delivery shall not result in any additional fees to the City. Delivery point: City of Palo Alto Municipal Service Center (MSC) 3201 E. Bayshore Road Palo Alto, CA 94303 D. Progress Payment: City of Palo Alto’s Payment terms for this contract will be Net 30. The supplier shall submit monthly invoices for actual quantities purchased. (Refer to Bidder’s Bid Pages Next Page) Item 32 Attachment A - Bid from Granite Rock Company, RFQ185983 Item 32: Staff Report Pg. 13 Packet Pg. 421 of 911 (Fill in name on each page) (Date on Each Page) CITY OF PALO ALTO – RFQ185983 Form Revised: October 29, 2020 Page 14 of 15 BIDDER’S BID PAGES Bidder’s Response and Acceptance In response to this Request for Quotations (RFQ), the undersigned, as Bidder, declares that the only persons or parties interested in this Bid as principals are those named herein; that this Bid is made without collusion with any other person, firm or corporation; that the Bidder has carefully examined the specifications herein referred to; and the Bidder proposes and agrees, if this Bid is accepted, that the Bidder will contract with the City of Palo Alto (City), to provide all necessary materials, and furnish the specified requirements in this RFQ, in the manner herein prescribed and at the prices stated. Project Title: As-Needed Material Purchase for Sand, Rock and Asphalt Request for Quotations (RFQ) No. 185983 Quotation Due Date: 3:00 P.M., WEDNESDAY, MARCH 8, 2023 BID SCHEDULE: A: Base Bid – Year 1: BID ITEM APPROXQ TY. UNIT (EACH BID ITEM SHALL INCLUDE ALL APPLICABLE TAXES, PROFIT, INSURANCE, UNIT PRICE TOTAL ITEM PRICE 1 2,000 Ton $ $ Base Bid - Year 1 Total (items 1 through 4) (Total in words:__________________________________________________) $ B: Additive Alternate Bid – Year 2: BID ITEM APPROXQ TY. UNIT (EACH BID ITEM SHALL INCLUDE ALL APPLICABLE TAXES, PROFIT, INSURANCE, UNIT PRICE TOTAL ITEM PRICE 5 2,000 Ton $ $ Additive Alternate Bid - Year 2 Total (items 5 through 8) (Total in words:__________________________________________________) $ Item 32 Attachment A - Bid from Granite Rock Company, RFQ185983 Item 32: Staff Report Pg. 14 Packet Pg. 422 of 911 (Fill in name on each page) (Date on Each Page) CITY OF PALO ALTO – RFQ185983 Form Revised: October 29, 2020 Page 15 of 15 BIDDER (Company Name): Date: C: Additive Alternate Bid – Year 3: BID ITEM APPROXQ TY. UNIT (EACH BID ITEM SHALL INCLUDE ALL APPLICABLE TAXES, PROFIT, INSURANCE, UNIT PRICE TOTAL ITEM PRICE 9 2,000 Ton $ $ Additive Alternate Bid - Year 3 Total (items 9 through 12) (Total in words:__________________________________________________) $ Base Bid – Year 1 Total (items 1 through 4)………………………………………. $____________________ A. Additive Alternate Bid – Year 2 Total (items 5 through 8)…………….. $____________________ B. Additive Alternate Bid – Year 3 Total (items 9 through 12)…………… $____________________ GRAND TOTAL (items 1 through 12)………………………………………………. $____________________ LOWEST RESPONSIBLE BIDDER The lowest bid shall be the lowest Grand Total of the bid prices on the entire contract. This total is being used for the purpose of determining the lowest responsible bidder. QUANTITIES: Material quantities as specified are approximate and no guarantee is implied that the exact amount will be purchased. CONTRACTOR LICENSE NUMBER: ____________________________ DIR NUMBER: __________________________ Signature must be the same as signature(s) in Section I – Request for Quotation and Bidder Required Information. Signature: _______________________________________________ (Signature) _______________________________________________ (Print name) Item 32 Attachment A - Bid from Granite Rock Company, RFQ185983 Item 32: Staff Report Pg. 15 Packet Pg. 423 of 911 2 0 7 4 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Administrative Services Meeting Date: June 19, 2023 Report #:2304-1337 TITLE Approval of Contract No. C23187298A with MuniServices, LLC for Tax and Fee Consulting Services in a Total Not-To-Exceed Amount of $1,161,550 Over a Five-Year Term and Contract No. C23187298B with HdL Coren & Cone for Property Tax Consulting Services in a Total Not-To- Exceed Amount of $111,800 Over a Five-Year Term; CEQA Status – Not a Project RECOMMENDATION Staff recommends that the City Council: 1. Approve and authorize the City Manager or his designee to execute the attached contract with MuniServices, LLC (Attachment A, Contract No. C23187298A) in an amount not-to-exceed $1,161,550 for tax and fee program administration, fee payment collection and reporting services over a five-year term, 2. Approve and authorize the City Manager or his designee to execute the attached contract with HdL Coren and Cone (Attachment B, Contract No. C23187298B) in an amount not-to-exceed $111,800 for property tax analysis and reporting services over a five-year term. EXECUTIVE SUMMARY A Request for Proposal (RFP) for tax and fee consulting services was issued in Spring 2023. The RFP solicited proposals for support administration, reporting, and auditing of certain taxes and to also implement the City’s new Business Tax (BT), as passed by the voters in November 2022. Staff received proposals from three consulting firms for the following services: 1. Sales tax analysis, information, and reporting services 2. Administration, reporting, and audit services for: a. Business Tax (BT) b. Business Registry Certificate Program (BRC) c. Business Improvement District fees (BID) d. Transient Occupancy Tax (TOT) Item 33 Item 33 Staff Report Item 33: Staff Report Pg. 1 Packet Pg. 424 of 911 2 0 7 4 e.Telephone Users Tax (TUT) 3.Property tax analysis, information, and reporting services The three proposals were evaluated based on criteria outlined in the RFP. Staff recommends awarding services to two of the three consulting firms that submitted proposals: MuniServices, LLC for services described in one and two listed above. Staff recommends awarding property tax analysis to HdL Coren & Cone (HdL CC) (task three listed above). Completion and recommended selection of consulting resources to administer the new Business Tax was a key variable in determining staffing resource needs to administer this new revenue. With the completion and recommended selection of a service provider, staff also recommends approval of funding for the equivalent of two positions (2.0 FTE) to support the administration of the new tax in collaboration with the consulting support. Resources to fund consulting services and internal staff resources are included in the June 19, 2023 City Manager Report, Adoption of the FY 2024 Operating and Capital Budgets staff report (CMR 2303-1162). BACKGROUND MuniServices is the current consultant for sales and use tax audit and information services and BRC, BID, TOT and TUT administration, report, and audit services. The firm was selected based on a competitive solicitation process conducted in 2019 and agreements were approved by Council on December 2, 20191. The existing contract with MuniServices expires December 2, 2024, however staff issued the RFP in advance acknowledging implementation of the BT will begin summer 2023 for the first collection in January 2024. Property tax analysis and reporting services is currently performed by HdL CC, who was the only firm to submit a proposal for these services. The initial contract with HdL CC began in 2019 and was recently extended2 to continue services during the timeframe the RFP was issued. HdL CC has provided valuable information and insight beyond reports provided by the County that assists staff with forecasting property tax and documentary transfer tax revenues. Below are brief descriptions of the analysis, reporting, and tax administrative services provided: Sales and Use Tax Analysis, Information, and Reporting Services: Quarterly sales and use tax reports from the City’s sales tax consultant provide revenue projections that are used regular revenue monitoring activities, the City’s Long Range Financial Forecast (LRFF), and in the City’s annual budget process. Briefings and analysis from the sales tax consultant include information from the California Department of Tax and Fee Administration (CDTFA), the state agency that administers sales and use tax, of sales and use tax revenue performance; top revenue producers by economic segment and/or geographical area; trend analysis; revenue projections; 1 City Council, December 2, 2019, Item #4: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/reports/city-manager-reports-cmrs/year-archive/2019/10493.pdf?t=61629.45 2 City Council, April 10, 2023, Item #6: https://recordsportal.paloalto.gov/Weblink/DocView.aspx ?id=82343 Item 33 Item 33 Staff Report Item 33: Staff Report Pg. 2 Packet Pg. 425 of 911 2 0 7 4 identification of major businesses that influence change in the City’s tax revenue; and an analysis of potential growth or decline shifts in local, state, and national economy; and legislature related to sales and use tax. In addition, sales and use tax audit and discovery efforts are included in this package of services; approximately $0.5 million in sales tax revenue has been recovered since 2019. Tax and Fee Administration, Reporting and Audit Services (BT, BRC, BID, TOT, and TUT): These services assist with streamline the administration and collection of taxes and assessment fees. Collection, reporting, and payment remittance for these taxes and fees are done online through the City’s website. This contract includes audit and discovery to achieve improved assurance that these taxes and fees are accurate and complete. The scope, work plan, and fees for these services, which includes up front costs for configuration and roll out of the new BT, can be found in the attached draft contract. Property Tax Analysis, Information, and Reporting Services: Information provided by the City’s property tax consultant is used with data provided by the County of Santa Clara to provide insight into real estate activity occurring in the City. Additional informational reports can be provided on an ad hoc basis to support special projects or requests. Examples of such reporting needs include parcel tax or general obligation (GO) bond modeling; LRFF development; the annual budget process; and other special projects in the Treasury, Debt, and Investments Division. Parcel information used for the BT is a recent example of a special project. ANALYSIS Procurement Process An RFP was issued on February 9, 2023 for tax and fee consulting services and was structured to allow award to multiple firms. Proposals were due by March 2nd and the City received three proposals. Table 1 outlines a summary of the RFP process: Table #1: Summary of Request for Proposal3 3 Tax and Fee Consulting Services Request for Proposal posted on PlanetBids: https://pbsystem.planetbids.com/portal/25569/bo/bo-detail/102065 Item 33 Item 33 Staff Report Item 33: Staff Report Pg. 3 Packet Pg. 426 of 911 2 0 7 4 Table #1: Summary of Request for Proposal3 Proposal Price Range $111,800 to $1,292,300 Public Link to Solicitation https://pbsystem.planetbids.com/portal/25569 /bo/bo-detail/1020654 A committee was formed that included staff from the Treasury Division and Revenue Collections Divisions in ASD, the Information Technology Department and the City Manager's Office to evaluate the three proposals submitted to the City, based on criteria outlined in the RFP. Proposals were first evaluated and then an interview and demonstration of each firms platform was conducted. The heaviest weighed criteria were quality of the proposal, effectiveness of services and website portal, and firm experience. Based on the evaluation committee review, MuniServices and HdL CC were selected. Both MuniServices and HdL CC were the firms who submitted the lowest cost proposals for the services offered by the firm. Table 2 compares fees for the new contract and previous contract with MuniServices; changes are noted in bold/italic. The new five-year contract with Avenu totals $1,161,550 (includes $50,000 of additional services), a $461,550 increase compared to the previous contract, driven primarily by fees for collection and administration of the business tax. The one-time set up fee for the business tax is $30,000. Ongoing costs will be an annual flat fee of $10,000, with a $13 per participant annual fee (increased annually by CPI). The per participant cost over five years totals $668,050, which ranges between $120,000 and $147,000 annually, assuming the maximum 5% CPI adjustment. Estimated generated revenue for the business tax assumed 1,210 commercial properties in the City. There are approximately 1,600 businesses in the BRC and approximately 7,000 sales tax payors. The annual participant cost was calculated assuming 9,300 business tax and fee participants within the City (25% above the number of sales tax payors) to account for business that are subject to the business tax but do not pay sales tax. This count of businesses will be refined after the first year of collection. 4 PlanetBids, RFP 187298 – Tax and Fee Consulting Services: https://pbsystem.planetbids.com/portal/25569/bo/bo-detail/102065 Table #2: MuniServices Comparison of Previous and New Contract TAX AREA SERVICE PREVIOUS NEW Collection & Administration $12/initial registry; $3.75 filing per transaction BT Set-up fee: $30,000 Annual flat fee: $10,000 Annual $13/participant fee BU S I N E S S TA X & F E E S Discovery and Audit (if City elects) Discovery: 35% contingency; if City decides to waive collection, MuniServices shall be entitled to ½ of the fee for the waived portion of the deficiency. Discovery: Minimum annual fee: $7,500 35% contingency Audit: $100/hour Item 33 Item 33 Staff Report Item 33: Staff Report Pg. 4 Packet Pg. 427 of 911 2 0 7 4 Staff Resources Modifying the BRC portal for the business tax is planned for summer 2023, in anticipation that the portal will be available for taxpayers to register in fall 2023. The implementation calendar can be found on the City’s website5. Collection and administration of the business tax portal will be done by MuniServices, however staff resources are required to manage the program. These functions include overseeing collection, reporting, and auditing functions performed by the consultant; in-house tax administrator support (as defined by the business tax ordinance); tax analysis and review beyond the consultant’s scope of work; and customer service and support for the City’s business community. Staff recommends the addition of one full-time Management Analyst position and one full-time Accounting Specialist (approximately $186,000 and $124,000 ongoing salary and benefit costs, respectively), totaling $310,000. Staff recommends that the salary and benefit costs totaling $232,500 be added to the FY 2024 Adopted Budget. A formal action to adjust the Table of Organization will be forth coming in a future budget process as staff continue to assess needs through the implementation process versus ongoing administration. Adjustments to the FY 2024 budget for staff resources is included the budget adoption staff report, presented to City Council on June 19, 2023 (CMR 2303-1162). FISCAL/RESOURCE IMPACT During the development of the business tax, preliminary administrative cost estimates ranged between $0.5 million to $1.0 million. As noted in the FY 2024 Proposed Operating Budget 5 www.cityofpaloalto.org/businesstax Reporting Services $4,000 annually $4,000 annually SA L E S & US E T A X Audit & Discovery 15% contingency 15% contingency Collection & Administration $150/lodging property annually; One-time set up: $2,500 $150/lodging property annually TO T Audit Analysis phases total $54,000; 30% contingency fee, with on-site auditing services Analysis phases total $40,000 Collection & Administration $2.95 filing per transaction One-time set up: $1,000 $2.95 filing per transaction TU T Compliance 30% contingency fee 30% contingency fee Item 33 Item 33 Staff Report Item 33: Staff Report Pg. 5 Packet Pg. 428 of 911 2 0 7 4 Transmittal Letter, Attachment C6, recommended resources were reviewed and staff presents both revenues and resource needs via this report. The attached contract with MuniServices results in economies of scale from integrating three programs (business registry, business improvement district, and business tax) into one platform. The cost to implement and begin collection of the business tax is estimated at $409,400 ($176,900 in consultant costs and $232,500 in staff costs). These administrative costs are partially offset by $50,000 already included in ASD’s budget for BRC collection and administration; the net total appropriation is $359,400. Business tax revenue, net of administrative expense, will be allocated each year as part of the City Council’s annual budgeting process, per the Advisory Spending Guidelines for Business Tax Proceeds that were adopted by Council on August 22, 20227. The remainder of the consultant services (sales tax, TOT, TUT, and property tax services) are included in the ASD budget. Staff recommends adding two full time positions to support the business tax program, totaling $310,000 in estimated ongoing costs. The $232,500 net appropriation assumes approximately three months recruitment time. In FY 2024 overstrength staff will be funded through this recommended action. Staffing adjustments to the Table of Organization will be formalized as part of the budget process. STAKEHOLDER ENGAGEMENT Staff worked closely with staff from ASD and the City Manager’s Office to evaluate and select the two firms and recommended contract award for these services. ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378(b)(4) (government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment). ATTACHMENTS Attachment A: Contract No. C23187298A with MuniServices, LLC for Tax and Fee Consulting Services 6 City of Palo Alto FY 2024 Proposed Operating Budget, p. XXXIV: https://www.cityofpaloalto.org/files/assets/public/administrative-services/city-budgets/fy-2024-city- budget/proposed/city-of-palo-alto-proposed-operating-budget_final.pdf#page=35 7 City Council, August 22, 2022, Item #AA1: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes- reports/agendas-minutes/city-council-agendas-minutes/2022/20220822/20220822pccsm-amended-redacted- linked.pdf#page=313 Item 33 Item 33 Staff Report Item 33: Staff Report Pg. 6 Packet Pg. 429 of 911 2 0 7 4 Attachment B: Contract No. C23187298B with HdL Coren & Cone for Property Tax Consulting Services APPROVED BY: Kiely Nose, Assistant City Manager Item 33 Item 33 Staff Report Item 33: Staff Report Pg. 7 Packet Pg. 430 of 911 Professional Services Rev. Dec.15, 2020 Page 1 of 58 CITY OF PALO ALTO CONTRACT NO. C23187298A AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND MUNISERVICES, LLC This Agreement for Professional Services (this “Agreement”) is entered into as of the 19th day of June 2023 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and MUNISERVICES, LLC, a Delaware limited liability company, located at 5860 Trinity Parkway, Suite 120, Centreville, VA 20120 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY seeks Tax Analysis, Reporting, and Collection services for various City taxes (the “Project”) and desires to engage a consultant such services in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through March 31, 2028 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 8 Packet Pg. 431 of 911 Professional Services Rev. Dec.15, 2020 Page 2 of 58 Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Million One Hundred Eleven Thousand Five Hundred Fifty Dollars ($1,111,550.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.) In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of Fifty Thousand Dollars ($50,000.00) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed One Million One Hundred Sixty-One Thousand Five Hundred Fifty Dollars ($1,161,550.00), as detailed in Exhibit C. “Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 9 Packet Pg. 432 of 911 Professional Services Rev. Dec.15, 2020 Page 3 of 58 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 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more, CONSULTANT shall make DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 10 Packet Pg. 433 of 911 Professional Services Rev. Dec.15, 2020 Page 4 of 58 recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING. Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are: CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 11 Packet Pg. 434 of 911 Professional Services Rev. Dec.15, 2020 Page 5 of 58 compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Tanmin Rima, Client Success Manager, email tanmin.rima@avenuinsights.com as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY’s Project Manager is Josie Stokes, Administrative Services Department, Revenue Collections Division, 250 Hamilton Avenue, Palo Alto, CA 94301, Telephone: 650-329-2291. Email: josie.stokes@cityofpaloalto.org. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services. SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 12 Packet Pg. 435 of 911 Professional Services Rev. Dec.15, 2020 Page 6 of 58 SECTION 16. INDEMNITY. [Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT’s proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction. [Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 13 Packet Pg. 436 of 911 Professional Services Rev. Dec.15, 2020 Page 7 of 58 SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 14 Packet Pg. 437 of 911 Professional Services Rev. Dec.15, 2020 Page 8 of 58 19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 15 Packet Pg. 438 of 911 Professional Services Rev. Dec.15, 2020 Page 9 of 58 CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises. 21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 16 Packet Pg. 439 of 911 Professional Services Rev. Dec.15, 2020 Page 10 of 58 greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. 26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract: (1) is not a public works contract; (2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j). OR 26.1. This Project is subject to prevailing wages and related requirements as a “public works” under California Labor Code Sections 1720 et seq. and related regulations. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 17 Packet Pg. 440 of 911 Professional Services Rev. Dec.15, 2020 Page 11 of 58 CONSULTANT is required to pay general prevailing wages as defined in California Labor Code Section 1773.1 and Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq., as amended from time to time. Pursuant to Labor Code Section 1773, the CITY has obtained the general prevailing rate of per diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of worker needed to execute the contract for this Project from the State of California Department of Industrial Relations (“DIR”). Copies of these rates may be obtained at the CITY’s Purchasing Department office. The general prevailing wage rates are also available at the DIR, Division of Labor Statistics and Research, web site (see e.g. http://www.dir.ca.gov/DLSR/PWD/index.htm) as amended from time to time. CONSULTANT shall post a copy of the general prevailing wage rates at all Project job sites and shall pay the adopted prevailing wage rates as a minimum. CONSULTANT shall comply with all applicable provisions of Division 2, Part 7, Chapter 1 of the California Labor Code (Labor Code Section 1720 et seq.), including but not limited to Sections 1725.5, 1771, 1771.1, 1771.4, 1773.2, 1774, 1775, 1776, 1777.5, 1782, 1810, 1813 and 1815, and all applicable implementing regulations, including but not limited to Subchapter 3, Title 8 of the California Code of Regulations Section 16000 et seq. (8 CCR Section 16000 et seq.), as amended from time to time. CONSULTANT shall comply with the requirements of Exhibit E, entitled “DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS”, for any contract for public works construction, alteration, demolition, repair or maintenance, including but not limited to the obligations to register with, and furnish certified payroll records directly to, DIR. SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. This Project is a 9204 Public Works Project and is required to comply with the claims procedures set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. OR This Project is not a 9204 Public Works Project. SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 18 Packet Pg. 441 of 911 Professional Services Rev. Dec.15, 2020 Page 12 of 58 employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement. 28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 19 Packet Pg. 442 of 911 Professional Services Rev. Dec.15, 2020 Page 13 of 58 29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time. 29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. 29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 20 Packet Pg. 443 of 911 Professional Services Rev. Dec.15, 2020 Page 14 of 58 EXHIBIT A: SCOPE OF SERVICES EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER EXHIBIT B: SCHEDULE OF PERFORMANCE EXHIBIT C: COMPENSATION EXHIBIT C-1: SCHEDULE OF RATES EXHIBIT D: INSURANCE REQUIREMENTS EXHIBIT E: INFORMATION PRIVACY POLICY EXHIBIT F: CYBERSECURITY TERMS AND CONDITIONS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 21 Packet Pg. 444 of 911 Professional Services Rev. Dec.15, 2020 Page 15 of 58 CONTRACT No. C23187298A SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: __________________________ City Attorney or Designee MUNISERVICES, LLC Officer 1 By:___________________________ Name:_________________________ Title:__________________________ Officer 2 By:____________________________ Name:__________________________ Title:___________________________ DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Paul Colangelo, Chief Executive Officer CEO CFO Carl Kumpf, Chief Financial Officer Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 22 Packet Pg. 445 of 911 Professional Services Rev. Dec.15, 2020 Page 16 of 58 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. Task 1: Business Fee and Collection Services CONSULTANT will provide fee collection services for the Business Tax, Business Registry Certificate and Business Improvement District programs. CONSULTANT will conduct research and ensure the City’s database of businesses is accurate and reliable. In addition, the CONSULTANT will communicate directly with business on behalf of the City and provide the City additional support, program customization and consulting services if requested to do so by the City. Requirements 1) Database verification and management a) Review the CITY’s existing database of businesses processes and update using external sources such as, but not limited to, CONSULTANT’s proprietary database sources, the State of California Sales Tax data, Santa Clara County Real Property data, Dun & Bradstreet, and InfoUSA. b) CITY will provide CONSULTANT the database in various formats and CONSULTANT will standardize the data for use for in administration and collections of fees. c) Cross reference data and check for duplicates possibly due name used, DBA and or address. CITY may require data to include Federal Employer Identification Number (FEIN) and NAICS code to be collected. d) Ensure all application data fields completed correctly prior to data transfer to the CITY in an acceptable data format. 2) Administration & Collections a) Have experience and capabilities to process new business payments, renewals, delinquent payments and ongoing monitoring and administration of CITY’s fees as described in the CITY’s municipal code, ordinances, policies and program procedure manuals. b) Provide businesses with ability to pay online or by mail. c) Draft correspondences for mailings and maintain website portal for payments. i) Collections for the Business Tax are quarterly ii) Business Registry Certificate fees will occur annually and begin by March 1 d) Hold funds, make monthly ACH transfer to the CITY and provide transfer logs with details of payment by business. 3) Customer Service a) Develop an outreach plan for the business community that outlines tax characteristics, provides instructions for payment, and provide ongoing customer support to businesses. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 23 Packet Pg. 446 of 911 Professional Services Rev. Dec.15, 2020 Page 17 of 58 b) Lead communication with businesses through phone and email and manage all account communications including general questions, account inquiries, application questions and issue resolutions. c) Be available through a toll-free telephone line Monday through Friday, 8:00AM to 5:00PM Pacific Time. d) Respond to business correspondence via return phone call or written correspondence within 24 hours. e) Standard correspondence templates will be drafted by the CONSULTANT and must be approved by the CITY. f) Maintain communications with CITY staff to communicate project activity and any issues. g) Promptly respond to CITY staff regarding any questions or issues within 24 hours. 4) Data Analytics a) Maintain and update an online portal with lookup tools so that CITY staff can review business information and revenue data. b) Database shall have capabilities to generate reports for analysis and ability for CONSULTANT and/or CITY to create custom reports as described by the CITY and provide within three business days. Business Tax, Business Registry Certificate, and Business Improvement District Discovery Services 1) Preparation. CONSULTANT’S initial steps are to understand City’s processes and requirements, obtain data from both City and external sources, and standardize the data for use in CONSULTANT’S proprietary database. The standardization process shall be completed by trained professionals who merge City provided and external source data. The data shall be cross referenced and checked for possible duplicates due name used, DBA and or address. CONSULTANT shall also integrate the data, generate correspondence and forms, and modify CONSULTANT’s online-hosted SaaS Compliance Administration system to calculate delinquent fees. The result shall be an inventory of the compliant and non-compliant entities operating in City. The City shall provide CONSULTANT with the following information to begin Discovery: a) City’s BRC and BID account data in electronic format along with the payment history of all registered businesses b) Database files such as commercial utility billing records and a copy of City-preferred vendors c) The business fee and business and occupation application forms d) Other documentation required as a prerequisite to the issuing of a certificate 2) Testing. To test CONSULTANT’S processes developed during preparation, CONSULTANT shall begin with mailing a sample of business accounts to ensure addresses, recipients and other data points are accurate prior to bulk notifications. CONSULTANT will submit sample account statements, so City can validate fee calculations and classifications prior to sending DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 24 Packet Pg. 447 of 911 Professional Services Rev. Dec.15, 2020 Page 18 of 58 out invoices. CONSULTANT shall also validate the payment posting and application processing procedures. 3) Execution. CONSULTANT shall notify and register non-compliant businesses through bulk mailings, and CONSULTANT shall modify the timing as new milestones are added. Business Tax and Fee Administration CONSULTANT shall provide City with a full-service turnkey Business Tax, Business Registry Certificate and Business Improvement District Fee program related to the City’s business payment processing, renewals, collections, and ongoing monitoring and administration of City’s fees and follow City’s municipal code, ordinances, policies and program procedure manuals. The service will be performed utilizing CONSULTANT’S internal programs and processes. At a minimum, the service will include the following which are described more fully in the sections below: • New application processing – including review and verification of applications and application data, establishing processes for established departmental prerequisites to licensure; • Annual renewal application processing – including mailing of renewal applications and processing of completed renewal applications; and generating BRC certificates; • Business Improvement District fee processing – as City’s direction is to now collect this fee at the same time of the Business Registration fee, CONSULTANT will include the fee processing in with those registrants who need to complete both payments; • Business account follow-up – for businesses that do not return their annual renewal application, CONSULTANT will send two additional notices and make one follow up phone call. To the extent these efforts do not result in compliance, the account will be handled under CONSULTANT’S Discovery Service. New Account Processing The new application processing will include a review and verification of applications and application data, establishing processes for established departmental prerequisites for a certificate to be issued. Included in the administration project setup will be review of City’s current new application process for mutually agreed upon liaisons and modification if necessary. Renewal Processing CONSULTANT shall provide a service customization to assist with new business and renewal “walk-ins”. The annual renewal application processing will include mailing of renewal applications and processing of completed renewal applications; and generating BRC. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 25 Packet Pg. 448 of 911 Professional Services Rev. Dec.15, 2020 Page 19 of 58 As a follow up for accounts that do not return their annual renewal application, CONSULTANT shall send two additional notices and make one follow up phone call. Any accounts who do not remit payment by this point will be referred to CONSULTANT’S Discovery Services to ensure they are indeed still in business and follow up with additional notices if applicable. If collection attempts are still not successful at this point, the remaining list will be turned over to City for final enforcement authority by City determined processes. Collecting, Posting and Processing Payments • Collection of BT/BRC/BID fees: For both new and renewals with timely remittance or deposit on behalf of City; • Monthly detail reporting of payments received: Including monthly reconciliation of payments received to payments remitted or deposited on behalf of City. Credit Card payment processing will be accepted pursuant to City approval. CONSULTANT and City will work together to determine the best method for processing credit card payments; • Business compliance: For businesses who do not remit payment with their application or whose check is not honored by the bank (NSF check), CONSULTANT will send additional notices and follow up phone calls. Business Community and City Staff Communications Communications with Business Accounts CONSULTANT will handle all account communications including general questions, account inquiries, BT/BRC/BID application questions and issue resolution. CONSULTANT’S National Call Center will be available through a toll-free telephone line Monday through Friday, 7:00AM to 5:00PM Pacific Time. CONSULTANT will respond to business correspondence via return phone call or written correspondence. All standard correspondence templates will be subject to CITY approval. Client Communications CONSULTANT will maintain regular and close communications with City staff to communicate project activity and any issues. CONSULTANT will provide prompt responses to City staff regarding any questions or issues. City will have the right, at City’s option, to elect not to proceed with recovery of any identified deficiencies. Deficiencies which are uncollectible due to insolvency or dissolution of the entity liable, or for deficiencies which are otherwise incapable of collection (e.g. statute of limitations expiration or other legal defense) will not be considered an “election” by City for the purposes of the Agreement. For deficiencies otherwise collectable but for which City elects not to collect, City will notify CONSULTANT of its election not to pursue (“waive”) collection of said deficiencies. CONSULTANT will be entitled to one-half (½) of the fee CONSULTANT would have been entitled to for the waived portion of the deficiency. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 26 Packet Pg. 449 of 911 Professional Services Rev. Dec.15, 2020 Page 20 of 58 Online-hosted SaaS Filing and Payment Processing CONSULTANT has successfully implemented and continues to support CONSULTANT’S online file-and-pay option for over 135 of CONSULTANT’S clients and have found that online BT/BRC/BID filing, and payment is the most convenient option for most businesses, and results in expedited filing and payment throughput for CONSULTANT’S clients. CONSULTANT’S online-hosted SaaS system seamlessly handles the basic processing steps in the filing process: • Applicants’ filings and payments are entered using secure website. • Online payments are recorded in CONSULTANT’S online-hosted SaaS system. • Automatic reconciliation between payment and application. Typically, the process takes most applicants no more than five minutes from start to finish. The same portal enables businesses to update their account information, correspond with CONSULTANT specialists, view their previously filed returns that were submitted through the online filing website and receive assistance for their BT/BRC/BID questions. CONSULTANT shall encourage businesses to utilize CONSULTANT’S online file-and-pay option by providing 24/7 access to a secure web-based portal. Reporting CONSULTANT’S online-hosted SaaS reporting system shall allow City to access reports and business information whenever City shall require it. Here is a sample list of the reports available online: • New Account Listing • Transfer and Distribution Report • Daily, Weekly and Monthly Reconciliation Reports • Detailed Payment History Reports • Top Remitters Reports • BRC Issued Report • BRC Certificates on Hold Report • Business Search Tool In addition to the collection of reports and business lookup tool available online, CONSULTANT shall have a large collection of reports available for electronic transfer. These reports originated from internal analysis or clients suggesting new analysis formats. CITY will have access to any new reports or features on the online system as soon as they are implemented. All of CONSULTANT’S clients benefit from the ideas and suggestions of CONSULTANT’S other clients. Support Services DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 27 Packet Pg. 450 of 911 Professional Services Rev. Dec.15, 2020 Page 21 of 58 Government Relations/Legislative and Policy Updates/Advocacy. CONSULTANT’S product and service offerings are complemented by a dedicated Government Relations team that provides local government advocacy, policy, regulatory and legislative consulting support and expertise. CONSULTANT has a proven track record of surfacing and successfully resolving numerous issues that have resulted in the preservation and expansion of the tax base for its clients. CONSULTANT’S Government Relations Team is located in the League of California Cities building in Sacramento which provides opportunities for firsthand collaboration on a daily basis with the advocacy groups that support California cities. CONSULTANT’S overall Government Relations program brings tremendous value to the client and is a natural progression in the successful determination of revenue preservation and enhancement; and for which no consulting fee is charged to CITY for the associated policy, regulatory, and legislative support. Industry Partner. CONSULTANT is a proud partner and supporter of industry organizations dedicated to local government. CONSULTANT’S firm is a long-standing associate member and local government business partner for industry organizations including the League of California Cities, the California Municipal Revenue Tax Association and California Society of Municipal Finance Officers. CONSULTANT is the sole Business Council Member of the United States Conference of Mayors (USCM) that provides local government revenue enhancement, information and consulting services. CONSULTANT’S Business Tax Compliance and Discovery Program was featured in the USCM’s 2016 Mayors Business Council Best Practices. Each member of CONSULTANT’S team shares the common goal with these organizations – strengthening local government. CONSULTANT’S team members are invested in their communities and in local government. CONSULTANT makes the necessary investment into its team to ensure active involvement with industry organizations throughout the country. CONSULTANT’S experts regularly present as conference speakers, participate as exhibitors and sponsors, and participate in policy development. The Services, where provided by CONSULTANT’s online-hosted SaaS, include all related services and support necessary to implement the Services detailed in this Scope of Services, including, for example and without limitation, data/content migration, software licensing, online- hosting, maintenance, updates, upgrades, security, and technical and user support as detailed in this Scope of Services and elsewhere in this Agreement, in CONSULTANT’s proposal, and in the Documentation. Task 2: Sales and Use Tax Audit and Information Services CONSULTANT will provide sales and use tax audit and information services. This will include identifying and ensuring City receipt of misallocated or underreported tax revenues. Revenue reporting services will include written reports and periodic briefings concerning revenue performance, trend analysis, gains and declines, revenue projections, enhanced recovery options, and, if appropriate, an analysis of present and future issues related to revenue recovery. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 28 Packet Pg. 451 of 911 Professional Services Rev. Dec.15, 2020 Page 22 of 58 Requirements 1) Verify California Department of Tax and Fee Administration (CDTFA) quarterly sales and use tax allocations to the City. 2) Track and report on misallocations that have been corrected as a result of CONSULTANT’s efforts and remitted to the City by the CDTFA. 3) Provide sales and use tax reporting services that include detail and summary information for: a) Quarterly sales and use tax analysis reports that are benchmarked to previous years. Analysis should include information on the top revenue producers, indication of revenue changes by business and economic category, identification of the major businesses that influenced change in the City’s tax revenue, analysis of key businesses that grew or declined during the reporting period, identification of the top revenue generators in the City, and an analysis of their potential to grow or decline. b) Reports by geographical area (for example, shopping centers, business districts, commercial districts, redevelopment area, governmental, residential, etc.). c) Revenue forecasting reports. d) Other sales and use tax summary reports. 4) The ability to provide at least four quarters of historical data and continuity of reporting during transition is critical. 5) Ability to provide sales and use tax data for City use that can be downloaded standard file format (e.g., comma-delimited text, Excel, MS Access) or access to a web-based application to view or download data. 6) Ability and commitment to tailor reports to the City’s reporting needs in a mutually agreed format. 7) Attend quarterly meetings to discuss analytical reports for sales and use tax. Provide charts and graphs as supporting documentation. Assign staff such that the City has a consistent point of contact in these discussions. 8) Meet with designated City staff as necessary to support the City in recovering and preventing tax deficiencies. 9) Define methodology for identifying potential misallocations and underreported sales and use tax. 10) Provide ongoing communication to the City on revenue recovery work in progress. This requirement will include: a) Providing a quarterly report of all inquiries filed on behalf of the City and the status of outstanding past inquiries filed with the CDTFA; b) Notifying the City’s Project Manager of all oral communication with the CDTFA regarding the City; and c) Providing the City’s Project Manager with a copy of all written communication (e.g. correspondence and email) with the CDTFA regarding the City. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 29 Packet Pg. 452 of 911 Professional Services Rev. Dec.15, 2020 Page 23 of 58 11) Prepare short forms or other appropriate documentation to facilitate the recovery of revenue due the City from prior reporting periods (plus applicable interest and penalties, if appropriate). 12) Provide a detailed listing of all misallocations and underreported sales and use tax detected by the firm. Information shall include the company name, account number, value of the detection, correction status, payment amount received by the City, payment amount due, reporting period for which the payment is related, and any additional information deemed necessary by the firm. 13) Provide support for the development of a point-of-sale attraction and retention strategy. This includes, but is not limited to: a) Yearly: A complete list of businesses by North American Industry Classification System (NAICS) codes, in excel format, including geographic area (e.g., Downtown, Midtown). b) Quarterly: List of all new businesses in Palo Alto by size, location, etc., including an estimate of revenue potential for the City. c) Quarterly: List of businesses looking to expand in the region, with appropriate contact information. d) Quarterly: Newsletter customized for Palo Alto public consumption, in PDF form. e) Quarterly: Track and report sales tax data for the following cities in Santa Clara County and others as agreed by City and CONSULTANT. f) Yearly: Training on software, customization of reports, and all available tools. g) Relevant Strategic Plans from other similar cities. h) A list of interesting incentive programs from other California cities. 14) Obtain advanced, written authorization from City Staff to perform work beyond the filing of a short form to recover funds on behalf of the City, such as a decision appeal, in instances where the CDTFA has an earlier date of knowledge than the firm. The firm will not be eligible to earn compensation for work performed unless such authorization is obtained. Task 3: Transient Occupancy Tax (TOT) Administrative and Reporting Services CONSULTANT will ensure compliance with the City’s TOT regulations and filing procedures. The City’s TOT regulations can be found in Title 2, Chapter 2.33 of the Palo Alto Municipal Code (PAMC). The PAMC requires that the City assess a 15.5 percent TOT on its approximately 30 plus hotels, inns, and various lodging houses and on-line platforms (e.g. AirBnB, Expedia, Inc. Aboda, Inc., etc.) that are intended or designed for occupancy by transients for dwelling. At a minimum, the following capabilities are required: tax return processing and posting; reporting of tax assessment, including relevant statistical data for analytical purposes; compliance monitoring; and customer support services for lodging providers. Requirements 1) Payment processing – process all payments made by new and existing lodging providers, using the CONSULTANT-provided secure online-hosted filing and payment website. The DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 30 Packet Pg. 453 of 911 Professional Services Rev. Dec.15, 2020 Page 24 of 58 website and database will be hosted, administered, supported, updated and maintained by the CONSULTANT. TOT filings will be processed within three (3) business days of submission. 2) Database management – maintain and update the tax registration database for new TOT registrations for lodging, including newly opened establishments, business name changes, and/or changes in business owners. Registration of lodging businesses the database accessible by City staff. 3) Customer support for lodging businesses – provide multiple customer support options for businesses on how to register, file, make payment, and answer general inquiries regarding the TOT tax and filing process. Provide a response to the business within one (1) business day. 4) Compliance monitoring – review filings to ensure accuracy and the correct TOT amount has been remitted to the City. Conduct compliance audits as mutually agreed to by the City and the CONSULTANT. 5) Prepare, or make data available online for City staff review, reports that summarize activity and statistics on a monthly, quarterly, and annual basis. Types of information include total occupancy revenue, TOT payments, number of rooms, occupied (rental) days, available (rental) days, exemptions, amounts, etc. 6) Provide monthly reports, on or before the 10th of every month, that summarize collected tax, less proposed fees, along with remittance of TOT revenue collected for the preceding month. Ongoing Tax Administration Cycle 1) Beginning on the scheduled date, CONSULTANT will receive filings and payments by mail and online. 2) All paper filings checks and correspondence will be opened and batched in our secure facility. 3) Paper filings will be reconciled with payments and any errors, omissions or balance discrepancies logged for follow-up. Web filings are reconciled daily. CONSULTANT also handles NSF check processing, returns and refunds. 4) CONSULTANT will generate and send invoices for balances due to any taxpayer under- payments or late payments. 5) Payments received will be deposited and disbursed to the City 10 – 12 times per month. 6) CONSULTANT Tax Specialists will contact the taxpayer by phone to resolve any filing errors, omissions, or discrepancies. 7) Each month, the CONSULTANT Administration System will flag any missed filings for follow-up. Taxpayers will receive a courtesy phone call and a late notice to let them know DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 31 Packet Pg. 454 of 911 Professional Services Rev. Dec.15, 2020 Page 25 of 58 a filing has not been received as of the due date. The CONSULTANT will continue to follow-up with the taxpayer until payments are received and taxpayer complies. 8) Monthly, CONSULTANT Tax Specialists will analyze the month’s receipts and flag significant variations for follow-up with the taxpayer and possible auditor review. 9) CONSULTANT will provide complete taxpayer support via toll-free number and e-mail to taxpayers requiring assistance with filing or payment, mailing address or contact changes, and any other related issues they may have. 10) CONSULTANT will register new taxpayers and assist them with all materials needed to begin and maintain filing. TOT Compliance Services In addition to TOT administrative services, the goal of the TOT compliance services program is to ensure successful, long-term compliance for lodging establishments that operate in the City. The TOT inventory and compliance services cover traditional lodging properties (hotels, motels, inns) and it does not cover online short-term rentals (such as Air BnB, VRBO, etc.). Should the City seek inventory and compliance services for online short-term rental properties, there will need to be an amendment to this contract pursuant to Section 27.4. This amendment would be at the City’s sole and absolute discretion and the pricing, services, and terms of such an amendment will be negotiated at a future date. The TOT Compliance Services workplan and project schedule for the program are outlined below: Analysis - Phase 1 1) Inventory. Establish a comprehensive inventory of all lodging properties subject to taxation by the City and the database elements (public and private databases) needed to facilitate further analysis to identify and locate lodging providers not properly registered with the City and not appearing on the City rolls as TOT remitters. 2) Analysis. Analyze lodging provider “return information” to identify unusual or suspicious reporting and/or activities that warrant further review. 3) Data collection. Conduct unobtrusive collection of information on each property, including number of rooms, occupancy rate, transient and non-transient guests, exemptions, property’s condition, business dynamics, etc. 4) Reporting. Provide a detailed analysis report to the City identifying lodging providers who might require additional investigation or review to determine their compliance with the City’s TOT ordinance and coordinate with the City to review the analysis report. 5) Identify Phase 2 reviews. Work with the City to develop a list of lodging providers subject to a compliance review of lodging and tax records. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 32 Packet Pg. 455 of 911 Professional Services Rev. Dec.15, 2020 Page 26 of 58 6) Deliverables. CONSULTANT will provide the City with a detailed analysis report identifying lodging providers who might require additional investigation or review to determine their compliance with the City’s TOT ordinance. Audit and Compliance Review - Phase 2 1) Records. Provide the City with a detailed list of all records required from lodging providers, together with a draft engagement announcement letter to be sent to each lodging provider. 2) Examine & Verify. Review records pertaining to TOT for each lodging provider selected for a compliance review and verify the accuracy of filed TOT returns with daily and monthly activity summaries. a) Review a random sample of the daily and monthly summaries to determine if the daily summaries reconcile to the monthly summaries. b) If CONSULTANT believes such a review is necessary, review secondary and tertiary documentation such as bank statements to verify that deposits reconcile with the reported revenue on the TOT returns or other tax filings. c) Review exempted revenue for proper supporting documentation. 3) Compliance Report. Submit and review with the City a compliance review report that includes: a) All review findings; b) Documentation for each error/omission identified and confirmed by CONSULTANT that is necessary to facilitate recovery of revenue due from lodging providers for prior periods. c) Draft notices of deficiency determination, commendation and warning letters as applicable. 4) Findings. Assist the City in reviewing any matters submitted in extenuation and mitigation by lodging providers in contesting a deficiency determination. Prepare and document any changes to the compliance review findings and provide revised tax, interest or penalty amounts due the City. 5) Consulting. During the term of this Agreement, provide up to ten (10) hours of additional consulting time to assist the City in evaluating or implementing any of the proposed actions suggested by the above report. 6) Deliverables. CONSULTANT will provide City staff with a detailed list of all records required to be made available by lodging providers for the reviews, together with a draft engagement announcement letter to be sent to each lodging provider. This Phase will include: DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 33 Packet Pg. 456 of 911 Professional Services Rev. Dec.15, 2020 Page 27 of 58 a) Review findings b) For each identified and confirmed error/omission, CONSULTANT will request accompanying documentation that CONSULTANT believes is necessary to facilitate recovery of revenue due from lodging providers for prior periods; c) Draft notices of deficiency determination, commendation and warning letters as applicable, and recommendations. Within 30 days of completing all audit reviews, CONSULTANT will provide a summary report of all findings to the City. Legislative analysis, economic impact reporting on measures, consulting and policy updates are provided timely, regularly and year-round, and are included as part of the overall Compliance services. TOT Project Schedule 1) Start-up of TOT Audit Process (within first 30-60 days) a) Procedural meeting with the City b) Request Documentation from City i) 48 Months of Returns for all properties (or properties City selected) ii) Current TOT Ordinance and any related information 2) Property Review and Hotels Selected for Audits (within 90 days) a) When the CONSULTANT receives the returns, the CONSULTANT enters the data into worksheets to develop trends, property comparison, exempt rent to gross rent variation, etc. The CONSULTANT will research the statistics on the City and properties. Based on this data, the CONSULTANT selects specific properties for audit (if the City hasn’t requested specific properties). b) The CONSULTANT will submit to the City an Audit Report identifying the properties and reasons they were selected. c) Once the City approves the hotels selected for audits, the CONSULTANT will forward the City Announcement Letters that need to be mailed to the properties on City letterhead. Once the City sends out the letters to the properties, CONSULTANT requests City send CONSULTANT a copy of the signed letters. 3) Start-up of TOT Audits (30 days later) a) Auditors will contact the City for a brief conference call to discuss the audit timeline. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 34 Packet Pg. 457 of 911 Professional Services Rev. Dec.15, 2020 Page 28 of 58 b) Once the timeline has been approved, CONSULTANT issues an Appointment Letter with a list of required information. c) The date for the on-site review will allow the property a minimum of 30 days of preparation time. 4) Desk Audits and Field Audits (8 weeks later) a) Conduct a review search on specifics of hotels to determine/confirm number of rooms, any special requirements and any other charges to which guests may be charged. b) One week after the Appointment Letters are mailed, contact hotel operator to confirm date and time of audit, explain procedures, and request data for sample months selected (such as Property Management System, Month End Reports, Profit & Loss Statements, Exemption Reports, etc.). c) Conduct on-site review. 5) Provide Final Audit Report to the City (30 days following completion of audit program) a) Auditors will submit (via email) all the Commendation/Deficiency Letters that need to be submitted to the hoteliers by the City. b) City will receive an electronic copy of the Final Audit Report. Task 4: Telecommunications Users Tax (TUT) Administrative and Reporting Services The City assesses a TUT (Palo Alto Municipal Code, Title 2, 2.35.090) upon every person in the City using telephone communication services in the City at a rate of 4.75 percent of the charges made to service the user. Tax returns are due from each service supplier at the end of the month for activity and taxes collected for the preceding month. CONSULTANT will provide the following: Requirements 1) Payment processing – process all payments made by every service supplier that is operating in the City. TUT filings will be processed within three (3) business days of submission. 2) Database management – update and maintain the tax registration database for all TUT payors. 3) Customer support for TUT payors – provide multiple customer support options for businesses on how to register, file, make payment, and answer general inquiries regarding the TUT tax and filing process. CONSULTANT shall provide a response to the business within one (1) business day. 4) Compliance monitoring – review filings to ensure accuracy and the correct TUT amount has been remitted to the City. Conduct compliance audits as mutually agreed to by the City and the CONSULTANT. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 35 Packet Pg. 458 of 911 Professional Services Rev. Dec.15, 2020 Page 29 of 58 5) Prepare, or make data available online for City staff review, reports that summarize activity and statistics on a monthly, quarterly, and annual basis. 6) Provide monthly reports, on or before the 10th of every month, that summarize collected tax, less proposed fees, along with remittance of TUT revenue collected for the preceding month. Ongoing Tax Administration Cycle 1) Beginning as of the scheduled date, CONSULTANT will receive filings and payments by mail and online. 2) All paper filings checks and correspondence will be opened and batched in our secure facility. 3) Paper filings will be reconciled with payments and any errors, omissions or balance discrepancies logged for follow-up. Web filings are reconciled daily. CONSULTANT also handles NSF check processing, returns and refunds. 4) CONSULTANT will generate and send invoices for balances due to any TUT taxpayer under-payments or late payments. 5) Payments received will be deposited and disbursed to the City 10 – 12 times per month. 6) CONSULTANT’ TUT Tax Specialists will contact the taxpayer by phone to resolve any filing errors, omissions, or discrepancies. 7) Each month, the CONSULTANT TUT online-hosted SaaS Administration system will flag any missed filings for follow-up. Taxpayers will receive a courtesy phone call and a late notice to let them know a filing has not been received as of the due date. CONSULTANT will continue to follow-up with the taxpayer until payments are received and taxpayer complies. 8) Monthly, CONSULTANT TUT Tax Specialists will analyze the month’s receipts and flag significant variations for follow-up with the taxpayer and possible auditor review. 9) CONSULTANT will provide complete TUT taxpayer support via toll-free number and e- mail to taxpayers requiring assistance with filing or payment, mailing address or contact changes, and any other related issues they may have. 10) CONSULTANT will register new TUT taxpayers and assist them with all materials needed to begin and maintain TUT filing. TUT Compliance Program Objectives and Scope The CONSULTANT will provide the following Compliance Activities: DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 36 Packet Pg. 459 of 911 Professional Services Rev. Dec.15, 2020 Page 30 of 58 1) Optional City Specific Compliance Reviews. At City’s option, CONSULTANT will offer “City-Specific” reviews on a performance fee or other negotiated basis, if the above activities or other factors (e.g., non-response by utility provider) would suggest that there is a reasonable need to do so. If City elects to have CONSULTANT conduct such optional reviews, assignment and authorization of such services may be approached as Additional Services pursuant to Section 1 (“Scope of Services”) and Section 4 (“Not to exceed Compensation”) provided that the amount set aside for Additional Services is not exceeded. Otherwise, if the City elects to have CONSULTANT conduct such optional reviews, the parties may execute an amendment to this Agreement pursuant to Section 27.4. Administrative and Reporting Activities 1) UUT Payment History. CONSULTANT will provide the City, on a monthly or otherwise mutually agreed upon basis, with a spreadsheet reflecting the City’s TUT payments by provider and utility category (based on remittance data provided by City to CONSULTANT). Revenue Protection and Enhancement Activities 1) Legislative Review Services. CONSULTANT will monitor proposed state and federal legislation to identify issues affecting the City’s TUT or utility franchise revenues and, make recommendations to client cities, their lobbyists, and other potential stakeholders or municipal advocates and otherwise assist in developing effective consensus positions and coordinated advocacy. 2) Technology and Marketing Analysis. CONSULTANT will identify, monitor and anticipate changes in technology, services, or marketing of services, which may have an impact on future TUT revenues. Additional Customization & Consulting Services (Not Included in Scope of Services) CITY may request CONSULTANT provide Additional Services, as detailed in Section 4 (“Not to Exceed Compensation”) of this Agreement, including but not limited to enhanced customization to its online filing website, reports, or Client Reporting Portal beyond the customization outlined in this Agreement. In such a situation, CITY and CONSULTANT may identify CITY’S desired scope and reasonable and customary fees (a cost proposal) for the desired scope, pursuant to a Task Order as detailed in Section 1 (“Scope of Services”) herein. Before making any such enhanced customizations, such Additional Services shall be authorized and executed as provided in Section 1 and in accordance with Section 4. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 37 Packet Pg. 460 of 911 Professional Services Rev. Dec.15, 2020 Page 31 of 58 EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________ 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE:  SERVICES AND DELIVERABLES TO BE PROVIDED  SCHEDULE OF PERFORMANCE  MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________ I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 38 Packet Pg. 461 of 911 Professional Services Rev. Dec.15, 2020 Page 32 of 58 EXHIBIT B SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY. TASK SCHEDULE Task 1: Business Fee Collection Services for the Business Registration Certificate and Business Improvement District Programs (BRC and BID) Task 1B: Business Registry Certificate and Business Improvement District (BID) Fee Administration annual cycle launch occurring January to March On-going Business Registry Certificate / Business Improvement District (BID) Discovery Services of respective year; prior to launch of annual cycle; and Continuation of customer support as described in Exhibit A - Additional Customization & Consulting Services (if executed Task 1: Business Tax Collection Services for the Business Tax (BT) Task 1A: Convert and load all existing taxpayer records (provided by the CITY and exiting vendor records) to CONSULTANT Verify with the CITY all taxpayer letters, forms, notices and any other taxpayer correspondence that are in use for the DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 39 Packet Pg. 462 of 911 Professional Services Rev. Dec.15, 2020 Page 33 of 58 the CITY’S taxpayers. Provide “test site” for City review. Task 4: Provide customer access to on-line portal. By Mid-September 2023 Task 1B: Contact all taxpayers a) by mail, including introductory letter with new filing address, telephone contact for taxpayer support, and web filing instructions; and then b) by telephone October 2023 Ongoing BT Administrative and Reporting Services as Ongoing BT Compliance Activities as described in Additional Customization & Consulting Services (if executed Task 2: Sales & Use Tax Audit and Information Services Task 2A: Delivery of reports specified in Exhibit A – Scope of Work, including report of all inquiries filed on behalf of the CITY and the status of outstanding pas inquiries filed with the CDTFA; update to Clearview database of sales and use ta data for the most recent quarter; and meeting with designated CITY staff. Complete list of businesses by NAICS codes (when available), in Excel format, including geographic area middle of the first month of each quarter in January, April, July, and October Training on Clearview software, customization of reports, Additional Customization & Consulting Services (if executed Task 3: Transient Occupancy Tax Administrative and Reporting Services (TOT) Task 3A: Continuation of TOT Administrative and Reporting Services DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 40 Packet Pg. 463 of 911 Professional Services Rev. Dec.15, 2020 Page 34 of 58 Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement. Task 3A: Continuation of customer support as described in Exhibit A – Additional Customization & Consulting Services (if executed Task 4: Telecommunications Users Tax Administrative and Reporting Services (TUT) Task 4A: Ongoing TUT Administrative and Reporting Services as Continuation TUT Compliance Activities as described in Continuation of customer support as described in Exhibit A – Ongoing – TUT Revenue Protection and Enhancement, Ordinance Advisory Services, and Legislative and Regulatory Review Services as described in Exhibit A – Additional Customization & Consulting Services (if executed DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 41 Packet Pg. 464 of 911 Professional Services Rev. Dec.15, 2020 Page 35 of 58 EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below. CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. Consumer Price Index Adjustments Where noted in this Exhibit, the Consumer Price Index refers to the Consumer Price Index – All Urban Consumers for San Francisco-Oakland-Hayward Area as reported by the Bureau of Labor Statistics. The initial CPI used for the first CPI adjustment will be the CPI for the month in which the agreement is fully signed. The adjustments thereafter will be based on the CPI from December of the prior calendar year. Each annual adjustment will not be less than two percent (2%) or greater than five percent (5%). Credit Card Processing Fee for Tax and Fee Collection Services If the City opts to absorb the credit card processing fees charged by the credit card companies, the CONSULTANT will withhold the exact processing fees charged by the credit card companies when the CONSULTANT remits Business Tax, Business Registry, Business Improvement District, Transient Occupancy Tax, and/or Telecommunication Users Tax revenue to the City. If the City opts-out of absorbing this cost, a standard 3% processing fee will be directly paid by businesses that choose this payment option and added to the business licensing fees at the time of payment. Task 1: Business Tax, Business Registry, and Business Improvement District Program Administrative, Reporting, and Audit Services A. Business Tax, Business Registry and Business Improvement District Administration The fee for the Administration is determined by how many business taxpayers and business registry certificates the City has and what the City ordinance is for administrative fees. compensation for providing the standard Administration Services shall be: DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 42 Packet Pg. 465 of 911 Professional Services Rev. Dec.15, 2020 Page 36 of 58 • Setup fee to implement City’s new Business Tax: $15,000 o May increase to $30,000 depending on City requirements and will be determined and mutually agreed upon between CITY and CONSULTANT as requirements are finalized during implementation planning. • Annual flat fee: $10,000 • $13.00 annual per participant fee, adjusted by CPI-U at the beginning of each calendar year • For a customization beyond the standard offering and current processes, a mutually agreed upon one-time set up fee may apply or a slightly higher per registry fee may apply. This will be determined through more in-depth needs gathering from the City. Included in the above compensation for Administration Services are: • Incorporation/Merging of the Business Registry and Business Improvement District database with the Business Tax • Printing and Mailing costs (for notifications, registry issuance, etc.) • Ongoing database management and back-up (business applicant information) • Forms processing and funds disbursement (secure lockbox operation) • Development and support of an on-line business registry filing and payment application. Cost for Sending the Original Registry/Application to the City The CONSULTANT archives all original registry certificate/applications. If the City wants a copy of the original registry/application, a fee of $3.75 per business registry/application for the mailing or faxing. Delinquencies Should the usual process of notifying businesses (2 additional notices and a follow-up phone call) result in the non-payment of a business listed on the CONSULTANT’S online-hosted SaaS system or the data sent to the CONSULTANT from the City, the account will then be considered a delinquency. Delinquency processing involves another strongly worded notice and additional phone calls. The account is then subject to the same fees as the LTC Discovery services listed below. Non-Sufficient Funds (NSF) and Associated Penalties If a business pays its Business Registry fee by check without sufficient funds, then a $25 NSF will be charged to the business. If the NSF payment causes the Business Registry/BID payments to be late, then the associated late penalties and interest will apply. The CONSULTANT offers a variety of payment option to businesses seeking a Business Registry Certificate. Some of these options incur additional fees and costs. The CONSULTANT understands it is customary and reasonable for certain fees and charges to be absorbed by the issuing party and others to be charged to the business applicant/remitter. The CONSULANT will follow existing City policy in charging any applicable fees and charges to either the business applicant/remitter or continue to allow the City to absorb those fees and charges. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 43 Packet Pg. 466 of 911 Professional Services Rev. Dec.15, 2020 Page 37 of 58 Remitters’ Payments and Invoice Process The following section describes how applicant/remitters’ payments are handled by the CONSULTANT and invoices the City for its fees. Payments received by the CONSULTANT shall be deposited into a general non-interest bearing, collateral trust account maintained by the CONSUTLANT. The business applicants/remitters’ payments deposited into the escrow account shall be remitted to the City on a bi-weekly basis (typically on the 15th and by the last business day of each month) net of the CONSULTANT’S fees. Should there be any disputed payments; the CONSULTANT shall work with City to mutually resolve these issues. If the resolution results in City’s favor, the CONSULTANT shall refund the applicable portion of the fee to City within 10 days of resolution. Completion of Services The CONSULTANT’S service may result in collection of deficiencies after termination of the Agreement, the City’s obligation to collect fees and notify the CONSULTANT, and the CONSULTANT’S right to continue to receive contingency fees, shall survive termination of the Agreement. The City shall have the right, at the City’s option, to elect not to proceed with recovery of any identified deficiencies. Deficiencies which are uncollectible due to insolvency or dissolution of the entity liable, or for deficiencies which are otherwise incapable of collection (e.g. statute of limitations expiration or other legal defense) shall not be considered an “election” by the City for the purposes of this Agreement. For deficiencies otherwise collectable but for which the City elects not to collect, the City shall notify the CONSULTANT of its election not to pursue (“waive”) collection of said deficiencies. The CONSULTANT shall be entitled to one-half (½) of the fee the CONSULTANT would have been entitled to for the waived portion of the deficiency. Business Tax, Business Registry, and Business Improvement District Discovery Compensation for providing Discovery Services shall be a contingency fee of thirty five percent (35%) of the additional revenue received by the City from the services. The contingency fee shall apply to the calendar year, all eligible prior period revenues, and any applicable penalties, interest, and late charges. The contingency fee only applies to revenue received by the CITY. If CITY elects this service, the annual minimum fee is $7,500. Task 2: Sales and Use Tax Audit and Information Services A. Sales and Use Tax Information and Reporting The Sales Tax Analysis and Reporting Service (STARS) will be provided at an annual fixed fee of $4,000 paid $1,000 per quarter. The Annual Fee will be adjusted at the beginning of each calendar year by CPI as reported by the Bureau of Labor Statistics. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 44 Packet Pg. 467 of 911 Professional Services Rev. Dec.15, 2020 Page 38 of 58 B. Sales and Use Tax Audit The Sales and Use Tax Audit (SUTA) services will be provided for a fifteen percent (15%) contingency fee for the tax revenues identified by the CONSULTANT and corrected by the California Department of Tax and Fee Administration (CDTFA). This fee applies to four (4) quarters after the Date of Correction and all eligible prior quarters back to and including the three (3) quarters prior to the Date of Knowledge quarter with a maximum of ten total quarters. As used herein, the Date of Knowledge is the quarter during which the CONSULTANT notifies the CDTFA of the existence of a misallocation. As used herein, the Date of Correction refers to the quarter in which the taxpayer has correctly reported the local tax and the CDTFA distributes the local tax properly to City based on the taxpayer’s reporting, together with any prior period reallocations. For QDR Misallocations detected and corrected, the CONSULTANT’S compensation will only include the quarters in which the misallocation actually occurred. For clarification and to encourage communication and collaboration between the CONSULTANT and the CITY, the CONSULTANT shall be entitled to full payment of all compensation as provided herein even if any one or more of City, its personnel, agents, or representatives, or any third party or parties provide(s) information to the CONSULTANT that assists or is used by the CONSULTANT in the identification, detection, and correction of point-of-sale distribution errors or the reporting and/or misallocation of revenue. Completion of Services Because the services performed by the CONSULTANT results in corrections of misallocations and other revenue after cessation of services performed by the CONSULTANT for the City, the City agrees that with regards to misallocations identified to the CDTFA whose Date of Knowledge occurred during the CONSULTANT performance of services for the City or for other revenue resulting from the CONSULTANT’S actions taken during the term of the Agreement, that the City’s obligation to pay the CONSULTANT in accordance with the compensation language of the Agreement will survive expiration or termination of the Agreement for any reason. Additionally, notwithstanding any other provision of the Agreement, if the Agreement is terminated or expires, the CONSULTANT will continue to pursue corrections of accounts identified during the term of the Agreement that have not been corrected by the CDTFA as of the effective date of termination or expiration. The period after termination during which the CONSULTANT is pursuing correction of accounts identified before termination is referred to as the “completion period.” The City will compensate the CONSULTANT in accordance with the compensation language of the Agreement for corrected misallocations that result from the CONSULTANT efforts during the completion period. The City will also take all necessary steps to allow the CONSULTANT to continue to receive the required information from the SBE during this completion period. Method of Payment The Sales and Use Tax Audit Service is self-funding and entirely predicated and contingent upon the CONSULTANT’S audit service producing new sales/use tax revenue that would not otherwise have been realized by the City. The sales/use tax audit shall be paid by quarterly invoice, after the City has received the revenue from the correction and the quarterly distribution report has verified this receipt. Each invoice will include the business name, permit number, local allocation amount DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 45 Packet Pg. 468 of 911 Professional Services Rev. Dec.15, 2020 Page 39 of 58 received by the City, and amount due to the CONSULTANT. Invoices shall be due and payable upon receipt. Task 3: Transient Occupancy Tax (TOT) Administration and Reporting Services A. Administration and Reporting Services Transient Occupancy Tax administration services are available to the CITY for an annual cost of $150 per lodging property, adjusted by CPI at the beginning of the calendar year. The annual cost of $150 applies regardless of whether the lodging property is hotel or a short-term rental. The TOT Administration Service will be invoiced to the City at the beginning of each contract year based on the number of properties registered to report transient occupancy tax. Should new short-term rental properties be added to the administration program during the year, these new properties will be billed on a pro-rated annual basis from the time they join the program. B. TOT Audit and Compliance Services Upon mutual agreement between CITY and CONSULTANT, TOT audits can be provided for hotel and lodging properties on a fixed fee basis. Our TOT audit services consist of two inter- related audit phases. The Phase 1 review must be done first, and it must include all traditional (hotels, motels, inns) lodging properties within the City. This service does not include TOT audit and compliance services for online short-term rentals (Air Bnb, VRBO, etc.), as detailed in the “TOT Compliance Services” section of Exhibit A (“Scope of Services”) of this Agreement. Phase 2 cannot proceed without a Phase 1 review first being completed. The City can determine the number of Phase 2 audits that they wish for the CONSULTANT to complete (typically CONSULTANT recommends roughly 33% of lodging properties for Phase 2 audit but it is up to the City to determine the number). Phase 1: Analysis The City will pay the CONSULTANT a fixed fee of $800 per lodging property. This fee applies to all lodging properties located in the City limits. The CONSULTANT will invoice this upon delivery of the analysis report. Phase 2: Audit and Compliance Review The City will pay the CONSULTANT a fixed fee of $1,200 per lodging property reviewed unless the City does not approve the list of lodging properties for Compliance Review within 90 days of submission, in which the cost will increase to $1,400 per lodging property reviewed. The CONSULTANT will invoice this upon delivery of the compliance report with payment to be made within thirty-days (30) of receipt of invoice. Based on our experiences, through review of lodging properties in the initial Discovery and Audit Phase (Phase 1), our staff typically recommends approximately 33% of the lodging providers for the Phase 2 Compliance Review. Reimbursement of Travel Costs for Audit Services (Visits to City) DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 46 Packet Pg. 469 of 911 Professional Services Rev. Dec.15, 2020 Page 40 of 58 For the Transient Occupancy Tax services, the CONSULTANT will also charge the City out-of- pocket expenses for travel costs related to the performance of the audits in accordance with the City of Palo Alto’s policy for reimbursement of travel and meal expenses. Travel costs will not exceed $2,500 per visit. If CONSULTANT expect to spend more than $2,500 per visit, CONSULTANT will get prior approval from the City for any amounts over the allotted $2,500, executed in writing per Section 27.4 of this Agreement. The travel costs will be invoiced to the City upon delivery of the final report to the City. Typically for years two and three there will not be a need to audit every property within the statute. The CONSULTANT will continue to monitor the lodging properties reporting and notify the City of any anomaly and then charge $500 per property for any of those that require further compliance review. Should the City elect the full Phases 1 and 2 service for years two and three, the travel costs reimbursement provisions above will apply, to be executed in writing per Section 27.4 of this Agreement. Task 4: Telecommunications Users Tax (TUT) Administrative and Reporting Services A. Administration and Reporting Services Telecommunications Users Tax (TUT) administration services are available to the City for a monthly administration fee equal to $2.95 per filing transaction (typically one transaction per UUT taxpayer per month), adjusted by CPI at the beginning of the calendar year. The Administration Service will be invoiced to the City on a monthly basis and be based on the number of returns filed in the month. B. Utility User Tax City-Specific Compliance Review Audit Upon mutual agreement of a suitable telecommunications utility for compliance review, the City shall pay the CONSULTANT thirty percent (30%) of the additional revenues, including interest and penalties, that has resulted from its City-specific compliance review activities. The CONSULTANT will seek to recover or assist the City in recovering all revenue due the City from prior periods, if any, and the CONSULTANT will receive 30% of any retroactive recovery. Said 30% also applies to the additional revenue received by the City for the first three years following the correction of the error/omission. As used in this subsection, the term “additional revenues” includes the value of any other services, credits, property of every kind or nature, or other consideration received by the City in lieu of monetary payment. Compensation is due and payable within thirty (30) days of the City’s receipt of the invoice. Any amounts which remain unpaid after thirty (30) days shall accrue interest at a rate of one and one- half percent (1.5%) per month, or the maximum amount permitted by law. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 47 Packet Pg. 470 of 911 Professional Services Rev. Dec.15, 2020 Page 41 of 58 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, telecommunications, 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 as detailed below, not to exceed $2,500 per visit (per the “Reimbursement of Travel Costs for Audit Services (Visits to City)” section above): 1) Travel related to discovery and/or audits as authorized in writing by the City’s Project Manager, 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. All requests for payment of expenses shall be accompanied by appropriate backup information. ADDITIONAL SERVICES The CONSULTANT shall provide Additional Services, as detailed in Section 4 of this Agreement, only by advanced, written authorization from the CITY as detailed in Section 1 of this Agreement. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 48 Packet Pg. 471 of 911 Professional Services Rev. Dec.15, 2020 Page 42 of 58 BUDGET SCHEDULE RATE Administrative, Reporting, and Audit Services a. Business tax, Business Registry, and Business Improvement District Program set up and • Set-up fee: $30,000 • $30,000.00 b. Business tax, Business Registry, and Business Improvement District Program administration and reporting • • $50,000.00 • Annual fee per participant: $13/annually (adj annually by CPI) – extended NTE assumes 9,300 businesses, over 5 years, • $668,050.00 c. Business Tax and Business Registry discovery and recovery (if City • • $50,000.00 • Minimum annual fee: $7,500 d. Business Tax and Business Registry audit • by CPI) • $50,000.00 SUBTOTAL: BASIC SERVICES $848,050.00 e. Additional customization and consulting services (if City elects • C-1 $50,000.00 Task 2: Sales and Use Tax Audit and Information Services a. Sales and use tax information • Annual flat fee: $4,000 (adj annually by CPI) – extended NTE assumes 5% CPI over 5 $22,500.00 b. Sales and use tax audit • Contingency fee: 15% • $100,000.00 SUBTOTAL: BASIC SERVICES $122,500.00 DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 49 Packet Pg. 472 of 911 Professional Services Rev. Dec.15, 2020 Page 43 of 58 Task 3: Transient Occupancy Tax Administrative, Reporting, and Audit Services a. Transient Occupancy Tax administrative and reporting • Annual fee per lodging property: $150 (adj annually by CPI) – extended NTE assumes 35 lodging properties, over 5 years, and $29,000.00 b. Transient Occupancy Tax audit (traditional hotel/motel) (if City elects this service) – extended NTE assumes one round each of Phase 1 and 2 for half of the City’s hotel properties, travel costs for one visit, and compliance review as agreed upon. • $40,000.00 • Phase 2: $1,200 per lodging property (adj annually by CPI) • Travel costs: up to $2,500 per visit Compliance review: $500 per property SUBTOTAL: BASIC SERVICES $69,000.00 Task 4: Telecommunication Users Tax Administrative, Reporting, and Audit Services a. Telecommunication Users Tax administrative and reporting services • (adj annually by CPI) – extended NTE assumes 250 filers, over 5 years, and 5% $47,000 b. Telecommunication users tax audit services (if City elects this service) • Contingency fee: 30% • $25,000 SUBTOTAL: BASIC SERVICES $72,000.00 TOTAL BASIC SERVICES $1,111,550.00 TOTAL ADDITIONAL SERVICES $50,000.00 TOTAL NOT TO EXCEED $1,161,550.00 DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 50 Packet Pg. 473 of 911 Professional Services Rev. Dec.15, 2020 Page 44 of 58 EXHIBIT “C-1” SCHEDULE OF RATES Additional Consulting Services (“Additional Services”) Should the City desire Additional Services, per Section 4 and Exhibit “C” of this Agreement, the City may request that the CONSULTANT provide Additional Services at any time during term of the Agreement. CONSULTANT shall provide such services on a Time and Materials basis and based on the hourly rate schedule below. Position Hourly Rate Principal $225 Project Manager/Director $200 Client Services Executive $175 Senior Analyst $150 Information Technology $200 Analyst $125 Administrative $85 DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 51 Packet Pg. 474 of 911 Professional Services Rev. Dec.15, 2020 Page 45 of 58 EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 52 Packet Pg. 475 of 911 Professional Services Rev. Dec.15, 2020 Page 46 of 58 DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 53 Packet Pg. 476 of 911 Professional Services Rev. Dec.15, 2020 Page 47 of 58 DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 54 Packet Pg. 477 of 911 Professional Services Rev. Dec.15, 2020 Page 48 of 58 EXHIBIT E DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 55 Packet Pg. 478 of 911 Professional Services Rev. Dec.15, 2020 Page 49 of 58 DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 56 Packet Pg. 479 of 911 Professional Services Rev. Dec.15, 2020 Page 50 of 58 DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 57 Packet Pg. 480 of 911 Professional Services Rev. Dec.15, 2020 Page 51 of 58 DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 58 Packet Pg. 481 of 911 Professional Services Rev. Dec.15, 2020 Page 52 of 58 DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 59 Packet Pg. 482 of 911 Professional Services Rev. Dec.15, 2020 Page 53 of 58 DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 60 Packet Pg. 483 of 911 Professional Services Rev. Dec.15, 2020 Page 54 of 58 DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 61 Packet Pg. 484 of 911 Professional Services Rev. Dec.15, 2020 Page 55 of 58 DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 62 Packet Pg. 485 of 911 Professional Services Rev. Dec.15, 2020 Page 56 of 58 EXHIBIT “F” CYBERSECURITY TERMS AND CONDITIONS In order to assure the privacy and security of the personal information of the City's customers and people who do business with the City, including, without limitation, vendors, utility customers, library patrons, and other individuals and companies, who are required to share such information with the City, as a condition of receiving services from the City or selling goods and services to the City, including, without limitation, the Software as a Service services provider (the "Consultant") and its subcontractors, if any, including, without limitation, any Information Technology ("IT") infrastructure services provider, shall design, install, provide, and maintain a secure IT environment, described below, while it renders and performs the Services and furnishes goods, if any, described in the Statement of Work, Exhibit B, to the extent any scope of work implicates the confidentiality and privacy of the personal information of the City's customers. The Consultant shall fulfill the data and information security requirements (the "Requirements") set forth in Part A below. A "secure IT environment" includes (a) the IT infrastructure, by which the Services are provided to the City, including connection to the City's IT systems; (b) the Consultant's operations and maintenance processes needed to support the environment, including disaster recovery and business continuity planning; and (c) the IT infrastructure performance monitoring services to ensure a secure and reliable environment and service availability to the City. "IT infrastructure" refers to the integrated framework, including, without limitation, data centers, computers, and database management devices, upon which digital networks operate. In the event that, after the Effective Date, the Consultant reasonably determines that it cannot fulfill the Requirements, the Consultant shall promptly inform the City of its determination and submit, in writing, one or more alternate countermeasure options to the Requirements (the "Alternate Requirements" as set forth in Part B), which may be accepted or rejected in the reasonable satisfaction of the Information Security Manager (the "ISM"). Part A. Requirements: The Consultant shall at all times during the term of any contract between the City and the Consultant: (a) Appoint or designate an employee, preferably an executive officer, as the security liaison to the City with respect to the Services to be performed under this Agreement. (b) Comply with the City's Information Privacy Policy: (c) Have adopted and implemented information security and privacy policies that are documented, are accessible to the City, and conform to ISO 27001/2 – Information Security Management Systems (ISMS) Standards. See the following: DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 63 Packet Pg. 486 of 911 Professional Services Rev. Dec.15, 2020 Page 57 of 58 http://www.iso.org/iso/home/store/catalogue_tc/catalogue_detail.htm?csnumber=42103 http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm?csnumber=5029 7 (d) Conduct routine data and information security compliance training of its personnel that is appropriate to their role. (e) Develop and maintain detailed documentation of the IT infrastructure, including software versions and patch levels. (f) Develop an independently verifiable process, consistent with industry standards, for performing professional and criminal background checks of its employees that (1) would permit verification of employees' personal identity and employment status, and (2) would enable the immediate denial of access to the City's confidential data and information by any of its employees who no longer would require access to that information or who are terminated. (g) Provide a list of IT infrastructure components in order to verify whether the Consultant has met or has failed to meet any objective terms and conditions. (h) Implement access accountability (identification and authentication) architecture and support role-based access control ("RBAC") and segregation of duties ("SoD") mechanisms for all personnel, systems, and Software used to provide the Services. "RBAC" refers to a computer systems security approach to restricting access only to authorized users. "SoD" is an approach that would require more than one individual to complete a security task in order to promote the detection and prevention of fraud and errors. (i) Assist the City in undertaking annually an assessment to assure that: (1) all elements of the Services' environment design and deployment are known to the City, and (2) it has implemented measures in accordance with industry best practices applicable to secure coding and secure IT architecture. (j) Provide and maintain secure intersystem communication paths that would ensure the confidentiality, integrity, and availability of the City's information. (k) Deploy and maintain IT system upgrades, patches and configurations conforming to current patch and/or release levels by not later than one (1) week after its date of release. Emergency security patches must be installed within 24 hours after its date of release. (l) Provide for the timely detection of, response to, and the reporting of security incidents, including on-going incident monitoring with logging. (m) Notify the City within one (1) hour of detecting a security incident that results in the unauthorized access to or the misuse of the City's confidential data and information. (n) Inform the City that any third party service provider(s) meet(s) all of the Requirements. (o) Perform security self-audits on a regular basis and not less frequently than on a quarterly basis, and provide the required summary reports of those self-audits to the ISM on the annual anniversary date or any other date agreed to by the Parties. (p) Accommodate, as practicable, and upon reasonable prior notice by the City, the City's performance of random site security audits at the Consultant's site(s), including the site(s) of a third-party service provider(s), as applicable. The scope of these audits will extend to the Consultant's and its third-party service provider(s)' awareness of security policies and practices, systems configurations, access authentication and authorization, and incident detection and response. (q) Cooperate with the City to ensure that to the extent required by applicable laws, rules and regulations, and the Confidential Information will be accessible only by the Consultant and any authorized third-party service provider's personnel. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 64 Packet Pg. 487 of 911 Professional Services Rev. Dec.15, 2020 Page 58 of 58 (r) Perform regular, reliable secured backups of all data needed to maximize the availability of the Services. Adequately encrypt the City of Palo Alto's data, during the operational process, hosted at rest, and the backup stage at the Vendors' environment (including Vendor's contracting organization's environment). (s) Maintain records relating to the Services for a period of three (3) years after the expiration or earlier termination of this Agreement and in a mutually agreeable storage medium. Within thirty (30) days after the effective date of expiration or earlier termination of this Agreement, all of those records relating to the performance of the Services shall be provided to the ISM. (t) Maintain the Confidential Information in accordance with applicable federal, state, and local data and information privacy laws, rules, and regulations. (u) Encrypt the Confidential Information before delivering the same by electronic mail to the City and or any authorized recipient. (v) Provide Network Layer IP filtering services to allow access only from the City of Palo Alto's IP address to the Vendor environment (primarily hosted for the City of Palo Alto). (w) Offer a robust disaster recovery and business continuity (DR-BCP) solutions to the City for the systems and services the Vendor provides to the City. (x) Provide and support Single Sign-on (SSO) and Multifactor Authentication (MFA) solutions for authentication and authorization services from the "City's environment to the Vendor's environment," and Vendor's environment to the Vendor's cloud services/hosted environment." The Vendor shall allow two employees of the City to have superuser and super-admin access to the Vendor's IT environment, and a cloud-hosted IT environment belongs to the City. (y) Unless otherwise addressed in the Agreement, shall not hold the City liable for any direct, indirect or punitive damages whatsoever including, without limitation, damages for loss of use, data or profits, arising out of or in any way connected with the City's IT environment, including, without limitation, IT infrastructure communications. (z) The Vendor must provide evidence of valid cyber liability insurance policy per the City’s EXHIBIT “D” INSURANCE REQUIREMENTS. DocuSign Envelope ID: CF8DD150-7A6C-498B-8E58-3A6A7FE9F4BF Item 33 Attachment A - Contract No. C23187298A MuniServices, LLC for Tax and Fee Consulting Services Item 33: Staff Report Pg. 65 Packet Pg. 488 of 911 Professional Services Rev. Dec.15, 2020 Page 1 of 36 CITY OF PALO ALTO CONTRACT NO. C23187298B AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND HDL COREN & CONE This Agreement for Professional Services (this “Agreement”) is entered into as of the 19th day of June 2023 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and HDL COREN & CONE, a California corporation, located at 120 S. State College Boulevard, Suite 200, Brea, CA 92821 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY seeks Property Tax Analysis and Reporting services (the “Project”) and desires to engage a consultant for Property Tax Consulting Services in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through March 31, 2028 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 66 Packet Pg. 489 of 911 Professional Services Rev. Dec.15, 2020 Page 2 of 36 Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Hundred One Thousand Eight Hundred Dollars ($101,800.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. Optional Additional Services Provision (This provision applies only if checked and a not-to-exceed compensation amount for Additional Services is allocated below under this Section 4.) In addition to the not-to-exceed compensation specified above, CITY has set aside the not- to-exceed compensation amount of Ten Thousand Dollars ($10,000.00) for the performance of Additional Services (as defined below). The total compensation for performance of the Services, Additional Services and any reimbursable expenses specified in Exhibit C, shall not exceed One Hundred Eleven Thousand Eight Hundred Dollars ($111,800.00), as detailed in Exhibit C. “Additional Services” means any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described at Exhibit A. CITY may elect to, but is not required to, authorize Additional Services up to the maximum amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by advanced, written authorization from CITY as detailed in this Section. Additional Services, if any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project Manager, as identified in Section 13 (Project Management). Each Task Order shall be in substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”. Each Task Order shall contain a specific scope of services, schedule of performance and maximum compensation amount, in accordance with the provisions of this Agreement. Compensation for Additional Services shall be specified by CITY in the Task Order, based on whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set forth in Exhibit C-1, or a negotiated lump sum. To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project Manager within the time specified by the Project Manager, and upon authorization by CITY (defined as counter-signature by the CITY Project Manager), the fully executed Task Order shall become part of this Agreement. The cumulative total compensation to DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 67 Packet Pg. 490 of 911 Professional Services Rev. Dec.15, 2020 Page 3 of 36 CONSULTANT for all Task Orders authorized under this Agreement shall not exceed the amount of compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be compensated for Additional Services performed under an authorized Task Order and only up to the maximum amount of compensation set forth for Additional Services in this Section 4. Performance of and payment for any Additional Services are subject to all requirements and restrictions in this Agreement. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit quarterly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 68 Packet Pg. 491 of 911 Professional Services Rev. Dec.15, 2020 Page 4 of 36 design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING. Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. Option B: Subcontracts Authorized: Notwithstanding Section 11 (Assignment) above, CITY agrees that subcontractors may be used to complete the Services. The subcontractors authorized by CITY to perform work on this Project are: DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 69 Packet Pg. 492 of 911 Professional Services Rev. Dec.15, 2020 Page 5 of 36 CONSULTANT shall be responsible for directing the work of any subcontractors and for any compensation due to subcontractors. CITY assumes no responsibility whatsoever concerning compensation of subcontractors. CONSULTANT shall be fully responsible to CITY for all acts and omissions of subcontractors. CONSULTANT shall change or add subcontractors only with the prior written approval of the City Manager or designee. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Nichole Cone- Morishita, CFO, email: ncone@hdlccpropertytax.com, as the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY’s Project Manager is Josie Stokes, Administrative Services Department, Revenue Collections Division, 250 Hamilton Avenue, Palo Alto, CA 94301, Telephone: (650) 329-2291. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services. SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 70 Packet Pg. 493 of 911 Professional Services Rev. Dec.15, 2020 Page 6 of 36 completion of any audit hereunder, whichever is later. SECTION 16. INDEMNITY. [Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all third party demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) to the extent that such Claims arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. CITY will reimburse CONSULTANT for the proportionate percentage of defense costs exceeding CONSULTANT’s proportionate percentage of fault as determined by the final judgment of a court of competent jurisdiction. [Option B applies to any consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 71 Packet Pg. 494 of 911 Professional Services Rev. Dec.15, 2020 Page 7 of 36 remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 72 Packet Pg. 495 of 911 Professional Services Rev. Dec.15, 2020 Page 8 of 36 discontinue its performance of the Services on the effective date in the notice of suspension or termination. 19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 73 Packet Pg. 496 of 911 Professional Services Rev. Dec.15, 2020 Page 9 of 36 would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises. 21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 74 Packet Pg. 497 of 911 Professional Services Rev. Dec.15, 2020 Page 10 of 36 (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. 26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract: (1) is not a public works contract; (2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 75 Packet Pg. 498 of 911 Professional Services Rev. Dec.15, 2020 Page 11 of 36 1773.3(j). SECTION 27. CLAIMS PROCEDURE FOR “9204 PUBLIC WORKS PROJECTS”. For purposes of this Section 27, a “9204 Public Works Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in Exhibit F, entitled “Claims for Public Contract Code Section 9204 Public Works Projects”. This Project is not a 9204 Public Works Project. SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement. 28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 76 Packet Pg. 499 of 911 Professional Services Rev. Dec.15, 2020 Page 12 of 36 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions. 29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time. 29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 77 Packet Pg. 500 of 911 Professional Services Rev. Dec.15, 2020 Page 13 of 36 control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. 29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: EXHIBIT A: SCOPE OF SERVICES EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER EXHIBIT B: SCHEDULE OF PERFORMANCE EXHIBIT C: COMPENSATION EXHIBIT C-1: SCHEDULE OF RATES EXHIBIT D: INSURANCE REQUIREMENTS EXHIBIT E: INFORMATION PRIVACY POLICY EXHIBIT F: CYBERSECURITY TERMS AND CONDITIONS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 78 Packet Pg. 501 of 911 Professional Services Rev. Dec.15, 2020 Page 14 of 36 CONTRACT NO. C23187298B SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: __________________________ City Attorney or Designee HDL COREN & CONE Officer 1 By:_____________________________ Name: Paula Cone_________________ Title: President____________________ Officer 2 By:______________________________ Name: Nichole Cone-Morishita________ Title: CFO_________________________ DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 79 Packet Pg. 502 of 911 Professional Services Rev. Dec.15, 2020 Page 15 of 36 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the following services and deliverables pursuant to this Agreement: Property Tax Information Services and Reporting The CONSULTANT shall furnish a variety of reports detailing property and revenue trends for the entire City and for custom defined geographic areas. These reports may be used for budgeting purposes, planning, economic development and public information. Among the reports available are top 25, 50, 100-property owner/taxpayer listings, multiple ownership properties, non-owner occupied parcels, identification of property ownership transfers and completed construction projects for tracking of reassessments. The CONSULTANT will provide the following reports annually, quarterly or monthly, as appropriate. Reports are also available from prior years if needed and will be made available in pdf, Microsoft Word and Excel formats, as requested by City, for use in staff presentations. Reports in the portfolio of deliverables include but are not limited to:  A five-year history of the values within the City, and custom (city defined) geographic areas;  A listing of the largest value changes, positive and negative between tax years;  An annual parcel listing of properties with parcel number changes between tax years identifying parcel splits and combines;  A listing of the major property owners for the City including the combined assessed values of their property and property use code designation;  A listing of property transfers which occurred since the lien date ordered by month—sales listing;  A listing of parcels that have not changed ownership since the enactment of Proposition 13;  Analysis of recent sales of properties not sold since prior to Proposition 13.  A comparison of property within the City by county use-code designation;  A multiple year comparison of growth by use code designation over a 5- year period;  A listing by parcel of new construction activity to identify non-residential parcels with new construction activity and to provide reports for use in the City's preparation of Propositions 4 and 111 State Appropriation Limit calculations;  A listing of multiple owned parcels;  A listing of absentee owner parcels;  Calculate an estimate of property tax revenue anticipated to be received for the fiscal year by the City based upon the initial information provided by the County and subject to modification.  Analyses based on geo areas designated by the City to include assessed valuations and square footage computations for use in economic analysis and community development planning. DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 80 Packet Pg. 503 of 911 Professional Services Rev. Dec.15, 2020 Page 16 of 36  One and five-year budget projections for the city general fund and special districts. This report is interactive for tax modeling. WEB-BASED SOFTWARE APPLICATION The CONSULTANT shall make available for use its HDL Coren and Cone Property Tax Web Application, a web-based software application that provides the City with a user-friendly tool to store, search, access and analyze the City’s property tax data (also called the “software application” or “software” in this Agreement. Data in the software application shall be updated monthly to reflect changes in ownership and deed recordings. Assessment appeals data is updated quarterly. As modifications and enhancements are made to the program, the City receives the enhanced version of the software at no additional cost. The City is granted a site license for the software application under this Agreement, which does not limit the number of users. The software can be used to access secured, unsecured, cross reference, possessory interest, mineral rights and SBE non-operating unitary tax rolls. Unsecured assessments are linked to the corresponding secured parcels where parcel numbers match. This allows users to see all property tax records at a particular location. Geographic areas as defined by the City can be created in the software by City staff or, upon supplying maps with the boundary area of each requested geo defined, will be created by the CONSULTANT and are included in the cost of this scope of services. Additional areas can be created at no cost as they become necessary. Property transfer information is updated monthly and the prior sales transactions are stored with each record for reference. Filtering is available for Pre-Proposition 13 owned properties, non- owner occupied properties (absentee owners), specific focused uses, targeted values, and selection of various other property characteristics. The data can be sorted by parcel number, owner, situs address, county use code designation and tax rate area. Data can be exported from the software to Excel, CSV, Text or Html to allow for further analysis through an easy-to-use export feature. Custom exports are also available to link or integrate with city building or code enforcement products. Training will be provided annually at no additional cost to the City and CONSULTANT will provide support for the City’s use of the software, answering questions, providing phone assistance and troubleshooting issues that arise between scheduled training events at no additional cost to the City. The Services, where provided by CONSULTANT’s online-hosted software, include all related services and support necessary to implement the Services detailed in this Scope of Services, including, for example and without limitation, data/content migration, software licensing, online- hosting, maintenance, updates, upgrades, security, and technical and user support as detailed in this Scope of Services and elsewhere in this Agreement, in CONSULTANT’s proposal, and in the Documentation. DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 81 Packet Pg. 504 of 911 Professional Services Rev. Dec.15, 2020 Page 17 of 36 PROPERTY TAX AUDITS The CONSULTANT will perform an analysis of the Assessor Rolls to identify all parcels on the secured, unsecured and cross reference tax rolls and verify that parcel assessed valuations and the resulting taxes are correctly allocated to the City. This analysis is accomplished using specialized computer software, assessor maps, City GIS maps, City records, other pertinent documents, and field investigations. The review will include the lien date rolls noted for the current tax year as well as historical data back for a total of four (4) tax years. A report is prepared related to the properties requiring corrective action with a suggested tax rate area (TRA) and/or correct address and APN and then transmitted to the County Assessor’s office for review and correction and to the client City at the same time. Once the Assessor’s staff has reviewed and corrected the misplaced TRAs, the County returns to our office an accounting of the properties that were corrected and transmitted to the Auditor’s office for tax reassignment. That report is then provided to the client as verification that corrections were made. If necessary, we will review our findings and recommendations with designated City project manager. ON-GOING CONSULTATION (ADDITIONAL SERVICES) During the term of this Agreement, and constituting “Additional Services” under Section 1 (“Scope of Services”) of this Agreement, the CITY, at its sole discretion, may elect to order additional services related to special projects beyond what is described in the Scope of Services. Any such Additional Services are subject to the provisions of this Agreement including without limitation Section 1 (“Scope of Services”), Section 4 (“Not to Exceed Compensation”) and Exhibit C (“Compensation”). DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 82 Packet Pg. 505 of 911 Professional Services Rev. Dec.15, 2020 Page 18 of 36 EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER CONSULTANT shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK ORDER NO.: 2. CONSULTANT NAME: 3. PERIOD OF PERFORMANCE: START: COMPLETION: 4 TOTAL TASK ORDER PRICE: $__________________ BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $_______________ 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT:_____________________________________ 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE:  SERVICES AND DELIVERABLES TO BE PROVIDED  SCHEDULE OF PERFORMANCE  MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): _____________________________ I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 83 Packet Pg. 506 of 911 Professional Services Rev. Dec.15, 2020 Page 19 of 36 EXHIBIT B SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY. Milestones Completion Number of Days/Weeks (as specified below) 1. Property Tax Information and Reporting Services • Delivery of reports specified in Exhibit “A” – Scope of Services including newsletter, additional handouts, revenue projections, and/or of each quarter in January, April, July, and October. Option to delivery annually or monthly, as needed. • Monthly database update • Software training schedule TBD and as needed • Audit and Compliance Services as described in Exhibit “A” – Scope of Services consultation with CONSULTANT Services) If executed per Sections 1 and 4, or per Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement. DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 84 Packet Pg. 507 of 911 Professional Services Rev. Dec.15, 2020 Page 20 of 36 EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below. CITY’s Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 & 2 (Property Tax Analysis and Information Services and Task 3 Total for Services and Reimbursable Expenses $101,800.00 Maximum Total Compensation $111,800.00 REIMBURSABLE EXPENSES CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 85 Packet Pg. 508 of 911 Professional Services Rev. Dec.15, 2020 Page 21 of 36 photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00. DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 86 Packet Pg. 509 of 911 Professional Services Rev. Dec.15, 2020 Page 22 of 36 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT’s schedule of rates is as follows: Hourly Rate Partner $250 Principal $225 Programmer $200 Associate $175 Senior Analyst $125 Analyst $90 Administrative $70 DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 87 Packet Pg. 510 of 911 Professional Services Rev. Dec.15, 2020 Page 23 of 36 EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN. DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 88 Packet Pg. 511 of 911 Professional Services Rev. Dec.15, 2020 Page 24 of 36 DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 89 Packet Pg. 512 of 911 Professional Services Rev. Dec.15, 2020 Page 25 of 36 DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 90 Packet Pg. 513 of 911 Professional Services Rev. Dec.15, 2020 Page 26 of 36 EXHIBIT E DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 91 Packet Pg. 514 of 911 Professional Services Rev. Dec.15, 2020 Page 27 of 36 DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 92 Packet Pg. 515 of 911 Professional Services Rev. Dec.15, 2020 Page 28 of 36 DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 93 Packet Pg. 516 of 911 Professional Services Rev. Dec.15, 2020 Page 29 of 36 DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 94 Packet Pg. 517 of 911 Professional Services Rev. Dec.15, 2020 Page 30 of 36 DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 95 Packet Pg. 518 of 911 Professional Services Rev. Dec.15, 2020 Page 31 of 36 DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 96 Packet Pg. 519 of 911 Professional Services Rev. Dec.15, 2020 Page 32 of 36 DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 97 Packet Pg. 520 of 911 Professional Services Rev. Dec.15, 2020 Page 33 of 36 DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 98 Packet Pg. 521 of 911 Professional Services Rev. Dec.15, 2020 Page 34 of 36 EXHIBIT “F” CYBERSECURITY TERMS AND CONDITIONS In order to assure the privacy and security of the personal information of the City's customers and people who do business with the City, including, without limitation, vendors, utility customers, library patrons, and other individuals and companies, who are required to share such information with the City, as a condition of receiving services from the City or selling goods and services to the City, including, without limitation, the Software as a Service services provider (the "Consultant") and its subcontractors, if any, including, without limitation, any Information Technology ("IT") infrastructure services provider, shall design, install, provide, and maintain a secure IT environment, described below, while it renders and performs the Services and furnishes goods, if any, described in the Statement of Work, Exhibit B, to the extent any scope of work implicates the confidentiality and privacy of the personal information of the City's customers. The Consultant shall fulfill the data and information security requirements (the "Requirements") set forth in Part A below. A "secure IT environment" includes (a) the IT infrastructure, by which the Services are provided to the City, including connection to the City's IT systems; (b) the Consultant's operations and maintenance processes needed to support the environment, including disaster recovery and business continuity planning; and (c) the IT infrastructure performance monitoring services to ensure a secure and reliable environment and service availability to the City. "IT infrastructure" refers to the integrated framework, including, without limitation, data centers, computers, and database management devices, upon which digital networks operate. In the event that, after the Effective Date, the Consultant reasonably determines that it cannot fulfill the Requirements, the Consultant shall promptly inform the City of its determination and submit, in writing, one or more alternate countermeasure options to the Requirements (the "Alternate Requirements" as set forth in Part B), which may be accepted or rejected in the reasonable satisfaction of the Information Security Manager (the "ISM"). Part A. Requirements: The Consultant shall at all times during the term of any contract between the City and the Consultant: (a) Appoint or designate an employee, preferably an executive officer, as the security liaison to the City with respect to the Services to be performed under this Agreement. (b) Comply with the City's Information Privacy Policy: DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 99 Packet Pg. 522 of 911 Professional Services Rev. Dec.15, 2020 Page 35 of 36 (c) Have adopted and implemented information security and privacy policies that are documented, are accessible to the City, and conform to ISO 27001/2 – Information Security Management Systems (ISMS) Standards. See the following: http://www.iso.org/iso/home/store/catalogue_tc/catalogue_detail.htm?csnumber=42103 http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm?csnumber=5029 7 (d) Conduct routine data and information security compliance training of its personnel that is appropriate to their role. (e) Develop and maintain detailed documentation of the IT infrastructure, including software versions and patch levels. (f) Develop an independently verifiable process, consistent with industry standards, for performing professional and criminal background checks of its employees that (1) would permit verification of employees' personal identity and employment status, and (2) would enable the immediate denial of access to the City's confidential data and information by any of its employees who no longer would require access to that information or who are terminated. (g) Provide a list of IT infrastructure components in order to verify whether the Consultant has met or has failed to meet any objective terms and conditions. (h) Implement access accountability (identification and authentication) architecture and support role-based access control ("RBAC") and segregation of duties ("SoD") mechanisms for all personnel, systems, and Software used to provide the Services. "RBAC" refers to a computer systems security approach to restricting access only to authorized users. "SoD" is an approach that would require more than one individual to complete a security task in order to promote the detection and prevention of fraud and errors. (i) Assist the City in undertaking annually an assessment to assure that: (1) all elements of the Services' environment design and deployment are known to the City, and (2) it has implemented measures in accordance with industry best practices applicable to secure coding and secure IT architecture. (j) Provide and maintain secure intersystem communication paths that would ensure the confidentiality, integrity, and availability of the City's information. (k) Deploy and maintain IT system upgrades, patches and configurations conforming to current patch and/or release levels by not later than one (1) week after its date of release. Emergency security patches must be installed within 24 hours after its date of release. (l) Provide for the timely detection of, response to, and the reporting of security incidents, including on-going incident monitoring with logging. (m) Notify the City within one (1) hour of detecting a security incident that results in the unauthorized access to or the misuse of the City's confidential data and information. (n) Inform the City that any third party service provider(s) meet(s) all of the Requirements. (o) Perform security self-audits on a regular basis and not less frequently than on a quarterly basis, and provide the required summary reports of those self-audits to the ISM on the annual anniversary date or any other date agreed to by the Parties. (p) Accommodate, as practicable, and upon reasonable prior notice by the City, the City's performance of random site security audits at the Consultant's site(s), including the site(s) of a third-party service provider(s), as applicable. The scope of these audits will extend to the Consultant's and its third-party service provider(s)' awareness of security policies and practices, systems configurations, access authentication and authorization, and incident detection and response. DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 100 Packet Pg. 523 of 911 Professional Services Rev. Dec.15, 2020 Page 36 of 36 (q) Cooperate with the City to ensure that to the extent required by applicable laws, rules and regulations, and the Confidential Information will be accessible only by the Consultant and any authorized third-party service provider's personnel. (r) Perform regular, reliable secured backups of all data needed to maximize the availability of the Services. Adequately encrypt the City of Palo Alto's data, during the operational process, hosted at rest, and the backup stage at the Vendors' environment (including Vendor's contracting organization's environment). (s) Maintain records relating to the Services for a period of three (3) years after the expiration or earlier termination of this Agreement and in a mutually agreeable storage medium. Within thirty (30) days after the effective date of expiration or earlier termination of this Agreement, all of those records relating to the performance of the Services shall be provided to the ISM. (t) Maintain the Confidential Information in accordance with applicable federal, state, and local data and information privacy laws, rules, and regulations. (u) Encrypt the Confidential Information before delivering the same by electronic mail to the City and or any authorized recipient. (v) Provide Network Layer IP filtering services to allow access only from the City of Palo Alto's IP address to the Vendor environment (primarily hosted for the City of Palo Alto). (w) Offer a robust disaster recovery and business continuity (DR-BCP) solutions to the City for the systems and services the Vendor provides to the City. (x) Provide and support Single Sign-on (SSO) and Multifactor Authentication (MFA) solutions for authentication and authorization services from the "City's environment to the Vendor's environment," and Vendor's environment to the Vendor's cloud services/hosted environment." The Vendor shall allow two employees of the City to have superuser and super-admin access to the Vendor's IT environment, and a cloud-hosted IT environment belongs to the City. (y) Unless otherwise addressed in the Agreement, shall not hold the City liable for any direct, indirect or punitive damages whatsoever including, without limitation, damages for loss of use, data or profits, arising out of or in any way connected with the City's IT environment, including, without limitation, IT infrastructure communications. (z) The Vendor must provide evidence of valid cyber liability insurance policy per the City’s EXHIBIT “D” INSURANCE REQUIREMENTS. DocuSign Envelope ID: 07A82D27-BC85-4369-8B88-4A88E27B07F3 Item 33 Attachment B - Contract No. C23187298B HdL Coren & Cone for Property Tax Consulting Services Item 33: Staff Report Pg. 101 Packet Pg. 524 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Transportation Meeting Date: June 19, 2023 Report #:2304-1357 TITLE Approval of Professional Services Contract with Kittelson & Associates for a Not-to-Exceed Amount of $333,945 for the Bicycle and Pedestrian Transportation Plan Update. CEQA Status: Exempt under Public Resources Code Section 21080.20. RECOMMENDATION Approve of Professional Services Contract (Contract C23185922) with Kittelson & Associates for a Not-to-Exceed Amount of $333,945 for the Bicycle and Pedestrian Transportation Plan Update. BACKGROUND The City adopted its existing Bicycle and Pedestrian Transportation Plan (BPTP) in 2012, and the document needs a comprehensive update to reflect current community needs and desires, more recent trends in cycling and bicycling technology, and to address changes in bicycle and pedestrian planning and design. The objectives of the BPTP Update are to seek robust community feedback; reevaluate implementation progress from previous plans to adjust recommendations for new policies, facilities, and programs; and to determine appropriate criteria and metrics to prioritize recommendations and network routes. The BPTP Update will also further investigate safety data to propose impactful recommendations, explore the role of emerging transportation technologies such as electric-bicycles and micro-mobility devices, and establish big-picture planning to expand bicycling and walking for all user types in support of the City’s 2030 Comprehensive Plan, the Sustainability/Climate Action Plan, a Safe Systems approach, and other planning documents and policies. At the May 17, 2021 meeting, the City Council adopted a resolution supporting the City’s grant application for the State Transportation Development Act (TDA) Article 3 Funds for the BPTP Update project1, and on September 2021, the Metropolitan Transportation Commission (MTC) 1 See Page 2, Item 6, Action Minutes for May 17, 2021 City Council Meeting: https://cityofpaloalto.primegov.com/Public/CompiledDocument?meetingTemplateId=3426&compileOutputType= 1 Item 34 Item 34 Staff Report Item 34: Staff Report Pg. 1 Packet Pg. 525 of 911 approved of the allocation of Transportation Development Act Article 3 (TDA3)2 funds to the City of Palo Alto in the amount of $334,852 for the purposes of updating the Bicycle and Pedestrian Transportation Plan. ANALYSIS The City published the Request for Proposals (RFP) for the BPTP Update on the City’s eProcurement platform, on October 11, 2022. The City received three responsive Proposals from Alta Planning, GHD, and Kittelson & Associates. Table 1. Summary of RFP Process RFP Name/Number Bicycle and Pedestrian Transportation Plan Update | RFP No. 185922 October 11, 2022 November 15, 2022 1,862 36 3 https://pbsystem.planetbids.com/portal/25569/bo/bo- detail/98851 Proposals Price Range $293,168 to $333,862 An evaluation committee comprised of City Office of Transportation Planning Staff, Safe Routes to School City Staff, and a member of the City’s Pedestrian and Bicycle Advisory Committee (PABAC) carefully reviewed each firm’s qualifications and submittals in response to the criteria identified in the RFP: 1. Quality and completeness of proposal 2. Quality, performance and effectiveness of the solution, goods and/or services to be provided by the Proposer 3. Proposers experience, including the experience of staff to be assigned to the project, the engagements of similar scope and complexity 4. Cost to the city 5. Proposer’s financial condition and stability 6. Proposer’s ability to perform the work within the time specified 7. Proposer’s prior record of performance with City or other local, county, or state agency, if applicable 8. Proposer’s compliance with applicable laws, regulations, policies (including City Council policies), guidelines and other governing prior to existing contracts performed by the contractor 2 https://mtc.ca.gov/funding/regional-funding/tda-sta/bicycle-pedestrian-funds-tda-3 Item 34 Item 34 Staff Report Item 34: Staff Report Pg. 2 Packet Pg. 526 of 911 The City received three bids all under the proposed budget, and the evaluation committee identified a preferred service provider based on the best overall score from the proposal and an interview. Based on this approach, staff recommends contracting with Kittelson & Associates who provided a comprehensive approach to the scope of work, demonstrated a clear understanding of Palo Alto and its needs, proposed an innovative approach to engage the community, has extensive experience working with Bay Area communities on developing active transportation planning documents including the City of Berkeley, Dublin, and San Pablo, is under budget, and is to provide exceptional project management. The scope of work Kittelson & Associates proposed includes the following tasks, to be completed within an 18–24-month process, beginning once the contract is executed, anticipated for July 2023: 1. Prepare Detailed Work Plan and Strategy 2. Review Existing Bicycle and Pedestrian Policy and Program Documents 3. Inventory Existing Facility Conditions 4. Community Outreach 5. Bicycle and Pedestrian Network Enhancements 6. Implementation and Funding Strategies 7. Bicycle and Pedestrian Plan Document 8. Project Management and Oversight Community feedback regarding potential new bicycle/pedestrian rail crossings will be sought as part of this contract and will occur at the beginning of the project in the context of optimizing the City's bicycle and pedestrian networks. POLICY IMPLICATIONS The BPTP Update will contain specific policy, project, and program recommendations, and will aim to improve the quality of active transportation options, taking into consideration community feedback, City priorities, more recent trends in cycling and bicycling, and available funds. FISCAL/RESOURCE IMPACT The cost proposal submitted by Kittelson & Associates for the BPTP Update is in the amount of $333,945, including a 10 percent contingency. Sufficient funding for anticipated expenses is available in the FY 2024 Bicycle and Pedestrian Transportation Plan Implementation project (PL- 04010) in the Capital Improvement Fund. The City is eligible to cover the BPTP Update expenditures under TDA Article 3 and can request an allocation of up to $334,852 for this effort, and City staff anticipates that all eligible costs incurred will be reimbursed through the TDA Article 3 payment (reimbursement) process. Item 34 Item 34 Staff Report Item 34: Staff Report Pg. 3 Packet Pg. 527 of 911 STAKEHOLDER ENGAGEMENT The City provided the public procurement process through its eProcurement platform and notified 1,862 firms to encourage participation. In addition, ten firms were contacted directly by Procurement staff to announce availability of the Request for Proposals. Of those notified, forty-three downloaded the proposal documents. This outreach garnered proposals from firms who had not previously bid in Palo Alto. In addition, stakeholders were engaged through the procurement process by including a member of the Pedestrian and Bicycle Advisory Committee on the panel to evaluate vendor proposals and interviews. Specific to the project, Kittelson & Associates developed a structured and robust community engagement plan for the BPTP Update, dividing the community engagement into three phases: 1) Visioning; 2) Needs & Concerns; and 3) Recommended Projects and Programs. These phases will help effectively and meaningfully engage the residents and visitors of Palo Alto. The engagement activities are tailored towards the unique character of the community. At the onset of the BPTP Update effort, Kittelson & Associates will develop a community engagement plan that will explain how the project team will share information and gather input regarding the needs and issues of the public, stakeholders, and interested parties. More specifically, the BPTP Update includes the following meetings and events: •PABAC & CSTSC Meetings •Planning & Transportation Commission Meetings •Rail Committee Meetings •City Council Meetings •Neighborhood and Focus Group Meetings •Street Level Engagement •Community Meetings •Multi-Day Collaborative Work Sessions ENVIRONMENTAL REVIEW California Senate Bill 922 (2022) exempts active transportation plans, such as bicycle transportation plans like the BPTP Update from environmental review under the California Environmental Quality Act (CEQA). ATTACHMENTS Attachment A: Contract with Kittelson & Associates; Contract C23185922 APPROVED BY: Philip Kamhi, Chief Transportation Official Item 34 Item 34 Staff Report Item 34: Staff Report Pg. 4 Packet Pg. 528 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 5 Packet Pg. 529 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 6 Packet Pg. 530 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 7 Packet Pg. 531 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 8 Packet Pg. 532 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 9 Packet Pg. 533 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 10 Packet Pg. 534 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 11 Packet Pg. 535 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 12 Packet Pg. 536 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 13 Packet Pg. 537 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 14 Packet Pg. 538 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 15 Packet Pg. 539 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 16 Packet Pg. 540 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D West Region Operations Leader, VP Vice President and CFO Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 17 Packet Pg. 541 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 18 Packet Pg. 542 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 19 Packet Pg. 543 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 20 Packet Pg. 544 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 21 Packet Pg. 545 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 22 Packet Pg. 546 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 23 Packet Pg. 547 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 24 Packet Pg. 548 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 25 Packet Pg. 549 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 26 Packet Pg. 550 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 27 Packet Pg. 551 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 28 Packet Pg. 552 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 29 Packet Pg. 553 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 30 Packet Pg. 554 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 31 Packet Pg. 555 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 32 Packet Pg. 556 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 33 Packet Pg. 557 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 34 Packet Pg. 558 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 35 Packet Pg. 559 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 36 Packet Pg. 560 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 37 Packet Pg. 561 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 38 Packet Pg. 562 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 39 Packet Pg. 563 of 911 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT’s schedule of rates is as follows: KITTELSON & ASSOCIATES, INC. BILLING RATE SCHEDULE Effective July 1, 2022 The current billing rates for Kittelson & Associates, Inc., staff are as follows: Any billing rate adjustments require approval by the City. Hermanus Steyn $330 Laurence Lewis $330 Associate Engineer/Planner $220 - $250 Amanda Leahy $240 Senior Engineer/Planner $190 - $210 Michael Sahimi $205 Chris Romano $205 Mike Alston $205 Engineer/Planner $170 - $190 Grace Carsky $175 Transportation Analyst $150 - $165 Senior Data Scientist/Developer $200 - $240 Data Scientist/Developer $170 - $200 Data Analyst/Software Developer $130 - $165 Software Technician $100 - $125 Technician II $140 - $155 Jennifer Marks $145 Katie Ayer $145 Technician I $120 - $135 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 40 Packet Pg. 564 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 41 Packet Pg. 565 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 42 Packet Pg. 566 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 43 Packet Pg. 567 of 911 DocuSign Envelope ID: 0B1DE579-246B-43F1-A0A4-C02501A4E56D Item 34 Attachment A - Contract with Kittelson & Associates; Contract C23185922 Item 34: Staff Report Pg. 44 Packet Pg. 568 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Transportation Meeting Date: June 19, 2023 Report #:2305-1525 TITLE Approve and Authorize the City Manager to Execute a Grant Agreement with the Federal Highway Administration (FHWA) to Develop the Palo Alto Safe Streets for All (SS4A) Action Plan by Receiving $160,000 in Federal Funds and Requiring $40,000 in City Matching Funds over Two Years and Approve a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA status – not a project. RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager, or their designee to execute a Funding Agreement (attached) with the Federal Highway Administration (FHWA) for the development of the City’s Safe Streets for All Streets for All action plan. The Agreement will provide up $160,000 in funding, and the City will be required to match up to $40,000 (or 20% of the actual project cost) over two years; and 2. Amend the Fiscal Year 2024 Budget Appropriation for the Capital Improvement Fund (requires a 2/3 vote) by: a. Increasing the Transportation and Parking Improvements project (PL-12000) revenue estimate for grants by $160,000; and b. Increasing the Transportation and Parking Improvements project (PL-12000) contracts appropriation by $160,000. EXECUTIVE SUMMARY This item approves and authorizes the City Manager to execute a grant agreement (Attachment A) to receive $160,000 in funding from the Federal Highway Administration to develop a Safe Streets for All (SS4A) Action Plan for Palo Alto. The City is responsible for a 20% matching portion of the total project cost ($40,000) that will be funded from the Transportation and Item 35 Item 35 Staff Report Item 35: Staff Report Pg. 1 Packet Pg. 569 of 911 Parking Improvements capital project (PL-12000). Jurisdictions with SS4A Action Plans are eligible to apply for SS4A Implementation Grants in subsequent funding cycles distributing $1 billion per year. The SS4A Action Plan will address safety for all road users in Palo Alto, particularly vulnerable road users, and will use the Safe Systems Approach endorsed by Federal Highway Administration. BACKGROUND The Bipartisan Infrastructure Law1 (BIL) established the new Safe Streets and Roads for All (SS4A) discretionary program with $5 billion in appropriated funds over 5 years. The SS4A program funds regional, local, and Tribal initiatives through grants to prevent roadway deaths and serious injuries. The SS4A program supports the U.S. Department of Transportation’s National Roadway Safety Strategy2 and the goal of zero roadway deaths. The SS4A program provides funding for two types of grants: •Planning and Demonstration Grants provide Federal funds to develop, complete, or supplement a comprehensive safety action plan. Having an Action Plan in place is the foundation of the SS4A grant program. The goal of an Action Plan is to develop a holistic, well-defined strategy to prevent roadway fatalities and serious injuries in a locality, Tribe, or region. •Implementation Grants provide Federal funds to implement projects and strategies identified in an Action Plan to address a roadway safety problem. Projects and strategies may be infrastructure, behavioral, and/or operational activities. Applicants must have a qualifying Action Plan that meets the eligibility requirements to apply for Implementation Grants. The Federal Notice of Funding Opportunity (NOFO) was released in May 2022, making available $1 billion for distribution. The City applied for a grant on September 15, 2022, to develop a Safety Action Plan for Palo Alto and was notified of grant award on January 31, 2023. The draft grant agreement was received from the Federal Highway Administration on May 22, 2023. The application was in alignment with FHWA’s Safe Systems Approach to road safety and Palo Alto Comprehensive Plan Policy T-6.2 to reduce fatal and severe injuries on local roadways to zero. ANALYSIS This grant-funded project enables the City to develop the Safe Streets for All Action Plan needed to apply for subsequent SS4A Implementation grants. Other Federal or State funding sources requiring a comprehensive road safety plan will accept the SS4A Action Plan as well, such as the State’s Highway Safety Improvement Program (HSIP). In addition, the Safety Action Plan could be used as the basis of a future Vision Zero program included in the Sustainability 1https://www.congress.gov/bill/117th-congress/house- bill/3684/text#:~:text=SEC.%2024112.%20%3C%3E%20%20SAFE,135%20STAT.%20818%5D%5D 2 https://www.transportation.gov/NRSS Item 35 Item 35 Staff Report Item 35: Staff Report Pg. 2 Packet Pg. 570 of 911 and Climate Action Plan (S/CAP), because improving safety for vulnerable road users is key to reducing vehicle miles traveled (VMT) and growing green travel mode shares. The Valley Transportation Authority compiled a Local Road Safety Plan (LRSP) for Palo Alto and other Santa Clara County cities without LRSPs3 in September 2022. The SS4A grant project will utilize this plan as a basis and will add the following Federally-required elements to create a qualified Safety Action Plan: •A target date for achieving a significant reduction of roadway fatalities and serious injuries •Engagement and collaboration with relevant stakeholders •Equity considerations •Policy and process changes to improve safety •Strategy and Project Selections •Measurement and reporting of progress over time A list of all the required Action Plan components can be found here.4 In addition to supporting the Comprehensive Plan Policy to reduce roadway deaths and severe injuries, this project is in alignment with the following Comprehensive Plan directives: •Goal T-6: Provide a safe environment for motorists, pedestrians and bicyclists on Palo Alto streets. •Policy T-1.3: Reduce GHG and pollutant emissions associated with transportation by reducing VMT and per-mile emissions through increasing transit options, supporting biking and walking, and the use of zero-emission vehicle technologies to meet City and State goals for GHG reductions by 2030. •Policy T-6.1: Continue to make safety the first priority of citywide transportation planning. Prioritize pedestrian, bicycle and automobile safety over motor vehicle level of service at intersections and motor vehicle parking. •Policy T-6.6: Use engineering, enforcement and educational tools to improve safety for all users on City roadways. •Program T6.6.1: Periodically evaluate safety on roadways and at intersections and enhance conditions through the use of signal technology and physical changes. Consider the construction of traffic circles for improved intersection safety. •Policy T-6.7: Use appropriate technology to monitor and improve circulation safety throughout the City. •Program T6.7.1: Evaluate the performance of safety improvements and identify methods to encourage alternative transportation modes. 3 https://d250c782-7e5b-4e38-b841- e8286bb13bc5.filesusr.com/ugd/a24bce_064ca2d5319a4334a7344f512239f0d6.pdf 4 https://www.transportation.gov/sites/dot.gov/files/2022-06/SS4A_Action_Plan_Components.pdf Item 35 Item 35 Staff Report Item 35: Staff Report Pg. 3 Packet Pg. 571 of 911 Upon execution of the grant agreement (Attachment A), the City will prepare and publish a Request for Proposal (RFP) document in Fall 2023 to hire a consultant to prepare the Safety Action Plan. Staff will return to the Council in Winter 2024 for approval of the vendor contract. Staff target initiation of the planning project by February 2024 or earlier. The City expects to complete the project within 24 months from grant agreement execution, though SS4A funds must be spent within five years of grant execution. Once the Safety Action Plan is substantially complete or in draft form, the City can begin to apply for SS4A Implementation grants. An adopted Safety Action Plan is required to receive an Implementation grant. FISCAL/RESOURCE IMPACT Approval for the funding agreement with FHWA requires a budget amendment to increase the Fiscal Year 2024 appropriation for the Transportation and Parking Improvements project (PL- 12000) by $160,000 and recognition of an increase to the revenue estimate for grants by $160,000. The remaining expense of $40,000, the City’s 20% matching contribution, will be covered by funding recommended in the FY 2024 Transportation and Parking Improvements capital project (PL-12000). STAKEHOLDER ENGAGEMENT As noted above, community engagement is a Federally-required element of any SS4A Safety Action Plan. This is in contrast to traditional Local Road Safety Plans that do not require robust community consultation. The City will engage the public in plan development through online surveys, interactive mapping, in-person tabling at community events and activity centers, and via the City’s communication channels. The City will leverage the Planning and Transportation Commission, the Pedestrian and Bicycle Advisory Committee, and the City/School Traffic Safety Committee, a historic partnership between City Departments, the Palo Alto School District, and the Palo Alto Parent Teacher Association Council. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because the grant agreement with the Federal Highway Administration is a government funding mechanism or fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4). ATTACHMENTS Attachment A: Grant Agreement with FHWA for Palo Alto SS4A Action Plan APPROVED BY: Philip Kamhi, Chief Transportation Official Item 35 Item 35 Staff Report Item 35: Staff Report Pg. 4 Packet Pg. 572 of 911 1 of 12 1. Award No. 693JJ32340117 2. Effective Date See No. 17 Below 3. Assistance Listings No. 20.939 4. Award To City of Palo Alto Office of Transportation 250 Hamilton Ave, 5th floor Palo Alto, CA 94301 Unique Entity Id.: W1ZRG61RG5V7 TIN No.: 946000389 5. Sponsoring Office U.S. Department of Transportation Federal Highway Administration Office of Safety 1200 New Jersey Avenue, SE HSSA-1, Mail Drop E71-117 Washington, DC 20590 6. Period of Performance Effective Date of Award through 24 months 7. Total Amount Federal Share: Recipient Share: Other Federal Funds: Other Funds: Total: 160,000 40,000 0 0 200,000 8. Type of Agreement Grant 9. Authority Section 24112 of the Infrastructure Investment and Jobs Act (Pub. L. 117–58, November 15, 2021; also referred to as the “Bipartisan Infrastructure Law” or “BIL”) 10. Procurement Request No. HSSP230290PR 11. Federal Funds Obligated $160,000 12. Submit Payment Requests To See article 20. 13. Payment Office See article 20. 14. Accounting and Appropriations Data 15X0173E50.0000.055SR10500.5592000000.41010.61006600 15. Description of Project Through collaboration with diverse stakeholders, equity analysis, and consideration of low-cost, high-impact strategies citywide, the Palo Alto Safe Streets for All Action Plan will chart a path forward to enhance safety and mobility in Palo Alto. Palo Alto has a high proportion of vulnerable road users, with over 9% of commuters traveling by bike and over 40% of public school students biking to school. RECIPIENT 16. Signature of Person Authorized to Sign ___________________________________ Signature Date Name: Ed Shikada FEDERAL HIGHWAY ADMINISTRATION 17. Signature of Agreement Officer _____________________________________ Date Megan Mavis Item 35 Attachment A - Grant Agreement with FHWA for Palo Alto SS4A Action Plan Item 35: Staff Report Pg. 5 Packet Pg. 573 of 911 2 of 12 U.S. DEPARTMENT OF TRANSPORTATION GRANT AGREEMENT UNDER THE FISCAL YEAR 2022 SAFE STREETS AND ROADS FOR ALL GRANT PROGRAM This agreement is between the Federal Highway Administration (the “FHWA”) and the City of Palo Alto (the “Recipient”). This agreement reflects the selection of the Recipient to receive a Safe Streets and Roads for All (“SS4A”) Grant for the Palo Alto Safe Streets for All Action Plan. The parties therefore agree to the following: ARTICLE 1 GENERAL TERMS AND CONDITIONS 1.1 General Terms and Conditions. (a) In this agreement, “General Terms and Conditions” means the content of the document titled “General Terms and Conditions Under the Fiscal Year 2022 Safe Streets and Roads for All Grant Program,” dated February 8, 2023, which is available at https://www.transportation.gov/grants/ss4a/grant-agreements. Articles 7–30 are in the General Terms and Conditions. The General Terms and Conditions are part of this agreement. (b) The Recipient states that it has knowledge of the General Terms and Conditions. Recipient also states that it is required to comply with all applicable Federal laws and regulations including, but not limited to, the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200); National Environmental Policy Act (NEPA) (42 U.S.C. § 4321 et seq.); and Build America, Buy America Act (BIL, div. G §§ 70901-27). (c) The Recipient acknowledges that the General Terms and Conditions impose obligations on the Recipient and that the Recipient’s non-compliance with the General Terms and Conditions may result in remedial action, termination of the SS4A Grant, disallowing costs incurred for the Project, requiring the Recipient to refund to the FHWA the SS4A Grant, and reporting the non-compliance in the Federal-government-wide integrity and performance system. Item 35 Attachment A - Grant Agreement with FHWA for Palo Alto SS4A Action Plan Item 35: Staff Report Pg. 6 Packet Pg. 574 of 911 3 of 12 ARTICLE 2 APPLICATION, PROJECT, AND AWARD 2.1 Application. Application Title: Palo Alto Safe Streets for All Action Plan Application Date: 9/14/2022 2.2 Award Amount. SS4A Grant Amount: $160, 000 2.3 Award Dates. Period of Performance End Date: See Section 6 on page 1 2.4 Budget Period Budget Period End Date: See Section 6 on page 1 2.5 Action Plan Grant or Implementation Grant Designation. Designation: Action Plan 2.6 Federal Award Identification Number. The Federal Award Identification Number is listed on page 1, line 1. ARTICLE 3 SUMMARY PROJECT INFORMATION 3.1 Summary of Project’s Statement of Work. The award will be used by the City of Palo Alto to develop a comprehensive safety action plan. 3.2 Project’s Estimated Schedule. ACTION PLAN SCHEDULE Planned Draft Action Plan Completion Date: 11/01/2024 Planned Action Plan Completion Date: 02/21/25 Item 35 Attachment A - Grant Agreement with FHWA for Palo Alto SS4A Action Plan Item 35: Staff Report Pg. 7 Packet Pg. 575 of 911 4 of 12 IMPLEMENTATION SCHEDULE NON-CONSTRUCTION Planned NEPA Completion Date: N/A for Action Plan Planned Activity Completion Date: 05/30/2025 3.3 Project’s Estimated Costs. (a) Eligible Project Costs Eligible Project Costs (b) Supplemental Estimated Budget Cost Element Federal Share Non-Federal Share Total Budget Amount Total Budget $160,000.00 $40,000.00 $200,000.00 Item 35 Attachment A - Grant Agreement with FHWA for Palo Alto SS4A Action Plan Item 35: Staff Report Pg. 8 Packet Pg. 576 of 911 5 of 12 ARTICLE 4 RECIPIENT INFORMATION 4.1 Recipient’s Unique Entity Identifier. W1ZRG61RG5V7 4.2 Recipient Contact(s). Philip Kamhi, Chief Transportation Official City of Palo Alto Office of Transportation 250 Hamilton Avenue, 5th Floor Palo Alto, CA 94301 650-329-2136 Philip.Kamhi@cityofpaloalto.org 4.3 Recipient Key Personnel. Name Title or Position Sylvia Star-Lack Transportation Planning Manager 4.4 USDOT Project Contact(s). Darren Thacker Safe Streets and Roads for All Program Manager Federal Highway Administration Office of Safety HSSA-1, Mail Stop: E71-117 1200 New Jersey Avenue, S.E. Washington, DC 20590 (202) 366-6409 darren.thacker@dot.gov and Ashley Cucchiarelli Agreement Officer (AO) Federal Highway Administration Office of Acquisition and Grants Management HCFA-33 12300 W Dakota Ave Lakewood, CO 80228 (720) 963-3589 Item 35 Attachment A - Grant Agreement with FHWA for Palo Alto SS4A Action Plan Item 35: Staff Report Pg. 9 Packet Pg. 577 of 911 6 of 12 ashley.cucchiarelli@dot.gov and Vince Mammano Agreement Officer’s Representative (AOR) Division Administrator FHWA California Division Office 650 Capitol Mall, Ste. 4-100 Sacramento, CA 95814 916-498-5015 Hdaca@dot.gov and Ivy Attah California Division Office Point of Contact Operations Engineer 650 Capitol Mall, Suite 4-100 Sacramento CA 95814 916-498-5860 ivy.attah@dot.gov Backup Calif. Div. Office POC: Maria.Bhatti@dot.gov ARTICLE 5 USDOT ADMINISTRATIVE INFORMATION 5.1 Office for Subaward and Contract Authorization. USDOT Office for Subaward and Contract Authorization: FHWA Office of Acquisition and Grants Management SUBAWARDS AND CONTRACTS APPROVAL Note: See 2 CFR § 200.331, Subrecipient and contractor determinations, for definitions of subrecipient (who is awarded a subaward) versus contractor (who is awarded a contract). Note: Recipients with a procurement system deemed approved and accepted by the Government or by the AO are exempt from the requirements of this clause. See 2 CFR 200.317 through 200.327. Note: This clause is only applicable to Action Plan Grants. Item 35 Attachment A - Grant Agreement with FHWA for Palo Alto SS4A Action Plan Item 35: Staff Report Pg. 10 Packet Pg. 578 of 911 7 of 12 Unless described in the application and funded in the approved award, the Recipient must obtain prior written approval from the AO for the subaward, transfer, or contracting out of any work under this award above the Simplified Acquisition Threshold. This provision does not apply to the acquisition of supplies, material, equipment, or general support services. Approval of each subaward or contract is contingent upon the Recipient’s submittal of a written fair and reasonable price determination, and approval by the AO for each proposed contractor/sub- recipient. Consent to enter into subawards or contracts will be issued through written notification from the AO or a formal amendment to the Agreement. The following subawards and contracts are currently approved under the Agreement by the AO. This list does not include supplies, material, equipment, or general support services which are exempt from the pre-approval requirements of this clause. (Fill in at award or by amendment) 5.2 Reimbursement Requests (a) The Recipient may request reimbursement of costs incurred in the performance of this agreement if those costs do not exceed the funds available under section 2.2 and are allowable under the applicable cost provisions of 2 C.F.R. Part 200, Subpart E. The Recipient shall not request reimbursement more frequently than monthly. (b) The Recipient shall use the DELPHI eInvoicing System to submit requests for reimbursement to the payment office. When requesting reimbursement of costs incurred or credit for cost share incurred, the Recipient shall electronically submit supporting cost detail with the SF 271 (Outlay Report and Request for Reimbursement for Construction Programs) to clearly document all costs incurred. (c) The Recipient’s supporting cost detail shall include a detailed breakout of all costs incurred, including direct labor, indirect costs, other direct costs, travel, etc., and the Recipient shall identify the Federal share and the Recipient’s share of costs. If the Recipient does not provide sufficient detail in a request for reimbursement, the AO may withhold processing that request until the Recipient provides sufficient detail. (d) The USDOT shall not reimburse costs unless the Agreement Officer’s Representative (the “AOR”) reviews and approves the costs to ensure that progress on this agreement is sufficient to substantiate payment. (e) The USDOT may waive the requirement that the Recipient use the DELPHI eInvoicing System. The Recipient may obtain waiver request forms on the DELPHI eInvoicing website (http://www.dot.gov/cfo/delphi-einvoicing-system.html) or by contacting the AO. A Recipient who seeks a waiver shall explain why they are unable to use or access the Internet to register and enter payment requests and send a waiver request to Director of the Office of Financial Management US Department of Transportation, Office of Financial Management B-30, Room W93-431 1200 New Jersey Avenue SE Item 35 Attachment A - Grant Agreement with FHWA for Palo Alto SS4A Action Plan Item 35: Staff Report Pg. 11 Packet Pg. 579 of 911 8 of 12 Washington DC 20590-0001 or DOTElectronicInvoicing@dot.gov. If the USDOT grants the Recipient a waiver, the Recipient shall submit SF 271s directly to: DOT/FAA P.O. Box 268865 Oklahoma City, OK 73125-8865 Attn: Agreement Specialist (f) The requirements set forth in these terms and conditions supersede previous financial invoicing requirements for Recipients. ARTICLE 6 SPECIAL GRANT TERMS 6.1 SS4A funds must be expended within five years after the grant agreement is executed and DOT obligates the funds, which is the budget period end date in section 10.3 of the Terms and Conditions and section [wherever the date it is in this agreement]. 6.2 The Recipient acknowledges that the Action Plan will be made publicly available, and the Recipient agrees that it will publish the final Action Plan on a publicly available website. 6.3 The Recipient demonstrates compliance with civil rights obligations and nondiscrimination laws, including Titles VI of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA), and Section 504 of the Rehabilitation Act, and accompanying regulations. Recipients of Federal transportation funding will also be required to comply fully with regulations and guidance for the ADA, Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, and all other civil rights requirements. 6.4 There are no other special grant requirements for this award. Item 35 Attachment A - Grant Agreement with FHWA for Palo Alto SS4A Action Plan Item 35: Staff Report Pg. 12 Packet Pg. 580 of 911 9 of 12 ATTACHMENT A PERFORMANCE MEASUREMENT INFORMATION Study Area: City of Palo Alto Baseline Measurement Date: 04/07/2025 Baseline Report Date: 05/30/2025 Table 1: Performance Measure Table Measure Category and Description Measurement Frequency Equity Percent of Funds to Underserved Communities: Funding amount (of total project amount) benefitting underserved communities, as defined by USDOT End of period of performance Costs Project Costs: Quantification of the cost of each eligible project carried out using the grant End of period of performance Lessons Learned and Recommendations Lessons Learned and Recommendations: Description of lessons learned and any recommendations relating to future projects of strategies to prevent death and serious injury on roads and streets. End of period of performance Item 35 Attachment A - Grant Agreement with FHWA for Palo Alto SS4A Action Plan Item 35: Staff Report Pg. 13 Packet Pg. 581 of 911 10 of 12 ATTACHMENT B CHANGES FROM APPLICATION INSTRUCTIONS FOR COMPLETING ATTACHMENT B: Describe all material differences between the scope, schedule, and budget described in the application and the scope, schedule, and budget described in Article 3. The purpose of this attachment B is to document the differences clearly and accurately in scope, schedule, and budget to establish the parties’ knowledge and acceptance of those differences. See section 10.1. Scope: No differences Schedule: Original start date: 07/05/23 Original end date: 12/31/2024 Updated start date: 10/1/2023 Updated end date: 05/30/2025 Budget: All $200,000 will be applied to contractual costs. This does not change the funding sources. The table below provides a summary comparison of the project budget. Fund Source Application Section 3.3 Previously Incurred Costs (Non-Eligible Project Costs) Future Eligible Project Costs Item 35 Attachment A - Grant Agreement with FHWA for Palo Alto SS4A Action Plan Item 35: Staff Report Pg. 14 Packet Pg. 582 of 911 11 of 12 ATTACHMENT C RACIAL EQUITY AND BARRIERS TO OPPORTUNITY 1. Efforts to Improve Racial Equity and Reduce Barriers to Opportunity. The Recipient states that rows marked with “X” in the following table are accurate: (Identify a report on that analysis or, if no report was produced, describe the analysis and program/plan or has otherwise instituted equity-focused policies related to project procurement, material sourcing, construction, inspection, hiring, or other activities designed to ensure racial equity in the overall delivery and implementation of the Project. (Identify the relevant programs, plans, or parks, and multimodal mobility investments that either redress past barriers to opportunity or that proactively create new connections and opportunities for underserved communities that are underserved by transportation. (Identify the individuals with disabilities, especially access that reverses the disproportional impacts of crashes on people of color and mitigates neighborhood bifurcation. (Identify the new or improved access in the supporting narrative below.) communities to increase access to goods and job opportunities for those underserved communities. (Identify the new or improved access in the equity and reduce barriers to opportunity, as described in the supporting X equity and reduce barriers to opportunity but, before beginning construction of the project, will take relevant actions described in the supporting narrative equity and reduce barriers to opportunity and will not take those actions under 2. Supporting Narrative. The City of Palo Alto Transportation Element includes a goal of zero severe injury and roadway fatalities. The new Local Road Safety Plan (LRSP) for Palo Alto found that for fatal and severe injury motor vehicle collisions during 2015-2019, 25% of the collisions involved bicycles, and 24% involved pedestrians. Of the total 555 bicycle- and pedestrian-involved collisions that occurred in the study period, 416 involved a bicycle. Item 35 Attachment A - Grant Agreement with FHWA for Palo Alto SS4A Action Plan Item 35: Staff Report Pg. 15 Packet Pg. 583 of 911 12 of 12 Ninety percent of these collisions occurred at an intersection. Community engagement was limited, and equity considerations were absent in LRSP development, highlighting the need for a robust SS4A Action Plan. The City will collaboratively enlist non-profits and diverse stakeholders to work towards more equitable safety practices. Improving roadway infrastructure will benefit the approximately 650 students from historically disadvantaged census tracts in adjacent East Palo Alto who attend school in Palo Alto. The City will engage the public in plan development through online surveys, interactive mapping, in-person tabling at community events and activity centers, and via the City’s communication channels. The City will leverage the Planning and Transportation Commission, the Pedestrian and Bicycle Advisory Committee, and the City/School Traffic Safety Committee, a historic partnership between City Departments, the Palo Alto School District, and the Palo Alto Parent Teacher Association Council. Item 35 Attachment A - Grant Agreement with FHWA for Palo Alto SS4A Action Plan Item 35: Staff Report Pg. 16 Packet Pg. 584 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: June 19, 2023 Report #:2305-1531 TITLE Approval of Contract Number C23187284 with Michael Baker International (MBI) for a Not-to Exceed Amount of $211,310 to Provide Administration and Consulting Services for the City’s Community Development Block Grant (CDBG) Program for a Term of Two-years Through June 2025. Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section 15061(b)(3). RECOMMENDATION Staff recommends that the City Council: Approve and authorize the City Manager or their designee to execute Contract C23187284 with Michael Baker International for a not-to exceed amount of $211,310 to provide administration and consulting services for the City’s Community Development Block Grant (CDBG) Program for a term of two-years through June 2025, with the option of a third-year renewal. EXECUTIVE SUMMARY On February 15, 2023, a request for formal proposals (RFP) was posted on the PlanetBids Vendor Portal for administration and consulting services for the City’s Community Development Block Grant (CDBG) Program. The solicitation period was held for 20 days, with proposals due on March 7, 2023. The City received two proposals: 1) Michael Baker International (MBI) and 2) California Consulting. After a thorough review of the proposals, Michael Baker International was selected based on their extensive CDBG-specific experience and overall quality and responses in their proposal. MBI addressed all the requirements outlined in the RFP. BACKGROUND Since November 2021, the City has been relying on consultant services to administer the CDBG program. Prior to this time, the City had a permanent part-time staff person fulfilling this role Item 36 Item 36 Staff Report Item 36: Staff Report Pg. 1 Packet Pg. 585 of 911 augmented with ongoing consultant support. Michael Baker International was assisting the City prior to the departure of CDBG staff specialist, and the firm has continued to work and expanded its scope to a comprehensive program management role. With the selection of MBI, administration of the CDBG program will continue uninterrupted. The term of the City’s current one-year contract with MBI will end June 30, 2023 and, in anticipation of this, the City released an RFP for CDBG Administration in February 2023. The RFP was for full CDBG program management for a two-year term with the option to renew for a third year. The Planning and Development Services Department does not have the experienced staffing resources needed to fully manage the CDBG program. The CDBG program regulations and requirements are complex and require a thorough understanding of federal regulations, program guidelines, and reporting requirements. The consultant administering the program should be able to ensure compliance with these requirements, manage the grant budget, and monitor the progress of the funded projects. In addition, the consultant is expected to have knowledge of best practices in community development, including affordable housing development, economic development, and infrastructure improvements. Overall, administering the CDBG program requires a combination of technical expertise and knowledge of community development principles. CDBG Program Summary The CDBG program is a federal program that provides funding to local and state governments for community development activities. The program was created by the Housing and Community Development Act of 1974 and is administered by the Department of Housing and Urban Development (HUD). The primary objective of the CDBG program is to provide affordable housing, improve living conditions, and create economic opportunities for low- and moderate- income households. The program provides grants to eligible communities to support a wide range of activities, including infrastructure development, public facilities and services, and job creation. For more information about the City’s CDBG program and activities, please visit: www.cityofpaloalto.org/cdbg. ANALYSIS The City needs consultant services to provide CDBG program administration assistance to maintain and carry forward the program. Currently, the City does not have the appropriate staffing resources to fulfill this role successfully. Approval of this contract will provide the City with continuity of services for up to three years. During this fiscal year, the City engaged in preliminary discussions to potentially transition the CDBG program administration to Santa Clara County. In FY 2024, staff will continue to explore this option, and if it presents as a viable path forward, staff will return to City Council for discussion. Item 36 Item 36 Staff Report Item 36: Staff Report Pg. 2 Packet Pg. 586 of 911 PROCUREMENT PROCESS A RFP for the project was posted on the PlanetBids, the City’s eProcurement platform, and 1,250 vendors were notified. The solicitation period was for 20 days and closed on March 7, 2023. Staff received two proposals for evaluation. Table 1: Summary of Request for Proposal Proposal Description Proposed Length of Project Number of Vendors Notified Number of Proposal Packages Downloaded Total Days to Respond to Proposal Pre-Proposal Meeting Pre-Proposal Meeting Date Number of Proposals Received Proposal Price Range Public Link to Solicitation In the consultant selection process, a heavy emphasis was placed on expertise with CDBG program administration as well as a breath of services. As noted above, the City relies on this consultant to handle the complex federal regulations and requirements, program guidelines, and reporting requirements to ensure compliance with annual funding allocations and grants. MBI’s proposal met the evaluation criteria identified in the RFP and was identified as the best candidate for assisting the City based on the criteria for experience with CDBG procedures and technical expertise with CDBG program administration. Although the second proposal was significantly lower in cost, it did not adequately address the specific needs outlined in RFP requirements, nor did it demonstrate sufficient experience and knowledge in CDBG administration. Due to its complexity, the program requires a depth of understanding and experience to successfully adhere to the federal regulations and guidelines. Failure to meet strict requirements could result in the City refunding the federal government using General Fund. MBI has established experience with CDBG administration and submitted a comprehensive proposal that fully addressed service requirements. For additional details on the services to be provided by MBI, please see Attachment A. Item 36 Item 36 Staff Report Item 36: Staff Report Pg. 3 Packet Pg. 587 of 911 FISCAL/RESOURCE IMPACT There are no anticipated impacts to the City’s general fund with the approval of this contract. The administration of the CDBG program has historically been funded by the CDBG entitlement grant. The contract with MBI will continue to be funded by the CDBG federal funding. Staff will include funding for the second year and possibly the third year in the respective future year’s budget. ENVIRONMENTAL REVIEW The approval of an agreement for administrative and consulting services is not an action subject to environmental review under the California Environmental Quality Act. ATTACHMENTS Attachment A: Contract with Michael Baker International, C23187284 APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 36 Item 36 Staff Report Item 36: Staff Report Pg. 4 Packet Pg. 588 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 5 Packet Pg. 589 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 6 Packet Pg. 590 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 7 Packet Pg. 591 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 8 Packet Pg. 592 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 9 Packet Pg. 593 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 10 Packet Pg. 594 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 11 Packet Pg. 595 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 12 Packet Pg. 596 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 13 Packet Pg. 597 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 14 Packet Pg. 598 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 15 Packet Pg. 599 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 16 Packet Pg. 600 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 17 Packet Pg. 601 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 18 Packet Pg. 602 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 19 Packet Pg. 603 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 20 Packet Pg. 604 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 21 Packet Pg. 605 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 22 Packet Pg. 606 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 23 Packet Pg. 607 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 24 Packet Pg. 608 of 911 Item 36 Attachment A - Contract with Michael Baker International, C23187284 Item 36: Staff Report Pg. 25 Packet Pg. 609 of 911 City Council Staff Report From: City Manager Report Type: CONSENT ITEM Lead Department: Administrative Services Meeting Date: June 19, 2023 Report #:2305-1568 TITLE Approval of Amendment No. 1 to the Lease Agreement between the Palo Alto Unified School District (PAUSD) (Landlord) and the City of Palo Alto (Tenant) for Extended Day Care Spaces for an Initial 12-Month Term, Rent Not to Exceed $707,676 per Year; CEQA Status – Not a Project RECOMMENDATION Staff recommends that the City Council authorize the City Manager or their designee to execute the Amendment No. 1 to the Lease Agreement between the Palo Alto Unified School District (PAUSD) and the City of Palo Alto (City) for Extended Day Care premises. Amendment No. 1 renews the term of the lease for an additional 12 months ending June 30, 2024 at the same base annual rent of $707,676 and may be renewed for three additional one-year terms upon mutual written agreement. BACKGROUND On June 20, 2022, the City Council approved a lease for elementary school sites from PAUSD to sublease to providers of afterschool care (CMR: 144561). The current lease is scheduled to expire on June 30, 2023. An amendment for the Extended Day Care sites has been negotiated to renew the term for one year and provide options to renew for three additional one-year terms, not to exceed 5 total years, upon the mutual written agreement of the parties. The agreement with PAUSD to provide space for extended day care at elementary school sites began in 1989 as a component of the parties’ lease agreement that also included a lease on the former 35-acre Cubberley High School site and a Covenant Not to Develop five neighborhood elementary school sites. The current agreement was amended several times before the current standalone agreement for the 12 extended day care sites was executed on July 1, 2022. The 1 06/20/2022 City Council, Approval of Lease Agreement between Palo Alto Unified School District (Landlord) and City of Palo Alto (Tenant) for Extended Day Care Sites for 12 months, Rent Not to Exceed $707,676 per Year https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20220620/20220620pccsm-amended-final-final.pdf Item 37 Item 37 Staff Report Item 37: Staff Report Pg. 1 Packet Pg. 610 of 911 current agreement is scheduled to expire on June 30, 2023 and the parties desire to extend the terms of the agreement to continue City-operated extended day childcare services provided by Palo Alto Community Child Care (PACCC)2 and Kid’s Choice3. ANALYSIS Staff has negotiated an amendment to the lease agreement with PAUSD for the Extended Day Care Sites under the same general terms as the current agreement (Attachment A). PAUSD is accepting an amendment to allow for one-year extensions currently to align with their operating agreements with the childcare providers. The amendment extends the expiration date to June 30, 2024 and provides the option for three additional one-year extensions, up to June 30, 2027, exercisable upon ninety (90) day notice from either party and mutual agreement. All other the terms of the lease remain the same. The base rent will remain $58,973 per month per site for an annual total rent of $707,676. The City will continue to be responsible for minor maintenance and utilities, estimated at approximately $4,000 per month per site for an approximate annual total of $48,000. Otherwise, the terms remain the same. TIMELINE The lease agreement went to PAUSD’s Board on June 6, 2023 for an initial discussion and will be presented again on June 20, 2023 for action. If approved, the amendment will commence on July 1, 2023. After the amendment is fully executed, staff will extend the City’s sublease to PACCC and Kid’s Choice for the 2023 – 2024 school year, which does not require Council approval. FISCAL/RESOURCE IMPACT The base rent for the new Extended Day Care lease will remain at $58,973 per month or $707,676 per year. The current base rent collected from PACCC and Kid’s Choice for the Extended Day Care Sites total $7,380.17 per month or $88,562.04 per year, with a 3% increase annually. There are sufficient funds in the FY 2024 Proposed Operating Budget to support the recommendations in this report. Funding is subject to City Council approval through the annual budget process. POLICY IMPLICATIONS Continuing to lease the Extended Day Care Sites from PAUSD is consistent with policies and programs in the Comprehensive Plan promoting City-PAUSD collaboration and the effective provision of community services. STAKEHOLDER ENGAGEMENT The City and PAUSD collaborated on development of the new amendment to provide options to extend the existing agreement in one (1) year terms through 2027. 2 Palo Alto Community Child Care (PACCC); https://paccc.org/ 3 Kids Choice After School Program; https://kidschoiceafterschoolcare.org/ Item 37 Item 37 Staff Report Item 37: Staff Report Pg. 2 Packet Pg. 611 of 911 ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378(b)(5), because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. ATTACHMENTS Attachment A: Amendment No. 1 to Extended Day Care Lease with City of Palo Alto and PAUSD APPROVED BY: Kiely Nose, Assistant City Manager Item 37 Item 37 Staff Report Item 37: Staff Report Pg. 3 Packet Pg. 612 of 911 Item 37 Attachment A - Amendment No. 1 to Extended Day Care Lease with City of Palo Alto and PAUSD Item 37: Staff Report Pg. 4 Packet Pg. 613 of 911 Item 37 Attachment A - Amendment No. 1 to Extended Day Care Lease with City of Palo Alto and PAUSD Item 37: Staff Report Pg. 5 Packet Pg. 614 of 911 Item 37 Attachment A - Amendment No. 1 to Extended Day Care Lease with City of Palo Alto and PAUSD Item 37: Staff Report Pg. 6 Packet Pg. 615 of 911 Item 37 Attachment A - Amendment No. 1 to Extended Day Care Lease with City of Palo Alto and PAUSD Item 37: Staff Report Pg. 7 Packet Pg. 616 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Community Services Meeting Date: June 19, 2023 Report #:2305-1588 TITLE Approval of a Professional Services Agreement (Contract No. C23184669A) with LifeMoves for the provision of Homeless Outreach Services in an Amount Not to Exceed of $460,000 for a term of two years; CEQA status – not a project. RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or their designee to execute Contract No. C23184669A (Attachment A) with LifeMoves to provide outreach services to the unhoused for a term of two years and a total amount not-to-exceed $460,000. EXECUTIVE SUMMARY If approved, the scope of services in this contract provides for outreach services to unhoused individuals for a two-year period. Services will include regular street outreach to locate and engage with unhoused individuals where they are in the Palo Alto area, to build trust, increase awareness of services and resources, improve neighbor relations, act as a resource to local businesses and, when feasible, connect them with support services including shelter, housing, government benefits, mental health, substance abuse treatment, or employment training among other needs. A small portion of the outreach team’s time will be spent on Stanford University land as part of a revenue agreement between Stanford and the City. This contract is considered a pilot. At the end of the contract term and upon review of the service outcomes and available funding, it will be determined whether and how future homeless outreach services will be provided by the City. Item 38 Item 38 Staff Report Item 38: Staff Report Pg. 1 Packet Pg. 617 of 911 BACKGROUND The need for outreach services to the unhoused was first brought to the Council on April 5, 2021, as part of study session on Services to the Unhoused in Palo Alto1 at which Council was asked to consider four areas of support for the unhoused, including “Outreach/Street Outreach Case Workers for Unhoused and Mental Health Support”. At that time staff explained that building trust with unhoused individuals to help them to address their needs is most effective with the help of a consistent outreach case worker. A City funded outreach case worker could provide services to other vulnerable populations regularly using public spaces such as parks, libraries, and community centers, Staff also shared that the City does not have any organization under contract specifically to perform this function. This concept was reintroduced on August 30, 2021, during a Council discussion on “Direction on Strategies Related to Services for Unhoused Palo Alto Residents, Including Potential Emergency Shelter, and Adoption of a Resolution Endorsing the Santa Clara County Community Plan to End Homelessness 2020-25”2. At that time, Council directed staff to “Return with a proposal for an outreach team to the unhoused, which will include case management resources, additional Police resources, and program coordination staff. Funding in the amount of $100,000 was approved on October 25, 2021, as a budget amendment as part of a discussion on the “Preliminary Q1 FY 2022 Financial Status to the FY 2022”3. ANALYSIS The City issued a Request for Proposal (RFP) for Homeless Outreach Services on the city’s eProcurement platform, on May 19, 2022. The City received one response which was reviewed and deemed non-responsive. Feedback received from other organizations was that the funding available was not sufficient to safely and adequately provide the services listed in the scope of services. The scope was reassessed, and additional funding became identified by means of the Permanent Local Housing Allocation (PLHA) Entitlement Funding (a state funding source administered by the State of California Department of Housing and Community Development (HCD) to local jurisdictions)4. The city received the PLHA award letter from HCD on December 20, 1 City Council, April 5, 2021, Agenda Item #2, SR #12133; https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id-12133.pdf 2 City Council, August 30, 2021, Agenda Item #8, SR #13521; https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2021/08-august/20210830/20210830pccsm-amended-for-print-linked.pdf 3 City Council, October 25, 2021, Action Minutes, Action Item #5; https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2021/10-october/20211025/20211025amccs.pdf 4 City Council, October 24, 2022, Agenda Item #5; SR #14715 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20221024/20221024pccsm-amended.pdf Item 38 Item 38 Staff Report Item 38: Staff Report Pg. 2 Packet Pg. 618 of 911 2022, and is still awaiting the HCD Standard Agreement for PLHA funding for signatures which will enable a request for the disbursement of the funds5. An updated RFP was released with an increased budget, see Table 1 below for details. Table 1. Summary of RFP Process Request for Proposal 11/10/22 Proposal Due 12/15/22 Total Days to Respond to RFP 34 Number of Proposals Received 3 Public Link to Solicitation https://pbsystem.planetbids.com/portal/25 569/bo/bo-detail/99724 Proposal Price Range $218,730 - $230,000 per fiscal year An evaluation committee comprised of staff from the City’s Office of Human Services, City Manager’s Office and a representative from Stanford University’s Office of Community Engagement carefully reviewed each firm’s qualifications and submittals in response to the criteria identified in the RFP: 1. Quality and completeness of proposal; 2. Quality, performance and effectiveness of the solution, goods and/or services to be provided by the Proposer; 3. Proposers experience, including the experience of staff to be assigned to the project, the engagements of similar scope and complexity; 4. Cost to the city; 5. Proposer’s financial condition and stability; 6. Proposer’s ability to perform the work within the time specified; 7. Proposer’s prior record of performance with City or other local, county or state agency; 8. Proposer’s compliance with applicable laws, regulations, policies (including City Council policies), guidelines and orders governing prior or existing contracts performed by the contractor. 5 Permanent Local Housing Allocation program (PLHA) Award letter to Palo Alto from California Department of Housing and Community Development Department – December 20, 2022; https://www.cityofpaloalto.org/files/assets/public/community-services/human-services/plha-award-letter-to- palo-alto-from-california-department-of-housing-and-community-development-department.pdf Item 38 Item 38 Staff Report Item 38: Staff Report Pg. 3 Packet Pg. 619 of 911 Proposals were received from three organizations: Move Mtn. View, LifeMoves and Peninsula HealthCare Connections. The evaluation committee reviewed each proposers’ responses to the services requested in the scope of services and a series of additional questions that sought to assess the proposers’ approach to outreach, reducing homelessness, cultural competency, and measurement tools to assess success towards reaching proposed contract goals. The evaluation committee selected LiveMoves as the firm best qualified to provide services requested by the City. They provided a comprehensive approach to the scope of work, demonstrated a clear understanding of Palo Alto and its needs, and have extensive experience working with providing Homeless Outreach Services in several cities in the Bay Area. Services to be provided include regular street outreach to locate and engage with unhoused individuals where they find themselves in the Palo Alto area, in order to build trust, increase awareness of services and resources, improve neighbor relations, act as a resource to local businesses and, when feasible, connect them with support services including shelter, housing, government benefits, mental health, substance abuse treatment, or employment training among other needs. For the specific program objectives, tasks and outcomes measures as part of this contract, see full scope of services in the contract (Attachment A). This program differs from the Downtown Streets Team employment services program which is also on the City Council agenda for adoption on June 19, 2023. The employment services program, proposed to be provided by Downtown Streets Team, is intended to provide job readiness to homeless and or extremely low-income individuals in the Palo Alto community. Both programs are part of the City’s ecosystem to support homeless and or extremely low- income individuals in Palo Alto. FISCAL/RESOURCE IMPACT Funding for this contract is available through a combination of funding sources. The primary funding source will be the Permanent Local Housing Allocation (PLHA) entitlement funding that is expected to be distributed. Additional funding support will be from a contract with Stanford University for services ($25,000) and the City’s General Fund ($100,000). Below is the breakdown by year, the budget amendments to recognize the PLHA and Stanford University revenues and fund this contract are included in the FY 2024 Budget for Council consideration and adoption on June 19th, 2023: - Year 1 $230,000: $116,000 PLHA entitlement (reflect entitlement year 2019), $25,000 Stanford University, and remaining costs to be covered by the City’s General Fund Community Services Department (appropriation for homeless outreach services) Item 38 Item 38 Staff Report Item 38: Staff Report Pg. 4 Packet Pg. 620 of 911 - Year 2 $230,000: $209,000 PLHA entitlement (reflect entitlement year 2020 and 2021), $21,000 Stanford University As a two-year pilot contract, funding beyond these years if continuation of services is desired would need to be identified. This would be an eligible expense for the new Business Tax receipts for affordable housing and unhoused services or future PLHA entitlement funding in the future. STAKEHOLDER ENGAGEMENT Services to unhoused community members, including the concept of homeless outreach services, was discussed at Council Meeting on April 5, 2021, and August 30, 2021, and the public was able to give input during oral communications. The concept was also discussed during a meeting of the Palo Alto Homeless Services Providers Committee on April 8, 2021. ENVIRONMENTAL REVIEW Approval of this contract is not a project under the California Environmental Quality Act (CEQA) per CEQA Guidelines 15061(b)(3). ATTACHMENTS Attachment A –C23184669A Homeless Outreach Agreement - LifeMoves APPROVED BY: Kristen O'Kane, Community Services Director Item 38 Item 38 Staff Report Item 38: Staff Report Pg. 5 Packet Pg. 621 of 911 CITY OF PALO ALTO CONTRACT NO. C23184669A AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND LIFEMOVES This Agreement is entered into as of the 19th day of June , 2023 , by and between the CITY OF PALO ALTO, a California chartered municipal corporation LIVEMOVES, a California Non-Profit Corporation, located at 181 Constitution Drive, Menlo Park, CA 94025 (CONSULTANT ). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A. CITY intends to provide outreach services to unhoused individuals (the to engage a consultant to provision of a range of services to meet and engage unhoused individuals where they are, including outreach services, welfare checks, case management, service coordination, shelter access and housing navigation services in connection with the Project (the , as detailed more fully in Exhibit A). B. CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, . NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 30, 2025 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, . Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner to extend the term or the schedule for performance shall not preclude recovery of damages for delay if Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 6 Packet Pg. 622 of 911 the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed any reimbursable expenses specified therein, and the maximum total compensation shall not exceed Four Hundred Sixty Thousand Dollars ($460,000.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled SCHEDULE OF Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under , its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 7 Packet Pg. 623 of 911 SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, unemployment compensation, insurance, and other similar responsibilities re of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT provision of the Services only, and not as to the means by which such a result is obtained. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transf hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING. No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Katherine Finnigan, kfinnigan@lifemoves.orgas the to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTA roject Manager or any other key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement Project Manager. CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY Project Manager is Minka Van Der Zwaag, Community Services Department, Office of Human Services Division, 250 Hamilton Avenue, Palo Alto, CA, 94301, Telephone: (650) 463-4953. Project M execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 8 Packet Pg. 624 of 911 models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services. SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, . CONSULTANT and its contractors, if any, shall obtain Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 9 Packet Pg. 625 of 911 a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days prior written notice of the cancellation or modification. If the CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT s liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving Sixty (60) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination. 19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 10 Packet Pg. 626 of 911 termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises. 21.3. If the CONSULTANT meets the definition of Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 11 Packet Pg. 627 of 911 nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CI Environmentally Preferred Purchasing policies which are available at CITY Purchasing Department, hereby incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department ffice. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 12 Packet Pg. 628 of 911 CONTRACTS. 26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract: (1) is not a public works contract; (2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j). . For purposes of this Section 27 repair, or improvement of any public structure, building, road, or other public improvement of any kind. (Cal. Pub. Cont. Code § 9204.) Per California Public Contract Code Section 9204, for Public Works Projects, certain claims procedures shall apply, as set forth in This Project is not a 9204 Public Works Project. SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement. 28.2. limit Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 13 Packet Pg. 629 of 911 prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions. 29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time. 29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) event of a conflict between the exhibits (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 14 Packet Pg. 630 of 911 reference only and are not intended to define or limit the scope of any provision of this Agreement. 29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: EXHIBIT A: SCOPE OF SERVICES EXHIBIT A-1 PROFESSIONAL SERVICES TASK ORDER EXHIBIT B: SCHEDULE OF PERFORMANCE EXHIBIT C: COMPENSATION EXHIBIT C-1: SCHEDULE OF RATES EXHIBIT D: INSURANCE REQUIREMENTS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 15 Packet Pg. 631 of 911 CONTRACT NO. C23184669A SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: __________________________ City Attorney or designee CONSULTANT LIFEMOVES Officer 1 By:__________________________________ Name:_______________________________ Title:________________________________ Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 16 Packet Pg. 632 of 911 EXHIBIT A SCOPE OF SERVICES Through the City of Palo Alto Homeless Outreach Services program, the City seeks to support, expand, and and innovative strategies to effectively engage with unsheltered individuals in Palo Alto. The Palo Alto Homeless Outreach Services team will be staffed by two full-time outreach workers who are dedicated to this program. The outreach workers will be engaging with unsheltered Palo Alto residents 40 hours per week, with a regular work schedule to be determined after assessing the optimal window of time to meet with those unhoused local residents. LifeMoves will provide additional staff support should a member of the Palo Alto Homeless Outreach Services team be absent for a significant length of time. A Homeless Outreach Team (HOT) director will supervise the outreach workers and coordinate outreach efforts in Palo Alto. Scope of Work/Tasks Consultant will: Provide Supervision: Assign a HOT director (0.1 FTE) to ensure the delivery of high-quality services and provide oversight for the two outreach workers assigned to this program. Provide Outreach Services: Hire or assign at least two (2.0 FTE) outreach workers to the Palo Alto Homeless Outreach Team (PA HOT). At least one outreach worker will be bilingual, with an ability to speak Spanish and English. For those who are unsheltered, LifeMoves outreach workers will: Provide customized outreach and engagement services in the field, building upon current best practices and protocols used by the LifeMoves HOT program within the County of San Mateo and other LifeMoves outreach programs; o Proactively seek out and develop relationships through repeated contacts with unhoused individuals throughout the community, while maintaining a regular presence within the community. The outreach workers will seek to engage with local, unsheltered individuals living on the streets, in areas not meant for human habitation or in vehicles (personal and recreational vehicles). o Frequent locations that include Palo Alto retail settings, public transportation hubs, civic facilities, public parking garages and lots, isolated spaces, parks and spaces open to the public for recreation and reflection, areas where vehicularly housed individuals gather, and other locales that are not meant for human habitation. Outreach is conducted primarily in the field where clients live and spend time; o Connect individuals to healthcare, transportation services, or services addressing other basic needs; o Offer supplies or other items to assist clients with basic needs and build trust; o Connect individuals to the Coordinated Assessment System (CAS) and assist them in completing VI- SPDAT assessments, as needed; Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 17 Packet Pg. 633 of 911 o Seamlessly transfer clients requesting case management and housing assistance to colleagues at LifeMoves programs or sites, including the Opportunity Services Center, or other local agencies, and; o Execute additional outreach and assistance during inclement weather and other emergencies. For concerned residents, local partners, and the retail community, LifeMoves outreach workers will: Offer timely response and technical expertise to support public safety for all community members, including service and medical providers, law enforcement, City or County officials, stakeholders, or other community members; o Provide rapid acknowledgement to requests for contact and support to unsheltered homeless individuals or households in Palo Alto. Staff will respond within one business day, Monday Friday; o Locate and support individuals who are on a - list for the City of Palo Alto, or who are the subject of rapid response inquiries in the City; o Offer intervention techniques to community stakeholders on best practices for interacting with unhoused individuals in crisis; o Build rapport and develop positive relationships with business owners, local partners, law enforcement, residents living near to locations where unsheltered individuals congregate or spend significant time, and civic collaborators (including representatives of Stanford University) concerned about homelessness in the community; o Establish a trusted presence as a LifeMoves ambassador within Palo Alto, including wearing LifeMoves-branded attire and associated credentials; o Participate in regular accountability meetings, forge additional connections with other stakeholders, and share trends and lessons learned in the community, and; o Proactively identify and connect with unhoused Palo Alto residents with the goal of moving them to stable housing. Reporting Requisites and Deliverables: Maintain a comprehensive log of outreach activities and contacts, including types of interactions, locations, identified needs/issues, and services, connections, and resources provided Collect and document data as required and assist in compiling statistical data in Housing Management Informational Systems (HMIS) and the client data base Submit detailed outreach reports to the City. Specific items to be tracked will be determined between the City and Provider o LifeMoves (Provider) will provide a quarterly activity report to demonstrate progress toward meeting Scope of Program Services within 15 days of agreed upon deadlines (dates to be determined once contract established). Each report will include information from the previous three months as well as other requested information from the City of Palo Alto. o The final report will focus on the preceding six months, but also provide data on contracted services for the entire contract period. Reports will be prepared in the format agreed upon by the City and LifeMoves (Provider). o Meet at least quarterly with the contract manager to review outreach reports and service provisions Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 18 Packet Pg. 634 of 911 Professional Services Rev. Dec.15, 2020 Page 1 of 21 Objectives and Metrics: During the term of the Agreement, Consultant will report on the following objectives: Metric Contract Period (June 2023 June 2025) 1 Number of unduplicated clients who receive outreach and engagement services 200 individuals 3 Number of unduplicated clients who are connected to ongoing health services 80 individuals 4 Number of unduplicated clients who are referred for case management services 80 individuals Additional Outcomes: Outreach workers will refer clients to the appropriate agencies for services and may provide case services, enrollment into an interim housing program, and exits to permanent housing will be recorded by the agency providing services; in the case of LifeMoves, through the LifeMoves proprietary database and HMIS, and for other agencies, through requests for information and HMIS. Every effort will be made to report on the following outcomes, but the outcomes are not quantified here because they do not fall under the scope of work of the outreach workers funded through this contract. Outcomes Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 19 Packet Pg. 635 of 911 Professional Services Rev. Dec.15, 2020 Page 2 of 21 EXHIBIT B SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed . Milestones Completion Number of Days/Weeks (as specified below) from NTP 1. Contract Execution June, 2023 2. Hiring and Training Staff June 2023 3. Program Opens July 1, 2023 4. Program offers outreach services to unhoused individuals. Through contract expiration. 5. 6. 7. 8. 9. 10. Optional Schedule of Performance Provision for On-Call or Additional Services Agreements. (This provision only applies if checked and only applies to on-call agreements per Section 1 or agreements with Additional Services per Section 4.) The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1 (Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional Services, provided in all cases that the schedule of performance shall fall within the term as provided in Section 2 (Term) of this Agreement. Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 20 Packet Pg. 636 of 911 Professional Services Rev. Dec.15, 2020 Page 3 of 21 EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for Services performed in accordance with the terms and conditions of this Agreement, and as set forth in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount for each task set forth below. Project Manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below, provided that the total compensation for the Services, including any specified reimbursable expenses, and the total compensation for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts set forth in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. Scope Labor Categories Est. Hourly Rate (e.g., Consultant, Sr. Consultant, etc.) Hours Rate Outreach Worker 2884 64.30 185,441.20 Task 1: Outreach & Engagement Outreach Worker 2884 64.30 185,441.20 Supervision 288 96.47 27,783.36 $ 398,665.76 TOTAL NOT TO EXCEED, TASK 1 Outreach Worker 385 $ 64.30 $ 24,755.50 Task 2: Connection to Services Outreach Worker 385 $ 64.30 $ 24,755.50 Supervision 38 $ 96.47 $ 3,665.86 53,176.86 TOTAL NOT TO EXCEED, TASK 2 Outreach Worker 336 $ 64.30 $ 21,604.80 Task 3: Connection to Shelter / Housing Outreach Worker 336 $ 64.30 $ 21,604.80 Supervision 34 $ 96.47 $ 3,279.98 Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 21 Packet Pg. 637 of 911 Professional Services Rev. Dec.15, 2020 Page 4 of 21 $ 46,489.58 TOTAL NOT TO EXCEED, TASK 3 3) 460,000.00 REIMBURSABLE EXPENSES ordinary business expenses, such as administrative, overhead, administrative support time/overtime, information systems, software and hardware, photocopying, telecommunications (telephone, internet), in-house printing, insurance and other ordinary business expenses, are included within the scope of payment for Services and are not reimbursable expenses hereunder. Reimbursable expenses, if any are specified as reimbursable under this section, will be reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be reimbursed are: NONE up to the not-to-exceed amount of: $0.00. Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 22 Packet Pg. 638 of 911 Professional Services Rev. Dec.15, 2020 Page 5 of 21 EXHIBIT C-1 SCHEDULE OF RATES Hourly Rates: Where the fee arrangement is to be on an hourly basis, the hourly rates shall be as noted below: Managing/Technical Director $300 Senior Director $250 Director $225 Senior Manager $200 Manager $180 Senior Consultant $165 Consultant $110-$140 Administrative Support $110 Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 23 Packet Pg. 639 of 911 Professional Services Rev. Dec.15, 2020 Page 6 of 21 EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, -:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. HEREIN. REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES STATUTORY STATUTORY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 24 Packet Pg. 640 of 911 Professional Services Rev. Dec.15, 2020 Page 7 of 21 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 25 Packet Pg. 641 of 911 Professional Services Rev. Dec.15, 2020 Page 8 of 21 Item 38 Attachment A - C23184669A Homeless Outreach Agreement - LifeMoves Item 38: Staff Report Pg. 26 Packet Pg. 642 of 911 1 9 3 3 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Community Services Meeting Date: June 19, 2023 Report #:2303-1192 TITLE Acceptance of an Outdoor Environmental Education Facilities Grant from the California Department of Parks and Recreation in the amount of One Hundred and Sixty-Two Thousand Dollars ($162,000) for Signage and Exhibits at the Palo Alto Baylands Nature Preserve, Approval of Deed Restrictions in the Baylands, and Approval of a FY 2024 Budget Amendment in the Capital Improvement Fund; CEQA – categorically exempt (Regulation 15311). RECOMMENDATION Staff recommends that City Council approve the following: 1. Acceptance of a $162,000 grant from the California Department of Parks and Recreation to fabricate and install interpretive exhibits and signage along the Baylands trail; 2. Approval of 30-year deed restrictions for the sites where State-funded interpretive exhibits will be installed; 3. Direct the City Manager or designee to execute all documents necessary to implement items 1. and 2. above. 4. Amend the Fiscal Year 2024 Budget Appropriation for the Capital Improvement Fund, requires a 2/3 vote, by: a. Increasing the estimate for Revenue from Other Agencies for grants by $162,000; and b. Establishing the Baylands Interpretive Signage Program (OS-24001) Capital Project and expense appropriation in the amount of $162,000. BACKGROUND The California Department of Parks and Recreation awarded the City of Palo Alto an Outdoor Environmental Education Facilities grant for $162,000 to improve educational opportunities for visitors to the Baylands, specifically for the fabrication and installation of interpretive exhibits. The City Council adopted a Resolution approving the submission and management of the grant Item 39 Item 39 Staff Report Item 39: Staff Report Pg. 1 Packet Pg. 643 of 911 1 9 3 3 in 20181. The State conditionally awarded the grant to the City of Palo Alto and both parties entered into a contract for the $162,000 award on October 9, 2018. Section One, Subsection 5 of the grant contract requires the City to place a deed restriction for 30 years (until 2047) on land where State-funded exhibits will be installed. Since 2018, there were several steps needed before staff could return to Council with the recommended grant acceptance and approval of deed restrictions. This included working with partner organizations to raise the matching grant funds, hiring a consultant to draft the legal descriptions for deed restrictions and developing the legal descriptions. Since City Council approval, staff has met its obligation to provide regular reports to the State on the status of achieving the following grant requirements: A) Progress obtaining matching grants, B) Designing and approval of the exhibits, signage, and installation and C) Selecting a consultant for the drafting of legal descriptions of the parcels to which the grant funds would be used and contracted to a Deed Restriction. The status of these grant requirements is described below. A. The grant’s match requirement of $54,000 for preconstruction costs were raised exclusively by the Friends of the Palo Alto Parks and the Environmental Volunteers in 2019 and used to engage stakeholders and to design the exhibits in 2020-2021. B. A two-phase Baylands Signage plan was developed for exhibits and signage on the Lucy Evans Baylands Nature Interpretive Center (Center) deck, the boardwalk, and on two miles of nearby trails adjacent to the Center after the need for outdoor interpretive signage was identified during stakeholder engagement in three Capital Improvement Projects: The Baylands nature Interpretive Center Facility Improvements (PE-15029), the Baylands Nature Interpretive Center Exhibit Improvements (AC-14001) and, the Baylands Boardwalk Improvements (PE-14018). The first phase included interpretive exhibits on the deck of the Center funded by the Baylands Exhibit Capital Improvement Project. The request to the California Department of Parks and Recreation Outdoor Environmental Education Facilities grant was sought to fund the second phase with the Baylands Exhibit Project long-range plan. The Palo Alto Architectural Review Board approved a Major Architectural Review Application for a Master Sign Program on February 1, 2018. C. For the approximately two miles of existing trail and boardwalk at the Center the attached Deed Restriction is required to be consistent with the public purposes of the 2002 Resources Bond Act recordation (Attachment A). The Deed Restriction is a restriction on the title to the property, which ensures that the property is used for a purpose consistent 1 City Council, April 2, 2018; Agenda Item # 4; SR #8971, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2018/id-8971.pdf Item 39 Item 39 Staff Report Item 39: Staff Report Pg. 2 Packet Pg. 644 of 911 1 9 3 3 with the grant for the duration of the contract performance period. A formal legal description of the park dedication of the Baylands to which grant funds will be used for development is required. These legal descriptions were drafted by consultant BKF ENGINEERS. ANALYSIS Council approval of the proposed acceptance of grant funds would authorize the City Manager or Designee to execute the grant agreement, administer the grant, and commit to a DeedRestriction for at least 30 years. These terms are similar to prior State Park and Recreation grant applications. In addition, Council approval of the Baylands Interpretive Signage Program (OS-24001) will enable the staff of the Palo Alto Junior Museum and Zoo, who manage the Lucy Evans Baylands Nature Interpretive Center (Center), to procure and enter contracts with exhibit and signage companies to fabricate and install the interpretive exhibits and signs on the boardwalk and along two miles of Baylands trails connecting Palo Alto’s Nature Center with East Palo Alto’s Cooley Landing Education Center. The project includes 11 sign exhibits with 11 installations most to be located on the Center’s Deck and adjacent Boardwalk. Deed Restriction While staff received approval to submit an Outdoor Environmental Education grant application of $162,000, acceptance of the grant requires approval of recordation of a Deed Restriction that covers a portion of the Baylands that are dedicated parkland. This deed restriction does not interfere with the Palo Alto Airport Property lines. The duration of deed restriction shall be in effect from July 1, 2017 through June 30, 2047. The grant funds are to be spent exclusively on carrying out the purposes set in the original grant application referenced above to fabricate and install the interpretive exhibits and signs. Any changes to the original grant application would require State approval. During the duration of the Deed Restriction the City would be required to have facilities operating hours consistent with the times proposed in the original application and be open to members of the public as described in the original application. Additionally, the City agrees that for the duration of the Deed Restriction the deed property shall be used only for the purposes of the grant and no other use, sale or other disposition shall be permitted except as authorized by a specific act of the legislature. The City of Palo Alto would be required to submit status reports of the project from time to time. The State would have the right to inspect all property or facilities developed. Sixty days after completion of the project the City would provide final expenditures to the State. The Outdoor Environmental Education Facilities Grant Contract defines the installation of interpretive signage and interactive exhibits as a capital improvement to real property by means of construction of permanent or fixed features of the property. Policy Implications Item 39 Item 39 Staff Report Item 39: Staff Report Pg. 3 Packet Pg. 645 of 911 1 9 3 3 The recommended actions outlined in this report advance many important policy objectives related to the City Comprehensive Plan Policy Goal C-1: Deliver community services effectively and efficiently. These include: A) Policy C-1.4 Promote City parks, open spaces, recreational facilities, libraries, classes and cultural activities for community members recognizing that these facilities and services build and strengthen community. B) Policy C-1.16 Provide arts, science and recreational activities that foster healthy children, youth and teen development. C) Policy C-1.20 Leverage available funding to support the development of, and improved access to, programs that address all types of developmental disabilities, including physical, sensory, cognitive or social/emotional needs. All improvements to the Baylands will conform with the 2004 Baylands Nature Preserve Site Assessment and Design Guidelines. The string of 11 interpretive exhibits on the trails and boardwalk will engage and bridge the two communities that care for the saltmarsh. The project is intended to be completed by Fall 2024. FISCAL/RESOURCE IMPACT Acceptance of the $162,000 grant, and appropriation of the funding to the Baylands Interpretive Signage Program Capital Project (OS-24001) will fund the fabrication and installation of the signs and exhibits. The 11 signs and exhibits will be installed on the boardwalk and along two miles of Baylands trails connecting Palo Alto’s Nature Center with East Palo Alto’s Cooley Landing Education Center. It is estimated that approximately $3,000 annually will be needed to maintain the exhibits starting in FY 2025. The operating impact will include site checks of the 11 newly installed exhibits, cleaning supplies for care of the exhibits, and graphic replacement of the exhibits if necessary. These additional operating impacts will be absorbed by the Community Services Department with no additional budgetary action required. STAKEHOLDER ENGAGEMENT The stakeholder engagement included a multi-tiered approach involving members of the public, partners of the project, and interested City Departments. The engagement with members of the public included: one East Palo Alto Council Meeting, three Parks and Recreation Commission meetings and two design charettes. The City also engaged with several partners of the project including but not limited to: (1) Friends of the Palo Alto Parks, (2) East Palo Alto Center for the Arts, (3) Save The Bay, (4) Audubon, (5) California Department of Fish and Wildlife, (6) US Department of Fish and Wildlife, and (7) San Francisquito Creek Joint Powers Authority. The City departments that were consulted include the Wastewater Treatment Plant and Open Space Division of the Community Services Department. Item 39 Item 39 Staff Report Item 39: Staff Report Pg. 4 Packet Pg. 646 of 911 1 9 3 3 ENVIRONMENTAL REVIEW This project is categorically exempt under CEQA Section 15311 (accessory structures). ATTACHMENTS Attachment A: CA Dept Parks and Rec Deed Restriction APPROVED BY: Kristen O'Kane, Community Services Director Item 39 Item 39 Staff Report Item 39: Staff Report Pg. 5 Packet Pg. 647 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 6 Packet Pg. 648 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 7 Packet Pg. 649 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 8 Packet Pg. 650 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 9 Packet Pg. 651 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 10 Packet Pg. 652 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 11 Packet Pg. 653 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 12 Packet Pg. 654 of 911 ORDER NO. : 1117011970-JM EXHIBIT A The land referred to is situated in the County of Santa Clara, City of Palo Alto, State of California, and is described as follows: PARCEL ONE: Commencing at the point of intersection of the center line of Embarcadero Road, prolonged, with the center line of the Wilson Slough which said point of intersection is distant North 51° 37’ East, 3692.62 feet along the center line of Embarcadero Road from the point of intersection of said line of Embarcadero Road with the center line of Arroyo Road, as marked by a concrete monument; thence leaving said center line of Embarcadero Road, prolonged, and running along the center line of Wilson Slough or San Francisquito Creek the following courses: North 72° 39’ West, 328.79 feet; North 46° 5’ West, 102.50 feet; North 0° 58’ West, 155.00 feet; North 28° 53’ East, 146.00 feet; North 56° 1’ East, 102.50 feet; South 84° 0’ East, 172.50 feet; South 68° 11’ East, 278.50 feet; South 87° 0’ East, 175.00 feet; North 67° 57’ East, 132.50 feet; North 44° 30’ East, 179.00 feet; North 16° 34’ East, 147.50 feet to the point of intersection with the Westerly boundary of that tract of land, containing 32.80 acres, conveyed by Deed of Gustav Laumeister by the Spring Valley Water Company, which Deed is of record in the Office of the County Recorder of Santa Clara County in Volume of Deeds 527, Page 206 thence leaving said center line of Wilson Slough and running along said Westerly line of said tract of land South 11° 0’ East, 69.5 feet and South 26.0 feet to a 3” x 4’ stake on the bank of said Slough or San Francisquito Creek, and continuing South 374.3 feet along the prolongation of and the West line of Survey No. 62 Swamp and Overflowed Lands, Santa Clara County, Section 32 Township 5 South Range 2 West, to the point of intersection of said West line of Survey No. 62 with the center line of a sewer right of way 66 feet wide, granted to the Town of Palo Alto and Leland Stanford Jr. University and of record in Book of Deeds 218, Page 122 and in Book of Deeds 220, Page 164, records of Santa Clara County, which point of intersection is marked by a concrete monument; thence running along the center line of said sewer right of way the following courses: South 78° 43’ West, 373.2 feet; South 74° 23’ West, 100.00 feet; South 65° 57’ West, 75.0 feet; South 59° 17’ West, 75.0 feet; South 51° 37’ West, 96.0 feet to the point of commencement. PARCEL TWO: Beginning at the point of intersection of tie center line of a sewer right of way granted to the Town of Palo Alto and Leland Stanford jr. University, and of record in Book of Deeds 218 at Page 122 and in Book of Deeds 220 at Page 164, records of Santa Clara County, with the West line of Survey No. 62, Swamp and Overflowed Lands, Santa Clara County. Section 32, Township 5 South, Range 2 West, which said line is the dividing line between the lands of Seale and Laumeister and the Spring Valley Water Company; thence North’ along said West line of Survey No. 62 and prolongation thereof 374.3 feet to a 3 x 4 stake on the bank of the San Francisquito Creek and continuing North 26.0 feet and North 11° 0’ West, 69.5 feet to the center line of the San Francisquito Creek; thence along the center line of the San Francisquito Creek the following courses: North 11° 0’ West, 128.5 feet; North 38° 1’ West, 186.0 feet; North 42° 8’ West, 177.5 feet; North 3° 16’ West, 125.0 feet; North 29° 52’ East, 126.0 feet; North 45° 23’ East, 241.0 feet; North 60° 57’ East, 332.5 feet; North 74° 59’ East, 334.0 feet; South 86° 29’ East, Page 1 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 13 Packet Pg. 655 of 911 255.5 feet; South 67° 55’ East, 237.5 feet; South 44° 20’ East, 202.0 feet; South 5° 44’ East, 200.5 feet; South 31° 53’ West, 202.5 feet; South 67° 16’ West, 245.0 feet; South 50° 18’ West, 153.0 feet; South 12° 4’ West, 187.5 feet to the point of intersection with the center line of the Mayfield Sough; thence along the center line of said Mayfield Slough the following courses: South 26° 4’ West, 205.0 feet; South 14° 59’ West, 95.0 feet to the point of intersection with the center line of said sewer right of way; thence along said center line South 78° 43’ West, 91.0 feet to a 3 x 4 stake on the bank of said Mayfield Slough; thence continuing South 78° 43’ West, along said center line 190.2 feet to the point of beginning; also and in addition to the above described parcel of land, all the Southerly one-half of said sewer right of way of uniform width of 33 feet, lying Southerly of above described center line of said sewer right of way between the center line of the Mayfield Slough and the West line of aforesaid Survey No. 62. PARCEL THREE: Beginning at the point of intersection of the Northwesterly line of Embarcadero Road with the common boundary line of San Mateo and Santa Clara Counties; thence from said point of beginning and along said Northwesterly line of Embarcadero Road, South 51° 37’ West, 864.60 feet to a point at the Southeasterly corner of a 60 foot easement to the Faber property; thence at right angles North 38° 23’ West, 79.85 feet to a point on the Southerly line of the Faber lands, said line here forming the boundary line between San Mateo and Santa Clara Counties; thence following said Counties line the six following courses and distances: North 59° 30’ East, 60.60 feet; North 47° 00’ East, 132.0 feet; North 12° 30’ East, 439.56 feet; North 47° 30’ East, 162.46 feet; South 65° 00 East, 240.24 feet; and South 63° 15’ East, 171.9 feet to the point of beginning. PARCEL FOUR: Being a portion of Swamp and Overflow Land Surveys Nos. 60, 62, 46, 43 and 58 and a portion of the said Rancho Rincon de San Francisquito. Commencing at a 5/8” twisted bar set in the Northeast corner of that certain tract of land containing 174.57 acres, conveyed to the Federal Telegraph Company by the Spring Valley Water Company by Deed dated January 8, 1921 and recorded January 15, 1921 in the Office of the County Recorder of Santa Clara, State of California in Book 526 of Deeds, Page 355, running thence East 1.36 chains to a 2” x 3” stake set for the Northeast corner of the Southwest quarter of the Southwest quarter of Section 32, Township 5 South Range 2 West, Mount Diablo Base and Meridian said last mentioned corner being also the Northeast corner of Swamp and Overflow Land Survey No. 60; thence North along the West, boundary line of Swamp and Overflow Land Survey No. 62, 19.42 chains to a concrete monument set at the Southwest corner of that certain tract of land containing 30 acres, conveyed by said Spring Valley Water Company to Gustav Laumeister, by Deed dated December 7, 1920 and recorded in said Recorder’s Office in Book 527 of Deeds, Page 206; thence East, along the Southerly boundary line of said 30 acre Tract and the Easterly production thereof 6.15 chains to a 6” x 6” post marked “C.S.9” standing on the Easterly bank of Mayfield Slough and marking one of the corners of the Westerly boundary line of that certain tract of land containing 4276.2 acres described in Parcel 1 Schedule “A” of that certain Agreement of Sale between Spring Valley Water Company and the Continental Salt and Chemical Company dated February 15, 1922; thence along said Westerly boundary line of said 4276.2 acre Tract and the Easterly bank of Page 2 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 14 Packet Pg. 656 of 911 said Mayfield Slough the following courses and distances: South 21° 40’ East, 6.25 chains; South 34° 45 East, 3.70 chains; South 48° 34’ East, 3.30 chains; South 83° 05’ East, 3.60 chains; North 69° 23 East, 5.40 chains; South 88° 50’ East, 3.50 chains; South 55° 33’ East, 2.70 chains South 23° 17’ East, 2.72 chains; South 9° 24’ East, 3.90 chains; South 5.70 chains; South 6° 51’ West, 6.20 chains; South 21° 46’ West, 5.00 chains; South 42° 53’ West, 4.30 chains; South 61° 50’ West, 5.70 chains; South 46° 45’ West, 2.80 chains; South 69° 11’ East, 2.90 chains; South 84° 08’ East, 3.50 chains; South 65° 55’ East, 2.70 chains; South 36° 27’ East, 3.17 chains to a point on the Northwesterly boundary of the Rancho Rincon de San Francesquito as patented; thence continuing along said Easterly bank of Mayfield Slough and the Westerly boundary line of said 4276.2 acre Tract South 4° 22’ East, 4.00 chains; South 20° 58’ West, 6.50 chains; South 52° 48’ West, 3.20 chains; South 84° 56’ West, 3.10 chains; North 54° 18’ West, 3.30 chains; North 17° 44’ West, 4.20 chains; North 36° 56’ West, 2.50 chains; North 74° 52’ West, 2.80 chains; South 72° 08’ West, 2.80 chains; South 47° 10’ West, 2.80 chains; South 31° 36’ West, 2.80 chains South 24° 56’ West, 8.20 chains and South 22° 41’ West, 2.90 chains to a 6” x 6” post marked “T.8” standing in the Northerly boundary line of that certain 10 acre tract of land, described in Quitclaim Deed from said Spring Valley Water Company to said Federal Telegraph Company, dated October 12, 1921 and recorded in said Recorder’s Office October 21, 1921 in Book 538 of Deeds, Page 511; thence along said last mentioned Northerly boundary line North 80° 51’ 40” West, 1.13 chains to the Easterly boundary line of said 174.57 acre Tract firstly hereinabove referred to; thence along said last mentioned Easterly line North 7° 32’ West, 5.36 chains to a 2 x 3 stake marked S.V. 18 thence North 40.76 chains to the point of commencement. PARCEL FIVE: Commencing at a 5/8 inch twisted bar set in the Northeast corner of that certain tract of land containing 174.57 acres, conveyed to the Federal Telegraph Company by the Spring Valley Water Company by Deed dated January 8, 1921, recorded January 15, 1921, in the Office of the County Recorder of Santa Clara County, State of California, in Book 526 of Deeds, Page 355; running thence East, 89.76 feet to a 2” x 3” stake set for the Northeast corner of the Southwest quarter of the Southwest quarter of Section 32, Township 5 South, Range 2 West, Mount Diablo Meridian, said last mentioned corner being also the Northeast corner of Swamp and Overflow Land Survey No.. 60; thence North along the West, boundary line of Swamp and Overflow Land Survey No.. 62, 1285.0 feet; thence leaving said boundary line West, 148.1 feet; North 436.9 feet to the Southerly line of Embarcadero Road; thence Westerly along said Southerly line of Embarcadero Road, the five following courses and distances: South 78° 43’ West, 213.5 feet; South 74° 23’ West, 96.8 feet; South 65° 57’ West, 70.9 feet; South 59° 17’ West, 71.7 feet; South 51° 37’ West, 88.95 feet, to a point on the common boundary line between San Mateo and Santa Clara Counties thence leaving said Southerly line of Embarcadero Road and following said County boundary line the eight following courses and distances: South 45° 50’ East, 335.02 feet; South 23° 14’ East, 68.5 feet; South 6° 43’ East, 263.5 feet; South 7° 59’ West, 140.5 feet; South 26° 14’ West, 106.0 feet; South 65° 36’ West, 98.6 feet; North 76° 36’ West, 91.5 feet; North 43° 55’ West, 83.0 feet; thence leaving said County boundary line, South 780 feet, to the Northerly line of the property of the Federal Telegraph Company hereinbefore described; thence along said Northerly property line of Federal Telegraph Company, East, 564.64 feet, and to the point of beginning. Page 3 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 15 Packet Pg. 657 of 911 PARCEL SIX: Beginning at a point on the center line of Embarcadero Road, said point being on the common boundary line between San Mateo and Santa Clara Counties; thence running Southeasterly along said County line and the Southwesterly most line of that certain 6.59 acre Tract conveyed by Alfred and Grace Seale to the City of Palo Alto and recorded on the 14th day of October 1932, Page 308, Book 575, of Official Records of San Mateo County, the five following courses and distances: South 63° 15’ East, 27.9 feet; South 46° 0’ East, 253.4 feet; South 20° 45’ East, 51.5 feet; South 40° 0’ East, 84.5 feet and South 14° 32’ East, 228.5 feet to a point; thence leaving said County line and running North 45° 05’ West, 623.29 feet to the center line of Embarcadero Road, thence along said center line of Embarcadero Road North 51° 37’ East, 133.0 feet to the point of beginning. EXCLUDING THEREFROM that portion now used for road purposes. PARCEL SEVEN: Beginning at a corner monument on the center line of Embarcadero Road set near the Westerly bank of Mayfield Slough; thence from said corner monument along said center line of Embarcadero Road, North 78° 43’ East, 281.2 feet to the center line of said Mayfield Slough; thence following said center line of said Slough its meanders upstream the following courses and distances: South 14° 59’ West, 37.5 feet, South 1° 14’ East, 287.5 feet, South 9° 10’ East, 219.0 feet, South 17° 36 East, 20.0 feet; thence leaving said Slough, West, 458.1 feet to a point; thence North 470.5 feet to the center line of Embarcadero Road; thence following said center line of said road, North 78° 43’ East, 151.0 feet to the point of commencement. PARCEL EIGHT: Beginning at a point on the common boundary line between the Counties of San Mateo and Santa Clara which point is the most Easterly corner of that certain tract of land conveyed by Grace Ross Seale, a widow, to the City of Palo Alto, by Deed dated June 11, 1933 and recorded July 11, 1933 in Volume 658 of Official Records, Page 23, Santa Clara County Records; said point of beginning being distant along the Southwesterly line of said land as conveyed to the City of Palo Alto, South 45° 05’ East, 623.29 feet from the center line of Embarcadero Road; thence from said point of beginning along the East, boundary line of the land of Seale, South 100.00 feet; thence leaving said boundary line North 22° 32’ 30” West, 184.72 feet to a point on the Southwesterly line of said tract of land as conveyed to the City of Palo Alto; thence along last mentioned line South 45° 05’ East, 100.00 feet to the point of beginning. PARCEL NINE: Being parts of Sections 32 and 33, Township 5 South, Range 2 West, M.D.M., part of Section 5, Township 6 South, Range 2 West, M.D.M., and being a part of Rancho Rincon de San Francisquito, described as follows: Page 4 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 16 Packet Pg. 658 of 911 Beginning at a point on the Northeasterly line of State Highway, designated as District IV, Santa Clara County, Route 68, Section A, known as the Bayshore Highway and U.S. Alternate 101, at the point of intersection of said highway line with the Northwesterly boundary of that certain 4221.32 acre Tract designated as Item No. 1 as conveyed by Spring Valley Water Company to Alviso Salt Company, by Deed dated February 15, 1927 and recorded in Volume 337 of Official Records at Page 485, et seq., Santa Clara County Records, and which point of beginning is distant on said highway line South 39° 42’ East, 294.09 feet from a State Highway concrete monument set at Highway Station 60; thence from said point of beginning along the Northeasterly line of said State Highway, South 39° 42’ East, (called South 39° 56’ East, on the Plan of said Highway and designated as South 39° 45’ East, 3742.41 feet in the conveyance from the Alviso Salt Company to State of California, by Deed dated October 30, 1931 and recorded in Volume 592 of Official Records at Page 17, et seq., Santa Clara County Records) for a distance of 3741.82 feet to a point of intersection with a Southeasterly line of said 4221.37 acre Tract, which point is distant along said highway line South 39° 42’ East, 36.91 feet from a State Highway concrete monument at Station 100; thence leaving said highway along said Southeasterly boundary of said 4221.32 acre Tract the following courses and distances: North 41° 25’ East, 879.92 feet; South 68° 45’ East, 165.66 feet; North 6° 00’ West, 270.60 feet; North 27° 25’ East, 138.60 feet; North 68° 45’ East, 653.40 feet and South 45° 30’ East, 82.50 feet (called North 45° 30’ East, in Quiet Title Decree No. 38406); thence leaving said Southeasterly boundary line of said Tract North 69° 29’ East, 178.00 feet, being along a roadway to a junction of roads; thence through said 4221.32 acre Tract and along the Southerly side of a levee the following courses and distances: North 2° 16’ East, 202.60 feet; North 24° 36’ East, 200.00 feet; North 31° 37’ East, 253.00 feet; North 36° 13’ East, 570.00 feet; North 36° 43’ East, 248.00 feet; North 27° 30’ East, 470.00 feet; North 54° 28’ East, 263.00 feet; North 86° 48’ East, 400.00 feet; North 75° 28’ East, 197.00 feet; North 48° 13’ East, 262.00 feet; North 18° 25’ East, 395.00 feet; North 14° 58’ West, 200.00 feet; North 27° 32’ West, 213.00 feet; North 50° 23’ West, 427.00 feet; North 18° 11’ West, 216.00 feet; North 3° 34’ East, 200.00 feet; North 25° 48’ East, 276.00 feet; North 58° 54’ East, 372.60 feet; North 80° 58’ East, 300.00 feet; North 71° 11’ East, 200.00 feet; North 39° 53’ East, 180.00 feet; North 16° 05’ East, 200.00 feet; North 15° 29’ West, 200.00 feet; North 44° 41’ West, 150.00 feet; North 57° 23’ West, 149.00 feet and South 85° 13’ West, 113.46 feet to a point on the Northerly line of Rancho Rincon de San Francisquito; thence along said Rancho line North 70° 00’ East, 541.35 feet (said distance being calculated as 572.00 feet from the Quiet Title Decree No. 38406 and recorded May 8, 1931 in Volume 569 of Official Records at Page 126, et seq., Santa Clara County Records) to the center line of Charleston Slough which point is the most Easterly corner of the 70.73 acre Parcel described in Grant Deed from the City of Palo Alto to the Alviso Salt Company dated April 14, 1928 and recorded in Volume 473 of Official Records at Page 475, et seq., Santa Clara County Records; thence in a Northerly direction along the center line of said Slough the following courses and distances: North 2° 41’ 16” West, 507.52 feet (designated as North 7° 15’ West, 507.67 feet in said Grant Deed); North 7° 38’ 58” West, 218.66 feet (designated as North 7° 58’ West, 210.01 feet in said Grant Deed); North 21° 31’ West, 368.02 feet; North 43° 14’ West, 414.02 feet; North 60° 23’ West, 582.98 feet; North 75° 04’ West, 754.97 feet to a point on the dividing line between Sections 32 and 33, Township 5 South, Range 2 West, M.D.M., and continuing along the center line of said Charleston Slough and the Southerly line of that certain parcel of land containing 33.34 acres and described as Parcel No. 2 in Grant Deed from the Alviso Salt Company to City of Palo Alto which Deed is dated October 2, 1928 and recorded in Volume 474 of Official Page 5 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 17 Packet Pg. 659 of 911 Records, Page 410, Santa Clara County Records, the following courses and distances: North 69° 47’ West, 640.86 feet; North 51° 51’ West, 799.99 feet and North 22° 26’ West, 330.00 feet to a point on the Northerly line of said 4221.32 acre Tract; thence along the Southerly bank of the Mayfield Slough and the Northerly line of said 4221.32 acre Tract the following courses and distances: South 46° 20’ West, 222.29 feet; South 55° 50’ West, 640.20 feet (646.80 feet in decree 38406); South 73° 44’ West, 459.36 feet and North 75° 06’ West, 158.40 feet to a point on the Easterly line of that certain parcel of land containing 40.61 acres and described as Parcel No. 1 in Grant Deed from the Alviso Salt Company to City of Palo Alto which Deed is dated October 23, 1928 and recorded in Volume 474 of Official Records, Page 410, Santa Clara County Records; thence leaving said Mayfield Slough and the Northerly line of said 4221.32 acre Tract Southeasterly along formerly the Westerly edge of a smaller Slough and the Easterly line of said 40.61 acre Tract, the following courses and distances: South 25° 29’ East, 792.00 feet and South 28° 30’ East, 785.40 feet; thence leaving the bank of said former smaller Slough South 59° 23’ West, 171.07 feet to the Southerly corner of said 40.61 acre Tract on the Easterly bank of said Mayfield Slough and the Westerly line of said 4221.32 acre Tract; thence along the Easterly bank of said Mayfield Slough and the Westerly line of said 4221.32 acre Tract the following courses and distances: South 9° 24’ East, 257.40 feet; South 376.20 feet; South 6° 51’ West, 409.20 feet; South 21° 46’ West, 330.00 feet; South 42° 53’ West, 283.80 feet; South 61° 50’ West, 376.20 feet; South 46° 45’ West, 184.80 feet; South 69° 11’ East, 191.40 feet; South 84° 08’ East, 231.00 feet; South 65° 55’ East, 178.20 feet; South 36° 27’ East, 209.22 feet to a point on the Northerly line of said Rancho Rincon de San Francisquito (called 209.42 feet in Quiet Title Decree No. 38406); South 4° 22’ East, 264.00 feet; South 20° 58’ West, 429.00 feet; South 52° 48’ West, 211,20 feet; South 84° 56’ West, 204.60 feet; North 54° 18’ West, 217.80 feet; North 17° 44’ West, 277.20 feet; North 36° 56’ West, 165.00 feet; North 74° 52’ West, 184.80 feet; South 72° 08’ West, 184.80 feet; South 47° 10’ West, 184.80 feet; South 31° 36’ West, 184.80 feet; South 24° 56’ West, 541.20 feet and South 22° 41’ West, 191.40 feet to a 6” x 6” post originally set and marked “T.8”, standing in the Northerly line of that certain 10 acre Tract embracing the boat landing of Clarke as delineated and located in the description of that certain 1576.69 acre Tract conveyed by E. G. Moody to Spring Valley Water Company by Deed dated August 13, 1906 and recoded in Volume 335 of Deeds, Page 447, Santa Clara County Records; thence Southeasterly and Southwesterly along the dividing line between said 10 acre Tract and said 1576.69 acre Tract the following courses and distances: South 24° 10’ East, 145.20 feet and South 77° 30’ East, 132.00 feet to a 6” x 6” post originally set and marked “T.10” and South 69° 16’ West, 1369.01 feet to the Northeasterly line of said State Highway known as the Bayshore Highway and the point of beginning. PARCEL TEN: Being a part of Section 32, Township 5 South, Range 2 West, M.D.M., and a part of said 4221.32 acre Tract conveyed by Spring Valley Water Company to Alviso Salt Company by Deed dated February 15, 1927 and recorded in Volume 337 of Official Records, Pages 485, et seq., in the Office of the County Recorder of Santa Clara County, California, described as follows: Page 6 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 18 Packet Pg. 660 of 911 Beginning at a 6” x 6” post marked “C.S. 9” standing on the Easterly bank of Mayfield Slough at one of the corners in the Westerly line of that certain 4221.32 acre Tract designated Item No. 1 as conveyed by Spring Valley Water Company to Alviso Salt Company by Deed dated February 15, 1927 and recorded in Volume 337 of Official Records, Pages 485, et seq., in the Office of the County Recorder of Santa Clara County, California and running thence along the Westerly and Northerly lines of said 4221.32 acre Tract the eleven following courses and distances: West, 1.45 chains to a point in the center line of said Mayfield Slough; thence Northwesterly and Northeasterly along said center line of said Mayfield Slough following its meanders down stream the seven following courses and distances: North 17° 36’ West, 0.303 chains; North 9° 10’ West, 2.318 chains; North 1° 14’ West, 4.356 chains; North 14° 59’ East, 1.439 chains; North 26° 04’ East, 3.106 chains; North 38° 36’ East, 3.189 chains; North 79° 23’ East, 2.70 chains; thence leaving said center line of said Slough and running South 0.65 chains to a point on the Southerly bank of said Slough; thence Southeasterly along said Southerly bank of said Mayfield Slough the two following courses and distances: South 54° 54’ East, 8.30 chains and South 75° 06’ East, 2.80 chains to a point from which a 6” x 6” witness post painted white bears South 56° 47’ West, 100.00 feet; thence leaving said Mayfield Slough and said Northerly line of said 4221.32 acre Tract and running Southeasterly along the general Westerly bank or edge of a smaller Slough the two following courses and distances: South 25° 29’ East, 12.00 chains to a 6” x 6” post painted white and South 28° 30’ East, 11.90 chains to a 6” x 6” post painted white; thence leaving said bank of said smaller Slough and running South 59° 23’ West, 2.592 chains to a point on said Easterly bank of said Mayfield Slough and in said Westerly line of said 4221.32 acre Tract; and thence Northwesterly along said Easterly bank of said Mayfield Slough along said Westerly line of said 4221.32 acre Tract the eight following courses and distances: North 23° 17’ West, 2.722 chains; North 55° 33’ West, 2.70 chains; North 88° 50’ West, 3.50 chains; South 69° 23’ West, 5.40 chains; North 83° 05’ West, 3.60 chains; North 48° 34’ West, 3.30 chains; North 34° 45’ West, 3.70 chains and North 21° 40’ West, 6.25 chains to the point of beginning. PARCEL ELEVEN: Being a part of Section 32, Township 5 South, Range 2 West, M.D.M., and a part of said 4221.32 acre Tract conveyed by Spring Valley Water Company to Alviso Salt Company by Deed dated February 15, 1927 and recorded in Volume 337 of Official Records, Pages 485, et seq., in the Office of the County Recorder of Santa Clara County, California, described as follows: Beginning at the point of intersection of the center line of Charleston Slough with the dividing line between Sections 32 and 33, Township 5 South, Range 2 West, M.D.M., said point of beginning being also in the Easterly line of that certain 4221.32 acre Tract designated Item No. 1 as conveyed by Spring Valley Water Company to Alviso Salt Company by Deed dated February 15, 1927 and recorded in Volume 337 of Official Records, Pages 485, et seq., in the Office of the County Recorder of Santa Clara County, California and running thence Northerly along said dividing line between said Sections 32 and 33 and along said Easterly line of said 4221.32 acre Page 7 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 19 Packet Pg. 661 of 911 Tract, North 20.21 chains to a point on the shore of the Bay of San Francisco; thence Northwesterly and Southwesterly along said shore of the Bay of San Francisco and along the Southeasterly bank of the Charleston Slough and along the Northerly line of said 4221.32 acre Tract the three following courses and distances: North 22° West, 5.10 chains; South 72° 27’ West, 11.86 chains and South 55° 06’ West, 5.16 chains; thence leaving said bank of said Charleston Slough and running Southwesterly and still along the Northerly line of said 4221.32 acre Tract, South 46° 20’ West, 4.242 chains to a point in said center line of said Charleston Slough; and thence leaving said line of said 4221.32 acre Tract and running Southwesterly along said center line of said Charleston Slough following its meanders upstream the three following courses and distances: South 22° 26’ East, 5.00 chains; South 51° 51’ East, 12.121 chains and South 69° 47’ East, 9.71 chains to the point of beginning. PARCEL TWELVE: Beginning at a concrete monument set near the intersection of the Northerly bank of Mayfield Slough and the shoreline of San Francisco Bay, as said monument is described in that certain Indenture made and entered into March 25, 1911, by and between the Spring Valley Water Company, the party of the first part, and the Morgan Oyster Company, the party of the second part, and recorded April 3, 1911, in Volume 192 of Deeds at Page 584, San Mateo County Records; thence from said concrete monument at the point of beginning and along the dividing line described in the above mentioned Indenture, said line being the Southwesterly most boundary of Survey No. 64 and Resurvey No. 48 of the Morgan Oyster Company, patented January 9, 1879, and recorded in Book “2” Patents at Page 18, on March 19, 1879, records of San Mateo County, as follows: North 12° 00’ West, 7.50 chains to a concrete monument, North 49° 00’ West, 17.50 chains, to a concrete monument, North 36° 30’ West, 12.50 chains; North 67° 30’ West, 10.00 chains; North 81° 30’ West, 15.00 chains; North 42° 00’ West, 5.70 chains; thence leaving the above mentioned dividing line and passing through Survey No. 64 and Resurvey No. 48 and Lot “D” of Survey No. 76 of the Morgan Oyster Company, the last described Survey patented October 17, 1878, and recorded in Book “2” of Patents at Page 20, on March 19, 1879, records of San Mateo County, East, 78.18 chains to a point on the line dividing Sections 28 and 29 of Township 5 South, Range 2 West, M.D.M.; thence on and along said section line and the Easterly most boundary of Lot “D” Survey No. 76 and across the Northwesterly most boundary of Lot “B” Survey No. 1, Morgan Oyster Company, patented October 17, 1878, and recorded in Book “C” of Patents, at Page 113, on February 28, 1879, records of Santa Clara County, and continuing along the line dividing Sections 32 and 33, South 28.50 chains; the last described course crossing the boundary line between San Mateo and Santa Clara Counties; thence leaving said section line and following the exterior boundaries of the Morgan Oyster Company, Survey No. 8, Lot “B” patented August 11, 1890, and recorded in Book “E” of Patents at Page 40 on September 27, 1890, records of Santa Clara County, in a general Southeasterly direction, the six following courses and distances: East, 3 chains; South 25° 30’ East, 23.80 chains; East, 7.00 chains; South 5.00 chains; South 59° 45’ East, 32.18 chains; East, 2.51 chains; thence South 55° 00’ West, 10.64 chains; North 54° 15’ West, 40.00 chains; North 21° 15’ West, 22.73 chains; the last described course crossing the line between Sections 32 and 33, Township 5 South, Range 2 West, M.D.M.; Page 8 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 20 Packet Pg. 662 of 911 thence South 44° 45’ West, 4.62 chains; North 45° 00’ West, 4.24 chains; thence following the exterior boundary of Survey No. 1, Lot “C” Morgan Oyster Company, South 21° 00’ West, 5.00 chains; South 68° 45’ West, 8.00 chains; North 8° 30’ West, 4.00 chains; North 25° 45’ East, 3.00 chains to a point on a line between Santa Clara and San Mateo County; thence on and along said County line North 38° 45’ East, 5.12 chains; thence leaving said County line and the boundary of Survey No. 1, Lot “C”, West, 10.40 chains to the point of beginning. EXCEPTING THEREFROM any portion lying within Parcel Nine as described herein. PARCEL THIRTEEN: Being a Resurvey of a part of Swamp and Overflowed Lands Survey 61, Santa Clara County, and being a fraction in the West ½ of Section 33, Township 5 South, Range 2 West, M.D.M., described as follows: Beginning at the intersection of the Northern boundary line of the Rancho Rincon de San Francisquito with the East line of Swamp and Overflowed Lands Survey 46, Santa Clara County, said point of beginning being 4.68 chains North of the corner to Sections 32 and 33, Township 5 South, Range 2 West, and Sections 4 and 5, Township 5 South, Range 2 West, M.D.M.; thence North along the West line of said Swamp and Overflowed Lands Survey 46, 39.41 chains to the intersection of the Westerly line of Tide Land Location 164 of Land Survey No. 8, Santa Clara County; thence following the line of said Tide Land Location 164, South 21° 15’ East, 5.94 chains; South 54° 15’ East, 40 chains; North 55° East, 6.58 chains to the West line of the Swamp and Overflowed Lands Survey 135, Santa Clara County; thence along the line of said Survey 135, South 9.81 chains to the Northerly boundary line of said Rancho Rincon de San Francisquito; thence along the North line of said Rancho, North 82° 30’ West, 20.56 chains; South 70° West, 20.87 chains to the point of beginning. EXCEPTING THEREFROM any portion lying within Parcels Nine and Twelve as described herein. ALSO EXCEPTING THEREFROM any portion lying within Rancho Rincon de San Francisquito. PARCEL FOURTEEN: Beginning at a concrete monument set near the intersection of the Northerly bank of San Francesquito Creek with the shore line of the San Francisco Bay as said concrete monument as described in that certain Indenture made and entered into March 25, 1911, by and between the Spring Valley Water Company, the party of the first part and the Morgan Oyster Company, the party of the second part, and recorded April 3, 1911 in Volume 192 of Deeds, Page 584, San Mateo County Records; thence from the said concrete monument at the point of beginning and along the dividing lines described in the above mentioned Indenture as follows: North 12° 00” West, 495.21 feet to a concrete monument; North 49° 00’ West, 1155.40 feet to a concrete monument; North 36° 30’ 30” West, 824.90 feet; North 67° 30’ 40” West, 659.98 feet; North 81° 30’ 40” West, 990.02 feet; North 42° 00’ 30” West, 376.15 feet; North 20° 00’ 20’ West, 577.41 feet; North 39° 00’ 30” West, 989.90 feet; East, 72.60 feet; North 52° 30’ West, 1056 feet; North 25° 00’ West, 747.12 feet; West, 711.45 feet and North 1223.31 feet to the Southerly line of Bay Road, from which point the ¼ section corner between Sections 19 and 30 in Township 5 South, Range 2 West, M. D. B. & M. bears North 85.38 feet distant; thence leaving said dividing line and along the said Southerly line of Bay Road, South 66° 12’ 40” West, Page 9 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 21 Packet Pg. 663 of 911 889.05 feet to the Easterly line of the Rancho de Las Pulgas, South 23° 22’ 53” West, 61.13 feet distant from angle point in said Rancho line designated as P.M.C. 5; thence leaving said Southerly line of Bay Road along said Easterly Rancho line, South 23° 22’ 53” West, 1056.95 feet to the angle point designated as P.M.C. #4 and South 13° 12’ 45” East, 1272.92 feet to the line dividing the North one-half from the South one-half of section 30 in said Township and Range; thence along said dividing line North 89° 29’ 43” East, 2239.49 feet; thence leaving said dividing line South 2647.90 feet to the South line of said Section 30; thence East, 1320 feet to the corner common to Sections 29, 30, 31 and 32 in said Township and Range; thence South between Sections 31 and 32, 1320 feet; thence East, 990 feet to the bank of the San Francisquito Creek; thence along said Creek bank as follows: North 39° 59’ East, 205.96 feet; North 52° 12’ East, 337.00 feet; North 63° 35’ East, 386.31 feet; North 78° 41’ East, 310.53 feet; North 88° 27’ East, 350.00 feet; South 49° 27’ East, 500.00 feet; South 28° 26’ West, 400.00 feet; South 50° 06’ West, 400.00 feet; South 63° East, 495 feet; North 65° 30’ East, 396.00 feet, and North 26° 15’ East, 518.18 feet to the point of beginning. EXCEPTING THEREFROM any portion lying in the County of San Mateo. PARCEL FIFTEEN: Being a portion of the Southwest quarter of the Northwest quarter of Section 32, Township 5 South, Range 2 West, M.D.M., described as follows: Beginning at the common corner for Sections 29, 30, 31 and 32, Township 5 South, Range 2 West; thence South between Sections 31 and 32, 1320 feet; thence East, 28.50 feet to the true point of commencement, East, 1,108.50 feet to the center of the San Francisquito Creek; also known as the Wilson Slough; thence along the center of said San Francisquito Creek, the following courses: South 3° 16’ East, 50.0 feet; South 42° 08’ East, 177.50 feet; South 33° 01’ East, 186.00 feet; South 11° 01’ East, 128.5 feet; South 16° 34’ West, 147.50 feet; South 44° 3’ West, 179.00 feet; South 67° 57’ West, 132.50 feet; North 57° 0’ West, 175.00 feet; North 66° 11’ West, 278.50 feet; North 84° 0’ West, 172.50 feet; South 56° 01’ West, 102.50 feet; South 28° 53’ West, 146.00 feet; South 0° 58’ East, 155.00 feet; South 46° 05’ East, 102.50 feet; and South 72° 39’ East, 33.00 feet; thence leaving said Creek, South 51° 37’ West, 355.00 feet; thence North 65° 0’ West, 166.00 feet to a concrete monument standing 28.50 feet due East, from the West line of Section 32; thence North 1264.50 feet to the aforesaid true point of commencement. PARCEL SIXTEEN: Commencing at the point of intersection of the center line of Embarcadero Road, prolonged, with the center line of the San Francisquito Creek, which said point of intersection is distant North 51° 37’ East, 3283.42 feet along the center line of Embarcadero Road with the center line of Arroyo Road, which intersection of said center lines is marked by a concrete monument and shown upon the Map of Subdivision No. 5, Scale Tract, which Map is of record in the Office of the County Recorder of Santa Clara County, California; thence leaving said center line of Embarcadero Road, and running along the center line of the San Francisquito Creek South 63° 15’ East, 27.9 feet and South 46° 0’ East, 7.76 feet; thence leaving the center line of said Creek Page 10 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 22 Packet Pg. 664 of 911 and running parallel to and distant 33 feet Southeasterly from said center line of Embarcadero Road, prolonged, into San Mateo County, North 51° 37’ East, 400.75 feet to the center line of the San Francisquito Creek; thence along the center line of said Creek North 45° 50’ West, 33.28 feet to said center line of Embarcadero Road, prolonged; thence continuing along the center line of said San Francisquito Creek North 72° 59’ West, 295.79 feet; thence leaving said Creek and running on a course parallel to and distant 244.45 feet from the center line of said Embarcadero Road, prolonged, South 51° 27’ West, 355 feet, more or less, a point of intersection with the center line of San Francisquito Creek, said point of intersection being distant on said center line of said Creek South 65° East, 166 feet from a concrete monument; thence following the center line of said Creek South 65° East, 74.24 feet and South 63° 15’ East, 199.8 feet to the point of commencement. PARCEL SEVENTEEN: Being a part of the Southeasterly quarter of section 30 and the Northeasterly quarter of Section 31, Township 5 South, Range 2 West, M.D.M., described as follows: Commencing at a concrete monument on the line dividing San Mateo and Santa Clara Counties, said concrete monument here forming the Southwesterly most corner of that certain 26.66 acre Tract conveyed by Deed July 19, 1926, and recorded in Volume 246, Page No. 168, records of San Mateo County to the City of Palo Alto by Peter Faber and Laura E. Faber, his wife; thence from said point of commencement, North 38° 23’ West, 3600.00 feet to a point; thence North 51° 37’ East, 1131.0 feet to a point on the Westerly line of that certain 286.562 acre Tract under Lease by the City of Palo Alto from Gustav and Mabel S. Laumeister, dated April 22, 1926, said Lease being on file in the Office of the City clerk of said City; thence South along said line 939.8 feet to a point on the line between Sections 30 and 31, Township 5 South, Range 2 West, M.D.M; thence East, along said dividing line 1320 feet to the section corner common to Sections 29, 30, 31 and 32, Township 5 South, Range 2 West, M.D.M.; thence South 1320 feet along the line between Sections 31 and 32 Township 5 South, Range 2 West, to a point; thence leaving said section line East, 28.5 feet to a point, said point being the true point of commencement of that certain 26.66 acre Tract hereinbefore mentioned; thence South 1264.5 feet to the point of commencement. PARCEL EIGHTEEN: Being a part of Sections 30 and 31, Township 5 South, Range 2 West, M.D.M., described as follows: Commencing at a concrete monument on the line dividing San Mateo and Santa Clara Counties, said concrete monument here forming the Southwesterly most corner of that certain 26.66 acre Tract conveyed by Deed July 19, 1926, and recorded in Volume 246, Page 168, records of San Mateo County to the City of Palo Alto by Peter Faber and Laura E. Faber, his wife; thence from said point of commencement, North 38° 23’ West, 3600.00 feet along the Southwesterly line of that certain 71.33 acre Tract under Lease by the City of Palo Alto and Peter Faber and Laura E. Faber dated March 11, 1929, said lease being on file in the Office of the City Clerk of said City; thence South 51° 37’ West, 684.75 feet; thence South 38° 23’ East, 3890.62 feet to the line dividing San Mateo and Santa Clara Counties; thence along said line dividing San Mateo and Santa Clara Counties the following courses and distances; North 59° 30’ East, 60.60 feet; North 47° 00’ East, 132.00 feet; North 12° 30’ East, 439.56 feet; North 47° 30’ East, 152.46 feet to the point of commencement. Page 11 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 23 Packet Pg. 665 of 911 PARCEL NINETEEN: Beginning at a point marked by a concrete monument standing on the boundary line between Santa Clara County and San Mateo County at the point of intersection of said County boundary line with the common Easterly line of Pulgas Ranch and the Westerly line of Section 31, Township 5 South, Range 3 West, M.D.M.; thence on and along said County boundary line North 81° 30’ East, 118.80 feet, South 26° 30’ East, 211.86 feet, South 56° 45’ East, 178.20 feet and North 59° 30’ East, 106.38 feet to a point on said County boundary line, which point is distant North 38° 23’ West, 79.85 feet from the Northwesterly line of Embarcadero Road; thence leaving said County boundary line North 38° 57’ West, 1169.45 feet to a fence corner; thence South 51° 20’ West, 477.00 feet; thence South 72° 27’ West, 503.00 feet; thence North 88° 21’ West, 233.00 feet; thence South 72° 59’ West, 189.00 feet; thence South 66° 32’ West, 471.00 feet; thence South 12° 04’ East, 200.85 feet to a point on said County boundary line; thence on and along said County boundary line South 69° 30’ East, 375.40 feet, North 46° 00’ East, 693.00 feet, South 48° 30’ East, 303.60 feet, South 47° 30’ West, 330.00 feet, South 14° 00’ East, 117.48 feet, South 67° 30’ East, 198.00 feet, North 49° 00’ East, 475.00 feet, North 86° 30’ East, 290.40 feet and North 62° 30’ East, 475.00 feet, North 86° 30’ East, 290.40 feet and North 62° 30’ East, 273.90 feet to the point of beginning. PARCEL TWENTY: A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203 Official Records of San Mateo County distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 55.00 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 2588.50 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek South 15° 53’ East, 151.55 feet; thence South 38° 23’ East, 1448.69 feet to the Northerly boundary line of said lands of Geng; thence North 51° 20’ East, along said Northerly boundary line of lands of Geng, 58.00 feet to the true point of commencement. PARCEL TWENTY-ONE: A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 113.00 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 2448.69 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek South 15° 53’ East, 159.39 feet; thence South 38° 23’ Page 12 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 24 Packet Pg. 666 of 911 East, 2301.65 feet to the Northerly boundary line of said lands of Geng; thence North 51° 20’ East, along said Northerly boundary line of lands of Geng, 61.00 feet to the true point of commencement. PARCEL TWENTY-TWO (A): A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 239.50 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 2151.61 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek South 14° 07’ East, 171.53 feet; thence South 38° 23’ East, 1995.49 feet to the Northerly boundary line of said lands of Geng; thence North 51° 20’ East, along said Northerly boundary line of lands of Geng, 70.50 feet to the true point of commencement. PARCEL TWENTY-TWO (B): A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 310.00 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 1995.49 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek South 14° 07’ East, 184.91 feet; thence South 38° 23’ East, 1827.19 feet to the Northerly boundary line of said lands of Geng; thence North 51° 20’ East, along said Northerly boundary line of lands of Geng, 76.00 feet to the true point of commencement. PARCEL TWENTY-TWO (C): A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 386.00 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 1827.19 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said Page 13 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 25 Packet Pg. 667 of 911 center line of San Francisquito Creek with the following courses and distances: South 14° 07’ East, 125.57 feet and South 11° 38’ East, 70.85 feet; thence South 38° 23’ East, 1649.75 feet to the Northerly boundary line of said lands of Geng; thence North 51° 20’ East, along said Northerly boundary line of lands of Geng, 83.50 feet to the true point of commencement. PARCEL TWENTY-TWO (D): A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 469.50 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 1649.75 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek with the following courses and distances: South 11° 38’ East, 157.36 feet and South 2° 09’ East, 39.22 feet; thence South 38° 23’ East, 1444.72 feet to the Northerly boundary line of said lands of Geng; thence North 72° 27’ East, along said Northerly boundary line of lands of Geng 96.62 feet; thence continuing along said Northerly boundary line of lands of Geng North 51° 20’ East, 7.50 feet to the true point of commencement. PARCEL TWENTY-TWO (E): A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 477.00 feet; thence South 72° 27’ West, 96.62 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 1444.72 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek South 2° 09’ East, 182.71 feet; thence South 38° 23’ East, 1256.24 feet to the Northerly boundary line of said lands of Geng; thence along said Northerly boundary line of lands of Geng, North 72° 27’ East, 120.64 feet to the true point of commencement. PARCEL TWENTY-TWO (F): A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et Page 14 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 26 Packet Pg. 668 of 911 ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 477.00 feet; thence South 72° 27’ West, 217.26 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 1256.24 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek with the following courses and distances: South 2° 09’ East, 126.43 feet and South 10° 23’ East, 111.83 feet; thence South 38° 23’ East, 1007.09 feet to the Northerly boundary line of said lands of Geng; thence along said Northerly boundary line of lands of Geng, North 72° 27’ East, 142.14 feet to the true point of commencement. PARCEL TWENTY-TWO (G): A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 477.00 feet; thence South 72° 27’ West, 359.40 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 1007.09 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek with the following courses and distances: South 10° 23’ East, 89.67 feet; thence South 28° 49’ East, 329.52 feet, South 18° 53’ East, 154.33 feet, South 0° 39’ West, 254.10 feet and South 24° 03’ West, 76.07 feet to the Northerly boundary line of said lands of Geng; thence North 72° 59’ East, along said Northerly boundary line of lands of Geng, a distance of 53.05 feet; thence continuing along said Northerly boundary line of lands of Geng, South 88° 21’ East, 233.0 feet and North 72° 27’ East, 143.60 feet to the true point of commencement. PARCEL TWENTY-THREE: A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203 Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence continuing North 38° 23’ West, along said Southwesterly boundary line of the lands of the City of Palo Alto, 2721.17 feet to the Northwesterly corner of the lands described in said Deed from Nicolay, et ux, to the City of Palo Alto; thence upstream along said center line of San Francisquito Creek as realigned South 15° 53’ East, 143.72 feet; thence South 38° 23’ East, 2588.50 feet to the Northerly boundary line of said lands of Geng, Page 15 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 27 Packet Pg. 669 of 911 thence North 51° 20 East, along said Northerly boundary line of the lands of Geng, 55.00 feet to the point of beginning. PARCEL TWENTY-FOUR: A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203 Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 174.00 feet to the point of commencement; thence from the true point of commencement North 38° 23’ West, 2301.65 feet to the center line of San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek with the following courses and distances: South 15° 53’ East, 66.57 feet and South 14° 07’ East, 97.40 feet; thence South 38° 23’ East, 2151.61 feet to the Northerly boundary line of said lands of Geng, thence North 51° 20 East, along said Northerly boundary line of the lands of Geng, 65.50 feet to the true point of commencement. PARCEL TWENTY-FIVE: All of said land being in Section 32, Township 5 South, Range 2 West, M.D.M., more particularly described as follows: Beginning at the point of intersection of the Southerly line of Embarcadero Road with the line of the common boundary between San Mateo and Santa Clara Counties; thence from said point of beginning and following the Southerly line of Embarcadero Road, North 51° 37’ East, 400.75 feet to the intersection thereof with aforesaid County boundary line; thence leaving said Southerly line of Embarcadero Road and following said County boundary, the twelve following courses and distances: South 45° 50’ East, 335.02 feet; South 23° 14’ East, 68.50 feet; South 6° 43’ East, 263.50 feet; South 7° 59’ West, 140.50 feet; South 26° 14’ West, 106.00 feet; South 65° 36’ West, 98.60 feet; North 76° 36’ West, 91.50 feet; North 43° 55’ West, 83.00 feet; North 14° 32’ West, 228.50 feet; North 40° 00’ West, 84.5 feet; North 20° 45’ West, 51.50 feet; North 46° 00’ West, 245.50 feetto the point of beginning. PARCEL TWENTY-SIX: Beginning at a concrete monument set near the intersection of the bank of the San Francisquito Creek with the shore line of San Francisco Bay as said concrete monument is described in the Indenture made and entered into on March 25, 1911 by and between the Spring Valley Water Company, the party of the first part, and the Morgan Oyster Company, the party of the second part, which was recorded April 3, 1911 in Book 192 of Deeds at Page 584, records of San Mateo County, said concrete monument also being the point of beginning of the lands described in the Deed from Gustav Laumeister and wife, to City of Palo Alto, a municipal corporation, dated April 23, 1926 and recorded September 15, 1930 in Book 500 of Official Records of San Mateo Page 16 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 28 Packet Pg. 670 of 911 County, at Page 89 (68341-B); thence from said point of beginning along the general Southeasterly, Southerly and Southwesterly boundary line of the lands described in said Deed, being the left bank of the San Francisquito Creek, as follows: South 26° 15’ West, 518.18 feet, South 65° 30’ West, 396 feet, North 63° 00’ West, 495 feet, North 50° 06’ East, 400 feet, North 28° 26’ East, 400 feet, North 49° 27’ West, 500 feet, South 88° 27’ West, 350 feet, South 78° 41’ West, 310.55 feet, South 63° 35’ West, 386.31 feet, South 52° 12’ West, 337 feet, and South 39° 56’ West, 205.96 feet; thence East, to the common boundary line between the County of San Mateo and the County of Santa Clara (which line is the center line of San Francisquito Creek before it was relocated); thence in a general Northeasterly direction along said common County boundary line as it winds and turns to its intersection with the South boundary line of Tide Land Survey No. 76-Lot D as described in the Book of Tide Land Surveys in San Mateo County at Page 152, records of San Mateo County, said intersection bears East, of the point of beginning; thence West, along said South line and along the South line of Tide Lands Survey No. 64 as described on Page 121 of said Book of Tide Lands Survey, to the point of beginning. APN: 008-05-005; and 008-06-001 Page 17 of 18 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 29 Packet Pg. 671 of 911 555 12th Street, Suite 2000 Oakland, CA 94607 (510) 272-1121 Fax: (510) 208-5045 PRELIMINARY REPORT Our Order Number 1117011970-JM When Replying Please Contact: Julie Massey JMassey@ortc.com (510) 272-1121 Property Address: 1901, 1903 and 1925 Embarcadero Road, Palo Alto, CA 94301 In response to the above referenced application for a policy of title insurance, OLD REPUBLIC TITLE COMPANY hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said policy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said Policy or Policies are set forth in Exhibit A attached. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the Homeowner’s Policy of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Exhibit A. Copies of the Policy forms should be read. They are available from the office which issued this report. Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land. This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. Dated as of June 13, 2012, at 7:30 AM OLD REPUBLIC TITLE COMPANY For Exceptions Shown or Referred to, See Attached Page 1 of 30 Pages ORT 3158-A (Rev. 08/07/08) Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 30 Packet Pg. 672 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM The form of policy of title insurance contemplated by this report is: CLTA Standard Coverage Policy - 1990. A specific request should be made if another form or additional coverage is desired. The estate or interest in the land hereinafter described or referred or covered by this Report is: Fee Title to said estate or interest at the date hereof is vested in: City of Palo Alto, a municipal corporation The land referred to in this Report is situated in the County of Santa Clara, City of Palo Alto, State of California, and is described as follows: PARCEL ONE: Commencing at the point of intersection of the center line of Embarcadero Road, prolonged, with the center line of the Wilson Slough which said point of intersection is distant North 51° 37’ East, 3692.62 feet along the center line of Embarcadero Road from the point of intersection of said line of Embarcadero Road with the center line of Arroyo Road, as marked by a concrete monument; thence leaving said center line of Embarcadero Road, prolonged, and running along the center line of Wilson Slough or San Francisquito Creek the following courses: North 72° 39’ West, 328.79 feet; North 46° 5’ West, 102.50 feet; North 0° 58’ West, 155.00 feet; North 28° 53’ East, 146.00 feet; North 56° 1’ East, 102.50 feet; South 84° 0’ East, 172.50 feet; South 68° 11’ East, 278.50 feet; South 87° 0’ East, 175.00 feet; North 67° 57’ East, 132.50 feet; North 44° 30’ East, 179.00 feet; North 16° 34’ East, 147.50 feet to the point of intersection with the Westerly boundary of that tract of land, containing 32.80 acres, conveyed by Deed of Gustav Laumeister by the Spring Valley Water Company, which Deed is of record in the Office of the County Recorder of Santa Clara County in Volume of Deeds 527, Page 206 thence leaving said center line of Wilson Slough and running along said Westerly line of said tract of land South 11° 0’ East, 69.5 feet and South 26.0 feet to a 3” x 4’ stake on the bank of said Slough or San Francisquito Creek, and continuing South 374.3 feet along the prolongation of and the West line of Survey No. 62 Swamp and Overflowed Lands, Santa Clara County, Section 32 Township 5 South Range 2 West, to the point of intersection of said West line of Survey No. 62 with the center line of a sewer right of way 66 feet wide, granted to the Town of Palo Alto and Leland Stanford Jr. University and of record in Book of Deeds 218, Page 122 and in Book of Deeds 220, Page 164, records of Santa Clara County, which point of intersection is marked by a concrete monument; thence running along the center line of said sewer right of way the following courses: South 78° 43’ West, 373.2 feet; South 74° 23’ West, 100.00 feet; South 65° 57’ West, 75.0 feet; South 59° 17’ West, 75.0 feet; South 51° 37’ West, 96.0 feet to the point of commencement. PARCEL TWO: Beginning at the point of intersection of tie center line of a sewer right of way granted to the Town of Palo Alto and Leland Stanford jr. University, and of record in Book of Deeds 218 at Page 122 and in Book of Deeds 220 at Page 164, records of Santa Clara County, with the West line of Survey No. 62, Swamp and Overflowed Lands, Santa Clara County. Section 32, Township 5 South, Range 2 West, which said line is the dividing line between the lands of Seale and Laumeister and the Spring Valley Water Company; thence North’ along said West line of Survey No. 62 and prolongation thereof 374.3 feet to a 3 x 4 stake on the bank of the San Francisquito Creek and continuing North 26.0 feet and North 11° 0’ West, 69.5 feet to the center line of the San Francisquito Creek; thence along the center line of the San Francisquito Creek the following courses: Page 2 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 31 Packet Pg. 673 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM North 11° 0’ West, 128.5 feet; North 38° 1’ West, 186.0 feet; North 42° 8’ West, 177.5 feet; North 3° 16’ West, 125.0 feet; North 29° 52’ East, 126.0 feet; North 45° 23’ East, 241.0 feet; North 60° 57’ East, 332.5 feet; North 74° 59’ East, 334.0 feet; South 86° 29’ East, 255.5 feet; South 67° 55’ East, 237.5 feet; South 44° 20’ East, 202.0 feet; South 5° 44’ East, 200.5 feet; South 31° 53’ West, 202.5 feet; South 67° 16’ West, 245.0 feet; South 50° 18’ West, 153.0 feet; South 12° 4’ West, 187.5 feet to the point of intersection with the center line of the Mayfield Sough; thence along the center line of said Mayfield Slough the following courses: South 26° 4’ West, 205.0 feet; South 14° 59’ West, 95.0 feet to the point of intersection with the center line of said sewer right of way; thence along said center line South 78° 43’ West, 91.0 feet to a 3 x 4 stake on the bank of said Mayfield Slough; thence continuing South 78° 43’ West, along said center line 190.2 feet to the point of beginning; also and in addition to the above described parcel of land, all the Southerly one-half of said sewer right of way of uniform width of 33 feet, lying Southerly of above described center line of said sewer right of way between the center line of the Mayfield Slough and the West line of aforesaid Survey No. 62. PARCEL THREE: Beginning at the point of intersection of the Northwesterly line of Embarcadero Road with the common boundary line of San Mateo and Santa Clara Counties; thence from said point of beginning and along said Northwesterly line of Embarcadero Road, South 51° 37’ West, 864.60 feet to a point at the Southeasterly corner of a 60 foot easement to the Faber property; thence at right angles North 38° 23’ West, 79.85 feet to a point on the Southerly line of the Faber lands, said line here forming the boundary line between San Mateo and Santa Clara Counties; thence following said Counties line the six following courses and distances: North 59° 30’ East, 60.60 feet; North 47° 00’ East, 132.0 feet; North 12° 30’ East, 439.56 feet; North 47° 30’ East, 162.46 feet; South 65° 00 East, 240.24 feet; and South 63° 15’ East, 171.9 feet to the point of beginning. PARCEL FOUR: Being a portion of Swamp and Overflow Land Surveys Nos. 60, 62, 46, 43 and 58 and a portion of the said Rancho Rincon de San Francisquito. Commencing at a 5/8” twisted bar set in the Northeast corner of that certain tract of land containing 174.57 acres, conveyed to the Federal Telegraph Company by the Spring Valley Water Company by Deed dated January 8, 1921 and recorded January 15, 1921 in the Office of the County Recorder of Santa Clara, State of California in Book 526 of Deeds, Page 355, running thence East 1.36 chains to a 2” x 3” stake set for the Northeast corner of the Southwest quarter of the Southwest quarter of Section 32, Township 5 South Range 2 West, Mount Diablo Base and Meridian said last mentioned corner being also the Northeast corner of Swamp and Overflow Land Survey No. 60; thence North along the West, boundary line of Swamp and Overflow Land Survey No. 62, 19.42 chains to a concrete monument set at the Southwest corner of that certain tract of land containing 30 acres, conveyed by said Spring Valley Water Company to Gustav Laumeister, by Deed dated December 7, 1920 and recorded in said Recorder’s Office in Book 527 of Deeds, Page 206; thence East, along the Southerly boundary line of said 30 acre Tract and the Easterly production thereof 6.15 chains to a 6” x 6” post marked “C.S.9” standing on the Easterly bank of Mayfield Slough and marking one of the corners of the Westerly boundary line of that certain tract of land containing 4276.2 acres described in Parcel 1 Schedule “A” of that certain Agreement of Sale between Spring Valley Water Company and the Continental Salt and Chemical Company dated February 15, 1922; thence along said Westerly boundary line of said 4276.2 acre Tract and the Easterly bank of said Mayfield Slough the following courses and distances: South 21° 40’ East, 6.25 chains; South 34° 45 East, 3.70 chains; South 48° 34’ East, 3.30 chains; South 83° Page 3 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 32 Packet Pg. 674 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM 05’ East, 3.60 chains; North 69° 23 East, 5.40 chains; South 88° 50’ East, 3.50 chains; South 55° 33’ East, 2.70 chains South 23° 17’ East, 2.72 chains; South 9° 24’ East, 3.90 chains; South 5.70 chains; South 6° 51’ West, 6.20 chains; South 21° 46’ West, 5.00 chains; South 42° 53’ West, 4.30 chains; South 61° 50’ West, 5.70 chains; South 46° 45’ West, 2.80 chains; South 69° 11’ East, 2.90 chains; South 84° 08’ East, 3.50 chains; South 65° 55’ East, 2.70 chains; South 36° 27’ East, 3.17 chains to a point on the Northwesterly boundary of the Rancho Rincon de San Francesquito as patented; thence continuing along said Easterly bank of Mayfield Slough and the Westerly boundary line of said 4276.2 acre Tract South 4° 22’ East, 4.00 chains; South 20° 58’ West, 6.50 chains; South 52° 48’ West, 3.20 chains; South 84° 56’ West, 3.10 chains; North 54° 18’ West, 3.30 chains; North 17° 44’ West, 4.20 chains; North 36° 56’ West, 2.50 chains; North 74° 52’ West, 2.80 chains; South 72° 08’ West, 2.80 chains; South 47° 10’ West, 2.80 chains; South 31° 36’ West, 2.80 chains South 24° 56’ West, 8.20 chains and South 22° 41’ West, 2.90 chains to a 6” x 6” post marked “T.8” standing in the Northerly boundary line of that certain 10 acre tract of land, described in Quitclaim Deed from said Spring Valley Water Company to said Federal Telegraph Company, dated October 12, 1921 and recorded in said Recorder’s Office October 21, 1921 in Book 538 of Deeds, Page 511; thence along said last mentioned Northerly boundary line North 80° 51’ 40” West, 1.13 chains to the Easterly boundary line of said 174.57 acre Tract firstly hereinabove referred to; thence along said last mentioned Easterly line North 7° 32’ West, 5.36 chains to a 2 x 3 stake marked S.V. 18 thence North 40.76 chains to the point of commencement. PARCEL FIVE: Commencing at a 5/8 inch twisted bar set in the Northeast corner of that certain tract of land containing 174.57 acres, conveyed to the Federal Telegraph Company by the Spring Valley Water Company by Deed dated January 8, 1921, recorded January 15, 1921, in the Office of the County Recorder of Santa Clara County, State of California, in Book 526 of Deeds, Page 355; running thence East, 89.76 feet to a 2” x 3” stake set for the Northeast corner of the Southwest quarter of the Southwest quarter of Section 32, Township 5 South, Range 2 West, Mount Diablo Meridian, said last mentioned corner being also the Northeast corner of Swamp and Overflow Land Survey No.. 60; thence North along the West, boundary line of Swamp and Overflow Land Survey No.. 62, 1285.0 feet; thence leaving said boundary line West, 148.1 feet; North 436.9 feet to the Southerly line of Embarcadero Road; thence Westerly along said Southerly line of Embarcadero Road, the five following courses and distances: South 78° 43’ West, 213.5 feet; South 74° 23’ West, 96.8 feet; South 65° 57’ West, 70.9 feet; South 59° 17’ West, 71.7 feet; South 51° 37’ West, 88.95 feet, to a point on the common boundary line between San Mateo and Santa Clara Counties thence leaving said Southerly line of Embarcadero Road and following said County boundary line the eight following courses and distances: South 45° 50’ East, 335.02 feet; South 23° 14’ East, 68.5 feet; South 6° 43’ East, 263.5 feet; South 7° 59’ West, 140.5 feet; South 26° 14’ West, 106.0 feet; South 65° 36’ West, 98.6 feet; North 76° 36’ West, 91.5 feet; North 43° 55’ West, 83.0 feet; thence leaving said County boundary line, South 780 feet, to the Northerly line of the property of the Federal Telegraph Company hereinbefore described; thence along said Northerly property line of Federal Telegraph Company, East, 564.64 feet, and to the point of beginning. PARCEL SIX: Beginning at a point on the center line of Embarcadero Road, said point being on the common boundary line between San Mateo and Santa Clara Counties; thence running Southeasterly along said County line and the Southwesterly most line of that certain 6.59 acre Tract conveyed by Alfred and Grace Seale to the City of Palo Alto and recorded on the 14th day of October 1932, Page 308, Book 575, of Official Records of San Mateo County, the five following courses and distances: Page 4 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 33 Packet Pg. 675 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM South 63° 15’ East, 27.9 feet; South 46° 0’ East, 253.4 feet; South 20° 45’ East, 51.5 feet; South 40° 0’ East, 84.5 feet and South 14° 32’ East, 228.5 feet to a point; thence leaving said County line and running North 45° 05’ West, 623.29 feet to the center line of Embarcadero Road, thence along said center line of Embarcadero Road North 51° 37’ East, 133.0 feet to the point of beginning. EXCLUDING THEREFROM that portion now used for road purposes. PARCEL SEVEN: Beginning at a corner monument on the center line of Embarcadero Road set near the Westerly bank of Mayfield Slough; thence from said corner monument along said center line of Embarcadero Road, North 78° 43’ East, 281.2 feet to the center line of said Mayfield Slough; thence following said center line of said Slough its meanders upstream the following courses and distances: South 14° 59’ West, 37.5 feet, South 1° 14’ East, 287.5 feet, South 9° 10’ East, 219.0 feet, South 17° 36 East, 20.0 feet; thence leaving said Slough, West, 458.1 feet to a point; thence North 470.5 feet to the center line of Embarcadero Road; thence following said center line of said road, North 78° 43’ East, 151.0 feet to the point of commencement. PARCEL EIGHT: Beginning at a point on the common boundary line between the Counties of San Mateo and Santa Clara which point is the most Easterly corner of that certain tract of land conveyed by Grace Ross Seale, a widow, to the City of Palo Alto, by Deed dated June 11, 1933 and recorded July 11, 1933 in Volume 658 of Official Records, Page 23, Santa Clara County Records; said point of beginning being distant along the Southwesterly line of said land as conveyed to the City of Palo Alto, South 45° 05’ East, 623.29 feet from the center line of Embarcadero Road; thence from said point of beginning along the East, boundary line of the land of Seale, South 100.00 feet; thence leaving said boundary line North 22° 32’ 30” West, 184.72 feet to a point on the Southwesterly line of said tract of land as conveyed to the City of Palo Alto; thence along last mentioned line South 45° 05’ East, 100.00 feet to the point of beginning. PARCEL NINE: Being parts of Sections 32 and 33, Township 5 South, Range 2 West, M.D.M., part of Section 5, Township 6 South, Range 2 West, M.D.M., and being a part of Rancho Rincon de San Francisquito, described as follows: Beginning at a point on the Northeasterly line of State Highway, designated as District IV, Santa Clara County, Route 68, Section A, known as the Bayshore Highway and U.S. Alternate 101, at the point of intersection of said highway line with the Northwesterly boundary of that certain 4221.32 acre Tract designated as Item No. 1 as conveyed by Spring Valley Water Company to Alviso Salt Company, by Deed dated February 15, 1927 and recorded in Volume 337 of Official Records at Page 485, et seq., Santa Clara County Records, and which point of beginning is distant on said highway line South 39° 42’ East, 294.09 feet from a State Highway concrete monument set at Highway Station 60; thence from said point of beginning along the Northeasterly line of said State Highway, South 39° 42’ East, (called South 39° 56’ East, on the Plan of said Highway and designated as South 39° 45’ East, 3742.41 feet in the conveyance from the Alviso Salt Company to State of California, by Deed dated October 30, 1931 and recorded in Volume 592 of Official Records at Page 17, et seq., Santa Clara County Records) for a distance of 3741.82 feet to a point of intersection with a Southeasterly line of said 4221.37 acre Tract, which point is distant along said highway line South 39° 42’ East, 36.91 feet from a State Page 5 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 34 Packet Pg. 676 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM Highway concrete monument at Station 100; thence leaving said highway along said Southeasterly boundary of said 4221.32 acre Tract the following courses and distances: North 41° 25’ East, 879.92 feet; South 68° 45’ East, 165.66 feet; North 6° 00’ West, 270.60 feet; North 27° 25’ East, 138.60 feet; North 68° 45’ East, 653.40 feet and South 45° 30’ East, 82.50 feet (called North 45° 30’ East, in Quiet Title Decree No. 38406); thence leaving said Southeasterly boundary line of said Tract North 69° 29’ East, 178.00 feet, being along a roadway to a junction of roads; thence through said 4221.32 acre Tract and along the Southerly side of a levee the following courses and distances: North 2° 16’ East, 202.60 feet; North 24° 36’ East, 200.00 feet; North 31° 37’ East, 253.00 feet; North 36° 13’ East, 570.00 feet; North 36° 43’ East, 248.00 feet; North 27° 30’ East, 470.00 feet; North 54° 28’ East, 263.00 feet; North 86° 48’ East, 400.00 feet; North 75° 28’ East, 197.00 feet; North 48° 13’ East, 262.00 feet; North 18° 25’ East, 395.00 feet; North 14° 58’ West, 200.00 feet; North 27° 32’ West, 213.00 feet; North 50° 23’ West, 427.00 feet; North 18° 11’ West, 216.00 feet; North 3° 34’ East, 200.00 feet; North 25° 48’ East, 276.00 feet; North 58° 54’ East, 372.60 feet; North 80° 58’ East, 300.00 feet; North 71° 11’ East, 200.00 feet; North 39° 53’ East, 180.00 feet; North 16° 05’ East, 200.00 feet; North 15° 29’ West, 200.00 feet; North 44° 41’ West, 150.00 feet; North 57° 23’ West, 149.00 feet and South 85° 13’ West, 113.46 feet to a point on the Northerly line of Rancho Rincon de San Francisquito; thence along said Rancho line North 70° 00’ East, 541.35 feet (said distance being calculated as 572.00 feet from the Quiet Title Decree No. 38406 and recorded May 8, 1931 in Volume 569 of Official Records at Page 126, et seq., Santa Clara County Records) to the center line of Charleston Slough which point is the most Easterly corner of the 70.73 acre Parcel described in Grant Deed from the City of Palo Alto to the Alviso Salt Company dated April 14, 1928 and recorded in Volume 473 of Official Records at Page 475, et seq., Santa Clara County Records; thence in a Northerly direction along the center line of said Slough the following courses and distances: North 2° 41’ 16” West, 507.52 feet (designated as North 7° 15’ West, 507.67 feet in said Grant Deed); North 7° 38’ 58” West, 218.66 feet (designated as North 7° 58’ West, 210.01 feet in said Grant Deed); North 21° 31’ West, 368.02 feet; North 43° 14’ West, 414.02 feet; North 60° 23’ West, 582.98 feet; North 75° 04’ West, 754.97 feet to a point on the dividing line between Sections 32 and 33, Township 5 South, Range 2 West, M.D.M., and continuing along the center line of said Charleston Slough and the Southerly line of that certain parcel of land containing 33.34 acres and described as Parcel No. 2 in Grant Deed from the Alviso Salt Company to City of Palo Alto which Deed is dated October 2, 1928 and recorded in Volume 474 of Official Records, Page 410, Santa Clara County Records, the following courses and distances: North 69° 47’ West, 640.86 feet; North 51° 51’ West, 799.99 feet and North 22° 26’ West, 330.00 feet to a point on the Northerly line of said 4221.32 acre Tract; thence along the Southerly bank of the Mayfield Slough and the Northerly line of said 4221.32 acre Tract the following courses and distances: South 46° 20’ West, 222.29 feet; South 55° 50’ West, 640.20 feet (646.80 feet in decree 38406); South 73° 44’ West, 459.36 feet and North 75° 06’ West, 158.40 feet to a point on the Easterly line of that certain parcel of land containing 40.61 acres and described as Parcel No. 1 in Grant Deed from the Alviso Salt Company to City of Palo Alto which Deed is dated October 23, 1928 and recorded in Volume 474 of Official Records, Page 410, Santa Clara County Records; thence leaving said Mayfield Slough and the Northerly line of said 4221.32 acre Tract Southeasterly along formerly the Westerly edge of a smaller Slough and the Easterly line of said 40.61 acre Tract, the following courses and distances: South 25° 29’ East, 792.00 feet and South 28° 30’ East, 785.40 feet; thence leaving the bank of said former smaller Slough South 59° 23’ West, 171.07 feet to the Southerly corner of said 40.61 acre Tract on the Easterly bank of said Mayfield Slough and the Westerly line of said 4221.32 acre Tract; thence along the Page 6 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 35 Packet Pg. 677 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM Easterly bank of said Mayfield Slough and the Westerly line of said 4221.32 acre Tract the following courses and distances: South 9° 24’ East, 257.40 feet; South 376.20 feet; South 6° 51’ West, 409.20 feet; South 21° 46’ West, 330.00 feet; South 42° 53’ West, 283.80 feet; South 61° 50’ West, 376.20 feet; South 46° 45’ West, 184.80 feet; South 69° 11’ East, 191.40 feet; South 84° 08’ East, 231.00 feet; South 65° 55’ East, 178.20 feet; South 36° 27’ East, 209.22 feet to a point on the Northerly line of said Rancho Rincon de San Francisquito (called 209.42 feet in Quiet Title Decree No. 38406); South 4° 22’ East, 264.00 feet; South 20° 58’ West, 429.00 feet; South 52° 48’ West, 211,20 feet; South 84° 56’ West, 204.60 feet; North 54° 18’ West, 217.80 feet; North 17° 44’ West, 277.20 feet; North 36° 56’ West, 165.00 feet; North 74° 52’ West, 184.80 feet; South 72° 08’ West, 184.80 feet; South 47° 10’ West, 184.80 feet; South 31° 36’ West, 184.80 feet; South 24° 56’ West, 541.20 feet and South 22° 41’ West, 191.40 feet to a 6” x 6” post originally set and marked “T.8”, standing in the Northerly line of that certain 10 acre Tract embracing the boat landing of Clarke as delineated and located in the description of that certain 1576.69 acre Tract conveyed by E. G. Moody to Spring Valley Water Company by Deed dated August 13, 1906 and recoded in Volume 335 of Deeds, Page 447, Santa Clara County Records; thence Southeasterly and Southwesterly along the dividing line between said 10 acre Tract and said 1576.69 acre Tract the following courses and distances: South 24° 10’ East, 145.20 feet and South 77° 30’ East, 132.00 feet to a 6” x 6” post originally set and marked “T.10” and South 69° 16’ West, 1369.01 feet to the Northeasterly line of said State Highway known as the Bayshore Highway and the point of beginning. PARCEL TEN: Being a part of Section 32, Township 5 South, Range 2 West, M.D.M., and a part of said 4221.32 acre Tract conveyed by Spring Valley Water Company to Alviso Salt Company by Deed dated February 15, 1927 and recorded in Volume 337 of Official Records, Pages 485, et seq., in the Office of the County Recorder of Santa Clara County, California, described as follows: Beginning at a 6” x 6” post marked “C.S. 9” standing on the Easterly bank of Mayfield Slough at one of the corners in the Westerly line of that certain 4221.32 acre Tract designated Item No. 1 as conveyed by Spring Valley Water Company to Alviso Salt Company by Deed dated February 15, 1927 and recorded in Volume 337 of Official Records, Pages 485, et seq., in the Office of the County Recorder of Santa Clara County, California and running thence along the Westerly and Northerly lines of said 4221.32 acre Tract the eleven following courses and distances: West, 1.45 chains to a point in the center line of said Mayfield Slough; thence Northwesterly and Northeasterly along said center line of said Mayfield Slough following its meanders down stream the seven following courses and distances: North 17° 36’ West, 0.303 chains; North 9° 10’ West, 2.318 chains; North 1° 14’ West, 4.356 chains; North 14° 59’ East, 1.439 chains; North 26° 04’ East, 3.106 chains; North 38° 36’ East, 3.189 chains; North 79° 23’ East, 2.70 chains; thence leaving said center line of said Slough and running South 0.65 chains to a point on the Southerly bank of said Slough; thence Southeasterly along said Southerly bank of said Mayfield Slough the two following courses and distances: South 54° 54’ East, 8.30 chains and South 75° 06’ East, 2.80 chains to a point from which a 6” x 6” witness post painted white bears South 56° 47’ West, 100.00 feet; thence leaving said Mayfield Slough and said Northerly line of said 4221.32 acre Tract and running Southeasterly along the general Westerly bank or edge Page 7 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 36 Packet Pg. 678 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM of a smaller Slough the two following courses and distances: South 25° 29’ East, 12.00 chains to a 6” x 6” post painted white and South 28° 30’ East, 11.90 chains to a 6” x 6” post painted white; thence leaving said bank of said smaller Slough and running South 59° 23’ West, 2.592 chains to a point on said Easterly bank of said Mayfield Slough and in said Westerly line of said 4221.32 acre Tract; and thence Northwesterly along said Easterly bank of said Mayfield Slough along said Westerly line of said 4221.32 acre Tract the eight following courses and distances: North 23° 17’ West, 2.722 chains; North 55° 33’ West, 2.70 chains; North 88° 50’ West, 3.50 chains; South 69° 23’ West, 5.40 chains; North 83° 05’ West, 3.60 chains; North 48° 34’ West, 3.30 chains; North 34° 45’ West, 3.70 chains and North 21° 40’ West, 6.25 chains to the point of beginning. PARCEL ELEVEN: Being a part of Section 32, Township 5 South, Range 2 West, M.D.M., and a part of said 4221.32 acre Tract conveyed by Spring Valley Water Company to Alviso Salt Company by Deed dated February 15, 1927 and recorded in Volume 337 of Official Records, Pages 485, et seq., in the Office of the County Recorder of Santa Clara County, California, described as follows: Beginning at the point of intersection of the center line of Charleston Slough with the dividing line between Sections 32 and 33, Township 5 South, Range 2 West, M.D.M., said point of beginning being also in the Easterly line of that certain 4221.32 acre Tract designated Item No. 1 as conveyed by Spring Valley Water Company to Alviso Salt Company by Deed dated February 15, 1927 and recorded in Volume 337 of Official Records, Pages 485, et seq., in the Office of the County Recorder of Santa Clara County, California and running thence Northerly along said dividing line between said Sections 32 and 33 and along said Easterly line of said 4221.32 acre Tract, North 20.21 chains to a point on the shore of the Bay of San Francisco; thence Northwesterly and Southwesterly along said shore of the Bay of San Francisco and along the Southeasterly bank of the Charleston Slough and along the Northerly line of said 4221.32 acre Tract the three following courses and distances: North 22° West, 5.10 chains; South 72° 27’ West, 11.86 chains and South 55° 06’ West, 5.16 chains; thence leaving said bank of said Charleston Slough and running Southwesterly and still along the Northerly line of said 4221.32 acre Tract, South 46° 20’ West, 4.242 chains to a point in said center line of said Charleston Slough; and thence leaving said line of said 4221.32 acre Tract and running Southwesterly along said center line of said Charleston Slough following its meanders upstream the three following courses and distances: South 22° 26’ East, 5.00 chains; South 51° 51’ East, 12.121 chains and South 69° 47’ East, 9.71 chains to the point of beginning. PARCEL TWELVE: Beginning at a concrete monument set near the intersection of the Northerly bank of Mayfield Slough and the shoreline of San Francisco Bay, as said monument is described in that certain Indenture made and entered into March 25, 1911, by and between the Spring Valley Water Company, the party of the first part, and the Morgan Oyster Company, the party of the second part, and recorded April 3, 1911, in Volume 192 of Deeds at Page 584, San Mateo County Records; thence from said concrete monument at the point of beginning and along the dividing line described in the above mentioned Indenture, said line being the Southwesterly most boundary of Survey No. 64 and Resurvey No. 48 of the Morgan Oyster Company, patented January 9, 1879, and recorded in Book “2” Patents at Page 18, on March 19, 1879, records of San Mateo County, as follows: Page 8 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 37 Packet Pg. 679 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM North 12° 00’ West, 7.50 chains to a concrete monument, North 49° 00’ West, 17.50 chains, to a concrete monument, North 36° 30’ West, 12.50 chains; North 67° 30’ West, 10.00 chains; North 81° 30’ West, 15.00 chains; North 42° 00’ West, 5.70 chains; thence leaving the above mentioned dividing line and passing through Survey No. 64 and Resurvey No. 48 and Lot “D” of Survey No. 76 of the Morgan Oyster Company, the last described Survey patented October 17, 1878, and recorded in Book “2” of Patents at Page 20, on March 19, 1879, records of San Mateo County, East, 78.18 chains to a point on the line dividing Sections 28 and 29 of Township 5 South, Range 2 West, M.D.M.; thence on and along said section line and the Easterly most boundary of Lot “D” Survey No. 76 and across the Northwesterly most boundary of Lot “B” Survey No. 1, Morgan Oyster Company, patented October 17, 1878, and recorded in Book “C” of Patents, at Page 113, on February 28, 1879, records of Santa Clara County, and continuing along the line dividing Sections 32 and 33, South 28.50 chains; the last described course crossing the boundary line between San Mateo and Santa Clara Counties; thence leaving said section line and following the exterior boundaries of the Morgan Oyster Company, Survey No. 8, Lot “B” patented August 11, 1890, and recorded in Book “E” of Patents at Page 40 on September 27, 1890, records of Santa Clara County, in a general Southeasterly direction, the six following courses and distances: East, 3 chains; South 25° 30’ East, 23.80 chains; East, 7.00 chains; South 5.00 chains; South 59° 45’ East, 32.18 chains; East, 2.51 chains; thence South 55° 00’ West, 10.64 chains; North 54° 15’ West, 40.00 chains; North 21° 15’ West, 22.73 chains; the last described course crossing the line between Sections 32 and 33, Township 5 South, Range 2 West, M.D.M.; thence South 44° 45’ West, 4.62 chains; North 45° 00’ West, 4.24 chains; thence following the exterior boundary of Survey No. 1, Lot “C” Morgan Oyster Company, South 21° 00’ West, 5.00 chains; South 68° 45’ West, 8.00 chains; North 8° 30’ West, 4.00 chains; North 25° 45’ East, 3.00 chains to a point on a line between Santa Clara and San Mateo County; thence on and along said County line North 38° 45’ East, 5.12 chains; thence leaving said County line and the boundary of Survey No. 1, Lot “C”, West, 10.40 chains to the point of beginning. EXCEPTING THEREFROM any portion lying within Parcel Nine as described herein. PARCEL THIRTEEN: Being a Resurvey of a part of Swamp and Overflowed Lands Survey 61, Santa Clara County, and being a fraction in the West ½ of Section 33, Township 5 South, Range 2 West, M.D.M., described as follows: Beginning at the intersection of the Northern boundary line of the Rancho Rincon de San Francisquito with the East line of Swamp and Overflowed Lands Survey 46, Santa Clara County, said point of beginning being 4.68 chains North of the corner to Sections 32 and 33, Township 5 South, Range 2 West, and Sections 4 and 5, Township 5 South, Range 2 West, M.D.M.; thence North along the West line of said Swamp and Overflowed Lands Survey 46, 39.41 chains to the intersection of the Westerly line of Tide Land Location 164 of Land Survey No. 8, Santa Clara County; thence following the line of said Tide Land Location 164, South 21° 15’ East, 5.94 chains; South 54° 15’ East, 40 chains; North 55° East, 6.58 chains to the West line of the Swamp and Overflowed Lands Survey 135, Santa Clara County; thence along the line of said Survey 135, South 9.81 chains to the Northerly boundary line of said Rancho Rincon de San Francisquito; thence along the North line of said Rancho, North 82° 30’ West, 20.56 chains; South 70° West, 20.87 chains to the point of beginning. EXCEPTING THEREFROM any portion lying within Parcels Nine and Twelve as described herein. ALSO EXCEPTING THEREFROM any portion lying within Rancho Rincon de San Francisquito. Page 9 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 38 Packet Pg. 680 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM PARCEL FOURTEEN: Beginning at a concrete monument set near the intersection of the Northerly bank of San Francesquito Creek with the shore line of the San Francisco Bay as said concrete monument as described in that certain Indenture made and entered into March 25, 1911, by and between the Spring Valley Water Company, the party of the first part and the Morgan Oyster Company, the party of the second part, and recorded April 3, 1911 in Volume 192 of Deeds, Page 584, San Mateo County Records; thence from the said concrete monument at the point of beginning and along the dividing lines described in the above mentioned Indenture as follows: North 12° 00” West, 495.21 feet to a concrete monument; North 49° 00’ West, 1155.40 feet to a concrete monument; North 36° 30’ 30” West, 824.90 feet; North 67° 30’ 40” West, 659.98 feet; North 81° 30’ 40” West, 990.02 feet; North 42° 00’ 30” West, 376.15 feet; North 20° 00’ 20’ West, 577.41 feet; North 39° 00’ 30” West, 989.90 feet; East, 72.60 feet; North 52° 30’ West, 1056 feet; North 25° 00’ West, 747.12 feet; West, 711.45 feet and North 1223.31 feet to the Southerly line of Bay Road, from which point the ¼ section corner between Sections 19 and 30 in Township 5 South, Range 2 West, M. D. B. & M. bears North 85.38 feet distant; thence leaving said dividing line and along the said Southerly line of Bay Road, South 66° 12’ 40” West, 889.05 feet to the Easterly line of the Rancho de Las Pulgas, South 23° 22’ 53” West, 61.13 feet distant from angle point in said Rancho line designated as P.M.C. 5; thence leaving said Southerly line of Bay Road along said Easterly Rancho line, South 23° 22’ 53” West, 1056.95 feet to the angle point designated as P.M.C. #4 and South 13° 12’ 45” East, 1272.92 feet to the line dividing the North one-half from the South one-half of section 30 in said Township and Range; thence along said dividing line North 89° 29’ 43” East, 2239.49 feet; thence leaving said dividing line South 2647.90 feet to the South line of said Section 30; thence East, 1320 feet to the corner common to Sections 29, 30, 31 and 32 in said Township and Range; thence South between Sections 31 and 32, 1320 feet; thence East, 990 feet to the bank of the San Francisquito Creek; thence along said Creek bank as follows: North 39° 59’ East, 205.96 feet; North 52° 12’ East, 337.00 feet; North 63° 35’ East, 386.31 feet; North 78° 41’ East, 310.53 feet; North 88° 27’ East, 350.00 feet; South 49° 27’ East, 500.00 feet; South 28° 26’ West, 400.00 feet; South 50° 06’ West, 400.00 feet; South 63° East, 495 feet; North 65° 30’ East, 396.00 feet, and North 26° 15’ East, 518.18 feet to the point of beginning. EXCEPTING THEREFROM any portion lying in the County of San Mateo. PARCEL FIFTEEN: Being a portion of the Southwest quarter of the Northwest quarter of Section 32, Township 5 South, Range 2 West, M.D.M., described as follows: Beginning at the common corner for Sections 29, 30, 31 and 32, Township 5 South, Range 2 West; thence South between Sections 31 and 32, 1320 feet; thence East, 28.50 feet to the true point of commencement, East, 1,108.50 feet to the center of the San Francisquito Creek; also known as the Wilson Slough; thence along the center of said San Francisquito Creek, the following courses: South 3° 16’ East, 50.0 feet; South 42° 08’ East, 177.50 feet; South 33° 01’ East, 186.00 feet; South 11° 01’ East, 128.5 feet; South 16° 34’ West, 147.50 feet; South 44° 3’ West, 179.00 feet; South 67° 57’ West, 132.50 feet; North 57° 0’ West, 175.00 feet; North 66° 11’ West, 278.50 feet; North 84° 0’ West, 172.50 feet; South 56° 01’ West, 102.50 feet; South 28° 53’ West, 146.00 feet; South 0° 58’ East, 155.00 feet; South 46° 05’ East, 102.50 feet; and South 72° 39’ East, 33.00 feet; thence leaving said Creek, South 51° 37’ West, 355.00 feet; thence North 65° 0’ West, 166.00 feet to a concrete monument standing 28.50 feet due East, Page 10 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 39 Packet Pg. 681 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM from the West line of Section 32; thence North 1264.50 feet to the aforesaid true point of commencement. PARCEL SIXTEEN: Commencing at the point of intersection of the center line of Embarcadero Road, prolonged, with the center line of the San Francisquito Creek, which said point of intersection is distant North 51° 37’ East, 3283.42 feet along the center line of Embarcadero Road with the center line of Arroyo Road, which intersection of said center lines is marked by a concrete monument and shown upon the Map of Subdivision No. 5, Scale Tract, which Map is of record in the Office of the County Recorder of Santa Clara County, California; thence leaving said center line of Embarcadero Road, and running along the center line of the San Francisquito Creek South 63° 15’ East, 27.9 feet and South 46° 0’ East, 7.76 feet; thence leaving the center line of said Creek and running parallel to and distant 33 feet Southeasterly from said center line of Embarcadero Road, prolonged, into San Mateo County, North 51° 37’ East, 400.75 feet to the center line of the San Francisquito Creek; thence along the center line of said Creek North 45° 50’ West, 33.28 feet to said center line of Embarcadero Road, prolonged; thence continuing along the center line of said San Francisquito Creek North 72° 59’ West, 295.79 feet; thence leaving said Creek and running on a course parallel to and distant 244.45 feet from the center line of said Embarcadero Road, prolonged, South 51° 27’ West, 355 feet, more or less, a point of intersection with the center line of San Francisquito Creek, said point of intersection being distant on said center line of said Creek South 65° East, 166 feet from a concrete monument; thence following the center line of said Creek South 65° East, 74.24 feet and South 63° 15’ East, 199.8 feet to the point of commencement. PARCEL SEVENTEEN: Being a part of the Southeasterly quarter of section 30 and the Northeasterly quarter of Section 31, Township 5 South, Range 2 West, M.D.M., described as follows: Commencing at a concrete monument on the line dividing San Mateo and Santa Clara Counties, said concrete monument here forming the Southwesterly most corner of that certain 26.66 acre Tract conveyed by Deed July 19, 1926, and recorded in Volume 246, Page No. 168, records of San Mateo County to the City of Palo Alto by Peter Faber and Laura E. Faber, his wife; thence from said point of commencement, North 38° 23’ West, 3600.00 feet to a point; thence North 51° 37’ East, 1131.0 feet to a point on the Westerly line of that certain 286.562 acre Tract under Lease by the City of Palo Alto from Gustav and Mabel S. Laumeister, dated April 22, 1926, said Lease being on file in the Office of the City clerk of said City; thence South along said line 939.8 feet to a point on the line between Sections 30 and 31, Township 5 South, Range 2 West, M.D.M; thence East, along said dividing line 1320 feet to the section corner common to Sections 29, 30, 31 and 32, Township 5 South, Range 2 West, M.D.M.; thence South 1320 feet along the line between Sections 31 and 32 Township 5 South, Range 2 West, to a point; thence leaving said section line East, 28.5 feet to a point, said point being the true point of commencement of that certain 26.66 acre Tract hereinbefore mentioned; thence South 1264.5 feet to the point of commencement. PARCEL EIGHTEEN: Being a part of Sections 30 and 31, Township 5 South, Range 2 West, M.D.M., described as follows: Commencing at a concrete monument on the line dividing San Mateo and Santa Clara Counties, said concrete monument here forming the Southwesterly most corner of that certain 26.66 acre Tract conveyed by Deed July 19, 1926, and recorded in Volume 246, Page 168, records of San Mateo County to the City of Palo Alto by Peter Faber and Laura E. Faber, his wife; thence from said point of commencement, North 38° 23’ West, 3600.00 feet along the Southwesterly line of that certain 71.33 acre Tract under Lease by the City of Palo Alto Page 11 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 40 Packet Pg. 682 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM and Peter Faber and Laura E. Faber dated March 11, 1929, said lease being on file in the Office of the City Clerk of said City; thence South 51° 37’ West, 684.75 feet; thence South 38° 23’ East, 3890.62 feet to the line dividing San Mateo and Santa Clara Counties; thence along said line dividing San Mateo and Santa Clara Counties the following courses and distances; North 59° 30’ East, 60.60 feet; North 47° 00’ East, 132.00 feet; North 12° 30’ East, 439.56 feet; North 47° 30’ East, 152.46 feet to the point of commencement. PARCEL NINETEEN: Beginning at a point marked by a concrete monument standing on the boundary line between Santa Clara County and San Mateo County at the point of intersection of said County boundary line with the common Easterly line of Pulgas Ranch and the Westerly line of Section 31, Township 5 South, Range 3 West, M.D.M.; thence on and along said County boundary line North 81° 30’ East, 118.80 feet, South 26° 30’ East, 211.86 feet, South 56° 45’ East, 178.20 feet and North 59° 30’ East, 106.38 feet to a point on said County boundary line, which point is distant North 38° 23’ West, 79.85 feet from the Northwesterly line of Embarcadero Road; thence leaving said County boundary line North 38° 57’ West, 1169.45 feet to a fence corner; thence South 51° 20’ West, 477.00 feet; thence South 72° 27’ West, 503.00 feet; thence North 88° 21’ West, 233.00 feet; thence South 72° 59’ West, 189.00 feet; thence South 66° 32’ West, 471.00 feet; thence South 12° 04’ East, 200.85 feet to a point on said County boundary line; thence on and along said County boundary line South 69° 30’ East, 375.40 feet, North 46° 00’ East, 693.00 feet, South 48° 30’ East, 303.60 feet, South 47° 30’ West, 330.00 feet, South 14° 00’ East, 117.48 feet, South 67° 30’ East, 198.00 feet, North 49° 00’ East, 475.00 feet, North 86° 30’ East, 290.40 feet and North 62° 30’ East, 475.00 feet, North 86° 30’ East, 290.40 feet and North 62° 30’ East, 273.90 feet to the point of beginning. PARCEL TWENTY: A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203 Official Records of San Mateo County distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 55.00 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 2588.50 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek South 15° 53’ East, 151.55 feet; thence South 38° 23’ East, 1448.69 feet to the Northerly boundary line of said lands of Geng; thence North 51° 20’ East, along said Northerly boundary line of lands of Geng, 58.00 feet to the true point of commencement. PARCEL TWENTY-ONE: A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 113.00 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 2448.69 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said Page 12 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 41 Packet Pg. 683 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM center line of San Francisquito Creek South 15° 53’ East, 159.39 feet; thence South 38° 23’ East, 2301.65 feet to the Northerly boundary line of said lands of Geng; thence North 51° 20’ East, along said Northerly boundary line of lands of Geng, 61.00 feet to the true point of commencement. PARCEL TWENTY-TWO (A): A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 239.50 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 2151.61 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek South 14° 07’ East, 171.53 feet; thence South 38° 23’ East, 1995.49 feet to the Northerly boundary line of said lands of Geng; thence North 51° 20’ East, along said Northerly boundary line of lands of Geng, 70.50 feet to the true point of commencement. PARCEL TWENTY-TWO (B): A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 310.00 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 1995.49 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek South 14° 07’ East, 184.91 feet; thence South 38° 23’ East, 1827.19 feet to the Northerly boundary line of said lands of Geng; thence North 51° 20’ East, along said Northerly boundary line of lands of Geng, 76.00 feet to the true point of commencement. PARCEL TWENTY-TWO (C): A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 386.00 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 1827.19 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek with the following courses and distances: South 14° 07’ East, 125.57 feet and South 11° 38’ East, 70.85 feet; thence South 38° 23’ East, 1649.75 feet to the Northerly boundary line of said lands of Geng; thence North 51° 20’ East, along said Northerly boundary Page 13 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 42 Packet Pg. 684 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM line of lands of Geng, 83.50 feet to the true point of commencement. PARCEL TWENTY-TWO (D): A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 469.50 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 1649.75 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek with the following courses and distances: South 11° 38’ East, 157.36 feet and South 2° 09’ East, 39.22 feet; thence South 38° 23’ East, 1444.72 feet to the Northerly boundary line of said lands of Geng; thence North 72° 27’ East, along said Northerly boundary line of lands of Geng 96.62 feet; thence continuing along said Northerly boundary line of lands of Geng North 51° 20’ East, 7.50 feet to the true point of commencement. PARCEL TWENTY-TWO (E): A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 477.00 feet; thence South 72° 27’ West, 96.62 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 1444.72 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek South 2° 09’ East, 182.71 feet; thence South 38° 23’ East, 1256.24 feet to the Northerly boundary line of said lands of Geng; thence along said Northerly boundary line of lands of Geng, North 72° 27’ East, 120.64 feet to the true point of commencement. PARCEL TWENTY-TWO (F): A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 477.00 feet; thence South 72° 27’ West, 217.26 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 1256.24 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek with the following courses and distances: Page 14 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 43 Packet Pg. 685 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM South 2° 09’ East, 126.43 feet and South 10° 23’ East, 111.83 feet; thence South 38° 23’ East, 1007.09 feet to the Northerly boundary line of said lands of Geng; thence along said Northerly boundary line of lands of Geng, North 72° 27’ East, 142.14 feet to the true point of commencement. PARCEL TWENTY-TWO (G): A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203, Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, 477.00 feet; thence South 72° 27’ West, 359.40 feet to the true point of commencement; thence from said true point of commencement North 38° 23’ West, 1007.09 feet to the center line of the San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek with the following courses and distances: South 10° 23’ East, 89.67 feet; thence South 28° 49’ East, 329.52 feet, South 18° 53’ East, 154.33 feet, South 0° 39’ West, 254.10 feet and South 24° 03’ West, 76.07 feet to the Northerly boundary line of said lands of Geng; thence North 72° 59’ East, along said Northerly boundary line of lands of Geng, a distance of 53.05 feet; thence continuing along said Northerly boundary line of lands of Geng, South 88° 21’ East, 233.0 feet and North 72° 27’ East, 143.60 feet to the true point of commencement. PARCEL TWENTY-THREE: A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203 Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence continuing North 38° 23’ West, along said Southwesterly boundary line of the lands of the City of Palo Alto, 2721.17 feet to the Northwesterly corner of the lands described in said Deed from Nicolay, et ux, to the City of Palo Alto; thence upstream along said center line of San Francisquito Creek as realigned South 15° 53’ East, 143.72 feet; thence South 38° 23’ East, 2588.50 feet to the Northerly boundary line of said lands of Geng, thence North 51° 20 East, along said Northerly boundary line of the lands of Geng, 55.00 feet to the point of beginning. PARCEL TWENTY-FOUR: A portion of lands of Peter Faber located in Section 31, Township 5 South, Range 2 West, M.D.M., and which portion is more particularly described as follows: Beginning at a point on the Southwesterly boundary line of the lands conveyed by Nicolay, et ux, to the City of Palo Alto by Deed recorded in Volume 858, Page 203 Official Records of San Mateo County, distant thereon North 38° 23’ West, 1249.30 feet from the Northwesterly line of the Embarcadero Road, said point of beginning being also the most Northerly corner of the lands of Jacob J. Geng; thence South 51° 20’ West, Page 15 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 44 Packet Pg. 686 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM 174.00 feet to the point of commencement; thence from the true point of commencement North 38° 23’ West, 2301.65 feet to the center line of San Francisquito Creek as realigned; thence upstream along said center line of San Francisquito Creek with the following courses and distances: South 15° 53’ East, 66.57 feet and South 14° 07’ East, 97.40 feet; thence South 38° 23’ East, 2151.61 feet to the Northerly boundary line of said lands of Geng, thence North 51° 20 East, along said Northerly boundary line of the lands of Geng, 65.50 feet to the true point of commencement. PARCEL TWENTY-FIVE: All of said land being in Section 32, Township 5 South, Range 2 West, M.D.M., more particularly described as follows: Beginning at the point of intersection of the Southerly line of Embarcadero Road with the line of the common boundary between San Mateo and Santa Clara Counties; thence from said point of beginning and following the Southerly line of Embarcadero Road, North 51° 37’ East, 400.75 feet to the intersection thereof with aforesaid County boundary line; thence leaving said Southerly line of Embarcadero Road and following said County boundary, the twelve following courses and distances: South 45° 50’ East, 335.02 feet; South 23° 14’ East, 68.50 feet; South 6° 43’ East, 263.50 feet; South 7° 59’ West, 140.50 feet; South 26° 14’ West, 106.00 feet; South 65° 36’ West, 98.60 feet; North 76° 36’ West, 91.50 feet; North 43° 55’ West, 83.00 feet; North 14° 32’ West, 228.50 feet; North 40° 00’ West, 84.5 feet; North 20° 45’ West, 51.50 feet; North 46° 00’ West, 245.50 feetto the point of beginning. PARCEL TWENTY-SIX: Beginning at a concrete monument set near the intersection of the bank of the San Francisquito Creek with the shore line of San Francisco Bay as said concrete monument is described in the Indenture made and entered into on March 25, 1911 by and between the Spring Valley Water Company, the party of the first part, and the Morgan Oyster Company, the party of the second part, which was recorded April 3, 1911 in Book 192 of Deeds at Page 584, records of San Mateo County, said concrete monument also being the point of beginning of the lands described in the Deed from Gustav Laumeister and wife, to City of Palo Alto, a municipal corporation, dated April 23, 1926 and recorded September 15, 1930 in Book 500 of Official Records of San Mateo County, at Page 89 (68341-B); thence from said point of beginning along the general Southeasterly, Southerly and Southwesterly boundary line of the lands described in said Deed, being the left bank of the San Francisquito Creek, as follows: South 26° 15’ West, 518.18 feet, South 65° 30’ West, 396 feet, North 63° 00’ West, 495 feet, North 50° 06’ East, 400 feet, North 28° 26’ East, 400 feet, North 49° 27’ West, 500 feet, South 88° 27’ West, 350 feet, South 78° 41’ West, 310.55 feet, South 63° 35’ West, 386.31 feet, South 52° 12’ West, 337 feet, and South 39° 56’ West, 205.96 feet; thence East, to the common boundary line between the County of San Mateo and the County of Santa Clara (which line is the center line of San Francisquito Creek before it was relocated); thence in a general Northeasterly direction along said common County boundary line as it winds and turns to its intersection with the South boundary line of Tide Land Survey No. 76-Lot D as described in the Book of Tide Land Surveys in San Mateo County at Page 152, records of San Mateo County, said intersection bears East, of the point of beginning; thence West, along said South line and along the South line of Tide Lands Survey No. 64 as described on Page 121 of said Book of Tide Lands Survey, to the point of beginning. APN: 008-05-005; and 008-06-001 Page 16 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 45 Packet Pg. 687 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM At the date hereof exceptions to coverage in addition to the Exceptions and Exclusions in said policy form would be as follows: 1.Taxes and assessments, general and special, for the fiscal year 2012 - 2013, a lien, but not yet due or payable. 2.Taxes and assessments, general and special, for the fiscal year 2011 - 2012, as follows: Assessor's Parcel No. Code No. 1st Installment 2nd Installment : : : : 008-05-005 006-001 $0.00 NO TAX DUE NO TAX DUE$0.00 3.Taxes and assessments, general and special, for the fiscal year 2011 - 2012, as follows: Assessor's Parcel No. Code No. 1st Installment 2nd Installment : : : : 008-06-001 006-001 $0.00 NO TAX DUE NO TAX DUE$0.00 4. 5. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Section 75, et seq., of the Revenue and Taxation Code of the State of California. Any adverse claim based upon the assertion that some portion of said land is tide or submerged land or has been created by artificial means or has accreted to such portion so created. 6. 7. Any adverse claim based upon the assertion that: (a) Some portion of said land is tide or submerged land, or has been created by artificial means or has accreted to such portion so created (b)Some portion of said land has been brought within the boundaries thereof by an avulsive movement of the Wilson, Charleston and Mayfield Slough or has been formed by accretion to any such portion. Any adverse claim that some portion of said land has not at any time been within the boundaries of the County of Santa Clara, State of California. Page 17 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 46 Packet Pg. 688 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM 8.(a) Any adverse claim based upon the assertion that said land or any part thereof is now or at any time has been included within a navigable river, slough or other navigable body of water. (b) Rights and easements for commerce, navigation and fishery. 9.Rights of the public, County and/or City, in and to that portion of said land lying within the lines of Embarcadero Road. 10.An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Granted To For Recorded : : : : Town of Palo Alto, et al Sewer line March 4, 1899 in Book 218 of Deeds, Page 122 Affects As described therein The present ownership of said easement and other matters affecting the interests thereto, if any, are not shown herein. 11.An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Granted To For Recorded Affects : : : : Jane L. Stanford, et al Sewer line June 8, 1899 in Book 220 of Deeds, Page 164 As described therein The present ownership of said easement and other matters affecting the interests thereto, if any, are not shown herein. 12.An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Granted To For Recorded : : : : Standard Electric Company of California Two lines of poles and wires for electricity, telephone and telegraph March 6, 1908 in Book 330 of Deeds, Page 119 As described thereinAffects Page 18 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 47 Packet Pg. 689 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM The present ownership of said easement and other matters affecting the interests thereto, if any, are not shown herein. 13.An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Instrument Reserved By For Recorded Affects : : : : : Easement E. G. Moody Wharf and storage ground and for ingress and egress October 6, 1908 in Book 335 of Deeds, Page 447 As described therein The present ownership of said easement and other matters affecting the interests thereto, if any, are not shown herein. 14.An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Granted To For Recorded Affects : : : : Town of Mayfield, a municipal corporation To construct and maintain tehreon a main outfall sewer December 23, 1909 in Book 349 of Deeds, Page 367 As described therein The present ownership of said easement and other matters affecting the interests thereto, if any, are not shown herein. 15.An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Granted To For Recorded Affects : : : : Town of Mayfield, a municipal corporation Outfall sewer December 23, 1909 in Book 352 of Deeds, Page 446 As described therein The present ownership of said easement and other matters affecting the interests thereto, if any, are not shown herein. Page 19 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 48 Packet Pg. 690 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM 16.An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Granted To For : : The Standard Electric Company The right of erecting, constructing, reconstrucing, replacing, repairing maintain, using for the transmisison of electricity two lines, of steel towers, wire suspended thereon Recorded Affects : : April 14, 1910 in Book 355 of Deeds, Page 579 As described and delineated therein The present ownership of said easement and other matters affecting the interests thereto, if any, are not shown herein. 17.An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Granted To For : : The Standard Electric Company of California Two (2) independent lines of poles, wires suspended thereon, and for telephone, telegraph purposes Recorded Affects : : December 7, 1910 in Book 362 of Deeds, Page 577 As described therein The present ownership of said easement and other matters affecting the interests thereto, if any, are not shown herein. 18.An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Granted To For Recorded : : : : Spring Valley Water Company Roadway to connect with Embarcadero Road December 20, 1920 in Book 525 of Deeds, Page 382 As described thereinAffects The present ownership of said easement and other matters affecting the interests thereto, if any, are not shown herein. Page 20 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 49 Packet Pg. 691 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM 19. 20. 21. An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Granted To For Recorded : : : : Spring Valley Water Company Roadway to connect with Embarcadero Road December 20, 1920 in Book 525 of Deeds, Page 383 As described thereinAffects The present ownership of said easement and other matters affecting the interests thereto, if any, are not shown herein. An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Granted To For Recorded Affects : : : : Spring Valley Water Company Roadway to connect with Embarcadero Road December 20, 1920 in Book 525 of Deeds, Page 397 As described therein The present ownership of said easement and other matters affecting the interests thereto, if any, are not shown herein. An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Granted To For : : Federal Telegraph Company Construct, maintain, operate, repair, remove achors of antenna and masts Recorded Affects : : March 22, 1921 in Book 528 of Deeds, Page 483 As described therein The present ownership of said easement and other matters affecting the interests thereto, if any, are not shown herein. Page 21 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 50 Packet Pg. 692 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM 22.An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Instrument Reserved By For : : : : Easement Peter Farber, a widower 20 foot right of way December 19, 1942 in Book 1040 of Official Records of San Mateo County, Page 114 Recorded Affects :As described therein The present ownership of said easement and other matters affecting the interests thereto, if any, are not shown herein. And re-recorded October 26, 1943 in Book 1086 of Official Records of San Mateo County, Page 302. And re-recorded October 16, 1943 in Book 1146 of Official Records of San Mateo County, Page 218. 23.Release and relinquishment of abutter’s or access rights to and from Bayshore Freeway, upon which premises abuts, as follows: Instrument To Recorded : : : Grant Deed (Corporation) State of California February 17, 1958 in Book 4008 of Official Records, Page 188 under Recorder's Serial Number 1438106 24.Matters as contained or referred to in an instrument, Entitled Executed By Dated : : : : Freeway Agreement State of California and the City of Palo Alto May 12, 1958 Recorded June 21, 1963 in Book 6074 of Official Records, Page 119 under Recorder's Serial Number 2426539 Note: Reference is made to said instrument for full particulars. Page 22 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 51 Packet Pg. 693 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM 25.Matters as contained or referred to in an instrument, Entitled :Ordinance No. 2252 - Ordinance of the Council of the City of Palo Alto Reserving for Park, Payground, Recreation or Conservation Purposes Certain Lands Pursuant to Article VIII of the Charter of the City of Palo Alto Executed By Recorded : : City of Palo Alto November 11, 1966 in Book 7243 of Official Records, Page 664 Note: Reference is made to said instrument for full particulars. 26.An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Instrument Granted To For : : : Easement and Agreement Santa Clara County Flood Control and Water District The right to construct, reconstruct, inspect, maintain and repair a channel and basin, protection works and appurtenant structures November 28, 1967 in Book 7952 of Official Records, Page 162 under Recorder's Serial Number 3332305 Recorded Affects : :As described therein The present ownership of said easement and other matters affecting the interests thereto, if any, are not shown herein. 27.An unrecorded lease upon the terms, covenants, and conditions contained or referred to therein, Lessor Lessee Disclosed by Dated : : : : : City of Palo Alto County of Santa Clara Abstract of Lease April 5, 1967 Recorded January 19, 1972 in Book 9672 of Official Records, Page 449 under Recorder's Serial Number 4177569 Return to Address : County of Santa Clara, Department of Public Works, Room 115, 20 North Hedding Street, San Jose, CA 95110 NOTE: The present ownership of said leasehold or leaseholds and other matters affecting the interest of the lessee or lessees are not shown herein. Page 23 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 52 Packet Pg. 694 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM 28.An unrecorded lease upon the terms, covenants, and conditions contained or referred to therein, Lessor Lessee Disclosed by : : : State of California County of Santa Clara, a political subdivision of the State of California State of California State Lands Commission No. 4598.9 Public Resources Code Series Recorded :January 19, 1972 in Book 9672 of Official Records, Page 453 under Recorder's Serial Number 4177570 Return to Address : County of Santa Clara, Department of Public Works, Room 115, 20 North Hedding Street, San Jose, CA 95110 NOTE: Modification/amendment of the terms of said lease, Executed By and Between : State of California, acting through the State Lands Commission, and the County of Santa Clara June 1, 2010 in Official Records under Recorder's Serial Number 20727937 Recorded : : Returned to Address State Lands Commission, Attn: Title Unit, 100 Howe Avenue, Suite 100-South, Sacramento, CA 95825-8202 NOTE: The present ownership of said leasehold or leaseholds and other matters affecting the interest of the lessee or lessees are not shown herein. 29.Lease upon the terms, covenants, and conditions contained therein, Lessor Lessee Term Dated Recorded : : : : : Nystrom Enterprises Victor Aviation Service, Inc., a California corporation 5 years July 16, 1979 July 25, 1979 in Book E667 of Official Records, Page 419 under Recorder's Serial Number 644932 Return to Address : Phillip Seymour DeCaro, a Law Corporation, 20 Ciervos Road, Portola Valley, California 94025 NOTE: The present ownership of said leasehold or leaseholds and other matters affecting the interest of the lessee or lessees are not shown herein. NOTE: Said lease contains provisions for renewal. Page 24 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 53 Packet Pg. 695 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM 30.An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Instrument Granted To For : : : : Grant of Easement City of Mountain View, a municipal corporation Storm drainage April 2, 1980 in Book F244 of Official Records, Page 8 under Recorder's Serial Number 6692985 As described therein Recorded Affects : The present ownership of said easement and other matters affecting the interests thereto, if any, are not shown herein. 31.Agreement for :and Grant of Easement for East Bay Corridor/Santa Clara County Bayfront Bikeway Executed By and Between : : City of Palo Alto, a municipal corporation State of California On the terms, covenants and conditions contained therein, Dated Recorded : : May 18, 1981 June 4, 1982 in Book G553 of Official Records, Page 450 under Recorder's Serial Number 7259118 Note: Reference is made to said instrument for full particulars. 32. 33. An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the above mentioned Agreement and Grant of Easement For Affects : : Bike and Recreational Uses As described therein Oil and Gas Lease for and upon the terms, covenants and conditions contained or referred to therein, Dated Lessor Lessee Recorded : : : : July 10, 1981 City of Palo Alto Getty Synthetic Fuels, Inc. March 15, 1982 in Book G651 of Official Records, Page 442 under Recorder's Serial Number 7301349 Returned to Address :2750 Signal Parkway, Post Office Box 1900, Long Beach, CA 90801 Page 25 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 54 Packet Pg. 696 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM NOTE: The present ownership of said leasehold or leaseholds and other matters affecting the interest of the lessee or lessees are not shown herein. NOTE: Said lease contains provisions for renewal. 34. 35. 36. Lease upon the terms, covenants, and conditions contained therein, Lessor Lessee Term : : : : County of Santa Clara F. & M. Aviation Center 30 years February 19, 1986 in Book J607 of Official Records, Page 1311 under Recorder's Serial Number 8694095 Recorded NOTE: The present ownership of said leasehold or leaseholds and other matters affecting the interest of the lessee or lessees are not shown herein. An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Granted To For : : County of Santa Clara, a political subdivision Right to fly aircraft into, within and out of the air space above and right to mark and light, cause or require to be marked or lighted, as obstructions to air navigation, any and all buildings, structures or other improvements and trees Recorded Affects : : November 22, 1996 in Official Records of San Mateo County under Recorder's Serial Number 96-145665 As described therein An easement affecting that portion of said land and for the purposes stated herein and incidental purposes as provided in the following Instrument Granted To For : : : Grant of Easement Santa Clara Valley Water District, a public entity Constructing, reconstructing, inspecting, maintaining and repairing the matadero Creek overflow flood control channel March 25, 2004 in Official Records under Recorder's Serial Number 17681439 Recorded Affects : :As described and delineated therein Page 26 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 55 Packet Pg. 697 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM 37.Covenants, Conditions and Restrictions, but omitting any covenants or restrictions if any, based upon race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that said covenant (a) is exempt under Title 42, Section 3607 of the United States Code or (b) relates to handicap but does not discriminate against handicapped persons, as provided in an instrument. Entitled Executed by : : Notice of Conditions, Covenants and Restrictions City of Palo Alto, a chartered municipal corporation, and San Francisco Bay Conservation and Development commission March 19, 2009Dated Recorded : :June 26, 2009 in Official Records under Recorder's Serial Number 20316463 NOTE: "If this document contains any restriction based on race, color, religion, sex, sexual orientation, familial status, marital status, disability, national origin, source of income as defined in subdivision (p) of section 12955, or ancestry, that restriction violates state and federal fair housing laws and is void, and may be removed pursuant to Section 12956.2 of the Government Code. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status." 38.Matters as contained or referred to in an instrument, Entitled : : Agreement and Declaration of Covenants and Restrictions for Historic Preservation and Certification of Development Rights Environmental Volunteers, a California non-profit corporation, and City of Palo Alto, a California chartered city municipal corporation August 31, 2010 Executed By Dated Recorded : :December 22, 2010 in Official Records under Recorder's Serial Number 21020437 Returned to Address :250 Hamilton Avenue, Palo Alto, CA 94301 Note: Reference is made to said instrument for full particulars. Page 27 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 56 Packet Pg. 698 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM 39.Matters as contained or referred to in an instrument, Entitled Executed By : : City of Palo Alto Encroachment Permit City of Palo Alto, California, a chartered municipal corporation, and Santa Clara Valley Transportation Authority March 24, 2011 May 4, 2011 in Official Records under Recorder's Serial Number 21166450 Dated Recorded : : Returned to Address :250 Hamilton Avenue, Post Office Box 10250, Palo Alto, CA 94301 Note: Reference is made to said instrument for full particulars. 40. 41. The requirement that this Company be provided with an opportunity to inspect the land (the Company reserves the right to make additional exceptions and/or requirements upon completion of its inspection). Rights and claims of parties in possession. Any unrecorded and subsisting leases.42. 43.The requirement that the Company be provided with a copy of the "rent roll" and “tenant estoppel certificates” for its review. The Company may have different and/or additional requirements after its review. 44.The requirement that satisfactory evidence be furnished to this Company of compliance with applicable statutes, ordinances and charters governing the ownership and disposition of the herein described land. -------------------- Informational Notes ------------------- A.The applicable rate(s) for the policy(s) being offered by this report or commitment appears to be section(s) 1.1. Page 28 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 57 Packet Pg. 699 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM B.The above numbered report (including any supplements or amendments thereto) is hereby modified and/or supplemented to reflect the following additional items relating to the issuance of an American Land Title Association loan form policy: NONE NOTE: Our investigation has been completed and there is located on said land a commercial building known as 1901, 1903 and 1925 Embarcadero Road, Palo Alto, CA 94301. The ALTA loan policy, when issued, will contain the CLTA 100 Endorsement and 116 series Endorsement. Unless shown elsewhere in the body of this report, there appear of record no transfers or agreements to transfer the land described herein within the last three years prior to the date hereof, except as follows: NONE C.NOTE: The last recorded transfer or agreement to transfer the land described herein is as follows: Instrument Entitled By/From To Dated Recorded : : : : : Indenture Peter Farber and Laura E. Faber, his wife City of Palo Alto, a municipal corporation July 19, 1926 August 12, 1926 in Book 246 of Official Records of San Mateo County, Page 168 Indenture executed by Gustav Laumeister and Mabel S. Laumeister to City of Palo Alto, a municipal corporation recorded September 15, 1930 in Book 500 of Official Records of San Mateo County, Page 89. Indenture executed by Alfred Seale and Mabel S. Laumeister to City of Palo Alto recorded January 14, 1921 in Book 531 of Official Records, Page 144. Indenture executed by Gustav Laumeister and Mabel S. Laumeister to City of Palo Alto recorded January 14, 1921 in Book 532 of Official Records, Page 59. Grant Deed executed by Grae Ross Seale to City of Palo Alto recorded July 11, 1933 in Book 658 of Official Records, Page 23. Page 29 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 58 Packet Pg. 700 of 911 OLD REP UBLIC TITLE COMP ANY ORDER NO. 1117011970-JM Indenture executed by The Morgan Oyster Company, a corporation to City of Palo Alto recorded October 18, 1934 in Book 704 of Official Records, Page 445. Grant Deed executed by Margaret Nicolay, a widow, and Gertrude Nicolay, a single woman to City of Palo Alto, a municipal corporation recorded August 17, 1939 in Book 856 of Official Records, Page 203. Deed executed by Leslie Salt Co., a Delaware corporation to City of Palo Alto, a municipal corporation recorded March 8, 1951 in Book 1951 of Official Records, Page 216. Quitclaim Deed executed by Palo Alto Yacht Club, a non-profit corporation to City of Palo Alto, a municipal corporation recorded January 2, 1963 in Book 5847 of Official Records, Page 511 under Recorder's Serial Number 2320050. O.N. KW/dmu If you anticipate having funds wired to Old Republic Title Company, our wiring information is as follows: Union Bank of California, 1980 Saturn, Monterey Park CA 91755, credit to the account of: Old Republic Title Company Account Number 9100096193, ABA Number 122000496. When instructing the financial institution to wire funds, it is very important that you reference Old Republic Title’s Escrow Number 1117011970. Note: Automated Clearing House (ACH) transfers are not accepted in lieu of wired funds, except when received from a governmental agency. Funds deposited directly into an account of Old Republic Title Company at a Union Bank of California branch are subject to verification and may cause a delay in closing. Should you have any questions in this regard, please contact your Escrow or Title Officer immediately. Page 30 of 30 Pages ORT 3158-B Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 59 Packet Pg. 701 of 911 Exhibit A CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY - 1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1.(a)Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or {iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.- (b)Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2.Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3.Defects, liens, encumbrances, adverse claims or other matters: (a)whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b)not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy;. (c) (d) (e) resulting in no loss or damage to the insured claimant; attaching or created subsequent to Date of Policy; or resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4.Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land Is situated. 5. 6. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. 2. Taxes or assessments Which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. Any facts, rights, interests, or claims Which are not shown by the public records but which could be ascertained by an inspection of the land which may be asserted by persons in possession thereof, 3. 4. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. 6. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. Any lien or right to a lien for services, labor or material not shown by the public records. Page 1 of 1 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 60 Packet Pg. 702 of 911 OLD REPUBLIC TITLE COMPANY Privacy Policy Notice PURPOSE OF THIS NOTICE Title V of the Gramm-Leach-Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you with a nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of OLD REPUBLIC TITLE COMPANY We may collect nonpublic personal information about you from the following sources: Information we receive from you such as on applications or other forms. Information about your transactions we secure from our files, or from [our affiliates or] others. Information we receive from a consumer reporting agency. Information that we receive from others involved in your transaction, such as the real estate agent or lender. Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliated third parties as permitted by law. We also may disclose this information about our customers or former customers to the following types of nonaffiliated companies that perform marketing services on our behalf or with whom we have joint marketing agreements: Financial service providers such as companies engaged in banking, consumer finance, securities and insurance. Non-financial companies such as envelope stuffers and other fulfillment service providers. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. ORT 287-C 5/07/01 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 61 Packet Pg. 703 of 911 Disclosure to Consumer of Available Discounts Section 2355.3 in Title 10 of the California Code of Regulation necessitates that Old Republic Title Company provide a disclosure of each discount available under the rates that it, or its underwriter Old Republic National Title Insurance Company, have filed with the California Department of Insurance that are applicable to transactions involving property improved with a one to four family residential dwelling. You may be entitled to a discount under Old Republic Title Company’s escrow charges if you are an employee or retired employee of Old Republic Title Company including its subsidiary or affiliated companies or you are a member in the California Public Employees Retirement System “CalPERS” or the California State Teachers Retirement System “CalSTRS” and you are selling or purchasing your principal residence. If you are an employee or retired employee of Old Republic National Title Insurance Company, or it’s subsidiary or affiliated companies, you may be entitled to a discounted title policy premium. Please ask your escrow or title officer for the terms and conditions that apply to these discounts. A complete copy of the Schedule of Escrow Fees and Service Fees for Old Republic Title Company and the Schedule of Fees and Charges for Old Republic National Title Insurance Company are available for your inspection at any Old Republic Title Company office. Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 62 Packet Pg. 704 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 63 Packet Pg. 705 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 64 Packet Pg. 706 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 65 Packet Pg. 707 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 66 Packet Pg. 708 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 67 Packet Pg. 709 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 68 Packet Pg. 710 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 69 Packet Pg. 711 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 70 Packet Pg. 712 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 71 Packet Pg. 713 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 72 Packet Pg. 714 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 73 Packet Pg. 715 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 74 Packet Pg. 716 of 911 Criterion 1. Need for Outdoor Environmental Education 1A. What are the outdoor education needs that this project will address? This project proposes to interpret the marshlands of the Palo Alto Baylands Nature Preserve (Baylands) through the installation of interpretive panels and interactive exhibits along two ½ miles of multi-use trails of the Baylands, and on the adjoining ¼ mile long boardwalk of the Lucy Evans Baylands Nature Interpretive Center (LENC), an interpretive public facility built in 1969 to interpret the Baylands. This open space preserve, with beautiful vistas and teeming with marsh life, is unique because it is the largest undisturbed tract of salt marsh in the San Francisco Bay Area. The educational goals of the Bridging Communities By Caring for a Salt Marsh Project (referred as “Bridging Communities Project” hereafter), are to help visitors develop an appreciation for and an understanding of the Baylands ecosystem, and to inspire them to take action to conserve the Baylands. Research shows1 that people need to be emotionally and intellectually connected to a natural resource before they are compelled to take actions to protect that resource. Getting people to care about a natural resource like a salt marsh, however, can be challenging because such a resource does not instantly resonate with people in the same way as an iconic resource such as Yosemite. Thus, there is a need to develop creative education strategies to connect people emotionally and intellectually to underappreciated resources like a salt marsh. The existing nature centers in the Baylands (the LENC and the Cooley Landing Educational Center) partially address our educational goals by serving a specific type of visitor to the Baylands—those whose primary goal is to educate themselves about the salt marsh. What’s needed to supplement these centers is a way to educate people who may not 1 Ardoin, N. M. (2006). Toward an Interdisciplinary Understanding of Place: Lessons for Environmental Education. Canadian Journal of Environmental Education 11: 112–126. Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 75 Packet Pg. 717 of 911 choose on their own volition to visit these nature centers. Some visitors literally need to be situated in the salt marsh and be prompted to use all their senses to develop an appreciation for salt marsh habitats. By building outdoor interpretive experiences in the Baylands to complement the indoor interpretation of the Baylands, we provide multiple points of entry for the very broad range of visitors that visit the Baylands for educational or outdoor recreational reasons. To address the educational goals of the Bridging Communities Project, our educational strategy focuses on helping visitors to: 1) Make emotional and intellectual connections about the natural history and management of the Baylands through multi-sensory exhibits: Given the broad range of vistors that make 600,000 to 700,000 annual visits to the Baylands, we recognize the need for an interpretive strategy that can communicate key messages to nearly anyone. We will do this by developing multi-sensory interpretive exhibits to help visitors understand what they are seeing, smelling, hearing, and touching, as they experience the Baylands. We will rely on modern 2-D and 3-D designs, for example, using colorful illustrations or presenting three common salt marsh plants in bas relief, to make information on the panels engaging and accessible to diverse user groups. 2) Support ongoing efforts to protect the Baylands through exhibits and educational programs: By engaging visitors emotionally and intellectually, the Bridging Communities Project seeks to persuade individuals to support the conservation efforts of local agencies, such as Save the Bay, and to take personal actions to reduce their ecological footprint. These exhibits will also be used as tools by Baylands educational staff from LENC and the Cooley Center during field trips and programs for schools and families. In addition to helping schools meet State Content Standards for science, these programs will help visitors make Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 76 Packet Pg. 718 of 911 connections between the messages on these outdoor interpretive exhibits to ways that visitors can support conservation efforts of the Baylands. The signage will identify conservation efforts that people can engage in, such as not littering, reducing pollutants, and participating in native plant restoration projects. 1B. Why is this project needed at this project site? With its abundant wildlife, stunning views of the Bay Area, and 15 miles of multi-use trails, the Baylands is popular with hikers, runners, bicyclists, commuters, birders, and school groups. Many consider the Baylands as one of the best bird watching areas on the west coast with 31 bird species making the Baylands their year-round home. The Baylands complex includes a small airport, yacht harbor, golf course, duck pond and picnic area, athletic center, sailing center, and the LENC and the Cooley Center nature centers. Given that just a small fraction of California’s salt marshes still remain, it is an excellent example of how sensitive marshlands can be smartly managed within an array of human developments. The Baylands is an important site for an outdoor education project for the following reasons: Geographic location: Situated between Palo Alto and East Palo Alto, the Baylands offers easy access for thousands of urban residents who are seeking a tranquil spot in nature. This is especially true for residents and workers on the eastern edge of San Francisco Peninsula for whom access to outdoor recreational sites is not easy. Proximity to large numbers of diverse target audiences: This project will serve residents in Silicon Valley and, in particular, the community of adjacent East Palo Alto (EPA). EPA is comprised of predominantly low-income families. In the 2010 census, the median income for a family was $42,342. Over 90% of EPA’s residents are Latino, African-American, and/or Pacific Islander, and many are new immigrants to the country. The educational strategy of Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 77 Packet Pg. 719 of 911 this project addresses the needs of this underserved urban community and engages them in a meaningful way with this beautiful backyard natural resource. Fulfills broader community goals: With the completion of the new Cooley Center in 2016, and the ongoing rehabilitation of LENC and its adajacent ¼ mile boardwalk that extends into the salt marsh, our proposal to interpret the trails between the two centers will enhance the impact of the two centers, thus realizing the City of Palo Alto’s 2017 Natural Open Space & Recreation Master Plan to enhance the educational experience for Baylands visitors. Criterion 2. How the project will facilitate a wide variety of learning opportunities. 2A. Communicate the significance and value of the outdoor environmental resource(s). Salt marshes are an often overlooked natural resource. A wide range of fish, invertebrates, and mammals, and birds including the endangered Ridgway’s rail, spend significant portions of their life cycle in salt marshes. Salt marsh habitat is rare in California as this type of environment requires a unique ecology, specifically coastal areas where fresh and salt water mix. The vast majority of California’s population lives on the State’s coastlines, which places enormous environmental pressures on sensitive coastal habitats. This is especially true with salt marshes in urban areas like the Baylands. By situating our interpretive exhibits literally in front of visitors as they pass through the areas of the salt marsh that we are interpreting, we have a better chance of helping people understand the significance of this natural resource. Our interpretive strategy will focus attention on what visitors can easily observe in the salt marsh such as the changing tide or bird tracks in the wet mud, then redirect attention to what is less obvious such as foraging bat rays or bivalves that one can hear or smell but not see at low or high tides. 2B. Present the resource(s) within the context of their local, as well as larger, ecosystems. Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 78 Packet Pg. 720 of 911 Salt marshes support plants and animals that comprise a complex food web for marine and terrestrial life. For example, juvenile fish that begin life in salt marshes are preyed upon by other fish and birds. The salt marsh provides not only habitat to many resident species, but serves as a critical stop-over point for many birds as they migrate through the Bay Area. Salt marshes also provide valuable ecological services. They filter pollutants from coastal waters and buffer adjacent lands from wind and waves. During storm surges, salt marshes slow and disperse water that would otherwise flood communities along the estuarine coast. 2C. Actively engage the visitor’s senses: auditory, visual, tactile and kinesthetic. Our strategy focuses visitor attention on what they see, hear, feel, and smell all around them. The project’s signs will be in English and Spanish with tactile experiences for people who are visually impaired (e.g., touchable raised relief maps of the surrounding area, with Braille). Hands-on exhibits will provide interactive experiences, such as a spinning sediment wheel developed by the Exploratorium to show how tides and currents alter sediment levels in the water column. Signage will prompt visitors to listen to sounds and smells of the marsh. 2D. Illustrate challenges to the resources and corresponding solutions Over half the original salt marshes in the United States have vanished due to human development. Signage will indicate how direct destruction of California salt marshes has been eliminated by law, but threats to marshes are ever-more present due to high population concentrations in state coastal regions. Salt marsh visitors and guided program participants will come to understand how environmental pollutants from non-point sources and introduced species can negatively impact native species. More positive messages will indicate how bridges, electrical transmission towers, and waste-water outflows exist in the salt marsh with relatively few impacts on biota, and how the citizens and cities work with local agencies to Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 79 Packet Pg. 721 of 911 monitor biological impacts on the marsh. Solutions include minimizing runoff with porous pavement, and installing plant buffer strips and water detention basins to contain runoff. 2E. Reveal solutions that inspire visitors to take action to protect the resource(s). In addition to helping people understand the ecology of the salt marsh, one of the other key messages of the trail signage will be that every Bay Area resident can take simple steps to protect the marsh by not littering and reducing nonpoint source pollutants. They can use fertilizer and lawn care products sparingly. Litter can enter storm drains that lead to the Baylands and harm wildlife in the bay. Cleaning up after pets, especially in the Baylands complex, is especially important as pet waste enters the marsh waters and pollutes. By driving less, residents can reduce air pollutants that end up in coastal waters. The exhibits will also be used by outdoor educators for school and family tours. Criterion 3. Who will be served: Population Groups and Applicant Experience. 3A. Describe how this project will serve the needs of multiple population groups This project serves Silicon Valley, which includes San Mateo and Santa Clara counties, as well as southern portions of the East Bay in Alameda County. Four million people live here, and the median annual income per household is $102,000. Many of the 600,000 – 700,000 annual visits to the Baylands are made by adult caucasians of substantial economic means. Many adult audiences use the trails for hiking, running, cycling, or walking on lunch breaks or after work. Given their use of the trails for recreational purposes, the intrerpretive strategy requires improvement upon outdated types of interpretive signage seen in other parks, which is often pedantic and or does not reference phenomena in front of the viewer’s eye. The multi-sensory exhibits will hook the attention of visitors through modern, human- centered design and will focus on what can be immediately experienced. Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 80 Packet Pg. 722 of 911 The Baylands are adjacent to East Palo Alto (EPA), home to 28,000 residents. Ninty percent of EPA is non-white, with 65% being Latino, and 15% being African-American or Pacific Islander.Many are immigrants. The median household income is ~$48,000. Eight- seven percent of EPA public school students receive free or reduced lunches, a number that is significantly higher than the state average of 58.5%. Sixty-seven percent of EPA students are English Language Learners, and this is higher than the state average of 21.6%. Through the Bridging Communities Project, the City of Palo Alto seeks to engage these underserved audiences. The Cooley Center hosted a 2016 Earth Day celebration at the Baylands and attracted 1,000 people, including many from underserved poulations, by providing science activities, music, and art, as well as bilingual tours along the Baylands trails. The Baylands educators will host more such events to attract diverse family audiences from EPA and will rely on the proposed interpretive exhibits as educational tools during weekend family tours. Elementary school children are another key audience for educators who use Baylands trails for the 3,000 students that visit annually. Teachers will use the highly tactile aspects of the proposed outdoor exhibits, the colorful illustrations and artworks, as well as interactive exhibits (e.g., sediment mixer), as tools to enhance discussions with children. Furthermore, the trail-side exhibits will provide a way for children to share what they learned on their school tours when they return to the Baylands as free-choice visitors. Working with elementary schools is an effective strategy to engage East Palo Alto residents because of the many young families that live there. Seniors are also an important audience as Palo Alto senior care facilities bus their senior residents to the Baylands. Photography and birdwatching clubs that use the Baylands largely cater to local seniors as do weekday lifelong Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 81 Packet Pg. 723 of 911 learning classes offered by neighboring city recreational departments to explore local natural habitats. To accommodate seniors, signage will include large print text and images. 3B. Describe any previous strategies for attracting and serving identified populations Local free-choice adult visitors have been the primary audience of the Baylands. Trails and existing signage have been the primary interpretive strategies to engage these visitors. More recently, EPA and Palo Alto have held events targeting families through activities, art, food, and music events. These events, highlighted by Earth Day and Moonlight Run, have attracted more than 5,000 people between 2013 and 2016. A grant-funded project run by the Palo Alto Art Center and the Palo Alto Junior Museum and Zoo hosted three events that engaged scientists, artists, and families in place-based science exploration and art making. For the past three years, the City of Palo Alto has provided free field trips to every East Palo Alto and East Menlo Park third grader to Cooley Center or the LENC for a 2-hour hands-on educational program about salt marsh ecology. With the help of the Zoo’s Friends organization, an additional $50,000 is spent annually by the Museum to provide free science programming in EPA schools. Criterion 4. Getting There and Project Availability 4A. Describe all transportation methods that are available to access the project site. The trail is located within one mile of half the population of East Palo Alto, and within three miles of most residents in EPA. The site can be accessed by bike for all residents of EPA and Palo Alto. Most visitors access the Baylands via Highway 101, and there is ample parking at five Baylands parking lots. Free shuttles to the Baylands are provided by the City of Palo Alto and Stanford, and the area is serviced by Santa Clara Valley Transit district buses as well as SamTrans public buses throughout the San Francisco Peninsula. All public buses require riders to walk a short distance from the bus stop to the Baylands trails. Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 82 Packet Pg. 724 of 911 4B. Hours of public operation: The Baylands Preserve is open from 8 AM to 7:30 PM in summer and from 8 AM to sunset during winter hours. Consequently, the Baylands Interpretation Project will be publicly accessible ~84 hours a week throughout the year. Criterion 5: Organizational Capacity 5A. Capital outlay projects not administered by OGALS completed by the applicant The City of Palo Alto project team for this project has not managed any project by OGALS, but has managed many other similar projects, including the following: Baylands Nature Center Improvement Project, a capital improvement project by City of Palo Alto: The scope of this project focused on the design and rehabilitation of the Lucy Evans Nature Center. The work entailed replacing the building’s siding, deck, and railing; renovating restrooms to meet ADA standards; and updating the electrical and lighting systems. The total cost was $582,485 and funds were provided by City of Palo Alto. The two-year project, completed in 2016, was finished on time and on budget. The project had to conform to avoid disturbing sensitive habitat and had to be carried out on a tight construction schedule. Bobcat Ridge exhibit at the City of Palo Alto Junior Museum and Zoo: This project entailed design and construction of a 1,000 square foot live bobcat exhibit and care facility. The total cost was $609,000, with $500,000 from private sources, and $109,000 from the City of Palo Alto. This two-year project was completed in 2010, on time and within the planned budget. 5B. Provide specific examples demonstrating experience and accomplishments with incorporating learning and discovery opportunities in a project. The Bobcat Ridge exhibit described above entailed developing interactive exhibits and signage that targeted children. This project included many elements that are proposed as part of the Community Bridges Project, including tactile and interactive experiences to engage children. Exhibit evaluation was used to meet proposed learning objectives. Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 83 Packet Pg. 725 of 911 Criterion 6: Long Term Programming, Operation and Maintenance 6A. Describe applicant experience in operating this type of project. The Community Bridges Project will be managed by administrators, educators, exhibit developers, maintenance, and security personnel staff associated with the Cooley Center and LENC. Education tours that use the proposed exhibits will require cooperation between educators, administrators, and exhibit developers. The City of Palo Alto maintains trails with interpretive signage, including those associated with this project. On average, the maintenance staff spend three hours per year per sign, keeping them clean, removing graffiti, and taking care of repairs. 6B, C, D. What funding sources will be used to maintain the project for the 20 or 30 year term? Additional partners who will contribute to long-term stability of project? Positions responsible for programming, operation, and maintenance? The City of Palo Alto allocates $200,000 annually to operate the school and family programs that will utilize the proposed trail signage. Much of this allocation is used to support educator salaries. Palo Alto supports the salaries of rangers and maintenance staff charged with safety and maintenance of the city’s open spaces, including the Baylands. The Friends of Palo Alto Parks actively fundraises for this project. The following City of Palo Alto staff would share responsibility for this project’s programs, operations, and maintenance: 1) Education Director, Arts and Science Division, Programming role, 5% of time devoted to this project; 2) Senior Educator, LENC, Programming role; 20% of time to this project; 3) Instructors, LENC, Programming role, 50% of time to this project and Operations role at 5% of time to this project; 4) Sr. Manager, Arts and Science Division, Operations role, 5% of time to this project; and 5) Open Space Ranger, Maintenance role, 5% of time to this project. Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 84 Packet Pg. 726 of 911 Item 39 Attachment A- CA Dept Parks and Rec Deed Restriction Item 39: Staff Report Pg. 85 Packet Pg. 727 of 911 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: June 19, 2023 Report #:2306-1616 TITLE Approval of Contract with Downtown Streets Team, Inc. (C23188369) for a Total Not-to-Exceed Amount of $168,340 for Fiscal Year 2024 for Workforce Development Services: Environmental Assessment: Exempt in Accordance with CEQA Guidelines Section 15061(b)(3). RECOMMENDATION Staff recommends the City Council authorize the City Manager or their designee to execute Contract C23188369 (Attachment A) with Downtown Streets Team, Inc. to provide Workforce Development Services for a term of one year ending June 30, 2024 for a total amount not to exceed amount of $168,340. BACKGROUND On June 20, 2022, City Council approved allocating $160,477 from the General Fund for workforce development services to be provided by Downtown Streets Team, Inc. (DST). Historically, DST has been funded through the Department of Housing and Urban Development’s Community Development Block Grant (CDBG) program. During Fiscal Year 2022, staff was notified that DST no longer qualified as a community-based development organization due to a change in its board membership and, as a result, was no longer eligible to receive CDBG funding in FY 2023. Due to this change of status and to provide continued support to the program in FY 2023, staff recommended and City Council approved funding DST from the General Fund. Staff reported at the time that it would seek opportunities to potentially resolve the issue by applying for an exemption as provided for by the federal department for Housing and Urban Development. This research took several months and recently concluded with a finding that the exemption process was not likely to result in a favorable outcome, and therefore will not be pursued. More background information is available from the June 20, 2022 staff report. Under Palo Alto Municipal Code (PAMC) 2.30.360(b)(2), the City Manager has approved an exemption from competitive solicitation due to the impracticality to solicit for these services. Item 40 Item 40 Staff Report Item 40: Staff Report Pg. 1 Packet Pg. 728 of 911 During the next fiscal year, the City Manager’s Office in collaboration with the Community Service Department will evaluate and recommend a path forward to support these services. The actions in this report will result in continued support for the DST Workforce Development program in FY 2024. ANALYSIS The DST program provides homeless and/or extremely low-income individuals with job readiness training and employment opportunities through job search skill instruction, supportive services, and direct employment placements with partnering companies. The objective of this program is to help previously homeless individuals rebuild their self-esteem and confidence through the dignity of work. The primary goal of the program is to transition people from a state of non- worker readiness and unemployment into regular paid employment. The program provides counseling and training to assist participants develop a plan for self-sustainability by procuring housing or shelter, address physical/mental issues, receive transportation assistance, or providing other services. Training primarily focuses on building successful work habits, job readiness skills, resume writing, and employment search skills. DST will additionally recruit and work with a network of local businesses to identify and increase the number of job opportunities suitable for the targeted population from the private sector. This program differs from the outreach worker program which is also on the City Council agenda for adoption on June 19, 2023. The outreach worker program, proposed to be provided by LifeMoves, is intended to have a consistent presence to locate and engage with unhoused residents throughout Palo Alto. Both programs are part of the City’s ecosystem to support homeless and or extremely low-income individuals in the Palo Alto community. FISCAL/RESOURCE IMPACT Funding for this contract is included in the FY 2024 Operating Budget of the Planning and Development Services Department. No additional resources required at this time. ENVIRONMENTAL REVIEW The recommended action is CEQA exempt under the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility of a significant effect on the environment. ATTACHMENTS Attachment A: Downtown Streets Team Contract, C23188369 APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 40 Item 40 Staff Report Item 40: Staff Report Pg. 2 Packet Pg. 729 of 911 Professional Services Rev. Dec.15, 2020 Page 1 of 20 CITY OF PALO ALTO CONTRACT NO. C23188369 AGREEMENT FOR PROFESSIONAL SERVICES BETWEEN THE CITY OF PALO ALTO AND DOWNTOWN STREETS, INC. aka DOWNTOWN STREETS TEAM This Agreement for Professional Services (this “Agreement”) is entered into as of the 24th day of May, 2023 (the “Effective Date”), by and between the CITY OF PALO ALTO, a California chartered municipal corporation (“CITY”), and Downtown Streets, Inc., a a corporation duly organized and existing under the Nonprofit Corporation Law of the State of California, located at 1671 THE ALAMEDA, SUITE 301, SAN JOSE, CA 95126 (“CONSULTANT”). The following recitals are a substantive portion of this Agreement and are fully incorporated herein by this reference: RECITALS A.CITY intends to provide grants to organizations who deliver direct services for Homeless Outreach (the “Project”) and desires to engage a consultant to provide homeless and/or extremely low‐income individuals with job readiness training and employment opportunities through job search skill instruction, supportive services, and direct employment placements with partnering companies. in connection with the Project (the “Services”, as detailed more fully in Exhibit A). B.CONSULTANT represents that it, its employees and subconsultants, if any, possess the necessary professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C.CITY, in reliance on these representations, desires to engage CONSULTANT to provide the Services as more fully described in Exhibit A, entitled “SCOPE OF SERVICES”. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, in this Agreement, the parties agree as follows: SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit A in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement shall be from the date of its full execution through June 30, 2024 unless terminated earlier pursuant to Section 19 (Termination) of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 3 Packet Pg. 730 of 911 Professional Services Rev. Dec.15, 2020 Page 2 of 20 of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit B, entitled “SCHEDULE OF PERFORMANCE”. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY’s agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services shall be based on the compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable expenses specified therein, and the maximum total compensation shall not exceed One Hundred Sixty- Eight Thousand, Three Hundred Forty Dollars ($168,340.00). The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.” Any work performed or expenses incurred for which payment would result in a total exceeding the maximum compensation set forth in this Section 4 shall be at no cost to the CITY. SECTION 5. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the Services performed and the applicable charges (including, if applicable, an identification of personnel who performed the Services, hours worked, hourly rates, and reimbursable expenses), based upon Exhibit C or, as applicable, CONSULTANT’s schedule of rates set forth in Exhibit C-1. If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT’s invoices shall be subject to verification by CITY. CONSULTANT shall send all invoices to CITY’s Project Manager at the address specified in Section 13 (Project Management) below. CITY will generally process and pay invoices within thirty (30) days of receipt of an acceptable invoice. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. All Services shall be performed by CONSULTANT or under CONSULTANT’s supervision. CONSULTANT represents that it, its employees and subcontractors, if any, possess the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subcontractors, if any, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All Services to be furnished by CONSULTANT under this Agreement shall meet the professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itself informed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement, as amended from time to time. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT is solely responsible for costs, DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 4 Packet Pg. 731 of 911 Professional Services Rev. Dec.15, 2020 Page 3 of 20 including, but not limited to, increases in the cost of Services, arising from or caused by CONSULTANT’s errors and omissions, including, but not limited to, the costs of corrections such errors and omissions, any change order markup costs, or costs arising from delay caused by the errors and omissions or unreasonable delay in correcting the errors and omissions. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittal. If the total estimated construction cost at any submittal exceeds the CITY’s stated construction budget by ten percent (10%) or more, CONSULTANT shall make recommendations to CITY for aligning the Project design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. CONSULTANT acknowledges and agrees that CONSULTANT and any agent or employee of CONSULTANT will act as and shall be deemed at all times to be an independent contractor and shall be wholly responsible for the manner in which CONSULTANT performs the Services requested by CITY under this Agreement. CONSULTANT and any agent or employee of CONSULTANT will not have employee status with CITY, nor be entitled to participate in any plans, arrangements, or distributions by CITY pertaining to or in connection with any retirement, health or other benefits that CITY may offer its employees. CONSULTANT will be responsible for all obligations and payments, whether imposed by federal, state or local law, including, but not limited to, FICA, income tax withholdings, workers’ compensation, unemployment compensation, insurance, and other similar responsibilities related to CONSULTANT’s performance of the Services, or any agent or employee of CONSULTANT providing same. Nothing in this Agreement shall be construed as creating an employment or agency relationship between CITY and CONSULTANT or any agent or employee of CONSULTANT. Any terms in this Agreement referring to direction from CITY shall be construed as providing for direction as to policy and the result of CONSULTANT’s provision of the Services only, and not as to the means by which such a result is obtained. SECTION 11. ASSIGNMENT. The parties agree that the expertise and experience of CONSULTANT are material considerations for this Agreement. CONSULTANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSULTANT’s obligations hereunder without the prior written approval of the City Manager. Any purported assignment made without the prior written approval of the City Manager will be void and without effect. Subject to the foregoing, the covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators and assignees of the parties. SECTION 12. SUBCONTRACTING. Option A: No Subcontractor: CONSULTANT shall not subcontract any portion of the Services to be performed under this Agreement without the prior written authorization of the City Manager or designee. In the event CONSULTANT does subcontract any portion of the work to be performed under this Agreement, CONSULTANT shall be fully responsible for all acts and omissions of subcontractors. SECTION 13. PROJECT MANAGEMENT. CONSULTANT will assign Chris Richardson as DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 5 Packet Pg. 732 of 911 Professional Services Rev. Dec.15, 2020 Page 4 of 20 the CONSULTANT’s Project Manager to have supervisory responsibility for the performance, progress, and execution of the Services and represent CONSULTANT during the day-to-day performance of the Services. If circumstances cause the substitution of the CONSULTANT’s Project Manager or any other of CONSULTANT’s key personnel for any reason, the appointment of a substitute Project Manager and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY’s Project Manager. CONSULTANT, at CITY’s request, shall promptly remove CONSULTANT personnel who CITY finds do not perform the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Services or a threat to the safety of persons or property. CITY’s Project Manager is Khashayar Alaee, Planning and Development Department, Long Term Planning Division, 250 Hamilton Avenue, Palo Alto, CA, zipcode: 94301, Telephone: (650) 329- 2230. CITY’s Project Manager will be CONSULTANT’s point of contact with respect to performance, progress and execution of the Services. CITY may designate an alternate Project Manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. All work product, including without limitation, all writings, drawings, studies, sketches, photographs, plans, reports, specifications, computations, models, recordings, data, documents, and other materials and copyright interests developed under this Agreement, in any form or media, shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULTANT agrees that all copyrights which arise from creation of the work product pursuant to this Agreement are vested in CITY, and CONSULTANT hereby waives and relinquishes all claims to copyright or other intellectual property rights in favor of CITY. Neither CONSULTANT nor its subcontractors, if any, shall make any of such work product available to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the Scope of Services. SECTION 15. AUDITS. CONSULTANT agrees to permit CITY and its authorized representatives to audit, at any reasonable time during the term of this Agreement and for four (4) years from the date of final payment, CONSULTANT’s records pertaining to matters covered by this Agreement, including without limitation records demonstrating compliance with the requirements of Section 10 (Independent Contractor). CONSULTANT further agrees to maintain and retain accurate books and records in accordance with generally accepted accounting principles for at least four (4) years after the expiration or earlier termination of this Agreement or the completion of any audit hereunder, whichever is later. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an “Indemnified Party”) from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorney’s fees, experts fees, court costs and disbursements (“Claims”) resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 6 Packet Pg. 733 of 911 Professional Services Rev. Dec.15, 2020 Page 5 of 20 Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from a Claim arising from the active negligence or willful misconduct of an Indemnified Party that is not contributed to by any act of, or by any omission to perform a duty imposed by law or agreement by, CONSULTANT, its officers, employees, agents or contractors under this Agreement. 16.3. The acceptance of CONSULTANT’s Services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17. WAIVERS. No waiver of a condition or nonperformance of an obligation under this Agreement is effective unless it is in writing in accordance with Section 29.4 of this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance. Any waiver granted shall apply solely to the specific instance expressly stated. No single or partial exercise of any right or remedy will preclude any other or further exercise of any right or remedy. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit D, entitled “INSURANCE REQUIREMENTS”. CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best’s Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY’s Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days’ prior written notice of the cancellation or modification. If the insurer cancels or modifies the insurance and provides less than thirty (30) days’ notice to CONSULTANT, CONSULTANT shall provide the Purchasing Manager written notice of the cancellation or modification within two (2) business days of the CONSULTANT’s receipt of such notice. CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY’s Chief Procurement Officer during the entire term of this Agreement. 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULTANT’s liability hereunder nor to fulfill the indemnification DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 7 Packet Pg. 734 of 911 Professional Services Rev. Dec.15, 2020 Page 6 of 20 provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the term has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The City Manager may suspend the performance of the Services, in whole or in part, or terminate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. If CONSULTANT fails to perform any of its material obligations under this Agreement, in addition to all other remedies provided under this Agreement or at law, the City Manager may terminate this Agreement sooner upon written notice of termination. Upon receipt of any notice of suspension or termination, CONSULTANT will discontinue its performance of the Services on the effective date in the notice of suspension or termination. 19.2. In event of suspension or termination, CONSULTANT will deliver to the City Manager on or before the effective date in the notice of suspension or termination, any and all work product, as detailed in Section 14 (Ownership of Materials), whether or not completed, prepared by CONSULTANT or its contractors, if any, in the performance of this Agreement. Such work product is the property of CITY, as detailed in Section 14 (Ownership of Materials). 19.3. In event of suspension or termination, CONSULTANT will be paid for the Services rendered and work products delivered to CITY in accordance with the Scope of Services up to the effective date in the notice of suspension or termination; provided, however, if this Agreement is suspended or terminated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT’s Services provided in material conformity with this Agreement as such determination is made by the City Manager acting in the reasonable exercise of his/her discretion. The following Sections will survive any expiration or termination of this Agreement: 14, 15, 16, 17, 19.2, 19.3, 19.4, 20, 25, 27, 28, 29 and 30. 19.4. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement, unless made in accordance with Section 17 (Waivers). SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 8 Packet Pg. 735 of 911 Professional Services Rev. Dec.15, 2020 Page 7 of 20 To CONSULTANT: Attention of the Project Manager at the address of CONSULTANT recited on the first page of this Agreement. CONSULTANT shall provide written notice to CITY of any change of address. SECTION 21. CONFLICT OF INTEREST. 21.1. In executing this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subcontractors or other persons or parties having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Government Code of the State of California, as amended from time to time. CONSULTANT agrees to notify CITY if any conflict arises. 21.3. If the CONSULTANT meets the definition of a “Consultant” as defined by the Regulations of the Fair Political Practices Commission, CONSULTANT will file the appropriate financial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act of 1974, as amended from time to time. SECTION 22. NONDISCRIMINATION; COMPLIANCE WITH ADA. 22.1. As set forth in Palo Alto Municipal Code Section 2.30.510, as amended from time to time, CONSULTANT certifies that in the performance of this Agreement, it shall not discriminate in the employment of any person due to that person’s race, skin color, gender, gender identity, age, religion, disability, national origin, ancestry, sexual orientation, pregnancy, genetic information or condition, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 22.2. CONSULTANT understands and agrees that pursuant to the Americans Disabilities Act (“ADA”), programs, services and other activities provided by a public entity to the public, whether directly or through a contractor or subcontractor, are required to be accessible to the disabled public. CONSULTANT will provide the Services specified in this Agreement in a manner that complies with the ADA and any other applicable federal, state and local disability rights laws and regulations, as amended from time to time. CONSULTANT will not discriminate against persons with disabilities in the provision of services, benefits or activities provided under this Agreement. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING AND ZERO WASTE REQUIREMENTS. CONSULTANT shall comply with the CITY’s Environmentally Preferred Purchasing policies which are available at CITY’s Purchasing Department, hereby DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 9 Packet Pg. 736 of 911 Professional Services Rev. Dec.15, 2020 Page 8 of 20 incorporated by reference and as amended from time to time. CONSULTANT shall comply with waste reduction, reuse, recycling and disposal requirements of CITY’s Zero Waste Program. Zero Waste best practices include, first, minimizing and reducing waste; second, reusing waste; and, third, recycling or composting waste. In particular, CONSULTANT shall comply with the following Zero Waste requirements: (a) All printed materials provided by CONSULTANT to CITY generated from a personal computer and printer including but not limited to, proposals, quotes, invoices, reports, and public education materials, shall be double-sided and printed on a minimum of 30% or greater post-consumer content paper, unless otherwise approved by CITY’s Project Manager. Any submitted materials printed by a professional printing company shall be a minimum of 30% or greater post-consumer material and printed with vegetable-based inks. (b) Goods purchased by CONSULTANT on behalf of CITY shall be purchased in accordance with CITY’s Environmental Purchasing Policy including but not limited to Extended Producer Responsibility requirements for products and packaging. A copy of this policy is on file at the Purchasing Department’s office. (c) Reusable/returnable pallets shall be taken back by CONSULTANT, at no additional cost to CITY, for reuse or recycling. CONSULTANT shall provide documentation from the facility accepting the pallets to verify that pallets are not being disposed. SECTION 24. COMPLIANCE WITH PALO ALTO MINIMUM WAGE ORDINANCE. CONSULTANT shall comply with all requirements of the Palo Alto Municipal Code Chapter 4.62 (Citywide Minimum Wage), as amended from time to time. In particular, for any employee otherwise entitled to the State minimum wage, who performs at least two (2) hours of work in a calendar week within the geographic boundaries of the City, CONSULTANT shall pay such employees no less than the minimum wage set forth in Palo Alto Municipal Code Section 4.62.030 for each hour worked within the geographic boundaries of the City of Palo Alto. In addition, CONSULTANT shall post notices regarding the Palo Alto Minimum Wage Ordinance in accordance with Palo Alto Municipal Code Section 4.62.060. SECTION 25. NON-APPROPRIATION. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code, as amended from time to time. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. SECTION 26. PREVAILING WAGES AND DIR REGISTRATION FOR PUBLIC WORKS CONTRACTS. 26.1. This Project is not subject to prevailing wages and related requirements. CONSULTANT is not required to pay prevailing wages and meet related requirements under the California Labor Code and California Code of Regulations in the performance and implementation of the Project if the contract: (1) is not a public works contract; (2) is for a public works construction project of $25,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j); or (3) is for a public works alteration, demolition, repair, or maintenance project of DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 10 Packet Pg. 737 of 911 Professional Services Rev. Dec.15, 2020 Page 9 of 20 $15,000 or less, per California Labor Code Sections 1782(d)(1), 1725.5(f) and 1773.3(j). This Project is not a 9204 Public Works Project. SECTION 28. CONFIDENTIAL INFORMATION. 28.1. In the performance of this Agreement, CONSULTANT may have access to CITY’s Confidential Information (defined below). CONSULTANT will hold Confidential Information in strict confidence, not disclose it to any third party, and will use it only for the performance of its obligations to CITY under this Agreement and for no other purpose. CONSULTANT will maintain reasonable and appropriate administrative, technical and physical safeguards to ensure the security, confidentiality and integrity of the Confidential Information. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to its employees, agents and subcontractors, if any, to the extent they have a need to know in order to perform CONSULTANT’s obligations to CITY under this Agreement and for no other purpose, provided that the CONSULTANT informs them of, and requires them to follow, the confidentiality and security obligations of this Agreement. 28.2. “Confidential Information” means all data, information (including without limitation “Personal Information” about a California resident as defined in Civil Code Section 1798 et seq., as amended from time to time) and materials, in any form or media, tangible or intangible, provided or otherwise made available to CONSULTANT by CITY, directly or indirectly, pursuant to this Agreement. Confidential Information excludes information that CONSULTANT can show by appropriate documentation: (i) was publicly known at the time it was provided or has subsequently become publicly known other than by a breach of this Agreement; (ii) was rightfully in CONSULTANT’s possession free of any obligation of confidence prior to receipt of Confidential Information; (iii) is rightfully obtained by CONSULTANT from a third party without breach of any confidentiality obligation; (iv) is independently developed by employees of CONSULTANT without any use of or access to the Confidential Information; or (v) CONSULTANT has written consent to disclose signed by an authorized representative of CITY. 28.3. Notwithstanding the foregoing, CONSULTANT may disclose Confidential Information to the extent required by order of a court of competent jurisdiction or governmental body, provided that CONSULTANT will notify CITY in writing of such order immediately upon receipt and prior to any such disclosure (unless CONSULTANT is prohibited by law from doing so), to give CITY an opportunity to oppose or otherwise respond to such order. 28.4. CONSULTANT will notify City promptly upon learning of any breach in the security of its systems or unauthorized disclosure of, or access to, Confidential Information in its possession or control, and if such Confidential Information consists of Personal Information, CONSULTANT will provide information to CITY sufficient to meet the notice requirements of Civil Code Section 1798 et seq., as applicable, as amended from time to time. 28.5. Prior to or upon termination or expiration of this Agreement, CONSULTANT will honor any request from the CITY to return or securely destroy all copies of DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 11 Packet Pg. 738 of 911 Professional Services Rev. Dec.15, 2020 Page 10 of 20 Confidential Information. All Confidential Information is and will remain the property of the CITY and nothing contained in this Agreement grants or confers any rights to such Confidential Information on CONSULTANT. 28.6. If selected in Section 30 (Exhibits), this Agreement is also subject to the terms and conditions of the Information Privacy Policy and Cybersecurity Terms and Conditions. SECTION 29. MISCELLANEOUS PROVISIONS. 29.1. This Agreement will be governed by California law, without regard to its conflict of law provisions. 29.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 29.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys’ fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys’ fees paid to third parties. 29.4. This Agreement, including all exhibits, constitutes the entire and integrated agreement between the parties with respect to the subject matter of this Agreement, and supersedes all prior agreements, negotiations, representations, statements and undertakings, either oral or written. This Agreement may be amended only by a written instrument, which is signed by the authorized representatives of the parties and approved as required under Palo Alto Municipal Code, as amended from time to time. 29.5. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the unaffected provisions of this Agreement will remain in full force and effect. 29.6. In the event of a conflict between the terms of this Agreement and the exhibits hereto (per Section 30) or CONSULTANT’s proposal (if any), the Agreement shall control. In the event of a conflict between the exhibits hereto and CONSULTANT’s proposal (if any), the exhibits shall control. 29.7. The provisions of all checked boxes in this Agreement shall apply to this Agreement; the provisions of any unchecked boxes shall not apply to this Agreement. 29.8. All section headings contained in this Agreement are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. 29.9. This Agreement may be signed in multiple counterparts, which, when executed by the authorized representatives of the parties, shall together constitute a single binding agreement. DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 12 Packet Pg. 739 of 911 Professional Services Rev. Dec.15, 2020 Page 11 of 20 SECTION 30. EXHIBITS. Each of the following exhibits, if the check box for such exhibit is selected below, is hereby attached and incorporated into this Agreement by reference as though fully set forth herein: EXHIBIT A: SCOPE OF SERVICES EXHIBIT B: SCHEDULE OF PERFORMANCE EXHIBIT C: COMPENSATION EXHIBIT D: INSURANCE REQUIREMENTS THIS AGREEMENT IS NOT COMPLETE UNLESS ALL SELECTED EXHIBITS ARE ATTACHED. DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 13 Packet Pg. 740 of 911 Professional Services Rev. Dec.15, 2020 Page 12 of 20 CONTRACT No. 188369 SIGNATURE PAGE IN WITNESS WHEREOF, the parties hereto have by their duly authorized representatives executed this Agreement as of the date first above written. CITY OF PALO ALTO ____________________________ City Manager APPROVED AS TO FORM: __________________________ City Attorney or designee DOWNTOWN STREETS, INC. Officer 1 By: Jim Rettew Name: Title: Officer 2 By: Marina Peterson Name: Title: DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Interim CEO Chief Financial Officer Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 14 Packet Pg. 741 of 911 Professional Services Rev. Dec.15, 2020 Page 13 of 20 EXHIBIT A SCOPE OF SERVICES CONSULTANT shall provide the Services detailed in this Exhibit A, entitled “SCOPE OF SERVICES”. CONSULTANT will provide homeless and/or extremely low‐income individuals with job readiness training and employment opportunities through job search skill instruction, supportive services, and direct employment placements with partnering companies. The objective of this program is to help previously homeless individuals rebuild their self‐esteem and confidence through the dignity of work. The primary goal of the program is to transition people from a state of non‐ worker readiness and unemployment into regular paid employment. The program will provide counseling and training to assist participants develop a plan for self‐ sustainability by procuring housing or shelter, address physical/mental issues, receive transportation assistance, or providing other services. Training will primarily focus on building successful work habits, job readiness skills, resume writing, and employment search skills. Downtown Streets Team will additionally recruit and work with a network of local businesses to identify and increase the number of job opportunities suitable for the targeted population from the private sector. CONSULTANT will create economic opportunities and 14 unduplicated homeless individuals will receive gainfully employment allowing them increased access to economic opportunities. CONSULTANT will provide tangible local employment opportunities for motivated, previously homeless, or at‐risk of homeless individuals who have completed the CONSULTANT’s Employment Development Course though the following objectives: Objective # 1: Attain paid employment opportunities for unemployed and homeless individuals in the Workforce Development Program. Outcome: Previously homeless and unemployed persons will find paid employment. Numbers served: 14 unduplicated individuals will be placed in jobs through job training/employment readiness classes and outreach to local employers. Objective # 2: Build extensive network of local employers willing to hire DST program participants. Outcome: Local employers willing to hire or open/expedite interview process to a DST program participant. Number served: 14 local employers will be recruited to create/hold positions or expedite the hiring process for DST program participants in Fiscal Year 2023-2024 Objective # 3: Develop job search skills and job readiness training classes to prepare participants for employment. Outcome: Employers retain new employees beyond three months. Number served: 75% of employers retain new employees beyond three months. Program Funding: The following positions and expenses will be included for the FY2024 program activities: DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 15 Packet Pg. 742 of 911 Professional Services Rev. Dec.15, 2020 Page 14 of 20 Position Title Total Annual Salary Hours Per Allotted to Reimbursement Request Project Manager $75,000 40 41% $30,750 Employment Specialist $65,606 40 50% $32,803 Case Manager $59,782 40 100% $59,782 Sub-total Salaries $123,335 Benefits $28,367 Sub-Total Salaries and Benefits $151,702 Rent & Utilities $15,000 Communications $1,638 Sub-Total Expenses $16,638 $168,340 CONSULTANT shall provide semi-annual activity reports relating to this Scope of Services for the periods ending December 31, 2023, and June 30, 2024, within fifteen (15) days after these dates. Each report shall cover the preceding six (6) month period, and other such information as the CITY may request. The final report shall focus on the preceding (6) months, but also shall provide information on contract services for the entire year. Each report shall be prepared in the form agreed upon by the CITY and CONSULTANT. Income, as well as race and ethnicity, information will be gathered and reported on the program participants. DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 16 Packet Pg. 743 of 911 Professional Services Rev. Dec.15, 2020 Page 15 of 20 EXHIBIT B SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the Project Managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed (“NTP”) from the CITY. Deliverables Schedule Exhibit “A” – Scope of Services Daily/Ongoing EXHIBIT C COMPENSATION CITY agrees to compensate CONSULTANT for the Services performed in accordance with the terms and conditions of this Agreement, including Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4 of the Agreement), based on the hourly rate schedule attached as Exhibit C-1. The compensation to be paid to CONSULTANT under this Agreement for all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), shall not exceed the amount(s) stated in Section 4 of this Agreement. CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and Additional Services (if any, per Section 4), within this/these amount(s). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth in this Agreement shall be at no cost to the CITY. BUDGET SCHEDULE: Description Total Employee Benefits/Taxes $151,702 Rent & Utilities $15,000 Communications $1,638 TOTAL EXPENSES $168,340 REIMBURSABLE EXPENSES Unless specifically noted in Exhibit A, Scope of Services, 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 DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 17 Packet Pg. 744 of 911 Professional Services Rev. Dec.15, 2020 Page 16 of 20 not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reimbursed are: $0.00 ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULTANT, at the CITY’s project manager’s request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT’s proposed maximum compensation, including reimbursable expenses, for such services based on the rates set forth in Exhibit C-1. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY’s Project Manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement. Invoicing Process: All invoices shall be submitted to the Planning Department’s contract email account at PCEContracts@cityofpaloalto.org to ensure timely payment. DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 18 Packet Pg. 745 of 911 Professional Services Rev. Dec.15, 2020 Page 17 of 20 EXHIBIT C-1 SCHEDULE OF RATES CONSULTANT’s schedule of rates is as follows: DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 19 Packet Pg. 746 of 911 Professional Services Rev. Dec.15, 2020 Page 18 of 20 EXHIBIT D INSURANCE REQUIREMENTS CONSULTANTS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST’S KEY RATING OF A-:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGENT ON COMPLIANCE WITH CITY’S INSURANCE REQUIREMENTS AS SPECIFIED HEREIN. REQUIRED TYPE OF COVERAGE REQUIREMENT MINIMUM LIMITS EACH OCCURRENCE AGGREGATE YES YES WORKER’S COMPENSATION EMPLOYER’S LIABILITY STATUTORY STATUTORY STATUTORY STATUTORY YES GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL LIABILITY BODILY INJURY PROPERTY DAMAGE BODILY INJURY & PROPERTY DAMAGE COMBINED. $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNED BODILY INJURY - EACH PERSON - EACH OCCURRENCE PROPERTY DAMAGE BODILY INJURY AND PROPERTY DAMAGE, COMBINED $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 YES PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1,000,000 YES THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONSULTANT, AT ITS SOLE COST AND EXPENSE, SHALL OBTAIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONSULTANT AND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, WITH COMPENSATION, EMPLOYER’S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONSULTANT’S AGREEMENT TO INDEMNIFY CITY. II. THE CONSULTANT MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 III. ENDORSEMENT PROVISIONS WITH RESPECT TO THE INSURANCE AFFORDED TO ADDITIONAL INSUREDS: A. PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR THE BENEFIT OF THE ADDITIONAL INSUREDS. DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 20 Packet Pg. 747 of 911 Professional Services Rev. Dec.15, 2020 Page 19 of 20 B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER THIS POLICY. C. NOTICE OF CANCELLATION 1. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTHER THAN THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. 2. IF THE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON-PAYMENT OF PREMIUM, THE CONSULTANT SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE THE EFFECTIVE DATE OF CANCELLATION. EVIDENCE OF INSURANCE AND OTHER RELATED NOTICES ARE REQUIRED TO BE FILED WITH THE CITY OF PALO ALTO AT THE FOLLOWING URL: HTTPS://WWW.PLANETBIDS.COM/PORTAL/PORTAL.CFM?COMPANYID=25569 OR HTTP://WWW.CITYOFPALOALTO.ORG/GOV/DEPTS/ASD/PLANET_BIDS_HOW_TO.ASP DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 21 Packet Pg. 748 of 911 Professional Services Rev. Dec.15, 2020 Page 20 of 20 DocuSign Envelope ID: EAF62EB2-3D3C-4CFA-9AA9-FB451EF179F8 Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 22 Packet Pg. 749 of 911 Certificate Of Completion Envelope Id: EAF62EB23D3C4CFA9AA9FB451EF179F8 Status: Completed Subject: Complete with DocuSign: C23188369 Downtown Streets Team Final.pdf Source Envelope: Document Pages: 20 Signatures: 2 Envelope Originator: Certificate Pages: 2 Initials: 0 Lujan, Albert AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Albert.Lujan@CityofPaloAlto.org IP Address: 199.33.32.254 Record Tracking Status: Original 5/30/2023 1:35:36 PM Holder: Lujan, Albert Albert.Lujan@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 Jim Rettew jim@streetsteam.org Interim CEO Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 76.103.25.187 Sent: 5/30/2023 1:41:13 PM Viewed: 5/30/2023 2:58:00 PM Signed: 5/30/2023 3:11:02 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Marina Peterson marina@streetsteam.org Chief Financial Officer Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 135.180.72.103 Sent: 5/30/2023 3:11:04 PM Viewed: 5/30/2023 5:21:36 PM Signed: 5/30/2023 9:44:00 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 Khashayar Alaee khashayar.alaee@cityofpaloalto.org Senior Management Analyst City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 5/30/2023 9:44:01 PM Viewed: 5/31/2023 9:54:14 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 23 Packet Pg. 750 of 911 Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 5/30/2023 1:41:13 PM Certified Delivered Security Checked 5/30/2023 5:21:36 PM Signing Complete Security Checked 5/30/2023 9:44:00 PM Completed Security Checked 5/30/2023 9:44:01 PM Payment Events Status Timestamps Item 40 Attachment A - Downtown Streets Team Contract, C23188369 Item 40: Staff Report Pg. 24 Packet Pg. 751 of 911 City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: Public Works Meeting Date: June 19, 2023 Report #:2306-1599 TITLE Tree Protection Ordinance Year One Implementation Update RECOMMENDATION Staff is not recommending any action at this time. This report is being provided as an informational update on Tree Protection Ordinance implementation. EXECUTIVE SUMMARY Title 8 of Palo Alto Municipal Code (PAMC) contains regulations governing street trees, shrubs and plants (Chapter 8.04), weed abatement (Chapter 8.08), and tree preservation and management (Chapter 8.10). The Tree Protection Ordinance updates made in 2022 focus on implementation of Council- approved policies contained in the 2030 Comprehensive Plan (Natural Environment Chapter1), and the Urban Forest Master Plan2. Additional code updates include changes prompted by State law, specifically Executive Order B-29-153, also known as the Model Water Efficient Landscape Ordinance. Changes made to the ordinance range from significant policy changes, like expanding the types of protected trees and revising allowances for tree removal, to more clerical updates, like updating authorized officers and accounting for recent changes in other development-related codes. Implementation of the new ordinance began in July 2022 and is still in progress. 1 Reference, 2030 Comprehensive Plan https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Long-Range-Planning/2030- Comprehensive-Plan 2 Reference, Urban Forest Master Plan https://www.cityofpaloalto.org/files/assets/public/public-works/tree-section/ufmp/urban-forest-mp-after- adoption-reduced-2-25-19-complete.pdf 3 Reference, State Model Water Efficiency Landscape Ordinance https://www.ca.gov/archive/gov39/wp-content/uploads/2017/09/4.1.15_Executive_Order.pdf Item 41 Item 41 Staff Report Item 41: Staff Report Pg. 1 Packet Pg. 752 of 911 BACKGROUND On June 6, 2022, the City Council voted4 to update the Tree Protection Ordinance to complement current policy documents and strengthen requirements and procedures for when protected tree removals are proposed. The first Tree Protection Ordinance was added to the Palo Alto Municipal Code in 1951 and its last substantive update prior to the 2022 update was in 2001. Since then, the City implemented new policy documents such as the 2015 Urban Forest Master Plan (UFMP), which contains goals and policies to sustain and enhance Palo Alto’s Urban Forest. Many of these policies and goals are also tied to sustainability efforts contained in the 2030 Comprehensive Plan and the Sustainability and Climate Action Plan (S/CAP). During the adoption of the updated Tree Protection Ordinance in June of 2022, Staff was directed by Council to review the ordinance with the Parks and Recreation Commission (PRC) and Planning and Transportation Committee (PTC) near the one-year mark. Once those reviews were completed, staff was to return to Council with any proposed changes or additional updates to the Tree Protection Ordinance. Staff is providing this update due to Council and public interest after the recent unprecedented winter season. Staff plans to meet with PRC and PTC in the coming months to review the first year of the ordinance and discuss any proposed updates or adjustments that would then come before Council in the fall. The updated Tree Protection Ordinance went into effect on July 21, 2022. It includes changes that protect more native California species, promote drought resistant and tolerant species, and protect most other tree species over a certain size. Under the updated ordinance, the definition of a Protected Tree has been expanded to include the following: Specific native species protected at 11.5” diameter at breast height (DBH): •Acer macrophyllum (Bigleaf Maple) o Calocedrus decurrens (Incense Cedar) o Quercus agrifolia (Coast Live Oak)* o Quercus douglasii (Blue Oak) o Quercus kelloggii (California Black Oak) o Quercus lobata (Valley Oak)* •Species protected at 18” DBH: o Sequoia sempervirens (Coast Redwood)* •Proposed protected species at 15” DBH: o includes all species not listed above except: ▪Invasive species per Cal-IPC ▪High Water Users per WUCOLS (Excluding Redwood) •Other protected tree categories: o Any tree designated for protection during review and approval of a development project 4 City Council, 6/6/2022, Agenda Item #13, SR# 14355 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=81908 Item 41 Item 41 Staff Report Item 41: Staff Report Pg. 2 Packet Pg. 753 of 911 o Any tree designated for carbon sequestration and storage and/or for environmental mitigation purposes o Any replacement mitigation tree or other tree designated to be planted due to the conditions listed in this ordinance * species protected prior to July 21, 2022 Using a dataset of almost 10,500 private trees as a representative sample, staff used an average of several calculation methods contained in the 2017 California Urban Forest Study by Greg McPherson5, to estimate species and size distribution for our entire private tree urban forest. Total Urban Forest Tree Estimates All Private Proposed Protected trees based on total trees # Species Count % New Protected Tree Total 224,100 37.35% Old Protected Tree Total 81,720 13.62% ANALYSIS Implementation of the new Tree Protection Ordinance components by staff began after passage by Council in June 2022 and is ongoing. The sections below describe the most significant changes contained in the updated ordinance and provide summary data illustrating some of the impacts. Tree Protection Ordinance Component Updates: The expanded definition of protected trees and updated acceptable reasons for removing protected trees both during and outside of development are likely the most significant changes included in the updated ordinance. Any projects requiring planning approval and any building permits not requiring planning approval that were initially submitted after July 21, 2022 are subject to the new requirements. Because of this, many of the applications reviewed for Tree 5 McPherson G.E., 2017. The structure, function, and value of urban forests in California communities. Urban Forestry & Urban Greening 28 (2017) 43-53; https://www.fs.usda.gov/psw/publications/mcpherson/psw_2017_mcpherson005.pdf Item 41 Item 41 Staff Report Item 41: Staff Report Pg. 3 Packet Pg. 754 of 911 Protection Ordinance compliance during the last year by Urban Forestry staff were subject to the previous ordinance. Protected Tree Removal Permits Tree Removal Permits historically covered only protected tree removals not associated with a development project. To better capture and analyze tree removal data, once our new Tree Permit Workflow is active all protected tree removals, both tied to development and outside of development, will be captured as Tree Removal Permits. Tree Removal Permits under updated ordinance: 7/21/2022 to 5/31/2023 •66 Tree Removal Permit applications (Projected 150 total for calendar year 2023) o 54 approved ▪10 Emergency permits/storm damage ▪15 Dead/dying ▪8 damaging foundations or eaves of homes o 11 no decision rendered ▪3 denied ▪1 canceled ▪7 pending additional information or inspection •39 Trees proposed for removal were previously protected under old ordinance •51 Trees proposed for removal are newly protected under new ordinance Tree Removal Permits under old ordinance: 7/21/2021 to 5/31/2022 •36 Tree Removal Permit applications (52 total for calendar year 2022) o 32 approved ▪7 damaging foundations or eaves of homes ▪9 dead/dying o 1 denied o 3 no decision rendered/ pending additional information Tree Removal Permits under old ordinance, same period for 20/21: 7/21/20 to 5/31/21 •44 Tree Removal Permit applications (43 total for calendar year 2021) o 33 approved ▪6 damaging foundations or eaves of homes ▪18 dead/dying o 1 denied o 10 no decision rendered/ pending additional information Review of Development Applications for Tree Protection Ordinance Compliance As more trees are classified as protected status under the new ordinance, many development applications that would previously not have required in depth review by Urban Forestry staff are now subject to review for compliance with the Tree Protection Ordinance. Item 41 Item 41 Staff Report Item 41: Staff Report Pg. 4 Packet Pg. 755 of 911 The numbers below show a 14% increase in the number of applications routed to Urban Forestry during the first 10 months of the new ordinance compared with the same time period the year before. As we move forward into Fiscal Year 2024, many of the projects subject to the old ordinance will have completed reviews, been issued permits, or expired. Staff anticipates that the number of permits routed to Urban Forestry will continue to increase over the next year. Urban Forestry Reviews for Planning & Development: 7/21/2022 to 5/31/2023 •166 Planning applications •608 Permit applications (Building, Encroachment, Street) Urban Forestry Reviews for Planning & Development: 7/21/2021 to 5/31/2022 •118 Planning applications •560 Permit applications (Building, Encroachment, Street) Urban Forestry Reviews for Planning & Development: 7/21/2020 to 5/31/2021 •99 Planning applications •349 Permit applications (Building, Encroachment, Street) New Maintenance of Protected Trees Notification Requirement Under the updated ordinance, significant maintenance of any protected status tree requires notification to the City and the general public. This requirement helps to inform staff and the public about scheduled tree work. Having information about scheduled tree maintenance available often allows staff to respond quickly to residents when inquiries are made about tree work in their neighborhood. This has been aided through the creation of an online form by City staff. When a tree owner plans to maintain a protected tree, they simply fill out the online form. Some key components of this requirement: •This is not a permit, there is no fee required, and the City does not approve or deny. •The form instructs tree owners about the maintenance requirements for protected status trees, and they must agree to follow best arboricultural practices when maintaining protected trees. •A total of 55 maintenance notifications were submitted between Sept 1, 2022, to May 1, 2023. New Posting Requirements & Appeal Process Major updates to the public notification process for protected tree removal permits were included in the updated tree ordinance. The largest change included a postcard notification process similar to what was in place for certain Planning Applications. When a Protected Tree Removal Permit is applied for, a direct mailed postcard is sent out to all addresses within 300 feet of the property containing the tree. A second postcard is sent out when a decision on the permit is made. •Residents often reach out city staff for more information after receiving postcards. •No formal appeal of a Protected Tree Removal Permit has been filed yet. •New tree removal notification webpage has been created to accommodate the dual notice requirements of application received and decision rendered. Item 41 Item 41 Staff Report Item 41: Staff Report Pg. 5 Packet Pg. 756 of 911 Posting for public tree removals by City staff and for private protected trees removed under the City’s Right Tree, Right Place program (RTRP) are done as a courtesy to surrounding residents and are not required. These two types of protected tree removals are not subject to appeal under the ordinance. Moving From Paper Forms to Electronic Submittal of Protected Tree Removal Permit Applications Until recently, all Tree Removal Permit applications have been submitted in hard copy or by email utilizing a one-page PDF application. These application submittals must then be uploaded into the City’s Accela permit system manually. Urban Forestry staff has been working with Planning & Development staff to launch a new Tree Removal Permit workflow in Accela that will eliminate these extra unnecessary steps. •New Tree Removal Permit workflow in Accela Permit System to be launched in coming months. o Currently in system testing phase with Accela o Will streamline the process reducing/eliminating paper forms o Allows assignments of specific steps to different City staff. For example, noticing tasks can be assigned to a specific staff member while inspection of the tree can be assigned to a City staff arborist. o New process will collect better data on trees included in Tree Removal Permit applications. o Will allow staff to track completion of any required replacement plantings. •The “Tree Protection, It’s Part of the Plan” sheet (also known as the T-1 Sheet6) and the required Tree Disclosure Statement have been updated to reflect new ordinance. o Exemption included in Tree Disclosure Statement for completion by certified arborist for Accessory Dwelling Unit (ADU) only projects to comply with State Law. o Standard Urban Forestry Conditions have been added to the T-1 sheet to simplify the Planning Departments conditions of approval process. Tree Ordinance Components in Progress There are several tree ordinance components that have yet to be implemented. These items are listed below in order of priority. •Tree and Landscape Technical Manual (TLTM) o Update in process, ready for department review by end of FY. o This manual is geared toward contractors, builders, and tree care companies o Tree Protection Plan Sheet (T1) and Tree Disclosure Statement already updated o Working on plan to translate into Spanish after final draft approved. •Designated Arborist system o Not yet implemented, will finalize after TLTM 6 Draft Updated T-1 Tree Protection Sheet (05/03/2023) https://paloalto.admin.opencities.com/files/c81d7199-3af1-42e5-b5eb-ef97d1a5c93f/DRAFT-T1-05-03-23.pdf Item 41 Item 41 Staff Report Item 41: Staff Report Pg. 6 Packet Pg. 757 of 911 o Until implemented, any certified arborist may complete submittals for development projects. o Example criteria for inclusion to be created o List members can be removed due to non-compliance on submittals o Annual or Biannual updates to list 2023 Storm Response: Portions of the Tree Protection Ordinance implementation were delayed this winter due to the series of unprecedented storms that occurred between January and March of 2023. The series of storms the Bay Area has seen this winter starting on December 31, 2022 was very unusual. These storms included high rainfall totals in very short time spans and strong winds from non-prevailing directions with little or no time for recovery in between events. While each tree and its growing location are unique and there are many factors that can contribute to whether a tree will survive an extreme weather event, the highly saturated soils from heavy rains followed by high winds have been contributing factors to many of the whole tree failures we have seen this winter. For perspective, rainfall between December 31, 2022 and March 22, 2023 has resulted in four of the top 20 highest recorded peak flows in San Francisquito creek. Response and clean up to this series of storms began on January 1, 2023 and was mostly resolved by the end of April 2022. Staff that would have been working to complete some components of the updated Tree Protection Ordinance were instead responding to storm related issues and recovery tasks. Urban Forestry Winter 2023 Storm Statistics: 1/1/2023 to 4/30/23 •10 emergency tree removal permits issued •243 Limb failures/pickups (206 City / 37 private) •6 private trees removed (trees that failed and affected the public right-of-way) •43 City trees removed •50 tree related electric outages •563 tons of green debris removal For comparison, in the same time period in 2021, staff responded to 40 limb failures and 5 City trees were removed. FISCAL/RESOURCE IMPACT This update on Tree Protection Ordinance implementation does not focus on Resource Impacts. STAKEHOLDER ENGAGEMENT Public outreach regarding the updated ordinance has been ongoing since the adoption of the updated ordinance in June of 2022. The majority of public outreach has been conducted by City staff and the City’s urban forestry non-profit partner Canopy. Below is a list of outreach efforts that have been completed or are currently in progress. •City Urban Forestry webpages have been updated to reflect new ordinance. o New Tree Ordinance Information page created and expanded. Item 41 Item 41 Staff Report Item 41: Staff Report Pg. 7 Packet Pg. 758 of 911 •New Tree FAQs7 created to address many questions about the tree ordinance and storm related tree issues. •Creation of a new general trees email address (trees@cityofpaloalto.org) to simplify contacting the Urban Forestry Section. •Canopy webpages updated to mirror new information info on City web pages. •Canopy tree walk flyers updated to highlight Tree ordinance updates. •Canopy Tree-news has released 3 Issues (June 2022, January 223, April 2023) that speak about the updated tree ordinance. o Tree news issues reach approximately 4500 subscribers. •An email distribution list of arborists, tree care companies and Urban Forestry advocates has been complied by city staff and informational updates are being sent periodically. These updates have been added to the Tree Ordinance Information webpage as PDFs8. Staff is in the process of translating these updates into Spanish language versions as well. Anyone can be added to the list by email request sent to trees@cityofpaloalto.org The following outreach components are still in development and will be put in place in the coming months. •A direct mailed Postcard is to all Palo Alto residents providing information about the updated TPO. •Utility bill insert and email highlighting new ordinance information. •Informational ads in local printed and electronic press. •Live webinar sessions targeted at local arborists and tree care companies to review new ordinance requirements. These will be recorded and posted to the city website. ENVIRONMENTAL REVIEW This update on the implementation of the Tree Protection Ordinance is not subject to the California Environmental Quality Act. APPROVED BY: Brad Eggleston, Director Public Works/City Engineer 7 New Urban Forestry Trees Frequently Asked Questions, https://www.cityofpaloalto.org/Departments/Public-Works/Public-Services/Palo-Altos-Urban-Forest/Frequently- Asked-Questions 8 Example of a Tree Ordinance Information Update, https://www.cityofpaloalto.org/files/assets/public/public-works/tree-section/new-folder/palo-alto-tree- ordinance-information-updates-1-protected-trees.pdf Item 41 Item 41 Staff Report Item 41: Staff Report Pg. 8 Packet Pg. 759 of 911 2 3 0 5 City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Planning and Development Services Meeting Date: June 19, 2023 Report #:2305-1526 TITLE Accessory Dwelling Unit (ADU) Quarterly Report (Quarter 1 of Calendar Year 2023) RECOMMENDATION This is an informational report, and no action is required. BACKGROUND/ANALYSIS This report transmits information related to application and period activity for accessory dwelling units (ADU), including junior accessory dwelling units (JADU). Since 2015, the City has received 571 ADU/JADU building permit applications and issued 437 permits. In 2022, the City received the highest volume of ADU applications in a one-year period. The data for the first quarter of 2023 shows a slight reduction in application submittals on a year-to-year basis, but the number of applications submitted remains robust. In terms of the Housing Element, this data continues to support the anticipated housing unit production expected from J/ADUs for the current housing element cycle. In the first quarter of 2023, the ADU applications range from 264 to 921 square feet, with an average size of 546 square feet. Approximately 31% and 69% of the applications were located north and south, respectively, of Oregon Expressway. Further details can be found in Table 1 of Attachment A. ENVIRONMENTAL REVIEW This project is exempt from environmental review under Section 15061 of the California Environmental Quality Act Guidelines. ATTACHMENTS Attachment A: Table 1: ADUs Quarter 1 of CY2023 APPROVED BY: Jonathan Lait, Director, Planning and Development Services Item 42 Item 42 Staff Report Item 42: Staff Report Pg. 1 Packet Pg. 760 of 911 Table 1: Summary of ADU Permits from 2015 – Q1 2023 Category 2015 2016 2017 2018 2019 2020 2021 2022 2023 (Q1) New ADU Applications Filed1 10 9 28 55 75 78 136 151 29 (City Approved)2 8 5 12 39 62 46 112 127 26 Obtained)3 8 5 12 36 62 43 89 120 21 Inspection Approved4 3 4 9 12 33 46 37 62 22 1 1 2 Detached ADUs Detached ADUs (Submitted)5 20 35 52 52 80 80 14 (Issued)5 8 24 41 33 55 64 9 Attached ADUs (Submitted)6 8 20 23 20 56 44 15 Junior ADUs (Submitted)7 1 1 1 25 27 10 ADU Processing/Construction Times Processing Time (Days Including Weekends)8 127 214 118 183 135 197 162 193 215 Time (Days Including Weekends)9 578 751 330 287 173 262 455 431 544 ADU Impact Fees Collected for New ADUs10 $451,514 $402,012 $198,962 $44,057 $139,592 $60,750 Item 42 Attachment A - Table 1 ADUs Quarter 1 of CY2023 Item 42: Staff Report Pg. 2 Packet Pg. 761 of 911 ADU Sizes11 ADU Size Smallest 150 SF 159 SF 220 SF 208 SF 178 SF 192 SF 264 SF ADU Size Largest 900 SF 900 SF 1,031 SF 1,000 SF 1,218 SF 2,217 SF 921 SF Average ADU Size 470 SF 469 SF 383 SF 518 SF 550 SF 589 SF 546 SF North 46% 49% 52% 55% 49% 52% 31% South 54% 51% 48% 45% 51% 48% 69% Source: City of Palo Alto Accela Data January 2015 through March 31, 2023 Notes: 1. Any ADU/JADU Application SUBMITTED for the year 2. Any ADU/JADU application Permit 'READY TO Issue' for the year (regardless of when it was submitted) 3. Any ADU/JADU Permit ISSUED for the year (regardless of when it was submitted) 4. Any ADU/JADU Permit receiving a Final Inspection (Ready to Occupy) for the year, regardless of when the application wassubmitted. Years 2015-2017 data point not available. regardless of when the application was submitted. Years 2015-2016 data point not available. regardless of when the application was submitted. Years 2015-2016 data point not available. the application was submitted. Years 2015-2016 data point not available. average includes weekends and days application is pending due to applicant preparation of resubmittal or additional information from applicant. days staff is waiting for applicant to schedule the next required inspection; it also includes time related to the construction of a primary residence when the J/ADU is built at the same time. 11. Reflects the size comparisons of ADUs with applications filed in that year. Item 42 Attachment A - Table 1 ADUs Quarter 1 of CY2023 Item 42: Staff Report Pg. 3 Packet Pg. 762 of 911 Building Permits Submitted in Q1 of 2023 New Construction Conversion Type of Conversion # of apps Dwelling Type Project Location Zoning District Date Filed Application Status Attached Detached Attached Detached Garage Accessory Structure/ # of Bedrooms ADU Size 1 JADU NORTH R-1 01/25/2023 x x 1 281 2 ADU NORTH 02/09/2023 x 1 810 3 ADU SOUTH 01/03/2023 x x 1 325 4 ADU SOUTH R-1 03/07/2023 Incomplete x 2 748 5 JADU SOUTH R-1 03/15/2023 x 1 499 6 ADU SOUTH R-1 02/15/2023 x 1 440 7 ADU SOUTH R-1 03/23/2023 x 1 797 8 ADU SOUTH R-1 03/09/2023 x x 1 391 10 JADU SOUTH R-1 02/02/2023 x x 1 358 11 ADU SOUTH R-1 01/10/2023 x 2 800 12 JADU NORTH 01/11/2023 x x 0 284 13 ADU NORTH 01/11/2023 x x 2 836 14 ADU SOUTH 01/11/2023 x 1 471 15 JADU SOUTH 03/28/2023 x 1 500 16 ADU SOUTH 03/28/2023 x 1 921 17 ADU SOUTH R-1 02/06/2023 x 1 480 18 JADU SOUTH 03/29/2023 x 1 495 Item 42 Attachment A - Table 1 ADUs Quarter 1 of CY2023 Item 42: Staff Report Pg. 4 Packet Pg. 763 of 911 19 ADU NORTH 01/23/2023 x x 1 523 20 JADU NORTH R-1 03/17/2023 x 0 401 21 JADU SOUTH R-1 02/13/2023 x 1 479 22 JADU SOUTH 03/16/2023 x 1 534 23 ADU SOUTH R-1 02/16/2023 x x 1 264 24 ADU SOUTH 03/09/2023 x 2 750 25 ADU NORTH RM-30 03/10/2023 x 0 315 26 ADU SOUTH R-1 02/02/2023 x 1 307 27 ADU NORTH RM-30 03/06/2023 x 2 818 28 JADU SOUTH R-1 03/10/2023 x x 1 360 29 ADU SOUTH 01/30/2023 x x 1 810 Item 42 Attachment A - Table 1 ADUs Quarter 1 of CY2023 Item 42: Staff Report Pg. 5 Packet Pg. 764 of 911 1 6 7 8 CITY COUNCIL Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Planning and Development Services Meeting Date: June 19, 2023 Report #: 2302-0933 TITLE Update on State Law AB 2097 and Local Implementation Informational Report. RECOMMENDATION Receive report. EXECUTIVE SUMMARY Assembly Bill 20971 exempts most development projects from providing minimum on-site parking when a site is located within one-half mile from a major transit stop. This state law has implications for local land use policies and may affect development potential in the California Avenue area and University Avenue Downtown areas. Existing land use policies related to transferred development rights and in-lieu parking among other considerations are also addressed in this report. BACKGROUND In November 2022, the City Council received a legislative update from Townsend Public Affairs, the City’s state lobbyist, on new laws for 2023. One bill, Assembly Bill 2097 (AB 2097) became effective January 1, 2023 and restricts local governments from imposing parking requirements on certain residential and commercial development. More specifically, development projects located within one-half mile of a major transit stop, as defined in the regulation, are exempt from minimum on-site parking requirements. The bill does not apply to transient lodging and does not exempt a developer from meeting local requirements for electric vehicle supply equipment or parking spaces accessible to persons with disabilities. Local implementation of state law is currently in effect. Staff has prepared a map based on the legislative requirements of the law and other local and regional data sources including from the Valley Transportation Authority and the Metropolitan Transportation Commission. While AB 1 AB 2097 Text: https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB2097. Item 43 Item 43 Staff Report Item 43: Staff Report Pg. 1 Packet Pg. 765 of 911 1 6 7 8 2097 applies to two or more intersecting major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods, there is only one location in Palo Alto that meets this requirement and it located at the University Avenue transit center. Effectively, for Palo Alto, the requirements of AB 2097 generally apply to fixed rail station locations, though the map takes into consideration the slightly offset location of the bus transfer service station near the University Avenue transit stop. Development projects on property depicted within the shaded radius circles on the attached map are exempt from minimum parking requirements. This law has implications a number of local land use policies beyond the basic requirement for minimum parking standards requirement. ANALYSIS With few exceptions, AB 2097 exempts development projects from minimum parking standards. ”Development project” is not defined in the bill, but is defined elsewhere in state law to mean any project “involving the issuance of a permit for construction or reconstruction but not a permit to operate.” In coordination with the City Attorney’s Office, staff has interpreted AB 2097 to apply to any activity that requires a building permit. This includes new commercial office buildings and a change or expansion in land use to a more (parking) intensive use, such as a conversion from retail to restaurant. It also has implications for the City’s downtown in-lieu parking program, transferred development rights, coordinated area plans and housing. California Avenue For many years land uses in the commercial areas of California Avenue near the rail station have remained relatively static and there has been little new building construction activity. Local requirements for retail preservation, small parcel sizes, and the need for on-site parking for new or more intense land uses limit or preclude redevelopment. With AB 2097, the constraint to redevelopment, required parking, has been eliminated. Accordingly, staff anticipates California Avenue may experience increased development pressure for new building construction. At a minimum, staff expects an increase in requests to change retail to restaurant use, or other more intensive land uses both on California Avenue and nearby commercial streets. California Avenue’s proximity to the Caltrain station may encourage new housing or mixed-use development. Providing on-site parking requires a significant amount of space to meet parking stall and drive aisle dimensions. Smaller lot sizes in this area make on-site parking cost prohibitive due to ramping requirements that leave little area available for parking spaces and increase construction costs. For this reason, the adopted Housing Element does not identify a significant amount of housing inventory sites in this area. However, with AB 2097, new mixed- use housing with ground floor commercial and multi-family units at upper levels may be seen as more feasible by some property owners or developers. Item 43 Item 43 Staff Report Item 43: Staff Report Pg. 2 Packet Pg. 766 of 911 1 6 7 8 University Avenue and In Lieu Parking University Avenue has experienced some redevelopment in recent years. Downtown benefits from a blended parking rate where each land use is assumed to generate a demand for parking of one space for each 250 square feet of floor area; this is not the case for any other part of the City. The blended rate was derived from a parking assessment that was prepared and implemented several decades ago. Accordingly, changing from one lower intensity land use to a higher intensity land use is not problematic as long as it is a permitted or conditionally permitted land use. Moreover, Downtown has an in-lieu parking program. When a developer cannot feasibly construct new required parking on-site, the developer could participate in the in-lieu parking program and pay a fee to the City in-lieu of having to construct parking on-site. With AB 2097, a developer would not need to participate in the in-lieu parking program and staff anticipate little to no further contributions to that fund. The City is exploring using the remaining funds in that program to support the establishment of net new Downtown parking spaces. A recent request for information has received responses for a potential affordable housing and public parking partnership; staff is expected to share these results with Council in the summer. There is currently a temporary ban that prohibits participation in the in-lieu parking program for office uses above the ground floor. This ban is set to expire on August 1, 2025. There are about 30 properties between Lytton and Forest Avenues adjacent to or near Webster Street that extend beyond the half-mile AB 2097 radius. Staff recommends the in-lieu parking ban be allowed to expire without further action. Moreover, when the City updates its zoning code (currently not planned or resourced), staff will consider recommendations on how to address the in-lieu parking program for future use or discontinuance. Transferred Development Rights The municipal code includes provisions that allow property owners in the Downtown and South of Forest Avenue Coordinated Plan Area to receive approval to transfer development potential from one property and apply it to another qualifying property. This typically occurs when an owner voluntarily upgrades seismically vulnerable buildings to a safer standard or preserves an historic resource, or both. The program initially allowed transferred development rights, or TDRs, to be exempt from providing required parking as an incentive to encourage safer buildings and preservation efforts. Concern about the impact of new commercial floor area, particularly office, prompted a change to that policy, and subsequent, newly created TDRs were required to be parked at one space per 250 square feet of floor area. With a variety of local policy changes related to commercial land uses generally and office space specifically, combined with the limitation to participate in the in-lieu parking program above the ground floor, the result has been very few new commercial projects being proposed downtown. With AB 2097, TDRs may again become an important transactional consideration for new Downtown development – as it essentially returns TDRs to a parking-exempt status for those properties included within the mapped radius. Item 43 Item 43 Staff Report Item 43: Staff Report Pg. 3 Packet Pg. 767 of 911 1 6 7 8 If the City Council was interested in revising TDR-related policies, staff would need direction at an agendized public meeting to receive that direction. Residential Preferential Parking Programs Residential parking programs are intended to limit commercial intrusions into nearby residential areas by limiting parking access without a permit or through established time- limited parking restrictions. All but one (Crescent Park) of the City’s residential parking program boundaries are included wholly or partially within the AB 2097 radius. No changes are required to the residential parking programs at this time. If future parking impacts arise, the municipal code includes a provision for residents adjacent to a residential parking area to petition for inclusion. Single Family Zoning (R1, R2, RMD) AB 2097 not only applies to multi-family housing or mixed-use or commercial developments, but also single family residences too. Parking for accessory dwelling units is already exempt by state law. AB 2097 would allow a residential property owner located within one-half mile of a major transit stop to apply for a building permit to convert an existing garage area into habitable space, eliminating on-site parking. While this can already occur with a conversion to an ADU or junior ADU, this state law would allow the conversion without potentially costly upgrades for plumbing and cooking facilities. North Ventura Coordinated Area Plan As staff continues its work on the NVCAP, one of the recommendations embedded in that plan is to remove any parking requirements (loading zone and bicycle parking still apply). The half mile radius from the Caltrain station effectively covers half of the NVCAP area. As the Planning and Transportation Commission considers the final draft concept plans, discussion on whether to extend the parking exemption to the rest of the NVCAP area, as proposed by staff, will be evaluated before sending a recommendation to Council. Portions of the South of Forest Avenue coordinated area plan near Downtown are also included in the AB 2097 parking-exempt radius. Circumstances that Allow Jurisdictions to Require On-Site Parking Pursuant to AB 2097 As noted earlier, AB 2097 does not exempt development projects from providing electric vehicle supply equipment and accessible parking spaces. Because these spaces are typically required as a percentage of on-site parking, some jurisdictions are implementing AB 2097 to only require them when a developer voluntarily provides parking. This is also the approach endorsed by staff for Palo Alto. It is also possible, however, to interpret the bill to require the number of electric vehicle supply equipment and accessible parking spaces that would have been provided if AB 2097 did not exist. This latter approach would be difficult to implement Item 43 Item 43 Staff Report Item 43: Staff Report Pg. 4 Packet Pg. 768 of 911 1 6 7 8 because it is not clear how many spaces would actually have been provided on-site in the absence of AB 2097 when parking reductions or in-lieu fees may be available. In addition, State law provides that a local jurisdiction could impose or enforce minimum parking requirements on a project within a half mile radius of a major transit stop if the agency makes written findings within 30 days of receiving a completed application that not imposing or enforcing the parking requirements on the development would have a substantially negative impact, supported by a preponderance of the evidence in the record on any of the following: (1) The jurisdiction’s ability to meet its share of the regional housing need in accordance with Section 65584 for low- and very low income households. (2) The jurisdiction’s ability to meet any special housing needs for the elderly or persons with disabilities identified in the analysis required pursuant to paragraph (7) of subdivision (a) of Section 65583. (3) Existing residential or commercial parking within one-half mile of the housing development project.2 [Emphasis added] The statute goes on to stipulate that the provision above does not apply to housing development projects that satisfy any of the following: (1) The development dedicates a minimum of 20 percent of the total number of housing units to very low, low-, or moderate-income households, students, the elderly, or persons with disabilities. (2) The development contains fewer than 20 housing units. (3) The development is subject to parking reductions based on the provisions of any other applicable law. Based on the foregoing restrictions and the limited time to conduct the analysis (30 days from the filing of a complete application), staff does not envision being able to make required findings that would compel a project to meet minimum on-site parking requirements. Such analysis would need to occur in advance of the City receiving a qualifying application and then be applied to the project. Unless the City Council provides this direction at a noticed public hearing, this advanced analysis is not envisioned being conducted and use of this provision is not expected to be applied to qualifying projects in Palo Alto. POLICY IMPLICATIONS This report details the implications of AB 2097 to Palo Alto. Very few development proposals have taken advantage of this provision to date but in conversations with developers there is 2 A housing development is defined as a project consisting of residential units only; a mixed-use development consisting of residential and nonresidential uses with at least two-thirds of the square footage designated for residential use; or, transitional or supportive housing. An affordability requirement is not included in the definition. Item 43 Item 43 Staff Report Item 43: Staff Report Pg. 5 Packet Pg. 769 of 911 1 6 7 8 interest. As it has only been six months since implementation, staff anticipates more project applicants will seek to take advantage of this state law. This informational report is intended to highlight the related land use policy implications of AB 2097. It is anticipated that California Avenue in particular will likely experience changes due to this policy. At a minimum, more or expanded restaurant land uses may occupy tenant spaces when they become available. Commercial recreation uses may also seek to locate on nearby streets. Redevelopment with new housing or mixed-use projects is anticipated and would not likely include any significant on-site parking. Downtown is another area where existing land use policies may need to be revisited. This report highlights considerations related to transferred development rights and the City’s in-lieu parking program. If significant redevelopment occurs utilizing the provisions of state law, some residential neighbors may seek to be included in existing residential parking programs. FISCAL/RESOURCE IMPACT The recommendation for this informational report has no fiscal or resource impacts. Implementation of AB 2097 is expected to curtail future contributions to the City’s in lieu parking fund and may impact the production of new parking resources Downtown. STAKEHOLDER ENGAGEMENT Staff is posting the attached map online and sharing it with developers when requested. A discussion regarding state law is anticipated to be scheduled for the Planning and Transportation Commission in coming months. Staff does not anticipate advancing a standalone ordinance to codify this state law but may incorporate it into future ordinances if applicable. ENVIRONMENTAL REVIEW No California Environmental Quality Act review is required for an informational report. ATTACHMENTS Attachment A: Map of Major Transit Stops per AB 2097 APPROVED BY: Jonathan Lait, Planning and Development Services Director Item 43 Item 43 Staff Report Item 43: Staff Report Pg. 6 Packet Pg. 770 of 911 8 6 8 8 61 7 46 8 9 2 7 5 99 87 55 95 25 33 40 91 15 10 67 99 75 85 89 12 30 50 11 42 22 38 40 2011 3010 2927 86 78 7066 58 87 67 59 55 35 15 90 71318586 74 62 50 14 26 38 31 40 1131 11 65 60 38 28 32 49 73 30 21 40 40 70 21 3010 31 38 23 31 35 43 5155 65 80 98 87 81 41 49 44 63 75 51 92 60 20 1612 74 30 40 50 6771 79 1511 55 90 50 25 50 30 26 181614 41 20 21 30 80 41 81 20 11 41 41 80 10 3111 20 60 20 70686462 84 76 78 82 81 79 716559 58 60 51 47 55 48 50 52 54 45 40 75 70 18 1424 72 66 86 74 80 8845 37 27 23 21 15 91 36 40 44 46 12 25 85 27 39 47 59 11 14 10 82 74 62 91 71 63 54 50 85 75 6961 90 10 41 33 31 17 11 93 87 38 42 20 1626 30 34 31 41 51 61 51 97 25 37 61 86 96 2220 62 54 36 24 12 98 1418 26 34 50 70 70 63 35 27 95 19 22 15 12 916 375 450 300 467 880 257 401 795 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Alma S t r e e t Middlef i e l d R o a d El Ca m i n o R e a l Orego n E x p r e s s w a y Page M i l l R o a d Charlest o n R o a d Unive r s i t y A v e n u e San A n t o n i o R o a d Foothi l l E x p r e s s w a y Lytto n A v e n u e Hami l t o n A v e n u e San d H i l l R o a d Hill v i e w A v e n u e Embarcadero Road Aras t r a d e r o R o a d San A n t o n i o A v e n u e Arboretum R o a d Quarr y R o a d West C h a r l e s t o n R o a d Palo Alto Avenue Foothill Expressway San A n t o n i o A v e n u e Orego n E x p r e s s w a y West C h a r l e s t o n R o a d Foothill Expressway Aras t r a d e r o R o a d Sa n A n t o n i o R o a d San A n t o n i o R o a d Page M i l l R o a d Arboretum R o a d Qua r r y R o a d Cowper S t r e e t Waverle y S t r e e t Louis R o a d Ross Ro a d Webster S t r e e t Bryant S t r e e t Channing Avenue East B a y s h o r e R o a d Newell R o a d Lin c o l n A v e n u e Seale A v e n u e South C o u r t High St r e e t Park Bo u l e v a r d East Meadow Drive Stanfo r d A v e n u e Colorado A v e n u e West B a y s h o r e R o a d Hanover S t r e e t Miranda A v e n u e Fabian W a y Hamilton Av e n u e Home r A v e n u e Greer R o a d Ramona S t r e e t Loma Ve r d e A v e n u e Evere t t A v e n u e Church i l l A v e n u e Edgewood Drive Matad e r o A v e n u e Lowe l l A v e n u e Tenny s o n A v e n u e Los R o b l e s A v e n u e Califo r n i a A v e n u e Barro n A v e n u e Kingsl e y A v e n u e Mayb e l l A v e n u e Hanse n W a y Wilkie W a y Coleri d g e A v e n u e Byron S t r e e t Ely Plac e Cen t e r D r i v e Orego n A v e n u e Amari l l o A v e n u e Marion A v e n u e North C a l i f o r n i a A v e n u e Emerso n S t r e e t Pitman Aven u e Lagu n a A v e n u e Grove A v e n u e Ferne A v e n u e Nel s o n D r i v e Porter D r i v e Castille j a A v e n u e Quar r y R o a d Chim a l u s D r i v e Colle g e A v e n u e Amherst S t r e e t Seneca S t r e e t Lane 66 Bowdoin S t r e e t Stockto n P l a c e Harker Avenue Ames A v e n u e El Dor a d o A v e n u e La Par a A v e n u e Grant A v e n u e Birch Str e e t Hawth o r n e A v e n u e Embar c a d e r o R o a d Har r i e t S t r e e t Coyote Hill Road Clara D r i v e Columbia S t r e e t Geo r g i a A v e n u e Rhod e s D r i v e Camb r i d g e A v e n u e Olive A v e n u e El Vera n o A v e n u e La Donn a S t r e e t El Camin o W a y Parkinson Avenue Kipling S t r e e t Hea t h e r L a n e Kellog g A v e n u e Palo Alto Avenue Alger Driv e Floral e s D r i v e Oxfor d A v e n u e Forest Avenue Hale Str e e t Monroe D r i v e Greenwood Avenue Cornell S t r e e t Boy c e A v e n u e Sherm a n A v e n u e Oberlin St r e e t Amaranta A v e n u e Na t h a n W a y Donald Drive Urban L a n e Harvard S t r e e t Iri s W a y Embar c a d e r o W a y Hopkins Avenue Wilton A v e n u e Dana Avenu e Fife Avenue Fulton S t r e e t Sutherlan d D r i v e Lamb e r t A v e n u e Josina A v e n u e Marshall D r i v e (non e ) Williams S t r e e t Davi d A v e n u e Gen g R o a d Orme Str e e t El Car m e l o A v e n u e Mon t r o s e A v e n u e Parksi d e D r i v e Walnut Drive Princeton S t r e e t Maddux D r i v e Sherid a n A v e n u e Curtne r A v e n u e Hill v i e w A v e n u e Jacar a n d a L a n e Wil d w o o d L a n e Elsino r e D r i v e Morris D r i v e Mariposa A v e n u e Sta n l e y W a y Ferna n d o A v e n u e Miller Av e n u e Leland A v e n u e Moren o A v e n u e Barbara D r i v e Creeks i d e D r i v e Sutter A v e n u e Marga r i t a A v e n u e Edlee A v e n u e Ventu r a A v e n u e Arbutus A v e n u e Welch Road Sh o p p i n g C e n t e r W a y Vineyard Lane Walter Hays Drive Jackso n D r i v e Willmar Drive Kennet h D r i v e Carolin a L a n e Martin Avenue Patr i c i a L a n e Whitcle m D r i v e Cerez a D r i v e Paul A v e n u e Towle W a y Guinda S t r e e t Tennes s e e L a n e Ilima W a y Orinda St r e e t Santa An a S t r e e t Lane 2 1 Encin a G r a n d e D r i v e Briarwo o d W a y Com m e r c i a l S t r e e t Bruce D r i v e Faber P l a c e Los P a l o s A v e n u e Ruthve n A v e n u e Loi s L a n e Miramont e A v e n u e Gailen Aven u e West M e a d o w D r i v e Laguna W a y Whitsell S t r e e t Janice W a y Northa m p t o n D r i v e South a m p t o n D r i v e Scripps A v e n u e Pomona Av e n u e Bib b i t s D r i v e San A n t o n i o R o a d Warren W a y Madron o A v e n u e Yale Stre e t Mayvie w A v e n u e Evergre e n D r i v e Ivy Lane Rorke W a y Stellin g D r i v e El Centro S t r e e t Trans p o r t S t r e e t Ashton A v e n u e New M a y f i e l d L a n e Militar y W a y McKe l l a r L a n e Ced a r S t r e e t Jeffer s o n D r i v e Dake Av e n u e Santa R i t a A v e n u e Add i s o n A v e n u e Saint C l a i r e D r i v e Rincon a d a A v e n u e Second S t r e e t Encina Avenue Seminole W a y Aleste r A v e n u e Silva A v e n u e Kelly Way Indian D r i v e Escobi t a A v e n u e Glenb r o o k D r i v e Garlan d D r i v e Hubbartt Drive Lane 39 Christ i n e D r i v e Kings Lane Bryson A v e n u e Talism a n D r i v e Campana D r i v e Fabian Street Murdoch D r i v e Deodar S t r e e t Terman D r i v e Nevada A v e n u e Madis o n W a y Sequoia Av e n u e Ind u s t r i a l A v e n u e Colon i a l L a n e East M e a d o w C i r c l e Richar d s o n C o u r t Lane 3 3 James R o a dVista A v e n u e Lupine A v e n u e Hilbar Lane Campe s i n o A v e n u e Portola A v e n u e Park A v e n u e Poe St r e e t La Calle Suzan n e D r i v e Chestn u t A v e n u e Cypress L a n e ( P r i v a t e ) Robl e R i d g e ( P r i v a t e ) Mumford P l a c e Kenda l l A v e n u e Sycamor e D r i v e Thain Way Vernon T e r r a c e Celia D r i v e Redw o o d C i r c l e Washin g t o n A v e n u e Denni s D r i v e Roosevelt Circle La Se l v a D r i v e Solana Dr i v e Manzana L a n e Orte g a C o u r t Ash Stre e t De Soto Drive Rambow D r i v e Portag e A v e n u e Bryan t C o u r t Elwell C o u r t Ruthel m a A v e n u e Man u e l a A v e n u e Torrey a C o u r t Parad i s e W a y Cork Oa k W a y Magnolia D r i v e Carlson Circle Clemo Av e n u e Coastla n d D r i v e Wellsb u r y W a y Stern A v e n u e Mitchell L a n e Macla n e Fairm e d e A v e n u e Fallen L e a f S t r e e t Evere t t C o u r t Pepp e r A v e n u e Community Lane Verdosa D r i v e Thomas D r i v e Abel Aven u e Wells Avenue Fieldin g D r i v e Alma S t r e e t Hut c h i n s o n A v e n u e Map l e w o o d A v e n u e Tulip Lane Lane 7 E a s t Ross C o u r t Acaci a A v e n u e Mack a y D r i v e Ilima C o u r t Tasso S t r e e t Stone L a n e Lane B E a s t Pin e S t r e e t Coulombe D r i v e Lytton A v e n u e Lane D E a s t Lane 8 W e s t Lane 7 W e s t Mark Twa i n S t r e e t Lane A W e s t El Cerrito R o a d Whitma n C o u r t Footh i l l E x p r e s s w a y Lane B W e s t Orch a r d L a n e Laura Lane Lane D W e s t Dinah's C o u r t Gaspar C o u r t Prim r o s e W a y Lane 15 E a s t Lane 59 E a s t Tanland D r i v e Irven C o u r t Agnes W a y May Cou r t Baker Aven u e Morton St r e e t Murray W a y Silva C o u r t Driftwo o d D r i v e Melvil l e A v e n u e Pear L a n e Manza n i t a A v e n u e Corin a W a y Greenm e a d o w W a y Phillips Roa d Lane 3 0 Saint M i c h a e l D r i v e Blair C o u r t Cesano C o u r t Gilman S t r e e t Pal o m a D r i v e ( P r i v a t e ) Wellesley S t r e e t Thornwo o d D r i v e Oregon E x p r e s s w a y Cerrito W a y Tioga C o u r t Holly Oa k D r i v e El Cajon W a y Wright P l a c e Pistach e P l a c e Duncan P l a c e Elb r i d g e W a y Sandra P l a c e San Ju d e A v e n u e Miller C o u r t McG r e g o r W a y Peral La n e Downin g L a n e Florence S t r e e t Urba n L a n e ( P r i v a t e ) Ensign W a y Shasta D r i v e Ben Lo m o n d D r i v e Oak H i l l A v e n u e Starr K i n g C i r c l e Dartmou t h S t r e e t Diablo C o u r t Wils o n S t r e e t Bret Ha r t e S t r e e t Ers t w i l d C o u r t Cass Way Carmel D r i v e Arcadia Place Lane 6 E a s t Burnham W a y Villa Vist a ( P r i v a t e ) Sai n t F r a n c i s D r i v e Ramos Wa y ( P r i v a t e ) Cardin a l W a y Hemloc k C o u r t Layne C o u r t Timlo t t L a n e Drake W a y Flower s L a n e Lindero D r i v e Simkin s C o u r t Winterg r e e n W a y Shaun a L a n e Lane 11 W e s t Lane 5 E a s t Dixon P l a c e Maybell Wa y Corpora t i o n W a y Sedro La n e Altaire Walk Midtown C o u r t Sierra C o u r t Portal P l a c e non e Avalon C o u r t Lane 12 W e s t Cowper C o u r t Chabot T e r r a c e Ashby Drive Lake Ave n u e El Capitan P l a c e Santa C a t a l i n a S t r e e t Ricke y s W a y ( P r i v a t e ) Keats C o u r t Maureen A v e n u e Talisma n C o u r t Scripp s C o u r t La Mata Way Aspen W a y Ponce D r i v e Mimosa L a n e San A n t o n i o A v e n u e Clifton C o u r t Quail Drive (Private) Price Co u r t Page M i l l R o a d Staunton C o u r t Ventura C o u r t Scott Str e e t Arrow h e a d W a y Higgins P l a c e Aztec W a y Arbol Dr i v e Ellswo r t h P l a c e ( P r i v a t e ) Plum Lane Lawrenc e L a n e Federation Way Sha r o n C o u r t Ryan L a n e ( P r i v a t e ) Lane 2 0 E a s t Nita Av e n u e Junip e r L a n e ( P r i v a t e ) Randers C o u r t Mackall W a y Centenn i a l W a l k Paulse n L a n e Manches t e r C o u r t Lane 2 0 W e s t Rosewoo d D r i v e Sweet O l i v e W a y Moffett C i r c l e Bautis t a C o u r t Magn o l i a D r i v e S o u t h Otterson C o u r t Cherry Oak s P l a c e Ynigo Way Adobe Place Metro C i r c l e Carlso n C o u r t London P l a n e W a y Anton C o u r t Tahoe L a n e Toyon P l a c e Calcat e r r a P l a c e San Ca r l o s C o u r t ( P r i v a t e ) Pratt L a n e ( P r i v a t e ) Amhe r s t W a y Allen C o u r t Lundy L a n e Louisa Cou r t Chri s t o p h e r C o u r t Watson Court Van Au k e n C i r c l e Bellview D r i v e Alta Mesa A v e n u e East G r e e n w i c h P l a c e Univ e r s i t y C i r c l e Jordan Place Kent Place Villa Ver a ( P r i v a t e ) Ashton C o u r t Matad e r o C o u r t Saint M i c h a e l C o u r t Cha u c e r S t r e e t Pena Cour t Noble S t r e e t ( P r i v a t e ) Alma Vi l l a g e C i r c l e ( P r i v a t e ) Tippawing o S t r e e t Colum b i a P l a c e Tevis Place Palo Ro a d Colum b i a C o u r t Nelson Court Deer Creek Road King Arthur's Court Towle P l a c e Ames C o u r t Los P a l o s P l a c e Rincon Circle La Je n n i f e r W a y Islan d D r i v e Daven p o r t W a y Feather Lane (Private) Leghorn Street Newell Place Duluth C i r c l e Piers C o u r t Gary C o u r t Regent Place Gaile n C o u r t Genevie v e C o u r t Klamath Lane (Private) Alannah Co u r t Sevyson C o u r t Kir b y P l a c e Drisco l l P l a c e ( P r i v a t e ) Elmdale P l a c e Julie Cou r t Fo r e s t C o u r t Green Ma n o r Char l e s t o n C o u r t Camino Court Magno l i a D r i v e N o r t h Lane 56 ( P r i v a t e ) El C a m i n o R e a l Frandon Co u r t Carlitos C o u r t Wilkie C o u r t Jacob s C o u r t ( P r i v a t e ) Cashel S t r e e t ( P r i v a t e ) Victori a P l a c e Suzanne C o u r t Nogal La n e Alder L a n e ( P r i v a t e ) Boronda L a n e Somerset Place Walli s C o u r t Loma V e r d e P l a c e Barclay C o u r t Newbe r r y C o u r t Lagun a C o u r t Lagun a O a k s P l a c e Old T r a c e R o a d Elsinore C o u r t David C o u r t Fairfie l d C o u r t Darling t o n C o u r t Fielding C o u r t Marion P l a c e Whitclem P l a c e San d a l w o o d C o u r t Ferne C o u r t Hetting e r L a n e ( P r i v a t e ) Southw o o d D r i v e Amhe r s t C o u r t Emma C o u r t Ham i l t o n C o u r t Amar a n t a C o u r t Alma Vil l a g e L a n e ( P r i v a t e ) Martin s e n C o u r t Villa R e a l ( P r i v a t e ) Waverle y O a k s ( P r i v a t e ) Arastradero R o a d Bowdoin C o u r t Bowd o i n P l a c e Wellsbu r y C o u r t Whitcle m W a y Cros b y P l a c e Madeline C o u r t ( P r i v a t e ) Rickeys L a n e ( P r i v a t e ) West G r e e n w i c h P l a c e Wes t C r e s c e n t D r i v e Los Palos C i r c l e Lorabelle C o u r t George Hoo d L a n e Timlott C o u r t Grove C o u r t Morag a C o u r t Stellin g C o u r t Drisco l l C o u r t Whitclem C o u r t O'Brine Lane (P r i v a t e ) Interdale W a y ( P r i v a t e ) Juniper W a y ( P r i v a t e ) Byron S t r e e t Foothill E x p r e s s w a y Addiso n A v e n u e Colorado A v e n u e Foothill Expre s s w a y Sedro La n e Lane 15 E a s t Community Lane Washin g t o n A v e n u e San A n t o n i o R o a d (none) Kipling S t r e e t Tasso S t r e e t Fulton S t r e e t Emerso n S t r e e t Lytton A v e n u e Quar r y R o a d Saint Francis Drive Unive r s i t y C i r c l e Thomas D r i v e Fulton S t r e e t High S t r e e t Colleg e A v e n u e Ash Stree t Palo Alt o A v e n u e Hillview Avenue Moreno A v e n u e Birch Str e e t Lytton A v e n u e Hawth o r n e A v e n u e Santa R i t a A v e n u e La Selva D r i v e Ramona S t r e e t Pear L a n e Byron S t r e e t Oxfor d A v e n u e South C o u r t Alma S t r e e t Tasso St r e e t Santa R i t a A v e n u e Fulton S t r e e t Kenda l l A v e n u e Foothill Expresswa y Hamilton Avenue Miran d a A v e n u e Webste r S t r e e t Moreno A v e n u e Emerson S t r e e t Oregon E x p r e s s w a y Bryant S t r e e t Ramona S t r e e t Oregon Expr e s s w a y Tasso Str e e t Dartmout h S t r e e t Orego n A v e n u e Wilkie W a y Maclan e Nevad a A v e n u e San Ju d e A v e n u e West B a y s h o r e R o a d Byron S t r e e t Georg i a A v e n u e Sutter A v e n u e Tasso S t r e e t She r i d a n A v e n u e Kingsle y A v e n u e Byron S t r e e t Sycamor e D r i v e Palo Alto Avenue Addiso n A v e n u e Emerso n S t r e e t Orego n A v e n u e Kenda l l A v e n u e Nita Aven u e Dartmout h S t r e e t Tasso St r e e t Guinda S t r e e t San A n t o n i o R o a d South C o u r t Oreg o n E x p r e s s w a y Park Boul e v a r d Ramo n a S t r e e t Ash S t r e e t Foothil l E x p r e s s w a y Birch Stre e t Emerson S t r e e t Ore g o n E x p r e s s w a y Melvill e A v e n u e Oregon A v e n u e Wellesley S t r e e t Wellesley S t r e e t North C a l i f o r n i a A v e n u e Kipling S t r e e t Ash Stree t Matade r o A v e n u e Ramona S t r e e t Kipling S t r e e t Dana Avenue Alm a S t r e e t Embarcadero R o a d Kellog g A v e n u e Foothill Expressway High Str e e t Park Bo u l e v a r d Byron S t r e e t Ames A v e n u e Stanford University Mountain View Los Altos Menlo Park East Palo Alto Los Altos Hills This map is a product of City of Palo Alto GIS [ 0 0.2 0.40.1 Miles City of Palo Alto AB 2097 - Half Mile from Major Transit Stops AB 2097 Major Transit StopsAB 2097 Half-Mile AreaSchoolsParksRailroadCity Limit Rev. January 26, 2023 Item 43 Attachment A - Map of Major Transit Stops per AB 2097 Item 43: Staff Report Pg. 7 Packet Pg. 771 of 911 2 1 2 7 City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Public Works Meeting Date: June 19, 2023 Report #:2305-1396 TITLE Update on the Capital Improvement Program and Long Range Facility Planning Update for the Regional Water Quality Control Plant RECOMMENDATION This is an informational report and no Council action is required. EXECUTIVE SUMMARY The RWQCP is currently implementing projects listed in the 2012 Long Range Facility Plan; there are currently over eight projects that are in various design or construction phases with an estimated budget of over $400 million. The Long Range Facility Plan needs to be updated to help direct the future upgrades at the RWQCP and to assist with answering questions that have been raised by City Council. The updated Long Range Facilities Plan will include an update to the Biosolids Facility Plan in response to Council’s Measure E discussion, as well as an evaluation of cost allocation methodologies for debt service projects. In addition, staff is actively pursuing the opportunity to acquire property adjacent to the RWQCP to assist with future site planning and to future proof the site for new regulations. BACKGROUND The RWQCP, originally constructed in 1934, has undergone several expansions and upgrades. The RWQCP is now an advanced tertiary treatment facility that treats, recycles, and discharges wastewater for Palo Alto, Mountain View, Los Altos, Los Altos Hills, East Palo Alto Sanitary District, and Stanford University. The RWQCP has a capital improvement program (CIP) to re- invest in or replace aging infrastructure. The Wastewater Treatment Fund infrastructure is owned by Palo Alto and supported by its partner agencies. The Plant’s core infrastructure was built in 1972 with tanks, pumps, large pipes, industrial buildings, acquisition of additional land, and complex mechanical and electrical systems. The Plant has had ongoing capital improvements from major works to minor projects to protect the environment and public health. Capital improvements are driven by new regulations and guided by Long Range Facilities Plans in 1965 and in 2012. On minor capital work, staff has managed an ongoing $1.9 to $3.7 million annual CIP reinvestment in aging infrastructure funded on a recurring basis through the partner agreements; the recurring capital budget has been increased by an annual inflation index first Item 44 Item 44 Staff Report Item 44: Staff Report Pg. 1 Packet Pg. 772 of 911 2 1 2 7 approved by partner agencies in 1998. Key projects are listed in Table 1 with major debt financed/grant funded projects in 1972, 1980, 1984, 1988, 1999, 2009, 2010, 2019, and 2023. Debt service for larger projects financed through loans or bonds is provided through amendments to the partner agreements. Typical useful life of Plant infrastructure is 30 years for mechanical and electrical gear, with portions of the Plant still at or beyond its useful life. The capital program is a critical commitment to replace and improve aging systems for reliable wastewater treatment. Table 1: Completed Capital Work 1972 – 2023 Project Funding Expense (million $) Subtotal $178 DISCUSSSION Capital Improvement Updates The RWQCP’s 2012 Long Range Facilities Plan1 (LRFP) identifies projects that are needed to rebuild and revitalize the facility, with recommended projects expected to cost between $315 to $392 million (2015 dollars). The LRFP was accepted by the City Council on July 2, 2012 (SR# 29142), and staff have been working on implementing the CIP program. Implementation of the LRFP is 1 Carollo Engineers. Long Range Facilities Plan for the Regional Water Quality Control Plant. 2012. https://www.cityofpaloalto.org/files/assets/public/public-works/water-quality-control-plant/lrfp-final-report-08- 2012.pdf. Web. 5/1/2023 2 Palo Alto City Council, July 2, 2012; Agenda Item #7; SR# 2914, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2012/id-2914.pdf Item 44 Item 44 Staff Report Item 44: Staff Report Pg. 2 Packet Pg. 773 of 911 2 1 2 7 managed by a CIP team of staff engineers, support staff, and a program manager consultant (Woodard & Curran) (see SR# 116123 ). Table 2 provides a summary of projects currently in the planning, design, or construction phases. Table 2: Current Capital Work In-Progress Project Status Expected Funding Expense (million $) Total $406 Long Range Facilities Plan (LRFP) Update An LRFP provides guidance on capital facility upgrades and includes load and flow projections, analysis of key issues related to capital improvements, project recommendations, priorities, schedules, preliminary cost estimates, and other long range advanced planning such as a 3 Palo Alto City Council, December 19, 2022; Agenda Item #9 (SR# 14887) & Agenda Item #15 (SR# 14685), https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20221219/20221219pccsm-amendedtime.pdf Item 44 Item 44 Staff Report Item 44: Staff Report Pg. 3 Packet Pg. 774 of 911 2 1 2 7 preliminary facilities plan for key unit processes that consider spatial needs and opportunities to meet treatment, operations, staff, and maintenance near- and long-term needs. Staff will issue a Request for Proposal and return to Council for approval of a professional services contract to perform the LRFP Update. The work is estimated to start in late 2023 and require 30 months for completion. The scope of work includes (a) work space planning advanced to a 10% design level, (b) an update to the 2014 Biosolids Facilities Plan4 and 2019 Biosolids Facilities Plan Update5 with expected completion in 2024, (c) an evaluation of regulatory and emerging contaminant issues as they relate to capital infrastructure, (d) development of a recommended capital program and update of capital costs and scopes from the 2012 LRFP, (e) a cost-of-service analysis, and (f) a capital cost sharing methodology evaluation and recommendation for debt-serviced projects. The 2012 LRFP’s key unfinished projects are listed below. These projects will be re-evaluated and re-prioritized based on the asset age and condition assessment, updated regulatory and emerging contaminant issues, and other appropriate factors. Their associated cost will be re- estimated. (a) Dual Media Filter Facility overhaul; (b) implement Phase 2 of the Joint Intercepting Sewer Rehabilitation project by relining the remaining 74% (i.e., 6,636 of the 8,964 linear feet) of the upstream sections of the 60-inch and 72-inch diameter joint intercepting sewer; (c) evaluation of large diameter plant piping and potential rehabilitation or replacement; (d) recycled water filters, storage, and distribution pump station overhaul; and (e) potential ozonation or other advanced facilities for advanced treatment of emerging pollutants of concerns. The site planning, the Biosolids Facilities Plan Update, and the development of the recommended capital improvement program tasks will all include site and workspace planning components to ensure that when future uses and needs are considered, the Plant has the available land to meet near- and long-term treatment, operations, staff, and maintenance requirements. The expense and impacts needed for future construction staging, laydown, and facility sequencing on a constrained site will be considered in a site planning analysis. In addition to considering the demolition, rehabilitation, and otherwise repurposing and optimization of existing facilities and spaces, the site planning components will also evaluate the need for real estate beyond the existing fence line. Staff is actively evaluating acquisition of adjacent real estate as a strategy to address the space needed to accommodate improvement sequencing and take advantage of current real estate market conditions. The timing of acquisition could involve some risk regarding 4 CH2MHill. Palo Alto Regional Water Quality Control Plant Biosolids Facility Plan. 2014. https://www.cityofpaloalto.org/files/assets/public/public-works/environmental-compliance/water-quality/2010- rwqcp-master-planning/parwqcp-biosolids-facility-plan-final.pdf. Web. 5/1/2023. 5 Woodard & Curran. Palo Alto Regional Water Quality Control Plant Biosolids Facility Plan Update. 2019. https://www.cityofpaloalto.org/files/assets/public/public-works/water-quality-control-plant/sludge-dewatering- building/finaldraft_palo_alto_bfp_update.pdf?t=47012.05. Web. 5/1/23. Item 44 Item 44 Staff Report Item 44: Staff Report Pg. 4 Packet Pg. 775 of 911 2 1 2 7 potentially acquiring land in advance of completing the LRFP update; however, the timing of opportunities to acquire land from a willing seller adjacent to the RWQCP may justify immediate consideration. Opportunities beyond the Plant’s existing property boundaries include acquisition of property contiguous to the RWQCP as well as regional partnerships. Additionally, the Biosolids Facilities Plan update will evaluate the potential for environmental technology uses on part or all of the 10-acre site (“Measure E site”) adjacent to the Plant, consistent with Measure E, and per Council direction. At the April 3, 2023 Council meeting, staff was directed to report back to Council about scope and timeline on environmental technology and facilities on a portion of the Measure E site and/or other lands. The LRFP Update will include a biosolids facilities plan update to answer these questions (e.g., an alternative evaluation of pyrolysis, anaerobic digestion, offsite treatment, etc.), including locating the biosolids technology and facilities on the plant site, the Measure E site, and/or offsite. Staff in the Community Services and Public Works Departments are coordinating on a proposal to evaluate a minimum buffer size to support a wildlife corridor connecting Renzel Marsh to the Baylands Harbor marsh through the Measure E site. The LRFP Update will include a cost-of-service analysis, reviewing actual cost data and its relation to flow and wastewater pollutant load data (specifically, water quality; strength; or loading characteristics). As required by the USEPA, partners like Palo Alto, Mountain View, and Los Altos began using strength components in the cost of service by agreement on January 14, 1980 with an effective start date of July 1, 1980. This approach was formalized with EPASD in 1989 and Stanford and Los Altos Hills in 1986. The cost components are set at 34% flow, 22% ammonia (NH3), 22% total suspended solids (TSS), and 22% chemical oxygen demand (COD). The allocations may be altered “based upon actual cost data derived in accordance with generally accepted accounting principles and upon agreement of all parties hereto.” The City will use the results of this task to establish the cost data per generally accepted accounting principles to potentially change the allocation of total costs to be billed on an annual basis for each of the six agencies. Staff will work with partner agencies on proposed changes and return to Council for approval of any recommended changes. The partners agreed to fixed capacity share allocations for debt financed capital infrastructure in about April 1985 as shown below. The flow allocations (in million gallons per day) and potential new load allocations (e.g., pounds per day) will be assessed in the LRFP Update. Staff will return to Council for approval of any recommended changes. Table 3: Maximum Flow Capacity Rights Expressed in Annual Average Flow Million Gallons Per Day Item 44 Item 44 Staff Report Item 44: Staff Report Pg. 5 Packet Pg. 776 of 911 2 1 2 7 Table 4: Fixed Capacity Share of Capital Assets for Debt Service Share Los Altos Mountain View East Palo Alto Sanitary District Stanford University Los Altos Hills Palo Alto Total 9.47%37.89%7.64%5.26%1.58%38.16%100% Total Wastewater Treatment Fund Forecast The RWQCP capital program requires both the recurring CIP funding as well as debt-financed instruments for larger projects. The 10-year financial forecast is shown in Figure 1 below. Significant new annual debt service (for the above listed projects) will commence at various times over the next ten years as new capital improvements are realized, resulting in debt service to operations ratios ranging from 5% in FY 2025 to 29% in FY 2031. Figure 1. RWQCP Total Estimated Expenses based on Projection and Planned CIP (Forecast Date 3/14/23) The City Council, on June 20, 2022, adopted the City’s Capital Budget (SR# 143526), which included the Wastewater Treatment Fund’s multi-year capital expenditure plan. Included in this plan were capital improvement projects consistent with the RWQCP’s LRFP. The projects include: 1) WQ-14002 New Laboratory and Environmental Services Building; 2) WQ-14003 Primary Sedimentation Tank Rehabilitation and Equipment Room Electrical Upgrades; 3) WQ-16002 Headworks Facility; 4) WQ-19000 New Outfall Line Construction; 5) WQ-19001 Secondary Treatment Upgrades; 6) WQ-19002 Plant Repair, Retrofit, and Equipment Replacement; 6 Palo Alto City Council, June 20, 2022; Agenda Item #28; SR# 14352. https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/2022/20220620/20220620pccsm-amended-final-final.pdf Item 44 Item 44 Staff Report Item 44: Staff Report Pg. 6 Packet Pg. 777 of 911 2 1 2 7 7) WQ-19003 Advanced Water Purification System; 8) WQ-22001 Horizontal Levee Pilot; and 9) WQ-24000 72-Inch Joint Intercepting Sewer Rehabilitation (Phase 1) Attachment A provides a brief summary of the status of each project. Capital Program Delivery Risks Programmatic risks impacting delivery of capital projects include technical, schedule and sequence, financial, staffing, and logistical issues. Technical risks include, for example, difficulties assessing and rehabilitating infrastructure that is in operation 24/7. Furthermore, project priorities sometimes change when systems are evaluated to be at a greater risk of failure. Cumulatively, the risks represent a significant undertaking requiring the management and support of a variety of City staff functions beyond the project team to ensure that human and financial resources are directed effectively with appropriate controls and contingencies addressed. This is an ongoing effort involving primarily Public Works, Administrative Services, Human Resources, the City Attorney’s Office, and City Manager’s Office who have monthly coordination meetings. Some projects require a greater level of coordination with internal and external stakeholders. Key capital delivery stakeholders include (a) regulators (e.g., Federal Aviation Administration, Bay Area Air Quality Management District, Regional Water Quality Control Board, US Army Corps of Engineers, etc.), (b) internal City departments (e.g. financial, legal, procurement, and planning, etc.), (c) partner agencies, and (d) RWQCP neighbors (e.g., Palo Alto Airport, landfill, Baylands Nature Preserve stewards and advocates, etc.). Financial risks and considerations to plan for include changing loan interest rates, cash flow needs and limitations to pay contractors prior to reimbursement from lenders, and the need to forecast expenses to help Palo Alto and partner agencies establish rate planning efforts. Planning for differences in costs between estimates, project budget, and bid results continue to impact the timing and financial consideration. Staff has worked to develop debt service and cashflow options for the Secondary Treatment Upgrades project (WQ-19001) and other high demands on the Wastewater Treatment Enterprise Fund cash balance which is expected to go negative at peak investment periods. Logistical issues include coordinating multiple onsite contractors. Staging and laydown areas at the RWQCP are very limited. Temporary bypass pumping operations and detailed construction sequencing at a 24/7 operation are significant challenges for designers and onsite staff that must plan a rebuild of an aging plant while continuing to safely treat and maintain existing wastewater treatment infrastructure during construction (e.g., during the five-year long construction of the Secondary Treatment Upgrades project). Item 44 Item 44 Staff Report Item 44: Staff Report Pg. 7 Packet Pg. 778 of 911 2 1 2 7 Comparison to Neighboring Agencies The $406 million (2023 dollars) RWQCP capital program highlighted herein is similar to neighboring wastewater treatment capital programs. These programs are also using USEPA WIFIA, State SRF programs, and revenue bonds for financing. Some neighboring agencies are shown below with the size of their capital programs. Table 6: Comparison Agency CIP Programs Project CIP Program (million, $) Residential Population Served Palo Alto Regional Water Quality Control Plant CIP $406 236,000 Resource Impact The Public Works Department is currently seeking funding for the projects planned in the Wastewater Treatment Fund Capital Improvement Program through four primary sources: 1. State SRF loans 2. USEPA WIFIA 3. Commercial market utility revenue bonds 4. Pay-as-you-go special financing Annual debt service payments associated with each project depend upon prevailing interest rates at the time of the loan approval and/or bond issuance, as well as the length of the repayment term. The annual debt service payments will be paid by all the Partners to the Palo Alto RWQCP and will be specified in amendments to their Agreements with Palo Alto; Palo Alto is responsible for its fixed capacity payment of 38.16% of debt financed instruments. These costs and the Palo Alto share have a direct impact on the City’s Wastewater Collection Fund forecasted rates Environmental Review This item is not a project as defined by the California Environmental Quality Act (CEQA) because the report is provided for informational purposes only with no action required by the Council. Item 44 Item 44 Staff Report Item 44: Staff Report Pg. 8 Packet Pg. 779 of 911 2 1 2 7 Individual capital improvement projects are reviewed under CEQA prior to any project approval. All capital projects are designed to comply with the City’s Sea Level Rise Policy7. Projects, and current CEQA status, include the following: Table 7: RWQCP CEQA Status Project CEQA Status ATTACHMENTS: Attachment A: Wastewater Treatment Fund CIP Update – Project Status APPROVED BY: Brad Eggleston, Director Public Works/City Engineer 7 City of Palo Alto. Sea Level Rise Adaptation Policy. 2019. https://www.cityofpaloalto.org/files/assets/public/sustainability/sea-level-rise/slr-adaptation- policy_web.pdf?t=71340.78. Web. 5/1/23. Item 44 Item 44 Staff Report Item 44: Staff Report Pg. 9 Packet Pg. 780 of 911 Attachment A Wastewater Treatment Fund CIP Update – Project Status WQ-14002 New Laboratory and Environmental Services Building The scope per the LRFP for this project was to relocate staff and equipment from existing RWQCP buildings and move them into a new Operations Center workspace for technical, lab, pretreatment, and operations staff. The project was estimated in the LRFP to cost $18M in 2015 dollars ($27M when escalated to 2026 dollars). An architect was hired in early 2019 to complete a full design for an Operations Center. However, in 2019, an early construction cost estimate for total project cost was $52 million (2026 dollars), much higher than anticipated in the LRFP. The ensuing design fee increase request from the architect and the substantially increased overall total project cost led staff to release the architect from the contract at a point where the work completed was still useful for later planning and design efforts. The need to restart efforts on Plant workspaces, while unfortunate, has enabled staff to strategize new opportunities before resoliciting for design services. The consensus strategy from staff is to have a consultant perform an advanced planning analysis and include alternative opportunities to a singular, new workspace building at the Plant, including: remodeling current operations and/or administration buildings; procurement possibilities for supplemental real estate; office lease options; and a full design for a new building including (a) a lab-only building, (b) a technical services building for lab, pretreatment, and technical staff, or (c) an operations center for lab, pretreatment, technical, and operational staff. Staff will include a workspace planning task in the upcoming Long Range Facilities Plan Update. WQ-14003 Primary Sedimentation Tank Rehabilitation & Equipment Room Electrical Upgrades The Project rehabilitates four concrete primary sedimentation tanks and their ancillary systems to extend their useful life for at least another 30 years. The scope of work includes the following for all four tanks: repair cracked and spalling concrete on the tank’s floors, walls, and covers; apply a new protective coating to the tank walls, ceilings, and covers; upgrade primary sedimentation tank area lighting with LED light fixtures; replace hatch and drainage covers on the tanks’ deck; install a flight and chain monitoring system for the primary sludge raking mechanisms; and replace and relocate aging motor control centers (i.e., electrical power distribution equipment) to a new pre-engineered building outside and adjacent to the sludge pump room. Construction is expected to be completed in December 2023. WQ-16002 Headworks Facility The new Headworks Facility will replace the existing influent junction box, and two raw sewage pump stations built in 1956 and 1972, respectively. The Headworks will consist of new preliminary treatment equipment (barscreens, grit removal, and odor control) coupled with a raw sewage lift pump station, discharging into a new pressurized pipe “force main” between the lift station and the primary sedimentation tanks influent channel. The existing primary influent channel will be repaired and recoated. The existing influent junction box and septage delivery Item 44 Attachment A - Wastewater Treatment Fund CIP Update - Project Status Item 44: Staff Report Pg. 10 Packet Pg. 781 of 911 Attachment A station will be upgraded or integrated into the new Headworks. All new equipment will be provided with new electrical power distribution, backup power, instrumentation, and controls. The project is on the list of major CIP projects outlined in the LRFP. Staff issued an RFP in April 2023 and will return to the City Council in fall 2023 for approval a professional design services contract. Staff will also apply for a state SRF loan to finance the design and construction costs of the project. WQ-19000 Outfall Line Construction The RWQCP has one 54-inch diameter outfall line to convey treated effluent from the RWQCP to the Bay, traversing the Palo Alto Airport property. The existing outfall pipe was installed in 1964. The LRFP identified the need for a new outfall due to insufficient capacity in the existing outfall due to sea level rise impacts, high level king tides, wet-weather events, and generally insufficient flow capacity in the existing pipe. A number of issues related to approvals from regulatory bodies (e.g., State Lands Commission and the Federal Aviation Administration) require significant redesign work for the outfall project. Kennedy Jenks completed design on the outfall pipeline in September 2020. All permits were obtained, except from the Federal Aviation Administration (FAA). In parallel with the Outfall Pipeline project design, Public Works Department staff had been working with regional and federal agencies on a new elevated flood protection levee, protecting low-lying areas including the airport and the RWQCP. Reconciliation of these issues requires redesign of the outfall. In addition, some project permit applications need to be re-filed. Design and re-permitting are anticipated to take an estimated two years, followed by construction. Construction of the Outfall project is estimated to be completed by December 31, 2027, with engineering services during construction scheduled to be completed by the same date. WQ-19001 Secondary Treatment Upgrades Upgrading the secondary treatment process (biological process) to a process that removes harmful nitrogen will be accomplished by creating anoxic and aerated zones in existing aeration basins. The project will improve final water quality, ensure the Plant continues to meet effluent discharge permit limits, and allow for ultimate decommissioning of the aging biotrickling filters and other aging equipment. The project includes new air blowers; air diffusers in aerobic zones; anoxic zone pulsed air equipment; membrane aerated biofilm reactor cassettes; slide and sluice gates and valves to isolate and throttle flows; instruments such as flowmeters and oxygen probes; power distribution equipment including a standby diesel generator and power transfer equipment; and return activated sludge piping and pumping. The $193 million project is the largest project for the Plant capital program. Construction by Anderson Pacific Engineering Contractors is ongoing, and completion is expected in December 2027. WQ-19002 Plant Repair, Retrofit, and Equipment Replacement Using ongoing, recurring funding from partner agencies, minor capital improvement projects are financed and constructed. They are reimbursed based on the annual operating share of the budget (about 35% for Palo Alto). These smaller projects are designed by consultants or in-house staff. Current projects include the design of Phase 1 of 72-Inch Joint Intercepting Sewer Item 44 Attachment A - Wastewater Treatment Fund CIP Update - Project Status Item 44: Staff Report Pg. 11 Packet Pg. 782 of 911 Attachment A Rehabilitation Project and construction of Phase 1 of the 12kV Medium Voltage Electrical Power Distribution Loop Rehabilitation Project (aka, 12kV Loop Rehabilitation). The phase 1 design of the 72-Inch Joint Intercepting Sewer Rehabilitation Project is scheduled to be completed in fall 2023. The 12kV Loop Rehabililtation Project will replace buried underground electrical cable, switches, and a primary metering cabinet inside the RWQCP. Construction of this project ($6.7 million) began in December 2022 and is scheduled to be completed in June 2025. The project requires specialized construction and inspection of medium voltage equipment. WQ-19003 Advanced Water Purification System (aka, Local Salt Removal Facility) The project improves the quality of the RWQCP’s recycled water used for irrigation and other purposes. The project is an advanced treatment system, initially sized for 1.125 million gallons per day, and potentially expandable to 2.25 million gallons per day of purified water. The improved water quality from the system will be blended with the recycled water on a one-to-one basis, providing a maximum capacity of 4.5 million gallons per day. In March 2021, Council approved the project’s design services contract with Black & Veatch (SR# 117821). Construction is expected to be completed in 2026. The cost estimate of the Local Salt Removal Facility at 90% design is $56 million, which is significantly higher than that of the preliminary design in 2017 ($22 million). Project funding is expected to come from several sources. External funding sources include the $16 million from the 2019 Agreement with Valley Water (SR# 106272 ). The City also applied for and has received confirmation of a federal $12.8 million US Bureau of Reclamation grant to cover a portion of the project’s design and construction costs above and beyond the $16 million Valley Water contribution. The remaining funding requirement of $27.4 million will be paid by a State SRF loan. Staff is preparing to return to Council to describe the financing of expenses associated with the Local Salt Removal Facility, the various funding sources available, and fiscal impacts. WQ-22001 Horizontal Levee Pilot The Horizontal Levee Pilot will construct a berm and horizontal levee along a portion of existing, poor-quality upland habitat adjacent to Harbor Road. The horizontal levee will be planted with various native plants to restore diverse transitional habitats including freshwater marsh, wet meadow, and riparian scrub. The vegetated horizontal levee will provide wave attenuation as well as sea level rise adaptation space for the adjacent marsh and refugia habitat for key species such as the Salt Marsh Harvest Mouse. The Project will install an underground pipeline to transport treated wastewater along Embarcadero and Harbor Roads to the horizontal levee for irrigation of the native plants. On-going monitoring and community science opportunities are currently being planned to ensure data obtained from this permanent pilot is available for use in the larger flood control levee projects for Palo Alto as well as regionally. Most project costs have 1 Palo Alto City Council, March 8, 2021; Agenda Item #3; SR# 11782. https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city- council-agendas-minutes/2021/03-08-21-ccm-agenda.pdf 2 Palo Alto Council, November 18, 2019, Agenda Item 17 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/00-archive/2019/11-18-2019-ccm.pdf Item 44 Attachment A - Wastewater Treatment Fund CIP Update - Project Status Item 44: Staff Report Pg. 12 Packet Pg. 783 of 911 Attachment A been paid for by grants obtained by the San Francisco Estuary Partnership with a minimal match required from the Wastewater Treatment Enterprise Fund. Construction is currently planned for summer 2024 into early 2025. WQ-24000 72-Inch Joint Intercepting Sewer Rehabilitation (Phase 1) The 72-inch joint intercepting sewer measuring 8,964 linear feet was built in 1970 to convey flows from Mountain View, Los Altos, Los Altos Hills, and Palo Alto to the Plant. The 2,364 linear feet of pipeline nearest the Plant is 72-inch diameter reinforced concrete pipe, 25 feet below ground, severely corroded, and needs immediate rehabilitation. This section of the pipeline will be rehabilitated as part of Phase 1 of the 72-Inch Joint Intercepting Sewer Rehabilitation Project. The City’s engineering consultant performed alternative analysis on different pipeline rehabilitation methods. Cured in place pipe (CIPP) was determined to be the most cost-effective rehabilitation method to strengthen the sewer pipe structurally and minimize site disturbance, as there is no open cut trench with CIPP. The Utilities Department also uses CIPP lining on city sanitary sewers. This project will involve inspection, cleaning, CIPP lining, and bypass pumping. The project will require up to 5 months of field construction and up to 16 weeks of sewage bypassing. Staff have been coordinating with Community Services Department staff throughout design to minimize natural habitat disturbance and communicate with park visitors. The project construction cost is approximately $6 million and will be repaid by partner agencies on a pay-as- you-go agreement. Staff will return to Council in about fall 2023 for approval of the construction contract and an Addendum No. 12 with Mountain View and Los Altos settling on terms for project financing. Construction will be in spring and summer 2024 using a specialty contractor in large diameter CIPP lining. Item 44 Attachment A - Wastewater Treatment Fund CIP Update - Project Status Item 44: Staff Report Pg. 13 Packet Pg. 784 of 911 Item No. 16. Page 1 of 1 City Council Supplemental Report From: Brad Eggleston, Director Public Works/City Engineer Meeting Date: June 19, 2023 Item Number: 16 Report #:2306-1675 TITLE Approval of a Purchase Order with Aviat Networks in the Amount of $438,907 for Radio Communication Systems for the New Public Safety Building Capital Project (PE-15001), including $399,007 for Basic Services and $39,900 for Additional Services; CEQA: Environmental Impact Report for the PSB and New California Avenue Area Parking Garage (Resolution No. 9772) RECOMMENDATION Replace the Purchase Order (Attachment A) for Aviat Networks with the revised Attachment A included with this supplemental report. BACKGROUND The contingency amount on the original Purchase Order attached to Staff Report No. 2302- 0978 was incorrect. The original amount exceeded 10% of the Basic Services and did not match the amount recommended for approval in Staff Report No. 2302-0978. The revised Purchase Order matches the recommendation for approval in Agenda Item 16. ATTACHMENTS Attachment A: Revised Aviat Purchase Order APPROVED BY: Brad Eggleston, Director Public Works/City Engineer Item 16 Item 16 Supplemental Report Item 16: Staff Report Pg. 1 Packet Pg. 785 of 911 This is a NASPO ValuePoint contract under a Cooperative Purchasing Master Agreement No. 00318. State of California Participating Addendum Number 7-22-70-49-02. Contract term of NASPO Master Agreement expires on December 31, 2026. This is for the Public Safety Building. Additional products may be purchased per the staff report approved by City Council. This PO is governed by California law without regard to conflict of law principles. This PO by reference incorporates the following contract documents into this PO by reference as though fully set forth herein: 1. Cooperative Purchasing Master Agreement No. 00318 By and Between State of Washington Department of Enterprise Services and Aviat U.S., Inc. 2. State of California Participating Addendum Number 7-22-70-49-02 Public Safety Communications Products, Services and Solutions Washington NASPO ValuePoint Master Agreement Number 00318 0010 PD Aviat Networks + FREIGHT 399,007 USD 1.00 399,007.00 This is a NASPO ValuePoint contract under a Cooperative Purchasing Vendor Address AVIAT US INC 200 PARKER DR SUITE C100A AUSTIN TX 78728 Tel: 408-343-4614 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Police Dept. - Technical Serv. Div. City of Palo Alto 275 Forest Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C23187020 Date 05/31/2023 Vendor No.108087 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by Cty Term 05/31/2023 - 05/30/2024 Buyer/Phone Ann Marie Romero / 650-329-2460 Email No email DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 1 of 5 Item 16 Attachment A - Revised Aviat Purchase Order Item 16: Staff Report Pg. 2 Packet Pg. 786 of 911 Master Agreement No. 00318. State of California Participating Addendum Number 7-22-70-49-02. Contract term of NASPO Master Agreement expires on December 31, 2026. This is for the Public Safety Building. Additional products may be purchased per the staff report approved by City Council. This PO is governed by California law without regard to conflict of law principles. This PO by reference incorporates the following contract documents into this PO by reference as though fully set forth herein: 1. Cooperative Purchasing Master Agreement No. 00318 By and Between State of Washington Department of Enterprise Services and Aviat U.S., Inc. 2. State of California Participating Addendum Number 7-22-70-49-02 Public Safety Communications Products, Services and Solutions Washington NASPO ValuePoint Master Agreement Number 00318 Line item #10 includes the following parts + freight ($6,705) EV206-AMC-AM0-410000 Price $21,193.04 QTY 2 ET106-B-0-300 Price $2,433.20 QTY 2 179-530135-AA121 Price $260.48 QTY 1 179-530135-BB221 Price $765.60 QTY 1 179-530135-DD421 Price $999.68 QTY 0 024-905026-080 Price $227.04 QTY 0 024-905034-080 Price $216.48 QTY 0 Vendor Address AVIAT US INC 200 PARKER DR SUITE C100A AUSTIN TX 78728 Tel: 408-343-4614 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Police Dept. - Technical Serv. Div. City of Palo Alto 275 Forest Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C23187020 Date 05/31/2023 Vendor No.108087 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by Cty Term 05/31/2023 - 05/30/2024 Buyer/Phone Ann Marie Romero / 650-329-2460 Email No email DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 2 of 5 Item 16 Attachment A - Revised Aviat Purchase Order Item 16: Staff Report Pg. 3 Packet Pg. 787 of 911 179-530089-001 Price $141.68 QTY 1 179-530089-002 Price $282.48 QTY 0 WGKIT-3000 Price $939.84 QTY 4 ET106-B-0-300 Price $2,433.20 QTY 0 EXX-000-205 Price $1,666.72 QTY 2 EXS-002 Price $385.44 QTY 2 179-530064-001 Price $17.60 QTY 2 EXR-700-002 Price $1,085.04 QTY 8 EXA-001 Price $339.68 QTY 2 037-579315-001 Price $69.52 QTY 2 EXD-181-002 Price $1,223.20 QTY 2 037-579461-500 Price $40.48 QTY 0 083-845434-001 Price $100.32 QTY 4 LOC-CAT6SH-3M-BLB Price $19.36 QTY 2 614-196502-001 Price $35.20 QTY 2 EXD-400-002 Price $1,769.68 QTY 2 EXD-161-002 Price $1,769.68 QTY 2 037-579408-015 Price $259.60 QTY 1 EXD-156-001 Price $3,473.36 QTY 2 037-579131-001 Price $7.92 QTY 2 EZE-08004 Price $2,718.32 QTY 2 EZE-08006 Price $5,437.52 QTY 0 EZF-62 Price $3,263.04 QTY 2 EZF-64 Price $6,525.20 QTY 0 EZF-03 Price $1,497.76 QTY 2 EZF-04 Price $998.80 QTY 2 EZF-06 Price $374.88 QTY 2 EZF-14 Price $3,263.04 QTY 1 Vendor Address AVIAT US INC 200 PARKER DR SUITE C100A AUSTIN TX 78728 Tel: 408-343-4614 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Police Dept. - Technical Serv. Div. City of Palo Alto 275 Forest Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C23187020 Date 05/31/2023 Vendor No.108087 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by Cty Term 05/31/2023 - 05/30/2024 Buyer/Phone Ann Marie Romero / 650-329-2460 Email No email DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 3 of 5 Item 16 Attachment A - Revised Aviat Purchase Order Item 16: Staff Report Pg. 4 Packet Pg. 788 of 911 EZG-14 Price $3,263.04 QTY 0 ERM-ACC-401 Price $8,156.72 QTY 1 179-530307-0113 Price $1,859.44 QTY 1 179-530118-001 Price $523.60 QTY 2 COMMON-BREAKERS-RACK Price $79.20 QTY 3 179-530119-001 Price $795.52 QTY 1 SIPQ-CABLES Price $2.64 QTY 3 CNI-SA-2115-0001 Price $1,437.92 QTY 1 RAV-61510D-622-DB-01 Price $4,834.72 QTY 1 037-579453-002 Price $87.12 QTY 2 037-579459-001 Price $406.56 QTY 2 PWR-000047-TRM Price $23.76 QTY 0 AND-VHLP3-11W-6WH Price $1,041.04 QTY 2 LS(TBD) Price $2,529.12 QTY 1 179-530147-001 Price $2,076.80 QTY 2 AND-EW90-F Price $7.04 QTY 665 AND-EW90INSTALL-KIT Price $1,078.00 QTY 5 179-530526-001 Price $459.36 QTY 5 018-510090-003 Price $52.80 QTY 55 VLT-BAEW903 Price $47.52 QTY 5 DHY-000001-ETI Price $6,597.36 QTY 1 AND-L6600D-4 Price $717.20 QTY 1 CDT-H48120V4U36AR Price $6,534.88 QTY 1 CDT-H48TEL12-230FN-19 Price $5,961.12 QTY 1 CDT-100.7675.4850 Price $836.88 QTY 1 LS(ASR-903_SVRIA) Price $51,594.40 QTY 1 LS(ASA) Price $12,194.16 QTY 1 LS(A900-RSP2A-128) Price $12,142.24 QTY 1 Vendor Address AVIAT US INC 200 PARKER DR SUITE C100A AUSTIN TX 78728 Tel: 408-343-4614 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Police Dept. - Technical Serv. Div. City of Palo Alto 275 Forest Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C23187020 Date 05/31/2023 Vendor No.108087 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by Cty Term 05/31/2023 - 05/30/2024 Buyer/Phone Ann Marie Romero / 650-329-2460 Email No email DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 4 of 5 Item 16 Attachment A - Revised Aviat Purchase Order Item 16: Staff Report Pg. 5 Packet Pg. 789 of 911 LS(ASA) Price $12,194.16 QTY 1 SVCS-IN-SIPQ-RI Price $2,174.48 QTY 1 SVCS-IN-SIPQ-VI Price $1,897.28 QTY 1 SVCS-IN-SIPQ-AT Price $1,883.20 QTY 0 SVCS-IN-SS-CEDFT Price $3,126.64 QTY 1 SVCS-PN-EN-SE Price $14,542.88 QTY 1 SVCS-PN-EN-XE Price $0.00 QTY 0 SVCS-PN-EN-XE Price $5,099.60 QTY 1 SVCS-IN-PM-PM Price $10,347.92 QTY 1 SVCS-IN-PM-PM Price $12,121.12 QTY 1 SVCS-IN-IC-FI Price $54,187.76 QTY 1 SVCS-IN-IC-FI Price $28,186.40 QTY 1 SVCS-IN-IC-FI Price $4,162.16 QTY 1 0020 PD CONTINGENCY 39,900 USD 1.00 39,900.00 ------------------------- Sub-Total 438,907.00 Vendor Address AVIAT US INC 200 PARKER DR SUITE C100A AUSTIN TX 78728 Tel: 408-343-4614 Bill To: City of Palo Alto Account Payable P.O.Box 10250 Palo Alto, CA 94303 Ship To: Police Dept. - Technical Serv. Div. City of Palo Alto 275 Forest Avenue Palo Alto CA 94301 Item Material/Description Quantity UM Net Price Net Amount ______________________________________ Interim Chief Procurement Officer Total 438,907.00 THIS P.O. IS SUBJECT TO THE TERMS AND CONDITIONS STATED BELOW AND ON THE LAST PAGE SPECIFICATIONS - Any specification and /or drawings referred to and/or attached hereto are expressly made a part of this Purchase Order. DELIVERY - Please notify the City promptly if delivery cannot be made on or before the date specified. If partial shipment is authorized, so indicate on all documents. Complete packing lists must accompany each shipment. INVOICE - A separate invoice is required for each order. Send to address indicated above. City of Palo Alto Purchasing and Contract Administration P.O.Box 10250 Palo Alto CA 94303 Tel:(650)329-2271 Fax:(650)329-2468 Council Approve Order P.O. NUMBER MUST APPEAR ON ALL INVOICES, PACKAGES, SHIPPING PAPERS AND CORRESPONDENCE PERTAINING TO THIS ORDER PO Number C23187020 Date 05/31/2023 Vendor No.108087 Payment Terms Payment Due 30 days FOB Point Services Only Ship via Services as requested by Cty Term 05/31/2023 - 05/30/2024 Buyer/Phone Ann Marie Romero / 650-329-2460 Email No email DELIVERIES ACCEPTED ONLY BETWEEN 7:00 AM & 3:00 PM UNLESS OTHER ARRANGEMENTS ARE INDICATED HEREIN Page 5 of 5 Item 16 Attachment A - Revised Aviat Purchase Order Item 16: Staff Report Pg. 6 Packet Pg. 790 of 911 2 4 3 7 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: City Auditor Meeting Date: June 19, 2023 Report #:2306-1596 TITLE Approval of Office of City Auditor Task Order Change - 04.16 ALPR Technology Contract Management; CEQA Status – Not a Project RECOMMENDATION The Policy and Services Committee and City Auditor recommend that the City Council approve the change to the Task Order 04.16 ALPR (Automated License Plate Reader) Technology Contract Management to extend the period of performance. ANALYSIS This task order with the period of performance from January 1, 2023, to June 30, 2023, was fully executed on January 20, 2023, and the audit was commenced in late January 2023. This audit requires information gathering from multiple departments (Transportation, Human Resources, and IT) and a contractor, Duncan Solutions. Although some departments responded to OCA’s requests and questions in a timely manner, OCA has not been able to make progress on the audit because OCA has not received the requested documentation and has been unable to conduct walkthroughs after multiple follow-ups. OCA requests the period of performance to be extended to October 31, 2023. The total not-to-exceed budget remains the same. Baker Tilly presented the attached modified task order during the Policy & Service Committee meeting on June 13, 2023 (CMR 2305-14631), where a motion to approve the task order change was passed (3-0). 1 6/13/23 Policy and Services Committee, 04.16 ALPR Tech Contract Mgt: https://cityofpaloalto.primegov.com/Portal/viewer?id=2185&type=0 Item 23 Item 23 Staff Report Item 23: Staff Report Pg. 1 Packet Pg. 791 of 911 2 4 3 7 FISCAL/RESOURCE IMPACT Work recommended in these tasks is within both the approved scope and compensation of the contract with Baker Tilly and funding levels in the FY 2023 Operating Budget for the Office of the City Auditor. STAKEHOLDER ENGAGEMENT No stakeholder outreach was necessary for this report, as it is an internal decision made by the OCA the reallocate resources for audit functions. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because the audit activities do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4). ATTACHMENTS Attachment A: TASK ORDER FY23-04.16 Review of ALPR Technology Contract Management (Extension) APPROVED BY: Adriane D. McCoy, City Auditor Item 23 Item 23 Staff Report Item 23: Staff Report Pg. 2 Packet Pg. 792 of 911 PROFESSIONAL SERVICES TASK ORDER TASK ORDER 04.16 Review of ALPR Technology Contract Management Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340 OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY23-4.16 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: January 1, 2023 COMPLETION: June 30October 31, 2023 4 TOTAL TASK ORDER PRICE: $82,500 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT TBD 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Greg Tanaka, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE:  SERVICES AND DELIVERABLES TO BE PROVIDED  SCHEDULE OF PERFORMANCE  MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Item 23 Attachment A - TASK ORDER FY23-04.16 Review of ALPR Technology Contract Management (Extension) Item 23: Staff Report Pg. 3 Packet Pg. 793 of 911 Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements:  Services and Deliverables To Be Provided  Schedule of Performance  Maximum Compensation Amount and Rate Schedule (As Applicable)  Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly’s approach to conducting an internal audit of Contract Management for ALPR Technology involves three (3) primary steps:  Step 1: Audit Planning  Step 2: Control Review and Testing  Step 3: Reporting Step 1 – Audit Planning This step consists of the tasks performed to adequately plan the work necessary to address the overall audit objective and to solidify mutual understanding of the audit scope, objectives, audit process, and timing between stakeholders and auditors. Tasks include:  Gather information to understand the environment under review o Understand the organizational structure and objectives o Review the City code, regulations, and other standards and expectations o Review prior audit results, as applicable o Review additional documentation and conduct interviews as necessary  Assess the audit risk  Write an audit planning memo and audit program o Refine audit objectives and scope o Identify the audit procedures to be performed and the evidence to be obtained and examined  Announce the initiation of the audit and conduct kick-off meeting with key stakeholders o Discuss audit objectives, scope, audit process, timing, resources, and expectations o Discuss documentation and interview requests for the audit Item 23 Attachment A - TASK ORDER FY23-04.16 Review of ALPR Technology Contract Management (Extension) Item 23: Staff Report Pg. 4 Packet Pg. 794 of 911 Step 2 – Control Review and Testing This step involves executing the procedures in the audit program to gather information, interview individuals, and analyze the data and information to obtain sufficient evidence to address the audit objectives. The preliminary audit objective is to: (1) Determine whether adequate policies and procedures are implemented effectively to protect the privacy of personal information gathered using ALPR technology for the City’s parking management. (2) Determine whether the City monitors the vendor’s performance to ensure the compliance with contract terms and applicable laws and regulations related to data privacy. Procedures include, but not limited to:  Interview the appropriate individuals to understand the process, the information system used, and the internal controls related to data privacy.  Compare data privacy related policies and procedures as well as the regulations and standards to determine whether personally identifiable information (PII) has confidentiality, integrity, and availability as needed.  Review IT vendor performance monitoring practices to determine whether controls are implemented to ensure compliance with contract terms and data privacy standards.  Perform test procedures including observations of controls (such as governance, management and technical IT controls) and review of a sample of parking patrons (PII during the audit period).  Compare the process and controls against the best practices. Step 3 – Reporting In Step 3, the project team will perform tasks necessary to finalize audit working papers, prepare and review a draft report with the stakeholders, and submit a final audit report. Tasks include:  Develop findings, conclusions, and recommendations based on the supporting evidence gathered  Validate findings with the appropriate individuals and discuss the root cause of the identified findings  Complete supervisory review of working papers and a draft audit report  Distribute a draft audit report and conduct a closing meeting with key stakeholders o Discuss the audit results, finings, conclusions, and recommendations o Discuss management responses  Obtain written management responses and finalize a report  Review report with members of City Council and/or the appropriate Council Committee Deliverables: The following deliverable will be prepared as part of this engagement:  Audit Report Item 23 Attachment A - TASK ORDER FY23-04.16 Review of ALPR Technology Contract Management (Extension) Item 23: Staff Report Pg. 5 Packet Pg. 795 of 911 Schedule of Performance Anticipated Start Date: January 1, 2023 Anticipated End Date: June 30October 31, 2023 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $82,500. The not-to-exceed budget is based on an estimate of 400 total project hours, of which 20 are estimated to be completed by the City Auditor. Reimbursable Expenses If circumstances allow, Baker Tilly anticipates planning one on-site fieldwork week. Given this possibility, Baker Tilly could incur reimbursable expenses for this Task. The not-to-exceed maximum for reimbursable expenses for this Task is $8,500. The following summarizes anticipated reimbursable expenses (for three team members):  Round-trip Airfare – $2,000 (3 round trip flights)  Ground Transportation (car rental or Uber/taxi) - $2,000  Hotel accommodation - $3,000 (12 nights)  Food and incidentals – $1,500 Note that, as the restrictions associated with COVID-19 change, the project team will work with the City to consider circumstances at the time. Item 23 Attachment A - TASK ORDER FY23-04.16 Review of ALPR Technology Contract Management (Extension) Item 23: Staff Report Pg. 6 Packet Pg. 796 of 911 2 4 3 9 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: City Auditor Meeting Date: June 19, 2023 Report #:2306-1597 TITLE Approval of Office of City Auditor Task Order Change - 04.19 Disaster Recovery Preparedness; CEQA Status – Not a Project RECOMMENDATION The Policy and Services Committee and City Auditor recommend that the City Council approve the change to the Task Order 04.19 Disaster Recovery Preparedness to extend the period of performance. ANALYSIS The agreement between Baker Tilly and the City requires that each internal audit commence only upon the City’s approval of a Task Order. The Office of the City Auditor (OCA) presented Task Order 04.19 – Disaster Recovery Preparedness, and the task order was recommended for approval by the Policy & Services Committee on February 28, 2023 (CMR 2301-08271) and accepted by the City Council during the City Council meeting on March 13, 2023 (CMR 2302-10212). This task order with the period of performance from March 1, 2023, to June 30, 2023, has not been signed since it was approved on March 13, 2023. As a result, OCA has not started an audit of Disaster Recovery Preparedness. The OCA requests the period of performance to be extended to November 30, 2023. The total not-to-exceed budget remains the same. 1 2/28/2023 Policy & Services Committee, Agenda Item #2, FY 2023 City Auditor Task Orders, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=52154&dbid=0&repo=PaloAlto 2 3/13/23 City Council, Agenda Item #AA1, FY 2023 City Auditor Task Orders, https://recordsportal.paloalto.gov/WebLink/DocView.aspxid=82302&dbid=0&repo=PaloAlto Item 24 Item 24 Staff Report Item 24: Staff Report Pg. 1 Packet Pg. 797 of 911 2 4 3 9 Baker Tilly presented the attached modified task order during the Policy & Service Committee meeting on June 13, 2023 (CMR 2305-14643), where a motion to approve the task order change was passed (3-0). FISCAL/RESOURCE IMPACT Work recommended in these tasks is within both the approved scope and compensation of the contract with Baker Tilly and funding levels in the FY 2023 Operating Budget for the Office of the City Auditor. STAKEHOLDER ENGAGEMENT No stakeholder outreach was necessary for this report, as it is an internal decision made by the OCA to reallocate resources for audit functions. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because the audit activities do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4). ATTACHMENTS Attachment A: TASK ORDER FY23-4.19 Disaster Recovery Preparedness (Extension) APPROVED BY: Adriane D. McCoy, City Auditor 3 6/13/23 Policy and Services Committee, 04.19 Disaster Recovery Preparedness: https://cityofpaloalto.primegov.com/Portal/viewer?id=2186&type=0 Item 24 Item 24 Staff Report Item 24: Staff Report Pg. 2 Packet Pg. 798 of 911 PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY23-4.19 Disaster Recovery Preparedness Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340 OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): 1B. TASK O RDER NO.: FY23-4.19 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: March 1May 22, 2023 COMPLETION: June 30November 30, 2023 4 TOTAL TASK ORDER PRICE: $87,500 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT $TBD 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Greg Tanaka, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE: SERVICES AND DELIVERABLES TO BE PROVIDED SCHEDULE OF PERFORMANCE MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable) REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ I hereby acknowledge receipt and acceptance of this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Item 24 Attachment A - TASK ORDER FY23-4.19 Disaster Recovery Preparedness (Extension) Item 24: Staff Report Pg. 3 Packet Pg. 799 of 911 Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements:  Services and Deliverables To Be Provided  Schedule of Performance  Maximum Compensation Amount and Rate Schedule (As Applicable)  Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Disaster Recovery Assessment Baker Tilly’s approach to conducting a disaster recovery assessment involves four (4) primary steps:  Step 1: Assessment Planning and Kick-off  Step 2: Information Gathering  Step 3: Disaster Recovery Analysis and Recommendations  Step 4: Reporting Step 1 – Assessment Planning and Kick-off This step consists of the tasks performed to adequately plan the work necessary to address the overall assessment objective and to solidify mutual understanding of the assessment scope, objectives, assessment process, and timing between stakeholders and assessors. Tasks include:  Baker Tilly will work with the City to finalize the assessment scope and project timeline. Baker Tilly will also provide the City with an initial interview and documentation request list.  Finally, Baker Tilly will perform a project kick-off discussion with the City to ensure alignment with the project timeline, interview schedule, and deliverables. Step 2 – Information Gathering This step involves conducting interviews with identified IT security personnel and key stakeholders to gain an understanding of the operating environment and understand the desired outcome of the disaster recovery plan. Baker Tilly will also review current IT disaster recovery policy and procedure documentation, as well as review current infrastructure in place. Item 24 Attachment A - TASK ORDER FY23-4.19 Disaster Recovery Preparedness (Extension) Item 24: Staff Report Pg. 4 Packet Pg. 800 of 911 Step 3 – Disaster Recovery Analysis and Recommendations This step involves assessing the documentation of current disaster recovery plan for high priority application and supporting infrastructure to identify the adequacy of the documentation and identify additional documentation requirements. Baker Tilly will perform a gap assessment between the current disaster recovery capabilities, desired disaster recovery strategy, and industry best practices. Baker Tilly develop recommendation to remediate the identified documentation and capability gaps. Baker Tilly will provide recommendations to update the disaster recovery documentation to address the gaps identified. Step 4 – Reporting The project team will perform tasks necessary to finalize the initial draft disaster recovery assessment report and review a draft report with the stakeholders. Additionally, the team will submit a final assessment report to the City. Tasks include:  Develop findings, conclusions, and recommendations based on the supporting evidence gathered  Validate findings with the appropriate individuals  Distribute a draft assessment report and conduct a closing meeting with key stakeholders o Discuss the assessment results, findings, conclusions, and recommendations  Obtain written management responses and finalize a report Deliverables: The following deliverable will be prepared as part of this engagement:  Disaster Recovery Assessment Report Schedule of Performance Anticipated Start Date: March 1May 22, 2023 Anticipated End Date: June 30November 30, 2023 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $87,500. The not-to-exceed budget is based on an estimate of 400 total project hours, of which 20 are estimated to be completed by the City Auditor. Item 24 Attachment A - TASK ORDER FY23-4.19 Disaster Recovery Preparedness (Extension) Item 24: Staff Report Pg. 5 Packet Pg. 801 of 911 Reimbursable Expenses If circumstances allow, Baker Tilly anticipates planning one on-site fieldwork. The maximum compensation amount reflected above will be inclusive of any travel related expenses. Note that, if current restrictions associated with COVID-19 continue, an on-site visit may not be possible. The project team will work with the City to consider circumstances at the time. Item 24 Attachment A - TASK ORDER FY23-4.19 Disaster Recovery Preparedness (Extension) Item 24: Staff Report Pg. 6 Packet Pg. 802 of 911 2 4 4 1 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: City Auditor Meeting Date: June 19, 2023 Report #:2306-1598 TITLE Approval of Office of City Auditor Task Order Change - FY23-01 Citywide Risk Assessment & FY23- 02 Annual Audit Plan; CEQA Status – Not a Project RECOMMENDATION The Policy and Services Committee and City Auditor recommend that the City Council approve the change to the Task Orders FY23-01 Citywide Risk Assessment and FY23-02 Annual Audit Plan to expend the period of performance. ANALYSIS The agreement between Baker Tilly and the City requires that each internal audit be commenced only upon the City’s approval of a Task Order. The Office of the City Auditor (OCA) presented Task Order FY23-01 – Citywide Risk Assessment and Task Order FY23-02 – Annual Audit Plan and the task orders were recommended for approval by the Policy & Services Committee on February 28, 2023 (CMR 2301-08271), and accepted by the City Council during the City Council meeting on March 13, 2023. These task orders with the period of performance from March 1, 2023, to June 30, 2023, have not been signed since they were approved on March 13, 2023 (CMR 2302-10212). As a result, OCA has not started FY 2023 Risk Assessment and Annual Audit Plan. The OCA requests the period of performance to be extended to October 31, 2023. The total not-to-exceed budget remains the same. Baker Tilly presented the attached modified task order during the Policy & Service Committee 1 2/28/2023 Policy & Services Committee, Agenda Item #2, FY 2023 City Auditor Task Orders, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=52154&dbid=0&repo=PaloAlto 2 3/13/23 City Council, Agenda Item #AA1, FY 2023 City Auditor Task Orders, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82302&dbid=0&repo=PaloAlto Item 25 Item 25 Staff Report Item 25: Staff Report Pg. 1 Packet Pg. 803 of 911 2 4 4 1 meeting on June 13, 2023 (CMR 2305-15273), where a motion to approve the task order change was passed (3-0). FISCAL/RESOURCE IMPACT Work recommended in these task orders is within both the approved scope and compensation of the contract with Baker Tilly and funding levels in the Funding levels in the FY 2023 Operating Budget for the Office of the City Auditor. STAKEHOLDER ENGAGEMENT The Office of the City Auditor will coordinate with the Executive Leadership Team. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because the audit activities do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4). ATTACHMENTS Attachment A: TASK ORDER FY23-01 Citywide Risk Assessment (Extension) Attachment B: TASK ORDER FY23-02 Annual Audit Plan (Extension) APPROVED BY: Adriane D. McCoy, City Auditor 3 6/13/23 Policy and Services Committee, FY23-010 Citywide Risk Assessment and FY23-02 Annual Audit Plan: https://cityofpaloalto.primegov.com/Portal/viewer?id=2307&type=0 Item 25 Item 25 Staff Report Item 25: Staff Report Pg. 2 Packet Pg. 804 of 911 PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY23-01 Citywide Risk Assessment Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340 OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY23-01 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: March 1, 2023 COMPLETION: June 30 October 31, 2023 4 TOTAL TASK ORDER PRICE: $55,000 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT: TBD 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Greg Tanaka, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE:  SERVICES AND DELIVERABLES TO BE PROVIDED  SCHEDULE OF PERFORMANCE  MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Item 25 Attachment A - TASK ORDER FY23-01 Citywide Risk Assessment (Extension) Item 25: Staff Report Pg. 3 Packet Pg. 805 of 911 Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements: • Services and Deliverables To Be Provided • Schedule of Performance • Maximum Compensation Amount and Rate Schedule (As Applicable) • Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly’s approach to conducting the Citywide Risk Assessment involves four (4) primary steps: • Step 1: Project Planning & Management • Step 2: Information Gathering • Step 3: Analysis • Step 4: Reporting Step 1 – Project Planning & Management This step includes those tasks necessary to solidify mutual understanding of the risk assessment scope, objectives, deliverables, and timing as well as ensuring that appropriate client and consultant resources are available and well-coordinated. Tasks include: • Finalize project design – The first project activities will be to: o Identify communication channels and reporting relationships and responsibilities of project staff o Review and confirm project timelines o Review and confirm deliverables • Arrange logistics/administrative support – Matters to be addressed include schedules for interviews and data collection, contact persons in the departments, any other logistical matters, etc. • Conduct kick-off meeting with key project stakeholders Step 2 – Information Gathering This step involves gathering information, through various means, that will enable the project team to understand the various risks facing the City. Tasks include: • Request and review background information – the project team will develop an information request(s) in order to obtain various background information from the City. The request will include, but not be limited to: Item 25 Attachment A - TASK ORDER FY23-01 Citywide Risk Assessment (Extension) Item 25: Staff Report Pg. 4 Packet Pg. 806 of 911 o Strategic plan(s) o Financial reports, including the most recent City Budget and Comprehensive Annual Financial Report (CAFR) o Operational policies and procedures o Municipal code o Consulting reports o Other relevant information and reports • Conduct interviews with City Council and management o Risk assessment interviews, aimed at understanding City functions and identifying risks, will be conducted with City Council members as well as department and division • Conduct a risk assessment survey, if necessary • Conduct research into key risks in order to identify relevant information to assess risks Overall, the project team will consider the following risk types: • Strategic • Financial • Operational • Technology • Compliance • Reputational • Political Step 3 – Risk Analysis In Step 3, the project team will develop a risk matrix consisting of auditable areas (also referred to as an audit or risk universe). The risk matrix will include the following risk categories: • Environment, Strategy, and Governance – risks that have an organization wide impact and are not subject to a specific department or function (e.g., ethics) • Significant Projects and Initiatives – risks associated with large projects (e.g., capital projects, technology implementation) or City initiatives (e.g., employee engagement initiative). • Function Specific Risks – risks associated with a specific department or function (e.g., procurement policy compliance) After assembling a risk matrix, the project team will assess the likelihood and impact of potential adverse events in order to quantitatively score each auditable area for purposes of prioritizing audit activities. Step 4 – Reporting In Step 4, the project team will finalize the draft Risk Matrix and prepare a draft Risk Assessment Report. The project team will ask for input (general completeness, risk scoring) on the Risk Matrix from key project stakeholders. Upon finalization of the Risk Matrix, the project team will finalize the Risk Assessment Report. Item 25 Attachment A - TASK ORDER FY23-01 Citywide Risk Assessment (Extension) Item 25: Staff Report Pg. 5 Packet Pg. 807 of 911 Deliverables: The following deliverables will be prepared as part of this engagement: • Risk Matrix • Risk Assessment Report • Presentation of Results to City Council (note that this may be combined with presentation of the Task 2 Annual Audit Plan) Schedule of Performance Anticipated Start Date: March 1, 2023 Anticipated End Date: June 30 October 31, 2023 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $55,000. The not-to-exceed budget is based on an estimate of 250 total project hours, of which 40 are estimated to be completed by the City Auditor. Reimbursable Expenses We plan to complete all work remote including all interviews and documentation review. If at any point the City and Baker Tilly mutually determine it will be beneficial to perform a portion of the work on-site, we will submit an estimate of our reimbursable expenses for the City’s approval prior to traveling to Palo Alto. Item 25 Attachment A - TASK ORDER FY23-01 Citywide Risk Assessment (Extension) Item 25: Staff Report Pg. 6 Packet Pg. 808 of 911 PROFESSIONAL SERVICES TASK ORDER TASK ORDER FY23-02 Annual Audit Plan Consultant shall perform the Services detailed below in accordance with all the terms and conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 below are incorporated into this Task Order by this reference. The Consultant shall furnish the necessary facilities, professional, technical and supporting personnel required by this Task Order as described below. CONTRACT NO. C21179340 OR PURCHASE ORDER REQUISITION NO. (AS APPLICABLE) 1A. MASTER AGREEMENT NO. (MAY BE SAME AS CONTRACT / P.O. NO. ABOVE): C21179340 1B. TASK O RDER NO.: FY23-01 2. CONSULTANT NAME: Baker Tilly US, LLP 3. PERIOD OF PERFORMANCE: START: March 1, 2023 COMPLETION: June 30 October 31, 2023 4 TOTAL TASK ORDER PRICE: $10,500 BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT: TBD 5. BUDGET CODE_______________ COST CENTER________________ COST ELEMENT______________ WBS/CIP__________ PHASE__________ 6. CITY PROJECT MANAGER’S NAME & DEPARTMENT: Greg Tanaka, Chair of the City Council’s Policy and Services Committee 7. DESCRIPTION OF SCOPE OF SERVICES (Attachment A) MUST INCLUDE:  SERVICES AND DELIVERABLES TO BE PROVIDED  SCHEDULE OF PERFORMANCE  MAXIMUM COMPENSATION AMOUNT AND RATE SCHEDULE (as applicable)  REIMBURSABLE EXPENSES, if any (with “not to exceed” amount) 8. ATTACHMENTS: A: Task Order Scope of Services B (if any): N/A I hereby authorize the performance of the work described in this Task Order. APPROVED: CITY OF PALO ALTO BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ this Task Order and warrant that I have authority to sign on behalf of Consultant. APPROVED: COMPANY NAME: ______________________ BY:____________________________________ Name __________________________________ Title___________________________________ Date ___________________________________ Item 25 Attachment B - TASK ORDER FY23-02 Annual Audit Plan (Extension) Item 25: Staff Report Pg. 7 Packet Pg. 809 of 911 Attachment A DESCRIPTION OF SCOPE OF SERVICES Introduction Attachment A, the Description of Scope of Services, contains the following four (4) elements: • Services and Deliverables To Be Provided • Schedule of Performance • Maximum Compensation Amount and Rate Schedule (As Applicable) • Reimbursable Expenses, if any (With “Not To Exceed” Amount) Services & Deliverables Baker Tilly’s approach to preparing the Annual Audit Plan involves two (2) primary steps: • Step 1: Consultation with City Council and Management • Step 2: Reporting Step 1 – Consultation with City Council and Management The Risk Matrix and Risk Assessment Report will serve as the primary drivers of the Annual Audit Plan. The project team will initiate discussions over Risk Assessment results, potential audit activities, and audit coverage with City Council and Management. The purpose of those conversations will be to understand the priorities of City Council, and to develop a Draft Annual Audit Plan: The Draft Annual Audit Plan will identify the following components for each audit activity: • Audit activity type – audit or consulting activity • Audit objectives and scope • Anticipated budget – both in terms of hours and budget • Anticipated timeline Step 2 – Reporting The project team will present the Draft Annual Audit Plan to the City Council in order to obtain input on each potential audit activity. Upon refining the plan, the project team will finalize the Annual Audit Plan for presentation to City Council. Deliverables The following deliverable will be prepared as part of this engagement: • Annual Audit Plan Item 25 Attachment B - TASK ORDER FY23-02 Annual Audit Plan (Extension) Item 25: Staff Report Pg. 8 Packet Pg. 810 of 911 Schedule of Performance Anticipated Start Date: March 1, 2023 Anticipated End Date: June 30 October 31, 2023 Maximum Compensation Amount and Rate Schedule The not-to-exceed maximum, inclusive of reimbursable expenses (as summarized below) for this Task is $10,500. The not-to-exceed budget is based on an estimate of 50 total project hours, of which 10 are estimated to be completed by the City Auditor. Reimbursable Expenses We plan to complete all work remote including all interviews and documentation review. If at any point the City and Baker Tilly mutually determine it will be beneficial to perform a portion of the work on-site, we will submit an estimate of our reimbursable expenses for the City’s approval prior to traveling to Palo Alto. Item 25 Attachment B - TASK ORDER FY23-02 Annual Audit Plan (Extension) Item 25: Staff Report Pg. 9 Packet Pg. 811 of 911 1 9 1 0 City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Administrative Services Meeting Date: June 19, 2023 Report #:2303-1162 TITLE PUBLIC HEARING: Adoption of the Budget Ordinance for Fiscal Year 2024, Including the Operating and Capital Budgets, Table of Organization, and Municipal Fee Schedule; Acceptance of Updates to the Capital Improvement Plan, and Acceptance of Updates to the Salary Schedule for the Management and Professionals Group; CEQA Status – Not a Project RECOMMENDATION The Finance Committee and Staff recommends that the City Council: 1. Adopt the Fiscal Year 2024 Budget Ordinance (Attachment A), which includes: a. City Manager’s Fiscal Year 2024 Proposed Operating and Capital Budgets, previously distributed at the May 1 City Council Meeting (Attachment A, Exhibit 1) b. Amendments to the City Manager’s Fiscal Year 2024 Proposed Operating Budget (Attachment A, Exhibit 2) c. Amendments to the City Manager’s Fiscal Year 2024 Proposed Capital Budget (Attachment A, Exhibit 3) d. Fiscal Year 2024 City Table of Organization (Attachment A, Exhibit 4); and e. Fiscal Year 2024 Municipal Fee Changes (Attachment A, Exhibit 5) 2. Accept the Fiscal Year 2024 – 2028 Capital Improvement Plan 3. Adopt the amended salary schedule for the Management, Professionals and Confidential Group (Attachment B) 4. Potentially provide direction to staff on Finance Committee requested referrals for additional staff work. EXECUTIVE SUMMARY This memorandum provides all necessary documents and transactions for the City Council adoption of the Fiscal Year (FY) 2024 Operating Budget, Capital Budget, and Municipal Fee schedule effective July 1, 2024, unless otherwise regulated. This action reflects two months of public dialogue by the Council and Finance Committee and provides a summary of all changes to the City Manager’s FY 2024 Proposed Budget received by the Council on May 1, 2023. The necessary supporting documents for formal adoption by the City Council include the FY 2024 Budget Ordinance and the Table of Organization, and salary schedule adjustments. Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 1 Packet Pg. 812 of 911 1 9 1 0 On May 30th, the Finance Committee (CMR 2304-13251) unanimously recommended the full Council adopt the FY 2024 budget inclusive of the ‘Final Recommended Changes’ section of this memorandum, and detailed by fund and department in Attachment A Exhibits 2 through 5. An updated salary schedule for the Management, Professionals and Confidential Group is included in Attachment B to align with the recommendations in attachment A. The FY 2024 Adopted Budget will be $1.0 billion including the FY 2024 capital budget of $355.3 million and $1.2 billion over the 2024-2028 five-year Capital Improvement Plan (CIP). This is an increase of approximately $40.1 million over the proposed budget, mainly due to reappropriation of funding for continuing capital projects as well as funding added for Council Priorities as part of the budget review by the Finance Committee and Council. This budget recommends citywide staffing levels to increase by 45.25 full-time equivalent positions (FTE) from the FY 2023 adopted level for a total authorized staffing of 1,063.10 FTE in FY 2024. This is a net increase of 10.50 FTE from the proposed budget to address Council Priorities and associated administrative support. FY 2024 Review Process: Segmentation of Certain Stanford-related Matters The California Political Reform Act (PRA) requires City officials to recuse themselves from matters where it is foreseeable that the City’s decisions may have a material impact on a person or entity that is a “financial interest” to that official, and allows the City to segment multi-part items, such as the City’s budget, so that the parts of the item requiring a recusal are separated from the remaining parts of the item. This year, Council Member Veenker, who provides legal services to Stanford University on life sciences patent matters, will be recused from certain Stanford-related elements of the budget. Those elements are listed in Attachment C. Council must consider and resolve the Attachment C items first. Once these items have been resolved, Council Member Veenker will rejoin and the Council will review and approve the remaining sections of the FY 2024 Operating and Capital Budgets and the Municipal Fee Schedule. Not included in this staff report is the approval of the FY 2024 Appropriations (GANN) Limit that is required under Article XIIIB to the California State Constitution, as amended by proposition 98 in 1988 and Proposition 111 in 1990. The GANN Limit calculation is transmitted separately for City Council consideration on June 19, 2023 (CMR 2304-1355). The appropriation calculation can be found on the City’s website2 under the FY 2024 Budget Process section. Links to the meetings with the Finance Committee and the City Council, as well as the memoranda, presentations, and additional information provided for discuss can be found on the City’s website under the FY 2024 Budget Process section. BACKGROUND Per the Municipal Code, the City Manager is charged with proposing a budget that provides a clear and complete financial plan for all City activities proposed for the coming budget cycle, or fiscal year. The FY 2024 Proposed Operating and Capital Budgets were released April 28, 2023 and transmitted to the City Council on May 1, 2023. These documents represent the planned expenditures and revenues for FY 2024 for the various fund types that constitute the City’s Budget: General Fund, Capital Fund, Enterprise 1 5/30/2023 Finance Committee, Agenda Item #1, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=64125 2 City Budget, https://www.cityofpaloalto.org/Departments/Administrative-Services/City-Budget Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 2 Packet Pg. 813 of 911 1 9 1 0 Funds, Internal Service Funds, Special Revenue Funds, and Debt Service Funds. The budget documents contain an overview section with descriptions of each of these fund types and detailed information of the revenues and expenses for each fund as well as for each individual department. The FY 2024 Proposed Operating and Capital Budgets were presented to the City Council in a study session on May 1, 2023. This study session provided an overview of the budget for review and discussion, including Citywide budget strategies, assumptions used in budget development, and a summary of service investments. As part of this discussion, the City Council provided guidance to the Finance Committee for their review of the budget documents during hearings on May 5, 9, and 30. The Finance Committee review of operating and capital budgets is structured around public hearings conducted prior to the City Council adoption to complete a detailed review of the budget documents and to incorporate opportunities for community input into the decision-making process. These meeting proceedings are organized by service area and include department presentations to highlight areas of emphasis for their respective department and fund(s). Department by department, the Finance Committee reviews individual budget sections for tentative approval of the budget, potential amendments, and requests for additional information to aid in their review. At the conclusion of these hearings (Budget Wrap-up), the Finance Committee is ultimately tasked to provide recommendations to amend the Proposed Operating and Capital Budgets and Municipal Fee Schedule for City Council consideration. These amendments, and additional information recommended for City Council review, are included in this adoption memorandum. In addition to the regular schedule, an additional study session on May 22 was held to check-in with the City Council for their feedback before the final budget wrap meeting on May 30. At the study session, the City Council reviewed the status of budget deliberations, including Finance Committee tentative recommendations to add 20+ City Council priority projects that remained unfunded in the FY 2024 Proposed Operating Budget. These projects were outlined in the FY 2024 Proposed Budget Transmittal Letter to advance City Council priorities identified for 2023: Economic Recovery & Transition, Climate Change & Natural Environment, Housing for Social & Economic Balance, and Community Health & Safety. A complete list of City Council priority projects, including Finance Committee recommendation status, is included in the May 22 staff report (CMR 2305-1453, Attachment A3). Additionally, the City Council reviewed Finance Committee recommendations to add revenue sources to offset the additional costs, including proactively recognizing remaining estimated FY 2023 surplus (tax revenues, vacancy savings, and unspent Homekey operating funds) and unallocated FY 2024 Measure K (business tax) funds for housing and homeless services. These surplus funds would therefore no longer be available for transfer to the Infrastructure Reserve or the proactive pension contributions. Overall, Finance Committee recommendations tentatively added $9.0 million in revenues and $7.8 million in expenses, exceeding the $2.25 million City Council Priority Reserve established in the proposed budget for this purpose. The City Council, during its review on May 22nd provided the feedback that the Finance Committee reduce tentative adjustments by $1.0 million. The changes recommended by the Finance Committee to address these savings are provided in this document and include reducing or deferring several City Council priority projects based on factors such as staff capacity, expected timelines to implement, and urgency of need. In addition, several recommendations are included to add administrative staff to support the increased level of services recommended in the FY 2024 Budget. All 3 5/22/2023 City Council, Agenda Item #AA1, https://recordsportal.paloalt o.gov/Weblink/DocView.aspx?id=82434 Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 3 Packet Pg. 814 of 911 1 9 1 0 projects recommended for deferral will be considered for investment as part of the FY 2024 Midyear Budget Review process. A comprehensive list of meeting materials issued during Finance Committee budget hearings is available on the City website: https://www.cityofpaloalto.org/Departments/Administrative-Services/City-Budget. DISCUSSION The report is organized by the following sections: •Background and Discussion: Summary of FY 2024 budget process and overall balancing strategies organized by fund type, including funding of Council Priorities and Objectives. •FY 2024 Final Recommended Changes: A summary of final direction given by the Finance Committee on May 30 and additional recommended technical and staff adjustments organized by fund type. •Table of Organization: A summary of additional changes to the Table of Organization because of adjustments made to the proposed budget that was released on May 1, 2023. •Municipal Fee Schedule: A summary of the changes in the Review and Recommendations to Council on the FY 2023 Municipal Fee Schedule Amendments for Incorporation in the FY 2024 Proposed Budget (CMR 2304-13864). •FY 2024 Utility Rate Changes: A brief overview of the rate changes reviewed by the Utilities Advisory Commission and Finance Committee and the final decision the City Council will make on June 19, 2023 (CMR 2302-0939)5; each of these rate changes are included in the FY 2024 budget assumptions. •Review of Referral Items from the Finance Committee: This report details a list of areas that the Finance Committee recommends for additional staff work because of discussions from the FY 2024 budget hearings. These are areas identified for deeper analysis or alternative funding strategies to be explored over the course of the next fiscal year. •Attachments: Attached to this report are several documents as outlined and referenced throughout the recommendation language and the report. In addition, links to all the materials presented throughout the budget process to the City Council such as staff reports, At Places Memorandums, presentations made during the budget hearings, and transcripts from City Council Budget Hearings are included. The FY 2024 Proposed Budget outlined a two-year budget balancing strategy, bringing financial planning through June 30, 2025. This reflects a pivot from the COVID-19 pandemic recovery period to a steadier 4 5/9/2023 Finance Committee, Agenda Item #3, Municipal Fee Schedule Amendments, https://www.cityofpaloalto.org/files/assets/public/administrative-services/city-budgets/fy-2024-city- budget/proposed/municipal-fee-schedule-amendments-fy24.pdf 5 6/19/2023 City Council, Agenda Item #28, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1170 Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 4 Packet Pg. 815 of 911 1 9 1 0 state or “new/next normal” and recommends using one-time surplus to bridge near-term shortfalls in FY 2024 and FY 2025 while investing in priority services, infrastructure, and saving for long-term liabilities. In addition, the strategy recommends a measured approach of setting aside a higher BSR reserve and limiting ongoing costs to mitigate the potential for greater future deficits. The actions recommended in the FY 2024 Proposed Budget, along with the recommended changes from Staff, Finance Committee, and Council through the budget review process will provide enhancements to services across the City to address the 72 objectives identified by the Council to address the priorities for FY 2023. Although City services are not fully returned to pre-pandemic levels in all aspects, rather than simply bouncing back to pre-pandemic services, recommendations in this budget reflect adaptations of service delivery to address changing conditions and community priorities. Several areas of building and strengthening services include generational investments such as supporting home electrification, transportation safety at railroad grade crossings, and fiber to the premises are ongoing. The voter approved ballot measures solidified funding for critical public safety needs such as 9-1-1 dispatch, police services, fire and emergency medical and hazardous materials response, and community and library services. One area of support that has been a concern over the past couple years, has been recruitment and retention of staff to provide the programs and services approved by the Council. The FY 2024 Budget supports the City’s commitment to be an Employer of Choice and to enable City departments to effectively retain, recruit, and hire talent. The City has already experienced the reduction in turnover in FY 2023 due to new labor agreements offering the workforce competitive total compensation and benefits. Another key contributor to a high retention rate is the focus on fostering a positive work environment, providing employees resources for training, professional development and growth opportunities. The FY 2024 Budget increases staffing in the Human Resources Department as a strategy to alleviate the recruitment demands, expedite hiring efforts, and focus on other areas of recruitment such as building programs and systems to build and support a pipeline for future applicants. Throughout the budget review process, addressing the Council priorities and objectives has been a key factor in determining funding appropriation for FY 2024 and ongoing. Attachment D shows all 72 of the objectives identified by the Council and shows which of these objectives are recommended to be assigned financial resources as part of the FY 2024 Budget. Table 1 below, also details the changes recommended by Staff, Finance Committee, and the Council. It should be noted that pursuing the expansive range of services reflected in these priorities will test the City’s institutional capacity. Overall, the enhancements reflected in this FY 2024 Budget will build and strengthen services throughout the City, support continued workforce recruitment and retention efforts, and advance City Council priority initiatives. While there are continued unknowns and uncertainties ahead, the FY 2024 Budget offers the Council, community, and staff reason for optimism that 2024 will continue progress to address community priorities and continue robust City services that the community expects through balanced financial strategies. FY 2024 FINAL RECOMMENDED CHANGES This section reviews amendments to the FY 2024 Proposed Operating and Capital Budgets presented to the City Council on May 1, including final adjustments recommended by the Finance Committee and technical adjustments recommended by staff. A comprehensive list of these adjustments is included in Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 5 Packet Pg. 816 of 911 1 9 1 0 Attachment A, Exhibit 2 for changes to the FY 2024 Operating Budget, and Attachment A, Exhibit 3 for changes to the FY 2024 Capital Budget. Changes to the Table of Organization are discussed later in this memorandum, and an updated Table of Organization is included in Attachment A Exhibit 4. OPERATING BUDGET – General Fund The City’s General Fund is recommended to have $260.6 million in revenues and $279.1 million in expenses. To balance the budget for FY 2024, one-time funding from the Council appropriated Uncertainty Reserve, the Development Services Reserve, and the Budget Stabilization Reserve will be used to fund service priorities. A total of $4.2 million in expenditures has been added to FY 2024 proposed funding levels to support Council priority programs that are listed below in Table 1. Additionally, this change includes a technical correction for the transfer to the Capital Improvement Fund, staffing resources for a Junior Museum and Zoo (JMZ) Access Coordinator approved on May 15, 2023 (CMR 2303-12006), and ongoing funding for a contract for Automatic Fire Extinguisher Systems Inspection, Testing, and Repair Services approved on May 15, 2023 (CMR 2303-10787). Further information about these items can be found in the Additional Staff Recommended Adjustments section of this memorandum after Table 1 Overall, this reflects a $31.7 million, or 12.8 percent, increase compared to the FY 2023 Adopted Budget. This includes an increase from the FY 2024 Proposed Budget of 10.50 FTE full-time staff (12.90 FTE in the General Fund and –2.40 FTE in Capital Funds) and 1.71 FTE part-time staff (3.79 FTE in the General Fund), resulting in an overall workforce of 1,063.10 full-time positions (586.06 FTE in the General Fund) and 99.62 FTE part-time positions (75.77 FTE in the General Fund). Uncertainty Reserve As part of the FY 2024 Proposed Budget, Staff recommended using $3.9 million of the $14 million Uncertainty Reserve, leaving $10.1 million in the Uncertainty Reserve for anticipated needs in FY 2025. The $10.1 million remaining in the Uncertainty Reserve is recommended to fund the projected deficit in FY 2025 ($7.3 million), maintain the BSR around 20% of the FY 2025 General Fund Expense budget ($1.7 million), and potentially fund items that were deferred from the FY 2024 budget to the FY 2024 Mid- Year Review ($1.1 million) Budget Stabilization Reserve This FY 2024 Adopted Budget uses the Budget Stabilization Reserve to fund the $3.4 million deficit in FY 2024 resulting from the recommended adjustments outlined in this memorandum. The FY 2024 Adopted Budget assumes a FY 2023 Year-End BSR of $57.7 million, this is above the $52.9 million assumed in the FY 2024 Proposed Budget. The Finance Committee recommends additional savings be recognized in FY 2023 in order to fund service priorities in FY 2024. These increases include $2.5 million in major tax revenue, $1.5 million in vacancy savings, and $1.0 million in Homekey Operations savings. 6 5/15/2023 City Council, Agenda Item #9, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82356 7 5/15/2023 City Council, Agenda Item #4, https://recordsportal.paloalto.gov/WebLink/DocView.aspx? id=82316&dbid=0&repo=PaloAlto Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 6 Packet Pg. 817 of 911 1 9 1 0 The net impact from FY 2024 recommended actions reduces the BSR level by $3.4 million, resulting in a projected FY 2024 year-end balance of $54.3 million. At proposed expense levels of $269.0 million, after adjusting for the $10.1 million remaining in the Uncertainty Reserve, this BSR level is at 20.2%, at the top of the Council’s recommended range of 15-20% of General Fund Expenditures. As noted in the proposed budget, a BSR at the higher end of the target range is recommended as one tool to support the continued economic uncertainty. (Exclusion of the Uncertainty Reserve for the two-year funding strategy and has been done to avoid unintentional inflation of the BSR.) Development Services Reserve Funding (DSRF) The DSRF is intended to bridge unforeseen budget shortfalls and fund one-time expenses that build long term capacity associated with the 100% cost recovery operations of the Development Center. Additionally, this fund includes a balance for prior year works in progress in which fees have been paid upfront for services that are expected to be completed in the subsequent fiscal year(s). The DSRF is used to offset eligible expenses in this report for permitting and inspection work. This combined with cumulative actions in the FY 2024 budget will bring this reserve’s remaining balance to approximately $0.8 million. Finance Committee Recommended Adjustments Throughout budget hearings in May, the Finance Committee engaged in several meetings to review proposed budget documents and recommend tentative adjustments. Table 1 provides an overview of these adjustments at various touchpoints in the budget process, including: 1) tentative adjustments presented to the City Council at the May 22 study session; 2) changes identified on May 30 (budget wrap-up) to address City Council’s recommendation to reduce adjustments by $1.0 million and defer to the FY 2024 Mid-Year Budget Review; and 3) final adjustments for budget adoption, as adjusted for changes at budget wrap-up. TABLE 1: FY 2024 General Fund Recommended Adjustments Dept Description Adjustments: 5/22 Study Session Changes: 5/30 Budget Wrap Adjustments: 6/19 Adopted NON Beginning Balance – City Council Priorities Reserve $2,250,000 $-$2,250,000 NON Measure K Housing and Homeless Services 750,000 (200,000)550,000 NON FY23 Surplus Major Tax Revenues 2,500,000 -2,500,000 NON FY23 Vacancy Savings ($1-2M)1,500,000 -1,500,000 NON FY23 & FY24 Homekey Operations Savings 2,000,000 -2,000,000 Subtotal Sources (Revenue)$9,000,000 $(200,000)$8,800,000 ECONOMIC RECOVERY & TRANSITION (ERT) CMO T2: Economic Development Assistant (145,000)-(145,000) OOT T2: Car Free Streets (250,000)-(250,000) Subtotal ERT (395,000)-(395,000) CLIMATE CHANGE & THE NATURAL ENVIRONMENT (CC&NE) OOT T2: Transportation Modes and Staffing (185,000)-(185,000) PDS T2: Bird Safe Glass/Wildlife Protection (75,000)-(75,000) Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 7 Packet Pg. 818 of 911 1 9 1 0 Dept Description Adjustments: 5/22 Study Session Changes: 5/30 Budget Wrap Adjustments: 6/19 Adopted PWD T2: Full Electric Vehicle Fleet Replacement (50%)(400,000)400,000 - PWD UTL T2: Sustainability & Climate Action Plan (S/CAP) Studies (inc. Electric Vehicle and Reliability/Resiliency Strategic Plans) (600,000)-(600,000) PWD UTL T2: Sea Level Rise and Adaptation Plan (200,000)200,000 - Subtotal CC&NE (1,460,000)600,000 (860,000) HOUSING FOR SOCIAL & ECONOMIC BALANCE (HS&EB) CMO T2: LifeMoves Construction Homekey Facilities (PE- 24005)8 (2,500,000)-(2,500,000) CMO T2: Unhoused Residence Services (100,000)100,000 - PDS T2: Regulate Short-term Rentals (100,000)100,000 - PDS T2: San Antonio Coordinated Area Plan (CAP) (50,000)-(50,000) PDS T2: Downtown Housing Plan -(500,000)(500,000) Subtotal HS&EB (2,750,000)(300,000)(3,050,000) COMMUNITY HEALTH & SAFETY (CH&S) CSD T2: Youth Mental Health Programs (200,000)200,000 - CSD T2: Eucalyptus Tree Removal (400,000)400,000 - CSD T2: Therapeutics Recreation Program (90,000)-(90,000) LIB T2: Library Hours (145,000)-(145,000) PDS T2: Seismic Upgrade (additional funding)(75,000)-(75,000) POL T2: Public Safety Dispatcher Staffing (267,000)-(267,000) PWD T2: Airport Noise Reduction (100,000)25,000 (75,000) Subtotal CH&S (1,277,000)625,000 (652,000) ENHANCE SERVICES AND NON-TIER 2 CSD T2: Art Center Visitor Services and Exhibit Installation (113,000)(11,000)(124,000) CSD Cubberley Facility Maintenance and Upkeep (900,000)370,000 (530,000) CSD T2: HSRAP (reflects HRC max requested funding, ongoing costs contingent on potential referral) (150,000)-(150,000) CSD Funding for United Nations Association Film Festival (UNAFF) -(25,000)(25,000) FIR T2: Fire Utility Task Vehicle (67,000)-(67,000) 8 Additional details on use of these project funds to reinstate project elements previously removed to achieve cost reduction goals, can be found in staff report 2304-1267, 6/12/2023 City Council, Agenda Item #14, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=82375&dbid=0&repo=PaloAlto Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 8 Packet Pg. 819 of 911 1 9 1 0 Dept Description Adjustments: 5/22 Study Session Changes: 5/30 Budget Wrap Adjustments: 6/19 Adopted PDS T2: Permitting and Inspections Operations (115,000)-(115,000) PDS T2: Zoning Code Update (3 years at $1.5M)(500,000)500,000 - NON Neighbors Abroad (20,000)-(20,000) OOT Palo Alto Transportation Management Authority (PATMA) Citywide Expansion (25,000)-(25,000) ASD Purchasing Support (1.00 FTE Contract Administrator) -(200,000)(200,000) ATT Legal Support (1.00 FTE Assistant City Attorney or outside counsel resources) -(290,000)(290,000) HRD Recruitment Support (1.00 Sr. HR Admin & Two 0.48 FTE Management Specialists) -(190,000)(190,000) NON Delayed Hiring for T2 Proposals (4 months)-185,000 185,000 Subtotal Enhance Services & Non-Tier 2 (1,890,000)339,000 (1,551,000) Subtotal Uses (Expense)($7,772,000)$1,264,000 ($6,508,000) Sources – Uses (Deficit)/Surplus $1,228,000 $1,064,000*$2,292,000 * This reflects the feedback from the Council on May 22nd to reduce the budget adjustments by $1M with the consideration of these deferrals as part of the FY 2024 Mid-Year Budget review. A summary of Finance Committee changes identified at budget wrap-up, including the $1.0 million net reduction recommended by the City Council, is as follows: •Align Measure K revenue with deferred projects: Unhoused Resident Services ($100,000) and Short-term Rentals Regulation ($100,000) •Reallocate $500,000 from Zoning Code Updates to the Downtown Housing Plan •Recommend alternative Community Services proposal for visitor and art installation staffing at the Art Center provided at the May 22 meeting ($11,000); previous recommendation added funding for one but not both services •Reduce funding for airplane noise by 25% ($25,000) •Reallocate facilities maintenance costs from the Cubberley Infrastructure Fund to the General Fund, reducing the initial reallocation from $900,000 to $530,000. Staff recommends further revisions to increase the amount shifted to $623,000, as discussed below •Defer the following projects: Full Electric Fleet Vehicle Replacement ($400,000), Sea Level Rise and Adaptation ($200,000), Youth Mental Health Programs ($200,000), and Eucalyptus Tree Removal ($400,000) •Add funding for the United Nations Association Film Festival (UNAFF) ($25,000) •Add staffing and resources for administrative support of the additional projects and programs: purchasing ($200,000), legal ($290,000), and recruiting ($190,000) •Recognize savings for expected delays to hire Tier 2 staff ($185,000) All deferred projects will be considered for investment as part of the FY 2024 Midyear Budget process. Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 9 Packet Pg. 820 of 911 1 9 1 0 Additional Recommended Adjustments In addition to Finance Committee recommended adjustments, staff has included recommendations to adjust several items requiring technical corrections to align the budget with anticipated activity levels and changes that occurred following the release of the FY 2024 budget. Junior Museum and Zoo (JMZ) Access Coordinator Staffing Consistent with CMR 2303-12009, which was approved by Council on May 15, 2023, this action adds one Staff Specialist (0.48 FTE) position in the JMZ. The Access Coordinator will identify surrounding communities that have cultural or economic barriers to utilizing the services of the Museum. This position will forge new, and strengthen existing, relationships with the purpose of developing strategies to increase the number of people that utilize the museum’s services. Funding for the position will be provided to the City by the Friends of the JMZ for two years. Cubberley Facility Maintenance and Upkeep The Cubberley Fund has approximately $900,000 in operating and maintenance costs in FY 2024, including salary and benefits for custodial and maintenance staff, maintenance contracts, landscaping services, and supplies and materials. In initial hearings, the Finance Committee tentatively recommended to reallocate the full $900,000 from the Cubberley Infrastructure Fund to the General Fund. As discussed in budget hearings, the reallocation intends to preserve funding in the Cubberley Property Infrastructure Fund for capital and facility upkeep-related expenditures at the Cubberley Property and shift ongoing operating costs for custodial, landscaping, and routine maintenance to the General Fund. At the May 30 (budget wrap-up) meeting, and based on revised costing analysis, staff recommended reducing the initial Finance Committee action by $370,000, from $900,000 to $530,000. With this change, costs for custodial staffing and landscaping services would be shifted from the Cubberley Fund to the General Fund. As part of follow-up for budget adoption, the Finance Committee recommended further adjustments to shift more costs to the General Fund. Staff recommends including shifting costs for routine maintenance contracts, increasing the total shift from the Cubberley Fund to the General Fund by $93,000, from $530,000 to $623,000. Additional information relating to the Cubberley Fund can be found in the at-places memo issued on May 9 and study session on May 22. Transfer to Capital Improvement Fund A technical adjustment is needed to correctly categorize funding transferred to the Capital Improvement Fund for Transient Occupancy Tax (TOT) Revenue designated for capital improvements. As part of the FY 2024 Proposed Budget, a transfer to the Capital Improvement Fund of $0.5 million was incorrectly categorized as a transfer to the General Fund. This action corrects this and increases the transfer to the Capital Improvement Fund by $0.5 million from $11.9 million to $12.4 million. The transfer was categorized correctly in the Capital Improvement Fund, so this only changes expenses in the General Fund. 9 5/15/2023 City Council, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82356 Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 10 Packet Pg. 821 of 911 1 9 1 0 Automatic Fire Extinguisher Systems Inspection, Testing, and Repair Services Consistent with CMR 2303-107810, which was approved by Council on May 15, 2023, this action adds ongoing annual funding in the Public Works Department in the amount of $95,825 annually for a three- year General Services contract with Johnson Controls Fire Protection to provide automatic fire extinguishing systems inspection, testing, and repair services. Business Tax Support and Administration Consistent with CMR 2304-1337, presented to Council on June 19, 2023, this net-neutral action recognizes and appropriates funding for Business Tax Support and Administration. Funding will be used for both contract services for business tax consulting as well as staff resources to administer the business tax program. In FY 2024 overstrength positions will be used to support the program and determine the appropriate position classifications needed. Staffing adjustments to the Table of Organization will be formalized in a subsequent budget process. Measure K revenue will be recognized and appropriated to fund administration of collection and reporting of the business tax revenue. Homeless Outreach Funding Consistent with CMR 2305-1588, presented to Council on June 19, 2023, this action increases funding for homeless outreach services to unhoused individuals for a two-year period. Services will include regular street outreach to locate and engage with unhoused individuals where they are in the Palo Alto area, to build trust, increase awareness of services and resources, improve neighbor relations, act as a resource to local businesses, and, when feasible, connect them with support services including shelter, housing, government benefits, mental health, substance abuse treatment, or employment training among other needs. Additionally, a small portion of the outreach team’s time will be spent on Stanford University land as part of a revenue agreement between Stanford and the City. Revenue from the Permanent Local Housing Allocation (PLHA) and Stanford University will offset the costs associated with these services. OPERATING BUDGET – Enterprise Funds Airport Fund – Reclassification of Facilities Technician to Airport Specialist II This action reclassifies 2.50 FTE Facilities Technician to 2.50 FTE Airport Specialist II. It is recommended by staff to align the classification title with the most recent updates in Service Employees International Union (SEIU) agreement (CMR 2301-071911). There are no cost implications to this adjustment. Electric Fund – Northern California Power Agency (NCPA) Revenue Adjustment This technical action removes revenue estimates of $24 million in the Electric Fund from the Northern California Power Agency (NCPA) in FY 2024, as it relates to the litigation of the Central Valley Project Improvement Act (CVPIA) operated by the U.S. Bureau of Reclamation. Staff expects to receive this payment prior to FY 2023 year-end; therefore, the revenue estimate in FY 2024 is no longer needed. 10 5/15/2023 City Council, Agenda Item #4 https://recordsportal.paloalto.gov/WebLink/DocView.aspx? id=82316&dbid=0&repo=PaloAlto 11 2/6/2023 City Council, Agenda Item #5, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82229 Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 11 Packet Pg. 822 of 911 1 9 1 0 Electric, Gas, and Water Funds – Sustainability and Climate Action Plan (S/CAP) Staffing Plan Alignment Staff recommends a realignment of staffing to oversee the S/CAP staffing resources to better support this Council priority and the upcoming three-year workplan. Recently, the Council approved the addition of two staff positions, 1.0 Senior Engineer and 1.0 Principal Resource Planner in the Public Works and Utility Departments. Staff recommends the elimination of these positions offset by the addition of 1.0 Assistant Director Sustainability and Climate Action position and 1.0 Engineer position in the Public Works Department. This will consolidate and unify resources between these departments. There is no impact to the General Fund as this staffing is funded by various utility funds and the add/delete of these positions is cost neutral in FY 2024. This action includes a new job classification for the Assistant Director Sustainability and Climate Action position. A revised salary schedule for the Management, Professional and Confidential group is included in this report to recognize this change (Attachment B). OPERATING BUDGET – Other Funds Community Development Block Grant (CDBG) Fund – FY 2024 Annual Action Plan Consistent with City Council approval on May 1, 2023 (CMR 2302-098012), staff has included corresponding adjustments in the FY 2024 budget to include the Community Development Block Grant (CDBG) program funding allocation for the FY 2024 Annual Action Plan. These actions include CDBG Fund recognition of revenue comprised of Housing and Urban Development (HUD) funding and program income and appropriation of commensurate expenses to be allocated to non-profit organizations per recommendations by the Human Relations Commission (HRC). Further information about this program can be found in CMR 2302-0980. Gas Tax Fund – Gas Tax Revenue Reduction This action is a technical update to decrease Gas Tax revenue estimates for Palo Alto based on the California Department of Finance’s May 2023 updates for estimated Highway Users Tax Account (HUTA) and Road Maintenance and Rehabilitation Account (RMRA) taxes for FY 2024. This also decreases the transfer to the Streets Maintenance capital project (PE-86070), which is discussed below in the Capital Budget section of this report. General Benefits Fund – Healthcare and Pension Pass-through Expenses This net neutral action increases the estimate for charges to other funds by $1.4 million due to staffing increases in the FY 2024 Proposed Budget and as recommended by Finance Committee and City Council as part of the FY 2024 Adopted Budget. During budget hearings, the Finance Committee and City Council recommended significant adjustments to the FY 2024 Proposed Budget to restore staffing in service areas such as Community, Library, Public Safety, and Planning, and the administrative staff necessary to support these functions. The General Benefits Fund acts as a pass-through for pension and healthcare costs; therefore, staff recommends this technical action to increase expenditures correspondingly, keeping the fund in alignment with staffing levels. 12 5/1/2023 City Council, Agenda Item #10, https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82288 Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 12 Packet Pg. 823 of 911 1 9 1 0 CAPITAL BUDGET The City’s Capital Improvement Plan reflects a $355.3 million FY 2024 budget, and a $1.2 billion plan over the five-year CIP (FY 2024-FY 2028). Of this, the Capital Improvement Fund FY 2024 budget reflects expected expense of $133.1 million and $440.6 million over the five-year CIP. Capital Reappropriations The Municipal Code requires City Council authorization to reappropriate funds for capital projects from one fiscal year to the next. The FY 2024 budget process continues this procedure, and the FY 2024 Proposed Capital Budget included approximately $127.8 million in reappropriated funds for project expenditures across all funds. In the time since the FY 2024 Proposed Budget, Staff refined the FY 2023 estimated project activity levels and provided further updates to increase the reappropriations by $36.1 million, to $163.9 million across all funds. The additional reappropriation adjustments are summarized in Attachment A, Exhibit 3. Other Capital Project Adjustments In addition to the reappropriations from FY 2023 to FY 2024, several capital projects need to be adjusted based on updated information that became available after the release of the FY 2024 Proposed Capital Budget or as a result of actions recommended in this memorandum. These adjustments, including two new capital projects in the Capital Improvement Fund and the Electric Fund, are discussed below and summarized in Attachment A, Exhibit 2. Capital Improvement Fund -NEW PROJECT - Mitchell Park Library Repair (PE-24006) – A vehicular accident in January 2023 damaged the Mitchell Park Library building. Due to the extent of the damages, a new capital project is recommended to hire a structural consultant to review the impact zone and structural impact, a design consultant to prepare construction drawings to repair the building, and award a construction contract to perform the repairs. Full expenses are not known at this time, and $250,000 is only an estimate to start the assessment of the damage and initial design work. Staff will update the project budget once structural assessment and design are completed, and coordinate with insurance to ensure all expenses are reimbursed. -Street Maintenance (PE-86070) – The budget has been reduced by $132,987 annually to align with the California Department of Finance’s May 2023 updates for estimated 2023-24 Gas Tax Revenue. Gas Tax revenue can fluctuate; this reduction is not anticipated to impact work planned in this project over the 2024-2028 Capital Improvement Plan. Fiber Fund -Fiber Optics Network System Rebuild (FO-16000) – A technical correction that increases the budget by $0.4 million to $13.0 million in FY 2024 is recommended to align funding with Council’s approval of the total $26 million for the dark fiber rebuild project. -Fiber-to-the-Premises (FO-24000) – Funding in the amount of $8.0 million is recommended to be reallocated from FY 2024 to FY 2025, leaving $12.0 million in FY 2024 to align funding with the most updated project timeline. Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 13 Packet Pg. 824 of 911 1 9 1 0 Gas Fund -Gas Equipment and Tools (GS-13002) – A technical correction is recommended to increase the budget by $50,000 to $100,000 annually to align funding with Council’s approval of the FY 2024 Gas Financial Plan and ensure timely replacement of aging equipment. Vehicle Replacement & Maintenance Fund -Scheduled Vehicle and Equipment Replacement - Fiscal Year 2024 (VR-24000) – The budget is recommended to be increased by $80,000 to support the Fire Department’s purchase of a Utility Task Vehicle (UTV) designed for off-road rescue in areas that would otherwise only be accessible by foot. TABLE OF ORGANIZATION During budget hearings and in subsequent City Council meetings, the Finance Committee and City Council recommended staffing adjustments. A more detailed description of these actions is included in Attachment A, Exhibit 2, and an updated Table of Organization is included in Attachment A, Exhibit 4: •Add 1.00 Contracts Administrator to the Administrative Services Department •Add 1.00 Senior Human Resources Administrator to the Human Resources Department •Add 1.00 Senior Librarian to the Library Department •Add 1.00 Administrative Assistant to the City Manager’s Office •Add 2.00 Public Safety Dispatcher to the Police Department •Add 1.00 Assistant City Attorney to the Office of the City Attorney •Add 1.00 Senior Plan Check Engineer to the Planning and Development Services Department •Add 1.00 Senior Planner to the Office of Transportation •Add 0.75 FTE Coordinator Recreation Programs to the Community Services Department •Add 0.75 FTE Program Assistant I to the Community Services Department •Add/delete: add 1.00 Assistant Director Sustainability and Climate Action and 1.00 Engineer to the Public Works Department, offset by the deletion of 1.00 Principal Utilities Program Manager and 1.00 Senior Engineer •Reclassification of 2.50 FTE Facilities Technician to 2.50 FTE Airport Specialist II in the Public Works Department MUNICIPAL FEE SCHEDULE On May 9, 2023, the Finance Committee reviewed the FY 2024 Proposed Municipal Fee Schedule and recommended approval as outlined in CMR 2304-138613. Attachment A, Exhibit 5 provides a summary of all recommended changes including new fees, fees to be deleted, and fees changing by a factor other than the general rate of increase (GRI) as reviewed by the City Council on May 9, 2023. 13 5/9/2023 Finance Committee, Agenda Item #3, Municipal Fee Schedule Amendments, https://www.cityofpaloalto.org/files/assets/public/administrative-services/city-budgets/fy-2024-city- budget/proposed/municipal-fee-schedule-amendments-fy24.pdf Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 14 Packet Pg. 825 of 911 1 9 1 0 SUMMARY OF FISCAL YEAR 2024 RATE CHANGES (no action needed) An overview of the rate changes was reviewed and approved by the Utilities Advisory Commission (UAC) and Finance Committee in April 2023. These rate changes are included in the FY 2024 budget assumptions. This section references those changes for informational purposes only; a separate report recommending final rate changes will be considered by the City Council on June 19, 2023 (CMR 2302- 093914). •-5.0% rate change for Electric (recommended by UAC and Finance Committee); •4.9% CPI increase for Fiber (recommended by UAC and Finance Committee); •8.0% rate increase for Gas (recommended by UAC and Finance Committee); •0.0% rate change for Refuse; •4.9% CPI increase for Stormwater (recommended by UAC and Finance Committee); •9.0% rate change for Wastewater (recommended by UAC and Finance Committee); and •5.0% rate change for Water (recommended by UAC and Finance Committee) The size and timing of rate adjustments are impacted by current and future revenue requirements to purchase commodities, provide customer service, plan for and invest in capital infrastructure, and maintain adequate reserve levels. The Finance Committee tentatively approved the rate changes listed above including the -5.0% decrease for Electric rates due to receipt of the Bureau of Reclamation (CVPIA) Litigation Revenue; the 4.9% CPI increase for Fiber customers on the EDF-1 rate in accordance with the original dark fiber leasing agreement; the 8.0% increase for Gas to cover the substantial increases in Capital costs and to support regular main replacement; 4.9% CPI increase for Stormwater, consistent with the 2017 Storm Water Management Fee ballot measure, to keep fund revenues consistent with inflationary cost increases and to provide sufficient funds for planned Stormwater Management capital and operating expenditures; the 9.0% increase for Wastewater Collection due to increasing Capital costs in Wastewater Collection and at the Regional Water Quality Control Plant; and the 5.0% increase for Water, which consists of a 2.0% distribution increase and a 9.7% commodity cost pass-through increase from the San Francisco Public Utilities Commission (SFPUC). REVIEW OF REFERRAL ITEMS FROM THE FINANCE COMMITTEE During the Budget Hearings, certain items were approved that require a longer timeline to return to the City Council and are recommended to be placed in the “long-term parking lot.” The list below is reflective of the final referral items from the Budget Hearings that the City Council has directed staff to follow-up with additional work throughout FY 2024. 1.Human Services Resource Allocation Process (HSRAP) Funding Consider pegging HSRAP budget allocations to a benchmark, such as percentage of General Fund budgeted expenditures. 14 6/19/2023 City Council, https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1170 Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 15 Packet Pg. 826 of 911 1 9 1 0 2.Eucalyptus Tree Removal Study Refer to the City’s Stanford ad-hoc committee for discussions with Stanford on mitigation of fire risk to the City, University, and surrounding areas. RESOURCE IMPACT This report summarizes and seeks the City Council approval of the FY 2024 Operating and Capital Budgets, the supporting fee schedules, and table of organization in order to support the projections and appropriations included. The approval of the City Manager’s FY 2024 Capital and Operating Budget, as recommended to be amended in this report, would result in a projected General Fund Budget Stabilization Reserve of $54.3 million. At proposed expense levels of $269.0 million, after adjusting for the $10.1 million remaining in the Uncertainty Reserve, this BSR level is at 20.2%, slightly above the top of the Council’s recommended range of 15-20% of General Fund Expenditures. Exclusion of the Uncertainty Reserve for the two-year funding strategy and has been done to avoid unintentional inflation of the BSR. The projected changes to the fund balance for all other funds including Enterprise Funds, Internal Services Funds, Special Revenue Funds, and Capital Funds are outlined in Attachment A and accompanying exhibits and impacts to fund balance summarized as follows: Table 2: Resource Impact (Non-General Funds with Fund Balance Change) Fund Type Fund Name Fund Balance Change Capital Enterprise Internal Service Special Revenue STAKEHOLDER ENGAGEMENT The budget process is structured around public hearings conducted before City Council adoption to complete a detailed review of the budget documents and incorporate opportunities for community input in the decision-making process. The community was encouraged to engage with the budget process through scheduled public meetings with the Finance Committee and City Council, a community informational session with City staff, and direct emails to the City Manager and City Council. Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 16 Packet Pg. 827 of 911 1 9 1 0 Additionally, the City maintains a dedicated webpage for meeting materials and other budget information at www.cityofpaloalto.org/budget. ENVIRONMENTAL REVIEW Adoption of the City budget and associated actions is not a project under California Environmental Quality Act (CEQA) Guidelines Section 15378(b)(5) (organizational or administrative activities that will not result in direct or indirect physical changes in the environment). Attachments: •Attachment A – FY 2024 Budget Adoption Ordinance •Attachment A, Exhibit 1 – City Manager's Fiscal Year 2024 Proposed Operating & Capital Budgets & Municipal Fee •Attachment A, Exhibit 2 and 3 – Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets •Attachment A, Exhibit 4 – Table of Organization •Attachment A, Exhibit 5 – Fiscal Year 2024 Municipal Fee Changes •Attachment B – Revised Salary Schedule for the Management and Professionals Group •Attachment C – Relevant Stanford Programs and Services Item 29 Item 29 Staff Report Item 29: Staff Report Pg. 17 Packet Pg. 828 of 911 ATTACHMENT A ORDINANCE NO. XXXX ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO ADOPTING THE BUDGET FOR FISCAL YEAR 2024 SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 6(g) of Article IV of the Charter of the City of Palo Alto and Chapter 2.28 of the Palo Alto Municipal Code, the City Manager has prepared and submitted to the City Council, by letter of transmittal, a budget proposal for Fiscal Year 2024; and B. Pursuant to the provisions of Section 12 of Article III of the Charter, the Council did, on June 19, 2023, hold public hearings on the budget after publication of notice in accordance with Section 2.28.070 of the Palo Alto Municipal Code; and C. In accordance with the provisions of Chapter 8 of Division 1, of Title 7, commencing with Section 66016 of the Government Code, as applicable, the Council did on June 19, 2023, hold a public hearing on the proposed amendments to the Municipal Fee Schedule, after publication of notice and after availability of the data supporting the amendments was made available to the public at least 10 days prior to the hearing. SECTION 2. Pursuant to Chapter 2.28 of the Palo Alto Municipal Code, the following documents, collectively referred to as “the budget” are hereby approved and adopted for Fiscal Year 2024: (a) The budget document (Exhibit “1”) containing the proposed operating and capital budgets submitted on May 1, 2023, by the City Manager for Fiscal Year 2023, entitled “City of Palo Alto - City Manager’s Fiscal Year 2024 Proposed Budget” covering General Government Funds, Enterprise Funds, Special Revenue Funds, and Internal Service Funds, a copy of which is on file in the Department of Administrative Services, to which copy reference is hereby made concerning the full particulars thereof, and by such reference is made a part hereof; and (b) The Amendments to the City Manager’s Fiscal Year 2024 Proposed Budget, attached hereto as Exhibit “2”, Exhibit “3”, and Exhibit “4” and made a part hereof; and (c) Changes and revised pages in the Table of Organization, as displayed on pages 491 through 512 in “Exhibit 1,” and amended in Exhibit “4” made a part hereof; and Item 29 Attachment A - FY 2024 Budget Adoption Ordinance Item 29: Staff Report Pg. 18 Packet Pg. 829 of 911 ATTACHMENT A (d) Fee changes of the Municipal Fee Schedule attached hereto as Exhibit “5”. SECTION 3. The sums set forth in the budget for the various departments of the City, as herein amended, are hereby appropriated to the uses and purposes set forth therein. SECTION 4. All expenditures made on behalf of the City, directly or through any agency, except those required by state law, shall be made in accordance with the authorization contained in this ordinance and the budget as herein amended. SECTION 5. Appropriations for the Fiscal Year 2023 that are encumbered by approved purchase orders and contracts for which goods or services have not been received or contract completed, and/or for which all payments have not been made, by the last day of the Fiscal Year 2023 shall be carried forward and added to the fund or department appropriations for Fiscal Year 2024. SECTION 6. The City Manager is authorized and directed to make changes in the department and fund totals and summary pages of the budget necessary to reflect the amendments enumerated and aggregated in the budget as shown in Exhibit “2”, Exhibit “3”, and Exhibit “4” and the Fiscal Year 2023 appropriations carried forward as provided in Section 5. SECTION 7. As specified in Section 2.04.320 of the Palo Alto Municipal Code, a majority vote of the City Council is required to adopt this ordinance. SECTION 8. As specified in Section 2.28.140(b) of the Palo Alto Municipal Code, the Council of the City of Palo Alto hereby delegates the authority to invest the City’s funds to the Director of Administrative Services, as Treasurer, in accordance with the City’s Investment Policy for Fiscal Year 2024. SECTION 9. The Council of the City of Palo Alto adopts the changes to the Municipal Fee Schedule as set forth in Exhibit “5”. The amount of the new or increased fees and charges is no more than necessary to cover the reasonable costs of the governmental activity, and the manner in which those costs are allocated to a payer bears a fair and reasonable relationship to the payer’s burden on, or benefits received from, the governmental activity. All new and increased fees shall go into effect immediately; provided that pursuant to Government Code Section 66017, all Planning & Community Environment Department fees relating to a “development project” as defined in Government Code Section 66000 shall become effective sixty (60) days from the date of adoption. SECTION 10. Fees in the Municipal Fee Schedule are for government services provided directly to the payor that are not provided to those not charged. The amount of this fee does not Item 29 Attachment A - FY 2024 Budget Adoption Ordinance Item 29: Staff Report Pg. 19 Packet Pg. 830 of 911 ATTACHMENT A exceed the reasonable costs to the City of providing the services. Consequently, pursuant to Art. XIII C, Section 1(e)(2), such fees are not a tax. SECTION 11. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 12. The Council of the City of Palo Alto hereby finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: Enter Date Here AYES: NOES: ABSENT: ABSTENTIONS: NOT PARTICIPATING: ATTEST: _________________________ ___________________________ City Clerk Mayor APPROVED AS TO FORM: APPROVED: City Attorney City Manager Director of Administrative Services Item 29 Attachment A - FY 2024 Budget Adoption Ordinance Item 29: Staff Report Pg. 20 Packet Pg. 831 of 911 Fiscal Year 2024 City Manager’s Proposed Operating & Capital Budgets and Municipal Fees These documents were originally distributed on May 1, 2023. Printed copies of the Proposed Budgets are available upon request for $46 per book (FY 2024 fee). Printed copies of the Municipal Fees are available upon request for $10 per book. These documents may be viewed at any City of Palo Alto Library or the City’s website: www.cityofpaloalto.org/Departments/Administrative-Services/City- Budget Changes to the Municipal Fee Schedule were distributed in Finance Committee Packet on May 9, 2023. The City Manager’s Staff Report (#2304-1386) can be viewed on the City’s website: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=12595 In addition, various at places memorandum and presentations were presented throughout the Finance Committee Hearings in May 2023 to provide additional information. These documents can be found on the City’s budget website under “FY 2024 Budget Process”: www.cityofpaloalto.org/Departments/Administrative- Services/City-Budget ATTACHMENT A, EXHIBIT 1 Item 29 Attachment A, Exhibit 1 - City Manager's Fiscal Year 2024 Proposed Operating & Capital Budgets & Municipal Fee Item 29: Staff Report Pg. 21 Packet Pg. 832 of 911 ATTACHMENT A, EXHIBIT 2 FTE Revenues Expenses Department Adjustment Adjustment Adjustment GENERAL FUND (102 & 103) Administrative Services Increase Purchasing Support Consistent with Finance Committee direction, this action adds a 1.00 FTE Contract Administrator position to the Purchasing Division of Administrative Services. The procurement team is instrumental to the beginning of most investments recommended by the Finance Committee and City Council, supporting the public solicitation process for professional services and capital investment. An additional resource of 1.00 Contract Administrator will allow for capacity to address the increased workload associated with citywide FY 2024 actions. 1.00 ‐$ 200,000$ Administrative Services Measure K Revenue/Business Tax Support and Administration As recommended in CMR 2304‐1337, presented to Council on June 19, 2023, this action recognizes and appropriates funding for Business Tax Support and Administration. Funding will be used for both contract services for business tax consulting as well as staff resources to administer the business tax program. In FY 2024 overstrength positions will be used to support the program and determine the appropriate position classifications needed. Staffing adjustments to the Table of Organization will be formalized as part of the FY 2025 budget process. Measure K revenue will be recognized and appropriated to fund administration of collection and reporting of the business tax revenue. 359,500$ 359,500$ City Attorney's Office Increase Legal Resources Consistent with Finance Committee direction, this action adds a 1.00 FTE Assistant City Attorney position to the City Attorney's Office. This position will support future priority projects such as the Zoning Code update, San Antonio Coordinated Area Plan/Concept Plan, as well as providing necessary resources for the implementation of Housing Element and Short Term Rental Regulations. 1.00 ‐$ 290,000$ City Manager's Office Economic Development Support Consistent with Finance Committee's direction, this action adds a 1.00 FTE Administrative Assistant position to the Economic Development Division of the City Manager's Office. This position will increase the scope of the economic development activities the City is able to pursue and increase customer service to local businesses and residents. 1.00 ‐$ 97,000$ Community Services United Nations Association Film Festival (UNAFF) Support Consistent with Finance Committee's direction, this action adds one‐time funding to support the UNAFF that is held in Palo Alto annually. The films presented cover topics such as environmental sustainability and human rights, which align with many of the City’s future goals and core ideals, providing a valuable service to the community. ‐$ 25,000$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 22 Packet Pg. 833 of 911 ATTACHMENT A, EXHIBIT 2 FTE Revenues Expenses Department Adjustment Adjustment Adjustment GENERAL FUND (102 & 103) CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET Community Services Other Revenue/Junior Museum and Zoo (JMZ) Access Coordinator Staffing Consistent with CMR 2303‐1200, which was approved by Council on May 15, 2023, this action adds a 0.48 FTE Staff Specialist position to function as an Access Coordinator in the JMZ. This position will identify surrounding communities that have cultural or economic barriers to utilizing the services of the Museum. This position will forge new, and strengthen existing, relationships with the purpose of developing strategies to increase the number of people that utilize the Museum’s services. Funding for the position will be provided to the City by the Friends of the JMZ through FY 2025. 0.48 37,500$ 37,500$ Community Services Art Center Visitor Staffing and Art Center Installation Crew Consistent with Finance Committee's direction, this action adds a 0.75 FTE Program Assistant I position for Art Center visitor services and three 0.09 FTE Staff Specialist positions (0.27 FTE total) for an Art Center installation crew. Visitor services staffing will allow for increased hours at the art center as well as a higher level of customer support such as class registrations and booking facility rentals. The increased hours of operation for the Art Center are anticipated to generate $10,000 in additional revenue annually. The level of staffing for the Art Center installation crew is not expected to provide support for the Public Art Program, but it will enhance the quality of services for the Art Programming at the Art Center. 1.02 10,000$ 97,000$ Community Services Therapeutics Recreation Program Consistent with Finance Committee's direction, this action adds a 0.75 FTE Coordinator of Recreation Programs that will evaluate the Department's existing programming and develop a Therapeutic Recreation Plan that will outline the City's strategy to providing inclusion services moving forward. 0.75 ‐$ 90,000$ Community Services Homeless Outreach Funding Consistent with CMR 2305‐1588, presented to Council on June 19, 2023, this action increases funding for homeless outreach services to unhoused individuals for a two‐year period. Services will include regular street outreach to locate and engage with unhoused individuals where they are in the Palo Alto area, to build trust, increase awareness of services and resources, improve neighbor relations, act as a resource to local businesses, and, when feasible, connect them with support services including shelter, housing, government benefits, mental health, substance abuse treatment, or employment training among other needs. Additionally, a small portion of the outreach team’s time will be spent on Stanford University land as part of a revenue agreement between Stanford and the City. Revenue from the Permanent Local Housing Allocation (PLHA) and Stanford University will offset the costs associated with these services. 141,000$ 141,000$ Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 23 Packet Pg. 834 of 911 ATTACHMENT A, EXHIBIT 2 FTE Revenues Expenses Department Adjustment Adjustment Adjustment GENERAL FUND (102 & 103) CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET Community Services Supplemental Human Services Resource Allocation Process (HSRAP) Funding Consistent with Finance Committee's direction, this action allocates an additional $150,000 in funding to HSRAP in addition to an increase of $50,000 which was already a part of the FY 2024 Proposed Budget. This would increase the total HSRAP allocation by $200,000 for a total of $851,035 in FY 2024 and augment HSRAP funding for FY 2025 by $200,000. The Human Relations Commission (HRC) has outlined spending plans (up to $200,000) if additional funds for HSRAP were proposed during FY 2024 budget process. The contingency plan was approved on April 27, 2023, by the HRC. ‐$ 150,000$ Community Services Cubberley Facility Maintenance and Upkeep Consistent with Finance Committee direction, costs for custodial staffing, landscaping services, and routine maintenance contracts will be shifted from the Cubberley Infrastructure Fund to the General Fund. Funding for custodial staffing and landscaping services will be shifted to the Community Services Department, while the maintenance contracts will be shifted to the Public Works Department. 4.48 (58,558)$ 463,629$ Fire Revenue from Other Agencies/ Transfer to Vehicle Replacement & Maintenance Fund for Utility Task Vehicle Consistent with Finance Committee's direction, this action allocates funding for a transfer to the Vehicle Replacement & Maintenance Fund for the purchase of a versatile, utility vehicle designed for off road rescue in areas that would be otherwise inaccessible by foot. The purchase of this vehicle will be partially offset with revenue from Stanford University per the fire services agreement between the University and the City. This vehicle will allow the Department to conduct rescues in variable terrain and events. 13,000$ 80,000$ Human Resources Increase Recruitment Support Consistent with Finance Committee direction, this action adds 1.00 Senior Human Resources Administrator and two 0.48 FTE Management Specialists (0.96 FTE total) in support of citywide recruitment efforts. These staff will increase capacity and reduce the time to fill vacant positions by processing new hire documentation, providing support to applicants and hiring managers, and coordinating logistics such as interviews and examinations. The Senior Human Resources Administrator can additionally collaborate closely with department liaisons on analyzing and calculating salary offers, performing and investigating background checks, and coordinating work with consultants such as external recruiters. 1.96 ‐$ 190,000$ Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 24 Packet Pg. 835 of 911 ATTACHMENT A, EXHIBIT 2 FTE Revenues Expenses Department Adjustment Adjustment Adjustment GENERAL FUND (102 & 103) CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET Library Increase Library Hours Consistent with Finance Committee direction, this action adds 1.00 FTE Senior Librarian position to increase open hours at the Children’s Library branch by offering an additional sixth open day per week on Mondays. This represents an increase from five open days per week at the Children's, Downtown, and College Terrace Libraries, and seven open days per week at the Mitchell Park and Rinconada Libraries. Annual open hours are expected to increase from 12,688 to 13,104 and bring open hours closer to the pre‐ pandemic level of 13,520. 1.00 ‐$ 145,000$ Non‐Departmental Council Priorities Reserve Consistent with Finance Committee's direction, this action reduces the Reserve set aside as part of the FY 2024 Proposed Budget. The funding will be allocated towards projects and initiatives recommended by the Committee as part of the FY 2024 Budget review process and included in this memorandum. ‐$ (2,250,000)$ Non‐Departmental LifeMoves Operations Funding Consistent with Finance Committee's direction, funding appropriated in FY 2024 for LifeMoves Operations will be allocated toward the Homekey Facilities (PE‐24005) capital project in FY 2024. Additional funding is needed to complete the capital work for the emergency shelter at the former Los Altos Treatment Plant (LATP). Since the site is not anticipated to be complete in FY 2024, operations funding will not be needed. The City is still committed to providing an estimated $7.0M ($1.0M annually for seven years) in operations funding, which will commence once construction is completed. ‐$ (1,000,000)$ Non‐Departmental Measure K Revenue/LifeMoves Construction Homekey Facilities (PE‐24005) Consistent with Finance Committee direction, this action recognizes $0.5 million of Measure K revenue for housing and homeless services to fund a portion of the Homekey Facilities capital project (PE‐24005). Savings from funding appropriated for LifeMoves operating costs is also being used to support this action. A total of $2.5 million will be transferred from the General Fund to the Capital Improvement Fund for the Homekey Facilities Project (PE‐24005). 500,000$ 2,500,000$ Non‐Departmental Neighbors Abroad Program Consistent with Finance Committee's direction, this action adds ongoing funding to continue support of Neighbors Abroad, a Palo Alto based non‐profit that works to foster a sense of connectedness with the City’s eight international Sister Cities. Neighbors Abroad works with residents of Palo Alto and surrounding communities to promote connections and celebrate differences through a robust offering of year‐round programs. The focus of Neighbors Abroad is on exchange programs, cultural enrichment, sustainability initiatives, and commerce. ‐$ 20,000$ Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 25 Packet Pg. 836 of 911 ATTACHMENT A, EXHIBIT 2 FTE Revenues Expenses Department Adjustment Adjustment Adjustment GENERAL FUND (102 & 103) CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET Non‐Departmental Transfer to Capital Improvement Fund A technical adjustment is needed to correctly categorize funding transferred to the Capital Improvement Fund for Transient Occupancy Tax (TOT) Revenue designated for capital improvements. As part of the FY 2024 Proposed Budget, a transfer to the Capital Improvement Fund of $0.5 million was incorrectly categorized as a transfer to the General Fund. This action corrects this and increases the transfer to the Capital Improvement Fund by $0.5 million from $11.9 million to $12.4 million. The transfer was categorized correctly in the Capital Improvement Fund, so this only changes expenses in the General Fund. ‐$ 536,132$ Office of Transportation Car Free Streets Consistent with Finance Committee direction, this action adds funding for a consultant‐led study to inform the development of a permanent car‐free streets ordinance. ‐$ 250,000$ Office of Transportation Sustainable Transportation Modes and Staffing Consistent with Finance Committee direction, this action adds 1.00 Senior Planner position to focus on projects which improve road safety for sustainable transportation modes and vulnerable road users. The position would perform time‐critical grant writing, project management, and community engagement for the grant‐ funded Safe Streets for All (SS4A) Program and lay the groundwork for a Vision Zero/Safe Systems Program. 1.00 ‐$ 123,000$ Office of Transportation Palo Alto Transportation Management Authority (PATMA) Citywide Expansion Consistent with Finance Committee direction, this action shifts $25,000 of the existing $200,000 PATMA contract from the University Avenue Parking Fund to the General Fund in order to expand PATMA services such as outreach, transit pass distribution, and transit pass monitoring citywide. ‐$ 25,000$ Planning and Development Services Bird Safe Glass/Wildlife Protection Consistent with Finance Committee direction, this action adds funding for the estimated cost of a consultant to initiate development of ordinances to protect natural habitats such as bird safe glass and wildlife protection from light pollution. Project activities will include outreach and ordinance preparation, which would be completed with current resources though impact prioritization of other initiatives. Additional resources are required to advance this without impacting other initiatives. ‐$ 75,000$ Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 26 Packet Pg. 837 of 911 ATTACHMENT A, EXHIBIT 2 FTE Revenues Expenses Department Adjustment Adjustment Adjustment GENERAL FUND (102 & 103) CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET Planning and Development Services Measure K Revenue/San Antonio Coordinated Area Plan (CAP) Consistent with Finance Committee direction, this action provides funding to begin the San Antonio Road Coordinated Area Plan. This represents a modified version of the Tier 2 proposal “Construct preliminary schedule for starting new coordinated area plans for San Antonio Road, California Ave, Downtown, and El Camino Real” to begin in FY 2024 with $50,000 and directed staff to explore a potential collaboration opportunity with California Polytechnic State University students to draft a working concept of a San Antonio CAP. This initial funding will support related travel, research, consultant and/or part‐time staff for these efforts. The working concept is a starting point for the larger CAP process, which is still estimated at $700,000 over three to four years, although the ultimate cost of each plan will depend on size and complexity. Revenue from Measure K for housing and homeless services will be recognized to offset these costs. 50,000$ 50,000$ Planning and Development Services Downtown Housing Plan Consistent with Finance Committee direction, this action adds funding to augment current resources of $800,000 in grant funding and $150,000 per year for four years in alignment with initial results from a public procurement solicitation. Projects costs may escalate up to $1.4 million based on the request for proposals (RFP) responses requiring this additional funding to complete this project (average response cost was $1.1 million for a minimum cost increase of $300,000). Current grant funds expire in 2025 though if work extends beyond that period, staff will apply for an extension. Should this project not be completed, the City is not at risk of refunding grant funds already spent; however, would need to return any unspent portion. Staff is in the process of review and evaluation of the scope of the proposers. ‐$ 500,000$ Planning and Development Services Seismic & Resiliency Ordinance (Additional Funding) Consistent with Finance Committee direction, this action adds funding to estimated resources necessary to complete a seismic and resiliency study and ordinance update. Council approved $150,000 for the imitation of a study to develop a seismic and resiliency ordinance. The procurement process is currently underway and the total cost will be determined once this process is complete. ‐$ 75,000$ Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 27 Packet Pg. 838 of 911 ATTACHMENT A, EXHIBIT 2 FTE Revenues Expenses Department Adjustment Adjustment Adjustment GENERAL FUND (102 & 103) CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET Planning and Development Services Permitting and Inspections Operations Consistent with Finance Committee direction, this action adds 1.00 Senior Plan Check Engineer to provide additional resources while the Development Center (DC), under the management of the Planning and Development Services Department, restructures the delivery of services. In FY 2024, PDS will reimagine how resources are allocated to support the operations of the DC. This position would be a dedicated resource to facilitate the transition to outside plan check for the majority of plan reviews with staff dedicated to counter service and quality control. This position would support in‐ person counter operations Monday ‐ Thursday and virtual on Friday; perform priority plan check reviews (electrification permits; accessory dwelling units (ADUs); affordable housing projects; and City projects); perform quality control of consultant plan reviews; and work with applicants and coordinators to facilitate counter interactions. Eventually it is expected this position would be 100% fee funded by the Development Center once transition work is complete. 1.00 101,240$ 101,240$ Police Department Public Safety Dispatcher Staffing Consistent with Finance Committee direction, this action adds two 1.00 FTE Public Safety Dispatchers (2.00 FTE total) to the Dispatching Servicing Team due to the high volume of calls for service. The City’s current staffing model has created a workload that is expected to be unsustainable long‐term. Current staffing levels are less than the departmental recommended minimum staffing model and established Department policy in order to reach pre‐pandemic levels. Palo Alto dispatchers require more specialized training due to answering calls to service to police, fire, and medical emergencies, in which some neighboring jurisdictions, dispatchers would only answer calls from one or two service areas. Also, the additional staffing could potentially reduce overtime costs. The cost of these positions will be partially offset with revenue from Stanford University per the public safety communications services agreement between the University and the City. 2.00 50,426$ 317,426$ Public Works Sustainability and Climate Action Plan (S/CAP) Studies Consistent with Finance Committee direction, this action adds funding to commission specialized services to complete three studies as outlined in the current draft three‐year S/CAP. These studies include strategic plans for electric vehicles and reliability and resiliency and a workplan to discuss resource needs and funding opportunities. ‐$ 600,000$ Public Works Airport Noise Reduction Consistent with Finance Committee direction, this action provides funding for consultant services to engage in the San Francisco Airport's (SFO) Ground Based Augmentation System (GBAS) process and other potential noise‐reducing opportunities by attending meetings, reviewing and commenting on technical information from SFO, and providing recommendations to City staff. ‐$ 75,000$ Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 28 Packet Pg. 839 of 911 ATTACHMENT A, EXHIBIT 2 FTE Revenues Expenses Department Adjustment Adjustment Adjustment GENERAL FUND (102 & 103) CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET Public Works Automatic Fire Extinguisher Systems Inspection, Testing, and Repair Services Consistent with CMR 2303‐1078, which was approved by Council on May 15, 2023, this action adds ongoing annual funding in the Public Works Department in the amount of $95,825 annually for a three‐year General Services contract with Johnson Controls Fire Protection to provide automatic fire extinguishing systems inspection, testing, and repair services. ‐$ 95,825$ Public Works Cubberley Facility Maintenance and Upkeep Consistent with Finance Committee direction, costs for custodial staffing, landscaping services, and routine maintenance contracts will be shifted from the Cubberley Infrastructure Fund to the General Fund. Funding for custodial staffing and landscaping services will be shifted to the Community Services Department, while the maintenance contracts will be shifted to the Public Works Department. ‐$ 100,813$ Fund Balance Adjustment to Fund Balance (Budget Stabilization Reserve) This action adjusts the fund balance to offset adjustments recommended in this report. ‐$ (3,355,957)$ GENERAL FUND (102 & 103) SUBTOTAL 16.69 1,204,108$ 1,204,108$ Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 29 Packet Pg. 840 of 911 ATTACHMENT A, EXHIBIT 2 FTE Revenues Expenses Department Adjustment Adjustment Adjustment CAPITAL IMPROVEMENT FUNDS CAPITAL IMPROVEMENT FUND (471) Capital Capital Improvement Project Amendments to Proposed Reappropriations This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2023 to FY 2024, as outlined in Attachment A, Exhibit 3. Projects with other recommended adjustments are detailed below. 4,918,192$ 15,242,254$ Capital Transfer from Gas Tax Fund/Street Maintenance (PE‐86070) This action reduces the transfer from the Gas Tax Fund and the Street Maintenance project's budget by $132,987 annually to align with the California Department of Finance’s May 2023 updates for estimated 2023‐24 Gas Tax Revenue. Gas Tax revenue can fluctuate; this reduction is not anticipated to impact work planned in this project over the 2024‐2028 Capital Improvement Plan. (132,987)$ (132,987)$ Capital Mitchell Park Library Repairs (PE‐24006) A vehicular accident in January 2023 damaged the Mitchell Park Library building. Due to the extent of the damages, a new capital project is recommended to hire a structural consultant to review the impact zone and structural impact, a design consultant to prepare construction drawings to repair the building, and award a construction contract to perform the repairs. Full expenses are not known at this time, and $250,000 is only an estimate to start the assessment of the damage and initial design work. Staff will update the project budget once structural assessment and design are completed, and coordinate with insurance to ensure all expenses are reimbursed. ‐$ 250,000$ Capital Transfer from General Fund/Homekey Facilities (PE‐24005) Consistent with Finance Committee direction, this action transfers a total of $2.5M (including $0.5 million of Measure K revenue for housing and homeless services and $2.0 million of LifeMoves operations savings) from the General Fund to the Capital Improvement Fund for the Homekey Facilities Project (PE‐24005). 2,500,000$ 2,500,000$ Fund Balance Adjustment to Fund Balance (Infrastructure Reserve) This action adjusts the fund balance to offset adjustments recommended in this report. ‐$ (10,574,062)$ CAPITAL IMPROVEMENT FUND (471) SUBTOTAL 0.00 7,285,205$ 7,285,205$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 30 Packet Pg. 841 of 911 ATTACHMENT A, EXHIBIT 2 FTE Revenues Expenses Department Adjustment Adjustment Adjustment CAPITAL IMPROVEMENT FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET CUBBERLEY INFRASTRUCTURE FUND (472) Capital Capital Improvement Project Amendments to Proposed Reappropriations This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2023 to FY 2024, as outlined in Attachment A, Exhibit 3. Projects with other recommended adjustments are detailed below. ‐$ 826,222$ Community Services/ Public Works Cubberley Facility Maintenance and Upkeep Consistent with Finance Committee direction, costs for custodial staffing, landscaping services, and routine maintenance contracts will be shifted from the Cubberley Infrastructure Fund to the General Fund. Funding for custodial staffing and landscaping services will be shifted to the Community Services Department, while the maintenance contracts will be shifted to the Public Works Department. (4.48)‐$ (623,000)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. ‐$ (203,222)$ CUBBERLEY INFRASTRUCTURE FUND (472) SUBTOTAL (4.48)‐$ ‐$ Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 31 Packet Pg. 842 of 911 ATTACHMENT A, EXHIBIT 2 FTE Revenues Expenses Department Adjustment Adjustment Adjustment ENTERPRISE FUNDS AIRPORT FUND (530) Public Works Reclassification of Facilities Technician to Airport Specialist II This action reclassifies 2.50 FTE Facilities Technician to 2.50 FTE Airport Specialist II. It is recommended to align the classification title with the most recent updates in Service Employees International Union (SEIU) agreement (CMR 2301‐0719). There are no cost implications to this adjustment. 0.00 ‐$ ‐$ AIRPORT FUND (530) SUBTOTAL 0.00 ‐$ ‐$ ELECTRIC FUND (513 & 523) Capital Capital Improvement Project Amendments to Proposed Reappropriations This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2023 to FY 2024, as outlined in Attachment A, Exhibit 3. Projects with other recommended adjustments are detailed below. ‐$ 4,820,190$ Capital Transfer to Capital Improvement Fund This action reappropriates funding for a transfer to the Citywide Electric Charger Infrastructure Installation capital project (PF‐ 23000) to ensure funding is available to continue work on the project in FY 2024 as approved by the Council. ‐$ 20,000$ Utilities Sustainability and Climate Action Plan (S/CAP) Staffing Plan Alignment Staff recommends a realignment of staffing to oversee the S/CAP staffing resources to better support this Council priority and the upcoming three‐year workplan. Recently, the Council approved the addition of two staff positions, 1.00 Senior Engineer and 1.00 Principal Resource Planner in the Public Works and Utility Departments. Staff recommends the elimination of these positions offset by the addition of 1.00 Assistant Director Sustainability and Climate Action position and 1.00 Engineer position in the Public Works Department. This will consolidate and unify resources between these departments. This action is cost neutral in FY 2024. 0.00 ‐$ ‐$ Utilities Northern California Power Agency (NCPA) Revenue Adjustment This action is a technical correction to align revenue from the NCPA as related to the litigation of the Central Valley Project Improvement Act (CVPIA) operated by the U.S. Bureau of Reclamation. Previously this revenue was estimated to be received by the City in FY 2024, but it was received in FY 2023. (24,000,000)$ ‐$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. ‐$ (28,840,190)$ ELECTRIC FUND (513 & 523) SUBTOTAL 0.00 (24,000,000)$ (24,000,000)$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 32 Packet Pg. 843 of 911 ATTACHMENT A, EXHIBIT 2 FTE Revenues Expenses Department Adjustment Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET FIBER FUND (533) Capital Fiber Optics Network System Rebuild (FO‐16000) A technical correction that increases the project's budget by $0.4 million to $13.0 million in FY 2024 is recommended to align funding with Council’s approval of the total $26 million for the dark fiber rebuild project. ‐$ 400,000$ Capital Fiber‐to‐the‐Premises (FO‐24000) Funding in the amount of $8.0 million is recommended to be reallocated from FY 2024 to FY 2025, leaving $12.0 million in FY 2024 to align funding with the most updated project timeline. ‐$ (8,000,000)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. ‐$ 7,600,000$ FIBER FUND (533) SUBTOTAL 0.00 ‐$ ‐$ Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 33 Packet Pg. 844 of 911 ATTACHMENT A, EXHIBIT 2 FTE Revenues Expenses Department Adjustment Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET GAS FUND (514 & 524) Capital Capital Improvement Project Amendments to Proposed Reappropriations This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2023 to FY 2024, as outlined in Attachment A, Exhibit 3. Projects with other recommended adjustments are detailed below. ‐$ 8,545,513$ Capital Gas Equipment and Tools (GS‐13002) A technical correction is recommended to increase the project's budget by $50,000 to $100,000 annually to align funding with Council’s approval of the FY 2024 Gas Financial Plan and ensure timely replacement of aging equipment. ‐$ 50,000$ Utilities Sustainability and Climate Action Plan (S/CAP) Staffing Plan Alignment Staff recommends a realignment of staffing to oversee the S/CAP staffing resources to better support this Council priority and the upcoming three‐year workplan. Recently, the Council approved the addition of two staff positions, 1.00 Senior Engineer and 1.00 Principal Resource Planner in the Public Works and Utility Departments. Staff recommends the elimination of these positions offset by the addition of 1.00 Assistant Director Sustainability and Climate Action position and 1.00 Engineer position in the Public Works Department. This will consolidate and unify resources between these departments. This action is cost neutral in FY 2024. 0.00 ‐$ ‐$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. ‐$ (8,595,513)$ GAS FUND (514 & 524) SUBTOTAL 0.00 ‐$ ‐$ STORMWATER MANAGEMENT FUND (528) Capital Capital Improvement Project Amendments to Proposed Reappropriations This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2023 to FY 2024, as outlined in Attachment A, Exhibit 3. Projects with other recommended adjustments are detailed below. ‐$ 498,119$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. ‐$ (498,119)$ STORMWATER MANAGEMENT FUND (528) SUBTOTAL 0.00 ‐$ ‐$ Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 34 Packet Pg. 845 of 911 ATTACHMENT A, EXHIBIT 2 FTE Revenues Expenses Department Adjustment Adjustment Adjustment ENTERPRISE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET WASTEWATER TREATMENT FUND (526) Capital Capital Improvement Project Amendments to Proposed Reappropriations This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2023 to FY 2024, as outlined in Attachment A, Exhibit 3. Projects with other recommended adjustments are detailed below. 3,523,010$ 6,837,126$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. ‐$ (3,314,116)$ WASTEWATER TREATMENT FUND (526) SUBTOTAL 0.00 3,523,010$ 3,523,010$ WATER FUND (522) Capital Capital Improvement Project Amendments to Proposed Reappropriations This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2023 to FY 2024, as outlined in Attachment A, Exhibit 3. Projects with other recommended adjustments are detailed below. ‐$ (649,000)$ Utilities Sustainability and Climate Action Plan (S/CAP) Staffing Plan Alignment Staff recommends a realignment of staffing to oversee the S/CAP staffing resources to better support this Council priority and the upcoming three‐year workplan. Recently, the Council approved the addition of two staff positions, 1.00 Senior Engineer and 1.00 Principal Resource Planner in the Public Works and Utility Departments. Staff recommends the elimination of these positions offset by the addition of 1.00 Assistant Director Sustainability and Climate Action position and 1.00 Engineer position in the Public Works Department. This will consolidate and unify resources between these departments. This action is cost neutral in FY 2024. 0.00 ‐$ ‐$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. ‐$ 649,000$ WATER FUND (522) SUBTOTAL 0.00 ‐$ ‐$ Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 35 Packet Pg. 846 of 911 ATTACHMENT A, EXHIBIT 2 Revenues Expenses Department Adjustment Adjustment SPECIAL REVENUE FUNDS COMMUNITY CENTER IMPACT FEE FUND (211) Capital Transfer to Capital Improvement Fund This action reappropriates funding for a transfer to the Roth Building Rehabilitation Phase I capital project (PF‐23001) to ensure funding is available to continue work on the project in FY 2024 as approved by the Council. ‐$ 1,650,000$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. ‐$ (1,650,000)$ COMMUNITY CENTER IMPACT FEE FUND (211) SUBTOTAL ‐$ ‐$ COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) Planning & Development Services FY 2024 Annual Action Plan Allocation This action executes the FY 2024 Community Development Block Grant (CDBG) allocation from CMR 2302‐0980, approved by the City Council on May 2, 2023. These actions include CDBG Fund 232 recognition of revenue comprised of HUD funding and program income and appropriation of commensurate expenses to be allocated to non‐profit organizations per recommendations by the Human Relations Commission (HRC). 614,242$ 614,242$ Capital Transfer to Capital Improvement Fund This action reappropriates funding for a transfer to the Sidewalk Repairs capital project (PO‐89003) to ensure funding is available to continue work on the project in FY 2024 as approved by the Council. ‐$ 300,000$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. ‐$ (300,000)$ COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUND (232) SUBTOTAL 614,242$ 614,242$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 36 Packet Pg. 847 of 911 ATTACHMENT A, EXHIBIT 2 Revenues Expenses Department Adjustment Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET GAS TAX FUND (231) Non‐ Departmental Gas Tax Revenue Reduction/Transfer to Capital Improvement Fund for Street Maintenance (PE‐86070) This action decreases Gas Tax revenue estimates and decreases transfers to the CIP for the Street Maintenance Project (PE‐86070) based on the California Department of Finance's May 2023 updates for estimated 2023‐24 HUTA and RMRA‐SB1 taxes. (132,987)$ (132,987)$ GAS TAX FUND (231) SUBTOTAL (132,987)$ (132,987)$ LIBRARY IMPACT FEE FUND (212) Capital Transfer to Capital Improvement Fund This action reappropriates funding for a transfer to the Roth Building Rehabilitation Phase I capital project (PF‐23001) to ensure funding is available to continue work on the project in FY 2024 as approved by the Council. ‐$ 300,000$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. ‐$ (300,000)$ LIBRARY IMPACT FEE FUND (212) SUBTOTAL ‐$ ‐$ PARKS IMPACT FEE FUND (210) Capital Transfer to Capital Improvement Fund This action reappropriates funding for a transfer to the Rinconada Park Improvements capital project (PE‐08001) to ensure funding is available to continue work on the project in FY 2024 as approved by the Council. ‐$ 16,367$ Capital Transfer to Capital Improvement Fund This action reappropriates funding for a tr ansfer to the Roth Building Rehabilitation Phase I capital project (PF‐23001) to ensure funding is available to continue work on the project in FY 2024 as approved by the Council. ‐$ 350,000$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. ‐$ (366,367)$ PARKS IMPACT FEE FUND (210) SUBTOTAL ‐$ ‐$ Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 37 Packet Pg. 848 of 911 ATTACHMENT A, EXHIBIT 2 Revenues Expenses Department Adjustment Adjustment SPECIAL REVENUE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET STANFORD UNIVERSITY MEDICAL CENTER (SUMC) FUND (260) Capital Transfer to Capital Improvement Fund This action reappropriates funding for a transfer to the Roth Building Rehabilitation Phase I capital project (PF‐23001) to ensure funding is available to continue work on the project in FY 2024 as approved by the Council. ‐$ 2,000,000$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. ‐$ (2,000,000)$ STANFORD UNIVERSITY MEDICAL CENTER (SUMC) FUND (260) SUBTOTAL ‐$ ‐$ UNIVERSITY AVENUE PARKING PERMITS FUND (236) Office Of Transportation Palo Alto Transportation Management Authority (PATMA) Citywide Expansion Consistent with Finance Committee direction, this action shifts $25,000 of the existing $200,000 PATMA contract from the University Avenue Parking Fund to the General Fund in order to expand PATMA services such as outreach, transit pass distribution, and transit pass monitoring citywide. ‐$ (25,000)$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset the actions recommended in this report. ‐$ 25,000$ UNIVERSITY AVENUE PARKING PERMITS FUND (236) SUBTOTAL ‐$ ‐$ Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 38 Packet Pg. 849 of 911 ATTACHMENT A, EXHIBIT 2 Revenues Expenses Department Adjustment Adjustment INTERNAL SERVICE FUNDS GENERAL BENFITS FUND (687) Non‐ Departmental Charges to Other Funds / Healthcare and Pension Expense This net neutral action increases the estimate for charges to other funds by $1.4 million due to staffing increases approved as part of the FY 2024 Adopted Budget. During budget hearings, the Finance Committee and City Council recommended significant adjustments to the FY 2024 Proposed Budget to restore staffing in Community, Library, Public Safety, and Planning service areas, and the administrative staff necessary to support these functions. The General Benefits Fund acts as a pass‐through for pension and healthcare costs; therefore this action increases expenditures correspondingly. 1,425,657$ 1,425,657$ GENERAL BENFITS FUND (687) SUBTOTAL 1,425,657$ 1,425,657$ TECHNOLOGY FUND (682) Capital Capital Improvement Project Amendments to Proposed Reappropriations This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2023 to FY 2024, as outlined in Attachment A, Exhibit 3. Projects with other recommended adjustments are detailed below. ‐$ 25,657$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. ‐$ (25,657)$ TECHNOLOGY FUND (682) SUBTOTAL ‐$ ‐$ CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 39 Packet Pg. 850 of 911 ATTACHMENT A, EXHIBIT 2 Revenues Expenses Department Adjustment Adjustment INTERNAL SERVICE FUNDS CITY OF PALO ALTO RECOMMENDED AMENDMENTS TO THE CITY MANAGER'S FY 2024 PROPOSED BUDGET VEHICLE REPLACEMENT & MAINTENANCE FUND (681) Capital Capital Improvement Project Amendments to Proposed Reappropriations This action reflects the impact from adjustments to capital projects as a result of funds recommended to be reappropriated from FY 2023 to FY 2024, as outlined in Attachment A, Exhibit 3. Projects with other recommended adjustments are detailed below. ‐$ (23,068)$ Capital Transfer from the General Fund/Scheduled Vehicle and Equipment Replacement – Fiscal Year 2024 (VR‐24000) The project's budget is recommended to be increased by $80,000, funded by a transfer from the General Fund, to support the Fire Department’s purchase of a Utility Task Vehicle (UTV) designed for off‐road rescue in areas that would otherwise only be accessible by foot. 80,000$ 80,000$ Fund Balance Adjustment to Fund Balance This action adjusts the fund balance to offset adjustments recommended in this report. ‐$ 23,068$ 80,000$ 80,000$ VEHICLE REPLACEMENT & MAINTENANCE FUND (681) SUBTOTAL Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 40 Packet Pg. 851 of 911 Capital Improvement Plan FY 2023 Reappropriations to FY 2024 ATTACHMENT A, EXHIBIT 3 Project Title Project # Expense Reappropriation Adjustment (Proposed) Expense Reappropriation Adjustment (A2P) Expense Reappropriation Adjustment TOTAL Revenue Reappropriation Adjustment (Proposed) Revenue Reappropriation Adjustment (A2P) Revenue Reappropriation Adjustment TOTAL Americans With Disabilities Act Compliance PF‐93009 500,000 500,000 Animal Shelter Renovation PE‐19002 917,700 917,700 Art In Public Spaces AC‐86017 1,439,600 12,737 1,452,337 Athletic Courts Resurfacing PG‐06001 264,600 (5,016) 259,584 Baylands Comprehensive Conservation Plan PG‐17000 43,100 43,100 Benches, Signage, Walkways, Perimeter Landscaping, and Site Amenities PG‐06003 26,000 163,370 189,370 Building Systems Improvements PF‐01003 349,717 434,999 784,716 California Avenue District Gateway Signs PE‐17004 124,476 124,476 California Avenue Streetscape Update PL‐23000 100,000 (50,908) 49,092 Cameron Park Improvements PG‐14002 97,500 (1,687) 95,813 Churchill Avenue Enhanced Bikewa PL‐14000 2,776,100 2,776,100 Churchill Avenue/Alma Street Railroad Crossing Safety Improvements PL‐20000 3,845,900 (2,351,634) 1,494,266 3,845,900 3,845,900 City Bridge Improvements PE‐20001 416,461 416,461 City Facilities Assessment PE‐20002 30,000 30,000 City Facility Parking Lot Maintenance PE‐09003 199,000 199,000 City Hall Space Planning PE‐19000 241,373 330,000 571,373 Civic Center Electrical Upgrade & EV Charger Installation PE‐17010 720,399 15,000 735,399 Civic Center Fire Life Safety Upgrades PE‐18016 86,661 (86,661) ‐ Civic Center Waterproofing Study and Repairs PE‐15020 150,786 28,993 179,779 Curb and Gutter Repairs PO‐12001 111,600 7,023 118,623 Dog Park Installation and Renovation PG‐18001 144,500 144,500 144,500 144,500 Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection Equip.PL‐15002 2,419,102 2,419,102 Electric Charger Infrastructure Installation PF‐23000 260,000 20,000 280,000 260,000 20,000 280,000 Emergency Vehicle Traffic Signal Preemption System Pilo PL‐19000 26,000 26,000 Facility Interior Finishes Replacement PF‐02022 294,800 294,800 Fire Station 4 Replacement PE‐18004 160,034 160,034 Foothills Nature Preserve Boronda Lake Dock Replacement OS‐18000 210,000 210,000 Foothills Nature Preserve Dam Seepage Investigation and Repairs PE‐20000 25,066 25,066 Foothills Nature Preserve Improvements PE‐21000 350,000 92,000 442,000 Golf Course Net and Artificial Turf Replacement PG‐18000 730,000 40,000 770,000 Golf Reconfiguration & Baylands Athletic Center Improvements PG‐13003 168,000 168,000 JMZ Renovation AC‐18001 978,200 (59,664) 918,536 Library Automated Material Handling LB‐21000 763,198 763,198 540,000 540,000 Magical Bridge Playground Rubber and Synthetic Turf Resurfacing PE‐21003 85,935 85,935 Municipal Service Center A, B, & C Roof Replacement PF‐17000 256,876 256,876 Municipal Service Center Lighting, Mechanical, and Electrical Improvements PF‐16006 5,866,100 5,866,100 New California Avenue Area Parking Garage PE‐18000 786,684 786,684 New Downtown Parking Garage PE‐15007 5,448,600 5,448,600 5,448,600 5,448,600 New Public Safety Building PE‐15001 6,033,946 (1,974,773) 4,059,173 Newell Road/San Francisquito Creek Bridge Replacement PE‐12011 12,000,000 (3,200,000) 8,800,000 12,000,000 (3,200,000) 8,800,000 Off‐Road Pathway Resurfacing And Repair OS‐09001 142,236 142,236 Open Space Lakes And Pond Maintenance OS‐00002 38,000 69 38,069 Park and Open Space Emergency Repairs PG‐09002 18,845 18,845 Park Restroom Installation PG‐19000 20,228 20,228 Parking District Implementation PL‐15003 163,900 163,900 Parking Management and System Implementation PL‐16002 1,988 1,988 Performing Arts Venues Seat Replacement AC‐18000 80,457 3,453 83,910 Police Video Recording Systems Replacemen PD‐20000 119,999 119,999 Ramos Park Improvements PG‐14000 8,900 (2) 8,898 Rinconada Park Improvements PE‐08001 16,367 16,367 16,367 16,367 Robles Park Improvements PE‐18015 319,500 47,248 366,748 Roofing Replacement PF‐00006 145,630 1,564,999 1,710,629 Roth Building Rehabilitation Phase 1 PF‐23001 11,348,825 11,348,825 6,781,825 6,781,825 Safe Routes To School PL‐00026 819,817 819,817 San Francisquito Creek Joint Powers Authority Ongoing Creek Projects PE‐22000 5,914 5,914 Sidewalk Repairs PO‐89003 495,000 585,907 1,080,907 300,000 300,000 Sign Reflectivity Upgrade PO‐11000 26,037 26,037 Street Lights Condition Assessment PE‐13014 220,000 220,000 Street Lights Improvements PO‐05054 125,000 125,000 Street Maintenance PE‐86070 2,173,646 2,173,646 Thermoplastic Lane Marking and Striping PO‐11001 153,000 153,000 Traffic Signal and Intelligent Transportation Systems PL‐05030 750,000 750,000 750,000 750,000 Transportation and Parking Improvements PL‐12000 500,000 500,000 250,000 250,000 University Avenue Parking Improvements PF‐14003 149,318 149,318 47,663,820 15,242,254 62,906,074 22,239,000 4,918,192 27,157,192 CAPITAL IMPROVEMENT FUND Capital Improvement Fund Tota Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 41 Packet Pg. 852 of 911 Capital Improvement Plan FY 2023 Reappropriations to FY 2024 ATTACHMENT A, EXHIBIT 3 Project Title Project # Expense Reappropriation Adjustment (Proposed) Expense Reappropriation Adjustment (A2P) Expense Reappropriation Adjustment TOTAL Revenue Reappropriation Adjustment (Proposed) Revenue Reappropriation Adjustment (A2P) Revenue Reappropriation Adjustment TOTAL Cubberley Field Restroom CB‐17002 368,222 368,222 Cubberley Repairs CB‐17001 198,796 198,796 Cubberley Roof Replacements CB‐16002 1,552,600 458,000 2,010,600 1,552,600 1,552,600 1,751,396 826,222 2,577,618 1,552,600 1,552,600 Airport Temporary Office Buildings AP‐22001 321,500 321,500 Airport Zero Emission Vehicle Fleet Replacement Program AP‐23000 124,000 124,000 124,000 124,000 Automated Weather Observation System (AWOS)AP‐19000 88,000 88,000 79,200 79,200 533,500 533,500 203,200 203,200 115 kV Electric Intertie EL‐06001 250,000 250,000 Coleridge/Cowper/Tennyson 4/12kV Conversion EL‐14000 1,000,000 1,000,000 Colorado Distribution Feeder Outlet Replacement EL‐22002 300,000 300,000 Colorado Power Station Equipment Upgrades EL‐19001 800,000 800,000 Colorado Substation Site Improvements EL‐19002 990,000 990,000 East Meadow Circles 4/12kV Conversion EL‐17001 622,229 35,137 657,366 Electric Utility Geographic Information System EL‐02011 75,000 10,000 85,000 Foothills Rebuild (Fire Mitigation)EL‐21001 1,500,000 (60,000) 1,440,000 Inter‐substation Line Protection Rela EL‐17005 290,000 290,000 Rebuild Underground District 24 EL‐10006 482,000 (200,000) 282,000 Rebuild Underground District 26 EL‐16000 500,000 500,000 Smart Grid Technology Installation EL‐11014 5,280,089 5,280,089 Substation Breaker Replacement EL‐17002 1,090,000 1,090,000 Substation Facility Improvements EL‐89044 800,000 800,000 Substation Physical Securit EL‐16003 3,774,575 (245,036) 3,529,539 12,473,804 4,820,190 17,293,994 Gas Distribution System Improvements GS‐11002 305,796 200,000 505,796 Gas Main Replacement ‐ Project 24 GS‐14003 8,345,513 8,345,513 305,796 8,545,513 8,851,309 Corporation Way System Upgrades and Pump Station SD‐21000 3,000,000 119,195 3,119,195 Green Stormwater Infrastructure SD‐22001 2,066,351 (200,000) 1,866,351 1,216,351 1,216,351 Storm Drainage System Replacement And Rehabilitation SD‐06101 578,924 578,924 West Bayshore Road Pump Station SD‐20000 1,069,995 1,069,995 West Bayshore Road Trunk Line Improvements SD‐23000 819,400 819,400 6,955,746 498,119 7,453,865 1,216,351 1,216,351 Wastewater General Equipment and Tools WC‐13002 58,941 58,941 Wastewater System Improvements WC‐15002 599,501 599,501 658,442 658,442 Advanced Water Purification Facilit WQ‐19003 16,644,000 319,896 16,963,896 16,644,000 319,896 16,963,896 Headworks Facility Replacement WQ‐16002 4,757,000 4,757,000 4,757,000 4,757,000 Horizontal Levee Pilot WQ‐22001 203,473 203,473 Outfall Line Construction WQ‐19000 10,582,800 10,582,800 10,582,800 10,582,800 Plant Repair, Retrofit, and Equipment Replacement WQ‐19002 5,766,526 686,116 6,452,642 Primary Sedimentation Tank Rehabilitation WQ‐14003 2,628,000 2,628,000 Secondary Treatment Upgrades WQ‐19001 619,380 3,203,114 3,822,494 619,380 3,203,114 3,822,494 38,573,179 6,837,126 45,410,305 32,603,180 3,523,010 36,126,190 Water Distribution System Improvements WS‐11003 456,529 (105,000) 351,529 Water Main Replacement ‐ Project 28 WS‐14001 625,270 (65,000) 560,270 Water Main Replacement ‐ Project 29 WS‐15002 724,600 (130,000) 594,600 Water Meters WS‐80015 346,221 346,221 Water Regulation Station Improvements WS‐07000 307,036 (50,000) 257,036 Water System Supply Improvements WS‐11004 3,285,900 (14,000) 3,271,900 Water Tank Seismic Upgrade and Rehabilitation WS‐09000 6,863,007 (285,000) 6,578,007 12,608,563 (649,000) 11,959,563 City Council Chambers Upgrade TE‐19001 1,780,500 (9,590) 1,770,910 Computer Aided Dispatch (CAD) Upgrade TE‐23000 650,000 650,000 Enterprise Resource Planning Upgrade TE‐19000 989,000 989,000 Infrastructure Management System TE‐13004 144,360 144,360 Radio Infrastructure Replacement TE‐05000 259,900 259,900 Utilities Customer Bill System Improvements TE‐10001 150,570 35,247 185,817 Airport Enterprise Fund Tota Electric Fund Total CUBBERLEY INFRASTRUCTURE FUND AIRPORT FUND ELECTRIC FUND Cubberley Property Infrastructure Fund Tota GAS FUND STORMWATER MANAGEMENT FUN WASTEWATER COLLECTION FUND WASTEWATER TREATMENT FUND Gas Fund Total Stormwater Management Fund Tota Wastewater Collection Fund Tota Wastewater Treatment Fund Tota Water Fund Total WATER FUND TECHNOLOGY FUND Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 42 Packet Pg. 853 of 911 Capital Improvement Plan FY 2023 Reappropriations to FY 2024 ATTACHMENT A, EXHIBIT 3 Project Title Project # Expense Reappropriation Adjustment (Proposed) Expense Reappropriation Adjustment (A2P) Expense Reappropriation Adjustment TOTAL Revenue Reappropriation Adjustment (Proposed) Revenue Reappropriation Adjustment (A2P) Revenue Reappropriation Adjustment TOTAL 3,974,330 25,657 3,999,987 Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2020 VR‐20000 30,000 30,000 Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2021 VR‐21000 20,000 20,000 Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2022 VR‐22000 100,000 100,000 Scheduled Vehicle and Equipment Replacement ‐ Fiscal Year 2023 VR‐23000 2,114,502 (23,068) 2,091,434 2,264,502 (23,068) 2,241,434 127,763,078 36,123,013 163,886,091 57,814,331 8,441,202 66,255,533 VEHICLE REPLACEMENT & MAINTENANCE FUND All Funds Total Vehicle Replacement & Maintenance Fund Tota Technology Fund Total Item 29 Attachment A, Exhibit 2 and 3 - Amendments to the City Manager's Fiscal Year 2024 Proposed Operating and Capital Budgets Item 29: Staff Report Pg. 43 Packet Pg. 854 of 911 TABLE OF ORGANIZATION Table of Organization Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % General Fund Administrative Services Account Specialist 4.63 4.13 4.13 4.13 ——% Account Specialist-Lead 3.45 3.45 3.45 3.45 ——% Accountant 3.00 2.00 2.00 2.00 ——% Administrative Assistant 1.00 1.00 1.00 1.00 ——% Administrative Associate II 1.00 0.50 0.50 1.00 0.50 100.0% Administrative Associate III 1.00 1.00 1.00 1.00 ——% Assistant Director Administrative Services 1.65 1.65 1.65 1.65 ——% Buyer 1.00 2.00 2.00 2.00 ——% Chief Procurement Officer 1.00 1.00 1.00 1.00 ——% Contracts Administrator***2.70 1.70 2.70 3.70 1.00 37.0% Director Administrative Services/CFO 0.80 0.80 0.80 0.80 ——% Director Office of Management and Budget 1.00 1.00 1.00 1.00 ——% Management Analyst 2.00 2.00 2.00 2.00 ——% Manager Budget 2.00 2.00 2.00 2.00 ——% Manager Real Property 1.00 1.00 1.00 1.00 ——% Manager Revenue Collections 0.62 0.62 0.62 0.62 ——% Manager Treasury, Debt & Investments 0.60 0.60 0.60 0.60 ——% Manager, Finance 1.00 1.00 1.00 1.00 ——% Payroll Analyst 2.00 2.00 2.00 2.00 ——% Performance Auditor II 1.00 —————% Senior Accountant 3.00 3.00 3.00 3.00 ——% Senior Buyer 1.00 1.00 1.00 1.00 ——% Senior Management Analyst 2.30 2.30 2.30 2.30 ——% Storekeeper 1.00 1.00 2.00 2.00 ——% Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 44 Packet Pg. 855 of 911 TABLE OF ORGANIZATION Storekeeper-Lead 0.20 0.20 0.20 0.20 ——% Warehouse Supervisor 0.20 0.20 0.20 0.20 ——% Total Administrative Services 40.15 37.15 39.15 40.65 1.50 3.8% City Attorney Assistant City Attorney***3.00 3.00 4.00 4.00 ——% Chief Assistant City Attorney 1.00 1.00 1.00 1.00 ——% City Attorney 1.00 1.00 1.00 1.00 ——% Claims Investigator 1.00 1.00 1.00 1.00 ——% Deputy City Attorney 1.00 1.00 —0.50 0.50 —% Legal Fellow 1.00 1.00 1.00 1.00 ——% Secretary to City Attorney 1.00 1.00 1.00 1.00 ——% Senior Management Analyst 1.00 1.00 1.00 1.00 ——% Total City Attorney 10.00 10.00 10.00 10.50 0.50 5.0% City Auditor City Auditor 1.00 —————% Senior Performance Auditor 2.00 —————% Total City Auditor 3.00 —————% City Clerk Administrative Associate III 2.00 2.00 2.00 2.00 ——% Assistant City Clerk 1.00 1.00 1.00 2.00 1.00 100.0% City Clerk 1.00 1.00 1.00 1.00 ——% Deputy City Clerk 1.00 1.00 1.00 —(1.00)(100.0)% Total City Clerk 5.00 5.00 5.00 5.00 ——% City Manager Administrative Assistant***2.00 2.00 2.00 3.00 1.00 50.0% Assistant City Manager 1.00 1.00 1.00 1.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 45 Packet Pg. 856 of 911 TABLE OF ORGANIZATION Assistant to the City Manager 2.00 1.00 3.00 3.00 ——% Chief Communications Officer 1.00 1.00 1.00 1.00 ——% City Manager 1.00 1.00 1.00 1.00 ——% Deputy City Manager 1.00 1.00 1.00 1.00 ——% Executive Assistant to the City Manager 1.00 1.00 1.00 1.00 ——% Manager Communications 1.00 1.00 1.00 1.00 ——% Senior Management Analyst ——1.00 1.00 ——% Total City Manager 10.00 9.00 12.00 13.00 1.00 8.3% Community Services Administrative Assistant 1.00 1.00 1.00 1.00 ——% Administrative Associate III 1.00 —————% Assistant Director Community Services 2.00 1.00 1.00 2.00 1.00 100.0% Building Serviceperson***1.00 1.00 1.00 2.00 1.00 100.0% Building Serviceperson-Lead***0.60 0.60 0.60 2.00 1.40 233.3% Coordinator Recreation Programs***4.00 4.00 4.00 5.75 1.75 43.8% Director Community Services 1.00 1.00 1.00 1.00 ——% Division Manager Open Space, Parks & Golf*———1.00 1.00 —% Heavy Equipment Operator 0.07 —————% Inspector, Field Services 2.00 2.00 2.00 2.00 ——% Junior Museum & Zoo Educator*3.60 3.25 4.10 4.85 0.75 18.3% Management Analyst 1.00 1.00 1.00 1.00 ——% Management Assistant 1.00 1.00 1.00 1.00 ——% Manager Community Services 5.00 5.00 5.00 5.00 ——% Manager Community Services Senior Program 4.00 4.00 4.00 4.00 ——% Manager Human Services 1.00 1.00 1.00 1.00 ——% Park Maintenance Person 6.00 6.00 6.00 6.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 46 Packet Pg. 857 of 911 TABLE OF ORGANIZATION Park Maintenance-Lead 1.00 1.00 1.00 1.00 ——% Park Ranger 5.00 5.00 6.00 6.00 ——% Parks/Golf Crew-Lead 2.00 2.00 2.00 2.00 ——% Producer Arts/Science Program 12.00 11.00 12.25 9.50 (2.75)(24.4)% Program Assistant I***7.00 3.00 3.00 3.75 0.75 25.0% Program Assistant II 4.00 4.00 4.00 4.00 ——% Project Manager 0.10 0.10 0.10 0.10 ——% Senior Management Analyst 1.00 1.00 1.00 1.00 ——% Sprinkler System Representative 4.00 4.00 4.00 4.00 ——% Superintendent Community Services 2.00 2.00 2.00 2.00 ——% Superintendent Recreation 1.00 —————% Theater Specialist 2.00 2.00 2.00 5.00 3.00 150.0% WGW Heavy Equipment Operator —0.07 0.07 0.07 ——% Total Community Services 75.37 67.02 70.12 78.02 7.90 11.3% Fire 40-Hour Captain ——0.20 0.20 ——% 40-Hour Training Battalion Chief 1.00 1.00 1.00 1.00 ——% 40-Hour Training Captain 1.00 1.00 1.00 1.00 ——% Administrative Assistant 1.00 1.00 1.00 1.00 ——% Administrative Associate II 2.20 2.20 2.20 2.20 ——% Administrative Associate III ——0.20 0.20 ——% Battalion Chief 3.00 3.00 3.00 3.00 ——% Business Analyst 0.80 0.80 0.80 0.80 ——% Deputy Chief/Fire Marshal 0.05 0.05 ————% Deputy Director Technical Services Division 0.20 —0.20 0.20 ——% Deputy Fire Chief 2.00 1.00 2.00 2.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 47 Packet Pg. 858 of 911 TABLE OF ORGANIZATION Emergency Medical Service Director 1.00 1.00 1.00 1.00 ——% Emergency Medical Services Data Specialist 1.00 1.00 1.00 1.00 ——% Fire Apparatus Operator 26.00 26.00 26.00 26.00 ——% Fire Captain 21.00 20.00 20.00 20.00 ——% Fire Chief 1.00 1.00 1.00 1.00 ——% Fire Fighter 34.00 29.00 34.00 34.00 ——% Fire Fighter Trainee ——3.00 3.00 ——% Fire Inspector 0.80 0.40 0.40 2.40 2.00 500.0% Fire Marshal ——0.05 0.05 ——% Geographic Information System Specialist 0.50 0.50 0.50 0.50 ——% Hazardous Materials Inspector 0.30 0.30 0.70 0.70 ——% Senior Management Analyst 1.00 1.00 1.00 1.00 ——% Total Fire 97.85 90.25 100.25 102.25 2.00 2.0% Human Resources Administrative Assistant ———0.75 0.75 —% Assistant Director Human Resources 1.00 1.00 1.00 1.00 ——% Director Human Resources/CPO 1.00 1.00 1.00 1.00 ——% Human Resources Representative 3.00 2.00 2.00 4.00 2.00 100.0% Human Resources Technician 4.00 3.00 4.00 2.00 (2.00)(50.0)% Manager Employee Benefits 1.00 1.00 1.00 1.00 ——% Manager Employee Relations 1.00 1.00 1.00 1.00 ——% Senior Human Resources Administrator***3.00 3.00 3.00 4.00 1.00 33.3% Senior Management Analyst 2.00 2.00 2.00 2.00 ——% Total Human Resources 16.00 14.00 15.00 16.75 1.75 11.7% Library Administrative Assistant ———1.00 1.00 —% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 48 Packet Pg. 859 of 911 TABLE OF ORGANIZATION Administrative Associate III 1.00 —1.00 —(1.00)(100.0)% Assistant Director Library Services 1.00 —1.00 —(1.00)(100.0)% Business Analyst 1.00 1.00 1.00 —(1.00)(100.0)% Coordinator Library Programs 1.00 1.00 2.00 5.00 3.00 150.0% Director Libraries 1.00 1.00 1.00 1.00 ——% Division Head Library Services 1.00 1.00 1.00 2.00 1.00 100.0% Librarian 6.00 6.00 7.00 4.00 (3.00)(42.9)% Library Associate 7.00 6.00 6.00 10.00 4.00 66.7% Library Specialist 11.50 10.50 12.50 8.00 (4.50)(36.0)% Management Analyst 1.00 1.00 1.00 1.00 ——% Manager Library Services 3.00 3.00 3.00 3.00 ——% Senior Business Analyst ———1.00 1.00 —% Senior Librarian***8.00 6.00 6.00 8.00 2.00 33.3% Supervising Librarian 4.00 4.00 4.00 5.00 1.00 25.0% Total Library 46.50 40.50 46.50 49.00 2.50 5.4% Office of Emergency Services Director Office of Emergency Services 1.00 1.00 1.00 1.00 ——% Office of Emergency Services Coordinator 1.00 1.00 1.00 2.00 1.00 100.0% Program Assistant II 1.00 —————% Total Office of Emergency Services 3.00 2.00 2.00 3.00 1.00 50.0% Office of Transportation Administrative Assistant 0.50 0.60 0.60 0.60 ——% Associate Engineer 0.30 0.35 0.35 0.35 ——% Associate Planner 0.45 0.40 0.40 0.40 ——% Chief Transportation Official 0.70 0.70 0.70 0.70 ——% Coordinator Transportation Systems Management 1.25 0.65 0.65 0.65 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 49 Packet Pg. 860 of 911 TABLE OF ORGANIZATION Management Analyst*0.50 0.50 0.50 —(0.50)(100.0)% Parking Operations-Lead —0.05 0.05 0.05 ——% Project Engineer 0.45 0.25 0.25 0.25 ——% Senior Engineer 0.20 0.20 0.55 0.55 ——% Senior Management Analyst*———0.50 0.50 —% Senior Planner***0.50 0.15 0.15 1.40 1.25 833.3% Traffic Engineering-Lead 0.35 0.35 ————% Transportation Planning Manager 1.15 1.00 1.00 1.00 ——% Total Office of Transportation 6.35 5.20 5.20 6.45 1.25 24.0% Planning and Development Services 40-Hour Captain ——0.80 0.80 ——% Administrative Assistant 1.00 1.00 1.00 1.00 ——% Administrative Associate I 1.00 1.00 1.00 —(1.00)(100.0)% Administrative Associate II*2.80 2.80 2.80 0.80 (2.00)(71.4)% Administrative Associate III*4.00 3.00 4.80 7.80 3.00 62.5% Assistant Chief Building Official 1.00 1.00 2.00 2.00 ——% Assistant Director PCE 1.00 1.00 1.00 1.00 ——% Associate Engineer 0.20 ——0.50 0.50 —% Associate Planner 3.00 3.25 1.25 1.25 ——% Building Inspector Specialist 6.00 6.00 8.00 —(8.00)(100.0)% Building/Planning Technician 3.00 2.00 2.50 2.50 ——% Chief Building Official 1.00 1.00 1.00 1.00 ——% Chief Planning Official 1.00 1.00 1.00 1.00 ——% Code Enforcement Officer 2.00 —1.00 1.00 ——% Code Enforcement-Lead 1.00 1.00 1.00 1.00 ——% Deputy Chief/Fire Marshal 0.80 0.80 ————% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 50 Packet Pg. 861 of 911 TABLE OF ORGANIZATION Development Project Coordinator II 2.00 2.00 2.00 2.00 ——% Development Project Coordinator III 3.00 3.00 3.00 3.00 ——% Director Planning/Community Environment 1.00 1.00 1.00 1.00 ——% Engineer 0.52 0.52 0.52 0.52 ——% Engineering Technician III 1.50 1.50 1.50 1.00 (0.50)(33.3)% Fire Inspector 3.20 1.60 1.60 1.60 ——% Fire Marshal ——0.80 0.80 ——% Hazardous Materials Inspector 1.60 1.60 3.20 3.20 ——% Industrial Waste Investigator 0.35 0.35 0.35 0.35 ——% Inspector, Field Services 0.68 0.68 0.68 0.68 ——% Landscape Architect Park Planner 0.50 0.50 0.50 0.50 ——% Manager Planning 4.00 4.00 4.00 4.00 ——% Planner 4.00 4.00 5.00 5.00 ——% Plans Check Engineer ——1.00 1.00 ——% Principal Planner 2.00 1.00 2.00 2.00 ——% Program Assistant I 1.00 —————% Project Engineer 0.10 —————% Project Manager ——0.50 0.50 ——% Senior Building Inspector**———8.00 8.00 —% Senior Business Analyst 1.00 1.00 1.00 1.00 ——% Senior Engineer 0.40 0.40 0.45 0.45 ——% Senior Management Analyst 2.00 2.00 2.00 2.00 ——% Senior Plan Check Engineer**,***———2.00 2.00 —% Senior Planner*3.60 3.65 4.65 7.65 3.00 64.5% Supervisor Inspection and Surveying 0.25 0.25 0.25 0.25 ——% Supervisor of Code Enforcement**———1.00 1.00 —% Traffic Engineering-Lead 0.10 0.05 ————% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 51 Packet Pg. 862 of 911 TABLE OF ORGANIZATION Transportation Planning Manager —0.05 0.05 0.05 ——% Total Planning and Development Services 61.60 54.00 65.20 71.20 6.00 9.2% Police Administrative Assistant 1.00 1.00 1.00 1.00 ——% Administrative Associate II 3.00 2.00 2.00 3.00 1.00 50.0% Animal Control Officer 3.00 2.00 2.00 2.00 ——% Animal Control Officer-Lead 1.00 1.00 1.00 1.00 ——% Assistant Police Chief 1.00 1.00 1.00 1.00 ——% Business Analyst 1.20 1.20 2.20 2.20 ——% Code Enforcement Officer 1.00 1.00 1.00 1.00 ——% Communications Manager 1.00 —————% Communications Technician 1.00 —————% Community Service Officer 7.50 5.63 5.63 5.63 ——% Court Liaison Officer*1.00 1.00 1.00 2.00 1.00 100.0% Crime Analyst 1.00 1.00 1.00 1.00 ——% Deputy Director Technical Services Division 0.80 —0.80 0.80 ——% Geographic Information System Specialist 0.50 0.50 0.50 0.50 ——% Police Agent 19.00 19.00 19.00 19.00 ——% Police Captain 2.00 2.00 2.00 2.00 ——% Police Chief 1.00 1.00 1.00 1.00 ——% Police Lieutenant 5.00 4.00 4.00 4.00 ——% Police Officer 50.00 39.00 43.00 45.00 2.00 4.7% Police Records Specialist II 6.00 6.00 6.00 6.00 ——% Police Records Specialist-Lead 1.00 1.00 1.00 1.00 ——% Police Sergeant 14.00 14.00 14.00 14.00 ——% Program Assistant II 1.00 1.00 1.00 1.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 52 Packet Pg. 863 of 911 TABLE OF ORGANIZATION Property Evidence Technician 2.00 2.00 2.00 2.00 ——% Public Safety Communications Manager 1.00 —1.00 1.00 ——% Public Safety Dispatcher***16.00 12.00 14.00 16.00 2.00 14.3% Public Safety Dispatcher-Lead 4.00 4.00 4.00 4.00 ——% Public Safety Program Manager 2.00 1.00 1.00 1.00 ——% Senior Management Analyst 1.00 1.00 1.00 1.00 ——% Total Police 149.00 124.33 133.13 139.13 6.00 4.5% Public Works Administrative Assistant 1.00 0.50 0.50 0.50 ——% Administrative Associate I 0.10 —————% Administrative Associate II 2.65 2.65 2.65 2.65 ——% Administrative Associate III 0.01 —————% Assistant Director Public Works 0.73 0.73 0.73 0.73 ——% Associate Engineer ———0.45 0.45 —% Building Serviceperson-Lead 1.00 1.00 1.00 1.00 ——% Building/Planning Technician ——0.50 0.50 ——% Cement Finisher 2.00 2.00 2.00 2.00 ——% Cement Finisher-Lead 0.26 0.26 0.26 0.26 ——% Coordinator Public Works Projects 1.50 1.50 1.50 1.50 ——% Director Public Works/City Engineer 1.00 1.00 1.00 1.00 ——% Electrician 0.80 0.80 0.80 0.80 ——% Engineer 0.48 0.48 0.48 0.48 ——% Engineering Technician III 1.75 1.75 1.75 1.80 0.05 2.9% Environmental Specialist ——0.33 0.33 ——% Equipment Operator 2.46 2.46 2.46 2.46 ——% Facilities Carpenter 1.00 1.00 1.00 1.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 53 Packet Pg. 864 of 911 TABLE OF ORGANIZATION Facilities Maintenance-Lead 1.85 1.85 1.85 1.85 ——% Facilities Painter 1.75 1.75 1.75 1.75 ——% Facilities Technician 4.05 4.05 4.05 5.05 1.00 24.7% Heavy Equipment Operator 2.33 2.10 2.10 2.10 ——% Heavy Equipment Operator-Lead 0.85 0.85 0.85 0.85 ——% Inspector, Field Services 0.11 0.11 0.11 0.11 ——% Landscape Architect Park Planner 0.60 0.60 0.60 0.60 ——% Management Analyst 1.45 1.45 0.70 0.70 ——% Manager Environmental Control Program ——0.33 0.33 ——% Manager Facilities 0.90 0.90 0.90 0.90 ——% Manager Maintenance Operations 1.20 1.20 1.20 1.20 ——% Manager Urban Forestry 1.00 1.00 1.00 1.00 ——% Manager Watershed Protection 0.05 0.05 0.05 0.05 ——% Project Manager 2.65 2.00 2.50 2.85 0.35 14.0% Senior Engineer 0.60 0.60 0.60 0.60 ——% Senior Management Analyst 1.11 1.11 1.11 1.11 ——% Supervisor Inspection and Surveying 0.10 0.10 0.10 0.10 ——% Surveyor, Public Works 0.33 0.33 0.33 0.33 ——% Traffic Controller Maintainer I 1.94 1.94 1.94 1.94 ——% Traffic Controller Maintainer II 2.00 1.00 1.00 1.00 ——% Tree Maintenance Person 1.00 1.00 1.00 1.00 ——% Tree Trim/Line Clear 7.00 7.00 7.00 7.00 ——% Tree Trim/Line Clear-Lead 1.00 1.00 1.00 1.00 ——% WGW Heavy Equipment Operator —0.23 0.23 0.23 ——% Total Public Works 50.61 48.35 49.26 51.11 1.85 3.8% Total General Fund 574.43 506.80 552.81 586.06 33.25 6.0% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 54 Packet Pg. 865 of 911 TABLE OF ORGANIZATION Enterprise Fund Public Works Account Specialist 0.30 —————% Accountant 0.40 0.70 0.70 0.70 ——% Administrative Associate I 0.10 —1.00 1.00 ——% Administrative Associate II 2.15 2.15 2.15 2.15 ——% Administrative Associate III 0.10 0.20 0.20 0.20 ——% Airport Specialist II***———2.50 2.50 —% Assistant Director Public Works 1.30 1.30 1.30 1.30 ——% Assistant Manager WQCP 2.00 2.00 2.00 2.00 ——% Associate Engineer 3.00 3.00 3.00 3.05 0.05 1.7% Chemist 3.00 2.00 2.00 3.00 1.00 50.0% Deputy Chief/Fire Marshal 0.07 0.07 ————% Electrician 3.00 3.00 3.00 3.00 ——% Electrician-Lead 2.00 2.00 2.00 2.00 ——% Engineer 0.90 0.90 0.90 1.90 1.00 111.1% Engineering Technician III 0.25 0.25 0.25 0.20 (0.05)(20.0)% Environmental Specialist 2.00 2.00 2.33 2.33 ——% Equipment Operator 0.54 0.54 0.54 0.54 ——% Facilities Maintenance Lead 1.00 1.00 1.00 1.00 ——% Facilities Technician***1.50 1.50 2.50 —(2.50)(100.0)% Fire Marshal ——0.07 0.07 ——% Hazardous Materials Inspector 0.04 0.04 0.04 0.04 ——% Heavy Equipment Operator 0.90 0.90 0.90 0.90 ——% Heavy Equipment Operator-Lead 1.15 1.15 1.15 1.15 ——% Industrial Waste Inspector 3.00 3.00 3.00 3.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 55 Packet Pg. 866 of 911 TABLE OF ORGANIZATION Industrial Waste Investigator 1.15 1.15 1.15 1.15 ——% Laboratory Technician WQC 3.00 3.00 3.00 3.00 ——% Landfill Technician 1.00 1.00 1.00 2.00 1.00 100.0% Management Analyst 2.30 2.30 2.30 2.30 ——% Manager Airport 1.00 1.00 1.00 1.00 ——% Manager Environmental Control Program 5.00 5.00 5.33 5.33 ——% Manager Laboratory Services 1.00 1.00 1.00 1.00 ——% Manager Maintenance Operations 1.96 1.96 1.96 1.96 ——% Manager Solid Waste 1.00 1.00 1.00 1.00 ——% Manager Water Quality Control Plant 1.00 1.00 1.00 1.00 ——% Manager Watershed Protection 0.95 0.95 0.95 0.95 ——% Plant Mechanic 7.00 7.00 7.00 7.00 ——% Program Assistant I 1.00 1.00 1.00 1.00 ——% Program Assistant II 2.00 2.00 2.00 2.00 ——% Project Engineer 1.83 1.83 1.83 2.83 1.00 54.6% Project Manager 1.35 1.35 1.35 1.35 ——% Senior Accountant 0.30 0.30 0.30 0.30 ——% Senior Buyer 1.00 1.00 1.00 1.00 ——% Senior Chemist 1.00 2.00 2.00 2.00 ——% Senior Engineer 3.76 3.76 3.76 3.76 ——% Senior Industrial Waste Investigator 1.00 1.00 1.00 1.00 ——% Senior Management Analyst 0.21 0.21 0.21 0.21 ——% Senior Mechanic 1.00 1.00 1.00 1.00 ——% Senior Operator WQC 6.00 6.00 6.00 6.00 ——% Senior Technologist 1.00 1.00 1.00 1.00 ——% Storekeeper 1.00 1.00 1.00 1.00 ——% Street Maintenance Assistant 1.00 1.00 1.00 —(1.00)(100.0)% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 56 Packet Pg. 867 of 911 TABLE OF ORGANIZATION Street Sweeper Operator 1.63 1.63 1.63 1.63 ——% Supervisor WQCP Operations 3.00 3.00 3.00 3.00 ——% Surveyor, Public Works 0.12 0.12 0.12 0.12 ——% Technologist 1.00 1.00 1.00 1.00 ——% Traffic Controller Maintainer I 0.06 0.06 0.06 0.06 ——% WQC Plant Operator II 16.00 16.00 16.00 16.00 ——% Zero Waste Coordinator 1.00 1.00 1.00 1.00 ——% Total Public Works 101.32 101.32 103.98 106.98 3.00 2.9% Utilities Account Specialist 1.70 1.00 1.00 1.00 ——% Accountant 0.60 1.30 1.30 1.30 ——% Administrative Assistant 1.00 1.00 1.00 1.00 ——% Administrative Associate II 6.00 6.00 6.00 6.00 ——% Assistant City Attorney ——1.00 2.00 1.00 100.0% Assistant Director Administrative Services 0.25 0.25 0.25 0.25 ——% Assistant Director Sustainability and Climate Action*** ———1.00 1.00 —% Assistant Director Utilities Customer Support Services 1.00 1.00 1.00 2.00 1.00 100.0% Assistant Director Utilities Engineering 1.00 1.00 1.00 1.00 ——% Assistant Director Utilities Operations 1.00 1.00 1.00 1.00 ——% Assistant Director Utilities/Resource Management 1.00 1.00 1.00 1.00 ——% Associate Sustainability Program Administrator ——1.00 1.00 ——% Business Analyst 6.00 6.00 6.00 6.00 ——% Cathodic Protection Technician Assistant 1.00 1.00 1.00 1.00 ——% Cathodic Technician 1.00 1.00 1.00 1.00 ——% Cement Finisher 2.00 2.00 2.00 2.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 57 Packet Pg. 868 of 911 TABLE OF ORGANIZATION Contracts Administrator 0.70 0.70 0.70 0.70 ——% Coordinator Utilities Projects 6.00 6.00 8.00 8.00 ——% Customer Service Representative 7.00 7.00 7.00 7.00 ——% Customer Service Specialist 2.00 2.00 2.00 2.00 ——% Customer Service Specialist-Lead 2.00 2.00 2.00 2.00 ——% Deputy Chief/Fire Marshal 0.08 0.08 ————% Deputy City Attorney 1.00 1.00 —0.50 0.50 —% Director Administrative Services/CFO 0.20 0.20 0.20 0.20 ——% Electric Heavy Equipment Operator 2.00 2.00 1.00 1.00 ——% Electric Project Engineer 4.00 4.00 8.00 8.00 ——% Electric Underground Inspector 2.00 2.00 2.00 2.00 ——% Electric Underground Inspector-Lead 1.00 1.00 1.00 1.00 ——% Electrical Equipment Technician 1.00 1.00 1.00 1.00 ——% Electrician Assistant I 3.00 3.00 3.00 3.00 ——% Engineer***4.00 4.00 4.00 5.00 1.00 25.0 Engineering Manager - Electric 1.00 1.00 1.00 1.00 ——% Engineering Manager - WGW 1.00 1.00 1.00 1.00 ——% Engineering Technician III 3.00 3.00 3.00 3.00 ——% Environmental Specialist ——0.34 0.34 ——% Equipment Operator ——1.00 1.00 ——% Fire Marshal ——0.08 0.08 ——% Gas and Water Meter Measurement and Control Technician 4.00 4.00 4.00 4.00 ——% Gas and Water Meter Measurement and Control Technician - Lead 1.00 1.00 1.00 1.00 ——% Hazardous Materials Inspector 0.06 0.06 0.06 0.06 ——% Heavy Equipment Operator - Install/Repair 4.00 4.00 4.00 4.00 ——% Human Resources Representative —1.00 1.00 1.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 58 Packet Pg. 869 of 911 TABLE OF ORGANIZATION Industrial Waste Investigator 0.50 0.50 0.50 0.50 ——% Inspector, Field Services 5.00 —————% Inspector, WGW Utilities Field Svc —5.00 5.00 5.00 ——% Lineperson/Cable Specialist 10.00 10.00 10.00 10.00 ——% Lineperson/Cable Specialist-Lead 4.00 4.00 4.00 4.00 ——% Maintenance Mechanic-Welding 2.00 2.00 2.00 2.00 ——% Management Analyst ——1.00 1.00 ——% Manager Communications 1.00 1.00 1.00 1.00 ——% Manager Customer Service 1.00 1.00 1.00 1.00 ——% Manager Electric Operations 1.00 1.00 1.00 1.00 ——% Manager Environmental Control Program ——0.34 0.34 ——% Manager Information Technology ———1.00 1.00 —% Manager Treasury, Debt & Investments 0.40 0.40 0.40 0.40 ——% Manager Utilities Compliance 1.00 1.00 1.00 1.00 ——% Manager Utilities Credit & Collection 1.00 1.00 1.00 1.00 ——% Manager Utilities Operations WGW 1.00 1.00 1.00 1.00 ——% Manager Utilities Program Services 1.00 1.00 2.00 2.00 ——% Manager Utilities Strategic Business 1.00 1.00 1.00 1.00 ——% Manager Utilities Telecommunications 1.00 1.00 1.00 3.00 2.00 200.0% Meter Reader 6.00 6.00 6.00 5.00 (1.00)(16.7)% Meter Reader-Lead 1.00 1.00 1.00 1.00 ——% Metering Technician 3.00 3.00 2.00 2.00 ——% Metering Technician-Lead 1.00 1.00 1.00 1.00 ——% Offset Equipment Operator 0.48 0.48 0.48 0.48 ——% Overhead Underground Troubleman 2.00 2.00 2.00 2.00 ——% Power Engineer 1.00 1.00 ————% Principal Business Analyst 1.00 1.00 1.00 1.00 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 59 Packet Pg. 870 of 911 TABLE OF ORGANIZATION Principal Utilities Program Manager***——1.00 —(1.00)(100.0)% Program Assistant I 1.50 1.50 1.50 2.00 0.50 33.3% Program Assistant II 1.00 1.00 ————% Project Engineer 5.00 5.00 5.00 5.00 ——% Project Manager 0.75 0.75 0.75 0.75 ——% Resource Planner 5.00 5.00 5.00 5.00 ——% Restoration Lead 1.00 1.00 1.00 1.00 ——% SCADA Technologist 2.00 2.00 ————% Senior Accountant 0.70 0.70 0.70 0.70 ——% Senior Business Analyst 3.00 3.00 3.00 3.00 ——% Senior Electrical Engineer 4.00 5.00 5.00 5.00 ——% Senior Engineer***5.00 5.00 6.00 5.00 (1.00)(16.7)% Senior Management Analyst 0.70 0.70 0.70 0.70 ——% Senior Marketing Analyst ———1.00 1.00 —% Senior Mechanic 1.00 1.00 1.00 1.00 ——% Senior Performance Auditor 1.00 —————% Senior Resource Planner 6.50 6.50 7.00 7.00 ——% Senior Utilities Field Service Representative 1.00 1.00 1.00 1.00 ——% Senior Utilities System Operator**———1.00 1.00 —% Senior Water Systems Operator 2.00 2.00 2.00 2.00 ——% Storekeeper 1.00 1.00 1.00 1.00 ——% Storekeeper-Lead 0.80 0.80 0.80 0.80 ——% Street Light, Traffic Signal & Fiber Technician 5.00 5.00 4.00 4.00 ——% Street Light, Traffic Signal & Fiber-Lead 2.00 2.00 2.00 2.00 ——% Substation Electrician 6.00 6.00 6.00 6.00 ——% Substation Electrician-Lead 2.00 2.00 2.00 2.00 ——% Supervising Electric Project Engineer 1.00 —————% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 60 Packet Pg. 871 of 911 TABLE OF ORGANIZATION Sustainability Programs Administrator —4.00 5.00 5.00 ——% Tree Maintenance Person 1.00 1.00 1.00 1.00 ——% Utilities Chief Operating Officer 1.00 1.00 1.00 1.00 ——% Utilities Compliance Technician 3.00 3.00 3.00 3.00 ——% Utilities Compliance Technician-Lead 1.00 1.00 1.00 1.00 ——% Utilities Credit/Collection Specialist 2.00 2.00 2.00 2.00 ——% Utilities Director 1.00 1.00 1.00 1.00 ——% Utilities Engineer Estimator 5.00 5.00 5.00 5.00 ——% Utilities Field Services Representative 5.00 5.00 5.00 5.00 ——% Utilities Install Repair-Lead-Welding Certified 2.00 2.00 3.00 3.00 ——% Utilities Install Repair-Welding Certified 3.00 3.00 3.00 3.00 ——% Utilities Install/Repair 10.00 10.00 10.00 10.00 ——% Utilities Install/Repair Assistant 1.00 1.00 1.00 1.00 ——% Utilities Install/Repair-Lead 5.00 5.00 4.00 4.00 ——% Utilities Key Account Representative 3.00 3.00 3.00 3.00 ——% Utilities Locator 3.00 3.00 3.00 3.00 ——% Utilities Marketing Program Administrator 4.00 —————% Utilities Safety Officer 1.00 1.00 1.00 1.00 ——% Utilities Supervisor 12.00 12.00 12.00 12.00 ——% Utilities System Analyst ——2.00 2.00 ——% Utilities System Operator 5.00 5.00 6.00 5.00 (1.00)(16.7)% Utility Engineering Estimator - Lead 1.00 1.00 1.00 1.00 ——% Warehouse Supervisor 0.80 0.80 0.80 0.80 ——% Water System Operator II 4.00 4.00 4.00 4.00 ——% WGW Heavy Equipment Operator 4.70 4.70 4.70 4.70 ——% Total Utilities 257.42 257.42 267.60 273.60 6.00 2.2% Total Enterprise Fund 358.74 358.74 371.58 380.58 9.00 2.4% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 61 Packet Pg. 872 of 911 TABLE OF ORGANIZATION Other Funds Capital Project Fund Administrative Assistant 0.15 0.65 0.65 0.65 ——% Administrative Associate I 0.80 —————% Administrative Associate III 0.89 0.80 0.80 0.80 ——% Assistant Director Public Works 0.72 0.72 0.72 0.72 ——% Associate Engineer 2.50 1.65 1.65 1.65 ——% Associate Planner 0.30 0.35 0.35 0.35 ——% Building Serviceperson***1.00 1.00 1.00 —(1.00)(100.0)% Building Serviceperson-Lead***1.40 1.40 1.40 —(1.40)(100.0)% Cement Finisher-Lead 0.74 0.74 0.74 0.74 ——% Chief Transportation Official 0.30 0.30 0.30 0.30 ——% Contracts Administrator 0.60 0.60 0.60 0.60 ——% Coordinator Public Works Projects 1.30 1.30 1.30 1.30 ——% Coordinator Transportation Systems Management 0.75 1.35 1.35 1.35 ——% Engineer 3.10 2.10 3.10 3.10 ——% Engineering Technician III 0.50 0.50 0.50 0.50 ——% Facilities Technician 1.50 1.50 1.50 1.50 ——% Inspector, Field Services 1.21 1.21 1.21 1.21 ——% Landscape Architect Park Planner 0.90 0.90 0.90 0.90 ——% Management Analyst*0.95 0.95 0.95 0.80 (0.15)(15.8)% Manager Facilities 0.10 0.10 0.10 0.10 ——% Manager Maintenance Operations 0.65 0.65 0.65 0.65 ——% Parking Operations-Lead 0.40 0.30 0.30 0.30 ——% Project Engineer 7.62 7.92 7.92 7.92 ——% Project Manager 1.15 0.80 0.80 1.45 0.65 81.3% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 62 Packet Pg. 873 of 911 TABLE OF ORGANIZATION Senior Engineer 4.04 4.04 4.64 4.64 ——% Senior Management Analyst*0.60 0.60 0.60 0.75 0.15 25.0% Senior Planner 0.50 0.80 0.80 1.55 0.75 93.8% Supervisor Inspection and Surveying 0.65 0.65 0.65 0.65 ——% Surveyor, Public Works 0.55 0.55 0.55 0.55 ——% Traffic Engineering-Lead 0.55 0.60 ————% Transportation Planning Manager 0.35 0.45 0.45 0.45 ——% Total Capital Project Fund 36.77 35.48 36.48 35.48 (1.00)(2.7)% General Liabilities Insurance Program Fund Senior Management Analyst ———1.00 1.00 —% Total General Liabilities Insurance Program Fund ———1.00 1.00 —% Printing and Mailing Services Manager Revenue Collections 0.10 0.10 0.10 0.10 ——% Offset Equipment Operator 1.52 1.52 1.52 1.52 ——% Total Printing and Mailing Services 1.62 1.62 1.62 1.62 ——% Special Revenue Funds Account Specialist 1.87 1.37 1.37 1.37 ——% Account Specialist-Lead 0.55 0.55 0.55 0.55 ——% Administrative Assistant 0.35 0.25 0.25 0.25 ——% Administrative Associate II 0.20 0.20 0.20 0.20 ——% Associate Planner 0.25 —————% Community Service Officer 0.50 0.37 0.37 0.37 ——% Coordinator Public Works Projects 0.20 0.20 0.20 0.20 ——% Electrician 0.20 0.20 0.20 0.20 ——% Facilities Maintenance-Lead 0.15 0.15 0.15 0.15 ——% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 63 Packet Pg. 874 of 911 TABLE OF ORGANIZATION Facilities Painter 0.25 0.25 0.25 0.25 ——% Facilities Technician 0.45 0.45 0.45 0.45 ——% Management Analyst*0.35 0.35 0.35 —(0.35)(100.0)% Manager Community Services Senior Program 1.00 1.00 1.00 1.00 ——% Manager Maintenance Operations 0.19 0.19 0.19 0.19 ——% Manager Revenue Collections 0.28 0.28 0.28 0.28 ——% Parking Operations-Lead 0.60 0.65 0.65 0.65 ——% Senior Management Analyst*———0.35 0.35 —% Senior Planner 0.40 0.40 0.40 0.40 ——% Street Maintenance Assistant 2.00 2.00 2.00 2.00 ——% Street Sweeper Operator 0.37 0.37 0.37 0.37 ——% Transportation Planning Manager 0.50 0.50 0.50 0.50 ——% Total Special Revenue Funds 10.66 9.73 9.73 9.73 ——% Technology Fund Administrative Assistant 1.00 1.00 1.00 1.00 ——% Assistant Director Administrative Services 0.10 0.10 0.10 0.10 ——% Business Analyst 1.00 1.00 1.00 1.00 ——% Desktop Technician 6.00 6.00 6.00 6.00 ——% Director Information Technology/CIO 1.00 1.00 1.00 1.00 ——% Management Analyst ———1.00 1.00 —% Manager Information Technology 3.00 3.00 3.00 3.00 ——% Manager Information Technology Security 1.00 —————% Principal Business Analyst 1.00 —————% Senior Business Analyst 2.00 2.00 2.00 2.00 ——% Senior Management Analyst 1.00 1.00 1.00 1.00 ——% Senior Technologist*18.00 14.00 16.00 17.00 1.00 6.3% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 64 Packet Pg. 875 of 911 TABLE OF ORGANIZATION *The FY 2023 Adopted Budget does not include City Council actions to amend staffing levels approved in the FY 2023 Mid-Year Budget Review (CMR 2212-0515). These positions appear as a base adjustment in the FY 2024 Proposed Budget. **The FY 2024 Budget includes new job classifications that require completion of appropriate review and potential discussions with bargaining groups. Proposals in this budget include estimated funding levels for financial planning purposes only and do not reflect the final terms of the proposed classifications. ***Positions approved by Finance Committee and/or City Council subsequent to the presentation of the FY 2024 Proposed Budget. Technologist 1.00 —————% Total Technology Fund 36.10 29.10 31.10 33.10 2.00 6.4% Vehicle Replacement and Maintenance Fund Assistant Director Public Works 0.25 0.25 0.25 0.25 ——% Assistant Fleet Manager 1.00 1.00 1.00 1.00 ——% Equipment Maintenance Service Person 2.00 1.00 1.00 2.00 1.00 100.0% Fleet Services Coordinator 1.00 1.00 1.00 2.00 1.00 100.0% Management Analyst 0.20 0.20 0.20 0.20 ——% Management Assistant 1.00 1.00 1.00 1.00 ——% Manager Fleet 1.00 1.00 1.00 1.00 ——% Motor Equipment Mechanic II 6.00 5.00 5.00 5.00 ——% Motor Equipment Mechanic-Lead 2.00 2.00 2.00 1.00 (1.00)(50.0)% Project Manager 1.00 1.00 1.00 1.00 ——% Senior Management Analyst 0.08 0.08 0.08 0.08 ——% Total Vehicle Replacement and Maintenance Fund 15.53 13.53 13.53 14.53 1.00 7.4% Workers' Compensation Program Fund Senior Human Resources Administrator 1.00 1.00 1.00 1.00 ——% Total Workers’ Compensation Program Fund 1.00 1.00 1.00 1.00 ——% Total Other Funds 101.68 90.46 93.46 96.46 3.00 3.2% Total Citywide Positions 1,034.85 956.00 1,017.85 1,063.10 45.25 4.4% Table of Organization FY 2021 Actuals FY 2022 Actuals FY 2023 Adopted Budget FY 2024 Adopted Budget FY 2024 Change FTE FY 2024 Change % Attachment A, Exhibit 4 Item 29 Attachment A, Exhibit 4 - Table of Organization Item 29: Staff Report Pg. 65 Packet Pg. 876 of 911 Finance Committee Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Administrative Services Meeting Date: May 9, 2023 Report #:2304-1386 TITLE Review and Recommend to Council to Approve the FY 2024 Proposed Municipal Fee Schedule Amendments as Part of the FY 2024 Budget RECOMMENDATION Staff recommends that the Finance Committee review amendments to the Municipal Fee Schedule for FY 2024 and make recommendations to Council for incorporation into the FY 2024 budget. EXECUTIVE SUMMARY This report presents the annual update to over 960 fees as part of the budget process. It highlights proposed changes to the FY 2024 Municipal Fee Schedule, which include 19 new fees for the Community Services Department and Office of Transportation, deletion of 3 fees in the Office of Transportation, and 237 fee adjustments. It is based on the general premise of exception reporting, which is reflected in the practice of applying a General Rate of Increase (GRI) to fees to keep up with the cost of service, new service delivery or changes to service delivery, and changes in cost recovery levels, and reporting out any fees that are proposed to stay the same or change by an amount other than the GRI of 7.5% for FY 2024. Recommended approval will be incorporated in the FY 2024 budget process and ultimately result in the fees for FY 2024 services. BACKGROUND The City charges fees for a variety of services provided, such as fees for photocopies, building inspection services, and room rentals. As part of the annual budget process, staff submit changes to the Municipal Fee Schedule for review, followed by final approval during City Council’s budget adoption. In FY 2013, staff completed a cost of services study for most departments. Results from that study set the standards used by departments to review and calculate the City’s expenditures linked to a particular fee activity to determine the fee amount and cost recovery level. These expenditures represent the budgeted cost of staff time including salaries and benefits, related non-salary expenditures, department and citywide cost allocations to recuperate costs for department Attachment A, Exhibit 5Item 29 Attachment A, Exhibit 5 - Fiscal Year 2024 Municipal Fee Changes Item 29: Staff Report Pg. 66 Packet Pg. 877 of 911 2 1 1 4 management oversight and internal support functions (e.g. purchasing, payroll, human resources). Since its adoption in FY 2015, the User Fee Cost Recovery Level Policy has served as a guide for departments to update fees by ensuring proper alignment with user cost recovery levels. To maintain this alignment, departments periodically conduct an in-depth fee analysis or undergo a fee study. The Policy was last updated by Council in June 2019.1 Table 1: Summary of Municipal Fee Cost Recovery Policy This annual report brings forward amendments to the Municipal Fee Schedule organized into three categories: (1) New fees, (2) Deletion of existing fees, and 1 Adoption of FY 2020 Budget & Municipal Fees https://www.cityofpaloalto.org/files/assets/public/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2019/10419.pdf?t=52421.18 Attachment A, Exhibit 5Item 29 Attachment A, Exhibit 5 - Fiscal Year 2024 Municipal Fee Changes Item 29: Staff Report Pg. 67 Packet Pg. 878 of 911 2 1 1 4 (3) Changed fees to attain a cost recovery level consistent with other fees or based on a market study for similar services. DISCUSSION The development of the Municipal Fee Schedule for FY 2024 reflects department service realignments, as most fees across the City have been updated to maintain cost recovery levels. The average increase of salaries and benefits from FY 2023 to FY 2024 was 7.5% and is the general rate of increase that is applied to most fees to maintain current cost recovery levels, as directed by the policy. Fees that were updated by a factor greater or lesser than 7.5% to realize a higher cost recovery level, or were adjusted based on a fee study, market study, or staff recommendation are further detailed in Attachment A. Budget proposals that will be discussed by the Finance Committee and City Council that result in an impact to fees have been identified and considered in staff’s analysis of fees. New Fees As identified in Table 2 below, nineteen (19) new fees are recommended to be added to the FY 2024 Municipal Fee Schedule for the Community Services Department (14 fees) and Office of Transportation (five fees). Community Services Department recommended additions: • Twelve fees for veterinary services for cats and dogs • One fee for community center rental lighting • One fee for camp rentals Office of Transportation recommended additions: • Five fees for on-demand transportation and parking fares/passes Table 2: New Fees for FY 2024 Department Fee Type Fee Title FY 2024 Proposed Fee Cost Recovery Level Community Services Veterinary Medication Brachycephalic Fee $75.00 per pet High Community Services Adoption Cats (5+ Years) Resident: $50.00 per cat Non-Resident: $50.00 per cat High Community Services Adoption Cats (6 months - 5 years) Resident: $125.00 per cat Non-Resident: $125.00 per cat High Community Services Adoption Cats (Two adopted at once) Resident: $175.00 per cat Non-Resident: $175.00 per cat High Community Services Adoption Cats (Under 6 Months) Resident: $150.00 per cat Non-Resident: $175.00 per cat High Attachment A, Exhibit 5Item 29 Attachment A, Exhibit 5 - Fiscal Year 2024 Municipal Fee Changes Item 29: Staff Report Pg. 68 Packet Pg. 879 of 911 2 1 1 4 Department Fee Type Fee Title FY 2024 Proposed Fee Cost Recovery Level Community Services Adoption Dogs (5+ Years) Resident: $75.00 per dog Non-Resident: $75.00 per dog High Community Services Adoption Dogs (6 months - 5 years) Resident: $150.00 per dog Non-Resident: $175.00 per dog High Community Services Adoption Dogs (Under 6 Months) Resident: $150.00 per dog Non-Resident: $250.00 per dog High Community Services Veterinary Medication Injectable Medication $18.00 - $58.00 each High Community Services Lab Services Labwork - USG $17.00 each High Community Services Community Rental Lighting Resident: $170.00 per use Non-Resident: $220.00 per use High Community Services Veterinary Medication Rabbit Hemorrhagic Disease Vaccine $150.00 - $250.00 each High Community Services Animal Transport Specialty Animal Program Fee $150.00 - $250.00 each High Community Services Community Rental Towle Camp Group (16 People) $50.00 per day High Office of Transportation On-Demand Transit Discounted Fare (age 65+) $1.00 per passenger trip High Office of Transportation On-Demand Transit Monthly Pass $65.00 per month High Office of Transportation On-Demand Transit On-Demand Transit (Palo Alto Link) $0.00 - $3.50 per passenger trip High Office of Transportation On-Demand Transit One-Way fare $3.50 per passenger trip High Office of Transportation On-Demand Transit Weekly Pass $20.00 per week High Deleted Fees Sixteen (16) fees in the Community Services Department and three (3) fees in the Office of Transportation are recommended to be deleted in the FY 2024 Municipal Fee Schedule. Each fee, and the justification for its deletion, is detailed in Table 3 below. Table 3. Deletion of Fees for FY 2024 Department Fee Title Justification Community Services Common – Procedures – Special Prescription Diets Vendor recommended Community Services Bandages – Paws Consolidate into new fee “Bandage.” Attachment A, Exhibit 5Item 29 Attachment A, Exhibit 5 - Fiscal Year 2024 Municipal Fee Changes Item 29: Staff Report Pg. 69 Packet Pg. 880 of 911 2 1 1 4 Department Fee Title Justification Community Services Bandages – Robert Jones Consolidate into new fee “Bandage.” Community Services Bandages – Splint Consolidate into new fee “Bandage.” Community Services Common Procedures – Incubator/ICU Cage with O2 Vendor recommended Community Services Common Procedures - Intensive Care (additional)Vendor recommended Community Services Dogs & Cats Changed to multiple fees based on age criteria Community Services Injections - IM & SQ Consolidated into new fee “Injectable Medication.” Community Services Injections - IV Consolidated into new fee “Injectable Medication.” Community Services Injections - IV solu-delta cortef 100mg Consolidated into new fee “Injectable Medication.” Community Services Injections – IV solu-delta cortef 500mg Consolidated into new fee “Injectable Medication.” Community Services Fluid Therapy – IVAC Set Up and Use Vendor recommended Community Services Labwork – Multistick Urinalysis Consolidated into new fee “Labwork - Urine Dipstick.” Community Services Labwork - Azostick or Dextrostick Consolidated into new fee “Labwork - Urine Dipstick.” Community Services Microchip Rescue Group Consolidated into existing “Microchip” fee. Community Services Rx for Clinic Consolidated into “Oral Prescription Medication.” Office of Transportation Downtown RPP - Daily Employee Parking Permit Permit will no longer be offered. Office of Transportation Evergreen Park - Mayfield RPP Daily Employee Parking Permit Permit will no longer be offered. Office of Transportation Southgate RPP - Daily Employee Parking Permit Permit will no longer be offered. Changed Fees 235 fees are recommended to be adjusted by a factor other than the 7.5% to adjust for the general change in salary and benefits adjustments between FY 2023 and FY 2024. Changes to these fees as detailed in Attachment A generally reflect changes to: (1)Attain a cost recovery level consistent with other fees; (2)Align with a market study; Attachment A, Exhibit 5Item 29 Attachment A, Exhibit 5 - Fiscal Year 2024 Municipal Fee Changes Item 29: Staff Report Pg. 70 Packet Pg. 881 of 911 2 1 1 4 (3)Modify the fee structure to align with current service delivery; or (4)Hold the fee flat to avoid discouraging use of the service or activity. Each fee is listed by name along with the Adopted FY 2023 rate, the Proposed FY 2024 rate, the percentage change, and the fee change justification in Attachment A. The 235 changed fees detailed in the attachment are for the following departments: five in Administrative Services, four in City Clerk, 115 in Community Services, seven in Fire, 15 in Library, 14 in non-departmental, 45 in Office of Transportation, 10 in Planning and Development Services, 12 in Police, and 8 in Public Works. Partner Agencies or Vendor Fees The City may form partnerships to provide services it wishes to maintain but not provide directly using City staff. While the City no longer directly administers these services, the fees may still be included in the Municipal Fee Schedule. Changes to these fees are based on the contract terms, such as Community Services animal shelter fees, which were changed based on the market value for providing animal care services or held at the same level at the shelter operator’s recommendation; Community Services golf course fees, which are adjusted to align with the upper and lower limits of the course’s dynamic, demand-based pricing model. Since these fees are governed by the contract through which partner agencies or vendors provide the service, they are discussed in Attachment B. Parking In-Lieu fees Palo Alto Municipal Code (PAMC) Chapter 16.57.0302 requires that the Parking In-Lieu Fee be recalculated in the event the City Council approved the construction of a public parking structure. Per the Municipal Code, the fee shall be adjusted at the time the construction contract is awarded to include actual costs to date, plus the projected construction cost, and authorized contingency. A second recalculation must occur after the project is completed, based on actual design and construction costs incurred. The recalculated fee may be higher or lower than the initial fee. In December 2018, Council awarded a construction contract to Swinerton Builders3 for the California Avenue Area Parking Garage. The total project cost was calculated per PAMC 16.57.0302 and includes design costs plus additional services, the construction bid with authorized contingency, and all other staff and administrative costs incurred. This calculation was done and approved as part of the FY 2020 budget development process4. The cost per parking space was calculated at $106,171 for the FY 2020 Adopted Municipal Fee Schedule. The California Avenue Parking Garage was completed and opened in December 2020. Staff has completed all project close-out documents and recalculated the Parking In-Lieu Fee at $105,811. After adding the appropriate construction cost indexes for the San Francisco Bay Area for FY 2021 through FY 2 Municipal Code 16.57.030 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-74866 3 CMR 9688 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2018/id.-9688-350-sherman-ave-garage-construction.pdf?t=62452.05 4 CMR 10225 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager- reports-cmrs/year-archive/2019/10225.pdf Attachment A, Exhibit 5Item 29 Attachment A, Exhibit 5 - Fiscal Year 2024 Municipal Fee Changes Item 29: Staff Report Pg. 71 Packet Pg. 882 of 911 2 1 1 4 2023, the revised fee was set at $124,275. Adding the respective construction cost index for FY 2024 brings the fee to $130,823. Development Impact and In-Lieu Fees In the Planning and Development Services Department, impact fees (i.e., community center, park, library, and citywide transportation impact fees) and in-lieu fees (parking and housing in- lieu, parkland dedication) were increased by 5.27% to reflect the most recently published Construction Cost Index (CCI) for the San Francisco Bay Area, as calculated by the Engineering News Record. This is in accordance with Municipal Code 16.64.1105, as amended on November 28, 20166, to standardize when these fees are paid, bring uniformity to the calculation in effect, bring uniformity to the annual adjustment rate, and other updates. Since these fees are governed by the applicable Municipal Code section, they are not discussed in Attachment A. The Park, Library, and Community Center impact fee increases proposed for FY 2024 do not yet reflect the changes that Council approved on June 13, 20227, including (1) new fee categories; (2) increased land valuation for new park acquisition; and (3) a square foot basis (instead of a per housing unit basis) to calculate the fees. The Council directed staff to conduct and economic feasibility study before implementing these changes. The economic feasibility study has not been completed, and staff will return to Council upon completion. The fees can be updated upon an amendment to the Municipal Fee Schedule. FISCAL IMPACT This action aligns fees with expense increases associated with these services. It works to ensure the City can maintain cost recovery levels, and is part of the FY 2024 Proposed Operating Budget. POLICY IMPLICATIONS These recommendations are consistent with existing City policies. Where a fee or charge is subject to Proposition 26, the amount of the new or increased fee or charge is no more than necessary to cover the reasonable cost of the City service, and the manner in which those costs are allocated to a payer bears a fair and reasonable relationship to the payer’s burden on, or benefits received from, the City service funded by the fee. Certain types of fees, such as fines, penalties and/or late charges, or charges imposed for entrance to or use of, as well as the purchase, rental, or lease of local government property, are expressly exempted from the requirements of Proposition 26. These types of fees are more typically governed by local market rates, reasonableness, and potentially other policy factors. STAKEHOLDER ENGAGEMENT Staff has coordinated internally with budget and management staff in each department citywide 5 Municipal Code 16.64.110 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-75337 6 CMR 7518 https://www.cityofpaloalto.org/civicax/filebank/documents/54800 7 CMR 14074 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas-minutes/city- council-agendas-minutes/2022/20220613/20220613pccsm-final-amended-linked.pdf Attachment A, Exhibit 5Item 29 Attachment A, Exhibit 5 - Fiscal Year 2024 Municipal Fee Changes Item 29: Staff Report Pg. 72 Packet Pg. 883 of 911 2 1 1 4 to develop the recommendations in this report. Conversations with the City Council throughout May and June prior to the adoption of the FY 2024 Operating and Capital Budgets and Municipal Fee Schedule allow for public participation in this annual process. Staff will also comply with notice requirements under state law for amending the fees, including the Mitigation Fee Act. ENVIRONMENTAL REVIEW This activity is not a project under California Environmental Quality Act (CEQA) as defined in CEQA Guidelines, section 15378, because it has no potential for resulting in either a direct or reasonably foreseeable indirect physical change in the environment. ATTACHMENTS Attachment A: Municipal Fee Schedule Amendments for FY 2024 Changed Fees Attachment B: Municipal Fee Schedule Amendments for FY 2024 Partner Agency or Vendor Changed Fees APPROVED BY: Kiely Nose, Assistant City Manager Attachment A, Exhibit 5Item 29 Attachment A, Exhibit 5 - Fiscal Year 2024 Municipal Fee Changes Item 29: Staff Report Pg. 73 Packet Pg. 884 of 911 Attachment A: Page 1 of 3 Municipal Fee Schedule Amendments for FY 2024 Changed Fees ATTACHMENT A 1 5 0 6 Administrative Services Budget Book $40.00 each $46.00 each 15.0%Fees aligned to cover material and staffing costs Mailing (Certified)$3.75 each $4.15 each 10.7% Returned Payment Charge (CA Civil Code Section 1719)$25.00 each $25.00 each 0.0% Tobacco Retail Permit One-time application fee $347. Annual permit fee $434.One-time application fee $347. Annual permit fee $434.0.0% Fee set by outside agency Business Registry Fee $50.00 per business $50.00 per business 0.0%Fee set by Council policy City Clerk Domestic Partners Registration Fee $38.00 each $38.00 each 0.0%Keep fees flat due to low volume Candidate Filing Fee $25.00 each $25.00 each 0.0%To avoid discouraging use Certification Fee $11.00 each $11.00 each 0.0%To avoid discouraging use Fair Political Practices Commission Photocopies $0.10 per page $0.10 per page 0.0%Fee set by outside agency Community Services A. Vehicle Entry - Daily Fee - Vehicle Capacity 9 passengers or less $6.00 each $6.00 each 0.0% B. Vehicle Entry - Daily Fee - Vehicle Capacity 10 - 24 passengers $30.00 each $30.00 each 0.0% C. Vehicle Entry - Daily Fee - Vehicle Capacity 25 or more passengers with a group permit $60.00 each $60.00 each 0.0% To avoid discouraging use Canoe (Foothills Nature Preserve Only)$20.00 per hour $22.00 per hour 10.0% Field Trips $200.00 per group $263.00 per group 31.5% Align fee to actual costs Synthetic Turf Field - Palo Alto Based Youth Sports Organizations Resident Fee: $40.00 per hour Non-Resident Fee: Not Available Resident Fee: $40.00 per hour Non-Resident Fee: Not Available 0.0%Fee recently increased; maintain cost recovery level Organic Garden Clean-up/Security Deposit $100.00 - $200.00 per garden plot $100.00 - $200.00 per garden plot 0.0% Teen Center Membership - Monthly $5.00 - $10.00 per month $5.00 - $10.00 per month 0.0% Teen Center Membership - School Year $70.00 each $70.00 each 0.0% Towle Camp (8 People)$30.00 per day $30.00 per day 0.0% To avoid discouraging use Fire Alarm Registration Fee - New $56.00 per incident $56.00 per incident 0.0% Alarm Registration Fee - Renewal $42.00 per incident $42.00 per incident 0.0% Alarm Registration Late Fee $20.00 per incident $20.00 per incident 0.0% Alarm Reinstatement Fee $50.00 per incident $50.00 per incident 0.0% Keep fees flat due to recent rollout Returned Check Fee $25.00 per incident $25.00 per incident 0.0%Fee set by outside agency Engine Company Second Reinspection $279.00 per hour $279.00 per hour 0.0%Keep fee flat due to cost recovery level Paramedic Internship Fee $1,000.00 each $1,000.00 each 0.0%To avoid discouraging use Library Billing Fee for Overdue Items $5.00 per item $5.00 per item 0.0% Collection Agency Processing Fee $10.00 per item $12.00 per item 20.0% Damaged and Lost Materials - LINK+$115.00 per item $115.00 per item 0.0% Fees set by outside agency Expired Hold Fee $1.00 per item $1.00 per item 0.0% Laser Prints - Black & White $0.15 per page $0.15 per page 0.0% Laser Prints - Color $0.50 per page $0.50 per page 0.0% Mitchell Park Library Community Room Resident Fee: $66.00 per hour Non-Resident Fee: $99.00 per hour Resident Fee: $66.00 per hour Non-Resident Fee: $99.00 per hour 0.0% Mitchell Park Library Community Room - Full Day Rental Resident Fee: $330.00 per dayNon-Resident Fee: $494.00 per day Resident Fee: $330.00 per dayNon-Resident Fee: $494.00 per day 0.0% Overdue Materials - In House Laptops $0.30 per hour $0.30 per hour 0.0% Photography/Filming - Space Rental Fee $100.00 - $2,000.00 per session $100.00 - $2,000.00 per session 0.0% Replacement Library Card $1.00 each $1.00 each 0.0% To avoid discouraging use Attachment A, Exhibit 5Item 29 Attachment A, Exhibit 5 - Fiscal Year 2024 Municipal Fee Changes Item 29: Staff Report Pg. 74 Packet Pg. 885 of 911 Attachment A: Page 2 of 3 Municipal Fee Schedule Amendments for FY 2024 Changed Fees ATTACHMENT A 1 5 0 6 Rinconada Library Community Room Resident Fee: $96.00 per hour Non-Resident Fee: $143.00 per hour Resident Fee: $96.00 per hour Non-Resident Fee: $143.00 per hour 0.0% Rinconada Library Community Room - Full Day Rental Resident Fee: $478.00 per dayNon-Resident Fee: $716.00 per day Resident Fee: $478.00 per dayNon-Resident Fee: $716.00 per day 0.0% Room Cleaning & Damage Deposit $306.00 - $3,060.00 per deposit $306.00 - $3,060.00 per deposit 0.0% Room Cleaning Fee - Add on $80.00 - $500.00 per event $80.00 - $500.00 per event 0.0% Office of Transportation (OOT) All Downtown and SOFA Garages and Lots - One Day Parking Permit $25.00 per day $0.00 - $25.00 per day 0.0%Provide flexibility in adjustment of pricing based on market conditions. All Downtown and SOFA Lots and Garages Annual Parking Permit $900.00 per year $900.00 per year 0.0% All Downtown and SOFA Lots and Garages Reduced-Price Annual Parking Permit $225.00 per year $225.00 per year 0.0% Bicycle Training (or other training TBD)$17.00 - $80.00 per class $17.00 - $80.00 per class 0.0% FY 2024 pricing based on CMR #11795(November 1, 2021) California Avenue Area All Garages and Lots - Daily Parking Permit $25.00 per day $0 - $25 per day 0.0%Provide flexibility in adjustment of pricing based on market conditions. California Avenue Area All Garages and Lots Annual Parking Permit $650.00 per year $650.00 per year 0.0% California Avenue Area All Garages and Lots Reduced- Price Annual Parking Permit $162.50 per year $162.50 per year 0.0% FY 2024 pricing based on CMR #11795(November 1, 2021) Charleston Arastradero - Commercial $0.46 per sq. ft $0.49 per sq. ft 6.5%Provide flexibility in adjustment of pricing based on market conditions. College Terrace RPP - Annual Resident Parking Permit $50.00 per year $50.00 per year 0.0% College Terrace RPP Daily Resident Parking Permit $5.00 per day $5.00 per day 0.0% Crescent Park NOP - Annual Resident Parking Permit $50.00 per year $50.00 per year 0.0% Crescent Park NOP Daily Resident Parking Permit $5.00 per day $5.00 per day 0.0% Downtown RPP - Annual Resident Parking Permit $50.00 per year $50.00 per year 0.0% Downtown RPP - Daily Resident Parking Permit $5.00 per day $5.00 per day 0.0% Downtown RPP - Reduced-Price Employee Parking Permit $131.25 each $131.25 each 0.0% Downtown RPP Full Price Employee Parking Permit $525.00 each $525.00 each 0.0% Evergreen Park - Mayfield RPP Annual Resident Parking Permit $50.00 per year $50.00 per year 0.0% Evergreen Park - Mayfield RPP Daily Resident Parking Permit $5.00 per day $5.00 per day 0.0% Evergreen Park - Mayfield RPP Full Price Employee Parking Permit $375.00 each $375.00 each 0.0% Evergreen Park - Mayfield RPP Reduced-Price Employee Parking Permit $93.75 each $93.75 each 0.0% Old Palo Alto RPP - Annual Resident Parking Permit $50.00 per year $50.00 per year 0.0% Old Palo Alto RPP - Daily Resident Parking Permit $5.00 per day $5.00 per day 0.0% Southgate RPP - Annual Resident Parking Permit $50.00 per year $50.00 per year 0.0% Southgate RPP - Daily Resident Parking Permit $5.00 per day $5.00 per day 0.0% Southgate RPP - Full Price Employee Parking Permit $375.00 each $375.00 each 0.0% Southgate RPP - Reduced Price Employee Parking Permit $93.75 each $93.75 each 0.0% Standard On-street Disabled Parking Space $1,010.00 each $1,010.00 each 0.0% FY 2024 pricing based on CMR #11795 (November 1, 2021) Planning and Development Services A. $1.00 - $25,000.00 Permit Valuation $1.00 per unit $1.00 per unit 0.0% B. $25,001.00 - $50,000.00 Permit Valuation $2.00 per unit $2.00 per unit 0.0% C. $50,001.00 - $75,000.00 Permit Valuation $3.00 per unit $3.00 per unit 0.0% D. $75,001.00 - $100,000.00 Permit Valuation $4.00 per unit $4.00 per unit 0.0% E. Each $25,000.00 Increment or Fraction Thereof Above $100,000.00 $1.00 per unit $1.00 per unit 0.0% F. Minimum $1.00 per unit $1.00 per unit 0.0% SB 1186 Mandated Fee $4.00 each $4.00 each 0.0% SB 330 Fee $2,961.84 each $2,961.84 each 0.0% Fees set by outside agency Attachment A, Exhibit 5Item 29 Attachment A, Exhibit 5 - Fiscal Year 2024 Municipal Fee Changes Item 29: Staff Report Pg. 75 Packet Pg. 886 of 911 Attachment A: Page 3 of 3 Municipal Fee Schedule Amendments for FY 2024 Changed Fees ATTACHMENT A 1 5 0 6 Parkland Dedication Fee - Land Single Family: 531 sq. ft. per unit Multi-Family: 366 sq. ft. per unit Single Family: 531 sq. ft. per unit Multi-Family: 366 sq. ft. per unit 0.0%FY 2024 pricing based on CMR #11795 (November 1, 2021) Police Concealed Weapons Permit Application - New $30.00 per application $30.00 per application 0.0% Concealed Weapons Permit Application - Renewal $20.00 per application $20.00 per application 0.0%Fee in line with that of neighboring jurisdictions Department of Justice Fingerprint and Rolling Fee $69.00 each $52.00 each -24.6% OPM/DOD Background Check $5.00 per application $5.00 per application 0.0% Report Copy Fee $14.00 each $15.00 each 7.1% Secondhand Dealer - DOJ $300.00 per application $300.00 per application 0.0% State Mandated Fees - First Offense $35.00 per occurrence $35.00 per occurrence 0.0% State Mandated Fees - Second Offense $50.00 per occurrence $50.00 per occurrence 0.0% State Mandated Fees - Third and Subsequent Offenses $100.00 per occurrence $100.00 per occurrence 0.0% Subpoena Fee $24.00 per hour $24.00 per hour 0.0% Fee set by outside agency Temporary Street Closure $124.00 - $1,474.00 plus cost to provide certain services $124.00 - $1,474.00 plus cost to provide certain services 0.0%Maintain cost recovery level Vehicle Repossession Receipt $15.00 each $15.00 each 0.0%Fee set by outside agency Public Works A. Pavement Condition: Poor $12.00 per square foot $13.00 per square foot 8.3% B. Pavement Condition: Fair/At-Risk $15.00 per square foot $16.00 per square foot 6.7% C. Pavement Condition: Good $18.00 per square foot $19.00 per square foot 5.6% D. Pavement Condition: Very Good - Excellent $25.00 per square foot $27.00 per square foot 8.0% Electric Vehicle Charger Connection $0.00 to $2.00 per connection $0.00 to $2.00 per connection 0.0% Electric Vehicle Charger Connection Overstay $0.00 to $5.00 per hour $0.00 to $5.00 per hour 0.0% Electric Vehicle Charging $0.23 per kilowatt hour $0.23 per kilowatt hour 0.0% Service Lateral Connection $1,650.00 each $1,681.00 each 1.9% Adjustment of labor and materials costs. Attachment A, Exhibit 5Item 29 Attachment A, Exhibit 5 - Fiscal Year 2024 Municipal Fee Changes Item 29: Staff Report Pg. 76 Packet Pg. 887 of 911 Attachment B: Page 1 of 2 Municipal Fee Schedule Amendments for FY 2024 Partner Agency or Vendor Changed Fees ATTACHMENT B 1 5 0 6 Community Services 48-Hour Cancellation Fee (non-refundable)$25.00 per pet $25.00 per pet 0% Fee set by vendor A. Domestic Animals (up to 20lbs)$81.00 per pet $81.00 per pet 0%Fee set by vendor A. Neuter (0lbs - 50lbs)$100.00 per pet $100.00 per pet 0%Fee set by vendor Adoption Hold Fee $25.00 per pet $25.00 per pet 0%Fee set by vendor Antibiotic Injection $18.00 per pet $18.00 per pet 0%Fee set by vendor Attempted Spay Surgery in Previously Spayed Animal $38.00 per pet $40.00 per pet 7.5%Change title from “Previously Spayed/Neutered.” B. Dogs (21lbs to 75lbs)$119.00 per pet $119.00 per pet 0%Fee set by vendor B. Neuter (51lbs and over)$150.00 per pet $150.00 per pet 0%Fee set by vendor B. Vehicle Entry - Daily Fee - Vehicle Capacity 10-24 passengers $30.00 each $30.00 each 0%Fee set by vendor Bandages $28.00 - $47.00 per pet; $76.00 per pet; $83.00 - $110.00 per pet $28.00 - $110.00 per pet 0%Consolidated three fees (Bandages – Paws, Bandages – Robert Jones, Bandages – Splint) into one ranged fee. Bordatella $15.00 per pet $15.00 per pet 0%Fee set by vendor C. Dogs (76lbs and over)$71.00 per pet $71.00 per pet 0%Fee set by vendor C. Neuter (100 lbs and over)$200.00 per pet $200.00 per pet 0%Fee set by vendor Canine Training Deposit $75.00 each $75.00 each 0%Fee set by vendor Cat (Boarding)$20.00 per day $20.00 per day 0%Fee set by vendor Cockatiels, Parakeets, Chickens, Pigeons, & Doves $10.00 per pet $10.00 per pet 0%Fee set by vendor Common Procedures - Fluorescein Eye Stain $18.00 each $18.00 each 0%Fee set by vendor Common Procedures - Flushing Drains $3.00 each $3.00 each 0%Fee set by vendor Common Procedures - Medical Grooming $87.00 per hour $87.00 per hour 0%Fee set by vendor Common Procedures - Oral or Topical Treatment $3.00 each $3.00 each 0%Fee set by vendor Cryptorchid Fee $50.00 - $100.00 per pet $53.00 - $107.00 per pet 7.5%Change title from “Cryptorchid plus Neuter Fee.” D. Small Animals and Birds $43.00 per pet $43.00 per pet 0%Fee set by vendor D. Spay (0lbs - 50lbs)$125.00 per pet $125.00 per pet 0%Fee set by vendor DA2PP (Vaccination)$15.00 per pet $15.00 per pet 0%Fee set by vendor Deciduous Tooth Extraction $27.00 each $27.00 each 0%Fee set by vendor Deworming $29.00 per pet $31.00 per pet 7.5%Change title from “Common Procedures – Wormings.” Dog (Boarding)$20.00 per day $20.00 per day 0%Fee set by vendor E. Spay (51lbs and over)$175.00 per pet $175.00 per pet 0%Fee set by vendor Ear Cleaning $35.00 per pet $35.00 per pet 0%Fee set by vendor Ear Mite Treatment $32.00 per pet $32.00 per pet 0%Fee set by vendor Exotic Animals $10.00 per pet $10.00 per pet 0%Fee set by vendor F. Cremation Services - Custom Engraved Plaque Fee $22.00 each $22.00 each 0%Fee set by vendor F. Spay (100 lbs and over)$225.00 per pet $225.00 per pet 0%Fee set by vendor Feline Leukemia $15.00 per pet $15.00 per pet 0%Fee set by vendor; change title from “Leukemia.” Feral TNR Package $55.00 per pet $55.00 per pet 0%Fee set by vendor Feral/Rescue Own FeLV/FIV Test $16.00 per pet $17.25 per pet 7.5%Change title from “Feral Rescue Own Felv/FIV Test.” Feral/Rescue Own Vaccine $5.00 per pet $5.00 per pet 0%Change title from “Feral Rescue Own Vaccine.” Flea Preventative (per dose)$20.00 - $28.00 per pet $20.00 - $28.00 per pet 0%Change title from “Flea Preventative.” Fluid Therapy - IV Fluids $26.00 each $26.00 each 0%Fee set by vendor Fluid Therapy - SQ (Cats)$41.00 each $41.00 each 0%Fee set by vendor Fluid Therapy - SQ (Dogs)$53.00 each $53.00 each 0%Fee set by vendor FVRCP $15.00 per pet $15.00 per pet 0%Fee set by vendor Injectable Medication $29.00 each, $41.00 each; $46.00 each; $58.00 each $18.00 - $58.00 each 0%Consolidate from four fees Injections - IM & SQ; Injections – IV; Injections - IV solu-delta cortef 100mg; Injections - IV solu-delta cortef 500mg into one ranged fee). IV Catheter Placement $58.00 each $62.00 each 7.5%Change title from “Fluid Therapy - IV Catheter plus Insertion.” Kitten Package $100.00 per pet $100.00 per pet 0%Fee set by vendor Attachment A, Exhibit 5Item 29 Attachment A, Exhibit 5 - Fiscal Year 2024 Municipal Fee Changes Item 29: Staff Report Pg. 77 Packet Pg. 888 of 911 Attachment B: Page 2 of 2 Municipal Fee Schedule Amendments for FY 2024 Partner Agency or Vendor Changed Fees ATTACHMENT B 1 5 0 6 Labwork - Fecal $29.00 each $29.00 each 0%Fee set by vendor Labwork - FeLV/FIV Test $35.00 each $35.00 each 0%Fee set by vendor Labwork - Fungal Culture $35.00 each $37.00 7.5%Change title from Labwork - DTM Labwork - Heartworm Test $41.00 each $41.00 each 0%Fee set by vendor Labwork - Parvo Test $41.00 each $44.00 each 7.5%Change title from “Labwork - Cite CPV Test” Labwork - PCV $17.00 each $17.00 each 0%Fee set by vendor Labwork - PCV/TP $29.00 each $29.00 each 0%Fee set by vendor Labwork - Pre-surgical $150.00 per pet $150.00 per pet 0%Fee set by vendor Labwork - Skin Scraping $24.00 each $24.00 each 0%Fee set by vendor Labwork - Urine Dipstick $17.00 each $17.00 each 0%Consolidated from two fees: Labwork - Multistick Urinalysis and Labwork - Azostick or Dextrostick Late Fee $30.00 per dog $30.00 per dog 0%Fee set by vendor Late Fee for Spay/Neuter Pickup $25.00 per pet $25.00 per pet 0%Fee set by vendor Local Anesthetic $35.00 each $37.00 each 7.5%Change title from “Sedation/Anesthesia – Local.” Long-Acting Topical Ear Medication $60.00 per pet $64.00 per pet 7.5%Change title from “Ear Antibiotics.” Microchip $25.00 per pet $25.00 per pet 0%Fee set by vendor Nail Clip $10.00 per pet $10.00 per pet 0%Fee set by vendor Neuter (Cat)$70.00 per pet $70.00 per pet 0%Fee set by vendor No-Show Fee (non-refundable)$50.00 per pet $50.00 per pet 0%Fee set by vendor Oral Prescription Medication $12.00 - $70.00 per medication $13.00 - $75.00 per medication 7.5%Change title from “Common Procedures - Medication (Rx Fee).” Puppy Package $100.00 per pet $100.00 per pet 0%Fee set by vendor Rabbit (Boarding)$20.00 per day $20.00 per day 0%Fee set by vendor Rabbits (Adoption)$40.00 per pet $40.00 per pet 0%Fee set by vendor Rabies (Vaccination)$15.00 per pet $15.00 per pet 0%Fee set by vendor Rabies (Actual Clinic Cost)$6.00 per pet $6.00 per pet 0%Fee set by vendor Rats, Hamsters, Guinea Pigs, & Mice (Adoption)$10.00 per pet $10.00 per pet 0%Fee set by vendor Replacement License Tags (Dogs)$5.00 each $5.00 each 0%Fee set by vendor Rescue Group (Non-Profit) - Cat Neuter $50.00 per pet $50.00 per pet 0%Fee set by vendor Rescue Group (Non-Profit) - Cat Spay $65.00 per pet $65.00 per pet 0%Fee set by vendor Rescue Group (Non-Profit) - Dog Spay (over 50 lbs)$125.00 per pet $125.00 per pet 0%Fee set by vendor Rescue Group (Non-Profit) - Dog Spay (under 50 lbs)$100.00 per pet $100.00 per pet 0%Fee set by vendor Sedation/Anesthesia - IM $58.00 each $58.00 each 0%Fee set by vendor Sedation/Anesthesia - IV $82.00 each $82.00 each 0%Fee set by vendor Small Animal (Reptiles, Birds, etc.) (Boarding)$20.00 per day $20.00 per day 0%Fee set by vendor Spay (Cat)$85.00 per pet $85.00 per pet 0%Fee set by vendor Special Medications City cost plus $17.00 service fee City cost plus $18.00 service fee 7.5%Change title from “Special Rx.” Specialized Feeding $5.00 each $5.00 each 0%Change title from “Common Procedures – Force Feeding.” Surgery - Surgical Time/Veterinary Treatment Time $116.00 per hour $116.00 per hour 0%Fee set by vendor Tapeworm Treatment $17.00 per pet $18.00 per pet 0%Change title from “Droncit Injection (Tapeworms).” Trap Rental - Deposit $100.00 each $100.00 each 0%Fee set by vendor Trap Rental (14 day maximum)$5.00 per day $5.00 per day 0%Fee set by vendor Umbilical Hernia Repair $38.00 - $81.00 per pet $40.00 - $87.00 per pet 7.5%Change title from “Umbilical Hernia.” Veterinarian Time $160.00 per hour $172.00 per hour 7.5%Change title from “City Veterinarian.” Attachment A, Exhibit 5Item 29 Attachment A, Exhibit 5 - Fiscal Year 2024 Municipal Fee Changes Item 29: Staff Report Pg. 78 Packet Pg. 889 of 911 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max 190 Non-Exempt Accountant 690P $42.15 $52.68 $63.22 $87,672 $109,574 $131,498 76 Exempt Administrative Assistant 750P $33.70 $42.12 $50.55 $70,096 $87,610 $105,144 115 Exempt Assistant Chief Building Official 405M $61.18 $76.47 $91.77 $127,254 $159,058 $190,882 132 Exempt Assistant Chief of Police 100A $100.25 $125.31 $150.38 $208,520 $260,645 $312,790 108 Exempt Assistant City Attorney 165A $76.94 $96.17 $115.41 $160,035 $200,034 $240,053 109 Exempt Assistant City Clerk 630M $46.58 $58.22 $69.87 $96,886 $121,098 $145,330 107 Exempt Assistant City Manager 20E $100.00 $124.99 $149.99 $208,000 $259,979 $311,979 73 Exempt Assistant Director Administrative Services 120A $82.99 $103.73 $124.48 $172,619 $215,758 $258,918 126 Exempt Assistant Director Community Services 150A $79.46 $99.32 $119.19 $165,277 $206,586 $247,915 1007 Exempt Assistant Director Human Resources 155A $76.84 $96.04 $115.25 $159,827 $199,763 $239,720 2001 Exempt Assistant Director Library Services 160A $71.75 $89.68 $107.62 $149,240 $186,534 $223,850 10 Exempt Assistant Director Planning & Community Environment 130A $80.81 $101.01 $121.22 $168,085 $210,101 $252,138 143 Exempt Assistant Director Public Works 140A $79.88 $99.84 $119.81 $166,150 $207,667 $249,205 TBD Exempt Assistant Director Sustainability & Climate Action TBD $88.14 $110.18 $132.21 $183,333 $229,166 $275,000 168 Exempt Assistant Fleet Manager 585M $46.28 $57.85 $69.42 $96,262 $120,328 $144,394 102 Exempt Assistant Manager WQCP 240D $66.07 $82.58 $99.10 $137,426 $171,766 $206,128 30 Exempt Assistant to the City Manager 390M $64.79 $80.98 $97.18 $134,763 $168,438 $202,134 118 Exempt Chief Building Official 290M $78.36 $97.95 $117.54 $162,989 $203,736 $244,483 2008 Exempt Chief Communications Officer 135A $76.41 $95.51 $114.62 $158,933 $198,661 $238,410 112 Exempt Chief Planning Official 220D $70.08 $87.60 $105.12 $145,766 $182,208 $218,650 95 Exempt Chief Procurement Officer 235D $59.86 $74.82 $89.79 $124,509 $155,626 $186,763 82 Exempt Chief Transportation Official 140A $75.94 $94.92 $113.91 $157,955 $197,434 $236,933 96 Exempt Claims Investigator 660P $40.94 $51.17 $61.41 $85,155 $106,434 $127,733 24 Exempt Communication Specialist 615M $44.30 $55.37 $66.45 $92,144 $115,170 $138,216 89 Exempt Contracts Administrator 585P $52.00 $65.00 $78.00 $108,160 $135,200 $162,240 186 Non-Exempt Coordinator Library Circulation 675M $42.29 $52.86 $63.44 $87,963 $109,949 $131,955 191 Exempt Fire Marshal 125A $91.24 $114.04 $136.85 $189,779 $237,203 $284,648 11 Exempt Deputy City Attorney 375M $60.35 $75.43 $90.52 $125,528 $156,894 $188,282 71 Exempt Deputy City Clerk 720M $36.49 $45.61 $54.74 $75,899 $94,869 $113,859 55 Exempt Deputy City Manager 115A $79.33 $99.16 $119.00 $165,006 $206,253 $247,520 195 Exempt Deputy Director Technical Services Division 200D $74.84 $93.55 $112.26 $155,667 $194,584 $233,501 20 Exempt Deputy Fire Chief 110A $95.04 $118.79 $142.55 $197,683 $247,083 $296,504 81 Exempt Director Administrative Services/Chief Financial Officer 50E $96.60 $120.74 $144.89 $200,928 $251,139 $301,371 City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 07/01/2023 (4% Increase) Hourly Rate Annual Salary Page 1 Attachment B Item 29 Attachment B - Revised Salary Schedule for the Management and Professionals Group Item 29: Staff Report Pg. 79 Packet Pg. 890 of 911 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 07/01/2023 (4% Increase) Hourly Rate Annual Salary 72 Exempt Director Community Services 45E $91.85 $114.81 $137.78 $191,048 $238,805 $286,582 1012 Exempt Director Development Services 145A $80.69 $100.86 $121.04 $167,835 $209,789 $251,763 133 Exempt Director Human Resources/Chief People Officer 55E $92.09 $115.11 $138.14 $191,547 $239,429 $287,331 128 Exempt Director Information Technology/Chief Information Officer 25E $100.58 $125.72 $150.87 $209,206 $261,498 $313,810 131 Exempt Director Libraries 60E $86.00 $107.50 $129.00 $178,880 $223,600 $268,320 2028 Exempt Director of Emergency Medical Services 215D $72.42 $90.52 $108.63 $150,634 $188,282 $225,950 2005 Exempt Director Office of Emergency Services 215D $72.42 $90.52 $108.63 $150,634 $188,282 $225,950 49 Exempt Director Office of Management and Budget 120A $82.99 $103.73 $124.48 $172,619 $215,758 $258,918 134 Exempt Director Planning & Community Environment 40E $96.84 $121.05 $145.26 $201,427 $251,784 $302,141 135 Exempt Director Public Works/City Engineer 30E $98.08 $122.60 $147.12 $204,006 $255,008 $306,010 121 Exempt Director Utilities 10E $115.75 $144.68 $173.62 $240,760 $300,934 $361,130 2002 Exempt Division Head Library Services 260D $62.69 $78.36 $94.04 $130,395 $162,989 $195,603 172 Exempt Division Manager Open Space, Parks & Golf 245D $65.17 $81.46 $97.76 $135,554 $169,437 $203,341 2031 Exempt Division Manager Planning 220D $70.08 $87.60 $105.12 $145,766 $182,208 $218,650 1005 Exempt Executive Assistant to the City Manager 705M $38.06 $47.57 $57.09 $79,165 $98,946 $118,747 139 Exempt Fire Chief 35E $109.32 $136.64 $163.97 $227,386 $284,211 $341,058 163 Exempt Hearing Officer 480M $53.57 $66.96 $80.36 $111,426 $139,277 $167,149 101 Exempt Human Resources Representative 735P $35.61 $44.51 $53.42 $74,069 $92,581 $111,114 90 Exempt Landscape Architect Park Planner 510M $51.02 $63.77 $76.53 $106,122 $132,642 $159,182 2015 Exempt Legal Fellow 755P $44.87 $56.08 $67.30 $93,330 $116,646 $139,984 171 Exempt Management Analyst 585M $46.28 $57.85 $69.42 $96,262 $120,328 $144,394 79 Exempt Manager Accounting 235D $63.30 $79.12 $94.95 $131,664 $164,570 $197,496 2007 Exempt Manager Airport 210D $72.66 $90.82 $108.99 $151,133 $188,906 $226,699 2023 Exempt Manager Budget 360M $67.16 $83.95 $100.74 $139,693 $174,616 $209,539 38 Exempt Manager Communications 525M $51.32 $64.15 $76.98 $106,746 $133,432 $160,118 154 Exempt Manager Community Services 630M $47.72 $59.64 $71.57 $99,258 $124,051 $148,866 169 Exempt Manager Community Services Sr Program 585M $51.26 $64.07 $76.89 $106,621 $133,266 $159,931 1013 Exempt Manager Development Center 495M $57.92 $72.40 $86.88 $120,474 $150,592 $180,710 63 Exempt Manager Economic Development 220D $66.88 $83.60 $100.32 $139,110 $173,888 $208,666 44 Exempt Manager Employee Benefits 450M $57.23 $71.53 $85.84 $119,038 $148,782 $178,547 45 Exempt Manager Employee Relations & Training 235D $63.30 $79.12 $94.95 $131,664 $164,570 $197,496 93 Exempt Manager Environmental Control Program 419M $62.26 $77.82 $93.39 $129,501 $161,866 $194,251 1116 Exempt Manager Facilities 445M $54.93 $68.66 $82.40 $114,254 $142,813 $171,392 Page 2 Attachment B Item 29 Attachment B - Revised Salary Schedule for the Management and Professionals Group Item 29: Staff Report Pg. 80 Packet Pg. 891 of 911 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 07/01/2023 (4% Increase) Hourly Rate Annual Salary 2030 Exempt Manager Finance 223D $66.44 $83.04 $99.65 $138,195 $172,723 $207,272 127 Exempt Manager Fleet 255D $55.48 $69.35 $83.22 $115,398 $144,248 $173,098 2018 Exempt Manager Human Services 540M $53.81 $67.26 $80.72 $111,925 $139,901 $167,898 32 Exempt Manager Information Technology 230D $64.72 $80.89 $97.07 $134,618 $168,251 $201,906 2006 Exempt Manager Information Technology Security 230D $61.20 $76.50 $91.80 $127,296 $159,120 $190,944 158 Exempt Manager Laboratory Services 495M $52.28 $65.35 $78.42 $108,742 $135,928 $163,114 78 Exempt Manager Library Services 565M $50.61 $63.26 $75.92 $105,269 $131,581 $157,914 92 Exempt Manager Maintenance Operations 469M $51.22 $64.02 $76.83 $106,538 $133,162 $159,806 26 Exempt Manager Transportation Planning 345M $67.27 $84.08 $100.90 $139,922 $174,886 $209,872 51 Exempt Manager Planning 415M $61.47 $76.83 $92.20 $127,858 $159,806 $191,776 103 Exempt Manager Real Property 235D $59.86 $74.82 $89.79 $124,509 $155,626 $186,763 2011 Exempt Manager Revenue Collections 250D $56.26 $70.32 $84.39 $117,021 $146,266 $175,531 160 Exempt Manager Solid Waste 330M $65.84 $82.30 $98.76 $136,947 $171,184 $205,421 57 Exempt Manager Treasury, Debt & Investments 235D $61.72 $77.15 $92.58 $128,378 $160,472 $192,566 86 Exempt Manager Urban Forestry 436M $57.07 $71.33 $85.60 $118,706 $148,366 $178,048 178 Exempt Manager Water Quality Control Plant 205D $74.57 $93.21 $111.86 $155,106 $193,877 $232,669 39 Exempt Manager Watershed Protection 330M $67.09 $83.86 $100.64 $139,547 $174,429 $209,331 1008 Exempt Office of Emergency Services Coordinator 525M $49.78 $62.22 $74.67 $103,542 $129,418 $155,314 2024 Exempt Performance Auditor I 750P $33.70 $42.12 $50.55 $70,096 $87,610 $105,144 100 Exempt Performance Auditor II 585M $46.28 $57.85 $69.42 $96,262 $120,328 $144,394 148 Exempt Police Chief 15E $112.85 $141.06 $169.28 $234,728 $293,405 $352,102 2021 Exempt Chief Assistant City Attorney 101A $99.48 $124.35 $149.22 $206,918 $258,648 $310,378 2016 Exempt Principal Business Analyst 310M $63.77 $79.71 $95.66 $132,642 $165,797 $198,973 2029 Exempt Principal Planner 469M $51.63 $64.53 $77.44 $107,390 $134,222 $161,075 2003 Exempt Principal Management Analyst 360M $63.52 $79.40 $95.28 $132,122 $165,152 $198,182 2009 Exempt Project Manager 570M $52.34 $65.42 $78.51 $108,867 $136,074 $163,301 2012 Exempt Public Safety Communications Manager 495M $52.28 $65.35 $78.42 $108,742 $135,928 $163,114 166 Exempt Public Safety Program Manager 585M $46.28 $57.85 $69.42 $96,262 $120,328 $144,394 117 Exempt Senior Accountant 525M $55.93 $69.91 $83.90 $116,334 $145,413 $174,512 2013 Exempt Senior Business Analyst - M 420M $55.52 $69.40 $83.28 $115,482 $144,352 $173,222 187 Exempt Senior Engineer 300M $71.47 $89.33 $107.20 $148,658 $185,806 $222,976 106 Exempt Senior Executive Assistant 450M $54.12 $67.65 $81.18 $112,570 $140,712 $168,854 157 Exempt Senior Human Resources Administrator 545M $48.72 $60.89 $73.07 $101,338 $126,651 $151,986 Page 3 Attachment B Item 29 Attachment B - Revised Salary Schedule for the Management and Professionals Group Item 29: Staff Report Pg. 81 Packet Pg. 892 of 911 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max City of Palo Alto Management, Professional and Confidential Salary Schedule Effective 07/01/2023 (4% Increase) Hourly Rate Annual Salary 14 Exempt Senior Management Analyst 465M $54.08 $67.59 $81.11 $112,486 $140,587 $168,709 130 Exempt Senior Performance Auditor 510M $51.02 $63.77 $76.53 $106,122 $132,642 $159,182 53 Exempt Senior Project Manager 300M $71.47 $89.33 $107.20 $148,658 $185,806 $222,976 33 Exempt Senior Technologist 420M $60.52 $75.65 $90.78 $125,882 $157,352 $188,822 155 Exempt Superintendent Animal Services 540M $48.59 $60.73 $72.88 $101,067 $126,318 $151,590 83 Exempt Superintendent Community Services 480M $58.01 $72.51 $87.02 $120,661 $150,821 $181,002 1117 Exempt Superintendent Recreation 480M $58.01 $72.51 $87.02 $120,661 $150,821 $181,002 2022 Exempt Supervising Librarian 675M $42.45 $53.06 $63.68 $88,296 $110,365 $132,454 161 Exempt Supervisor Facilities Management 600M $45.25 $56.56 $67.88 $94,120 $117,645 $141,190 113 Exempt Supervisor Inspection and Surveying 540M $48.59 $60.73 $72.88 $101,067 $126,318 $151,590 146 Exempt Supervisor Warehouse 660M $40.94 $51.17 $61.41 $85,155 $106,434 $127,733 181 Exempt Supervisor Water Quality Control Operations 525M $49.78 $62.22 $74.67 $103,542 $129,418 $155,314 2027 Exempt Utilities Chief Operating Officer 60E $83.41 $104.26 $125.12 $173,493 $216,861 $260,250 905 Non-Exempt Human Resources Technician 830C $29.85 $37.31 $44.78 $62,088 $77,605 $93,142 903 Non-Exempt Legal Secretary-Confidential 820C $30.60 $38.24 $45.89 $63,648 $79,539 $95,451 67 Exempt Secretary to City Attorney 800C $36.26 $45.32 $54.39 $75,421 $94,266 $113,131 1004 Non-Exempt Senior Legal Secretary - Confidential 810C $33.70 $42.12 $50.55 $70,096 $87,610 $105,144 Confidential Classifications Page 4 Attachment B Item 29 Attachment B - Revised Salary Schedule for the Management and Professionals Group Item 29: Staff Report Pg. 82 Packet Pg. 893 of 911 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max 190 Non-Exempt Accountant 690P $42.61 $53.26 $63.92 $88,629 $110,781 $132,954 76 Exempt Administrative Assistant 750P $34.16 $42.70 $51.24 $71,053 $88,816 $106,579 115 Exempt Assistant Chief Building Official 405M $61.64 $77.05 $92.46 $128,211 $160,264 $192,317 132 Exempt Assistant Chief of Police 100A $100.72 $125.89 $151.07 $209,498 $261,851 $314,226 108 Exempt Assistant City Attorney 165A $77.40 $96.75 $116.10 $160,992 $201,240 $241,488 109 Exempt Assistant City Clerk 630M $47.04 $58.80 $70.56 $97,843 $122,304 $146,765 107 Exempt Assistant City Manager 20E $100.46 $125.57 $150.69 $208,957 $261,186 $313,435 73 Exempt Assistant Director Administrative Services 120A $83.45 $104.31 $125.18 $173,576 $216,965 $260,374 126 Exempt Assistant Director Community Services 150A $79.92 $99.90 $119.88 $166,234 $207,792 $249,350 1007 Exempt Assistant Director Human Resources 155A $77.30 $96.62 $115.95 $160,784 $200,970 $241,176 2001 Exempt Assistant Director Library Services 160A $72.21 $90.26 $108.32 $150,197 $187,741 $225,306 10 Exempt Assistant Director Planning & Community Environment 130A $81.28 $101.59 $121.91 $169,062 $211,307 $253,573 143 Exempt Assistant Director Public Works 140A $80.34 $100.42 $120.51 $167,107 $208,874 $250,661 TBD Exempt Assistant Director Sustainability & Climate Action TBD $88.61 $110.76 $132.92 $184,309 $230,381 $276,474 168 Exempt Assistant Fleet Manager 585M $46.75 $58.43 $70.12 $97,240 $121,534 $145,850 102 Exempt Assistant Manager WQCP 240D $66.53 $83.16 $99.80 $138,382 $172,973 $207,584 30 Exempt Assistant to the City Manager 390M $65.25 $81.56 $97.88 $135,720 $169,645 $203,590 118 Exempt Chief Building Official 290M $78.83 $98.53 $118.24 $163,966 $204,942 $245,939 2008 Exempt Chief Communications Officer 135A $76.88 $96.09 $115.31 $159,910 $199,867 $239,845 112 Exempt Chief Planning Official 220D $70.55 $88.18 $105.82 $146,744 $183,414 $220,106 95 Exempt Chief Procurement Officer 235D $60.32 $75.40 $90.48 $125,466 $156,832 $188,198 82 Exempt Chief Transportation Official 140A $76.40 $95.50 $114.60 $158,912 $198,640 $238,368 96 Exempt Claims Investigator 660P $41.40 $51.75 $62.10 $86,112 $107,640 $129,168 24 Exempt Communication Specialist 615M $44.76 $55.95 $67.14 $93,101 $116,376 $139,651 89 Exempt Contracts Administrator 585P $52.47 $65.58 $78.70 $109,138 $136,406 $163,696 186 Non-Exempt Coordinator Library Circulation 675M $42.76 $53.44 $64.13 $88,941 $111,155 $133,390 191 Exempt Fire Marshal 125A $91.70 $114.62 $137.55 $190,736 $238,410 $286,104 11 Exempt Deputy City Attorney 375M $60.81 $76.01 $91.22 $126,485 $158,101 $189,738 71 Exempt Deputy City Clerk 720M $36.96 $46.19 $55.43 $76,877 $96,075 $115,294 55 Exempt Deputy City Manager 115A $79.80 $99.74 $119.69 $165,984 $207,459 $248,955 195 Exempt Deputy Director Technical Services Division 200D $75.31 $94.13 $112.96 $156,645 $195,790 $234,957 20 Exempt Deputy Fire Chief 110A $95.50 $119.37 $143.25 $198,640 $248,290 $297,960 81 Exempt Director Administrative Services/Chief Financial Officer 50E $97.06 $121.32 $145.59 $201,885 $252,346 $302,827 City of Palo Alto Management, Professional and Confidential Salary Schedule Effective pay period inclusive of 01/01/2024 (Annual $100 Medical Offset) Hourly Rate Annual Salary Page 1 Attachment B Item 29 Attachment B - Revised Salary Schedule for the Management and Professionals Group Item 29: Staff Report Pg. 83 Packet Pg. 894 of 911 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max City of Palo Alto Management, Professional and Confidential Salary Schedule Effective pay period inclusive of 01/01/2024 (Annual $100 Medical Offset) Hourly Rate Annual Salary 72 Exempt Director Community Services 45E $92.32 $115.39 $138.47 $192,026 $240,011 $288,018 1012 Exempt Director Development Services 145A $81.16 $101.44 $121.73 $168,813 $210,995 $253,198 133 Exempt Director Human Resources/Chief People Officer 55E $92.56 $115.69 $138.83 $192,525 $240,635 $288,766 128 Exempt Director Information Technology/Chief Information Officer 25E $101.04 $126.30 $151.56 $210,163 $262,704 $315,245 131 Exempt Director Libraries 60E $86.47 $108.08 $129.70 $179,858 $224,806 $269,776 2028 Exempt Director of Emergency Medical Services 215D $72.88 $91.10 $109.32 $151,590 $189,488 $227,386 2005 Exempt Director Office of Emergency Services 215D $72.88 $91.10 $109.32 $151,590 $189,488 $227,386 49 Exempt Director Office of Management and Budget 120A $83.45 $104.31 $125.18 $173,576 $216,965 $260,374 134 Exempt Director Planning & Community Environment 40E $97.31 $121.63 $145.96 $202,405 $252,990 $303,597 135 Exempt Director Public Works/City Engineer 30E $98.55 $123.18 $147.82 $204,984 $256,214 $307,466 121 Exempt Director Utilities 10E $116.21 $145.26 $174.32 $241,717 $302,141 $362,586 2002 Exempt Division Head Library Services 260D $63.16 $78.94 $94.73 $131,373 $164,195 $197,038 172 Exempt Division Manager Open Space, Parks & Golf 245D $65.64 $82.04 $98.45 $136,531 $170,643 $204,776 2031 Exempt Division Manager Planning 220D $70.55 $88.18 $105.82 $146,744 $183,414 $220,106 1005 Exempt Executive Assistant to the City Manager 705M $38.52 $48.15 $57.78 $80,122 $100,152 $120,182 139 Exempt Fire Chief 35E $109.78 $137.22 $164.67 $228,342 $285,418 $342,514 163 Exempt Hearing Officer 480M $54.04 $67.54 $81.05 $112,403 $140,483 $168,584 101 Exempt Human Resources Representative 735P $36.08 $45.09 $54.11 $75,046 $93,787 $112,549 90 Exempt Landscape Architect Park Planner 510M $51.48 $64.35 $77.22 $107,078 $133,848 $160,618 2015 Exempt Legal Fellow 755P $45.33 $56.66 $68.00 $94,286 $117,853 $141,440 171 Exempt Management Analyst 585M $46.75 $58.43 $70.12 $97,240 $121,534 $145,850 79 Exempt Manager Accounting 235D $63.76 $79.70 $95.64 $132,621 $165,776 $198,931 2007 Exempt Manager Airport 210D $73.12 $91.40 $109.68 $152,090 $190,112 $228,134 2023 Exempt Manager Budget 360M $67.63 $84.53 $101.44 $140,670 $175,822 $210,995 38 Exempt Manager Communications 525M $51.79 $64.73 $77.68 $107,723 $134,638 $161,574 154 Exempt Manager Community Services 630M $48.18 $60.22 $72.27 $100,214 $125,258 $150,322 169 Exempt Manager Community Services Sr Program 585M $51.72 $64.65 $77.58 $107,578 $134,472 $161,366 1013 Exempt Manager Development Center 495M $58.39 $72.98 $87.58 $121,451 $151,798 $182,166 63 Exempt Manager Economic Development 220D $67.35 $84.18 $101.02 $140,088 $175,094 $210,122 44 Exempt Manager Employee Benefits 450M $57.69 $72.11 $86.54 $119,995 $149,989 $180,003 45 Exempt Manager Employee Relations & Training 235D $63.76 $79.70 $95.64 $132,621 $165,776 $198,931 93 Exempt Manager Environmental Control Program 419M $62.72 $78.40 $94.08 $130,458 $163,072 $195,686 1116 Exempt Manager Facilities 445M $55.40 $69.24 $83.09 $115,232 $144,019 $172,827 Page 2 Attachment B Item 29 Attachment B - Revised Salary Schedule for the Management and Professionals Group Item 29: Staff Report Pg. 84 Packet Pg. 895 of 911 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max City of Palo Alto Management, Professional and Confidential Salary Schedule Effective pay period inclusive of 01/01/2024 (Annual $100 Medical Offset) Hourly Rate Annual Salary 2030 Exempt Manager Finance 223D $66.90 $83.62 $100.35 $139,152 $173,930 $208,728 127 Exempt Manager Fleet 255D $55.95 $69.93 $83.92 $116,376 $145,454 $174,554 2018 Exempt Manager Human Services 540M $54.28 $67.84 $81.41 $112,902 $141,107 $169,333 32 Exempt Manager Information Technology 230D $65.18 $81.47 $97.77 $135,574 $169,458 $203,362 2006 Exempt Manager Information Technology Security 230D $61.67 $77.08 $92.50 $128,274 $160,326 $192,400 158 Exempt Manager Laboratory Services 495M $52.75 $65.93 $79.12 $109,720 $137,134 $164,570 78 Exempt Manager Library Services 565M $51.08 $63.84 $76.61 $106,246 $132,787 $159,349 92 Exempt Manager Maintenance Operations 469M $51.68 $64.60 $77.52 $107,494 $134,368 $161,242 26 Exempt Manager Transportation Planning 345M $67.73 $84.66 $101.60 $140,878 $176,093 $211,328 51 Exempt Manager Planning 415M $61.93 $77.41 $92.90 $128,814 $161,013 $193,232 103 Exempt Manager Real Property 235D $60.32 $75.40 $90.48 $125,466 $156,832 $188,198 2011 Exempt Manager Revenue Collections 250D $56.72 $70.90 $85.08 $117,978 $147,472 $176,966 160 Exempt Manager Solid Waste 330M $66.31 $82.88 $99.46 $137,925 $172,390 $206,877 57 Exempt Manager Treasury, Debt & Investments 235D $62.19 $77.73 $93.28 $129,355 $161,678 $194,022 86 Exempt Manager Urban Forestry 436M $57.53 $71.91 $86.30 $119,662 $149,573 $179,504 178 Exempt Manager Water Quality Control Plant 205D $75.04 $93.79 $112.55 $156,083 $195,083 $234,104 39 Exempt Manager Watershed Protection 330M $67.56 $84.44 $101.33 $140,525 $175,635 $210,766 1008 Exempt Office of Emergency Services Coordinator 525M $50.24 $62.80 $75.36 $104,499 $130,624 $156,749 2024 Exempt Performance Auditor I 750P $34.16 $42.70 $51.24 $71,053 $88,816 $106,579 100 Exempt Performance Auditor II 585M $46.75 $58.43 $70.12 $97,240 $121,534 $145,850 148 Exempt Police Chief 15E $113.32 $141.64 $169.97 $235,706 $294,611 $353,538 2021 Exempt Chief Assistant City Attorney 101A $99.95 $124.93 $149.92 $207,896 $259,854 $311,834 2016 Exempt Principal Business Analyst 310M $64.24 $80.29 $96.35 $133,619 $167,003 $200,408 2029 Exempt Principal Planner 469M $52.09 $65.11 $78.14 $108,347 $135,429 $162,531 2003 Exempt Principal Management Analyst 360M $63.99 $79.98 $95.98 $133,099 $166,358 $199,638 2009 Exempt Project Manager 570M $52.80 $66.00 $79.20 $109,824 $137,280 $164,736 2012 Exempt Public Safety Communications Manager 495M $52.75 $65.93 $79.12 $109,720 $137,134 $164,570 166 Exempt Public Safety Program Manager 585M $46.75 $58.43 $70.12 $97,240 $121,534 $145,850 117 Exempt Senior Accountant 525M $56.40 $70.49 $84.59 $117,312 $146,619 $175,947 2013 Exempt Senior Business Analyst - M 420M $55.99 $69.98 $83.98 $116,459 $145,558 $174,678 187 Exempt Senior Engineer 300M $71.93 $89.91 $107.90 $149,614 $187,013 $224,432 106 Exempt Senior Executive Assistant 450M $54.59 $68.23 $81.88 $113,547 $141,918 $170,310 157 Exempt Senior Human Resources Administrator 545M $49.18 $61.47 $73.77 $102,294 $127,858 $153,442 Page 3 Attachment B Item 29 Attachment B - Revised Salary Schedule for the Management and Professionals Group Item 29: Staff Report Pg. 85 Packet Pg. 896 of 911 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max City of Palo Alto Management, Professional and Confidential Salary Schedule Effective pay period inclusive of 01/01/2024 (Annual $100 Medical Offset) Hourly Rate Annual Salary 14 Exempt Senior Management Analyst 465M $54.54 $68.17 $81.81 $113,443 $141,794 $170,165 130 Exempt Senior Performance Auditor 510M $51.48 $64.35 $77.22 $107,078 $133,848 $160,618 53 Exempt Senior Project Manager 300M $71.93 $89.91 $107.90 $149,614 $187,013 $224,432 33 Exempt Senior Technologist 420M $60.99 $76.23 $91.48 $126,859 $158,558 $190,278 155 Exempt Superintendent Animal Services 540M $49.05 $61.31 $73.58 $102,024 $127,525 $153,046 83 Exempt Superintendent Community Services 480M $58.48 $73.09 $87.71 $121,638 $152,027 $182,437 1117 Exempt Superintendent Recreation 480M $58.48 $73.09 $87.71 $121,638 $152,027 $182,437 2022 Exempt Supervising Librarian 675M $42.92 $53.64 $64.37 $89,274 $111,571 $133,890 161 Exempt Supervisor Facilities Management 600M $45.72 $57.14 $68.57 $95,098 $118,851 $142,626 113 Exempt Supervisor Inspection and Surveying 540M $49.05 $61.31 $73.58 $102,024 $127,525 $153,046 146 Exempt Supervisor Warehouse 660M $41.40 $51.75 $62.10 $86,112 $107,640 $129,168 181 Exempt Supervisor Water Quality Control Operations 525M $50.24 $62.80 $75.36 $104,499 $130,624 $156,749 2027 Exempt Utilities Chief Operating Officer 60E $83.88 $104.84 $125.81 $174,470 $218,067 $261,685 905 Non-Exempt Human Resources Technician 830C $30.32 $37.89 $45.47 $63,066 $78,811 $94,578 903 Non-Exempt Legal Secretary-Confidential 820C $31.06 $38.82 $46.59 $64,605 $80,746 $96,907 67 Exempt Secretary to City Attorney 800C $36.72 $45.90 $55.08 $76,378 $95,472 $114,566 1004 Non-Exempt Senior Legal Secretary - Confidential 810C $34.16 $42.70 $51.24 $71,053 $88,816 $106,579 Confidential Classifications Page 4 Attachment B Item 29 Attachment B - Revised Salary Schedule for the Management and Professionals Group Item 29: Staff Report Pg. 86 Packet Pg. 897 of 911 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max 190 Non-Exempt Accountant 690P $44.32 $55.40 $66.48 $92,186 $115,232 $138,278 76 Exempt Administrative Assistant 750P $35.53 $44.41 $53.30 $73,902 $92,373 $110,864 115 Exempt Assistant Chief Building Official 405M $64.12 $80.14 $96.17 $133,370 $166,691 $200,034 132 Exempt Assistant Chief of Police 100A $104.75 $130.93 $157.12 $217,880 $272,334 $326,810 108 Exempt Assistant City Attorney 165A $80.50 $100.62 $120.75 $167,440 $209,290 $251,160 109 Exempt Assistant City Clerk 630M $48.93 $61.16 $73.40 $101,774 $127,213 $152,672 107 Exempt Assistant City Manager 20E $104.48 $130.60 $156.72 $217,318 $271,648 $325,978 73 Exempt Assistant Director Administrative Services 120A $86.80 $108.49 $130.19 $180,544 $225,659 $270,795 126 Exempt Assistant Director Community Services 150A $83.12 $103.90 $124.68 $172,890 $216,112 $259,334 1007 Exempt Assistant Director Human Resources 155A $80.40 $100.49 $120.59 $167,232 $209,019 $250,827 2001 Exempt Assistant Director Library Services 160A $75.11 $93.88 $112.66 $156,229 $195,270 $234,333 10 Exempt Assistant Director Planning & Community Environment 130A $84.53 $105.66 $126.80 $175,822 $219,773 $263,744 143 Exempt Assistant Director Public Works 140A $83.56 $104.44 $125.33 $173,805 $217,235 $260,686 TBD Exempt Assistant Director Sustainability & Climate Action TBD $92.16 $115.20 $138.24 $191,693 $239,616 $287,539 168 Exempt Assistant Fleet Manager 585M $48.62 $60.77 $72.93 $101,130 $126,402 $151,694 102 Exempt Assistant Manager WQCP 240D $69.20 $86.49 $103.79 $143,936 $179,899 $215,883 30 Exempt Assistant to the City Manager 390M $67.87 $84.83 $101.80 $141,170 $176,446 $211,744 118 Exempt Chief Building Official 290M $81.99 $102.48 $122.98 $170,539 $213,158 $255,798 2008 Exempt Chief Communications Officer 135A $79.96 $99.94 $119.93 $166,317 $207,875 $249,454 112 Exempt Chief Planning Official 220D $73.37 $91.71 $110.06 $152,610 $190,757 $228,925 95 Exempt Chief Procurement Officer 235D $62.74 $78.42 $94.11 $130,499 $163,114 $195,749 82 Exempt Chief Transportation Official 140A $79.46 $99.32 $119.19 $165,277 $206,586 $247,915 96 Exempt Claims Investigator 660P $43.06 $53.82 $64.59 $89,565 $111,946 $134,347 24 Exempt Communication Specialist 615M $46.56 $58.19 $69.83 $96,845 $121,035 $145,246 89 Exempt Contracts Administrator 585P $54.57 $68.21 $81.86 $113,506 $141,877 $170,269 186 Non-Exempt Coordinator Library Circulation 675M $44.47 $55.58 $66.70 $92,498 $115,606 $138,736 191 Exempt Fire Marshal 125A $95.37 $119.21 $143.06 $198,370 $247,957 $297,565 11 Exempt Deputy City Attorney 375M $63.25 $79.06 $94.88 $131,560 $164,445 $197,350 71 Exempt Deputy City Clerk 720M $38.44 $48.04 $57.65 $79,955 $99,923 $119,912 55 Exempt Deputy City Manager 115A $82.99 $103.73 $124.48 $172,619 $215,758 $258,918 195 Exempt Deputy Director Technical Services Division 200D $78.32 $97.90 $117.48 $162,906 $203,632 $244,358 20 Exempt Deputy Fire Chief 110A $99.32 $124.15 $148.98 $206,586 $258,232 $309,878 81 Exempt Director Administrative Services/Chief Financial Officer 50E $100.95 $126.18 $151.42 $209,976 $262,454 $314,954 City of Palo Alto Management, Professional and Confidential Salary Schedule Effective Pay period inclusive of 07/01/2024 (4% Increase) Hourly Rate Annual Salary Page 1 Attachment B Item 29 Attachment B - Revised Salary Schedule for the Management and Professionals Group Item 29: Staff Report Pg. 87 Packet Pg. 898 of 911 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max City of Palo Alto Management, Professional and Confidential Salary Schedule Effective Pay period inclusive of 07/01/2024 (4% Increase) Hourly Rate Annual Salary 72 Exempt Director Community Services 45E $96.01 $120.01 $144.02 $199,701 $249,621 $299,562 1012 Exempt Director Development Services 145A $84.40 $105.50 $126.60 $175,552 $219,440 $263,328 133 Exempt Director Human Resources/Chief People Officer 55E $96.26 $120.32 $144.39 $200,221 $250,266 $300,331 128 Exempt Director Information Technology/Chief Information Officer 25E $105.09 $131.36 $157.64 $218,587 $273,229 $327,891 131 Exempt Director Libraries 60E $89.93 $112.41 $134.90 $187,054 $233,813 $280,592 2028 Exempt Director of Emergency Medical Services 215D $75.80 $94.75 $113.70 $157,664 $197,080 $236,496 2005 Exempt Director Office of Emergency Services 215D $75.80 $94.75 $113.70 $157,664 $197,080 $236,496 49 Exempt Director Office of Management and Budget 120A $86.80 $108.49 $130.19 $180,544 $225,659 $270,795 134 Exempt Director Planning & Community Environment 40E $101.20 $126.50 $151.80 $210,496 $263,120 $315,744 135 Exempt Director Public Works/City Engineer 30E $102.49 $128.11 $153.74 $213,179 $266,469 $319,779 121 Exempt Director Utilities 10E $120.87 $151.08 $181.30 $251,410 $314,246 $377,104 2002 Exempt Division Head Library Services 260D $65.68 $82.10 $98.52 $136,614 $170,768 $204,922 172 Exempt Division Manager Open Space, Parks & Golf 245D $68.27 $85.33 $102.40 $142,002 $177,486 $212,992 2031 Exempt Division Manager Planning 220D $73.37 $91.71 $110.06 $152,610 $190,757 $228,925 1005 Exempt Executive Assistant to the City Manager 705M $40.07 $50.08 $60.10 $83,346 $104,166 $125,008 139 Exempt Fire Chief 35E $114.17 $142.71 $171.26 $237,474 $296,837 $356,221 163 Exempt Hearing Officer 480M $56.20 $70.25 $84.30 $116,896 $146,120 $175,344 101 Exempt Human Resources Representative 735P $37.52 $46.90 $56.28 $78,042 $97,552 $117,062 90 Exempt Landscape Architect Park Planner 510M $53.55 $66.93 $80.32 $111,384 $139,214 $167,066 2015 Exempt Legal Fellow 755P $47.15 $58.93 $70.72 $98,072 $122,574 $147,098 171 Exempt Management Analyst 585M $48.62 $60.77 $72.93 $101,130 $126,402 $151,694 79 Exempt Manager Accounting 235D $66.32 $82.89 $99.47 $137,946 $172,411 $206,898 2007 Exempt Manager Airport 210D $76.05 $95.06 $114.08 $158,184 $197,725 $237,286 2023 Exempt Manager Budget 360M $70.34 $87.92 $105.51 $146,307 $182,874 $219,461 38 Exempt Manager Communications 525M $53.86 $67.32 $80.79 $112,029 $140,026 $168,043 154 Exempt Manager Community Services 630M $50.11 $62.63 $75.16 $104,229 $130,270 $156,333 169 Exempt Manager Community Services Sr Program 585M $53.80 $67.24 $80.69 $111,904 $139,859 $167,835 1013 Exempt Manager Development Center 495M $60.72 $75.90 $91.08 $126,298 $157,872 $189,446 63 Exempt Manager Economic Development 220D $70.04 $87.55 $105.06 $145,683 $182,104 $218,525 44 Exempt Manager Employee Benefits 450M $60.00 $75.00 $90.00 $124,800 $156,000 $187,200 45 Exempt Manager Employee Relations & Training 235D $66.32 $82.89 $99.47 $137,946 $172,411 $206,898 93 Exempt Manager Environmental Control Program 419M $65.24 $81.54 $97.85 $135,699 $169,603 $203,528 1116 Exempt Manager Facilities 445M $57.61 $72.01 $86.42 $119,829 $149,781 $179,754 Page 2 Attachment B Item 29 Attachment B - Revised Salary Schedule for the Management and Professionals Group Item 29: Staff Report Pg. 88 Packet Pg. 899 of 911 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max City of Palo Alto Management, Professional and Confidential Salary Schedule Effective Pay period inclusive of 07/01/2024 (4% Increase) Hourly Rate Annual Salary 2030 Exempt Manager Finance 223D $69.58 $86.97 $104.37 $144,726 $180,898 $217,090 127 Exempt Manager Fleet 255D $58.19 $72.73 $87.28 $121,035 $151,278 $181,542 2018 Exempt Manager Human Services 540M $56.45 $70.56 $84.68 $117,416 $146,765 $176,134 32 Exempt Manager Information Technology 230D $67.79 $84.73 $101.68 $141,003 $176,238 $211,494 2006 Exempt Manager Information Technology Security 230D $64.14 $80.17 $96.21 $133,411 $166,754 $200,117 158 Exempt Manager Laboratory Services 495M $54.86 $68.57 $82.29 $114,109 $142,626 $171,163 78 Exempt Manager Library Services 565M $53.12 $66.40 $79.68 $110,490 $138,112 $165,734 92 Exempt Manager Maintenance Operations 469M $53.76 $67.19 $80.63 $111,821 $139,755 $167,710 26 Exempt Manager Transportation Planning 345M $70.44 $88.05 $105.66 $146,515 $183,144 $219,773 51 Exempt Manager Planning 415M $64.41 $80.51 $96.62 $133,973 $167,461 $200,970 103 Exempt Manager Real Property 235D $62.74 $78.42 $94.11 $130,499 $163,114 $195,749 2011 Exempt Manager Revenue Collections 250D $59.00 $73.74 $88.49 $122,720 $153,379 $184,059 160 Exempt Manager Solid Waste 330M $68.96 $86.20 $103.44 $143,437 $179,296 $215,155 57 Exempt Manager Treasury, Debt & Investments 235D $64.68 $80.84 $97.01 $134,534 $168,147 $201,781 86 Exempt Manager Urban Forestry 436M $59.84 $74.79 $89.75 $124,467 $155,563 $186,680 178 Exempt Manager Water Quality Control Plant 205D $78.04 $97.55 $117.06 $162,323 $202,904 $243,485 39 Exempt Manager Watershed Protection 330M $70.26 $87.82 $105.39 $146,141 $182,666 $219,211 1008 Exempt Office of Emergency Services Coordinator 525M $52.26 $65.32 $78.39 $108,701 $135,866 $163,051 2024 Exempt Performance Auditor I 750P $35.53 $44.41 $53.30 $73,902 $92,373 $110,864 100 Exempt Performance Auditor II 585M $48.62 $60.77 $72.93 $101,130 $126,402 $151,694 148 Exempt Police Chief 15E $117.85 $147.31 $176.78 $245,128 $306,405 $367,702 2021 Exempt Chief Assistant City Attorney 101A $103.95 $129.93 $155.92 $216,216 $270,254 $324,314 2016 Exempt Principal Business Analyst 310M $66.81 $83.51 $100.22 $138,965 $173,701 $208,458 2029 Exempt Principal Planner 469M $54.18 $67.72 $81.27 $112,694 $140,858 $169,042 2003 Exempt Principal Management Analyst 360M $66.55 $83.18 $99.82 $138,424 $173,014 $207,626 2009 Exempt Project Manager 570M $54.92 $68.64 $82.37 $114,234 $142,771 $171,330 2012 Exempt Public Safety Communications Manager 495M $54.86 $68.57 $82.29 $114,109 $142,626 $171,163 166 Exempt Public Safety Program Manager 585M $48.62 $60.77 $72.93 $101,130 $126,402 $151,694 117 Exempt Senior Accountant 525M $58.65 $73.31 $87.98 $121,992 $152,485 $182,998 2013 Exempt Senior Business Analyst - M 420M $58.23 $72.78 $87.34 $121,118 $151,382 $181,667 187 Exempt Senior Engineer 300M $74.81 $93.51 $112.22 $155,605 $194,501 $233,418 106 Exempt Senior Executive Assistant 450M $56.77 $70.96 $85.16 $118,082 $147,597 $177,133 157 Exempt Senior Human Resources Administrator 545M $51.15 $63.93 $76.72 $106,392 $132,974 $159,578 Page 3 Attachment B Item 29 Attachment B - Revised Salary Schedule for the Management and Professionals Group Item 29: Staff Report Pg. 89 Packet Pg. 900 of 911 Job Code FLSA Status Classifications Grade Codes Min Mid Max Min Mid Max City of Palo Alto Management, Professional and Confidential Salary Schedule Effective Pay period inclusive of 07/01/2024 (4% Increase) Hourly Rate Annual Salary 14 Exempt Senior Management Analyst 465M $56.72 $70.90 $85.08 $117,978 $147,472 $176,966 130 Exempt Senior Performance Auditor 510M $53.55 $66.93 $80.32 $111,384 $139,214 $167,066 53 Exempt Senior Project Manager 300M $74.81 $93.51 $112.22 $155,605 $194,501 $233,418 33 Exempt Senior Technologist 420M $63.43 $79.28 $95.14 $131,934 $164,902 $197,891 155 Exempt Superintendent Animal Services 540M $51.02 $63.77 $76.53 $106,122 $132,642 $159,182 83 Exempt Superintendent Community Services 480M $60.82 $76.02 $91.23 $126,506 $158,122 $189,758 1117 Exempt Superintendent Recreation 480M $60.82 $76.02 $91.23 $126,506 $158,122 $189,758 2022 Exempt Supervising Librarian 675M $44.64 $55.79 $66.95 $92,851 $116,043 $139,256 161 Exempt Supervisor Facilities Management 600M $47.55 $59.43 $71.32 $98,904 $123,614 $148,346 113 Exempt Supervisor Inspection and Surveying 540M $51.02 $63.77 $76.53 $106,122 $132,642 $159,182 146 Exempt Supervisor Warehouse 660M $43.06 $53.82 $64.59 $89,565 $111,946 $134,347 181 Exempt Supervisor Water Quality Control Operations 525M $52.26 $65.32 $78.39 $108,701 $135,866 $163,051 2027 Exempt Utilities Chief Operating Officer 60E $87.24 $109.04 $130.85 $181,459 $226,803 $272,168 905 Non-Exempt Human Resources Technician 830C $31.53 $39.41 $47.30 $65,582 $81,973 $98,384 903 Non-Exempt Legal Secretary-Confidential 820C $32.31 $40.38 $48.46 $67,205 $83,990 $100,797 67 Exempt Secretary to City Attorney 800C $38.20 $47.74 $57.29 $79,456 $99,299 $119,163 1004 Non-Exempt Senior Legal Secretary - Confidential 810C $35.53 $44.41 $53.30 $73,902 $92,373 $110,864 Confidential Classifications Page 4 Attachment B Item 29 Attachment B - Revised Salary Schedule for the Management and Professionals Group Item 29: Staff Report Pg. 90 Packet Pg. 901 of 911 Attachment C: Summary of Stanford Related Programs and Services Operating Fire Stanford reimburses the City for providing Fire services to the University based on an agreement between the City and the University. Operating Office of Transp. Palo Alto Link (PAL) On Demand Transit Services The FY 2024 Budget adds funding to engage in a pilot period to expand Palo Alto Link services to provide on-demand transit services. Stanford provides funding for a portion of this service Dispatch Communication Services Contract with Stanford University Stanford reimburses the City for providing dispatcher communication services to the University based on an agreement between the City and the University. 16000 Quarry Road Improvements and Transit Center Access Funding moved from FY24 to FY25 in 5-year CIP. Stanford is the lead on this project, and in order to continue with it, Stanford needs to annex a portion of parkland in order to ensure that it can be used for transit center access. A ballot measure proposing this action is expected in 2024. Fire Training Facility Replacement This project will identify an appropriate site and construct a new fire training facility in Palo Alto. The current training facility is located on the Stanford University campus and is not owned by the City. A feasibility study will be conducted in FY 2024 to determine the facility needs as well as an appropriate and available location for the new facility. Item 29 Attachment C - Relevant Stanford Programs and Services Item 29: Staff Report Pg. 91 Packet Pg. 902 of 911 2 0 8 3 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Administrative Services Meeting Date: June 19, 2023 Report #:2304-1355 TITLE Adoption of a Resolution Proposing the Appropriations Limit for Fiscal Year 2024 RECOMMENDATION Staff recommends that Council adopt the attached Resolution determining the Appropriations Limit for Fiscal Year 2024 (Attachment A). The City's Fiscal Year 2024 appropriations are estimated to be $53.86 million under the limit based on the Fiscal Year 2024 Budget, as recommended to the City Council for review and adoption on June 19, 2023. BACKGROUND California voters approved an initiative on November 6, 1979 that added Article XIIIB to the State Constitution, as amended by Proposition 98 in 1988 and Proposition 111 in 1990. The provisions of this article place limits on the amount of revenue that can be appropriated by all entities of government. The appropriation limit is based on actual appropriations during the 1978-1979 fiscal year, as increased each year using specified population and inflationary growth factors. The original legislation implementing the provisions of Article XIIIB became effective January 1, 1981. In accordance with that legislation, the governing body of each government jurisdiction must, by resolution, establish its annual appropriation limit for the coming year (prior to July 1) at a regularly scheduled meeting or noticed special meeting. Based on Article XIIIB, the City of Palo Alto can use the larger of two measurements of population growth, (county or city population growth) in the appropriations limit calculation. For Fiscal Year 2024, the City is using the 2022- 2023 percent change in population growth of the County of Santa Clara in the calculation. The City typically uses the highest factor in order to provide maximum appropriation flexibility. ANALYSIS The appropriations limit is adjusted annually on the basis of population and per capita income changes provided annually by the California Department of Finance. This updated information is received from the California Department of Finance in May, after the City's proposed budget has been submitted to Council. Attached is the final appropriations limit calculation, based on the Item 30 Item 30 Staff Report Item 30: Staff Report Pg. 1 Packet Pg. 903 of 911 2 0 8 3 updated information as well as allowable appropriation limit adjustment factors such as voter- approved debt and capital outlay expenditures. The appropriations limit for Fiscal Year 2024 is $211.80 million for funds subject to the appropriation limits. The City's Fiscal Year 2024 budgeted appropriations are estimated to be $53.86 million under the limit. As required by State law, documentation used to compute the appropriations limit has been made available to the public at least fifteen days prior to the Council meeting at which the appropriations limit is being adopted, and notice was published of the availability of these materials. FISCAL/RESOURCE IMPACT The adoption of the Fiscal Year 2024 Appropriations Limit has no impact on City resources. STAKEHOLDER ENGAGEMENT A public notice was provided on June 2, 2023 stating the availability of the calculation materials on the City’s website, and that the Appropriations Limit is being adopted on June 19, 2023. ENVIRONMENTAL REVIEW Council action on this item is not a project as defined by CEQA because establishing the Fiscal Year 2024 appropriations limit is a government funding mechanisms or fiscal activity which does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. CEQA Guidelines section 15378(b)(4). ATTACHMENTS Attachment A: GANN Resolution FY 2024 Attachment B: GANN Notice FY 2024 APPROVED BY: Kiely Nose, Assistant City Manager Item 30 Item 30 Staff Report Item 30: Staff Report Pg. 2 Packet Pg. 904 of 911 NOT YET APPROVED Attachment A 1 Resolution No.XXXX Resolution of the Council of the City of Palo Alto Establishing the City’s Appropriations Limit for Fiscal Year 2024 WHEREAS, under Article XIIIB of the Constitution of the State of California, the City of Palo Alto (City) may not appropriate any proceeds of taxes in excess of its appropriations limit; and WHEREAS, since fiscal year 1991, the City is permitted to adjust its appropriations limit annually based on inflation and population adjustment factors; and WHEREAS, pursuant to Government Code Section 37200, the calculation of the appropriations limit and the total appropriations subject to the limit were set forth in the annual budget of the City for Fiscal Year 2024, which was adopted by ordinance of the Council on June 19, 2023; and WHEREAS, pursuant to Government Code sections 7901 and 7910, the final calculation of the appropriations limit has been determined, and the adjustment factors on which the calculation is based are a 4.44% percent change in California per capita income and a -0.25% percent change in the population growth for the County of Santa Clara; and WHEREAS, the documentation used in the determination of the appropriations limit has been made available to the general public for fifteen (15) days prior to the date of adoption of this resolution; and WHEREAS, according to the final calculation, the City’s net appropriations subject to limitation are approximately $157.94 million. NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The Council of the City of Palo Alto hereby finds that, for Fiscal Year 2024, the final calculation of the appropriations limit of the City of Palo Alto has been determined in accordance with the adjustment factors referred to above, the documentation used in the determination of the calculation has been made available to the general public for the period of fifteen days as required by law, and the City’s appropriations are under the appropriations limit by approximately $53.86 million. Item 30 Attachment A - GANN Resolution FY 2024 Item 30: Staff Report Pg. 3 Packet Pg. 905 of 911 NOT YET APPROVED Attachment A 2 SECTION 2. The Council hereby adopts the final calculation of the appropriations limit of the City for Fiscal Year 2024, a copy of which is attached hereto as Exhibit 1. SECTION 3. The Council finds that the adoption of this resolution does not constitute a project under the Section 15378(b)(4) of California Environmental Quality Act Guidelines because establishing the annual appropriations limit is a fiscal activity, and, therefore, no environmental assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST:APPROVED: __________________________________________________________ City Clerk Mayor APPROVED AS TO FORM:_______________________________ City Manager ___________________________ Assistant City Attorney _______________________________ Administrative Services Director Item 30 Attachment A - GANN Resolution FY 2024 Item 30: Staff Report Pg. 4 Packet Pg. 906 of 911 Attachment B FY 2024 Adopted Bud et 279.58$ 138.31$ 25.74$ 12.02$ 455.65$ Less: Interfund Transfers (33.58)$ (7.38)$ (19.67)$ -$ 60.63$ Allocated Char es (25.87)$ (0.28)$ (0.42)$ -$ 26.57$ Non-Proceeds (57.79)$ (132.92)$ (7.49)$ (12.32)$ 210.52$ Net Appropriations Subject to Limit 162.35$2.26$ 1.84$0.30$157.94$ FY 2023 Per Capita Income Change (CA Department of Finance)4.44% Factor A 1.0444 FY 2023 Population Change (County of Santa Clara)-0.25% Factor B 0.9975 203.30$ 1.041789 211.80$ Net Appropriations Sub ect to Limit 157.94$ Amount Under the Limit 53.86$ 2023 1.0755 1.0000 1.0756 203.30$ 138.39$ 64.91$ 2022 1.0573 0.9999 1.0572 189.03$ 127.09$ 63.07$ 2021 1.0373 1.0037 1.0411 179.86$ 113.06$ 66.81$ 2020 1.0385 1.0033 1.0419 171.74$ 127.42$ 45.34$ 2019 1.0367 1.0040 1.0408 164.83$ 114.94$ 50.87$ 2018 1.0369 1.0082 1.0454 158.36$ 131.49$ 26.88$ 2017 1.0537 1.0130 1.0674 151.48$ 109.51$ 41.97$ 2016 1.0382 1.0113 1.0499 141.92$ 100.60$ 41.31$ 2015 0.9977 1.0150 1.0127 135.17$ 82.93$ 52.24$ 2014 1.0512 1.0157 1.0677 133.48$ 90.28$ 43.20$ 2013 1.0377 1.0124 1.0506 125.01$ 96.73$ 28.28$ APPROPRIATIONS LIMITATION COMPLIANCE CALCULATION FOR FISCAL YEAR 2024 ADOPTED BUDGET ($ IN MILLIONS) Total Budgeted Appropriations General Fund Capital Projects Funds Special Revenue Funds Debt Service Fund Combined Funds FY 2023 Adopted Appropriations Limit Factor A x Factor B FY 2024 Adopted Appropriations Limit On November 6, 1979, California voters approved Proposition 4, an initiative that added Article XIIIB to the state Constitution. The provisions of this article place limits on the amount of revenue that can be appropriated by all entities of government. The Appropriations Limit is based on actual appropriations during the 1978-1979 fiscal year, as increased each year using specified population and inflationary growth factors. The City of Palo Alto remains well within its appropriations limit in FY 2024. Future year limit trends can be made based on the average change in regional population and income growth. The appropriations subject to limitation includes proceeds of taxes from the General Fund, Capital Projects Fund, and Special Revenue Funds. Fiscal Year Per Capita Income Factor Population Change Factor Total Adjustment Factor Appropriations Limit Appropriations Subject to Limit Amount Under the Limit Item 30 Attachment B - GANN Notice FY 2024 Item 30: Staff Report Pg. 5 Packet Pg. 907 of 911 CITY COUNCIL Colleague’s Memo Sponsor(s): Council Member Burt, Mayor Kou, and Vice Mayor Stone Subject: Authority to Form Friendship Cities Meeting Date: June 19, 2023 Report #: 2306-1672 TITLE Colleagues Memo: Approval of a “Friendship City” Program BACKGROUND AND DISCUSSION: Palo Alto has long benefited from its Sister City and Sibling City relationships through sustainability, economic development, innovation practices, student exchanges, academia, and cultural relationships. International engagement with Palo Alto is frequent at multiple levels including government, business, community, and education. When a local government has sought to formalize an interchange, the approach has been through a formal Sister City agreement, and more recently a domestic Sibling City agreement. City Staff and Council Members periodically receive invitations to develop relationships from cities. However, these relationships have not been pursued because Council action, staff and Neighbors Abroad support and resources would be required. In addition to sister-city relationships, some U.S. cities have developed a “Friendship City” program including Menlo Park, Redwood City, Cupertino, San Antonio TX, and Portsmouth NH. This is a more modest engagement between cities that does not require significant commitments by the city or local non-profit. This model is recognized also by Sister Cities International, the governing body of Palo Alto’s Sister Cities: The terms “sister city” and “friendship city” sometimes have different meanings. Generally speaking, friendship cities are less formal than sister cities. In some cities, “friendship city” is often used as a first stage in the relationship, and after it is strengthened, and the partners are sure they want a long-term relationship they will become “sister cities.” Palo Alto’s international engagement is supported by Neighbors Abroad, Inc. Neighbors Abroad is a 501(c)(3) organization that, with annual funding from the City of Palo Alto together with donations from the community, supports international engagement. Their Board has endorsed the development of Friendship City agreements within the following parameters: Item AA1 Item AA1 Colleagues Memo Item AA1: Staff Report Pg. 1 Packet Pg. 908 of 911 “To develop a revenue neutral relationship for a fixed term called a Friendship City, led by a community member who will take responsibility for the relationship and become a board member of Neighbors Abroad.” After discussions with Neighbors Abroad, as well as reviewing Friendship City programs nationally, the following framework is proposed for a Friendship City agreement with Palo Alto: - A local volunteer that would commit across the term of the Friendship City; - A statement document that sets a description of the prospective Friendship City, expected activities with the Friendship City, and a rationale for formation which comports with Neighbors Abroad’s policy for Friendship Cities; - Endorsement by the President of Neighbors Abroad; - Acceptance by the City Council member serving as liaison to Neighbors Abroad; and - Endorsement by the Mayor and Vice-Mayor, and Council approval of the Agreement after placement on the Consent Calendar. Different from a Sister City relationship, a Friendship City Agreement would be limited to three years, subject to Council renewal. The Agreement allows for a test of time, and if the relationship waivers, the agreement would not be renewed. A draft agreement is attached. RECOMMENDATION The City Council is requested to extend the authority to enter into Friendship City relationships subject to the conditions in this Colleagues’ Memo. Upon execution of any Friendship City Agreement, the Agreement shall be provided to Neighbors Abroad to support implementation. FISCAL/RESOURCE IMPACT The fiscal and resource impact for this proposal can vary widely, and as such staff believes it should not be considered insignificant nor fully defined at this time. Anticipated activities or resources likely needed include the following: - Staff resources to coordinate requests for new Friendship Cities. Staff resources to coordinate details for formal agreement signings and celebrations. - Staff coordination and participation by applicable staff (City Manager’s Office, City Clerk’s Office, and various departments with topic expertise) in relationship building, as well as development and production of discussion topics before, during, and after delegation visits. - Communications efforts to coordinate with Friendship Cities and Neighbors Abroad representatives to publicize events and other milestones. - Staff resources to coordinate Councilmember-related efforts for the Friendship City, including developing any formal letters, commendations, or gifts needed related to the Friendship City and associated logistics. - Providing financial and staff support for City financial resources provided to Neighbors Abroad for reception hosting for visiting delegations. Item AA1 Item AA1 Colleagues Memo Item AA1: Staff Report Pg. 2 Packet Pg. 909 of 911 The actual amount of time needed for the items above varies. Without dedicated staffing and budget allocation for international relations work, these items are spread among existing staff. Depending on the amount of time needed for these activities, existing staff must redirect time away from other council priorities and assignments to accomplish these tasks. This includes the staff and City Council time that may be needed to develop this program. As noted above, Friendship City relationships are a first stage in connecting two cities together. For the City of Palo Alto, most of the existing eight (8) Sister City and one (1) Sibling City relationships started off as something informal either between Palo Alto neighbors and colleagues in an international city, or as an early agreement to test a relationship before formalizing. Without clarity as to what Friendship Cities should expect from Palo Alto over time, and the anticipated guidance for expansion of Palo Alto’s program, the City should logically expect situations where the Friendship Cities seek to become more formally connected to Palo Alto as additional Sister Cities with the associated resource expectations. Should the Council wish to proceed with growth in international relations activities reflected in the establishment of this new program, staff recommends that the parameters guiding the City’s involvement be set forth in writing through the Council’s Procedures and Protocols Handbook. It would also be prudent to establish appropriate monitoring of international relations activities through a budget line item for this purpose. It should further be noted that the City of Palo Alto receives many inquiries and requests to establish relationships with cities around the world. As such, while Palo Alto may intend only a modest time and other resource allocation to these relationships, these communities often place a high priority to the relationship, and this is reflected in the level of effort, attention, and expense invested into the relationship. This dynamic creates situations where reciprocation is expected and difficult to avoid. ATTACHMENTS Attachment A: Draft Agreement for the Establishment of a Friendship City Item AA1 Item AA1 Colleagues Memo Item AA1: Staff Report Pg. 3 Packet Pg. 910 of 911 ATTACHMENT AN AGREEMENT FOR THE ESTABLISHMENT OF A FRIENDSHIP CITY RELATIONSHIP BETWEEN [CITY NAME (COUNTRY)] AND PALO ALTO, CALIFORNIA (USA) In accordance with authorization from the City Council of Palo Alto and the approval of the Mayor of Palo Alto, California, and the [City Country], it is declared that a “Friendship City Agreement” between the two cities is established for the following purposes: (1) To promote and expand the mutually beneficial cooperation between the people of Palo Alto and [City] (2) To promote (more specific elements) This Friendship City Agreement is effective when this document has been approved by the Palo Alto City Council and duly executed by the Mayor of Palo Alto, and executed by the Mayor of [xxx], and shall remain in effect for three years from the effective date. The Agreement may be extended upon mutual agreement of the cities, approved in the same manner as the initial Agreement. ______________ [name] Mayor, City of Palo Alto California, USA _______________ [name} Mayor, [City] State, Country Dated. ## Item AA1 Attachment A - Draft Agreement for the Establishment of a Friendship City Item AA1: Staff Report Pg. 4 Packet Pg. 911 of 911