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2023-10-16 City Council Agenda Packet
CITY COUNCIL Regular Meeting Monday, October 16, 2023 Council Chambers & Hybrid 5:30 PM Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by teleconference or in person. To maximize public safety while still maintaining transparency and public access, members of the public can choose to participate from home or attend in person. Information on how the public may observe and participate in the meeting is located at the end of the agenda. Masks are strongly encouraged if attending in person. The meeting will be broadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto, and streamed to Midpen Media Center https://midpenmedia.org. VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833 PUBLIC COMMENTS Public comments will be accepted both in person and via Zoom for up to three minutes or an amount of time determined by the Chair. All requests to speak will be taken until 5 minutes after the staff’s presentation. Written public comments can be submitted in advance to city.council@CityofPaloAlto.org and will be provided to the Council and available for inspection on the City’s website. Please clearly indicate which agenda item you are referencing in your subject line. PowerPoints, videos, or other media to be presented during public comment are accepted only by email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received, the Clerk will have them shared at public comment for the specified item. To uphold strong cybersecurity management practices, USB’s or other physical electronic storage devices are not accepted. TIME ESTIMATES Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. CALL TO ORDER This meeting will be called to order in honor of National Book Month. SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:45 PM) 1.The Great California Shakeout 2.26th Annual United Nations Association Film Festival (UNAFF) Proclamation AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (5:45 ‐ 6:00 PM) Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 ‐ 6:05 PM) Members of the public may not speak to the item(s). STUDY SESSION (6:05 ‐ 7:05 PM) 3.Bi‐Annual Discussion with the Independent Police Auditor CONSENT CALENDAR (7:05 ‐ 7:10 PM) Items will be voted in one motion unless removed from the calendar by three Council Members. 4.Approval of Minutes from September 18, 2023 and October 2, 2023 Meetings 5.Approve Additional Funding for the Human Services Resource Allocation Process for Ada’s Cafe and Approve a Budget Amendment in the General Fund. CEQA Status – Not A Project. 6.Approval of Contract Number C24187903 Contract C24187903 With Daleo, Inc. in the Amount of $7,826,860 for the Gas Main Replacement Project 24B (GS‐14003) on University Avenue and surrounding streets in the University Park and Crescent Park neighborhoods, at a business district complex adjacent to Geng Road, and at Town & Country Village Plaza at Embarcadero Road and El Camino Real including water main and service replacements at this location; Authorization for the City Manager to Negotiate and Execute Related Change Orders Not‐to‐Exceed of $782,686, for a Total Not‐to‐ Exceed Amount of $8,609,546; and Approval of Budget Amendments in the Gas and Water Funds. CEQA status – Exempt per CEQA Guidelines 15302(c) (Replacement or Reconstruction of Existing Facilities). 7.Adoption of a Resolution to Vacate a Public Utility Easement at 160, 162, and 164 Waverley Street. CEQA Status – Exempt under CEQA Guidelines Section 15305. 8.Update on the Memorandum of Understanding and Funding Agreement with Peninsula Corridor Joint Powers Board (JPB/Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank of San Francisquito Creek and Approval of a Fiscal Year 2024 Budget Amendment in the Capital Improvement Fund; CEQA exempt per Reg. 15269. 9.Approval of Construction Contract with Golden Bay Construction, Inc. in the Amount of $1,247,069 and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $311,767 for the Capacity Upgrades along East Meadow Drive (SD‐22000) and Connection to Adobe Creek Pump Station from East Meadow Circle (SD‐26000), Storm Drainage System Replacement and Rehabilitation (SD‐ 06101), and Sidewalk Repairs (PO‐89003); CEQA status – exempt under CEQA Guidelines Section 15301(c). 10.Approval of Financing Plan for a Local Salt Removal Facility at the Regional Water Quality Control Plant and Direct Staff to Secure Financing and Solicit Bids for a Construction Contract and Construction Management Services Contract as Recommended by Finance Committee. CEQA status ‐ Project analyzed in 2019 Addendum to the 2015 Environmental Impact Report for the Palo Alto Recycled Water Project (SCH 2011062037), approved November 18, 2019. 11.Authorization of the City Manager or their designee to execute a change order to Contract C20177344 with Bear Electrical Services for On‐Call Traffic Signal and Electrical Services to Extend the Term through March 1, 2024 with No Change to the Not To Exceed Amount of $375,000; CEQA status – categorically exempt. 12.340 Portage Avenue and 3201‐3225 Ash Street [23PLN‐00226]: Denial of Resident’s Request for Historic Designation of the Cannery Building located at 200‐404 Portage Avenue as well as the Office Building at 3201‐3225 Ash Street as Category I or II Resources on the City’s Local Historic Inventory. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act (CEQA) In Accordance with CEQA Guidelines Section 15061(b)(3). CITY MANAGER COMMENTS (7:10 ‐ 7:25 PM) BREAK (5‐10 MINUTES) ACTION ITEMS (Item 13: 7:35 ‐ 9:05 PM, Item 14: 9:05 ‐ 10:35 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 13.Direction to Staff to Develop a Proposal to Lease the Cubberley site from the Palo Alto Unified School District for 55 years or Provide Alternative Direction to Transfer Ownership or Control to the City; CEQA status – not a project. 14.City Council Discussion and Potential Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA) Agreement for Cities Association of Santa Clara County; CEQA: Not a Project ADJOURNMENT OTHER INFORMATION Standing Committee Meetings this week Rail Committee October 17, 2023 – CANCELED Finance Committee October 17, 2023 City School Liaison Committee October 19, 2023 Public Comment Letters Schedule of Meetings PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 1 Regular Meeting October 16, 2023 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, October 16, 2023Council Chambers & Hybrid5:30 PMPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic 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 endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto,and streamed to Midpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATES Listed times are estimates only and are subject to change at any time, including while the meeting is in progress. The Council reserves the right to use more or less time on any item, to change the order of items and/or to continue items to another meeting. Particular items may be heard before or after the time estimated on the agenda. This may occur in order to best manage the time at a meeting or to adapt to the participation of the public. CALL TO ORDER This meeting will be called to order in honor of National Book Month. SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:45 PM) 1.The Great California Shakeout 2.26th Annual United Nations Association Film Festival (UNAFF) Proclamation AGENDA CHANGES, ADDITIONS AND DELETIONS PUBLIC COMMENT (5:45 ‐ 6:00 PM) Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral Communications period to 30 minutes. COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 ‐ 6:05 PM) Members of the public may not speak to the item(s). STUDY SESSION (6:05 ‐ 7:05 PM) 3.Bi‐Annual Discussion with the Independent Police Auditor CONSENT CALENDAR (7:05 ‐ 7:10 PM) Items will be voted in one motion unless removed from the calendar by three Council Members. 4.Approval of Minutes from September 18, 2023 and October 2, 2023 Meetings 5.Approve Additional Funding for the Human Services Resource Allocation Process for Ada’s Cafe and Approve a Budget Amendment in the General Fund. CEQA Status – Not A Project. 6.Approval of Contract Number C24187903 Contract C24187903 With Daleo, Inc. in the Amount of $7,826,860 for the Gas Main Replacement Project 24B (GS‐14003) on University Avenue and surrounding streets in the University Park and Crescent Park neighborhoods, at a business district complex adjacent to Geng Road, and at Town & Country Village Plaza at Embarcadero Road and El Camino Real including water main and service replacements at this location; Authorization for the City Manager to Negotiate and Execute Related Change Orders Not‐to‐Exceed of $782,686, for a Total Not‐to‐ Exceed Amount of $8,609,546; and Approval of Budget Amendments in the Gas and Water Funds. CEQA status – Exempt per CEQA Guidelines 15302(c) (Replacement or Reconstruction of Existing Facilities). 7.Adoption of a Resolution to Vacate a Public Utility Easement at 160, 162, and 164 Waverley Street. CEQA Status – Exempt under CEQA Guidelines Section 15305. 8.Update on the Memorandum of Understanding and Funding Agreement with Peninsula Corridor Joint Powers Board (JPB/Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank of San Francisquito Creek and Approval of a Fiscal Year 2024 Budget Amendment in the Capital Improvement Fund; CEQA exempt per Reg. 15269. 9.Approval of Construction Contract with Golden Bay Construction, Inc. in the Amount of $1,247,069 and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $311,767 for the Capacity Upgrades along East Meadow Drive (SD‐22000) and Connection to Adobe Creek Pump Station from East Meadow Circle (SD‐26000), Storm Drainage System Replacement and Rehabilitation (SD‐ 06101), and Sidewalk Repairs (PO‐89003); CEQA status – exempt under CEQA Guidelines Section 15301(c). 10.Approval of Financing Plan for a Local Salt Removal Facility at the Regional Water Quality Control Plant and Direct Staff to Secure Financing and Solicit Bids for a Construction Contract and Construction Management Services Contract as Recommended by Finance Committee. CEQA status ‐ Project analyzed in 2019 Addendum to the 2015 Environmental Impact Report for the Palo Alto Recycled Water Project (SCH 2011062037), approved November 18, 2019. 11.Authorization of the City Manager or their designee to execute a change order to Contract C20177344 with Bear Electrical Services for On‐Call Traffic Signal and Electrical Services to Extend the Term through March 1, 2024 with No Change to the Not To Exceed Amount of $375,000; CEQA status – categorically exempt. 12.340 Portage Avenue and 3201‐3225 Ash Street [23PLN‐00226]: Denial of Resident’s Request for Historic Designation of the Cannery Building located at 200‐404 Portage Avenue as well as the Office Building at 3201‐3225 Ash Street as Category I or II Resources on the City’s Local Historic Inventory. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act (CEQA) In Accordance with CEQA Guidelines Section 15061(b)(3). CITY MANAGER COMMENTS (7:10 ‐ 7:25 PM) BREAK (5‐10 MINUTES) ACTION ITEMS (Item 13: 7:35 ‐ 9:05 PM, Item 14: 9:05 ‐ 10:35 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 13.Direction to Staff to Develop a Proposal to Lease the Cubberley site from the Palo Alto Unified School District for 55 years or Provide Alternative Direction to Transfer Ownership or Control to the City; CEQA status – not a project. 14.City Council Discussion and Potential Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA) Agreement for Cities Association of Santa Clara County; CEQA: Not a Project ADJOURNMENT OTHER INFORMATION Standing Committee Meetings this week Rail Committee October 17, 2023 – CANCELED Finance Committee October 17, 2023 City School Liaison Committee October 19, 2023 Public Comment Letters Schedule of Meetings PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 2 Regular Meeting October 16, 2023 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, October 16, 2023Council Chambers & Hybrid5:30 PMPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic 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 endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto,and streamed to Midpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERThis meeting will be called to order in honor of National Book Month.SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:45 PM)1.The Great California Shakeout2.26th Annual United Nations Association Film Festival (UNAFF) ProclamationAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (5:45 ‐ 6:00 PM)Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of OralCommunications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 ‐ 6:05 PM)Members of the public may not speak to the item(s).STUDY SESSION (6:05 ‐ 7:05 PM)3.Bi‐Annual Discussion with the Independent Police AuditorCONSENT CALENDAR (7:05 ‐ 7:10 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.4.Approval of Minutes from September 18, 2023 and October 2, 2023 Meetings5.Approve Additional Funding for the Human Services Resource Allocation Process forAda’s Cafe and Approve a Budget Amendment in the General Fund. CEQA Status – Not AProject.6.Approval of Contract Number C24187903 Contract C24187903 With Daleo, Inc. in theAmount of $7,826,860 for the Gas Main Replacement Project 24B (GS‐14003) onUniversity Avenue and surrounding streets in the University Park and Crescent Park neighborhoods, at a business district complex adjacent to Geng Road, and at Town & Country Village Plaza at Embarcadero Road and El Camino Real including water main and service replacements at this location; Authorization for the City Manager to Negotiate and Execute Related Change Orders Not‐to‐Exceed of $782,686, for a Total Not‐to‐ Exceed Amount of $8,609,546; and Approval of Budget Amendments in the Gas and Water Funds. CEQA status – Exempt per CEQA Guidelines 15302(c) (Replacement or Reconstruction of Existing Facilities). 7.Adoption of a Resolution to Vacate a Public Utility Easement at 160, 162, and 164 Waverley Street. CEQA Status – Exempt under CEQA Guidelines Section 15305. 8.Update on the Memorandum of Understanding and Funding Agreement with Peninsula Corridor Joint Powers Board (JPB/Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank of San Francisquito Creek and Approval of a Fiscal Year 2024 Budget Amendment in the Capital Improvement Fund; CEQA exempt per Reg. 15269. 9.Approval of Construction Contract with Golden Bay Construction, Inc. in the Amount of $1,247,069 and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not‐to‐Exceed Amount of $311,767 for the Capacity Upgrades along East Meadow Drive (SD‐22000) and Connection to Adobe Creek Pump Station from East Meadow Circle (SD‐26000), Storm Drainage System Replacement and Rehabilitation (SD‐ 06101), and Sidewalk Repairs (PO‐89003); CEQA status – exempt under CEQA Guidelines Section 15301(c). 10.Approval of Financing Plan for a Local Salt Removal Facility at the Regional Water Quality Control Plant and Direct Staff to Secure Financing and Solicit Bids for a Construction Contract and Construction Management Services Contract as Recommended by Finance Committee. CEQA status ‐ Project analyzed in 2019 Addendum to the 2015 Environmental Impact Report for the Palo Alto Recycled Water Project (SCH 2011062037), approved November 18, 2019. 11.Authorization of the City Manager or their designee to execute a change order to Contract C20177344 with Bear Electrical Services for On‐Call Traffic Signal and Electrical Services to Extend the Term through March 1, 2024 with No Change to the Not To Exceed Amount of $375,000; CEQA status – categorically exempt. 12.340 Portage Avenue and 3201‐3225 Ash Street [23PLN‐00226]: Denial of Resident’s Request for Historic Designation of the Cannery Building located at 200‐404 Portage Avenue as well as the Office Building at 3201‐3225 Ash Street as Category I or II Resources on the City’s Local Historic Inventory. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act (CEQA) In Accordance with CEQA Guidelines Section 15061(b)(3). CITY MANAGER COMMENTS (7:10 ‐ 7:25 PM) BREAK (5‐10 MINUTES) ACTION ITEMS (Item 13: 7:35 ‐ 9:05 PM, Item 14: 9:05 ‐ 10:35 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 13.Direction to Staff to Develop a Proposal to Lease the Cubberley site from the Palo Alto Unified School District for 55 years or Provide Alternative Direction to Transfer Ownership or Control to the City; CEQA status – not a project. 14.City Council Discussion and Potential Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA) Agreement for Cities Association of Santa Clara County; CEQA: Not a Project ADJOURNMENT OTHER INFORMATION Standing Committee Meetings this week Rail Committee October 17, 2023 – CANCELED Finance Committee October 17, 2023 City School Liaison Committee October 19, 2023 Public Comment Letters Schedule of Meetings PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 3 Regular Meeting October 16, 2023 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, October 16, 2023Council Chambers & Hybrid5:30 PMPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic 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 endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto,and streamed to Midpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERThis meeting will be called to order in honor of National Book Month.SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:45 PM)1.The Great California Shakeout2.26th Annual United Nations Association Film Festival (UNAFF) ProclamationAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (5:45 ‐ 6:00 PM)Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of OralCommunications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 ‐ 6:05 PM)Members of the public may not speak to the item(s).STUDY SESSION (6:05 ‐ 7:05 PM)3.Bi‐Annual Discussion with the Independent Police AuditorCONSENT CALENDAR (7:05 ‐ 7:10 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.4.Approval of Minutes from September 18, 2023 and October 2, 2023 Meetings5.Approve Additional Funding for the Human Services Resource Allocation Process forAda’s Cafe and Approve a Budget Amendment in the General Fund. CEQA Status – Not AProject.6.Approval of Contract Number C24187903 Contract C24187903 With Daleo, Inc. in theAmount of $7,826,860 for the Gas Main Replacement Project 24B (GS‐14003) onUniversity Avenue and surrounding streets in the University Park and Crescent Parkneighborhoods, at a business district complex adjacent to Geng Road, and at Town &Country Village Plaza at Embarcadero Road and El Camino Real including water main andservice replacements at this location; Authorization for the City Manager to Negotiateand Execute Related Change Orders Not‐to‐Exceed of $782,686, for a Total Not‐to‐Exceed Amount of $8,609,546; and Approval of Budget Amendments in the Gas andWater Funds. CEQA status – Exempt per CEQA Guidelines 15302(c) (Replacement orReconstruction of Existing Facilities).7.Adoption of a Resolution to Vacate a Public Utility Easement at 160, 162, and 164Waverley Street. CEQA Status – Exempt under CEQA Guidelines Section 15305.8.Update on the Memorandum of Understanding and Funding Agreement with PeninsulaCorridor Joint Powers Board (JPB/Caltrain) and the City of Menlo Park RegardingEmergency Repairs to the North Bank of San Francisquito Creek and Approval of a FiscalYear 2024 Budget Amendment in the Capital Improvement Fund; CEQA exempt per Reg.15269. 9.Approval of Construction Contract with Golden Bay Construction, Inc. in the Amount of$1,247,069 and Authorization for the City Manager to Negotiate and Execute ChangeOrders up to a Not‐to‐Exceed Amount of $311,767 for the Capacity Upgrades along EastMeadow Drive (SD‐22000) and Connection to Adobe Creek Pump Station from EastMeadow Circle (SD‐26000), Storm Drainage System Replacement and Rehabilitation (SD‐06101), and Sidewalk Repairs (PO‐89003); CEQA status – exempt under CEQA GuidelinesSection 15301(c).10.Approval of Financing Plan for a Local Salt Removal Facility at the Regional WaterQuality Control Plant and Direct Staff to Secure Financing and Solicit Bids for aConstruction Contract and Construction Management Services Contract asRecommended by Finance Committee. CEQA status ‐ Project analyzed in 2019Addendum to the 2015 Environmental Impact Report for the Palo Alto Recycled WaterProject (SCH 2011062037), approved November 18, 2019.11.Authorization of the City Manager or their designee to execute a change order toContract C20177344 with Bear Electrical Services for On‐Call Traffic Signal andElectrical Services to Extend the Term through March 1, 2024 with No Change to the NotTo Exceed Amount of $375,000; CEQA status – categorically exempt.12.340 Portage Avenue and 3201‐3225 Ash Street [23PLN‐00226]: Denial of Resident’sRequest for Historic Designation of the Cannery Building located at 200‐404 PortageAvenue as well as the Office Building at 3201‐3225 Ash Street as Category I or IIResources on the City’s Local Historic Inventory. Environmental Assessment: Exemptfrom the Provisions of the California Environmental Quality Act (CEQA) In Accordancewith CEQA Guidelines Section 15061(b)(3). CITY MANAGER COMMENTS (7:10 ‐ 7:25 PM) BREAK (5‐10 MINUTES) ACTION ITEMS (Item 13: 7:35 ‐ 9:05 PM, Item 14: 9:05 ‐ 10:35 PM) Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished Business and Council Matters. 13.Direction to Staff to Develop a Proposal to Lease the Cubberley site from the Palo Alto Unified School District for 55 years or Provide Alternative Direction to Transfer Ownership or Control to the City; CEQA status – not a project. 14.City Council Discussion and Potential Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA) Agreement for Cities Association of Santa Clara County; CEQA: Not a Project ADJOURNMENT OTHER INFORMATION Standing Committee Meetings this week Rail Committee October 17, 2023 – CANCELED Finance Committee October 17, 2023 City School Liaison Committee October 19, 2023 Public Comment Letters Schedule of Meetings PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 4 Regular Meeting October 16, 2023 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. CITY COUNCILRegular MeetingMonday, October 16, 2023Council Chambers & Hybrid5:30 PMPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference or in person. To maximize public safety while still maintaining transparency andpublic 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 endof the agenda. Masks are strongly encouraged if attending in person. The meeting will bebroadcast on Cable TV Channel 26, live on YouTube https://www.youtube.com/c/cityofpaloalto,and streamed to Midpen Media Center https://midpenmedia.org.VIRTUAL PARTICIPATION CLICK HERE TO JOIN (https://cityofpaloalto.zoom.us/j/362027238) Meeting ID: 362 027 238 Phone:1(669)900‐6833PUBLIC COMMENTSPublic comments will be accepted both in person and via Zoom for up to three minutes or anamount of time determined by the Chair. All requests to speak will be taken until 5 minutesafter the staff’s presentation. Written public comments can be submitted in advance tocity.council@CityofPaloAlto.org and will be provided to the Council and available for inspectionon the City’s website. Please clearly indicate which agenda item you are referencing in yoursubject line.PowerPoints, videos, or other media to be presented during public comment are accepted onlyby email to city.clerk@CityofPaloAlto.org at least 24 hours prior to the meeting. Once received,the Clerk will have them shared at public comment for the specified item. To uphold strongcybersecurity management practices, USB’s or other physical electronic storage devices are notaccepted.TIME ESTIMATESListed times are estimates only and are subject to change at any time, including while themeeting is in progress. The Council reserves the right to use more or less time on any item, tochange the order of items and/or to continue items to another meeting. Particular items may beheard before or after the time estimated on the agenda. This may occur in order to best managethe time at a meeting or to adapt to the participation of the public.CALL TO ORDERThis meeting will be called to order in honor of National Book Month.SPECIAL ORDERS OF THE DAY (5:30 ‐ 5:45 PM)1.The Great California Shakeout2.26th Annual United Nations Association Film Festival (UNAFF) ProclamationAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (5:45 ‐ 6:00 PM)Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of OralCommunications period to 30 minutes.COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (6:00 ‐ 6:05 PM)Members of the public may not speak to the item(s).STUDY SESSION (6:05 ‐ 7:05 PM)3.Bi‐Annual Discussion with the Independent Police AuditorCONSENT CALENDAR (7:05 ‐ 7:10 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.4.Approval of Minutes from September 18, 2023 and October 2, 2023 Meetings5.Approve Additional Funding for the Human Services Resource Allocation Process forAda’s Cafe and Approve a Budget Amendment in the General Fund. CEQA Status – Not AProject.6.Approval of Contract Number C24187903 Contract C24187903 With Daleo, Inc. in theAmount of $7,826,860 for the Gas Main Replacement Project 24B (GS‐14003) onUniversity Avenue and surrounding streets in the University Park and Crescent Parkneighborhoods, at a business district complex adjacent to Geng Road, and at Town &Country Village Plaza at Embarcadero Road and El Camino Real including water main andservice replacements at this location; Authorization for the City Manager to Negotiateand Execute Related Change Orders Not‐to‐Exceed of $782,686, for a Total Not‐to‐Exceed Amount of $8,609,546; and Approval of Budget Amendments in the Gas andWater Funds. CEQA status – Exempt per CEQA Guidelines 15302(c) (Replacement orReconstruction of Existing Facilities).7.Adoption of a Resolution to Vacate a Public Utility Easement at 160, 162, and 164Waverley Street. CEQA Status – Exempt under CEQA Guidelines Section 15305.8.Update on the Memorandum of Understanding and Funding Agreement with PeninsulaCorridor Joint Powers Board (JPB/Caltrain) and the City of Menlo Park RegardingEmergency Repairs to the North Bank of San Francisquito Creek and Approval of a FiscalYear 2024 Budget Amendment in the Capital Improvement Fund; CEQA exempt per Reg.15269. 9.Approval of Construction Contract with Golden Bay Construction, Inc. in the Amount of$1,247,069 and Authorization for the City Manager to Negotiate and Execute ChangeOrders up to a Not‐to‐Exceed Amount of $311,767 for the Capacity Upgrades along EastMeadow Drive (SD‐22000) and Connection to Adobe Creek Pump Station from EastMeadow Circle (SD‐26000), Storm Drainage System Replacement and Rehabilitation (SD‐06101), and Sidewalk Repairs (PO‐89003); CEQA status – exempt under CEQA GuidelinesSection 15301(c).10.Approval of Financing Plan for a Local Salt Removal Facility at the Regional WaterQuality Control Plant and Direct Staff to Secure Financing and Solicit Bids for aConstruction Contract and Construction Management Services Contract asRecommended by Finance Committee. CEQA status ‐ Project analyzed in 2019Addendum to the 2015 Environmental Impact Report for the Palo Alto Recycled WaterProject (SCH 2011062037), approved November 18, 2019.11.Authorization of the City Manager or their designee to execute a change order toContract C20177344 with Bear Electrical Services for On‐Call Traffic Signal andElectrical Services to Extend the Term through March 1, 2024 with No Change to the NotTo Exceed Amount of $375,000; CEQA status – categorically exempt.12.340 Portage Avenue and 3201‐3225 Ash Street [23PLN‐00226]: Denial of Resident’sRequest for Historic Designation of the Cannery Building located at 200‐404 PortageAvenue as well as the Office Building at 3201‐3225 Ash Street as Category I or IIResources on the City’s Local Historic Inventory. Environmental Assessment: Exemptfrom the Provisions of the California Environmental Quality Act (CEQA) In Accordancewith CEQA Guidelines Section 15061(b)(3).CITY MANAGER COMMENTS (7:10 ‐ 7:25 PM)BREAK (5‐10 MINUTES)ACTION ITEMS (Item 13: 7:35 ‐ 9:05 PM, Item 14: 9:05 ‐ 10:35 PM)Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, UnfinishedBusiness and Council Matters.13.Direction to Staff to Develop a Proposal to Lease the Cubberley site from the Palo AltoUnified School District for 55 years or Provide Alternative Direction to TransferOwnership or Control to the City; CEQA status – not a project.14.City Council Discussion and Potential Direction on Feedback Regarding the ProposedJoint Powers Agency (JPA) Agreement for Cities Association of Santa Clara County;CEQA: Not a ProjectADJOURNMENTOTHER INFORMATIONStanding Committee Meetings this week Rail Committee October 17, 2023 – CANCELED Finance Committee October 17, 2023 City School Liaison Committee October 19, 2023Public Comment Letters Schedule of Meetings PUBLIC COMMENT INSTRUCTIONS Members of the Public may provide public comments to teleconference meetings via email, teleconference, or by phone. 1. Written public comments may be submitted by email to city.council@cityofpaloalto.org. 2. For in person public comments please complete a speaker request card located on the table at the entrance to the Council Chambers and deliver it to the Clerk prior to discussion of the item. 3. Spoken public comments using a computer or smart phone will be accepted through the teleconference meeting. To address the Council, click on the link below to access a Zoom‐based meeting. Please read the following instructions carefully. You may download the Zoom client or connect to the meeting in‐ browser. If using your browser, make sure you are using a current, up‐to‐date browser: Chrome 30 , Firefox 27 , Microsoft Edge 12 , Safari 7 . Certain functionality may be disabled in older browsers including Internet Explorer. Or download the Zoom application onto your smart phone from the Apple App Store or Google Play Store and enter in the Meeting ID below. You may be asked to enter an email address and name. We request that you identify yourself by name as this will be visible online and will be used to notify you that it is your turn to speak. When you wish to speak on an Agenda Item, click on “raise hand.” The Clerk will activate and unmute speakers in turn. Speakers will be notified shortly before they are called to speak. When called, please limit your remarks to the time limit allotted. A timer will be shown on the computer to help keep track of your comments. 4. Spoken public comments using a phone use the telephone number listed below. When you wish to speak on an agenda item hit *9 on your phone so we know that you wish to speak. You will be asked to provide your first and last name before addressing the Council. You will be advised how long you have to speak. When called please limit your remarks to the agenda item and time limit allotted. CLICK HERE TO JOIN Meeting ID: 362‐027‐238 Phone: 1‐669‐900‐6833 Americans with Disability Act (ADA) It is the policy of the City of Palo Alto to offer its public programs, services and meetings in a manner that is readily accessible to all. Persons with disabilities who require materials in an appropriate alternative format or who require auxiliary aids to access City meetings, programs, or services may contact the City’s ADA Coordinator at (650) 329‐2550 (voice) or by emailing ada@cityofpaloalto.org. Requests for assistance or accommodations must be submitted at least 24 hours in advance of the meeting, program, or service. 5 Regular Meeting October 16, 2023 Materials submitted after distribution of the agenda packet are available for public inspection at www.CityofPaloAlto.org/agendas. 3 3 0 2 City Council Staff Report Report Type: SPECIAL ORDERS OF THE DAY Lead Department: City Clerk Meeting Date: October 16, 2023 Report #:2310-2117 TITLE 26th Annual United Nations Association Film Festival (UNAFF) Proclamation ATTACHMENTS Attachment A: UNAFF Proclamation APPROVED BY: Mahealani Ah Yun Item 2 Item 2 Staff Report Item 2: Staff Report Pg. 1 Packet Pg. 6 of 228 Proclamation 26th Annual United Nations Association Film Festival (UNAFF) WHEREAS, October 19, 2023 marks the 26th Anniversary of the United Nations Association Film Festival (UNAFF), which was originally created to celebrate the 50th Anniversary of the signing of the Universal Declaration of Human Rights; and WHEREAS, UNAFF was founded by Stanford educator and film critic Jasmina Bojic; and WHEREAS, UNAFF gives six awards: Grand Jury Award for Best Documentary, Grand Jury Award for Best Short Documentary, Award for Best Cinematography, Award for Best Editing, Youth Vision Award, and the Visionary Award; and WHEREAS, UNAFF has previously screened some of the most honored and talked about documentaries including eight that went on to win Academy Awards and thirty that were nominated; and WHEREAS, UNAFF celebrates the power of films dealing with human rights, environment, women’s issues, homelessness, racism, disease control, universal education, war and peace with the theme this year of, “SOLUTIONS”; and WHEREAS, the UNAFF jury selected 60 films for this year’s festival dealing with topics from countries around the world; and WHEREAS, UNAFF will be held in-person from October 19 to October 29, 2023; and WHEREAS, UNAFF hosts academics and international filmmakers to discuss the topics in the films with members of the audience, who are often separated by geography, ethnicity and economic status. NOW, THEREFORE, I, Lydia Kou, Mayor of the City of Palo Alto, on behalf of the City Council do hereby proclaim October 19-29, 2023 as United Nations Association Film Festival Days and encourage the citizens of our community to attend UNAFF screenings and panels during the eleven-day festival. Presented: October 16, 2023 ______________________________ Lydia Kou Mayor Item 2 Attachment A - UNAFF Proclamation Item 2: Staff Report Pg. 2 Packet Pg. 7 of 228 City Council Staff Report From: City Manager Report Type: STUDY SESSION Lead Department: City Manager Meeting Date: October 16, 2023 Report #:2308-1894 TITLE Bi-Annual Discussion with the Independent Police Auditor RECOMMENDATION This Study Session is a bi-annual opportunity for Council discussion with the Independent Police Auditor. There is no recommended action. BACKGROUND AND ANALYSIS This is the study session with the City’s Independent Police Auditor (IPA) from the representatives of the OIR Group, the City’s contracted consultant for the Independent Police Auditor function. It is the second of two discussions in this calendar year. The previous discussion took place with the City Council on June 12, 2023.1 Purpose: In the amended contract with the OIR group, it states the following related to the IPA meetings with the City Council: Beginning in the second half of 2021, CONSULTANT shall meet with the City Council two times per year to discuss trends in criminal justice and policing, policy and training matters, recommendations made by CONSULTANT, and other Council concerns. CONSULTANT’S conferences with Council are not for the purpose of elaborating on published reviews of specific incidents and shall not include discussion of personnel matters prohibited by law. Semi-annual conferences shall be scheduled after publication of the CONSULTANT’S report, according to availability of Council and the CONSULTANT. Consistent with the description above, Council discussion with the IPA is not focused on the most recent report from OIR. However, for ease in reference, the most recent report was issued as an Informational Report on the September 18, 2023 City Council packet2. 1 June 12, 2023 City Council meeting item #3: https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=12536 2 September 18, 2023 City Council meeting item #11: https://cityofpaloalto.primegov.com/meetings/ItemWithTemplateType?id=3163&meetingTemplateType=2 Item 3 Item 3 Staff Report Item 3: Staff Report Pg. 1 Packet Pg. 8 of 228 FISCAL/RESOURCE IMPACT No additional funds are needed for this study session. STAKEHOLDER ENGAGEMENT The discussion with the City Council is an opportunity for the public to also share feedback related to issues covered by the IPA. ENVIRONMENTAL REVIEW This is not a project. APPROVED BY: Ed Shikada, City Manager Item 3 Item 3 Staff Report Item 3: Staff Report Pg. 2 Packet Pg. 9 of 228 3 2 9 5 City Council Staff Report Report Type: CONSENT CALENDAR Lead Department: City Clerk Meeting Date: October 16, 2023 Report #:2310-2113 TITLE Approval of Minutes from September 18, 2023 and October 2, 2023 Meetings RECOMMENDATION That the minutes be reviewed and approved. ATTACHMENTS Attachment A: September 18, 2023 Draft Action Minutes Attachment B: October 2, 2023 Draft Action Minutes APPROVED BY: Mahealani Ah Yun Item 4 Item 4 Staff Report Item 4: Staff Report Pg. 1 Packet Pg. 10 of 228 CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 4 Regular Meeting September 18, 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. Appointment of Candidates for the Architectural Review Board First round of voting for Architectural Review Board one (1) partial term ending 3/31/2024: Alex Lew - Burt, Kou John Kunz - Tanaka Mausam Adcock - Lauing, Stone, Veenker, Lythcott-Haims Naveen Govind - Sam Zucker - Stephen Sun - Candidate Mausam Adcock receiving 4 votes is appointed to a partial term expiring March 31, 2024. Consent Calendar 2. Approval of Minutes from September 5, 2023 Meeting 3. Approval of Amendment No. 1 to the Lease Agreement Between the City of Palo Alto and the County of Santa Clara (Contract No. 1557819) at 2000 Geng Road for Safe Parking to Extend the Term for Three Years; Prioritize Local Populations; and Clarify City’s Landscaping Duties; CEQA Status – categorically exempt. 4. Approval of Construction Contract C24187742 with OBS Engineering Inc., in the Amount Not-to-Exceed $383,400 for Cameron Park Improvements, Capital Improvement Project Item 4 Attachment A - September 18, 2023 Draft Action Minutes Item 4: Staff Report Pg. 2 Packet Pg. 11 of 228 DRAFT ACTION MINUTES Page 2 of 4 City Council Meeting Draft Action Minutes: 09/18/2023 PG-14002; Authorization of Contract Contingency in an Amount Not-to-Exceed $38,340 for Related, Additional but Unforeseen Work Which May Develop During the Project; and Approval of a Budget Amendment in the Capital Improvement Fund; CEQA status - Categorically exempt per regulation 15301 (existing facilities). 5. Approve the Appointment of Caio A. Arellano to the Position of Chief Assistant City Attorney; CEQA Status- not a project. Council Member Tanaka registered a no vote on Agenda Item Number 3. MOTION: Mayor Kou moved, seconded by Council Member Veenker to approve Agenda Item Numbers 2-5. MOTION PASSED ITEMS 2, 4-5: 7-0 MOTION PASSED ITEM 3: 6-1, Tanaka no Action Items 6. PUBLIC HEARING: Adoption of Resolution to Establish a New Priority Development Area (PDA) in South Palo Alto and Support for the Nomination of one Parcel as a Priority Site. Environmental Assessment: Not a ‘Project’ and Exempt from California Environmental Quality Act (CEQA) Review. MOTION: Vice Mayor Stone moved, seconded by Council Member Lythcott-Haims to: 1. Adopt a Resolution (Attachment A) designating a new Priority Development Area in South Palo Alto, named the Bayshore Alma San Antonio (BASA) Priority Development Area; and, 2. Support the nomination of one property as a Priority Site located at 3200 Park Blvd., as reflected in Attachment B; and, 3. Direct staff to include San Antonio Corridor neighborhood outreach upon the initiation of the Concept Plan. MOTION PASSED: 6-1, Kou no 7. LEGISLATIVE: Adopt an Ordinance Amending Planned Community 2343 zoning for 2901- 2905 Middlefield Road and Adopt an Ordinance Establishing a new Planned Community Zoning Designation to Enable the Development of a new Single-Story, Single-Family Residence on 702 Ellsworth Place. Item 4 Attachment A - September 18, 2023 Draft Action Minutes Item 4: Staff Report Pg. 3 Packet Pg. 12 of 228 DRAFT ACTION MINUTES Page 3 of 4 City Council Meeting Draft Action Minutes: 09/18/2023 MOTION: Council Member Burt moved, seconded by Mayor Kou to continue this Item to a date uncertain, with the main motion discussed tonight on the table, and with direction to staff to attempt to resolve the package delivery issue. MOTION PASSED: 5-2, Lauing, Kou no 8. Public Hearing: Adoption of a Resolution Approving Capped-Price Winter Natural Gas Purchases for Winter 2023-24 and Amending the FY 2024 Gas Fund Budget to Fund These Purchases; Amending the Gas Utility Long-term Plan Objectives, Strategies and Implementation Plan; and Amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G-10 (Compressed Natural Gas Service); CEQA status: not a project under Public Resources Code 15378(b)(5) and exempt under Public Resources Code 15273(a) MOTION: Council Member Burt moved, seconded by Council Member Lythcott-Haims to adopt a resolution (Attachment A): 1. Implementing capped-price winter natural gas purchases for winter 2023-24 with a maximum commodity rate impact of 15 cents per therm; 2. Amending the FY 2024 Budget Appropriation in the Gas Fund (requires 2/3 approval) by: a. Increasing the Gas Operating Budget for Commodity Purchases by $2,000,000; and b. Increasing the Gas Operating Retail revenue estimate by $2,000,000 3. Amending the Gas Utility Long-term Plan (GULP) Objectives, Strategies and Implementation Plan (Attachment B) to implement the capped-price winter gas purchases intended to manage potential winter 2023 gas price spikes; and 4. Amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G-10 (Compressed Natural Gas Service) (Attachment C), effective November 1, 2023. MOTION PASSED: 6-1, Tanaka no Adjournment: The meeting was adjourned at 10:57 P.M. Item 4 Attachment A - September 18, 2023 Draft Action Minutes Item 4: Staff Report Pg. 4 Packet Pg. 13 of 228 DRAFT ACTION MINUTES Page 4 of 4 City Council Meeting Draft Action Minutes: 09/18/2023 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 4 Attachment A - September 18, 2023 Draft Action Minutes Item 4: Staff Report Pg. 5 Packet Pg. 14 of 228 CITY COUNCIL DRAFT ACTION MINUTES Page 1 of 5 Regular Meeting October 2, 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, Veenker Present Remotely: Tanaka Absent: Special Orders of the Day 1. Proclamation Recognizing National Fire Prevention Week - October 8-14, 2023 NO ACTION Study Session 2. Request for Pre-Screening of Application to Amend the Development Agreement and South of Forest Area Phase 1 Coordinated Area Plan for 260 Homer Avenue that Currently Restricts the Amount of Space that One or More Commercial Office Tenants can Occupy at the Property. Zoning District: AMF (MUO). CEQA Status: Not a Project. Item Removed Off Agenda Consent Calendar 3. Approval of Minutes from September 11, 2023 and September 12, 2023 Meetings 4. Adoption of a Resolution Approving and Attesting to the Veracity of the City's 2022 Annual Power Source Disclosure and Power Content Label Reports; CEQA Status: Not a project 5. Authorization to Amend the Existing Contract for Litigation Defense Services with the Law Firm of Liebert Cassidy Whitmore (Contract S20178997) to Increase the Not- to- Exceed Amount to $110,000 and Extend the Term to December 31, 2023; CEQA – Not a Project Item 4 Attachment B - October 2, 2023 Draft Action Minutes Item 4: Staff Report Pg. 6 Packet Pg. 15 of 228 DRAFT ACTION MINUTES Page 2 of 5 City Council Meeting Draft Action Minutes: 10/02/2023 6. Approve Three Contracts for Landscape Maintenance Services: 1) a Five-year Contract with BrightView Landscape Services, Inc., in the Amount of $12,288,093; 2) a Five-year Contract with Gachina Landscape Management, Inc., in the Amount of $516,740; and 3) a Five-year Contract with Grassroots Ecology in the Amount of $529,459 for Specification for Habitat Restoration in Foothills Nature Preserve and Adobe Creek Pedestrian Bridge Native Plant Restoration; Approval of Contract Amendment No. 2 to Contract C18170810A with BrightView Landscape Services, Inc. to increase the Not to Exceed amount by $75,152 to provide weekend services for a three-month contract extension; and Approval of Budget Amendments in Multiple Funds (2/3 vote required) as Recommended by the Finance Committee; CEQA status - Categorically exempt per regulation 15301 (existing facilities) and 15304 (minor alterations). 7. Approval of a SaaS Agreement C23188925 with Accela for an Amount Not-to-Exceed $1,143,563 for Online Planning and Building Permitting and Enhanced Reporting System for a Period of Three-Years and Authorization of a 10% Contract Contingency in an Amount Not-to-Exceed $114,356; CEQA Status - Not a Project 8. SECOND READING: Adoption of Ordinances Rezoning the Properties Located at 340-404 Portage Avenue, 200-404 Portage Avenue/3040-3200 Park Boulevard, 3201-3225 Ash Street, 3250 Park Boulevard, and 278 Lambert Avenue from RM-30 to Planned Community (PC); and Adoption of an Ordinance Approving a Development Agreement with SI 45, LLC for the 14.65-Acre Property Located at 200-404 Portage Avenue, 3040- 3250 Park Boulevard, 3201-3225 Ash Street, and 278 Lambert Avenue. CEQA Status – EIR certified by Council Resolution 10123 (SCH #2021120444) 9. SECOND READING: Ordinance Creating New Chapter 12.11 (Parklets) and Amending Certain Sections of Titles 16 and 18 (FIRST READING: September 11, 2023 PASSED 7-0) 10. SECOND READING: Ordinance Approving a Development Agreement with SI 45, LLC, for the 14.65-acre Property at 200-404 Portage Avenue, 3040-3250 Park Boulevard, 3201- 3225 Ash Street, and 270 Lambert Avenue (FIRST READING: September 12, 2023 PASSED 7-0) 11. SECOND READING: Ordinance Amending Section 18.08.040 of the Palo Alto Municipal Code (The Zoning Map) to Change the Classification of Property Located at 340-404 Portage Avenue from Multiple Family Residential (RM-30) to PC Planned Community Zone (FIRST READING: September 12, 2023 PASSED 7-0) Council Member Tanaka registered a no vote on Agenda Item Number 6. MOTION: Mayor Kou moved, seconded by Council Member Lauing to approve Agenda Item Numbers 3-11. Item 4 Attachment B - October 2, 2023 Draft Action Minutes Item 4: Staff Report Pg. 7 Packet Pg. 16 of 228 DRAFT ACTION MINUTES Page 3 of 5 City Council Meeting Draft Action Minutes: 10/02/2023 MOTION SPLIT FOR THE PURPOSE OF VOTING MOTION PASSED ITEMS 3-5, 7-11: 7-0 MOTION PASSED ITEM 6: 6-1, Tanaka no Action Items 12. Receive the Human Relation Commission’s Recommendations on the Evaluation and Celebration of Additional Dates to Advance Race & Equity, Including Through City Recognition and City Paid Holidays and Provide Direction to Staff on Further Actions. CEQA status – not a project. MOTION: Vice Mayor Stone moved, seconded by Council Member Lythcott-Haims to: 1. Receive the Human Relation Commission’s recommendations responding to the Council referral on the evaluation and celebration of additional dates to Advance Race & Equity; and, 2. Direct staff to further review and refine the proposed standard framework and procedure for considering City recognition of events, individuals, and celebrations; and, 3. Direct staff to include consideration of Juneteenth as a paid holiday as part of it's next round of labor contract negotiations through meet-and-confer, and; 4. Direct staff to implement the HRC recommendation to recognize Dolores Huerta Day and Cesar Chavez Day as independent dates of significance as non-paid holidays, and; 5. Direct staff to remove Italian-American Heritage from the 2nd Monday in October, and that the City will solely recognize Indigenous Peoples’ Day. MOTION SPLIT FOR THE PURPOSE OF VOTING MOTION PASSED 1-2, 4-5: 7-0 MOTION PASSED 3: 4-3, Tanaka, Kou, Lauing no 13. Proposed Amendments to Palo Alto Municipal Code Title 18 (Zoning) Chapters 18.04 (Definitions), 18.10 (Low-Density Residential), 18.12 (R-1 Zones), 18.13 (Multiple Family Residential Zones),18.40 (General Standards and Exceptions), and 18.54 (Parking Facilities Design Standards) to Facilitate Implementation of Green Building Standards, Including Noise Standards and Placement of Obstructions Within Garages and Exterior Setback Encroachments for Electrification Equipment Such as Heat Pumps, Energy Storage Item 4 Attachment B - October 2, 2023 Draft Action Minutes Item 4: Staff Report Pg. 8 Packet Pg. 17 of 228 DRAFT ACTION MINUTES Page 4 of 5 City Council Meeting Draft Action Minutes: 10/02/2023 Systems and Electric Vehicle Charging Stations, and to Title 9 (Public Peace, Morals and Safety) Chapter 9.10 (Noise) to Facilitate the Installation of Electrification Equipment for Residential Development as Recommended by the Planning and Transportation Commission. CEQA Status – Exempt under CEQA Guidelines sections 15061(b)(3) and 15301. Council Member Lythcott-Haims recused herself from this item. MOTION: Council Member Burt moved, seconded by Council Member Veenker to adopt the draft ordinance amending the Title 18 and Palo Alto Municipal Code Chapter 9.10 to further facilitate the installation of electrification equipment in residential neighborhoods with the following modifications and direction: 1. Increase the base noise standards by 3 decibels for all heat pumps, and by 5 decibels for heat pumps with inverters, and to create a comprehensive list of heat pump equipment. 2. Direct staff to evaluate the following for future refinements to the ordinance: a. Evaluate allowing units with higher manufactured dB ratings provided that the sound is attenuated, and; b. Explore the streamline testing protocol for nonstandard equipment, and; c. The Development Center receives this information as soon as possible to disseminate for anyone looking at heat pumps or other HVAC equipment. MOTION PASSED: 6-0-1, Lythcott-Haims recused Adjournment: The meeting was adjourned at 8:59 P.M. Item 4 Attachment B - October 2, 2023 Draft Action Minutes Item 4: Staff Report Pg. 9 Packet Pg. 18 of 228 DRAFT ACTION MINUTES Page 5 of 5 City Council Meeting Draft Action Minutes: 10/02/2023 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 4 Attachment B - October 2, 2023 Draft Action Minutes Item 4: Staff Report Pg. 10 Packet Pg. 19 of 228 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Community Services Meeting Date: October 16, 2023 Report #:2309-2038 TITLE Approve Additional Funding for the Human Services Resource Allocation Process for Ada’s Cafe and Approve a Budget Amendment in the General Fund. CEQA Status – Not A Project. RECOMMENDATION Staff recommends the City Council to 1)Amend the Fiscal Year 2024 Budget Appropriation for the General Fund (requires 2/3 approval) by: a.Increasing the Community Services Department Contract Services expense appropriation by $45,000 for the Human Services Resources Allocation Process (HSRAP); and, b.Decreasing the Budget Stabilization Reserve by $45,000. 2) Direct the City manager to execute an agreement implementing additional funding of $45,000 for FY 2024-25 HSRAP recipient, Ada’s Cafe. EXECUTIVE SUMMARY Approval of this will increase the HSRAP grant award to Ada’s Cafe in the amount of $45,000 for a total grant of $57,442 for the FY 2024-25 HSRAP process and decreases the Budget Stabilization Reserve in alignment with Council direction received September 11, 2023. On September 11, 2023, the Human Relations Commission (HRC) presented to Council its recommendation for the distribution of $200,000 in additional funding for the Human Services Resource Allocation Process (HSRAP) as approved for Fiscal Years 2024 and 2025.1 The recommendation 1 September 11, 2023, City Council Meeting, Item 9 Accept the Human Relation Commission’s Recommended Contingency Plan for the Distribution of $200,000 in Additional Funding for the FY2024-25 Human Services Resource Allocation Process Recipients. Staff Report #:2307-1736. https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82498 Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 1 Packet Pg. 20 of 228 would provide funding to twenty-two (22) human services providers serving Palo Alto residents for the period July 1, 2023 – June 30, 2025. During the discussion time for this agenda item, the Council voiced its concern that one of the grantees, Ada’s Cafe, was not being funded to the same level that other applicants were and recommended additional funding in the amount of $45,000 from the Budget Stabilization Reserve for Ada’s Cafe. BACKGROUND 2 During budget deliberations, the Council approved an additional allocation of $200,000 for HSRAP. This included $50,000 in supplemental funding presented in the Proposed FY24 budget and an additional $150,000 proposed by Council during deliberations; for a total funding investment of $851,035 for FY 2024. ANALYSIS Motion: Accept the HRC’s recommended contingency plan for the distribution of $200,000 in additional fund for FY24-25 HSRAP recipients and direct the City Manager to execute agreements implementing such funding, and direct staff to return on consent 2 City of Palo Alto Proposed Operating Budget Fiscal Year 2024, CSD Human Service Contracts: Human Services Resource Allocation Process Contracts, Pages 222-223. https://www.cityofpaloalto.org/files/assets/public/v/1/administrative-services/city-budgets/fy-2024-city- budget/proposed/city-of-palo-alto-proposed-operating-budget_final.pdf Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 2 Packet Pg. 21 of 228 with an allocation from the BSR of an additional $45,000 for Ada’s Cafe to be administered consistent with HSRAP Standards. (6-1)3 In total, this would result in a grant to Ada’s Café in the amount of $57,442, with all funding provided and administered consistent with the HSRAP standards. FISCAL/RESOURCE IMPACT Funding in the amount of $45,000 from the Budget Stabilization Reserve will be shifted to the Community Services Department budget to increase HSRAP funding and specifically fund recipient Ada’s Cafe. This will bring the total HSRAP funding in FY 2024 to $896,035. An additional $50,000 also remains in the HSRAP Contingency to fund emergency or critical Human Services needs that may come up in FY 2024. This action will leave approximately $53.7 million in the Budget Stabilization Reserve (BSR) or 19.9% of the FY 2024 Adopted Operating Budget, which is slightly below the 20.0% level recommended to be maintained in FY 2024 for continued economic uncertainty, and above the 18.5% amount of $49.9 million STAKEHOLDER ENGAGEMENT The HSRAP contingency plan was discussed at the April 27, 2023 meeting of the Human Relations Commission. Meeting information was both publicly noticed and sent out to all HSRAP funding applicants. The Council consideration of the contingency plan on September 11, 2023, was also publicly noticed and send out to all HSRAP funding recipients. ENVIRONMENTAL REVIEW Approval of this action is not a project under the California Environmental Quality Act (CEQA) per CEQA Guidelines 15061(b)(3). APPROVED BY: Kristen O'Kane, Community Services Director 3 September 11, 2023, City Council Meeting Action Minutes, Item 9. https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=43061 Item 5 Item 5 Staff Report Item 5: Staff Report Pg. 3 Packet Pg. 22 of 228 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Utilities Meeting Date: October 16, 2023 Staff Report: 2307-1742 TITLE Approval of Contract Number C241879031 With Daleo, Inc. in the Amount of $7,826,860 for the Gas Main Replacement Project 24B (GS-14003) on University Avenue and surrounding streets in the University Park and Crescent Park neighborhoods, at a business district complex adjacent to Geng Road, and at Town & Country Village Plaza at Embarcadero Road and El Camino Real including water main and service replacements at this location; Authorization for the City Manager to Negotiate and Execute Related Change Orders Not-to-Exceed of $782,686, for a Total Not-to-Exceed Amount of $8,609,546; and Approval of Budget Amendments in the Gas and Water Funds. CEQA status – Exempt per CEQA Guidelines 15302(c) (Replacement or Reconstruction of Existing Facilities). RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or their designee to execute contract C241879031 with Daleo, Inc. in an amount not-to-exceed $7,826,860 for the Gas Main Replacement 24B project (GS-14003) on University Avenue and surrounding streets in the University Park and Crescent Park neighborhoods, at a business district complex adjacent to Geng Road, and at Town & Country Village Plaza at Embarcadero Road and El Camino Real including water main and service replacements at this location. 2. Approve and authorize the City Manager or their designee to negotiate and execute one or more changes to the contract with Daleo, Inc. for related additional but unforeseen work, which may develop during the project, the total value of which shall not exceed $782,686 or 10% of the contract amount. The total authorized not-to-exceed expenditure amount is $8,609,546, which includes the contract amount of $7,826,860 and a 10% contingency amount of $782,686. 1 Contract C24187903 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes- reports/reports/city-manager-reports-cmrs/attachments/10-02-2023-id-2307-1742-attachment-a-c24187903.pdf Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 1 Packet Pg. 23 of 228 3. Amend the Fiscal Year 2024 Budget Appropriation for the Gas Fund (requires 2/3 approval) by: b.Increasing transfers to the Gas Fund by $171,590. EXECUTIVE SUMMARY BACKGROUND Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 2 Packet Pg. 24 of 228 Replacing the gas distribution system with PE will enhance the reliability of the gas distribution system, make the system more resilient against corrosion and earth movements, eliminate potential leaks, reduce maintenance costs, and extend the useful life of the gas distribution system. In addition, unlike PVC gas main and services, the new PE pipelines will be installed with a metallic tracer wire, which increases the pipeline locating accuracy and reduces pipe ruptures during excavation. The Distribution Integrity Management Plan (DIMP) ranks construction excavation as the greatest risk to the City’s gas system due to the potential for homeowners and contractors damaging mismarked pipelines and causing a hazardous leak. The Project Area contains a relatively large concentration of people and traffic and is considered a potentially high- consequence area for gas leaks. Replacement of the gas distribution mains and services will reduce the overall risk, maintenance costs, and emergency repair disruptions to these areas. ANALYSIS 24187903 is to replace approximately 18,750 linear feet of natural gas mains and services with polyethylene (PE) pipe in neighborhoods of University Park and Crescent Park, a business district complex adjacent to Geng Rd, and Town & Country Village Plaza (see Attachment B). The main sizes being installed are 2-inch, 4-inch, and 6-inch in diameter and the associated installation of services and reconnects are 1-inch and 2- inch in diameter. This project is essential due to the need to replace aging infrastructure and address at least two known gas leaks that may be due to embrittled PVC or steel gas facilities Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 3 Packet Pg. 25 of 228 with ineffective cathodic protection. The PVC gas facilities were installed in the mid 1970’s and the steel gas facilities were installed in the 1920’s through the early 1950’s. These sections of main were prioritized to further the replacement of PVC pipelines and address leak prone steel pipelines in the gas system. Portions of this project replace mains installed on major streets and business districts and take a proactive approach to minimize impacts to the public in the event of a leak. The construction hours for this project are 8:00 AM to 4:30 PM, Monday through Friday. Streets with non-standard construction hours start at 9:00 AM and end at 4:00 PM. These streets include University Ave between Webster St and City Limits and Middlefield Rd between University Ave and Hamilton Ave. The Contractor will provide two construction message boards (CMBs) at each end of University Avenue, a minimum of 30 days prior to the start of construction, to notify the public of potential traffic impact. The CMBs will be moved and placed at appropriate locations as the project advances and will remain until all work on University Avenue is complete. Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 4 Packet Pg. 26 of 228 Bid Process Bid Name/Number Gas Main Replacement Project 24B (GS-14003), IFB Number 187903 Proposed Length of Project Number of Vendors notified through OpenGov # of Builder’s Exchanges notified through OpenGov Number of Bid Packages Downloaded by Vendors Total Days to Respond to Bid Pre-Bid Meeting? Number of Vendors at Pre-Bid Meeting Number of Bids Received: Bid Price Range Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 5 Packet Pg. 27 of 228 that Daleo Inc. and their listed subcontractors are registered and in good standing with the Department of Industrial Relations (DIR). FISCAL/RESOURCE IMPACT Summary of Project Costs for GMR 24B Project (GS-14003) Total Project Cost $9,626,286 Additional Funds Needed $1,192,741 Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 6 Packet Pg. 28 of 228 STAKEHOLDER ENGAGEMENT POLICY IMPLICATIONS ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 6 Item 6 Staff Report Item 6: Staff Report Pg. 7 Packet Pg. 29 of 228 ATTACHMENT A Gas Main Replacement Project 24B Bid Opening Date 8/1/23 GS-14000 187903 Item No. Qty. Unit Description Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price 1 5,956 LF Install 2" Gas MDPE pipe by horizontal directional drilling 193.00$ 1,149,508.00$ 162.55$ 968,147.80$ 413.00$ 2,459,828.00$ 474.23$ 2,824,513.88$ 2 3,049 LF Install 2" Gas MDPE pipe by open trench excavation 345.00$ 1,051,905.00$ 310.85$ 947,781.65$ 415.00$ 1,265,335.00$ 597.25$ 1,821,015.25$ 3 1,738 LF Install 4" Gas MDPE pipe by horizontal directional drilling 223.00$ 387,574.00$ 246.00$ 427,548.00$ 405.00$ 703,890.00$ 481.65$ 837,107.70$ 4 655 LF Install 4" Gas MDPE pipe by open trench excavation.497.00$ 325,535.00$ 670.00$ 438,850.00$ 435.00$ 284,925.00$ 650.85$ 426,306.75$ 5 3,644 LF Install 6" Gas MDPE pipe by horizontal directional drilling 257.00$ 936,508.00$ 254.00$ 925,576.00$ 415.00$ 1,512,260.00$ 547.75$ 1,996,001.00$ 6 997 LF Install 6" Gas MDPE pipe by open trench excavation.531.00$ 529,407.00$ 678.00$ 675,966.00$ 445.00$ 443,665.00$ 658.11$ 656,135.67$ 7 145 LF Install 8" water PVC pipe by open trench excavation 325.00$ 47,125.00$ 485.45$ 70,390.25$ 410.00$ 59,450.00$ 1,200.73$ 174,105.85$ 8 30 EA Install Anode Box 250.00$ 7,500.00$ 500.00$ 15,000.00$ 1,000.00$ 30,000.00$ 1,598.36$ 47,950.80$ 9 127 at the existing gas meter location by horizontal directional drilling OR open trench 8,000.00$ 1,016,000.00$ 10,375.25$ 1,317,656.75$ 4,760.00$ 604,520.00$ 20,913.79$ 2,656,051.33$ 10 101 gas service to new main by horiziontal directional drilling OR open trench 2,750.00$ 277,750.00$ 4,750.00$ 479,750.00$ 2,600.00$ 262,600.00$ 15,036.24$ 1,518,660.24$ 11 3 10,000.00$ 30,000.00$ 11,875.25$ 35,625.75$ 5,100.00$ 15,300.00$ 23,281.60$ 69,844.80$ 12 4 reconnect the existing 2" PE gas service to new main by horizontal directional 3,600.00$ 14,400.00$ 6,500.00$ 26,000.00$ 3,000.00$ 12,000.00$ 12,029.39$ 48,117.56$ 13 3 method and install new Armorcast water meter box and echange meter at new or 5,000.00$ 15,000.00$ 9,200.00$ 27,600.00$ 5,100.00$ 15,300.00$ 13,722.67$ 41,168.01$ 14 10 550.00$ 5,500.00$ 650.00$ 6,500.00$ 770.00$ 7,700.00$ 1,002.36$ 10,023.60$ 15 7 750.00$ 5,250.00$ 850.00$ 5,950.00$ 1,900.00$ 13,300.00$ 1,020.70$ 7,144.90$ 16 48 6,800.00$ 326,400.00$ 4,800.00$ 230,400.00$ 15,654.44$ 751,413.12$ 17 10 10,100.00$ 101,000.00$ 6,800.00$ 68,000.00$ 18,955.18$ 189,551.80$ 18 2 Box (24" x 36" x 18") with extensions and one-piece cover per Standard Detail GD- 3,800.00$ 7,600.00$ 4,800.00$ 9,600.00$ 4,500.00$ 9,000.00$ 2,849.83$ 5,699.66$ 19 1 6,000.00$ 6,000.00$ 22,000.00$ 22,000.00$ 11,000.00$ 11,000.00$ 21,441.67$ 21,441.67$ 20 2 EA Perform 6" water main tie-in/abandonment 4,500.00$ 9,000.00$ 18,000.00$ 36,000.00$ 4,500.00$ 9,000.00$ 8,576.67$ 17,153.34$ 21 1 EA Perform GPS survey 60,000.00$ 60,000.00$ 84,000.00$ 84,000.00$ 40,000.00$ 40,000.00$ 168,003.16$ 168,003.16$ Total 6,075,562.00$ 6,947,342.20$ 8,057,473.00$ 14,287,410.09$ Gas Total 5,998,437.00$ 6,791,351.95$ 7,962,723.00$ 14,033,541.22$ Water Total 77,125.00$ 155,990.25$ 94,750.00$ 253,868.87$ Item No. Qty. Unit Description Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price 22 5 at a NEW gas meter location by horizontal directional drilling OR open trench 8,000.00$ 40,000.00$ 10,375.00$ 51,875.00$ 4,760.00$ 23,800.00$ 13,846.52$ 69,232.60$ 23 5 EA Abandon existing anode box / valve 750.00$ 3,750.00$ 400.00$ 2,000.00$ 500.00$ 2,500.00$ 1,830.02$ 9,150.10$ 24 10 EA Install sanitary sewer cleanout 3,800.00$ 38,000.00$ 400.00$ 4,000.00$ 500.00$ 5,000.00$ 1,109.06$ 11,090.60$ 25 10 CY Recycle asphalt containing petro mat 18.00$ 180.00$ 24.00$ 240.00$ 100.00$ 1,000.00$ 540.45$ 5,404.50$ 26 1,500 SF Install additional pavement (up to 10" thickness of concrete base)4.00$ 6,000.00$ 4.50$ 6,750.00$ 5.00$ 7,500.00$ 73.43$ 110,145.00$ 27 2,000 SF Install additional pavement (up to 10" thickness of ashpalt concrete base)6.00$ 12,000.00$ 4.00$ 8,000.00$ 6.00$ 12,000.00$ 37.38$ 74,760.00$ 28 5,000 Inch/SF Install additional finished pavement (concrete thickness)1.00$ 5,000.00$ 2.00$ 10,000.00$ 1.00$ 5,000.00$ 13.35$ 66,750.00$ 29 5,000 Inch/SF Install additional finished pavement (asphalt concrete thickness)1.50$ 7,500.00$ 2.00$ 10,000.00$ 1.00$ 5,000.00$ 10.68$ 53,400.00$ 30 500 LF Perform additional saw cutting 2.00$ 1,000.00$ 4.25$ 2,125.00$ 3.00$ 1,500.00$ 5.01$ 2,505.00$ 31 250 LF Install additional curb 30.00$ 7,500.00$ 30.00$ 7,500.00$ 20.00$ 5,000.00$ 166.89$ 41,722.50$ 32 250 LF Install additional gutter 30.00$ 7,500.00$ 30.00$ 7,500.00$ 20.00$ 5,000.00$ 166.89$ 41,722.50$ 33 500 SF Install additional sidewalk 15.00$ 7,500.00$ 28.00$ 14,000.00$ 20.00$ 10,000.00$ 60.08$ 30,040.00$ 34 10,000 Inch/LF Sawcut additional pavement (thickness)0.40$ 4,000.00$ 1.25$ 12,500.00$ 1.00$ 10,000.00$ 5.01$ 50,100.00$ Project Title CIP No. Section A - Base Bid Engineer's Estimate Daleo Inc Section B - Add Alternatives - Supplemental Unit Pricing (SUP) Engineer's Estimate Daleo Inc PR No. Ranger Pipelines Inc Ranger Pipelines Inc ARB Inc ARB Inc Item 6 Attachment A - GMR24B Bid Summary Table Item 6: Staff Report Pg. 8 Packet Pg. 30 of 228 ATTACHMENT A 35 1 EA Remove meter box 500.00$ 500.00$ 500.00$ 500.00$ 500.00$ 500.00$ 4,140.68$ 4,140.68$ 36 10 Ton Disposal of excavated soils at Class 1 landfill 450.00$ 4,500.00$ 700.00$ 7,000.00$ 50.00$ 500.00$ 313.82$ 3,138.20$ 37 10 Ton Disposal of excavated soils at Class 2 landfill 350.00$ 3,500.00$ 600.00$ 6,000.00$ 100.00$ 1,000.00$ 313.82$ 3,138.20$ 38 20 EA Additional pothole 700.00$ 14,000.00$ 650.00$ 13,000.00$ 500.00$ 10,000.00$ 1,852.74$ 37,054.80$ 39 5 3,500.00$ 17,500.00$ 5,500.00$ 27,500.00$ 2,000.00$ 10,000.00$ 3,179.41$ 15,897.05$ 40 5 2,500.00$ 12,500.00$ 4,500.00$ 22,500.00$ 2,000.00$ 10,000.00$ 2,218.13$ 11,090.65$ 41 1 6,800.00$ 6,800.00$ 5,500.00$ 5,500.00$ 19,602.15$ 19,602.15$ 42 1 10,100.00$ 10,100.00$ 7,500.00$ 7,500.00$ 19,881.41$ 19,881.41$ 43 1 EA Install 6" line stop on 6" cast iron water main 15,000.00$ 15,000.00$ 18,500.00$ 18,500.00$ 8,000.00$ 8,000.00$ 20,026.63$ 20,026.63$ 44 1 EA Perform 6" water main tie-in with 6" tee on existing 6" cast iron water main 3,000.00$ 3,000.00$ 26,000.00$ 26,000.00$ 5,000.00$ 5,000.00$ 10,680.87$ 10,680.87$ Total 225,430.00$ 274,390.00$ 151,300.00$ 710,673.44$ Gas Total 207,430.00$ 229,890.00$ 138,300.00$ 679,965.94$ Water Total 18,000.00$ 44,500.00$ 13,000.00$ 30,707.50$ Item No. Qty. Unit Description Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price 45 1,219 LF Install 2" Gas MDPE pipe by horizontal directional drilling $ 193.00 235,267.00$ 149.50$ 182,240.50$ 413.00$ 503,447.00$ 325.49$ 396,772.31$ 46 75 285.50$ 21,412.50$ 415.00$ 31,125.00$ 820.80$ 61,560.00$ 47 2 500.00$ 1,000.00$ 1,000.00$ 2,000.00$ 1,598.36$ 3,196.72$ 48 3 EA Install 1" PE Gas Service Line Including EFV and 1" Riser with OR without a bypass $ 8,000.00 24,000.00$ 9,910.00$ 29,730.00$ 4,760.00$ 14,280.00$ 22,587.50$ 67,762.50$ 49 1 EA Install 1" PE Gas Service Stub and EFV for the City to reconnect the existing 1" PE $ 2,750.00 2,750.00$ 4,750.00$ 4,750.00$ 2,600.00$ 2,600.00$ 20,961.29$ 20,961.29$ 50 3 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (≤5-ft in depth, up to 25 SF) $ 3,000.00 9,000.00$ 6,800.00$ 20,400.00$ 4,800.00$ 14,400.00$ 16,573.08$ 49,719.24$ 51 1 EA Perform GPS survey $ 5,000.00 5,000.00$ Total 302,392.00$ 269,533.00$ 572,852.00$ 612,895.38$ Item No. Qty. Unit Description Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price Unit Price Extended Price 52 1,041 LF Install 2" Gas MDPE pipe by horizontal directional drilling 193.00$ 200,913.00$ 248.70$ 258,896.70$ 413.00$ 429,933.00$ 595.77$ 620,196.57$ 53 375 LF Install 2" Gas MDPE pipe by open trench excavation 345.00$ 129,375.00$ 518.50$ 194,437.50$ 415.00$ 155,625.00$ 754.78$ 283,042.50$ 54 2 500.00$ 1,000.00$ 1,000.00$ 2,000.00$ 1,598.36$ 3,196.72$ 55 14 8,000.00$ 112,000.00$ 8,500.00$ 119,000.00$ 4,760.00$ 66,640.00$ 15,700.55$ 219,807.70$ 56 1 EA Install 1" PE Gas Service Stub and EFV for the City to reconnect the existing 1" PE 2,750.00$ 2,750.00$ 4,750.00$ 4,750.00$ 2,600.00$ 2,600.00$ 14,419.37$ 14,419.37$ 57 1 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (≤5-ft in depth, up to 25 SF)3,000.00$ 3,000.00$ 6,800.00$ 6,800.00$ 4,800.00$ 4,800.00$ 17,634.26$ 17,634.26$ 58 1 EA Excavate Tie-in/Abandonment Pits for Gas Main(s) (≤5-ft in depth, up to 50 SF)5,000.00$ 5,000.00$ 10,100.00$ 10,100.00$ 6,800.00$ 6,800.00$ 16,279.43$ 16,279.43$ 59 1 EA Perform GPS survey 5,000.00$ 5,000.00$ 10,000.00$ 10,000.00$ 5,000.00$ 5,000.00$ 12,923.32$ 12,923.32$ 60 1 EA Town & Country Village - Perchloroethylene (PCE) contamination work restrictions 100,000.00$ 100,000.00$ Total 558,538.00$ 609,984.20$ 685,398.00$ 1,260,523.72$ Summary excluding SUP Engineer's Estimate Daleo Inc Ranger Pipelines Inc ARB Inc ………………………………………………………………………………………………………………………..6,075,562.00$ 6,947,342.20$ 8,057,473.00$ 14,287,410.09$ ………………………………………………………………………………………………………………………..225,430.00$ 274,390.00$ 151,300.00$ 710,673.44$ ………………………………………………………………………………………………………………………..302,392.00$ 269,533.00$ 572,852.00$ 612,895.38$ ………………………………………………………………………………………………………………………..558,538.00$ 609,984.20$ 685,398.00$ 1,260,523.72$ ………………………………………………………………………………………………………………………..6,936,492.00$ 7,826,859.40$ 9,315,723.00$ 16,160,829.19$ Gas Summary excluding SUP Engineer's Estimate Daleo Inc Ranger Pipelines Inc ARB Inc ………………………………………………………………………………………………………………………..5,998,437.00$ 6,791,351.95$ 7,962,723.00$ 14,033,541.22$ ………………………………………………………………………………………………………………………..207,430.00$ 229,890.00$ 138,300.00$ 679,965.94$ ………………………………………………………………………………………………………………………..302,392.00$ 269,533.00$ 572,852.00$ 612,895.38$ Base Bid (Items 14 through 29) Add Alternate - SUP (Items 35 through ) Add Alternate Geng Rd (Items 53 through 59) GRAND TOTAL Add Alternate - SUP (Items 22 through 44) Base Bid (Items 1 through 21) Section D - Additive Alternate Bid - Town & Country Engineer's Estimate Daleo Inc Add Alternate Geng Rd (Items 45 through 51) Add Alternate T&C (Items 52 through 60) Ranger Pipelines Inc ARB Inc Section C - Additive Alternate Bid - Geng Rd Engineer's Estimate Daleo Inc Ranger Pipelines Inc ARB Inc Item 6 Attachment A - GMR24B Bid Summary Table Item 6: Staff Report Pg. 9 Packet Pg. 31 of 228 ATTACHMENT A ………………………………………………………………………………………………………………………..558,538.00$ 609,984.20$ 685,398.00$ 1,260,523.72$ ………………………………………………………………………………………………………………………..6,859,367.00$ 7,670,869.15$ 9,220,973.00$ 15,906,960.32$ Water Summary excluding SUP Engineer's Estimate Daleo Inc Ranger Pipelines Inc ARB Inc ………………………………………………………………………………………………………………………..77,125.00$ 155,990.25$ 94,750.00$ 253,868.87$ ………………………………………………………………………………………………………………………..18,000.00$ 44,500.00$ 13,000.00$ 30,707.50$ ………………………………………………………………………………………………………………………..-$ -$ -$ -$ ………………………………………………………………………………………………………………………..-$ -$ -$ -$ ………………………………………………………………………………………………………………………..77,125.00$ 155,990.25$ 94,750.00$ 253,868.87$ Base Bid (Items through 42) Add Alternate - SUP (Items through 60) Add Alternate T&C (Items through ) GRAND TOTAL Add Alternate T&C (Items through ) GRAND TOTAL Item 6 Attachment A - GMR24B Bid Summary Table Item 6: Staff Report Pg. 10 Packet Pg. 32 of 228 489-499 425 400 570568 556 550327 328 536-540 591-599 330 318 406-4 1 8 417 568 578 440-44 6 579 567 625 610 600 624 511 517 524 555 581 329 634 576 257 259 228 660 236 228 218 242 250 676 688 644 154-15 8 428 422 416 732 724328 434 352 360 401 760 402 311 312 817-829 831-845 421 425 530 775 771 723 608 618 755 705 680 721 641639637 633 640 634 728 750 764 776 788 744 752 759 755 757 744 738 740 670 650 649 641 644 627 628 619 750 762 766 780 620 605 641 764 812 918 916919 920 720860 850 842 844 846 775 853 859 852 835803 811 819 827 835 749 954 925 939 943 844 850 826 820 816 938 934 945 960959 931 947949 937 962 968 972 978 986987888 1052 981 868 870 971 965 1111 111 5 111 9 886884 979981 985 975 965 969 961 951 945 935 931 940 936 956 921 915 925 958 950 980 1 498 805 815 445 433 810 830 811 833 526 880 909 925 900 830 860 821 827 750 812-822 836-846 848-858 835 851 850 860 880 871 881 404 970 950 920 449 919 969 480 470 460 440 420 960 970 980 400 950 930 939 435 1021 859 827 840 905 649 633 627 900 920 930 938 940 656 664 650 972 877 890 880 960 954 947 935 701 645 655 665 990 1099 110 2 107 8104 4 1022 100 2 1101 105 11041 103 1 910 920 930 932 938 936 944 950 956 1058 106 6 105 0 104 0 1030 1075 108 1 1140 114 6 1095 1100 1106 111 4 1120 1116 113 01126 1017 1023 1021 1009 1007 1001 1089 515 525 545 1150 575 565 1101 113 0 625 509 567 1101 1125 480 50 111 1 555 1109 1107 580 570 560 1001 1031 117 0 1250 1050 460 1310 128 0 129 0 127 0 1340 1394 137 6 1145 1133 11251121 111 735 113 6 133 0 55 47 111 5 126 0 475 1116 113 0 114 4 1137 114 9 1171 1001 1011 1025 1053 118 0 10631156 1170 112 7 1175 1181 1105 991 1170 121 0 1205 1140 1060 1050 1121 118711851183118111771175 1165 1153 1156 1168 117 0 1178 1184 119 0 1196 1145 1141 113111411137 1425 1405 1235 1245 144 0 142 0 141 0 1450 423 1353 1181 1169 1163 520 1570 1560 1556 1201 1505 1 1370 1531 1545 1600 1650 580 525 515 505 1401 548 566 125 165 593 590 557 585 245 170 190 200 1408 1400 576 428 445 441 430 420 421 460 456 440 1130 114 4 1134 1176 1154 400 455 405 401 420 419 418 15 45 63 51 39 27 16 24 90 1771 1755 1741 1737 1661 40 50 70 97 1750 500 525 541 241 275 1870 80 1365 95 87 79 10 150 212 684 204 211 201 133 125 710 730 130 120 744 770 798 320 771 245 235 225 754 784 215 225 241 786 788 247 253 820 482 490 483 118 9 620 755 417 114 8 630 852 1358 111 2 955 545 743 548 550 824-834 778 763 830 644 1005 555 678 333 117 8 669 937 933 963 435 8 519 515 518 635 1418 343 335 872 801 874 1875 211 102 1 548 200 850 637 563 1155 850 720 533 235 923 110 3 830 437 657 121 451 434 234 707 811 525 1120 525 765 772 604 645-651 838A 833 536 1449 438 675 335 823 529 610 636 830 665 236 530 820 1094 742 576 318 752-766 550 355 515 951 1147 539 969 245 1044 912 959 1010 575 520-526 680 630 540-546 999 332 638 336 237 925 631 838 737 1875A 649 623 420 543 736 625 412 961 619499 1030 251 832 922 407 222 424 336 328 244 328 270 1039 216 75 548 486 761 834 546 960 801 664 725 336 644 535 527 115 627 438 602 554 735 1129 164-168 734 551 782 829A 668 656Bldg C 336 228 765 405 428 1085 656Bldg D 418 840 1057 329 500 625 426 321 328 544 780 345 478 660 761 573 603 320 60B 614 1030 951A 325 1145 835 116 7 211 865 870 860 740 859 1060 780 344 662 608 643 528 832 38 826 829 846 951-955 880 626 351 329 640 319 924 523 423 843 604 347 623 860 751 101 2 260 1144 674 626 1195 566 555 772-778 823 835 755 443 836 417 861 518 550 557 122 1 857 355 1157 360 243-24 7 800 672 500 758 1184 642 552 115 7 515 425 1055 865 941 435 243 770 1730 600 619A 876 381 251 524 250 130 7 419 108 7 357 1341 123 3 537 630 235 715 541-547 831 812 365 561 731 229 780-798 430 542 1056 1337 789 848 820 875 652 840 804 720227 664 415 436 930 1155 918 635 409 735A 345 957 926 550 628 416 311 727 320 774 819 765 1015 656 776 726 721 103 2 670 1845 118 9 955 623 424 616 1061 766 843A 846 1056 344 935 320 537- 555 213 991 930 975A 790 240 864 939 422 465 565 828 1030 944 401 107 1 348 939 102 5 343 1307 A 113 1 1625 428 352 579 115 0 334 870 212 1139 928 851 616A 256 558-562 730 945 825 575 112 1 840 360 633 1159 961 725 244 909 437 342 60 1042 531 1091 415 615 101 9 555 969A 434 641 489 221 975 187 639 836 831 1144 A 359 853 222 1321 865 654 842 212 445-455 761 667 750 559 432 345 852 939A 1080 855 951 321 425 838 102 0 851 953 425 347-359 734 792 108 4 606 420 1068 305 858 1298 567 934 809-823 281 210-216 228-234 223-229 240 369 301 307-311 326 316 544 550 554 556 558 560562 564 313 334 333 326 342 303301 229 336 308 310 312 316 318 331 315 319 317 321 335 427-431 183 359 341 343 228 220 347-367 369-379 360 258 350 210 204 176 365 381 181-187 302-316 310 328 332 412 313 325 407 401 385 411 482 250 477 475 453 201 460 505-509209-213 210-214 472 228 130 150 166 176 117 545 548 552 530 131 471-479 174170 525 185 179 160 164 152 144 580 239-2 4 5 544-554 212-216 218-22 2 175 160 150 169 145 580 590 321 315 305 559 209 676 711 730 661-665 655-659 600 759 637 749 680 644 728 679 668-674 660-666 659 661 741 725 721 741-75 7 732 876 102 3 1037 105 1 106 5 954 896 102 0 1026 1032 1040 940 1050 1060 984 125 7 122 0 1238 1256 1268 20 60 20 30 11 31 10 1021 1041 1051 70 80 40 41 40 41 11 109 3 109 5 1280 3020 960 965 1151114 3 955 945 940 92011701166 116 0115 2 114 41136113 01122 1114 110 2 115 9 1167 11751125 1175 81 41 80 60 65 8021380 13601344 1322 11 30 31 21 11 850 8602040 41 31 880 1155114 5 11391133112 5 133 1 132 1 885 861 1470 124 0 1302 131 0 1320 1330 945 131 5 1335 1355 1340 1350 140 2 1430 1450 1470 901 147 5 1465143 5 851 1449 1443 1469 853 14301410 1431 1411 1451 1464 1458 1450 1444 1420 1426 1438 1432 1463 1457 801 121 6 123 0 124 2 125 6 127 0 128 4 130 0 1219 123 3 124 7 127 5 129 1 122 0 124 6 126 0 127 4 122 0 124 01210 1256 1290127 6 126 1 1299 128 5 127 1 125 712291215 121 1 1225 123 5 124 5 1255 128 5 550 560 1200 1230 1250 1280 129 5 1255122 1 120 9 1250 1270 1280 1520 1530 1266 718 720 771 1408 1407 726 722741 737 790 13701304 138 2 136 6 740 13501326 130 2 139 8 1403 1440 1466 1470 1463 1454 1467 1474 1413 1417 1421 1437 738 734 730 742 750 754 715 725 1432 1428 1424 1457 1462 1453 1393 1381 1342 1360 138 6 1303 131 9 1335 135 1 136 3 650 137 0 1300 1290 139 8 1365 1349 133 3131 7 1301 1300 1324 610 139 0 1690 1301 590 586 557 570549 560 543 542 534 535 526 510 515 130 1408 1433 1429 1425 1417 1421 1413 1409 1405 1403 714 1420 725 729 733 1410 1407 1415 1419 1423 102 111 123 1449 1453 1448 1444 1445 1441 190 140 1437 144 1 1443 1440 531 530 525 561 573 587 150 155 175 555 543 1710 660 142140 136 128 122 102 100 104 101 109 612 622 121 123 246 250 260 162 346 350 380 345 119 125 300 310 154 340 374 219 151 221 313-317 238 390 177 480 120 165 135 143149 155 302 310 314 320 161 110 120 354 344 334 364 160-164 134 150 181 758 251 590 706 345336 470 730 729 737 745 454-458 646 648 330 349 327 150 114 6 595 363 850 1426 829 1331 130 262 202 126 151 159 719 209 223 231 159 218 236 240 239-2 4 5 1418 38 566 545 519 465 715 630 535 223 1416 847 675 531 335-339 619 292 619 539 173 633 318 171 515 880 13751357 277 737 719 204 151 500 129 940A 734-744 390 680 330 639 507 620 169 837 674 131A 746 437 760 600-604 609 224 131 7 567 127 5 228 127 5 101 739 309-321 309 103 1 325 890 340 21 251 660 715 718 327 191 328 675 375 105 259 143 420 634 1420 122 0 602 538 651 565 119 404 638 125 130 171A 144 333 1239 171B 707 635 827 131 8 330 215 334 985 361 129 0 1412 351 753 1431 529 252 1428 653 181 513 641 190-1 9 4 536 558 616 725 230 129 3 405 357 640-648 580 358 193 738 1111 643-653 667-671 181 657 460 113 422 1432 535 197 225-233 528 536 456 637 149 134 5 623-625 135 717 745 327-333 531A 569 268 249 1305 723 144 740 311-317 336 535 1105 177 136 467 901 221 419 305-313 532 735 627-631 642 379 100 422A 6 31 517 539-543 280 537 465 466A 320 138 4 505 449 555 344 382 531 215 649 356 348 940 390 332 135 3 203 711 275 361 110 159 945-9 5 7 727 337 453 628 1400 617 545 311 375A 635 272 189 429 209-2 1 5 1355 222 575 419 120 224 149 121 633 1342 1135 141 513-519 636 647 168 512 218 651 750 850 899 331 384 134 640 483 219 169 701 1385 177 525 541 457 167 621 735 428 461 167 276 164 401 618 220 219 759 446 321 467 201 825 115 649 543 611 193 466 338 426 137 1241 A 925-93 7 655 351 171 532 751 645 135 9 727 555 639 380 870 147 451 195 309 615 530 21 540 432 169 1241 457 534 405 752 318 645 418 155 465 275 321-325 220 485 335 293 360 170 451 330 547 311 386 470 319-325 827 134 0 655 511 577 556-596 285 333 235-243 262 835 131 801 436 751 631 115 168 678 653 459 175 135 6 909-92 1 166 734 515 905 532 101-119 138 652 644 133 221 904-926 459 437 608-620 288 521 633 559-563 845 332 850 637 340 133 7 705 151 189 10 187 284 171A 311 731-73 5 627 426 516 472 474 123 4 518 296 621 357 542 179 235 652-676 452 517 121 640 185 624-638 267 726 373- 377 324 520 629 1127 533 388 643 580A 330 122 3 250-25 4 701 320 543 137 401 202 200 585 595 1048 1044 1026 1022 574 580 980 717 727 733 737 767 777 728 1007 803 475 427-453 803 1235 603 1245 1261 1229 1221 618 1220 1228 1242 1212 1202 1216 570 560 554 609 571 567 559 1136 555 545 535 1118 1110 467 558 660 656 1211 1205 1221 1150 663 671 646 1147 655 659 629 1160 625 1150 1143 1142 1124 1120 630 1112 728 720 1111 1119 1127 1145 1149 1136 1128 1120 1112 1085 705 1101 1120 1110 690 660 1119 1065 631 1270 1252 652 662 1334 1320 1321 1325 677 667 1144 1152 1160 711 1135 1143 1151 1160 1202 1212 787750 1211 1219 1227 769 1202 1212 1222 1230 1211 1221 700 1231 1295 1204 1212 1218 1226 1225 1227 1234 1254 659 1231 1253 651 653 680 672 136 150 535 529 525 542 516 140 163 528 635 620 180 158156 624 628 632 536 540 177 595 180 170 542 544 221 233 235 450460 470 420 430 411 425 429 185 181 412 250 420 169-173 441- 445 435-439 346344 333 335 342 344 431 460 450 222 240 545 251 485 255 281 581 244 247-25 9 232230 311-3 1 7 344340 332 330 353 355 367 305 418 319 330 300-310 401 366 335 319 315 375 416-424 340 560 529 555 535-539 405403 453 461 383 510 526 425 555 400 436-452 379 384-39 6 499 432 428 460-476 450 635 706 512 605 518 610 630 534 552 470 420 430 480 463 451 443 411 430 564 550 505 619-623 678672 636 703 953 945 925 722-728 734 738 935 943 781 850 737 818 760 750752 754 734 736 746 744 742 740 738 835 1030 1038 1027 1035 1045 1050 1090 1057 1061 1015 1012 1018 1040 1032 1026 1100 750 1101 1111 1119 725 731 717 927 950 750 758 764 774 786 920 825 811 808 833 1057 809 1033 1023 1017 1011 1003 844 912931 833 825 937 943 1017 1011 1020 1010 1000 909869 915 930 826 828 834 836 861 804 1125 1135 1143 1151 1163 805 813 852 839 849 860 868 869 880 875 890 833827 817 839 849 970 859 867 1150 1142 1134 1126 1118 1110 950 817 840 815 820 895 911 951919 991985975955 1011 623 100 654 625 222 148 171 312 324 317 301 186 192 323 329 151 329 334 131 129 301 235 258 212 163 115 291 247 150 210 201 207 164 202 158 180 165 170 249 247 244 177 261 251-257 245 231 225 213 205 170 172 206 234 240 241-247 210-216 132 245 188 190 202 206 208 210 212 216 220 906 1159 275 539 201 168 930 960 408 412 440 1130 328 345 1146 230 301 305 309 715 95 324 315 507 536 132 127 180 610 658 539 115 167 650 451 551 530 415 423 430 262 1073 401 541 480-498 411-419 597 1003 264 650 500 504 506 502 508 143 147 145 532 536 172174 1142 217 215 25 27 707 1023 818 467 205 455 609 900 681 608 611 162 303A 627 233 459 612 642 235 271 940 314 444 601-605 135 617 522-526 605 456 346 603 540 530 431 192 436 520 215 540 637 251 347 501 993-997 638 626 711 1051 122 227 575 270 863A 1125 454 316 307A 664 525 677 1077 330 558 600 750A 609 843 631 842 724-7 3 2 139 115-119 270 101 762 535 328 525 125 548- 566 759 421 252 457 180 628 425 180 667 436 333 546 698 325 635 421 863 482-496 567 514 225 924-93 6 1135 423 164 581 655 250 234 855 684-688 278 607 180 215-2 3 3 301 575 541-547 473-479 552 534 431 375 908-92 0 623 120 802 744 100 800 442 675 207 306A 528 1151 653 251 533 121 124 209 145 165 374 450 432 449-47 1 480 667 250 444 619 1061 152 425 627 1139 325 251 534 164 459 505 552 229-247 685 150-156 588 415-419 755 282-29 0 537 335-339 575 201 560 659 431 550 423 804 101 405 601 303 457 365 675 1069 1127 524 640 116 611 550 318-324 203 542 202-216 621 317-323 673 307 610 660-666 441 451 129 345 541 520 550 520 180 439 400 1151 613 831 530-536 318 120 252 888 1327 609-621 645 645 601 380 437 337 637 201 433 533-53 9 1053 630-64 0 355 884 457-481 463 514 663 1145 657 621 139 425 734-74 0 445 101 853 321 130 167 228 137 640-656 180 671 436 144 325 975-98 9 440 544 499 310 427 433-439 533 645 270 446 1127A 265 540 99 240-248 432 376 380 531 611 255 1128-1 1 3 2 171 306 685 183 449 440 546 636 1027 677 655 683 1001 425 276 220 620 220 329 272-280 518-52 6 500-528 145 643 660-668 566 679 151 695 423 1111 546-552 447 308 355 271 259-267 585 228 434 1057 600 1001A 320-32 6 469 430 238 555 1119 400 530 209 828 548 540 172 245 370 235 444 765 483 615 657 891 668-680 941 821 341 453 326-338 623-63 5 382 938 242 116 219 420 400 625 720 614 853 502 200 421 532 312A 669 661 426 961-97 3 455 708 302 530 610 542 205 629 628 748 665 1101 352-364 530 538 751 335 111 826 300 617 102 1127 905 877 220 611 445 900-90 4 226 312 150 1340 1050 327 326 345 1020370 376 451 471 537 543 551 1027 1019 420 952 526 536 450 350 943 942 920 912 362 370 900 838 846 471 459 460 815 928 930 810-81 6 1247 1345 1335 1330 1322 1325 500 530 550 560 1319 480 1312 475 1236 430 450 467 567 556 536 566 580 510 1107 528 1001 1021 483 904 912 468 519 931-93 5 923 1001 1011 331329 1061 980960 990 342-352 427 459 457 1140 436 1101 433 425 1135 405 1136 1146 1130 1110 356 334 426-430 363 1055 1033 1043 1042 1018 1000 452 451 439 944 948 933 935 440 428 426 550 1211 527-53 3 510 520 903 1400 552 1411 1344 1350 580 1327 1333 1342 1336 555 1341 575 636 1320 1326 1330 1321 1340 1345 1350 686 1410 1420 1430 1440 1460 1450 1480 1485 1447 1437 1427 1419 1415 666 1400 1420 1431 1450 1433 1480 1455 1504 1465 1512 1520 1528 1475 1420 1421 1432 1492 1357 633 1338 1333 1342 1366 1351 675 1341 102 9 103 5 1043 1051 1038 750 1200 1232 102 1 742 650 660 668 643 633 631 1505 1519 1527 1535 1560 1550 1540 1530 1520 1510 1500 750 655 780 17341675 1140 115 0 1220 113 0 1215 1249 114 31135 1247 1265 1285 1295 1221 122 9 123 9 1228 125 0124 0 123 0 1260 120 0 1212 122 0 1231 1141 1110 113 4 111 1 1181 1161 1118 1126 1131 114 1 1151 116 1 121 1 1158 1144 123 6 11801170 116 0115 01142 112 1 1231 1100 122 1 1228 1321 13231305 1258 1272 133 5 1327 1312 1275 1249 133 0 136 5130 7 1301 1326 132 0 636 640 203 636 630 230-238 734 723 721 755757 771 200 728-732 255 741 265 267 661 635 385 744 734 724 720 712 300 1090 840 1010 1030 1050 1070 786 794 818 830 102 5 107 0 1031101 9 103 7 103 0 105 0 11811121 110 0 1045 1112 1122 1186 117 31165115 7 11491141 1133 112 71111 1205 1245 124 2 1045 1055 1087 1241 1121 1011 130 1 131 0 1321 1331131 1 134 1 134 0 133 0 132 0 130 5 1325 134 5 401 420 1718 1730 1736 330 361 351 345 1776 302 353 1535 509 555 1556 550 1570 455 470 465455 464 440 418 1651 415 425 445 512 401 1745 1739 421 427 470 1820 492 458 1850 435 430 420 1801 1831 419 425 1800 1815 435 1760 1708 442 436 426 1727 443 451 457 17441730 1728 450 458 468 505 559 551 526 543 535 527 519 1753 1741 1705 1715 520 510 502 510 1805 1730 431 1734 1855 510 1925 1945 450 1928 1900 536 1800 568 558 552 544 520 528 1827 1835 505 519 527 1828 1836 559 571 1850 604 543 1565 1525 601 640 651 635 625 1651 1711569 563 555 570 535 525 521 1669 1631 526 544 578 1700 595 566 1720 680 658 650 1730 1732 667 659 651 643 635 627 611 619 1745 1733 1755 620 634 626 618 1741 1729 1717 1707 780 790 744 111 735 847 842 828 248 230 825 829 839 831 801 815 718 745 209 834 836 895 934 942 910 926 935 759 905 1008 541 685 500302 324 340 848 751 1207 727 733 214 130 5 807 829 801 818-82 4 420 424 430 911 943 951 940 944 271 253 241 301 319 935 928 1010 423 425733-74 3 936 920 1515 152 808 915 206 739 840 642 643 1018 112 0 426 756-760 940 534 930 1330 673 819 725 828 229 668 821 250 651 643 528 540 931933 1336 1300 405 409 1225 538 443 927A 705 1177 1701 644 275 467 160 795 1280 340 451 625 650 1246 1700 855 857 872 501 359A 355A 604 1421 1048 367 918 729 300 862A 385Bldg D 1028 1216 281 358A 1119 904 539 903 1248 939 1736 1620 1861 432-438 536 646 351 434 463 521 1525 355 437 350 1239 630 737 458 1224 1232 444 730 631 1035 800-818 909A 1275 1950 831-835 381 425 936 740-74 6 839-85 5 631 907 1500 1032 223-239 845 1119 1233 1705 351 505 171 1201 1700 837 212 936-9 4 0 865 909 1015 445 521 971834 285 650 627 1550 1005 175 240 708 960 824-82 8 1302 A 1665 569 475 1036 118 9 1290 1853 1720 352 917 449 162 801 270 1832 459 1633 610 131 9 558 315 361 865A 1015 654 539 501-505 525 103 6 840 626 540 113 0 445 114 4 528 365Bldg C 363A 616 903A 918 761 936A 1252 532 544 1716 195 540 932 1821 520 435 610 1736 817 538 852A 116 0 703 915 351A 210 745 778 947 852 1725 101 3 13111215 1138 220-244 1046 919A 509 561 635 1011 365 363 602 825 619 325 905A 469 151-155 375Bldg C 600 116 8 132 5 505 525 1620 818 1276 833 1401 160 507 201 185 315-325 332 940 936 1640 836 830 1328 260 1152 1030 601 1729 232 919 528A 663 774 675Bldg A 828 1708 200 819 904B 1738 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RES T D R I UNIVERS I T Y A V E N U E V E CENTER DRI EAST CRESCENT D UNIV E R S I T Y A V E N U E RI VE SOUT H W O O D D R I V E EDGEWOOD DR UNIVERSITY AVENUE MAR L O W E S T R E E T HAM I L T O N C O U R T HAMILTON AVENUE MA P L E S T R E E T UNIVERSITY AVENUE HAMILTON AVENUE PAL M S T R E E T LIN C O L N A V E N U E LIN C O L N A V E N U E HAMILTON AVENUE C RES AV AELOTNLOUAEPAVE NU E HALE S T R E E T PALO ALTO AVENUE UNIV E R S I T Y A V E N U E CHAUC E R S T R E E T PA HALE S T R E E T LO A L TO AVENU CHA U C E R S T R E E T E L FULT O N S T R E E T O ALT SENEC A S T R E E T UNIV E R S I T Y A V E N U E OEUANVEEVNA U EO PTALLO ILS OL N W AIHP EVIRDDOO EW D G EW O O D AC WEST B A Y S H O R E R O A D KSO BAYSH O R E F R E E W A Y N D BAYSH O R E F R E E W A Y R I V EAST B A Y S H O R E R O A D E EDGEWOOD RHO D E S D R I V E DR I VE Y D ERS R ON I D V R E IVE P A T R I C I A L A N E J DE SOT O D R I V E ALE S T E R A V E N U E DANA AV E N U E E MAD I S O N W A Y UNE JVAEFNFOTLI DAOR MSAPDI REGENT PLACE BO Y C E A V E N U E AD D I S O N A V E N U E GUIND A S T R E E T HOM E R A V E N U E SOMERSET PLACE KIR B Y P L A C E FOR E S T A V E N U E LIN C O L N A V E N U E GUIND A S T R E E T BO Y C E A V E N U E MARTIN AVENUE SENE C A S T R E E T FIFE AVENUEFIFE AVENUEHAMI L T O N A V E N U E LIN C O L N A V E N U E PITMAN AVENUEFOR E S T A V E N U E SENEC A S T R E E T BO Y C E A V E N U E FOREST AVENUEFOREST AVENUE FOREST AVENUE HAMI L T O N A V E N U E SENE C A S T R E E T FO R E S T C O U R T HALE S T R E E T DANA AVENUE LIN C O L N A V E N U E HAMILT O N A V E N U E EEUNEVANOTLIMAH JACKSO RHO D E S D R I V E N D R I ALANNA H C O U R T V E NEW E L L R O A D HAMILTON A V E N U E NEWELL PLACE E D LOUISA C O U R T G NEW E L L R O A D E WOO D D R NEW E L L R O A D I V DE S O T O D R I V E E NEW E L L R O A D DANA A V E N U E ED H G A E M NEW E L L R O A D SH A R O N C O U R T KENT PLACE ARCADIA PL A C E TEVIS PLACE PITMAN AV E N U E CE N T E R D R I V E KINGS LA N E PITMAN A V E N U E DANA AVE N U E CEN T E R D R I V E ASHBY D R I V E DANA AVE N U E CE N T E R D R I V E HAMILTO N A V E N U E ISLA N D D R I V E E V I SOUT H W O O D D R I V E R D T ENVEEIVC SA N D A L W O O D C O U R T BAYS H O R E F R E E W A Y GRE E R R O A D ED G E W O O D D R I V E BAYS H O R E F R E E W A Y IVY LANE BAYS H O R E F R E E W A Y WILDWOOD LA EN GRE E R R O A D O'BRINE LA N E HILB A R L A N E EDGE W O O D D R I V E WEST B A Y S H O R E R O A D BAYS H O R E F R E E W A Y BAYS H O R E F R E E W A Y BAYS H O R E R O A D E A S T EDGE W O O D D R I V E LAURA LANE EDG E W O O D D R I V E CHANNING AVENUECHANNING AVENUE R CHANNING AVENUE H O D E S D ALES T E R A V E N U E R EUNEVANOTLIAMHIDE SOTO DRIVE V WEBST E R S T R E E T FOR E S T A V E N U E UNIVE R S I T Y A V E N U E WEBST E R S T R E E T HAM I L T O N A V E N U E FORE S T A V E N U E MIDDL E F I E L D R O A D BYRON S T R E E T WEBS T E R S T R E E T UNIVE R S I T Y A V E N U E FULTO N S T R E E T HAM I L T O N A V E N U E MIDDL E F I E L D R O A D LYTT O N A V E N U E MIDDLE F I E L D R O A D FULTO N S T R E E T UNIV E R S I T Y A V E N U E BYRON S T R E E T LYTT O N A V E N U E GUIND A S T R E E T FULTO N S T R E E T MIDDL E F I E L D R O A D GUIND A S T R E E T LYTT O N A V E N U E UNIVE R S I T Y A V E N U E FULTO N S T R E E T EVER E T T A V E N U E LYTT O N A V E N U E GUIND A S T R E E T P A COWP E R S T R E E T E EVER E T T A V E N U E MIDDLEFIE L D R O A D BYRON S T R E E T KIPLIN G S T R E E T HAW T H O R N E A V E N U E EVER E T T A V E N U E LYTT O N A V E N U E COWP E R S T R E E T WEBST E R S T R E E T P AL KIPLIN G S T R E E T O A EVER E T T C O U R T LT BYRO N S T R E E T O A EVER E T T A V E N U E MIDDLE F I E L D R O A D LYTT O N A V E N U E WEBST E R S T R E E T COWPE R S T R E E T TASS O S T R E E T ME L V I L L E A V E N U E MIDDLE F I E L D R O A D WEBST E R S T R E E T KINGS L E Y A V E N U E ADDI S O N A V E N U E FULTO N S T R E E T MIDDLE F I E L D R O A D HARKER AVENUE WEBST E R S T R E E T GUIND A S T R E E T CHAN N I N G A V E N U E LINC O L N A V E N U E FULT O N S T R E E T ME L V I L L E A V E N U E MIDDL E F I E L D R O A D ADDI S O N A V E N U E GUIND A S T R E E T HOME R A V E N U E LINC O L N A V E N U E MIDDL E F I E L D R O A D CHAN N I N G A V E N U E ADD I S O N A V E N U E GUIND A S T R E E T ME L V I L L E A V E N U E CHANNING AVENUE CHANNING AVENUECHANNING AVENUE MIDDLE F I E L D R O A D HOM E R A V E N U E LIN C O L N A V E N U E GUIND A S T R E E T CENTE N N I A L W A L K GILMA N S T R E E T HAMI L T O N A V E N U E HIGH S T R E E T BRYAN T S T R E E T LYTT O N A V E N U E RAMON A S T R E E T PAUL S E N L A N E WAVER L E Y S T R E E T LANE 2 1 EMER S O N S T R E E T LANE 2 0 W E S T BRYAN T S T R E E T UNIV E R S I T Y A V E N U E RAMO N A S T R E E T EVER E T T A V E N U E WAVER L E Y S T R E E T EMER S O N S T R E E T HAMI L T O N A V E N U E FLORE N C E S T R E E T BRYAN T S T R E E T LANE 2 0 E A S T LYTT O N A V E N U E RAMO N A S T R E E T WAVER L E Y S T R E E T LANE 1 5 E A S T LANE 3 0 UNIV E R S I T Y A V E N U E COWP E R S T R E E T EVER E T T A V E N U E BRYAN T S T R E E T OREG O N E X P R E S S W A Y OREG O N A V E N U E NOR T H C A L I F O R N I A A V E N U E CARME L D R I V E EVIRD SICNARF TS EMBARCAD E R O R O A D TULIP LAN E EMBA R C A D E R O R O A D ST F R A N C I S D R I V E WEST BAYSHORE ROADWIL D W O O D L A N E TULIP LANE CHANNING AVENUE CHANNING AV E N U E WIL D W O O D L A N E WE S T B A Y S H O R E R O A D WALNUT DRIVE EMBARCADE R O R O A D WAL T E R H A Y S D R I V E WALTER HAYS DRIVE ER S T W I L D C O U R T MARK T W A I N S T R E E T WALNUT D BRET H A R T E S T R E E T R STA N L E Y W A Y IV L A N W E U STA N L E Y W A Y T DR I GREENWOOD AVENUE BYRON S T R E E T HA R R I E T S T R E E T HA R R I E T S T R E E T HA R R I E T S T R E E T HA R R I E T S T R E E T MIDDL E F I E L D R O A D COMMUNITY LANE CHANNING AVENUE GREENWOOD AVENUE HOPKINS AVENUE HARKER AVENUE PARKINSON AVENUE WIL S O N S T R E E T HU T C H I N S O N A V E N U E CE D A R S T R E E T CE D A R S T R E E T CHANNING AVENUE HOPKINS AVENUE COMMUNITY LANE HARKER AVENUE GREENWOOD AVENUE PARKINSON AVENUE PIN E S T R E E T EMBARCAD E R O R O A D COMMUNITY LANE HOPKINS AVENUE NE W E L L R O A D NE W E L L R O A D NEW E L L R O A D NEW E L L R O A D V E SEAL E A V E N U E JORDAN PLACE LOIS LAN E LOIS LANE EMBARCA D E R O R O A D WALTER HAYS DRIVE WALTER HA Y S D R I V E SEAL E A V E N U E LO I S L A N E NORTH A M P T O N D R I V E WA L T E R H A Y S D R I V E BARB A R A D R I V E LOUIS R O A D HE A T H E R L A N E EMBARCADE R O R O A D PRIMROSE W A Y PR I M R O S E W A Y IRIS WAY IRIS WAY MOR T O N S T R E E T PRI M R O S E W A Y LOUIS R O A D BELL V I E W D R I V E IRIS WAY MORT O N S T R E E T EMBARCAD E R O R O A D IR I S W A Y NORT H C A L I F O R N I A A V E N U E GR E E R R O A D KING S L E Y A V E N U E TASSO S T R E E T MELV I L L E A V E N U E COWP E R S T R E E T WAVER L E Y S T R E E T WEBST E R S T R E E T LINC O L N A V E N U E KELL O G G A V E N U E KING S L E Y A V E N U E COWP E R S T R E E T BYRO N S T R E E T MELV I L L E A V E N U E WEBS T E R S T R E E T ADD I S O N A V E N U E MIDDL E F I E L D R O A D COWP E R S T R E E T LINC O L N A V E N U E BYRON S T R E E T KING S L E Y A V E N U E WEBST E R S T R E E T MELV I L L E A V E N U E MIDDLE F I E L D R O A D ADDIS O N A V E N U E COWP E R S T R E E T BYRO N S T R E E T WEBST E R S T R E E T LINC O L N A V E N U E FULT O N S T R E E T KING S L E Y A V E N U E PARKINSON AVENUECHAN N I N G A V E N U E M TE OREG O N E X P R E S S W A Y GREER R O A D OREG O N A V E N U E AMAR I L L O A V E N U E EL CA J O N W A Y BURN H A M W A Y ELMD A L E P L A C E GREE R R O A D EL CA J O N W A Y MORE N O A V E N U E TANLA N D D R I V E BLAIR C O U R T BLAIR C O U R T ELSIN O R E D R I V E INDIAN D R I V E CAR D I N A L W A Y OREG O N E X P R E S S W A Y ORE G O N A V E N U E ELSINO R E C O U R T GREE R R O A D ARRO W H E A D W A Y TANLA N D D R I V E TANL A N D D R I V E AZTEC W A Y SANTA A N A S T R E E T GREE R R O A D CHABO T T E R R A C E SANTA C A T A L I N A S T R E E T CHAN N I N G A V E N U E HOME R A V E N U E WAVE R L E Y S T R E E T COWP E R S T R E E T FOR E S T A V E N U E HAMI L T O N A V E N U E EMER S O N S T R E E T BRYAN T S T R E E T LANE 3 9 RAMO N A S T R E E T DOWN I N G L A N E ADDI S O N A V E N U E CHAN N I N G A V E N U E COWP E R S T R E E T WAVER L E Y S T R E E T FORE S T A V E N U E BRYAN T S T R E E T HOME R A V E N U E LANE D W E S T KIPLIN G S T R E E T RAMON A S T R E E T SCOTT S T R E E T ADDI S O N A V E N U E LANE D E A S T WAVER L E Y S T R E E T BRYA N T S T R E E T WEBST E R S T R E E T HOM E R A V E N U E COWP E R S T R E E T CHAN N I N G A V E N U E LANE 5 6 WELLS AVE N U E UNIV E R S I T Y A V E N U E ALMA S T R E E T EMERS O N S T R E E T LANE 1 2 W E S T HIGH S T R E E T RAMO N A S T R E E T HAMI L T O N A V E N U E LANE 6 E A S T FORE S T A V E N U E EMER S O N S T R E E T ALMA S T R E E T LANE 1 1 W E S T LANE 7 W E S T HIGH S T R E E T RAMON A S T R E E T FORE S T A V E N U E LANE 7 E A S T HOM E R A V E N U E ALMA S T R E E T BRYAN T S T R E E T EMER S O N S T R E E T LANE 8 W E S T RAMON A S T R E E T HIGH S T R E E T FOR E S T A V E N U E HOM E R A V E N U E CHAN N I N G A V E N U E BRYA N T S T R E E T EMER S O N S T R E E T RAMON A S T R E E T COLE R I D G E A V E N U E BRYAN T S T R E E T EMERS O N S T R E E T KELL O G G A V E N U E BRYAN T S T R E E T CHU R C H I L L A V E N U E EMER S O N S T R E E T WAVE R L E Y S T R E E T BRYAN T S T R E E T EMBARCAD E R O R O A D KELL O G G A V E N U E CHUR C H I L L A V E N U E WAVER L E Y S T R E E T KING S L E Y A V E N U E EMBARCAD E R O R O A D COWPE R S T R E E T BRYA N T S T R E E T MELV I L L E A V E N U E CHUR C H I L L A V E N U E EMBARCAD E R O R O A D WHIT M A N C O U R T BRYA N T S T R E E T EMBARCADE R O R O A D KING S L E Y A V E N U E WAVER L E Y S T R E E T MELV I L L E A V E N U E TASSO S T R E E T COWP E R S T R E E T KELL O G G A V E N U E LINC O L N A V E N U E WAVER L E Y S T R E E T COLOR A D O A V E N U E ROSS R O A D MORE N O A V E N U E BRUCE D R I V E MARSH A L L D R I V E LOUIS R O A D ROSS R O A D COLOR A D O A V E N U E SYCAM O R E D R I V E FIELDI N G C T MARSH A L L D R I V E FIELD I N G D R I V E MOR E N O A V E N U E LOUIS R O A D MARS H A L L D R I V E LAWRE N C E L A N E AMA R I L L O A V E N U E MORE N O A V E N U E VAN A U K E N C I R C L E WARR E N W A Y LOUIS R O A D GREE R R O A D COLO N I A L L A N E AMA R I L L O A V E N U E COLO N I A L L A N E AGNE S W A Y CELI A D R I V E LOUIS R O A D MORE N O A V E N U E DEN N I S D R I V E R TEN N Y S O N A V E N U E WEBS T E R S T R E E T SEAL E A V E N U E COWP E R S T R E E T FULTO N S T R E E T SEAL E A V E N U E TENN Y S O N A V E N U E TASS O S T R E E T MIDDL E F I E L D R O A D WEBST E R S T R E E T FULTO N S T R E E T COWP E R S T R E E T SANT A R I T A A V E N U E GUIND A S T R E E T SEAL E A V E N U E BYRON S T R E E T MIDDL E F I E L D R O A D WASH I N G T O N A V E N U E NEWEL L R O A D SEAL E A V E N U E SANT A R I T A A V E N U E WEBS T E R S T R E E T PORT A L P L A C E NORT H A M P T O N D R I V E NEWE L L R O A D MIDDL E F I E L D R O A D BYRON S T R E E T NORT H C A L I F O R N I A A V E N U E NOR T H A M P T O N D R I V E WEST G R E E N W I C H P L A C E SOU T H A M P T O N D R I V E MORR I S D R I V E MADD U X D R I V E CLARA D R I V E SAND R A P L A C E CLARA D R I V E GREER R O A D COLOR A D O A V E N U E HIGGI N S P L A C E GREER R O A D COLOR A D O A V E N U E OTTER S O N C O U R T COLO R A D O P L A C E COLOR A D O A V E N U E SIMK I N S C O U R T ELC R I C TMTEOFF E L C R IC O WEST B A Y S H O R E R O A D BAYS H O R E F R E E W A Y BAYS H O R E F R E E W A Y EAST B A Y S H O R E R O A D AMAR I L L O A V E N U E BAU T I S T A C O U R T LOUIS R O A D PIER S C O U R T CLAR A D R I V E MOR A G A C T STOC K T O N P L A C E LOUIS R O A D CLAR A D R I V E BAYS H O R E F R E E W A Y SIER R A C O U R T EAST BAYSHORE ROAD WEST BA Y S H O R E R O A D OREGO N E X P R E S S W A Y EMBARCADERO R O A D BAY S H O R E F R E E W A Y BAYS H O R E F R E E W A Y BAYS H O R E F R E E W A Y BAYS H O R E F R E E W A Y WEST B A Y S H O R E R O A D WATSON COU R T GEN G R O A D EAS T B A Y S H O R E R O A D BAYS H O R E F R E E W A Y EAS T B A Y S H O R E R O A D FABE R P L A C E ENUE COLOR A D O A V E N U E EVIR ROSS R O A D DDOOWESOR ROS E W O O D D R I V E SEVYS O N C T MORE N O A V E N U E SYCAM O R E D R I V E MARSH A L L D R I V E MIDDL E F I E L D R O A D DDRIVE MOR E N O A V E N U E NORT H C A L I F O R N I A A V E N U E NEWE L L R O A D EAST G R E E N W I C H P L A C E BYRON S T R E E T MIDDL E F I E L D R O A D SOUT H A M P T O N D R I V E NORT H C A L I F O R N I A A V E N U E SOUTH A M P T O N D R I V E MIDDLE F I E L D R O A D GARL A N D D R I V E NORT H C A L I F O R N I A A V E N U E GARL A N D D R I V E OREG O N A V E N U E OREG O N E X P R E S S W A Y COAST ROSS R O A D LAN COAS T L A N D D R I V E GARL A N D D R I V E MARIO N A V E N U E COAS T L A N D D R I V E ELSI N O R E D R I V E OREG O N A V E N U E OREG O N E X P R E S S W A Y WARRE N W A Y OREG O N A V E N U E WASH I N G T O N A V E N U E ORE G O N E X P R E S S W A Y OREG O N A V E N U E SANT A R I T A A V E N U E TASSO S T R E E T NORT H C A L I F O R N I A A V E N U E WEBS T E R S T R E E T WAVER L E Y S T R E E T WEBST E R S T R E E T COLE R I D G E A V E N U E COWP E R S T R E E T LOW E L L A V E N U E BRYAN T S T R E E T TENN Y S O N A V E N U E WAVER L E Y S T R E E T WEBST E R S T R E E T EMBARCAD E R O R O A D COWPE R S T R E E T LOWE L L A V E N U E COLE R I D G E A V E N U E TEN N Y S O N A V E N U E WAVER L E Y S T R E E T SEAL E A V E N U E WEBST E R S T R E E T EMBARCAD E R O R O A D SEAL E A V E N U E LOW E L L A V E N U E COWP E R S T R E E T TENN Y S O N A V E N U E WEBST E R S T R E E T WAVE R L E Y S T R E E T MIDDLE F I E L D R O A D ALMA S T R E E T LOW 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ALMA S T R E E T EMER S O N S T R E E T RAMON A S T R E E T LANE 5 9 E A S T MELV I L L E A V E N U E GA L V E Z S T R E E T ARBOR E T U M R O A D EL CA M I N O R E A L M EL CA M I N O R E A L E Y D A I W C A N L O GALVEZ S T R E E T I FO T U A N D ENCINA AVE N U E EL CA M I N O R E A L EL CA M I N O R E A L VEONUTELAO WEBST E R S T R E E T LAP PAL O ALTO AVENU WAVER L E Y S T R E E T BRY A N T C O U R T HAW T H O R N E A V E N U E WAVER L E Y S T R E E T KIPLIN G S T R E E T HAWT H O R N E A V E N U E WAVER L E Y S T R E E T LANE 3 3 RUTH V E N A V E N U E PA COWP E R S T R E E T L O A L HAW T H O R N E A V E N U E T O A V TASS O S T R E E T E RUTH V E N A V E N U E NU COWPE R S T R E E T E A PAL M D R I V E ALMA S T R E E T PENIN S U L A C O R R I D O R J O I N T P O W E R S B O A R D U N I V ALMA S T R E E T E LYTT O N A V E N U E R S E I L T C EL CA M I N O R E A L R Y I C EL C A M I N O R E A L HIGH S T R E E T EMERS O N S T R E E T ALMA S T R E E T URBAN L A N E HIGH S T R E E T HAMI L T O N A V E N U E LANE 5 E A S T PAL M D R I V E PAL M D R I V E LAS U E N S T R E E T ARBOR E T U M R O A D EL CA M I N O R E A L PAL O A L T O A V E N U E EMERS O N S T R E E T HAWT H O R N E A V E N U E PAL O A L T O A V E N U E EL CA M I N O R E A L ALMA S T R E E T PALO A L T O A V E N U E HIGH S T R E E T POE S T R E E T BRYAN T S T R E E T EVER E T T A V E N U E HAWT H O R N E A V E N U E MITCH E L L L A N E PALO R O A D TOWN & CO U N T R Y S:\UTL\EngrOps\WGWEngr\CIP Projects\Gas\GMR 24B\2.0 - Design\2.5 - Drawings & Maps\Sh2 - Sheet Index Map\Vincity Map.dwg SH E E T N O . O F S H E E T S FILE: CU R R E N T S H E E T S E T P R O J E C T N U M B E R SH E E T S E T N O SH E E T S E T N O _ O F CU R R E N T S H E E T S E T P R O J E C T N A M E CITY OFPALOALTOUTILITIES SANTA 880 680 MILPITAS MATEO ALTOS STANFORD MOUNTAIN PALO ALTO 280 SAN UNIV. PARK WOODSIDE REDWOOD MENLO PARK VIEW LOS SUNNYVALE 101 CAMPBELL SANJOSE CO. CO. SANTA CRUZ SAN MATEO SANGREGORIO PESCADERO LA HONDA CUPERTINO SARATOGA CO. SANT A C L A R A C O . CO. CLARA SANTA CLARA 80 680 780 VALLEJO CONTRA COSTA CO. 4 CONCORD LAFAYETTE MARTINEZ 4 SAN PABLO HERCULESPINOLE 680 HILLPLEASANT 242 MARIN 101 MILL MADERA ANSELMOSAN LARKSPUR RAFAELSAN CORTE CO. CON T R A C O S T A C O . MAR I N C O . 580 580 580 80 80 24ALBANY BERKELEY EMERYVILLE OAKLAND CON T R A MORAGA COSTA CO. PLEASANTON ALAMEDA C O . LIVERMORE SAN BRUNO SAN LEANDRO LORENZO ALAMEDA BRISBANE SOUTH SAN 238 580 HAYWARD CONTRA C O S T A C O . SA N F R A N C I S C O C O . SAUSALITO SAN CITYMARIN SAN 280 PACIFICA CO. DALYCITY FRANCISCO COLMA SAN MATEO CO.SAN FRANCISCO CO. SAN FRANCISCO FRANCISCO VALLEY TIBURON ORINDA WALNUT CREEK PROJECT AREA FREMONT 101 SANCARLOS 92 BELMONT MATEO FOSTER CITYSAN BURLINGAME MILBRAE 880 84 NEWARK UNION CITY ATHERTON REDWOOD CITY MOSS BEACH MONTARA LINDA MAR EL GRANADA HALF MOON BAY CRUZ SANTA ALAMEDA CO. ALA M E D A C O . SAN M A T E O C O . SANTA CLARA CO. ALAMEDA CO. SCOTTS VALLEY VICINITY MAP CO. Feet 0 600 1200 GMR 24B WORK LOCATIONS: UNIVERSITY AVE TOWN & COUNTRY GENG RD LEGEND: GAS MAIN REPLACE 24B PROJECT LOCATIONS ATTACHMENT B \ 1' 11 I I I PROJECT LOCATION SCALE: 1 "=600' tl~l ·.··''···.·· .. <:/:,-· 0 . I (") ·'.i:;~;:~\]J~?. 0 O O NOT TO SCALE 0 0 0 ' 0 0 0 0 Item 6 Attachment B - GMR24B Project Locations Map Item 6: Staff Report Pg. 11 Packet Pg. 33 of 228 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Administrative Services Meeting Date: October 16, 2023 Report #:2309-2007 TITLE Adoption of a Resolution to Vacate a Public Utility Easement at 160, 162, and 164 Waverley Street. CEQA Status – Exempt under CEQA Guidelines Section 15305. RECOMMENDATION Staff recommends that the City Council adopt the attached resolution ordering the summary vacation of a public service easement for utility and incidental purposes located on the residential property at 160, 162, and 164 Waverley Street in Palo Alto, CA. DISCUSSION The City currently holds a public utility easement affecting the properties located at 160, 162, and 164 Waverley Street. The current property owner has requested this easement on the property to be vacated for the demolition of three single dwelling units for the development of four new dwellings on the property; a single-family home, a duplex, and a detached accessory dwelling unit (ADU). City staff has reviewed the vacation request and has determined that the easement to be vacated is excess and that there are no other public facilities located within the easement. Therefore, the easement may be vacated in accordance with the summary proceeding authorized in Section 8333 of the California Streets and Highways Code. FISCAL/RESOURCE IMPACT The Summary Easement Vacation Processing fee of $1,980 as set forth in the FY 2024 Municipal Fee Schedule has been paid by the property owner. POLICY IMPLICATIONS The recommendation does not represent any change to City policies. Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 1 Packet Pg. 34 of 228 ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 7 Item 7 Staff Report Item 7: Staff Report Pg. 2 Packet Pg. 35 of 228 Streets & Highways Code Section 8336 at the request of and when recorded return to: City of Palo Alto Real Estate Division 250 Hamilton Avenue SPACE ABOVE LINE FOR RECORDER’S USE APN: 120-12-011 Address: 160, 162, and 164 Waverley Street, Palo Alto, CA 94301 SUMMARY VACATION RESOLUTION NO. _____ RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO SUMMARILY VACATING A PUBLIC SERVICE EASEMENT AT 160, 162, and 164 Waverley Street, PALO ALTO, CA WHEREAS, Section 8333 of the Streets and Highways Code authorizes the City Council to summarily vacate a public service easement in any of the following cases: (a) the easement has not been used for the purpose for which it was dedicated or acquired for five consecutive years immediately preceding the proposed vacation, (b) the date of dedication or acquisition is less than five years, and more than one year, immediately preceding the proposed vacation, and the easement was not used continuously since that date, (c) the easement has been superseded by relocation, or determined to be excess by the easement holder, and there are no other public facilities located within the easement; and WHEREAS, the City of Palo Alto accepted and recorded a Deed on the property located at 160, 162, and 164 Waverley, Palo Alto, CA 94301, for public utility purposes, dated April 24, 1959, in Book 4400, page 552 of Santa Clara County Office Records; and WHEREAS, the City of Palo Alto Utilities Department has evaluated and determined that the public utilities easement located on the property at160, 162, and 164 Waverley Street Palo Alto, CA 94301 is excess.; and WHEREAS, the City Council of the City of Palo Alto intends to summarily vacate the public service easement as more particularly described in Exhibit “A” attached to this resolution and depicted on the plat map attached as Exhibit “B” to this resolution; and NOW, THEREFORE, the City Council does hereby RESOLVE as follows: SECTION 1. This vacation is made under the authority of California Streets and Highways Code Chapter 4 of part 3 of Division 9, commencing at Section 8333 et. seq. Item 7 Attachment A - Resolution to Summarily Vacate a Public Service Easement for 160, 162, and 164 Waverley Street Item 7: Staff Report Pg. 3 Packet Pg. 36 of 228 1. The public service easement described herein on Exhibit “A” and depicted on the plat map attached as Exhibit “B” is excess; and 2. There are no other public facilities located within the easement. SECTION 2. Based upon the findings made in Section 1 of this Resolution and the provisions of Section 8333 of the Streets and Highways Code, the City Council does hereby order that the public service easement as shown on the said Exhibits “A” and “B” shall be summarily vacated. SECTION 3. The City Clerk, acting by and through the Real Property Manager, is hereby directed to record at the Santa Clara County Clerk-Recorder’s Office a certified copy of this Resolution, including the Map. SECTION 4. The public service easement for utilities and incidental purposes described in Exhibit “A” and depicted in the plat map attached as Exhibit “B” will no longer constitute a public service easement from and after the date of recordation of the documents identified in Section 3 of this Resolution. SECTION 5. The Council finds that the summary vacation of the public service easement is exempt from review under the California Environmental Act pursuant to Title 14 California Code of Regulations section 15305 as a minor alteration in land use limitations. Item 7 Attachment A - Resolution to Summarily Vacate a Public Service Easement for 160, 162, and 164 Waverley Street Item 7: Staff Report Pg. 4 Packet Pg. 37 of 228 Item 7 Attachment A - Resolution to Summarily Vacate a Public Service Easement for 160, 162, and 164 Waverley Street Item 7: Staff Report Pg. 5 Packet Pg. 38 of 228 Exhibit B Item 7 Attachment A - Resolution to Summarily Vacate a Public Service Easement for 160, 162, and 164 Waverley Street Item 7: Staff Report Pg. 6 Packet Pg. 39 of 228 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: October 16, 2023 Report #:2308-1935 TITLE Update on the Memorandum of Understanding and Funding Agreement with Peninsula Corridor Joint Powers Board (JPB/Caltrain) and the City of Menlo Park Regarding Emergency Repairs to the North Bank of San Francisquito Creek and Approval of a Fiscal Year 2024 Budget Amendment in the Capital Improvement Fund; CEQA exempt per Reg. 15269. RECOMMENDATION This report provides Council a progress update on the Memorandum of Understanding (MOU) and funding agreement between the City of Palo Alto, Peninsula Corridor Joint Powers Board (JPB/Caltrain) and the City of Menlo Park regarding emergency repairs to the north bank of San Francisquito Creek. Staff recommends that Council amend the Fiscal Year 2024 Budget Appropriation for the Capital Improvement Fund by (requires 2/3 approval): 1. Increasing the City Bridge Improvements Project (PE-20001) appropriation by $1,100,000; 2. Decreasing the Capital Improvement Fund Administration project (AS-10000) appropriation by $30,000; and 3. Decreasing the Capital Improvement Fund Infrastructure Reserve by $1,070,000. BACKGROUND In early January 2023, after a week of heavy rain, JPB/Caltrain staff inspected the rail bridge over San Francisquito Creek at Alma Street and discovered that storms had eroded the soil on the north creek bank supporting the foundation of the rail bridge, owned by JPB/Caltrain. On March 29, 2023, JPB/Caltrain declared an emergency, and the Caltrain board authorized staff to enter into contracts for the purpose of implementing 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 Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 1 Packet Pg. 40 of 228 for 50 percent of maintenance costs under a 1996 maintenance agreement1. 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 integrity 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. 2, Council authorized the City Manager to negotiate and execute a Memorandum of Understanding (MOU) and funding agreement with JPB/Caltrain and the City of Menlo Park for emergency repairs to the north bank of San Francisquito Creek. This staff report provides an update on the MOU and funding agreement and recommends that Council approve a budget amendment in the Capital Improvement Fund to appropriate funds to pay for the City’s share to implement creek bank repairs. ANALYSIS 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 2 City Council Staff Report, June 19, 2023, Agenda Item #14 Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 2 Packet Pg. 41 of 228 The MOU establishes a cost sharing methodology and funding agreement between JPB/Caltrain and cities of Palo Alto and Menlo Park as follows: Engineer’s estimate Total cost $6,471,067 3. FISCAL/RESOURCE IMPACT 3 Joint Powers Board Finance Committee Meeting 10/5/2023 Item #6.b. Renew Findings of an Emergency Regarding the North Channel Embankment of the San Francisquito Creek Bridge https://www.caltrain.com/meetings/2023/10/caltrain-board-meeting Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 3 Packet Pg. 42 of 228 $1,070,000 from the Capital Improvement Fund Infrastructure Reserve to the City Bridge Improvements Project (PE-20001) for the City’s cost share and shifting $30,000 from the Capital Improvement Fund Administration project (AS-10000) to PE-20001 for estimated staff salaries and benefits to monitor construction activities in the right-of-way and respond to contractor and public inquiries. STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 8 Item 8 Staff Report Item 8: Staff Report Pg. 4 Packet Pg. 43 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 #4233 MEMORANDUM OF UNDERSTANDING AND FUNDING AGREEMENT REGARDING EMERGENCY REPAIRS TO THE NORTH BANK OF THE SAN FRANCISQUITO CREEK WITHIN THE CALTRAIN RIGHT OF WAY AND THE .CITIES OF MENLO PARK AND PALO ALTO This Memorandum of Understanding and Funding Agreement {the "AGREEMENT") is entered into this 15th day of August , 2023, by and between the Peninsula Corridor Joint Powers Board, a joint exercises of power agency (the "JPB") organized and existing under the laws of the state of California, and the City of Palo Alto, a municipal corporation, and the City of Menlo Park, a municipal corporation, {collectively, the "CITIES" and collectively with JPB, the "PARTIES"). RECITALS A.The JPB owns and maintains the San Francisquito Creek Rail Bridge, which is located in Palo ltꢁ betweeꢃ Cꢁꢃtrꢁl Pꢁints Alma (29.98) and Mayfield (33.50). It was built in 1902 as a two San Francisquito Creek. B. C. The City of Palo Alto owns the portion of the creek within its boundaries, and the City of Menlo k owns the portion of the creekwithin its boundaries. In early January 2023, after a week of heavy rain, Caltrain Engineering staff inspected the Bridge and discovered that storms had eroded the soil on the north creek bank suppoꢀing the dation of the Bridge. D.On March 29, 2023, pursuant to its authority under Public Contract Code sections 22050 and 1102, theJP B declared that an emergencyexists at the north creek bank at the San Francisquito Creek Rail Bridge, due to erosion, which threatens the integrity of the structure supporting the B's track, and authorized staff to enter into contracts for the purpose of conducting . E. F. The CITIES identified erosion on the same nꢁrthern creek bank suppꢁꢂiꢃg the Alma Street Bicycle Bridge (the "Alma Street Bridge"), which was constructed and is owned by the CITIES. On April 7, 2023, the CITIES procured a structural assessment of the Alma Street Bridge which d that the north creek bank be restored in conjunction with JPB's bank rther erosion that could threaten the stability of the Alma Street dge. G. H. I. In the space between the San Francisquito Creek Rail Bridge and the Alma Street Bridge, the CITIES have also identified erosion on the north creek bank which is undermining an existing storm drain outfall {the ' Drain Outfall"), which is owned by the City of Menlo Park.1 The PARTIES have agreed tojointly conduct repairs to the northern creek bank supporting the Creek Rail Bridge, the Alma Street Bridge, and the Drain Outfall to maintain ty of all three of these assets, as described in Exhibit A, Scope of Work. The PARTIES have agreed that the JPB will undertake and oversee the emergency repairs oh behalf of the JPB and the CITIES and that the CITIES willreimburse the JPB for their respective shares of the costs that JPB incuꢄ in conducting the repairs. None of the PARTIES intends to use federal funds tq pay for the repairs. 1 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 5 Packet Pg. 44 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 6 Packet Pg. 45 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 7 Packet Pg. 46 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 8 Packet Pg. 47 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 9 Packet Pg. 48 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 10 Packet Pg. 49 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 11 Packet Pg. 50 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 12 Packet Pg. 51 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 13 Packet Pg. 52 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 9/6/2023 9/11/2023 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 14 Packet Pg. 53 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 15 Packet Pg. 54 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 16 Packet Pg. 55 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 17 Packet Pg. 56 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 18 Packet Pg. 57 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 19 Packet Pg. 58 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 20 Packet Pg. 59 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 21 Packet Pg. 60 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 22 Packet Pg. 61 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 23 Packet Pg. 62 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 24 Packet Pg. 63 of 228 DocuSign Envelope ID: 4B29CC91-91ED-4A51-B852-0DE88FCAB541 Item 8 Attachment A - Memorandum of Understanding and Funding Agreement Item 8: Staff Report Pg. 25 Packet Pg. 64 of 228 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: October 16, 2023 Report #:2306-1630 TITLE Approval of Construction Contract with Golden Bay Construction, Inc. in the Amount of $1,247,069 and Authorization for the City Manager to Negotiate and Execute Change Orders up to a Not-to-Exceed Amount of $311,767 for the Capacity Upgrades along East Meadow Drive (SD-22000) and Connection to Adobe Creek Pump Station from East Meadow Circle (SD-26000), Storm Drainage System Replacement and Rehabilitation (SD-06101), and Sidewalk Repairs (PO- 89003); CEQA status – exempt under CEQA Guidelines Section 15301(c). RECOMMENDATION Staff recommends that Council: 1. Approve and authorize the City Manager or their designee to execute construction contract C24188585 with Golden Bay Construction in the amount of $1,247,069 for the East Meadow Drive System Upgrades project (SD-22000), East Meadow Circle Connection to Adobe Creek Pump Station project (SD-26000), Storm Drainage System Replacement and Rehabilitation project (SD-06101), Green Stormwater Infrastructure (SD-22001), and Sidewalk Repairs (PO-89003); and 2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with Golden Bay Construction for related, additional, and unforeseen work that may develop during the project, the total value of which shall not exceed $311,767. BACKGROUND The 2015 Storm Drain Master Plan identified that the storm drain trunk lines upstream of the Matadero Creek pump station need to be upsized to convey a 10-year storm event. In 2017, voters approved a ballot measure to continue the Storm Water Management Fee and to implement 13 new storm drain capital improvement projects to upgrade and improve the storm drain system in Palo Alto. In 2018, the completion of the Matadero Creek Storm Water Pump Station project (SD-13003) was the first step towards increasing the capacity of the station to convey flows for large storm events. The Loma Verde Avenue Trunk Line Improvements project (SD-19000), completed in 2020, is the first of the 13 projects completed. Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 1 Packet Pg. 65 of 228 This contract implements two Storm Drain Master Plan Capital Improvement Program (CIP) projects, the East Meadow Drive System Upgrades project (SD-22000) and East Meadow Circle Connection to Adobe Creek Pump Station project (SD-26000). The Storm Drain Master Plan identifies both as high-priority improvements to the City’s storm drain system. Both SD-22000 and SD-26000 include several utility relocations due to conflicts with existing utilities as a result of upsizing the diameter of the storm drain pipe and addition of new storm drain pipe. SD-22000 is located on East Meadow Drive where the existing 36-inch pipe is undersized and lacks the capacity to convey the runoff from a 10-year storm to the Adobe Pump Station. This project will upsize the existing pipe to a 48-inch pipe. SD-26000 is located on East Meadow Circle and will redirect flows from Barron Creek to Adobe Creek. East Meadow Circle tends to flood during storm events. The runoff within the pipe drains by gravity through a flap-gate into Barron Creek. Flooding occurs when flows within Barron Creek exceed the height of the gate and the pressure created by the water in the creek prevents the gate from opening. This project creates a bypass to allow flows from Barron Creek to overflow to the Adobe Creek pump station. The bypass will add a new storm drain line connecting the existing manhole on East Meadow Circle to the existing manhole on East Meadow Drive. The bypass will divert storm drain runoff to Adobe Creek Pump Station where it can be pumped into Adobe Creek and ultimately the Palo Alto flood basin. Work on East Meadow Circle also provides an opportunity to incorporate Green Stormwater Infrastructure (GSI) (SD-22001) features in the planter strip area. Additional storm drain repair or replacement is associated with Storm Drainage System Replacement and Rehabilitation Project (SD-06101). This will address storm drain pipe failures that occurred during the winter 2023 storm events as well as emergency repairs. ANALYSIS Project Description Staff recommends approval of Contract No. C241885851 to implement high priority projects identified in the Storm Drain Master Plan to increase capacity and improve the storm drainage system in the City. The project limits for SD-22000 are East Meadow Drive from Adobe Creek to the intersection of East Meadow Circle. The project limits for SD-26000 are from the intersection from East Meadow Drive to 1036 East Meadow Circle, depicted on the attached Location Map (Attachment A). Pipe replacement in the streets may require additional work such as pavement restoration, striping, replacement of sidewalk, curb and gutter, and curb ramp due to the location of the work. 1 Contract No. C24188585 https://www.cityofpaloalto.org/files/assets/public/v/1/public-works/engineering- services/cip-contracts/c24188585-golden-bay-construction_cc_staff-report_10.16.2023.pdf Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 2 Packet Pg. 66 of 228 The work under this contract includes the replacement of 407 linear feet of existing 36-inch diameter pipes with 48-inch diameter pipes on East Meadow Drive. The project will also remove two storm drain manholes and replace them with two junction boxes and modify one existing manhole junction box. The work on SD-26000 includes a bio-retention planter, the addition of 526 linear feet of new 15-inch diameter pipe, replacement of 28 linear feet of 12- inch pipe, two catch basins, and five manholes. Due to utility crossing conflicts that result from installing a larger storm drain pipe, utility relocations include the removal of an abandoned sanitary sewer lateral, cutting and capping two abandoned gas services, installing offsets of existing 6-inch and 8-inch water mains, relocation of one water service, and relocating 4-inch cable lines. Go with the Flow was installed in 2018 using thermoplastic material. Storm drain lines are Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 3 Packet Pg. 67 of 228 typically installed by opening a trench in the pavement. Unfortunately, the art installation is directly above the storm drain pipe, and this will destroy a portion of the art installation. Although this installation was not intended to be permanent and the risks involved in placing the art in the crosswalk were known at the time of installation, Public Works Engineering intends to replace the art installation following completion of the storm drain repair, subject to confirmation that the Public Art program and community want it reinstalled. Bid Name / Number Capacity Upgrades along East Meadow Drive and Connection to Adobe Creek Pump Station from East Meadow Circle (SD-22000 & SD-26000) Project IFB No. 188585 https://procurement.opengov.com/portal/palo- alto-ca/projects/53534 Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 4 Packet Pg. 68 of 228 Staff reached out to the four bidders who downloaded the bid packages and asked why they did not submit a bid. One of the bidders provided a response and elaborated that the green infrastructure component made the work less appealing. That, along with their current backlog, were the reasons why they did not bid on the project. FISCAL/RESOURCE IMPACT Funding Source Contract Contingency Total Encumbrance Totals $1,247,069 $311,767 $1,558,836 Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 5 Packet Pg. 69 of 228 The additional 15% contingency requested for storm preparation and emergency repair is allocated to come from the Storm Drainage System Replacement and Rehabilitation (SD-06101) project, as the anticipated work relates most closely to the description of that project. Additionally, approximately $105,000 is available in the various project budgets for soil testing, outreach material, fees associated with GSI inspections and verification, utility relocation and street cut fees. STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS: APPROVED BY: Item 9 Item 9 Staff Report Item 9: Staff Report Pg. 6 Packet Pg. 70 of 228 Barro n C r e e k OAD FABIAN WAY NATHAN WAY EAST MEADOW CIRCLE EAST BAYSHORE ROAD FABIAN WAY CO EAST BAYSHORE BAYSHORE FREEWAY BAYSHORE FREEWAY FABIAN WAY BAYSHORE FREEWAY WEST BAYSHORE ROAD BAYSHORE FREEWAY ELWELL COURT EAST MEADOW DRIVE EAST BAYSHORE ROAD BAYSHORE FREEWAY BAYSHORE FREEWAY EAST MEADOW DRIVE QUAIL DR QUAIL DR PALOMA DR HERON WY EGRET LNPLOVER LN SANDPIPER LN MALLARD LN CURLEW LN FEATHER LN KLAMATH LN PALOMA DR TRINITY LN STANISLAUS LN TU OLU MNE LN PROJECT SITE This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. 0' 163' EAST MEADOW DRIVE AND CONNECTION TO ADOBE CREEK PUMP STATION FROM EAST MEADOW CIRCLE CITY OF PALO ALTO I NC O R P O R A TED CALIFORNIA P a l o A l t o T h e C i t y o f APRIL 1 6 1894 The City of Palo Alto assumes no responsibility for any errors. ©1989 to 2016 City of Palo Alto rhada, 2023-08-22 17:30:17 (\\cc-maps\Encompass\Admin\Meta\View.mdb) Item 9 Attachment A - Location Map Item 9: Staff Report Pg. 7 Packet Pg. 71 of 228 Capacity Upgrades along East Meadow Drive and Connection to Adobe Creek Pump Station from East Meadow Circle (SD‐22000 & SD‐26000) IFB 188585 IFB Post Date: 7/17/2023 IFB Due Date: 8/7/2023 BID FORM SUMMARY QTY UNIT UNIT PRICE BID TOTAL UNIT PRICE BID TOTAL 1 MOBILIZATION 1 LS $ 50,000.00 $ 50,000.00 $ 70,000.00 $ 70,000.00 2 PUBLIC NOTIFICATION AND POSTING 1 LS $ 2,500.00 $ 2,500.00 $ 4,000.00 $ 4,000.00 3 TRAFFIC CONTROL 1 LS $ 80,000.00 $ 80,000.00 $ 46,013.00 $ 46,013.00 4 SHEETING, SHORING AND BRACING 1 LS $ 80,000.00 $ 80,000.00 $ 9,000.00 $ 9,000.00 5 INERT SOLIDS RECYCLING WITH FABRIC 1 LS $ 8,000.00 $ 8,000.00 $ 1,000.00 $ 1,000.00 6 STRIPING 1 LS $ 5,000.00 $ 5,000.00 $ 18,860.00 $ 18,860.00 7 UNFORSEEN UTILITY ALLOWANCE 1 LS $ 20,000.00 $ 20,000.00 $ 10,000.00 $ 10,000.00 8 INSTALL 12‐INCH HDPE PIPE 28 LF $ 250.00 $ 7,000.00 $ 375.00 $ 10,500.00 9 INSTALL 15‐INCH HDPE PIPE 514 LF $ 300.00 $ 154,200.00 $ 269.00 $ 138,266.00 10 INSTALL 48‐INCH REMOVE 36‐INCH HDPE PIPE 407 LF $ 300.00 $ 122,100.00 $ 741.00 $ 301,587.00 11 VIDEO INSPECTION OF NEW STORM DRAIN PIPELINE 949 LF $ 4.00 $ 3,796.00 $ 8.00 $ 7,592.00 12 INSTALL NEW STORM DRAIN CATCH BASIN TYPE A 2 EA $ 4,500.00 $ 9,000.00 $ 5,500.00 $ 11,000.00 13 INSTALL STANDARD STORM DRAIN MANHOLE 4 EA $ 10,000.00 $ 40,000.00 $ 11,000.00 $ 44,000.00 14 INSTALL STORM DRAIN SUMP MANHOLE 1 EA $ 10,000.00 $ 10,000.00 $ 15,000.00 $ 15,000.00 15 INSTALL NEW STORM DRAIN MANHOLE JUNCTION BOX 2 EA $ 20,000.00 $ 40,000.00 $ 22,000.00 $ 44,000.00 16 MODIFY EXISTING STORM DRAIN MANHOLE JUNCTION BOX 1 $ 15,000.00 $ 15,000.00 $ 18,000.00 $ 18,000.00 17 6‐INCH TO 8‐INCH WATER MAIN BACKFILL 2 EA $ 5,000.00 $ 10,000.00 $ 4,500.00 $ 9,000.00 18 WATER SERVICE BACKFILL 1 EA $ 2,000.00 $ 2,000.00 $ 3,100.00 $ 3,100.00 19 ABANDONED SEWER LATERAL BACKFILL 1 EA $ 2,000.00 $ 2,000.00 $ 3,000.00 $ 3,000.00 20 GAS SERVICE BACKFILL 2 EA $ 2,000.00 $ 4,000.00 $ 3,500.00 $ 7,000.00 21 4‐INCH FIBER OPTICS CABLE BACKFILL 1 EA $ 5,000.00 $ 5,000.00 $ 3,100.00 $ 3,100.00 22 2‐INCH ASPHALT CONCRETE OVERLAY 362 TON $ 150.00 $ 54,300.00 $ 306.00 $ 110,772.00 23 REMOVE AND REPLACE TYPE A CURB AND GUTTER 20 LF $ 50.00 $ 1,000.00 $ 133.00 $ 2,660.00 24 DELETED 25 DELETED 26 DELETED 27 REMOVE SOIL FOR BIORETENTION 63 CY $ 65.00 $ 4,095.00 $ 165.00 $ 10,395.00 28 REMOVE EXISTING CURB AND GUTTER 100 LF $ 28.00 $ 2,800.00 29 TREE REMOVAL INCLUDING STUMP AND ROOTS 4 EA $ 300.00 $ 1,200.00 $ 1,600.00 $ 6,400.00 30 REMOVE EXISTING SIGN POST 1 EA $ 600.00 $ 600.00 $ 500.00 $ 500.00 31 EXISTING IRRIGATION REMOVAL 1 EA $ 850.00 $ 850.00 $ 3,698.00 $ 3,698.00 32 C3 SOIL 48 CY $ 385.00 $ 18,480.00 $ 200.00 $ 9,600.00 33 ROCK FOR BIORETENTION AREA 16 CY $ 250.00 $ 4,000.00 $ 264.00 $ 4,224.00 34 RUBBER LINER 1747 SF $ 28.00 $ 48,916.00 $ 2.50 $ 4,367.50 35 4‐INCH PERFORATED PIPE 125 LF $ 35.00 $ 4,375.00 $ 75.00 $ 9,375.00 36 6‐INCH PVC PIPE 5 LF $ 50.00 $ 250.00 $ 300.00 $ 1,500.00 37 REMOVE CURB FOR CURB CUTS 100 LF $ 125.00 $ 12,500.00 $ 127.00 $ 12,700.00 38 SPLASH PADS 2 EA $ 200.00 $ 400.00 $ 993.00 $ 1,986.00 39 OVERFLOW STRUCTURE 1 EA $ 1,800.00 $ 1,800.00 $ 2,500.00 $ 2,500.00 40 PLANTING 1 LS $ 10,000.00 $ 10,000.00 $ 10,031.00 $ 10,031.00 41 IRRIGATION 1 LS $ 12,000.00 $ 12,000.00 $ 6,791.00 $ 6,791.00 Base Bid Total: $ 844,362.00 $ 974,317.50 10% Contingency: $ 84,437.00 $ 97,432.00 Total Base Bid: $ 928,799.00 $ 1,071,749.50 Over Engineer's Estimate: 15% BID ALTERNATE QTY UNIT UNIT PRICE BID TOTAL UNIT PRICE BID TOTAL Alt1 MOBILIZATION 1 LS $ 2,000.00 $ 2,000.00 $ 8,000.00 $ 8,000.00 Alt2 PUBLIC NOTIFICATION AND POSTING 1 LS $ 50,000.00 $ 50,000.00 $ 500.00 $ 500.00 Alt3 TRAFFIC CONTROL 1 LS $ 5,000.00 $ 5,000.00 $ 4,693.00 $ 4,693.00 Alt4 SHEETING, SHORING AND BRACING 1 LS $ 5,000.00 $ 5,000.00 $ 500.00 $ 500.00 Alt5 STRIPING 1 LS $ 2,000.00 $ 2,000.00 $ 21,390.00 $ 21,390.00 Alt6 INSTALL 10‐INCH HDPE 261 LF $ 200.00 $ 52,200.00 $ 245.00 $ 63,945.00 Alt7 INSTALL 12‐INCH HDPE 50 LF $ 250.00 $ 12,500.00 $ 385.00 $ 19,250.00 Alt8 VIDEO INSPECTION OF NEW STORM DRAIN PIPELINE 311 LF $ 4.00 $ 1,244.00 $ 8.00 $ 2,488.00 Alt9 REMOVE AND REPLACE EXISTING CB 3 EACH $ 5,000.00 $ 15,000.00 $ 6,200.00 $ 18,600.00 Alt10 INSTALL STANDARD STORM DRAIN MANHOLE 2 EACH $ 10,000.00 $ 20,000.00 $ 11,000.00 $ 22,000.00 Alt11 REMOVE AND REPLACE TYPE A C&G 84 LF $ 50.00 $ 4,200.00 $ 166.00 $ 13,944.00 Alt12 REMOVE AND REPLACE CURB TRANSITION 6‐INCH TO 8‐INCH 102 LF $ 50.00 $ 5,100.00 $ 86.00 $ 8,772.00 Alt13 REMOVE AND REPLACE CONCRETE SIDEWALK 814 SF $ 18.00 $ 14,652.00 $ 34.00 $ 27,676.00 Alt14 REMOVE AND REPLACE CURB RAMP 1 EACH $ 5,000.00 $ 5,000.00 $ 12,287.00 $ 12,287.00 Alt15 2‐INGH ASPHALT CONCRETE OVERLAY 44 TON $ 150.00 $ 6,600.00 $ 815.00 $ 35,860.00 Alt16 MISCELLANEOUS STORM DRAIN IMPROVEMENTS 1 LS $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 Alt17 MILL EXISTING CROSSWALK 225 SF $ 2.00 $ 450.00 $ 12.65 $ 2,846.25 $ ‐ $ ‐ Bid Alternate Total: $ 210,946.00 $ 272,751.25 10% Contingency: $ 21,095.00 $ 27,276.00 Total Bid Alternate: 232,041.00$ 300,027.25$ Over Engineer's Estimate: 29% LOWEST BIDDER BID # DESCRIPTION Engineer's Estimate Golden Bay Construction LOWEST BIDDER BID # DESCRIPTION Engineer's Estimate Golden Bay Construction Item 9 Attachment B - Bid Summary Item 9: Staff Report Pg. 8 Packet Pg. 72 of 228 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Public Works Meeting Date: October 16, 2023 Report #:2308-1863 TITLE Approval of Financing Plan for a Local Salt Removal Facility at the Regional Water Quality Control Plant and Direct Staff to Secure Financing and Solicit Bids for a Construction Contract and Construction Management Services Contract as Recommended by Finance Committee. CEQA status - Project analyzed in 2019 Addendum to the 2015 Environmental Impact Report for the Palo Alto Recycled Water Project (SCH 2011062037), approved November 18, 2019. RECOMMENDATION The Finance Committee and Staff recommend that the Council: 1. Approve the Financing Plan for the Local Salt Removal Facility to be constructed at the Regional Water Quality Control Plant and authorize staff to amend the Recycled Water Agreement with the City of Mountain View; and 2. Direct staff to issue an invitation for bids and secure financing for the project financing through the Clean Water State Revolving Fund (SRF). EXECUTIVE SUMMARY The City commenced design on a salt removal facility in 2017. This report provides an updated cost estimate and financing plan for the project. Total estimated project costs are $56 million. Previously identified funding sources included $16 million from Valley Water and $12.9 million from a US Bureau of Reclamation grant. The City of Mountain View has agreed to pay for the remaining $27 million in project costs. If approved, this action will continue staff work to construct a local salt removal facility including financial and contract adjustments to continue this project. On September 19, 2023, the Finance Committee reviewed the Preliminary Finance Plan for the Advanced Water Purification System and voted unanimously to recommend Council approval. The Palo Alto Regional Water Quality Control Plant currently produces approximately 230 million gallons of recycled water per year for beneficial re-use. The majority of the recycled water customers are located in Mountain View, with some municipal uses within Palo Alto. The proposed Local Salt Removal Facility at the Regional Water Quality Control Plant will produce higher quality recycled water for existing and future customers in Mountain View and Palo Alto. Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 1 Packet Pg. 73 of 228 The existing customers have been requesting lower salinity water to reduce impacts to salt sensitive landscapes. For the past decade, Palo Alto and its partner cities have worked to reduce the amount of salt that enters the sewage treatment plant. Unfortunately, salt is extremely hard to remove at the source. In the early 2000s, the City investigated the possibility of expanding recycled water use within the City. A 2015 environmental impact report (EIR) prepared in connection with that effort identified potentially significant impacts to salt-sensitive plant species resulting from recycled water irrigation and included a salt removal facility as a mitigation measure for future recycled water expansion projects. Palo Alto’s current recycled water use is limited to existing municipal facilities, however this project benefits Palo Alto by producing higher quality recycled water that would be suitable for broader uses in other areas within the city. The project supports Palo Alto’s Sustainability Action Plan by improving a local supply or recycled water. The Local Salt Removal Facility could potentially serve as a step toward producing potable water. This alternative is being evaluated as part of the City’s One Water planning process, which will be completed in 2024. BACKGROUND The RWQCP treats wastewater from a total of six communities: Palo Alto, Mountain View, Los Altos, Los Altos Hills, Stanford, and East Palo Alto Sanitary District (Partner Agencies). The RWQCP also produces approximately 230 million gallons per year1 of tertiary-treated recycled water for beneficial reuse. Recycled water is non-potable and not used for drinking water. In the early 1990s, the recycled water program’s original objective was to reduce the effluent discharge volume and metal mass loadings to the Lower South San Francisco Bay. As the City’s potable water supply became scarcer and rates increased, the objective expanded to include reducing potable water consumption, mainly for City park irrigation. The RWQCP supplies tertiary-treated recycled water to the City of Mountain View, several City-owned facilities and parks (Greer Park and the Baylands Athletic Center), the Palo Alto Golf Course, Caltrans, and a commercial truck-fill standpipe at the RWQCP. In the early 1990s, a more stringent mass loading limit for copper was placed on the RWQCP. To meet the copper limit and to assist with impacts of the drought in the late 1980s, the City developed a 1992 Water Reclamation Master Plan and a financial plan2. Council decided to have RWQCP partners build the first phase of the recycled water system and distribute recycled water to the Palo Alto Golf Course to reduce the amount of pollutants 1 Throughout the report different units are referenced for measuring volumes of water; specifically, million gallons per day (MGD) or million gallons per year, 100 cubic feet (CCF), and acre-feet. 1 CCF is equal to 748 gallons, and 1 acre-foot is equivalent to 325,830 gallons. 2 City Council, September 2, 1993; Agenda Item #N/A, SR #464:93 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=67001 Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 2 Packet Pg. 74 of 228 discharged to the Bay. The Recycled Water System expanded when Mountain View installed a new pipeline to the Shoreline area3. Palo Alto investigated expanding recycled water to South Palo Alto and Stanford Research Park; however, two organizations, Canopy and Stanford Real Estate, voiced concerns regarding the irrigation of redwood trees and sensitive species with recycled water. The City then prepared an EIR focused on water quality issues and salinity impacts. On January 25, 2010, Council approved the Recycled Water Salinity Reduction Policy4, including a goal of reducing the recycled water salinity as measured by total dissolved solids (TDS) to under 600 parts per million (ppm). In the following years, the City and the other Partner Agencies completed several projects to reduce the infiltration of salty groundwater by repairing leaking sewer pipes. The repairs reduced the salts entering the RWQCP, but not by enough to reach the target. Palo Alto, Mountain View, and Valley Water wanted to increase the amount of recycled water used in the County and realized that reducing salts would help. In 2017, Council approved the Preliminary Conceptual Design Report for a phased Local Salt Removal Facility. The Local Salt Removal Facility would improve the recycled water quality by reducing its average concentration of TDS from 800 ppm to 450 ± 50 ppm by blending reverse osmosis product water with the existing recycled water. The highly treated water would enable the City as well as Mountain View to expand non-potable recycled water use and/or provide a first step toward small-scale direct or indirect potable reuse in the City. In December 2019, the City, Mountain View, and Valley Water signed an Agreement to Advance Resilient Water Reuse Programs in Santa Clara County5. The Agreement included funding of $16 million from Valley Water that could be put towards finalizing the design and construction of the Local Salt Removal Facility. In March 2021, the City hired Black & Veatch to design the Local Salt Removal Facility, which included updating cost estimates at each stage of design56. An update on the Local Salt Removal Facility design including updated cost estimates and an update on the City’s collaboration efforts on Valley Water’s Regional Purified Water Project 3 City Council, June 18, 2007; Agenda Item #9, SR #243.07 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=68833 4 City Council, January 25, 2010; Agenda Item #9, SR #111:10, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2010/cmr-111- 5 City Council, November 18, 2019; Agenda Item #17, SR #10627, https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2019/id-10627- mini-packet-11182019.pdf?t=60382.02 6 City Council, March 3, 2021; Agenda Item #3, SR #11782 https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2021/id- 11782.pdf Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 3 Packet Pg. 75 of 228 were presented to Council at a September 12, 2022 study session7. Due to increases in construction prices as well as refinement of design elements, the cost estimate of the Local Salt Removal Facility at the detailed design ($56 million) was significantly higher than that of the preliminary design in 2017 ($22 million). Staff has worked to mitigate these increases by seeking out grant opportunities as well as considering alternative bidding options, pre-selection of equipment where possible, and optimization of permeate storage tank. Staff committed at the September 12, 2022 study session to prepare a Preliminary Finance Plan (Attachment A) to describe the costs associated with the Local Salt Removal Facility, the various funding sources available, and the fiscal impacts to the City. This project benefits Palo Alto in a number of ways. It will provide higher quality recycled water for the Golf Course and Greer Park, reduce conversion of marsh near the RWQCP outfall, and reduce discharge to the Bay. The project also furthers our collaborative efforts with treatment plant partner agencies and sets up potential for future recycled water customers within Palo Alto. ANALYSIS Staff worked with an engineering consultant, Woodard & Curran, to produce the Preliminary Finance Plan summarized herein (Attachment A). The incorporated assumptions regarding estimated construction costs, construction schedules, and facility operations are based on the Black & Veatch 90 percent design contract documents from October 2022. The most recent estimated Local Salt Removal Facility capital cost is $56,302,667 and includes Phase 1 design, construction, change order contingency, construction cost escalation, program management, and construction management. Total project cost for Phase 1 assumes a facility capacity of 1.125 million gallons per day of total reverse osmosis permeate with equipment sized, spaced, and configured for a potential Phase 2 expansion to 2.25 million gallons per day of total reverse osmosis permeate. Once the Finance Committee and City Council provide direction regarding this project, staff will work to prepare an updated cost estimate based on the 100% design documents and amend the 2005 agreement between Palo Alto and Mountain View for Recycled Water to reflect the parties’ respective obligations regarding the new facility. Funding for the Local Salt Removal Facility is projected to come from several sources. Prior to allocation of the $56 million total project cost for the Preliminary Finance Plan, external funding sources were subtracted from the total to reduce the overall cost to each agency. External funding sources include the $16 million from the 2019 Agreement with Valley Water and a $12,867,875 US Bureau of Reclamation grant, leaving a remaining funding requirement of $27,434,792 (Table 1) which will be covered by Mountain View. Palo Alto currently has no plans to expand its existing recycled water system and current customers are mainly municipal users, 7 City Council, September 12, 2022; Agenda Item #3, SR #14650 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=82012 Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 4 Packet Pg. 76 of 228 therefore, Palo Alto does not have a customer base requesting this higher quality water. Palo Alto and Mountain View staff agreed that Mountain View would pay the remainder of the capital costs associated with this project. Mountain View staff recommended this project and Mountain View’s City Council approved it on June 27, 20238. If approved for construction by Palo Alto, an amendment to the existing Agreement 9 with Mountain View will be brought to Council at a later date to memorialize the capital cost contributions for the project. Table 1: Summary of Project Capital Costs and Available External Funding (based on 90% design contract documents) Amount Capital Cost Estimate for Local Salt Removal Facility $56,302,667 Valley Water Funding -$16,000,000 US Bureau of Reclamation Grant -$12,867,875 Remaining Capital Cost to Be Paid By Mountain View $27,434,792 Estimated Debt Service Costs The remaining capital costs allocated to Mountain View ($27 million) will be partially debt financed through the SRF program. Financing terms for this loan assume a 30-year repayment term at an estimated interest rate of 3.0%. Under these terms, the annual debt service payment is $1,436,000 and is to be allocated to Mountain View. Based on Council recommendation, staff will move forward with formalizing this loan in Fiscal Year 2024. Interest rates are subject to change; any delay in formalizing the loan with the state could potentially increase the total cost of the loan. Mountain View may elect to pay a portion of the capital cost initially rather than using the SRF for the full remaining capital cost. These details will be finalized in an amendment to the Recycled Water Agreement between Palo Alto and Mountain View. Operation & Maintenance Cost Allocation There will be new O&M expenses following the Local Salt Removal Facility construction completion. Black & Veatch prepared O&M cost estimates based on the projected operating expenses for several production rates. O&M cost will vary year by year depending on the actual demand by the users. Under the lowest cost O&M estimate, Palo Alto would be responsible for 8 City of Mountain View Council, June 27, 2023: Agenda Item #4.11, SR # EF-LA/LL/1/CAM 703-06-27-23CR 202873 https://mountainview.legistar.com/LegislationDetail.aspx?ID=6269443&GUID=FC0B7945-2797-4CE8-A439- 135187236514&Options=&Search= 9 City Council, August 28, 2017; Agenda Item #4, SR #8312 https://recordsportal.paloalto.gov/Weblink/DocView.aspx?id=78097 Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 5 Packet Pg. 77 of 228 annual operating costs proportional to its use of the water, ranging from $188,000 for the first full year of operation up to $230,400 at year 1010. FISCAL/RESOURCE IMPACT 11. The development of a water plan will evaluate alternative water supplies, define existing and future uncertainties and supply risks, and identify community needs and priorities. The One Water Plan will serve as a long-term guide to better prepare for future uncertainties like multi-year drought and climate change. The Local Salt Removal Facility could be a component of several of the supply options being evaluated. STAKEHOLDER ENGAGEMENT 10 Prior to the first year of operation there is a 6-month period with half the annual cost referenced in Table 5 in Attachment A: Preliminary Finance Plan for the Advanced Water Purification System – Phase 1. 11 City Council, September 27, 2022; Agenda Item #10, SR #14606 Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 6 Packet Pg. 78 of 228 Removal Facility. Previous public meetings related to options to reduce salinity in recycled water were also held. ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 10 Item 10 Staff Report Item 10: Staff Report Pg. 7 Packet Pg. 79 of 228 101 Montgomery Street Suite 1850 San Francisco CA 94104 www.woodardcurran.com T 800.426.4262 T 415.321.3400 MEMORANDUM TO: Diego Martinez Garcia, City of Palo Alto CC: Karin North, City of Palo Alto Lisa Au, City of Mountain View FROM: Alex Handlers, Bartle Wells Associates Ethan Wilson, Woodard & Curran Greg Sands, Woodard & Curran REVIEWED BY: Carrie Del Boccio, Woodard & Curran Taylor Lynn, Woodard & Curran DATE: July 27, 2023 RE: Preliminary Finance Plan for the Advanced Water Purification System Phase 1 Regional Water Quality Control Plant, City of Palo Alto Contents 1. INTRODUCTION ............................................................................................................. 2 2. BACKGROUND ................................................................................................................ 3 2.1 Capital Project Costs .................................................................................................................. 3 2.2 Operating and Maintenance Expenses ............................................................................... 3 2.3 Sources of Funding ..................................................................................................................... 4 2.4 Projected Water Supply ............................................................................................................ 4 3. CAPITAL COST ALLOCATION ........................................................................................ 5 3.1 Capital Cost Allocation to Palo Alto ................................................................................... 5 3.2 Capital Cost Allocation to Mountain View ....................................................................... 5 3.2.1 Anticipated Funding Contributions ........................................................................ 5 3.2.2 Estimated Debt Service Costs ................................................................................... 5 4. OPERATING & MAINTENANCE COST ALLOCATION ................................................... 6 4.1 Operating & Maintenance Charge or Fee Schedule .................................................... 6 4.2 Palo Alto Projected Use & AWPS Operating Expenses ............................................... 8 4.3 Mountain View Projected Use & AWPS Operating Expenses .................................. 8 5. SUMMARY ...................................................................................................................... 9 5.1 Total Costs (Scenario A) ........................................................................................................... 9 5.2 Total Costs (Alternative Scenario A) .................................................................................12 5.3 Total Costs (Scenario B) .........................................................................................................15 5.4 Other Considerations .............................................................................................................18 6. ATTACHMENTS ............................................................................................................ 19 Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 8 Packet Pg. 80 of 228 City of Palo Alto (0038014.03) 2 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 7. REFERENCES ................................................................................................................. 20 1. INTRODUCTION The City of Palo Alto owns and operates the Regional Water Quality Control Plant (RWQCP, Plant), which treats wastewater from six partner communities. The RWQCP produces a filtered and disinfected secondary effluent. The majority of the effluent is discharged to the San Francisco Bay and a portion of the effluent is further treated to produce disinfected tertiary recycled water (Title 22 unrestricted non-potable uses, “existing recycled water”). To improve the recycled water quality from the RWQCP, the City of Palo and the City of Mountain View, supported by the Santa Clara Valley Water District (Valley Water), are planning to construct a local salt removal facility, known as the Advanced Water Purification System (AWPS). The AWPS will improve the recycled water quality by reducing its average concentration of total dissolved solids (TDS) from 810 milligrams per liter (mg/L) to 450 ± 50 mg/L by blending of reverse osmosis permeate (ROP) with the existing recycled water to produce enhanced recycled water with a lower salt content. The City of Palo Alto has contracted with Black & Veatch to design a phased implementation of the AWPS. Phase 1 construction would create a 1.125 million gallons per day (MGD) capacity facility with equipment sized, spaced, and configured for a future capacity expansion, known as Phase 2. Phase 2 construction would add equipment to double the capacity (double the ROP output), for a total AWPS production of 2.25 MGD. The blending station that creates the enhanced recycled water was designed for a maximum flow of 2.55 MGD Phase 1 and 5.1 MGD Phase 2. Woodard & Curran (W&C) was directed by the City of Palo Alto to develop a preliminary financing plan (PFP, task) for the AWPS, Phase 1 under the existing Program Management contract between the City of Palo Alto and W&C. W&C subcontracted with Bartle Wells Associates to contribute public finance expertise to the PFP. The development of the PFP included several workshop sessions with the City of Palo Alto, the City of Mountain View, and a combination of both Cities to present findings and receive input. This plan details the relevant components of the PFP for the Cities’ review and comment. The PFP is based upon the best available data and forecasts available. The AWPS assumptions regarding estimated construction costs, construction schedules, and facility operations are based on the AWPS consulting engineer’s 90% design milestone deliverables. Future enhanced recycled water demand forecasts are based upon the individual forecasts provided by each City. The City of Mountain View has an existing demand for enhanced recycled water1 and has estimated additional demand based upon assumed development. The City of Palo Alto has two potential sources of enhanced recycled water demand: the Phase 3 expansion of the Recycled Water System (an expansion to the Stanford Research Center) or a direct potable water reuse system. Palo Alto’s existing recycled water demand is 0.4 MGD. A key basis of this PFP is Palo Alto’s Phase 3 expansion, creating a total enhanced recycled water demand of 0.8 MGD (annual average) from 2031-2040 and 1.2 MGD from 2041 to 2052(“Scenario A”). A second alternative 1 There are existing entities in Mountain View that are exempt from using recycled water because of the current water quality and that would no longer be exempt if enhanced recycled water was available. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 9 Packet Pg. 81 of 228 City of Palo Alto (0038014.03) 3 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 scenario (“Alternative Scenario A”), where Palo Alto’s enhanced recycled water demand is level throughout the forecast at 0.4 MGD while Mountain View increases demand to their full 3 MGD contract amount, is provided in the Appendix 1, Tables PA-8, PA-9, and PA-10. An additional scenario (“Scenario B”), where enhanced recycled water demand is level at 0.4 MGD until the implementation of a direct potable reuse project in 20401, is provided in the Appendix 1, Tables 6B-11B. Both additional scenarios are discussed in Section 5 (Summary). 2. BACKGROUND 2.1 Capital Project Costs The most recent estimated AWPS capital cost is $56,302,667 (rounded to $56M), which includes Phase 1 construction (including the odor control project), design, change order contingency, and program & construction management. Total project costs for Phase 1 assume a 1.125 MGD capacity with equipment sized, spaced, and configured for a potential Phase 2 expansion to 2.25 MGD. For the purposes of this plan, construction of Phase 2 expansion is not considered. The estimated cost assumes an approximately 18-month construction duration from June 2023 to January 2025, with an estimated 6 month start up period and project commissioning between January 2025 and June 2025. Costs and schedule are based upon the design deliverables provided by the consulting engineer, Black and Veatch. The cost detail is included in Appendix 1, Table 1, and a summary is provided in Table 1. Table 1. Estimated Project Costs Project Component Amount ($) Construction (AWPS Phase 1) 42,997,303 Construction (Odor Control) 620,000 Design and Engineering Services 3,182,960 Change Order Contingency 4,299,730 Project Management 472,970 Construction Management 4,729,703 Total: 56,302,667 2.2 Operating and Maintenance Expenses There will be new operating & maintenance (O&M) expenses following the AWPS construction completion. Black & Veatch prepared O&M cost estimates based on the projected operating expenses for four ROP production rates (Black and Veatch, AWPS OPEX 8-15-22, 2022). The production rates are based on the design configuration of the equipment. O&M costs will vary based upon the facility’s actual production rate. Black & Veatch also confirmed with Plant staff that the AWPS could be taken offline for a prolonged period. The Plant staff is interested in taking the facility offline when recycled water demand is minimal for an extended period (i.e., 1 A direct potable reuse (DPR) project is currently being evaluated as part of Palo Alto’s “One Water Plan,” by Palo Alto’s Utilities Department and Carollo Engineers, Inc. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 10 Packet Pg. 82 of 228 City of Palo Alto (0038014.03) 4 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 a portion of the wet season). Further discussion of ROP production and associated O&M expenses are presented later in this plan, and O&M assumptions and cost estimating details are provided in Appendix 2. 2.3 Sources of Funding Funding for the AWPS is projected to come from several sources. Prior to allocation of the $56M total project cost, external funding sources are used first to reduce the overall cost. External funding sources include a $16M1 credit per agreement with Valley Water and a $12,867,875 USBR grant2, leaving a remaining funding requirement of $27,434,792. Given the City of Mountain View’s significant need and anticipated demand for enhanced recycled water, Mountain View is considering the obligation of 100% of the remaining capital balance. Appendix 1, Table 2 provides a complete breakdown of the potential funding sources described in this section. If the AWPS is to be constructed, a new agreement (with terms currently unknown) between Palo Alto and Mountain View would be needed to approve the AWPS funding and construction. Figure 1 shows the assumed sources of funding. Figure 1. Sources of AWPS (Phase 1) Funding 2.4 Projected Water Supply The design capacity of the AWPS Phase 1 totals 1.125 MGD (ROP), prior to any blending with the existing recycled water production. Ultimately, ROP would be blended with the existing recycled water to create enhanced recycled water. Assuming the allocation of capacity before 1 The Valley Water credit accumulates interest, which was assumed to be marginal and not considered in the PFP. 2 To be eligible for USBR grand funds, NEPA/CEQA+ requirements need to be met. The Plant is actively coordinating with USBR to meet the minimum requirements of a future grant funding agreement. The grant amount shown does not account for potential USBR administrative fees. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 11 Packet Pg. 83 of 228 City of Palo Alto (0038014.03) 5 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 blending is split 25% / 75%, Palo Alto’s AWPS allocation is 0.281 MGD ROP and Mountain View’s AWPS allocation is 0.844 MGD ROP. The total production of enhanced recycled water varies based upon the blending ratio of existing recycled water production to AWPS ROP. Black & Veatch estimated the enhanced recycled water production in the AWPS Basis of Design Report (2021, Table 4-5) while achieving the design criteria (TDS +/- 450 mg/L). A summary table of their blending ratios is shown in Table 2. Table 2. Projected Blending Ratio Ranges to Reach Variable Enhanced Recycled Water TDS (Table 4-5, Black and Veatch 2021) It is estimated that annual enhanced recycled water use in 2026 (first full year of production) will total 1.27 MGD. At this time, Palo Alto is estimated to use 0.40 MGD of enhanced recycled water, representing approximately 31.5% of the total enhanced recycled water production. Mountain View is estimated to use 0.87 MGD of enhanced recycled water, representing approximately 68.5% of the total enhanced recycled water production. Full details of this breakdown are provided in Appendix 1, Tables 6-9. 3. CAPITAL COST ALLOCATION 3.1 Capital Cost Allocation to Palo Alto As previously discussed in Section 2.3, Palo Alto’s share of remaining capital costs for the AWPS is 0% of the approximate $56M total project cost, as Mountain View will be responsible for all debt service expenses. 3.2 Capital Cost Allocation to Mountain View As previously mentioned, Mountain View’s share of remaining capital costs for the AWPS is 100%, or $27,434,792 of the $56M total project cost. Considering external funding sources, Mountain View’s allocation reflects approximately 48.7% of total project costs. 3.2.1 Anticipated Funding Contributions Mentioned in Section 2.3, several funding contributions are anticipated for the AWPS. External funding sources include the $16M credit with Valley Water and the $12.8M USBR grant, leaving a remaining funding requirement of $27,434,792 to be allocated to Mountain View. 3.2.2 Estimated Debt Service Costs The costs allocated to Mountain View are assumed to be debt financed through the Clean Water State Revolving Fund (CWSRF) program. The loan amount includes the project cost Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 12 Packet Pg. 84 of 228 City of Palo Alto (0038014.03) 6 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 referenced in previous sections in addition to estimated capitalized interest during construction of $617,000 and estimated other costs or contingency of $100,000. Including the estimates for capitalized interest and contingency, the total loan amount is $28,151,792. Financing terms for this loan assume a 30-year repayment term at an estimated interest rate of 3.00%1. Under these terms, the annual debt service repayment totals $1,436,000. This annual debt service is then allocated 100% to Mountain View, corresponding to an annual debt service allocation of $1,436,000. It is also worth noting that the SRF program has a debt service reserve requirement; if Palo Alto is the loan guarantor it must set aside 1 year of debt service at least 90 days prior to project completion. A breakdown of the SRF loan and debt service estimates are presented in Appendix 1, Tables 3 and 4. 4. OPERATING & MAINTENANCE COST ALLOCATION 4.1 Operating & Maintenance Charge or Fee Schedule Utilizing the blending ratio ranges in the Black & Veatch’s report (Table 2) and incorporating the Plant’s preference to minimize AWPS operations during low demand months, AWPS production levels were calculated to meet forecasted enhanced recycled water demand, as best possible. The AWPS will run for the shortest periods of time possible during low demand periods to maintain system performance while minimizing operational expenses and to avoid the complexities associated with taking the system offline. The PFP does not assume any new labor expenses throughout the year and other operational costs will be minimal because of reduced operations in low demand months. Linear extrapolation from historical monthly recycled water production was used to forecast the monthly enhanced recycled water demand. Enhanced recycled water demand is projected to stabilize in the 2030’s, where forecasted annual average demand is 2.06 MGD (752 million gallons (MG) per year). A theoretical summary of AWPS operations (production and blending scenarios) is presented below to meet the 2.06 MGD annual average demand (up to 774 MG). However, even at the lowest blending ratio, there are several months where there is not enough AWPS capacity to meet the enhanced recycled water demand (May, June, July, and August based on historical data) and more production than demand is needed during other months to meet the average annual amount. Additional detail of the operations and maintenance assumptions is provided in Appendix 2 . Table 3 shows the operational scenario that was used to generate O&M costs. 1 CWSRF loan interest rate is at 2.60% as of 11/14/2022 and is subject to change. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 13 Packet Pg. 85 of 228 City of Palo Alto (0038014.03) 7 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 Table 3. AWPS Operational Scenario to Approximately Meet Enhanced Recycled Water Demand Month Days Blend Scenario AWPS Production Rate (as % of Capacity) (per month) Target TDS (mg/L) Ratio (existing RW : ROP) (Assumed Production as % of Capacity) January 31 n/a n/a 0% February 28 450 1.0 : 0.95 50% March 31 500 1.0 : 0.52 80% April 30 500 1.0 : 0.52 100% May 31 500 1.0 : 0.52 100% June 30 500 1.0 : 0.52 100% July 31 500 1.0 : 0.52 100% August 31 500 1.0 : 0.52 100% September 30 500 1.0 : 0.52 100% October 31 450 1.0 : 0.95 80% November 30 n/a n/a 0% December 31 n/a n/a 0% The allocation of O&M expenses is based on the estimated percentage of total enhanced recycled water use by Palo Alto and Mountain View. While enhanced recycled water flow is a function of both the AWPS and the existing recycled water facility, O&M costs presented in this report only consider expenses for the AWPS1. The estimated percentage of total enhanced recycled water production for 2026-2035 are shown in Table 4, the full table is located in Appendix 1, Table 6. The O&M expenses were modified from the design consultant’s estimates to account for seasonal production variations. Appendix 1, Table 5, shows the O&M expenses, Appendix 1, Table 10 shows the operating costs for the first twenty years of operations, and Appendix 2 details the O&M assumptions. 1 O&M expenses for the existing recycled water facilities are part of the overall Plant operations and are excluded from this analysis. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 14 Packet Pg. 86 of 228 City of Palo Alto (0038014.03) 8 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 Table 4. Estimated Enhanced Recycled Water Use1 Year Estimated Recycled Water Use (MGD) % of Total Palo Alto Mountain View Total Palo Alto Mountain View 2026 0.40 0.87 1.27 31.5% 68.5% 2027 0.40 0.87 1.27 31.5% 68.5% 2028 0.40 0.96 1.36 29.4% 70.6% 2029 0.40 1.04 1.44 27.8% 72.2% 2030 0.60 1.15 1.75 34.3% 65.7% 2031 0.80 1.26 2.06 38.8% 61.2% 2032 0.80 1.26 2.06 38.8% 61.2% 2033 0.80 1.26 2.06 38.8% 61.2% 2034 0.80 1.26 2.06 38.8% 61.2% 2035 0.80 1.26 2.06 38.8% 61.2% 4.2 Palo Alto Projected Use & AWPS Operating Expenses Palo Alto’s projected demand for enhanced recycled water production can be seen in Appendix 1, Tables 6-8. Palo Alto is estimated to use approximately 0.4 MGD of enhanced recycled water in 2026. Under the lowest cost O&M estimate (seasonal operations), Palo Alto would be responsible for $188,000, representing 31.5% of the operational costs in 2026. In 2031, Palo Alto is assumed to increase their enhanced recycled water use to 0.80 MGD (which is also the median value between no Phase III recycled water expansion (0.40 MGD) and the full Phase III recycled water expansion (1.20 MGD)). The future expansion of recycled water use in Palo Alto -- either Phase III recycled water expansion or DPR -- will depend on the recommendations and implementation of the City’s One Water Plan. Under this level of use, Palo Alto’s operating cost allocation would increase to $379,900 for 2031, as their share of total use increases. Appendix 1, Table 10 summarizes the operating costs for Palo Alto by year for the first twenty years of operations. 4.3 Mountain View Projected Use & AWPS Operating Expenses Mountain View’s projected demand for enhanced recycled water production can be seen in Appendix 1, Tables 6-8. Mountain View is estimated to use approximately 0.87 MGD of enhanced recycled water in 2026. Under the lowest cost O&M estimate (seasonal operations), Mountain View would be responsible for $408,900 representing 68.5% of the operational costs in 2026. In 2031, Mountain View is assumed to increase their enhanced recycled water use to 1 The basis for estimated enhanced recycled water use is from a 2017 Feasibility Study prepared by MNS Engineers, Inc., which was developed in collaboration with representatives from both Cities’ Staff. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 15 Packet Pg. 87 of 228 City of Palo Alto (0038014.03) 9 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 1.26 MGD, as they already have recycled water demand from customers ready to connect once the recycled water quality improves. Under this level of use, Mountain View’s operating cost allocation would be 61.2%, or $598,400 for 2031. Appendix 1, Table 10 summarizes the operating costs for Mountain View by year for the first twenty years of operations. 5. SUMMARY 5.1 Total Costs (Scenario A) Appendix 1, Table 11 summarizes the estimated recycled water use and all the considered costs in the PFP, including the debt service allocation, the operating cost allocation, and the total costs, from Year 1 (CY2025/2026, FY 2026) to Year 20 (CY 2044/2045). Appendix 1, Table 11 is included within this plan as Table 5. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 16 Packet Pg. 88 of 228 City of Palo Alto (0038014.03) 10 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 Table 5. AWPS Phase 1 Total Cost Allocations by Year (Scenario A) Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 17 Packet Pg. 89 of 228 City of Palo Alto (0038014.03) 11 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 18 Packet Pg. 90 of 228 City of Palo Alto (0038014.03) 12 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 5.2 Total Costs (Alternative Scenario A) The recycled water demand for Alternative Scenario A considers that Palo Alto does not move forward with Phase III recycled water expansion and has no change in recycled water demand from the current 0.40 MGD (Appendix 1, Table PA-10). Additionally, Alternative Scenario A assumes Mountain View increases recycled water use to their full 3 MGD amount . Total operating and maintenance expenses remain the same as the original scenario in 2026 but decrease to $204,800 in 2031, as seen in Appendix 1, Table PA-10. Similarly, full costs remain the same as the original scenario in 2026 but decrease to $204,800 in 2031, lower than the original scenario. A full breakdown of projected use and total costs alloc ated to each City is presented in Appendix 1, Table PA-10. Appendix 1, Table PA-10 is included in this Plan as Table 6. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 19 Packet Pg. 91 of 228 City of Palo Alto (0038014.03) 13 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 Table 6. AWPS Phase 1 Total Cost Allocations by Year (Alternative Scenario A) Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 20 Packet Pg. 92 of 228 City of Palo Alto (0038014.03) 14 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 21 Packet Pg. 93 of 228 City of Palo Alto (0038014.03) 15 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 5.3 Total Costs (Scenario B) The recycled water demand for Scenario B considers that Palo Alto does not move forward with Phase III recycled water expansion, but does have an increase in recycled water demand for a direct potable reuse (DPR) project starting in 2041 (Appendix 1, Table 6B). The alternative recycled water demand is shown in Table 7. Total operating and maintenance expenses remain the same as the original scenario in 2026 but decrease to $175,000 in 2031, as seen in Appendix 1, Table 10B. Similarly, full costs remain the same as the original scenario in 2026 but decrease to $175,000 in 2031, lower than the original scenario (Scenario A). Annual O&M expenses are a function of actual use and therefore Palo Alto’s demand Scenario B impacts Mountain View’s forecasted O&M expenses. Palo Alto’s total cost allocation in 2031 is $175,000 and Mountain View’s is $1,987,300. A full breakdown of projected use and total costs allocated to each City is presented in Appendix 1, Table 11B. Appendix 1, Table 11B is included within this plan as Table . Table 7. Estimated Enhanced Recycled Water Use (Scenario B) Year Estimated Recycled Water Use (MGD) % of Total Palo Alto Mountain View Total Palo Alto Mountain View 2026 0.40 0.87 1.27 31.5% 68.5% 2027 0.40 0.87 1.27 31.5% 68.5% 2028 0.40 0.96 1.36 29.4% 70.6% 2029 0.40 1.04 1.44 27.8% 72.2% 2030 0.40 1.15 1.55 25.8% 74.2% 2031 0.40 1.26 1.66 24.1% 75.9% 2032 0.40 1.26 1.66 24.1% 75.9% 2033 0.40 1.26 1.66 24.1% 75.9% 2034 0.40 1.26 1.66 24.1% 75.9% 2035 0.40 1.26 1.66 24.1% 75.9% Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 22 Packet Pg. 94 of 228 City of Palo Alto (0038014.03) 16 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 Table 8. AWPS Phase 1 Total Cost Allocations by Year (Scenario B) Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 23 Packet Pg. 95 of 228 City of Palo Alto (0038014.03) 17 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 24 Packet Pg. 96 of 228 City of Palo Alto (0038014.03) 18 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 5.4 Other Considerations The primary focus of this Preliminary Finance Plan is to quantify the added cost of the AWPS/ROP to existing expenses based on forecasted conditions. The total costs discussed in this Section 5 do not include the costs associated with the existing tertiary recycled water facility1. An analysis of the total cost of future recycled water should also incorporate the existing tertiary recycled water expense. The enhanced recycled water costs do not account for recycled water distribution costs (e.g., the capital and O&M of the recycled water pumps and pipelines). Additionally, the option to pursue Direct Potable Reuse (DPR) is currently being evaluated under the City of Palo Alto’s One Water Plan. The AWPS could be used as part of the treatment to supply enhanced recycled water, however the current PFP quantifies costs related to non - potable recycled water use.2 1 The O&M costs for the existing recycled water was estimated by Plant staff. This estimate assumes 0.75 MGD production level and 2022 costs escalated forward 3% annually. The per unit cost in 2023 is estimated to be approximately $3.31/ccf (hundred cubic feet). The per unit cost estimate is slightly higher in 2026 at $3.58/ccf. Additionally, there are likely future capital/debt expenses associated with the existing recycled water facility; the infrastructure of the existing facility is reaching the end of its useful life. Future capital/debt costs associated with its replacement or rehabilitation are not known. 2 Note that the siting capacity of a DPR process, utilizing the AWPS facility, has not yet been conceptually developed. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 25 Packet Pg. 97 of 228 City of Palo Alto (0038014.03) 19 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 6. ATTACHMENTS Appendix 1 – Advanced Water Purification System Preliminary Financing Plan Tables Appendix 2 – Assumed Operations and Maintenance and Related Expense Estimates Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 26 Packet Pg. 98 of 228 City of Palo Alto (0038014.03) 20 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 7. REFERENCES Black & Veatch, City of Palo Alto Advanced Water Purification System (AWPS), Basis of Design Report, Project 408520. November 8, 2021 Black & Veatch, City of Palo Alto AWPS Cost Estimate, The Opinion of Probable Construction Cost (OPCC), Project 408520. October 5, 2022. Black & Veatch, City of Palo Alto AWPS, Operations & Maintenance Cost Estimate (“AWPS OPEX 8-15-22”)– All Alternatives, Project 408520. August 15, 2022 City of Palo Alto, et al., Amendment No. 1 To the First Amended and Restated Contract NO. C059999 Between the City of Palo Alto and the City of Mountain View, August 28, 2017 City of Palo Alto, et al., Partnership Agreement Between the S anta Clara Valley Water District, the City of Palo Alto and the City of Mountain View to Advance Resilient Water Reuse Programs in Santa Clara County, Agreement A4308X, Approved December 10, 2019 Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 27 Packet Pg. 99 of 228 City of Palo Alto (0038014.03) 21 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 Appendix 1 Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 28 Packet Pg. 100 of 228 Revised 7/26/23 With Mountain View Funding 100% of AWPS Debt Service Assumes No New Labor O&M Expenses Advanced Water Purification System Preliminary Financing Plan Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 29 Packet Pg. 101 of 228 AWPS Phase 1 Capital & Operating Costs & Allocations Table 1 Project Cost Estimates Table 2 Projected Funding Sources Table 3 SRF Loan Debt Service Estimates Table 4 SRF Debt Service Allocation Table 5 Operating & Maintenance Expenses Table 6 Estimated Enhanced (Blended AWPS) Recycled Water Use (MGD) Table 7 Estimated Enhanced (Blended AWPS) Recycled Water Use (AF) Table 8 Estimated Enhanced (Blended AWPS) Recycled Water Use (ccf) Table 9 Summary of AWPS Capacity & Recycled Water Use Table 10 AWPS Phase 1 Operating Costs & Allocations by Year Table 11 AWPS Phase 1 Total Cost Allocations by Year Palo Alto Recycled Water Use & Costs Table PA-1 Palo Alto Enhanced Recycled Water Use (Blended) Table PA-2 Palo Alto Cost per Unit of Recycled Water Table PA-3 Palo Alto Projected Enhanced Recycled Water Costs & Impacts Table PA-4 Projection of Recycled Water Impacts to Palo Alto General Fund Table PA-5 Net Annual Impacts to City of Palo Alto With No Changes in PA & MV Future Recycled Water Use Table PA-6 Projection of Recycled Water Impacts to Palo Alto General Fund Table PA-7 Net Annual Impacts to City of Palo Alto With No Changes in PA Recycled Water Use but Table PA-8 Projection of Recycled Water Impacts to Palo Alto General Fund Table PA-9 Net Annual Impacts to City of Palo Alto Table PA-10 AWPS Phase 1 Total Cost Allocations by Year Scenario B: No Phase III with DPR Starting 2041 Table 6B Estimated Enhanced (Blended AWPS) Recycled Water Use (MGD) Table 7B Estimated Enhanced (Blended AWPS) Recycled Water Use (AF) Table 8B Estimated Enhanced (Blended AWPS) Recycled Water Use (ccf) Table 9B Summary of AWPS Capacity & Recycled Water Use Table 10B AWPS Phase 1 Operating Costs & Allocations by Year Table 11B AWPS Phase 1 Total Cost Allocations by Year Scenario B: Palo Alto Recycled Water Use & Costs Table PA-4B Projection of Recycled Water Impacts to Palo Alto General Fund Table PA-5B Net Annual Impacts to City of Palo Alto List of Tables Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 30 Packet Pg. 102 of 228 AWPS Phase 1 Capital & Operating Costs & Allocations Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 31 Packet Pg. 103 of 228 Table 1 AWPS Preliminary Financial Plan Project Cost Estimates Project Component Cost % of Ttl Cost Basis AWPS Project Costs Construction, Phase I: 90% Estimate $42,997,303 76.4% 90% OPCC Est. by Black & Veatch dated 10/05/22 Design 3,182,960 5.7% Black & Veatch Contract Owner Controlled Change Order Contingency 4,299,730 7.6% 10% of Construction Program Management 472,970 0.8% 1% of Construction + CO Contingency Construction Management 4,729,704 8.4% 10% of Construction + CO Contingency Odor Control Construction 620,000 1.1% Class 2 Estimate by Black & Veatch dated 11/6/21________________ Total Project Costs 56,302,667 100.0% Phase 1 assumes 1.125 mgd capacity with facilities sized, spaced, and configured for Phase 2 build-out. Roughly 18 month construction schedule from June 2023 - January 2025 with roughly 6 month start up and commissioning between January 2025 - June 2025. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 32 Packet Pg. 104 of 228 Table 2 AWPS Preliminary Financial Plan Projected Funding Sources Amount % of Total Projected Funding Sources Total AWPS Project Cost $56,302,667 External Funding Sources Valley Water Contribution [1] 16,000,000 28.4% USBR Grant [2] [3] 12,867,875 22.9%_________________ Subtotal 28,867,875 51.3% Remaining Funding Requirement 27,434,792 Cost Allocation of Remaining Funding Requirement [4] Palo Alto Cost Allocation 0% 0 0.0% Mountain View Cost Allocation 100% 27,434,792 48.7%_________________ Subtotal 27,434,792 48.7% Total Sources of Funding 56,302,667 100.0% 1 Source: 2019 Partnership Agreement, Section 5; Valley Water Contribution will be escalated annually based on Valley Water's Yield-to-Maturity Rate as published in Valley Water's Quarterly Performance Reports to the Board for the fourth quarter of each fiscal year. 2 Agreement needed to finalize (NEPA / CEQA+). 3 Does not account for potential USBR administrative fee. 4 Assumes Mountain View funds 100% of remaining AWPS capital costs. Assumes GP5 Funds are not used to help fund AWPS Project. Mountain View $27,434,792 USBR Grant $12,867,875 Valley Water Credit $16,000,000 Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 33 Packet Pg. 105 of 228 Table 3 AWPS Preliminary Financial Plan SRF Loan Debt Service Estimates Loan Amount Palo Alto Project Cost Allocation $0 0.0% Mountain View Project Cost Allocation 27,434,792 100.0% Capitalized Interest estimated 617,000 Other Costs/Contingency estimated 100,000____________ Total 28,151,792 Financing Terms Repayment Term (Years)30 Interest Rate estimated 3.00% Annual Debt Service $1,436,000 Annual Debt Allocation Palo Alto Share $0 0.0% Mountain View Share 1,436,000 100.0%____________ Total 1,436,000 SRF Reserve Requirement: Must set aside 1 year of debt service at least 90 days prior to project completion date. CWSRF Interest Rate is currently 2.90% as of 4/6/23, but is subject to change. SRF Loan Estimates Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 34 Packet Pg. 106 of 228 Table 4 AWPS Preliminary Financial Plan Annual Debt Service SRF Debt Service Allocation $1,436,000 Fiscal Year Palo Alto Mountain View Total Ending 6/30 0%100%Debt Service 2026 $0 $1,436,000 $1,436,000 2027 0 1,436,000 1,436,000 2028 0 1,436,000 1,436,000 2029 0 1,436,000 1,436,000 2030 0 1,436,000 1,436,000 2031 0 1,436,000 1,436,000 2032 0 1,436,000 1,436,000 2033 0 1,436,000 1,436,000 2034 0 1,436,000 1,436,000 2035 0 1,436,000 1,436,000 2036 0 1,436,000 1,436,000 2037 0 1,436,000 1,436,000 2038 0 1,436,000 1,436,000 2039 0 1,436,000 1,436,000 2040 0 1,436,000 1,436,000 2041 0 1,436,000 1,436,000 2042 0 1,436,000 1,436,000 2043 0 1,436,000 1,436,000 2044 0 1,436,000 1,436,000 2045 0 1,436,000 1,436,000 2046 0 1,436,000 1,436,000 2047 0 1,436,000 1,436,000 2048 0 1,436,000 1,436,000 2049 0 1,436,000 1,436,000 2050 0 1,436,000 1,436,000 2051 0 1,436,000 1,436,000 2052 0 1,436,000 1,436,000 2053 0 1,436,000 1,436,000 2054 0 1,436,000 1,436,000 2055 0 1,436,000 1,436,000 Total 0 43,080,000 43,080,000 Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 35 Packet Pg. 107 of 228 Table 5 AWPS Preliminary Financial Plan Operating & Maintenance Expenses 2026 2031 Annual AWPS O&M Expenses (2023 $)Costs in 2023 $Costs in 2023 $ O&M Labor $0 $0 Maintenance & Repairs 260,400 351,600 Energy 142,800 186,500 Chemicals 101,100 136,400 Membrane Consumables 26,400 40,300__________________ Total 530,700 714,800 Annual O&M With Cost Escalation to Startup Cost Escalation Cost Escalation to 2026 $to 2031 $ Cost Escalation at 4% per Year 12.5% 36.9% O&M Labor (Assumes No New Labor)$0 $0 Maintenance & Repairs 292,900 481,200 Energy 160,600 255,200 Chemicals 113,700 186,700 Membrane Consumables 29,700 55,200__________________ Total First Year Operations (FY2026) 596,900 978,300 Notes: O&M cost estimates developed by Woodard & Curran based on Black & Veatch AWPS OPEX 8-15-22 adjusted to account for seasonal variation in operations; costs assume no new labor expenses. Woodard & Curran operating cost estimates are based on historical demand and planned operation and assume seasonal variation of the AWPS operations as follows: Black & Veatch AWPS OPEX 8-15-22 operating cost estimates assumed 2.5 new FTEs for annual operations including 1 FTE Operator II, 1 FTE Maintenance/Electrician, and 1/2 FTE Lab Tech WQC. Costs shown are for AWPS Phase 1 recycled water production and exclude: b) Costs for operation of and administration of each agency's recycled water distribution system. Estimated Annual O&M Expenses Assumes Seasonal Operations with no New Labor a) Capital and operating expenses for Title 22 recycled water production at the RWQCP. The Title 22 recycled water facilities are a legacy system that have been maintained as part of the Plant’s NPDES permit compliance and therefore paid for by all Partners. The Plant will continue to produce Title 22 effluent, irrespective of the AWPS project implementation. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 36 Packet Pg. 108 of 228 Table 6 AWPS Preliminary Financial Plan Estimated Enhanced (Blended AWPS) Recycled Water Use (MGD) Year Palo Alto Mt View [1] Total Palo Alto Mountain View 2020 0.33 0.33 0.66 50.0% 50.0% 2021 0.25 0.37 0.62 40.3% 59.7% 2022 0.40 0.40 0.80 50.0% 50.0% 2023 0.40 0.40 0.80 50.0% 50.0% 2024 0.40 0.40 0.80 50.0% 50.0% 2025 0.40 0.55 0.95 42.1% 57.9% 2026 [2] 0.40 0.87 1.27 31.5% 68.5% 2027 0.40 0.87 1.27 31.5% 68.5% 2028 0.40 0.96 1.36 29.4% 70.6% 2029 0.40 1.04 1.44 27.8% 72.2% 2030 [3] 0.60 1.15 1.75 34.3% 65.7% 2031 0.80 1.26 2.06 38.8% 61.2% 2032 0.80 1.26 2.06 38.8% 61.2% 2033 0.80 1.26 2.06 38.8% 61.2% 2034 0.80 1.26 2.06 38.8% 61.2% 2035 0.80 1.26 2.06 38.8% 61.2% 2036 0.80 1.26 2.06 38.8% 61.2% 2037 0.80 1.26 2.06 38.8% 61.2% 2038 0.80 1.26 2.06 38.8% 61.2% 2039 0.80 1.26 2.06 38.8% 61.2% 2040 [4] 0.80 1.26 2.06 38.8% 61.2% 2041 [5] 1.20 1.75 2.95 40.7% 59.3% 2042 1.20 2.25 3.45 34.8% 65.2% 2043 1.20 2.75 3.95 30.4% 69.6% 2044 1.20 3.00 4.20 28.6% 71.4% 2045 1.20 3.00 4.20 28.6% 71.4% 2046 1.20 3.00 4.20 28.6% 71.4% 2047 1.20 3.00 4.20 28.6% 71.4% 2048 1.20 3.00 4.20 28.6% 71.4% 2049 1.20 3.00 4.20 28.6% 71.4% 2050 1.20 3.00 4.20 28.6% 71.4% 2051 1.20 3.00 4.20 28.6% 71.4% 2052 1.20 3.00 4.20 28.6% 71.4% Source: Preliminary estimates developed by Woodard & Curran. 1 Based on recycled water demand projections used for AWPS grant application. 2 Assumes Mountain View gradually increases recycled water demand to 1.25 MGD after Phase 1 startup. 3 Assumes Palo Alto's recycled water use increases to 0.80 mgd which is the middle value between no Phase III recycled water expansion (0.40 mgd) and full Phase III expansion (1.20 mgd). 4 Assumes Mountain View moves forward with recycled water system expansions and increases recycled water use over the next 4 years to their full contractual amount of 3 MGD. 5 Assumes Palo Alto's moves forward with Phase III expansion of recycled water system and increases recycled water use to 1.20 mgd. % of TotalEstimated Recycled Water Use (MGD) Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 37 Packet Pg. 109 of 228 Table 7 AWPS Preliminary Financial Plan Estimated Enhanced (Blended AWPS) Recycled Water Use (AF) Year Palo Alto Mt View [1] Total Palo Alto Mountain View 2020 370 370 739 50.0% 50.0% 2021 280 414 694 40.3% 59.7% 2022 448 448 896 50.0% 50.0% 2023 448 448 896 50.0% 50.0% 2024 448 448 896 50.0% 50.0% 2025 448 616 1,064 42.1% 57.9% 2026 [2] 448 975 1,423 31.5% 68.5% 2027 448 975 1,423 31.5% 68.5% 2028 448 1,075 1,523 29.4% 70.6% 2029 448 1,165 1,613 27.8% 72.2% 2030 [3] 672 1,288 1,960 34.3% 65.7% 2031 896 1,411 2,307 38.8% 61.2% 2032 896 1,411 2,307 38.8% 61.2% 2033 896 1,411 2,307 38.8% 61.2% 2034 896 1,411 2,307 38.8% 61.2% 2035 896 1,411 2,307 38.8% 61.2% 2036 896 1,411 2,307 38.8% 61.2% 2037 896 1,411 2,307 38.8% 61.2% 2038 896 1,411 2,307 38.8% 61.2% 2039 896 1,411 2,307 38.8% 61.2% 2040 [4] 896 1,411 2,307 38.8% 61.2% 2041 [5] 1,344 1,960 3,304 40.7% 59.3% 2042 1,344 2,520 3,865 34.8% 65.2% 2043 1,344 3,080 4,425 30.4% 69.6% 2044 1,344 3,360 4,705 28.6% 71.4% 2045 1,344 3,360 4,705 28.6% 71.4% 2046 1,344 3,360 4,705 28.6% 71.4% 2047 1,344 3,360 4,705 28.6% 71.4% 2048 1,344 3,360 4,705 28.6% 71.4% 2049 1,344 3,360 4,705 28.6% 71.4% 2050 1,344 3,360 4,705 28.6% 71.4% 2051 1,344 3,360 4,705 28.6% 71.4% 2052 1,344 3,360 4,705 28.6% 71.4% Source: Preliminary estimates developed by Woodard & Curran. 1 Based on recycled water demand projections used for AWPS grant application. 2 Assumes Mountain View gradually increases recycled water demand to 1.25 MGD after Phase 1 startup. 3 Assumes Palo Alto's recycled water use increases to 0.80 mgd which is the middle value between no Phase III recycled water expansion (0.40 mgd) and full Phase III expansion (1.20 mgd). 4 Assumes Mountain View moves forward with recycled water system expansions and increases recycled water use over the next 4 years to their full contractual amount of 3 MGD. 5 Assumes Palo Alto's moves forward with Phase III expansion of recycled water system and increases recycled water use to 1.20 mgd. % of TotalEstimated Recycled Water Use (AF) Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 38 Packet Pg. 110 of 228 Table 8 AWPS Preliminary Financial Plan Estimated Enhanced (Blended AWPS) Recycled Water Use (ccf) Year Palo Alto Mt View [1] Total Palo Alto Mountain View 2020 161,019 161,019 322,037 50.0% 50.0% 2021 121,984 180,536 302,520 40.3% 59.7% 2022 195,174 195,174 390,348 50.0% 50.0% 2023 195,174 195,174 390,348 50.0% 50.0% 2024 195,174 195,174 390,348 50.0% 50.0% 2025 195,174 268,364 463,539 42.1% 57.9% 2026 [2] 195,174 424,504 619,678 31.5% 68.5% 2027 195,174 424,504 619,678 31.5% 68.5% 2028 195,174 468,418 663,592 29.4% 70.6% 2029 195,174 507,453 702,627 27.8% 72.2% 2030 [3] 292,761 561,126 853,887 34.3% 65.7% 2031 390,348 614,798 1,005,147 38.8% 61.2% 2032 390,348 614,798 1,005,147 38.8% 61.2% 2033 390,348 614,798 1,005,147 38.8% 61.2% 2034 390,348 614,798 1,005,147 38.8% 61.2% 2035 390,348 614,798 1,005,147 38.8% 61.2% 2036 390,348 614,798 1,005,147 38.8% 61.2% 2037 390,348 614,798 1,005,147 38.8% 61.2% 2038 390,348 614,798 1,005,147 38.8% 61.2% 2039 390,348 614,798 1,005,147 38.8% 61.2% 2040 [4] 390,348 614,798 1,005,147 38.8% 61.2% 2041 [5] 585,522 853,887 1,439,409 40.7% 59.3% 2042 585,522 1,097,854 1,683,377 34.8% 65.2% 2043 585,522 1,341,822 1,927,344 30.4% 69.6% 2044 585,522 1,463,806 2,049,328 28.6% 71.4% 2045 585,522 1,463,806 2,049,328 28.6% 71.4% 2046 585,522 1,463,806 2,049,328 28.6% 71.4% 2047 585,522 1,463,806 2,049,328 28.6% 71.4% 2048 585,522 1,463,806 2,049,328 28.6% 71.4% 2049 585,522 1,463,806 2,049,328 28.6% 71.4% 2050 585,522 1,463,806 2,049,328 28.6% 71.4% 2051 585,522 1,463,806 2,049,328 28.6% 71.4% 2052 585,522 1,463,806 2,049,328 28.6% 71.4% Source: Preliminary estimates developed by Woodard & Curran. 1 Based on recycled water demand projections used for AWPS grant application. 2 Assumes Mountain View gradually increases recycled water demand to 1.25 MGD after Phase 1 startup. 3 Assumes Palo Alto's recycled water use increases to 0.80 mgd which is the middle value between no Phase III recycled water expansion (0.40 mgd) and full Phase III expansion (1.20 mgd). 4 Assumes Mountain View moves forward with recycled water system expansions and increases recycled water use over the next 4 years to their full contractual amount of 3 MGD. 5 Assumes Palo Alto's moves forward with Phase III expansion of recycled water system and increases recycled water use to 1.20 mgd. Estimated Recycled Water Use (ccf) % of Total Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 39 Packet Pg. 111 of 228 Table 9 AWPS Preliminary Financial Plan Summary of AWPS Capacity & Recycled Water Use Total Palo Alto Mountain View AWPS Phase 1 Capacity Phase 1 Capacity 1.125 mgd 0.281 mgd 0.844 mgd (Reverse osmosis permeate) % Allocation of Capacity 25% 75% Enhanced Recycled Water Production, AWPS at 1.25 mgd [1] Enhanced RW Range 2.06 - 2.65 mgd 0.52 - 0.66 mgd 1.55 - 1.98 mgd Average 2.35 mgd 0.59 mgd 1.76 mgd % Allocation of Production 25% 75% AWPS Phase 1 Estimated Annual Enhanced Recycled Water Use 2026 Phase 1 Demand in 2026 mgd 1.27 mgd 0.40 mgd 0.87 mgd AF 1,423 AF 448 AF 975 AF ccf 849,007 ccf 424,504 ccf 424,504 ccf % of Total Enhanced RW Use 31.5% 68.5% AWPS Phase 1 Estimated Annual Enhanced Recycled Water Use 2031 Phase 1 Demand in 2031 mgd 2.06 mgd 0.80 mgd 1.26 mgd AF 2,307 AF 896 AF 1,411 AF ccf 1,005,147 ccf 390,348 ccf 614,798 ccf % of Total Enhanced RW Use 38.8% 61.2% [1] Based on Black & Veatch's AWPS Basis of Design Report (2021) Table 4-5, the average blending ratio of recycled water to reverse osmosis permeate to maintain between 400 mg/L - 500 gm/L total dissolved solids is 1:0.74 to 1:1.20 Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 40 Packet Pg. 112 of 228 Table 10 AWPS Preliminary Financial Plan AWPS Phase 1 Operating Costs & Allocations by Year 1 2 3 4 5 6 7 8 9 10 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only Palo Alto 78,070 195,174 195,174 195,174 195,174 292,761 390,348 390,348 390,348 390,348 Mountain View 169,801 424,504 424,504 468,418 507,453 561,126 614,798 614,798 614,798 614,798__________________________________________________________________________________________ Total 247,871 619,678 619,678 663,592 702,627 853,887 1,005,147 1,005,147 1,005,147 1,005,147 Cumulative Change in Use % - - 0.0% 7.1% 13.4% 37.8% 62.2% 62.2% 62.2% 62.2% Cost Escalator (Base Year = 2023 + 4% Escalation)1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 1.539 AWPS Phase 1 O&M Fixed Operating Expenses O&M Labor (Assumes No New Labor)$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable Operating Expenses Assumes 50% Maintenance & Repairs 146,500 292,900 304,600 329,500 354,300 415,600 481,200 500,400 520,500 541,300 Energy 80,300 160,600 167,100 179,800 192,600 222,900 255,200 265,400 276,100 287,100 Chemicals 56,900 113,700 118,300 127,900 137,500 161,300 186,700 194,100 201,900 210,000 Membrane Consumables 14,900 29,700 30,900 34,000 37,200 45,900 55,200 57,400 59,700 62,000__________________________________________________________________________________________ Total Annual O&M 298,600 596,900 620,900 $671,200 $721,600 $845,700 $978,300 $1,017,300 $1,058,200 $1,100,400 AWPS O&M Cost per Unit ($/ccf)$1.20 $0.96 $1.00 $1.01 $1.03 $0.99 $0.97 $1.01 $1.05 $1.09 Share of Annual Recycled Water Use Palo Alto 31.5% 31.5% 31.5% 29.4% 27.8% 34.3% 38.8% 38.8% 38.8% 38.8% Mountain View 68.5% 68.5% 68.5% 70.6% 72.2% 65.7% 61.2% 61.2% 61.2% 61.2%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% AWPS O&M Cost Allocation Palo Alto $94,000 $188,000 $195,600 $197,400 $200,400 $290,000 $379,900 $395,100 $411,000 $427,300 Mountain View 204,600 408,900 425,300 473,800 521,200 555,700 598,400 622,200 647,200 673,100__________________________________________________________________________________________ Total 298,600 596,900 620,900 671,200 721,600 845,700 978,300 1,017,300 1,058,200 1,100,400 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 41 Packet Pg. 113 of 228 Table 10 AWPS Preliminary Financial Plan AWPS Phase 1 Operating Costs & Allocations by Year 11 12 13 14 15 16 17 18 19 20 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf) Palo Alto 390,348 390,348 390,348 390,348 390,348 390,348 585,522 585,522 585,522 585,522 Mountain View 614,798 614,798 614,798 614,798 614,798 614,798 853,887 1,097,854 1,341,822 1,463,806__________________________________________________________________________________________ Total 1,005,147 1,005,147 1,005,147 1,005,147 1,005,147 1,005,147 1,439,409 1,683,377 1,927,344 2,049,328 Cumulative Change in Use % 62.2% 62.2% 62.2% 62.2% 62.2% 62.2% 132.3% 171.7% 211.0% 230.7% Cost Escalator (Base Year = 2023 + 4% Escalation)1.601 1.665 1.732 1.801 1.873 1.948 2.026 2.107 2.191 2.279 AWPS Phase 1 O&M Fixed Operating Expenses O&M Labor (Assumes No New Labor)$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable Operating Expenses Preliminary Estimates>>> Maintenance & Repairs 562,900 585,400 608,900 633,200 658,500 684,900 1,020,000 1,240,600 1,477,200 1,633,500 Energy 298,600 310,500 323,000 335,900 349,300 363,300 541,000 658,100 783,600 866,500 Chemicals 218,400 227,100 236,200 245,600 255,500 265,700 395,700 481,300 573,100 633,700 Membrane Consumables 64,500 67,100 69,800 72,600 75,500 78,500 116,900 142,200 169,300 187,200__________________________________________________________________________________________ Total Annual O&M $1,144,400 $1,190,100 $1,237,900 $1,287,300 $1,338,800 $1,392,400 $2,073,600 $2,522,200 $3,003,200 $3,320,900 AWPS O&M Cost per Unit ($/ccf)$1.14 $1.18 $1.23 $1.28 $1.33 $1.39 $1.44 $1.50 $1.56 $1.62 Share of Annual Recycled Water Use Palo Alto 38.8% 38.8% 38.8% 38.8% 38.8% 38.8% 40.7% 34.8% 30.4% 28.6% Mountain View 61.2% 61.2% 61.2% 61.2% 61.2% 61.2% 59.3% 65.2% 69.6% 71.4%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% AWPS O&M Cost Allocation Palo Alto $444,400 $462,200 $480,700 $499,900 $519,900 $540,700 $843,500 $877,300 $912,400 $948,800 Mountain View 700,000 727,900 757,200 787,400 818,900 851,700 1,230,100 1,644,900 2,090,800 2,372,100__________________________________________________________________________________________ Total 1,144,400 1,190,100 1,237,900 1,287,300 1,338,800 1,392,400 2,073,600 2,522,200 3,003,200 3,320,900 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 42 Packet Pg. 114 of 228 Table 11 AWPS Preliminary Financial Plan AWPS Phase 1 Total Cost Allocations by Year 1 2 3 4 5 6 7 8 9 10 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only Palo Alto 97,587 195,174 195,174 195,174 195,174 292,761 390,348 390,348 390,348 390,348 Mountain View 212,252 424,504 424,504 468,418 507,453 561,126 614,798 614,798 614,798 614,798__________________________________________________________________________________________ Total 309,839 619,678 619,678 663,592 702,627 853,887 1,005,147 1,005,147 1,005,147 1,005,147 Cumulative Change in Use % - - 0.0% 7.1% 13.4% 37.8% 62.2% 62.2% 62.2% 62.2% Share of Annual Enhnaced Recycled Water Use Palo Alto 31.5% 31.5% 31.5% 29.4% 27.8% 34.3% 38.8% 38.8% 38.8% 38.8% Mountain View 68.5% 68.5% 68.5% 70.6% 72.2% 65.7% 61.2% 61.2% 61.2% 61.2%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Debt Service Allocation Palo Alto 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Mountain View 100% 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000__________________________________________________________________________________________ Total 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 Operating Cost Allocation Based on each agency's % share of total annual enhanced recycled water use. Palo Alto $94,000 $188,000 $195,600 $197,400 $200,400 $290,000 $379,900 $395,100 $411,000 $427,300 Mountain View 204,600 408,900 425,300 473,800 521,200 555,700 598,400 622,200 647,200 673,100__________________________________________________________________________________________ Total 298,600 596,900 620,900 671,200 721,600 845,700 978,300 1,017,300 1,058,200 1,100,400 Total Cost Allocation Palo Alto $94,000 $188,000 $195,600 $197,400 $200,400 $290,000 $379,900 $395,100 $411,000 $427,300 Mountain View 1,640,600 1,844,900 1,861,300 1,909,800 1,957,200 1,991,700 2,034,400 2,058,200 2,083,200 2,109,100__________________________________________________________________________________________ Total 1,734,600 2,032,900 2,056,900 2,107,200 2,157,600 2,281,700 2,414,300 2,453,300 2,494,200 2,536,400 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 43 Packet Pg. 115 of 228 Table 11 AWPS Preliminary Financial Plan AWPS Phase 1 Total Cost Allocations by Year 11 12 13 14 15 16 17 18 19 20 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf) Palo Alto 390,348 390,348 390,348 390,348 390,348 390,348 585,522 585,522 585,522 585,522 Mountain View 614,798 614,798 614,798 614,798 614,798 614,798 853,887 1,097,854 1,341,822 1,463,806__________________________________________________________________________________________ Total 1,005,147 1,005,147 1,005,147 1,005,147 1,005,147 1,005,147 1,439,409 1,683,377 1,927,344 2,049,328 Cumulative Change in Use % 62.2% 62.2% 62.2% 62.2% 62.2% 62.2% 132.3% 171.7% 211.0% 230.7% Share of Annual Enhnaced Recycled Water Use Palo Alto 38.8% 38.8% 38.8% 38.8% 38.8% 38.8% 40.7% 34.8% 30.4% 28.6% Mountain View 61.2% 61.2% 61.2% 61.2% 61.2% 61.2% 59.3% 65.2% 69.6% 71.4%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Debt Service Allocation Palo Alto $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Mountain View 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000__________________________________________________________________________________________ Total 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 Operating Cost Allocation Based on each agency's % share of total annual enhanced recycled water use. Palo Alto $444,400 $462,200 $480,700 $499,900 $519,900 $540,700 $843,500 $877,300 $912,400 $948,800 Mountain View 700,000 727,900 757,200 787,400 818,900 851,700 1,230,100 1,644,900 2,090,800 2,372,100__________________________________________________________________________________________ Total 1,144,400 1,190,100 1,237,900 1,287,300 1,338,800 1,392,400 2,073,600 2,522,200 3,003,200 3,320,900 Total Cost Allocation Palo Alto $444,400 $462,200 $480,700 $499,900 $519,900 $540,700 $843,500 $877,300 $912,400 $948,800 Mountain View 2,136,000 2,163,900 2,193,200 2,223,400 2,254,900 2,287,700 2,666,100 3,080,900 3,526,800 3,808,100__________________________________________________________________________________________ Total 2,580,400 2,626,100 2,673,900 2,723,300 2,774,800 2,828,400 3,509,600 3,958,200 4,439,200 4,756,900 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 44 Packet Pg. 116 of 228 Palo Alto Recycled Water Use & Costs Assumes AWPS Phase 1 Only Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 45 Packet Pg. 117 of 228 Table PA-1 AWPS Preliminary Financial Plan Palo Alto Enhanced Recycled Water Use (Blended) City Estimates Adjusted for From Nov 2022 Projected Use 2026 Palo Alto Recycled Water Use (ccf) Palo Alto Golf Course & Baylands Athletic Ctr Golf Course Irrig & Baylands Athletic Ctr [1]121,500 138,112 Golf Course Greens [2]0 0__________________ Subtotal 121,500 138,112 Palo Alto Parks [3] 35,000 39,785 Other City Uses [4]8,000 9,094 Truck Standpipe 5,000 5,684 CalTrans [5]0 2,500__________________ Total (ccf)169,500 195,174 Total (mgd) 0.347 0.400 1 Increase accounts for both a) an adjustment to match the City's 2026 recycled water use projections, and b) an estimated 5,000 ccf of new enhanced recycled water to replace potable water periodically used to irrigate fairways due to current recycled water salinity. 2 Assumes greens will continue to be irrigated with potable water due to salinity issues with recycled water. 3 Includes recycle water use at Greer Park, Duck Pond, Animal Svcs, Adobe Creek Bike Bridge. Current recycled water supply is periodically blended with potable water to reduce salinity. 4 Includes MSC standpipe & hydrant, Greer Park hydrant, and RWQCP landscaping. 5 Based on Caltrans historical recycled water use; Caltrans anticipates reconnecting in 2024. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 46 Packet Pg. 118 of 228 Table PA-2 AWPS Preliminary Financial Plan Palo Alto Cost per Unit of Recycled Water 2026 2031 Projected Recycled Water Use (ccf)195,174 390,348 AWPS Phase 1 Cost Allocation to Palo Alto SRF Loan Debt Service [1]25.0%25.0% AWPS Phase 1 Operating Expenses [2]31.5%38.8% Palo Alto Share of AWPS Phase 1 Expenses SRF Loan Debt Service $0 $0 AWPS Phase 1 Operating Expenses [3][4]188,000 379,900__________________ Subtotal 188,000 379,900 Enhanced RW Cost per Unit ($/ccf)$0.96 $0.97 1 Assumes debt Service allocated 25% to Palo Alto and 75% to Mountain View. 2 Assumes operating expenses would be allocated proportionately based on each agency's share of total enhanced recycled water use and would be adjusted annually based on actual use. 3 Excludes costs related to existing Title 22 recycled water facilities at RWQCP and City's recycled water distribution system. Blended Recycled Water Cost per Unit Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 47 Packet Pg. 119 of 228 Table PA-3 AWPS Preliminary Financial Plan Palo Alto Projected Enhanced Recycled Water Costs & Impacts Base Year 2026 RW Use (ccf) RW Costs & Impacts RW Cost per Unit ($/ccf)$0.96 Recycled Water Use & Costs Palo Alto Golf Course & Bay Athletic Ctr 138,112 $133,035 Palo Alto Parks [3]39,785 38,323 Other City Uses [4]9,094 8,759 Truck Standpipe 5,684 5,475 CalTrans [5]2,500 2,408__________________ Total 195,174 188,000 Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 48 Packet Pg. 120 of 228 Table PA-4 New RW sales could be a source of substantial future revenues AWPS Preliminary Financial Plan But also would be a transition from potable sales to recycled sales Projection of Recycled Water Impacts to Palo Alto General Fund Impact would vary depending on RW rate Cost 1 2 3 4 5 6 7 8 9 10 Esc 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only City Use for Golf Course & Parks 86,450 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig)4,550 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 2,840 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 1,250 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 97,587 195,174 195,174 195,174 195,174__________________________________________________________________________________________ Total 97,590 195,174 195,174 195,174 195,174 292,761 390,348 390,348 390,348 390,348 Palo Alto Share of Projected RW Use 31.5% 31.5% 31.5% 29.4% 27.8% 34.3% 38.8% 38.8% 38.8% 38.8% Proj Potable Irrig Water Rate (W7)3.0%$11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 RW Rate as % of Potable Rate 50%50%50%50%50% Projected Recycled Water Rate [1]$0.96 $0.96 $1.00 $1.01 $1.03 $6.63 $6.83 $7.04 $7.25 $7.46 Recycled Water Sales Revenues & Expense Offsets Truck RW Sales $2,700 $5,500 $5,700 $5,700 $5,800 $37,700 $38,800 $40,000 $41,200 $42,400 MSC & Other Billed City Use 4,400 8,800 9,100 9,200 9,300 60,300 62,100 64,000 65,900 67,800 Caltrans RW Sales 1,200 2,400 2,500 2,500 2,600 16,600 17,100 17,600 18,100 18,700 Other RW Sales 0 0 0 0 0 647,000 1,333,000 1,374,000 1,415,000 1,456,000 Valley Water Annual Option Pymt 3.0%58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0 Valley Water Annual Effluent Purchase - - - - - - - - tbd tbd Reduced Potable Water Purchases 28,500 58,900 60,700 62,500 64,400 66,300 68,300 70,400 72,500 74,600__________________________________________________________________________________________ Subtotal 95,000 135,500 139,700 143,500 147,600 895,400 1,588,800 1,637,600 1,612,700 1,659,500 Recycled Water Expenses AWPS O&M Allocation [2,3,4,5]$94,000 $188,000 $195,600 $197,400 $200,400 $290,000 $379,900 $395,100 $411,000 $427,300 AWPS SRF Debt Service Allocation [6]0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal 94,000 188,000 195,600 197,400 200,400 290,000 379,900 395,100 411,000 427,300 Revenues Less Expenses $1,000 ($52,500)($55,900)($53,900)($52,800)$605,400 $1,208,900 $1,242,500 $1,201,700 $1,232,200 Cumulative Net Expenses $1,000 ($51,500)($107,400)($161,300)($214,100)$391,300 $1,600,200 $2,842,700 $4,044,400 $5,276,600 Projected RW Cost per Unit ($/ccf)$0.96 $0.96 $1.00 $1.01 $1.03 $0.99 $0.97 $1.01 $1.05 $1.09 Net RW Unit Cost After Offsets ($/ccf)($0.01) $0.27 $0.29 $0.28 $0.27 ($2.07) ($3.10) ($3.18) ($3.08) ($3.16) 1 Assumes recycled water sold at cost through 2029/30 and at 50% of the projected potable water rate (W7) thereafter corresponding with expansion of recycled water deliveries. 2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with no new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 49 Packet Pg. 121 of 228 Table PA-4 New RW sales could be a source of substantial future revenues AWPS Preliminary Financial Plan But also would be a transition from potable sales to recycled sales Projection of Recycled Water Impacts to Palo Alto General Fund Impact would vary depending on RW rate Cost 11 12 13 14 15 16 17 18 19 20 Esc 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf) City Use for Golf Course & Parks 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig)9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 195,174 195,174 195,174 195,174 195,174 195,174 390,348 390,348 390,348 390,348__________________________________________________________________________________________ Total 390,348 390,348 390,348 390,348 390,348 390,348 585,522 585,522 585,522 585,522 Palo Alto Share of Projected RW Use 38.8% 38.8% 38.8% 38.8% 38.8% 38.8% 40.7% 34.8% 30.4% 28.6% Proj Potable Irrig Water Rate (W7)3.0%$15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 RW Rate as % of Potable Rate 50%50%50%50%50%50%50%50%50%50% Projected Recycled Water Rate [1]$7.69 $7.92 $8.16 $8.40 $8.65 $8.91 $9.18 $9.45 $9.74 $10.03 Recycled Water Sales Revenues & Expense Offsets Truck RW Sales $43,700 $45,000 $46,400 $47,700 $49,200 $50,600 $52,200 $53,700 $55,400 $57,000 MSC & Other Billed City Use 69,900 72,000 74,200 76,400 78,700 81,000 83,500 85,900 88,600 91,200 Caltrans RW Sales 19,200 19,800 20,400 21,000 21,600 22,300 23,000 23,600 24,400 25,100 Other RW Sales 1,500,900 1,545,800 1,592,600 1,639,500 1,688,300 1,739,000 3,583,400 3,688,800 3,802,000 3,915,200 Valley Water Annual Option Pymt 0 0 0 0 0 0 0 0 0 0 Valley Water Annual Effluent Purchase tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Reduced Potable Water Purchases 76,900 79,200 81,600 84,000 86,500 89,100 91,800 94,500 97,400 100,300__________________________________________________________________________________________ Subtotal 1,710,600 1,761,800 1,815,200 1,868,600 1,924,300 1,982,000 3,833,900 3,946,500 4,067,800 4,188,800 Recycled Water Expenses AWPS O&M Allocation [2,3,4,5]$444,400 $462,200 $480,700 $499,900 $519,900 $540,700 $843,500 $877,300 $912,400 $948,800 AWPS SRF Debt Service Allocation [6]0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal 444,400 462,200 480,700 499,900 519,900 540,700 843,500 877,300 912,400 948,800 Revenues Less Expenses $1,266,200 $1,299,600 $1,334,500 $1,368,700 $1,404,400 $1,441,300 $2,990,400 $3,069,200 $3,155,400 $3,240,000 Cumulative Net Expenses $6,542,800 $7,842,400 $9,176,900 $10,545,600 $11,950,000 $13,391,300 $16,381,700 $19,450,900 $22,606,300 $25,846,300 Projected RW Cost per Unit ($/ccf)$1.14 $1.18 $1.23 $1.28 $1.33 $1.39 $1.44 $1.50 $1.56 $1.62 Net RW Unit Cost After Offsets ($/ccf)($3.24) ($3.33) ($3.42) ($3.51) ($3.60) ($3.69) ($5.11) ($5.24) ($5.39) ($5.53) 1 Assumes recycled water sold at cost through 2029/30 and at 50% of the projected potable water rate (W7) thereafter corresponding with expansion of recycled water deliveries. 2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with no new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 50 Packet Pg. 122 of 228 Table PA-5 AWPS Preliminary Financial Plan Net Annual Impacts to City of Palo Alto 1 2 3 4 5 6 7 8 9 10 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Palo Alto Recycled Water Use (ccf) Base Year Recycled Water Use 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 97,587 195,174 195,174 195,174 195,174__________________________________________________________________________________________ Total 97,587 195,174 195,174 195,174 195,174 292,761 390,348 390,348 390,348 390,348 Palo Alto General Fund: Palo Alto Golf Course & Parks Recycled Water Expenses ($94,000) ($188,000) ($195,600) ($197,400) ($200,400) ($290,000) ($379,900) ($395,100) ($411,000) ($427,300) Less Expense Offsets A) Potable Water Purchases for GC Fairway Irrig (ccf)50% Jan-Jun Transition from Potable to RW Use 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Irrig Water Rate (W7) with 3% Escalation $11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 Cost of Potable City Water Purchases $28,600 $58,900 $60,700 $62,500 $64,400 $66,300 $68,300 $70,400 $72,500 $74,600 B) Recycled Water Sales Revenues Truck RW Sales $2,700 $5,500 $5,700 $5,700 $5,800 $37,700 $38,800 $40,000 $41,200 $42,400 MSC & Other Billed City Use 4,400 8,800 9,100 9,200 9,300 60,300 62,100 64,000 65,900 67,800 Caltrans RW Sales 1,200 2,400 2,500 2,500 2,600 16,600 17,100 17,600 18,100 18,700 Other RW Sales 0 0 0 0 0 647,000 1,333,000 1,374,000 1,415,000 1,456,000__________________________________________________________________________________________ Subtotal $8,300 $16,700 $17,300 $17,400 $17,700 $761,600 $1,451,000 $1,495,600 $1,540,200 $1,584,900 Net Annual Impact to General Fund ($57,100) ($112,400) ($117,600) ($117,500) ($118,300) $537,900 $1,139,400 $1,170,900 $1,201,700 $1,232,200 AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund Loss of Potable Water Sales ($28,600) ($58,900) ($60,700) ($62,500) ($64,400) ($1,360,605) ($2,734,569) ($2,816,657) ($2,901,145) ($2,988,104) Offset by Reduction in SFPUC Potable Water Purchases Reduction in SFPUC Potable Water Purchases (ccf) 2,500 5,000 5,000 5,000 5,000 102,587 200,174 200,174 200,174 200,174 SFPUC Wholesale Rate w/ 5% Esc + BAWSCA Bond Surchg $6.48 $6.78 $7.10 $7.44 $7.79 $8.16 $8.54 $8.95 $9.38 $9.83__________________________________________________________________________________________ Total Est. Annual Potable City Water Purchases 16,200 33,900 35,500 37,200 38,900 836,800 1,710,400 1,791,900 1,877,500 1,967,400 Net Annual Revenue Loss to Water Enterprise ($12,400)($25,000)($25,200)($25,300)($25,500)($523,805)($1,024,169)($1,024,757)($1,023,645)($1,020,704) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund Valley Water Annual Option Payment $58,200 $59,900 $61,700 $63,600 $65,500 $67,500 $69,500 $71,600 $0 $0 Valley Water Annual Effluent Purchase Payment - - - - - - - - tbd tbd Total Combined Impact to Palo Alto Net Impact to General Fund ($57,100) ($112,400) ($117,600) ($117,500) ($118,300) $537,900 $1,139,400 $1,170,900 $1,201,700 $1,232,200 Net Revenue Loss Water Enterprise (12,400) (25,000) (25,200) (25,300) (25,500) (523,805) (1,024,169) (1,024,757) (1,023,645) (1,020,704) Valley Water Annual Option Payment to Wastewater Fund 58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0__________________________________________________________________________________________ Total Net Annual Impact to City ($11,300) ($77,500) ($81,100) ($79,200) ($78,300) $81,595 $184,731 $217,743 $178,055 $211,496 Cumulative Impact to City ($11,300) ($88,800) ($169,900) ($249,100) ($327,400) ($245,805) ($61,074) $156,669 $334,724 $546,221 Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 51 Packet Pg. 123 of 228 Table PA-5 AWPS Preliminary Financial Plan Net Annual Impacts to City of Palo Alto 11 12 13 14 15 16 17 18 19 20 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Palo Alto Recycled Water Use (ccf) Base Year Recycled Water Use 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 195,174 195,174 195,174 195,174 195,174 195,174 390,348 390,348 390,348 390,348__________________________________________________________________________________________ Total 390,348 390,348 390,348 390,348 390,348 390,348 585,522 585,522 585,522 585,522 Palo Alto General Fund: Palo Alto Golf Course & Parks Recycled Water Expenses ($444,400) ($462,200) ($480,700) ($499,900) ($519,900) ($540,700) ($843,500) ($877,300) ($912,400) ($948,800) Less Expense Offsets A) Potable Water Purchases for GC Fairway Irrig (ccf) Transition from Potable to RW Use 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Irrig Water Rate (W7) with 3% Escalation $15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 Cost of Potable City Water Purchases $76,900 $79,200 $81,600 $84,000 $86,500 $89,100 $91,800 $94,500 $97,400 $100,300 B) Recycled Water Sales Revenues Truck RW Sales $43,700 $45,000 $46,400 $47,700 $49,200 $50,600 $52,200 $53,700 $55,400 $57,000 MSC & Other Billed City Use 69,900 72,000 74,200 76,400 78,700 81,000 83,500 85,900 88,600 91,200 Caltrans RW Sales 19,200 19,800 20,400 21,000 21,600 22,300 23,000 23,600 24,400 25,100 Other RW Sales 1,500,900 1,545,800 1,592,600 1,639,500 1,688,300 1,739,000 3,583,400 3,688,800 3,802,000 3,915,200__________________________________________________________________________________________ Subtotal $1,633,700 $1,682,600 $1,733,600 $1,784,600 $1,837,800 $1,892,900 $3,742,100 $3,852,000 $3,970,400 $4,088,500 Net Annual Impact to General Fund $1,266,200 $1,299,600 $1,334,500 $1,368,700 $1,404,400 $1,441,300 $2,990,400 $3,069,200 $3,155,400 $3,240,000 AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund Loss of Potable Water Sales ($3,077,809) ($3,170,136) ($3,265,264) ($3,363,174) ($3,464,050) ($3,567,976) ($7,258,285) ($7,475,979) ($7,700,324) ($7,931,311) Offset by Reduction in SFPUC Potable Water Purchases Reduction in SFPUC Potable Water Purchases (ccf) 200,174 200,174 200,174 200,174 200,174 200,174 395,348 395,348 395,348 395,348 SFPUC Wholesale Rate w/ 3% Esc (No BAWCA Bond Surchg)$9.71 $10.00 $10.30 $10.61 $10.93 $11.26 $11.60 $11.94 $12.30 $12.67__________________________________________________________________________________________ Total Est. Annual Potable City Water Purchases 1,943,900 2,002,200 2,062,300 2,124,200 2,187,900 2,253,500 4,584,300 4,721,800 4,863,500 5,009,400 Net Annual Revenue Loss to Water Enterprise ($1,133,909)($1,167,936)($1,202,964)($1,238,974)($1,276,150)($1,314,476)($2,673,985)($2,754,179)($2,836,824)($2,921,911) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund Valley Water Annual Option Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Valley Water Annual Effluent Purchase Payment tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Total Combined Impact to Palo Alto Net Impact to General Fund $1,266,200 $1,299,600 $1,334,500 $1,368,700 $1,404,400 $1,441,300 $2,990,400 $3,069,200 $3,155,400 $3,240,000 Net Revenue Loss Water Enterprise (1,133,909) (1,167,936) (1,202,964) (1,238,974) (1,276,150) (1,314,476) (2,673,985) (2,754,179) (2,836,824) (2,921,911) Valley Water Annual Option Payment to Wastewater Fund 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total Net Annual Impact to City $132,291 $131,664 $131,536 $129,726 $128,250 $126,824 $316,415 $315,021 $318,576 $318,089 Cumulative Impact to City $678,512 $810,175 $941,711 $1,071,436 $1,199,687 $1,326,511 $1,642,926 $1,957,947 $2,276,523 $2,594,612 Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 52 Packet Pg. 124 of 228 Table PA-6 Recycled Water Use Assumptions AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Projection of Recycled Water Impacts to Palo Alto General Fund Mountain View: No Increases in Recycled Water Use from Base Year 2026 Cost 1 2 3 4 5 6 7 8 9 10 Esc 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only City Use for Golf Course & Parks 86,450 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig)4,550 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 2,840 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 1,250 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total 97,590 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto Share of Projected RW Use 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% Proj Potable Irrig Water Rate (W7)3.0%$11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 Projected Recycled Water Rate [1]$0.96 $0.96 $1.00 $1.04 $1.08 $1.13 $1.17 $1.22 $1.27 $1.32 Recycled Water Sales Revenues & Expense Offsets Truck RW Sales $2,700 $5,500 $5,700 $5,900 $6,200 $6,400 $6,700 $6,900 $7,200 $7,500 MSC & Other Billed City Use 4,400 8,800 9,100 9,500 9,800 10,200 10,700 11,100 11,500 12,000 Caltrans RW Sales 1,200 2,400 2,500 2,600 2,700 2,800 2,900 3,000 3,200 3,300 Other RW Sales 0 0 0 0 0 0 0 0 0 0 Valley Water Annual Option Pymt 3.0%58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0 Valley Water Annual Effluent Purchase - - - - - - - - tbd tbd Reduced Potable Water Purchases 3.0%28,600 58,900 60,700 62,500 64,400 66,300 68,300 70,400 72,500 74,600__________________________________________________________________________________________ Subtotal 95,100 135,500 139,700 144,100 148,600 153,200 158,100 163,000 94,400 97,400 Recycled Water Expenses AWPS O&M Allocation [2,3,4,5]4.0%$94,000 $188,000 $195,500 $203,300 $211,400 $219,900 $228,700 $237,800 $247,300 $257,200 AWPS SRF Debt Service Allocation [6]0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal 94,000 188,000 195,500 203,300 211,400 219,900 228,700 237,800 247,300 257,200 Revenues Less Expenses $1,100 ($52,500)($55,800)($59,200)($62,800)($66,700)($70,600)($74,800)($152,900)($159,800) Cumulative Net Expenses $1,100 ($51,400)($107,200)($166,400)($229,200)($295,900)($366,500)($441,300)($594,200)($754,000) Projected RW Cost per Unit ($/ccf)$0.96 $0.96 $1.00 $1.04 $1.08 $1.13 $1.17 $1.22 $1.27 $1.32 Net RW Unit Cost After Offsets ($/ccf)($0.01) $0.27 $0.29 $0.30 $0.32 $0.34 $0.36 $0.38 $0.78 $0.82 1 Assumes recycled water sold at cost. 2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with 1.25 FTEs new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 53 Packet Pg. 125 of 228 Table PA-6 Recycled Water Use Assumptions AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Projection of Recycled Water Impacts to Palo Alto General Fund Mountain View: No Increases in Recycled Water Use from Base Year 2026 Cost 11 12 13 14 15 16 17 18 19 20 Esc 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf) City Use for Golf Course & Parks 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig)9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto Share of Projected RW Use 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% Proj Potable Irrig Water Rate (W7)3.0%$15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 Projected Recycled Water Rate [1]$1.37 $1.43 $1.48 $1.54 $1.60 $1.67 $1.73 $1.80 $1.88 $1.95 Recycled Water Sales Revenues & Expense Offsets Truck RW Sales $7,800 $8,100 $8,400 $8,800 $9,100 $9,500 $9,900 $10,200 $10,700 $11,100 MSC & Other Billed City Use 12,500 13,000 13,500 14,000 14,600 15,200 15,800 16,400 17,100 17,700 Caltrans RW Sales 3,400 3,600 3,700 3,900 4,000 4,200 4,300 4,500 4,700 4,900 Other RW Sales 0 0 0 0 0 0 0 0 0 0 Valley Water Annual Option Pymt 0 0 0 0 0 0 0 0 0 0 Valley Water Annual Effluent Purchase tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Reduced Potable Water Purchases 4.0%76,900 79,200 81,600 84,000 86,500 89,100 91,800 94,500 97,400 100,300__________________________________________________________________________________________ Subtotal 100,600 103,900 107,200 110,700 114,200 118,000 121,800 125,600 129,900 134,000 Recycled Water Expenses AWPS O&M Allocation [2,3,4,5]$267,500 $278,200 $289,300 $300,900 $312,900 $325,400 $338,400 $351,900 $366,000 $380,600 AWPS SRF Debt Service Allocation [6]0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal 267,500 278,200 289,300 300,900 312,900 325,400 338,400 351,900 366,000 380,600 Revenues Less Expenses ($166,900)($174,300)($182,100)($190,200)($198,700)($207,400)($216,600)($226,300)($236,100)($246,600) Cumulative Net Expenses ($920,900)($1,095,200)($1,277,300)($1,467,500)($1,666,200)($1,873,600)($2,090,200)($2,316,500)($2,552,600)($2,799,200) Projected RW Cost per Unit ($/ccf)$1.37 $1.43 $1.48 $1.54 $1.60 $1.67 $1.73 $1.80 $1.88 $1.95 Net RW Unit Cost After Offsets ($/ccf)$0.86 $0.89 $0.93 $0.97 $1.02 $1.06 $1.11 $1.16 $1.21 $1.26 1 Assumes recycled water sold at cost. 2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with 1.25 FTEs new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 54 Packet Pg. 126 of 228 Table PA-6 Recycled Water Use Assumptions AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Projection of Recycled Water Impacts to Palo Alto General Fund Mountain View: No Increases in Recycled Water Use from Base Year 2026 Cost 21 22 23 24 25 26 27 28 29 30 Esc 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51 2051/52 2052/53 2053/54 2054/55 Enhanced Recycled Water Use (ccf) City Use for Golf Course & Parks 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig)9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto Share of Projected RW Use 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% 31.5% Proj Potable Irrig Water Rate (W7)3.0%$20.66 $21.28 $21.92 $22.58 $23.26 $23.95 $24.67 $25.41 $26.18 $26.96 Projected Recycled Water Rate [1]$2.03 $2.11 $2.19 $2.28 $2.37 $2.47 $2.57 $2.67 $2.77 $2.89 Recycled Water Sales Revenues & Expense Offsets Truck RW Sales $11,500 $12,000 $12,500 $13,000 $13,500 $14,000 $14,600 $15,200 $15,800 $16,400 MSC & Other Billed City Use 18,400 19,200 19,900 20,700 21,600 22,400 23,300 24,300 25,200 26,200 Caltrans RW Sales 5,100 5,300 5,500 5,700 5,900 6,200 6,400 6,700 6,900 7,200 Other RW Sales 0 0 0 0 0 0 0 0 0 0 Valley Water Annual Option Pymt 0 0 0 0 0 0 0 0 0 0 Valley Water Annual Effluent Purchase tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Reduced Potable Water Purchases 4.0%103,300 106,400 109,600 112,900 116,300 119,800 123,400 127,100 130,900 134,800__________________________________________________________________________________________ Subtotal 138,300 142,900 147,500 152,300 157,300 162,400 167,700 173,300 178,800 184,600 Recycled Water Expenses AWPS O&M Allocation [2,3,4,5]$395,800 $411,600 $428,100 $445,200 $463,000 $481,500 $500,800 $520,800 $541,600 $563,300 AWPS SRF Debt Service Allocation [6]0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal 395,800 411,600 428,100 445,200 463,000 481,500 500,800 520,800 541,600 563,300 Revenues Less Expenses ($257,500)($268,700)($280,600)($292,900)($305,700)($319,100)($333,100)($347,500)($362,800)($378,700) Cumulative Net Expenses ($3,056,700)($3,325,400)($3,606,000)($3,898,900)($4,204,600)($4,523,700)($4,856,800)($5,204,300)($5,567,100)($5,945,800) Projected RW Cost per Unit ($/ccf)$2.03 $2.11 $2.19 $2.28 $2.37 $2.47 $2.57 $2.67 $2.77 $2.89 Net RW Unit Cost After Offsets ($/ccf)$1.32 $1.38 $1.44 $1.50 $1.57 $1.63 $1.71 $1.78 $1.86 $1.94 1 Assumes recycled water sold at cost. 2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with 1.25 FTEs new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 55 Packet Pg. 127 of 228 Table PA-7 Recycled Water Use Assumptions AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Net Annual Impacts to City of Palo Alto Mountain View: No Increases in Recycled Water Use from Base Year 2026 1 2 3 4 5 6 7 8 9 10 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Palo Alto Recycled Water Use (ccf) Base Year Recycled Water Use 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto General Fund: Palo Alto Golf Course & Parks Recycled Water Expenses ($94,000) ($188,000) ($195,500) ($203,300) ($211,400) ($219,900) ($228,700) ($237,800) ($247,300) ($257,200) Less Expense Offsets A) Potable Water Purchases for GC Fairway Irrig (ccf)50% Jan-Jun Transition from Potable to RW Use 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 Cost of Potable City Water Purchases $28,600 $58,900 $60,700 $62,500 $64,400 $66,300 $68,300 $70,400 $72,500 $74,600 B) Recycled Water Sales Revenues Truck RW Sales $2,700 $5,500 $5,700 $5,900 $6,200 $6,400 $6,700 $6,900 $7,200 $7,500 MSC & Other Billed City Use 4,400 8,800 9,100 9,500 9,800 10,200 10,700 11,100 11,500 12,000 Caltrans RW Sales 1,200 2,400 2,500 2,600 2,700 2,800 2,900 3,000 3,200 3,300 Other RW Sales 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal $8,300 $16,700 $17,300 $18,000 $18,700 $19,400 $20,300 $21,000 $21,900 $22,800 Net Annual Impact to General Fund ($57,100) ($112,400) ($117,500) ($122,800) ($128,300) ($134,200) ($140,100) ($146,400) ($152,900) ($159,800) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund Loss of Potable Water Sales ($28,600) ($58,900) ($60,700) ($62,500) ($64,400) ($66,300) ($68,300) ($70,400) ($72,500) ($74,600) Offset by Reduction in SFPUC Potable Water Purchases Reduction in SFPUC Potable Water Purchases (ccf) 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 5% Esc + BAWSCA Bond Surchg $6.48 $6.78 $7.10 $7.44 $7.79 $8.16 $8.54 $8.95 $9.38 $9.83__________________________________________________________________________________________ Total Est. Annual Potable City Water Purchases 16,200 33,900 35,500 37,200 38,900 40,800 42,700 44,800 46,900 49,100 Net Annual Revenue Loss to Water Enterprise ($12,400)($25,000)($25,200)($25,300)($25,500)($25,500)($25,600)($25,600)($25,600)($25,500) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund Valley Water Annual Option Payment $58,200 $59,900 $61,700 $63,600 $65,500 $67,500 $69,500 $71,600 $0 $0 Valley Water Annual Effluent Purchase Payment - - - - - - - - tbd tbd Total Combined Impact to Palo Alto Net Impact to General Fund ($57,100) ($112,400) ($117,500) ($122,800) ($128,300) ($134,200) ($140,100) ($146,400) ($152,900) ($159,800) Net Revenue Loss Water Enterprise (12,400) (25,000) (25,200) (25,300) (25,500) (25,500) (25,600) (25,600) (25,600) (25,500) Valley Water Annual Option Payment to Wastewater Fund 58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0__________________________________________________________________________________________ Total Net Annual Impact to City ($11,300) ($77,500) ($81,000) ($84,500) ($88,300) ($92,200) ($96,200) ($100,400) ($178,500) ($185,300) Cumulative Impact to City ($11,300) ($88,800) ($169,800) ($254,300) ($342,600) ($434,800) ($531,000) ($631,400) ($809,900) ($995,200) Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 56 Packet Pg. 128 of 228 Table PA-7 Recycled Water Use Assumptions AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Net Annual Impacts to City of Palo Alto Mountain View: No Increases in Recycled Water Use from Base Year 2026 11 12 13 14 15 16 17 18 19 20 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Palo Alto Recycled Water Use (ccf) Base Year Recycled Water Use 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto General Fund: Palo Alto Golf Course & Parks Recycled Water Expenses ($267,500) ($278,200) ($289,300) ($300,900) ($312,900) ($325,400) ($338,400) ($351,900) ($366,000) ($380,600) Less Expense Offsets A) Potable Water Purchases for GC Fairway Irrig (ccf) Transition from Potable to RW Use 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 Cost of Potable City Water Purchases $76,900 $79,200 $81,600 $84,000 $86,500 $89,100 $91,800 $94,500 $97,400 $100,300 B) Recycled Water Sales Revenues Truck RW Sales $7,800 $8,100 $8,400 $8,800 $9,100 $9,500 $9,900 $10,200 $10,700 $11,100 MSC & Other Billed City Use 12,500 13,000 13,500 14,000 14,600 15,200 15,800 16,400 17,100 17,700 Caltrans RW Sales 3,400 3,600 3,700 3,900 4,000 4,200 4,300 4,500 4,700 4,900 Other RW Sales 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal $23,700 $24,700 $25,600 $26,700 $27,700 $28,900 $30,000 $31,100 $32,500 $33,700 Net Annual Impact to General Fund ($166,900) ($174,300) ($182,100) ($190,200) ($198,700) ($207,400) ($216,600) ($226,300) ($236,100) ($246,600) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund Loss of Potable Water Sales ($76,900) ($79,200) ($81,600) ($84,000) ($86,500) ($89,100) ($91,800) ($94,500) ($97,400) ($100,300) Offset by Reduction in SFPUC Potable Water Purchases Reduction in SFPUC Potable Water Purchases (ccf) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 3% Esc (No BAWCA Bond Surchg)$9.71 $10.00 $10.30 $10.61 $10.93 $11.26 $11.60 $11.94 $12.30 $12.67__________________________________________________________________________________________ Total Est. Annual Potable City Water Purchases 48,600 50,000 51,500 53,100 54,600 56,300 58,000 59,700 61,500 63,400 Net Annual Revenue Loss to Water Enterprise ($28,300)($29,200)($30,100)($30,900)($31,900)($32,800)($33,800)($34,800)($35,900)($36,900) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund Valley Water Annual Option Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Valley Water Annual Effluent Purchase Payment tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Total Combined Impact to Palo Alto Net Impact to General Fund ($166,900) ($174,300) ($182,100) ($190,200) ($198,700) ($207,400) ($216,600) ($226,300) ($236,100) ($246,600) Net Revenue Loss Water Enterprise (28,300) (29,200) (30,100) (30,900) (31,900) (32,800) (33,800) (34,800) (35,900) (36,900) Valley Water Annual Option Payment to Wastewater Fund 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total Net Annual Impact to City ($195,200) ($203,500) ($212,200) ($221,100) ($230,600) ($240,200) ($250,400) ($261,100) ($272,000) ($283,500) Cumulative Impact to City ($1,190,400) ($1,393,900) ($1,606,100) ($1,827,200) ($2,057,800) ($2,298,000) ($2,548,400) ($2,809,500) ($3,081,500) ($3,365,000) Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 57 Packet Pg. 129 of 228 Table PA-7 Recycled Water Use Assumptions AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Net Annual Impacts to City of Palo Alto Mountain View: No Increases in Recycled Water Use from Base Year 2026 21 22 23 24 25 26 27 28 29 30 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51 2051/52 2052/53 2053/54 2054/55 Palo Alto Recycled Water Use (ccf) Base Year Recycled Water Use 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto General Fund: Palo Alto Golf Course & Parks Recycled Water Expenses ($395,800) ($411,600) ($428,100) ($445,200) ($463,000) ($481,500) ($500,800) ($520,800) ($541,600) ($563,300) Less Expense Offsets A) Potable Water Purchases for GC Fairway Irrig (ccf) Transition from Potable to RW Use 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $20.66 $21.28 $21.92 $22.58 $23.26 $23.95 $24.67 $25.41 $26.18 $26.96 Cost of Potable City Water Purchases $103,300 $106,400 $109,600 $112,900 $116,300 $119,800 $123,400 $127,100 $130,900 $134,800 B) Recycled Water Sales Revenues Truck RW Sales $11,500 $12,000 $12,500 $13,000 $13,500 $14,000 $14,600 $15,200 $15,800 $16,400 MSC & Other Billed City Use 18,400 19,200 19,900 20,700 21,600 22,400 23,300 24,300 25,200 26,200 Caltrans RW Sales 5,100 5,300 5,500 5,700 5,900 6,200 6,400 6,700 6,900 7,200 Other RW Sales 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal $35,000 $36,500 $37,900 $39,400 $41,000 $42,600 $44,300 $46,200 $47,900 $49,800 Net Annual Impact to General Fund ($257,500) ($268,700) ($280,600) ($292,900) ($305,700) ($319,100) ($333,100) ($347,500) ($362,800) ($378,700) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund Loss of Potable Water Sales ($103,300) ($106,400) ($109,600) ($112,900) ($116,300) ($119,800) ($123,400) ($127,100) ($130,900) ($134,800) Offset by Reduction in SFPUC Potable Water Purchases Reduction in SFPUC Potable Water Purchases (ccf) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 3% Esc (No BAWCA Bond Surchg)$13.05 $13.44 $13.85 $14.26 $14.69 $15.13 $15.58 $16.05 $16.53 $17.03__________________________________________________________________________________________ Total Est. Annual Potable City Water Purchases 65,300 67,200 69,200 71,300 73,400 75,600 77,900 80,300 82,700 85,100 Net Annual Revenue Loss to Water Enterprise ($38,000)($39,200)($40,400)($41,600)($42,900)($44,200)($45,500)($46,800)($48,200)($49,700) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund Valley Water Annual Option Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Valley Water Annual Effluent Purchase Payment tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Total Combined Impact to Palo Alto Net Impact to General Fund ($257,500) ($268,700) ($280,600) ($292,900) ($305,700) ($319,100) ($333,100) ($347,500) ($362,800) ($378,700) Net Revenue Loss Water Enterprise (38,000) (39,200) (40,400) (41,600) (42,900) (44,200) (45,500) (46,800) (48,200) (49,700) Valley Water Annual Option Payment to Wastewater Fund 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total Net Annual Impact to City ($295,500) ($307,900) ($321,000) ($334,500) ($348,600) ($363,300) ($378,600) ($394,300) ($411,000) ($428,400) Cumulative Impact to City ($3,660,500) ($3,968,400) ($4,289,400) ($4,623,900) ($4,972,500) ($5,335,800) ($5,714,400) ($6,108,700) ($6,519,700) ($6,948,100) Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 58 Packet Pg. 130 of 228 Table PA-8 Recycled Water Use Assumptions AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Projection of Recycled Water Impacts to Palo Alto General Fund Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount Cost 1 2 3 4 5 6 7 8 9 10 Esc 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only City Use for Golf Course & Parks 86,450 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig)4,550 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 2,840 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 1,250 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total 97,590 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto Share of Projected RW Use 31.5% 31.5% 29.4% 27.8% 25.8% 24.1% 24.1% 24.1% 24.1% 24.1% Proj Potable Irrig Water Rate (W7)3.0%$11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 Projected Recycled Water Rate [1]$0.96 $0.96 $0.94 $0.96 $0.95 $0.97 $1.05 $1.09 $1.13 $1.18 Recycled Water Sales Revenues & Expense Offsets Truck RW Sales $2,700 $5,500 $5,300 $5,400 $5,400 $5,500 $6,000 $6,200 $6,500 $6,700 MSC & Other Billed City Use 4,400 8,800 8,500 8,700 8,700 8,800 9,500 9,900 10,300 10,700 Caltrans RW Sales 1,200 2,400 2,300 2,400 2,400 2,400 2,600 2,700 2,800 3,000 Other RW Sales 0 0 0 0 0 0 0 0 0 0 Valley Water Annual Option Pymt 3.0%58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0 Valley Water Annual Effluent Purchase - - - - - - - - tbd tbd Reduced Potable Water Purchases 3.0%28,600 58,900 60,700 62,500 64,400 66,300 68,300 70,400 72,500 74,600__________________________________________________________________________________________ Subtotal 95,100 135,500 138,500 142,600 146,400 150,500 155,900 160,800 92,100 95,000 AWPS Total O&M Expenses 298,600 596,900 620,900 671,200 721,600 785,800 850,000 884,000 919,360 956,134 Recycled Water Expenses AWPS O&M Allocation [2,3,4,5]4.0%$94,000 $188,000 $182,600 $186,400 $186,200 $189,300 $204,800 $213,000 $221,500 $230,400 AWPS SRF Debt Service Allocation [6]0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal 94,000 188,000 182,600 186,400 186,200 189,300 204,800 213,000 221,500 230,400 Revenues Less Expenses $1,100 ($52,500)($44,100)($43,800)($39,800)($38,800)($48,900)($52,200)($129,400)($135,400) Cumulative Net Expenses $1,100 ($51,400)($95,500)($139,300)($179,100)($217,900)($266,800)($319,000)($448,400)($583,800) Projected RW Cost per Unit ($/ccf)$0.96 $0.96 $0.94 $0.96 $0.95 $0.97 $1.05 $1.09 $1.13 $1.18 Net RW Unit Cost After Offsets ($/ccf)($0.01) $0.27 $0.23 $0.22 $0.20 $0.20 $0.25 $0.27 $0.66 $0.69 1 Assumes recycled water sold at cost. 2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with no new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 59 Packet Pg. 131 of 228 Table PA-8 Recycled Water Use Assumptions AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Projection of Recycled Water Impacts to Palo Alto General Fund Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount Cost 11 12 13 14 15 16 17 18 19 20 Esc 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf) City Use for Golf Course & Parks 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig)9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto Share of Projected RW Use 24.1% 24.1% 24.1% 24.1% 24.1% 18.6% 15.1% 12.7% 11.8% 11.8% Proj Potable Irrig Water Rate (W7)3.0%$15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 Projected Recycled Water Rate [1]$1.23 $1.28 $1.33 $1.38 $1.44 $1.15 $1.25 $1.33 $1.51 $1.65 Recycled Water Sales Revenues & Expense Offsets Truck RW Sales $7,000 $7,300 $7,500 $7,800 $8,200 $6,600 $7,100 $7,600 $8,600 $9,400 MSC & Other Billed City Use 11,200 11,600 12,100 12,600 13,100 10,500 11,400 12,100 13,700 15,000 Caltrans RW Sales 3,100 3,200 3,300 3,500 3,600 2,900 3,100 3,300 3,800 4,100 Other RW Sales 0 0 0 0 0 0 0 0 0 0 Valley Water Annual Option Pymt 0 0 0 0 0 0 0 0 0 0 Valley Water Annual Effluent Purchase tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Reduced Potable Water Purchases 4.0%76,900 79,200 81,600 84,000 86,500 89,100 91,800 94,500 97,400 100,300__________________________________________________________________________________________ Subtotal 98,200 101,300 104,500 107,900 111,400 109,100 113,400 117,500 123,500 128,800 AWPS Total O&M Expenses 994,400 1,034,200 1,075,500 1,118,500 1,163,300 1,209,800 1,616,300 2,048,100 2,499,400 2,736,100 Recycled Water Expenses AWPS O&M Allocation [2,3,4,5]$239,600 $249,200 $259,200 $269,500 $280,300 $225,100 $244,000 $260,100 $294,000 $321,900 AWPS SRF Debt Service Allocation [6]0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal 239,600 249,200 259,200 269,500 280,300 225,100 244,000 260,100 294,000 321,900 Revenues Less Expenses ($141,400)($147,900)($154,700)($161,600)($168,900)($116,000)($130,600)($142,600)($170,500)($193,100) Cumulative Net Expenses ($725,200)($873,100)($1,027,800)($1,189,400)($1,358,300)($1,474,300)($1,604,900)($1,747,500)($1,918,000)($2,111,100) Projected RW Cost per Unit ($/ccf)$1.23 $1.28 $1.33 $1.38 $1.44 $1.15 $1.25 $1.33 $1.51 $1.65 Net RW Unit Cost After Offsets ($/ccf)$0.72 $0.76 $0.79 $0.83 $0.87 $0.59 $0.67 $0.73 $0.87 $0.99 1 Assumes recycled water sold at cost. 2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with no new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 60 Packet Pg. 132 of 228 Table PA-8 Recycled Water Use Assumptions AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Projection of Recycled Water Impacts to Palo Alto General Fund Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount Cost 21 22 23 24 25 26 27 28 29 30 Esc 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51 2051/52 2052/53 2053/54 2054/55 Enhanced Recycled Water Use (ccf) City Use for Golf Course & Parks 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig)9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto Share of Projected RW Use 11.8% 11.8% 11.8% 11.8% 11.8% 11.8% 11.8% 11.8% 11.8% 11.8% Proj Potable Irrig Water Rate (W7)3.0%$20.66 $21.28 $21.92 $22.58 $23.26 $23.95 $24.67 $25.41 $26.18 $26.96 Projected Recycled Water Rate [1]$1.72 $1.78 $1.86 $1.93 $2.01 $2.09 $2.17 $2.26 $2.35 $2.44 Recycled Water Sales Revenues & Expense Offsets Truck RW Sales $9,700 $10,100 $10,500 $11,000 $11,400 $11,900 $12,300 $12,800 $13,300 $13,900 MSC & Other Billed City Use 15,600 16,200 16,900 17,500 18,200 19,000 19,700 20,500 21,300 22,200 Caltrans RW Sales 4,300 4,500 4,600 4,800 5,000 5,200 5,400 5,600 5,900 6,100 Other RW Sales 0 0 0 0 0 0 0 0 0 0 Valley Water Annual Option Pymt 0 0 0 0 0 0 0 0 0 0 Valley Water Annual Effluent Purchase tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Reduced Potable Water Purchases 4.0%103,300 106,400 109,600 112,900 116,300 119,800 123,400 127,100 130,900 134,800__________________________________________________________________________________________ Subtotal 132,900 137,200 141,600 146,200 150,900 155,900 160,800 166,000 171,400 177,000 AWPS Total O&M Expenses 2,845,500 2,959,300 3,077,700 3,200,800 3,328,900 3,462,000 3,600,500 3,744,500 3,894,300 4,050,100 Recycled Water Expenses AWPS O&M Allocation [2,3,4,5]$334,800 $348,200 $362,100 $376,600 $391,600 $407,300 $423,600 $440,500 $458,200 $476,500 AWPS SRF Debt Service Allocation [6]0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal 334,800 348,200 362,100 376,600 391,600 407,300 423,600 440,500 458,200 476,500 Revenues Less Expenses ($201,900)($211,000)($220,500)($230,400)($240,700)($251,400)($262,800)($274,500)($286,800)($299,500) Cumulative Net Expenses ($2,313,000)($2,524,000)($2,744,500)($2,974,900)($3,215,600)($3,467,000)($3,729,800)($4,004,300)($4,291,100)($4,590,600) Projected RW Cost per Unit ($/ccf)$1.72 $1.78 $1.86 $1.93 $2.01 $2.09 $2.17 $2.26 $2.35 $2.44 Net RW Unit Cost After Offsets ($/ccf)$1.03 $1.08 $1.13 $1.18 $1.23 $1.29 $1.35 $1.41 $1.47 $1.53 1 Assumes recycled water sold at cost. 2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with no new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 61 Packet Pg. 133 of 228 Table PA-9 Recycled Water Use Assumptions AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Net Annual Impacts to City of Palo Alto Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount 1 2 3 4 5 6 7 8 9 10 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Palo Alto Recycled Water Use (ccf) Base Year Recycled Water Use 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto General Fund: Palo Alto Golf Course & Parks Recycled Water Expenses ($94,000) ($188,000) ($182,600) ($186,400) ($186,200) ($189,300) ($204,800) ($213,000) ($221,500) ($230,400) Less Expense Offsets A) Potable Water Purchases for GC Fairway Irrig (ccf)50% Jan-Jun Transition from Potable to RW Use 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 Cost of Potable City Water Purchases $28,600 $58,900 $60,700 $62,500 $64,400 $66,300 $68,300 $70,400 $72,500 $74,600 B) Recycled Water Sales Revenues Truck RW Sales $2,700 $5,500 $5,300 $5,400 $5,400 $5,500 $6,000 $6,200 $6,500 $6,700 MSC & Other Billed City Use 4,400 8,800 8,500 8,700 8,700 8,800 9,500 9,900 10,300 10,700 Caltrans RW Sales 1,200 2,400 2,300 2,400 2,400 2,400 2,600 2,700 2,800 3,000 Other RW Sales 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal $8,300 $16,700 $16,100 $16,500 $16,500 $16,700 $18,100 $18,800 $19,600 $20,400 Net Annual Impact to General Fund ($57,100) ($112,400) ($105,800) ($107,400) ($105,300) ($106,300) ($118,400) ($123,800) ($129,400) ($135,400) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund Loss of Potable Water Sales ($28,600) ($58,900) ($60,700) ($62,500) ($64,400) ($66,300) ($68,300) ($70,400) ($72,500) ($74,600) Offset by Reduction in SFPUC Potable Water Purchases Reduction in SFPUC Potable Water Purchases (ccf) 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 5% Esc + BAWSCA Bond Surchg $6.48 $6.78 $7.10 $7.44 $7.79 $8.16 $8.54 $8.95 $9.38 $9.83__________________________________________________________________________________________ Total Est. Annual Potable City Water Purchases 16,200 33,900 35,500 37,200 38,900 40,800 42,700 44,800 46,900 49,100 Net Annual Revenue Loss to Water Enterprise ($12,400)($25,000)($25,200)($25,300)($25,500)($25,500)($25,600)($25,600)($25,600)($25,500) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund Valley Water Annual Option Payment $58,200 $59,900 $61,700 $63,600 $65,500 $67,500 $69,500 $71,600 $0 $0 Valley Water Annual Effluent Purchase Payment - - - - - - - - tbd tbd Total Combined Impact to Palo Alto Net Impact to General Fund ($57,100) ($112,400) ($105,800) ($107,400) ($105,300) ($106,300) ($118,400) ($123,800) ($129,400) ($135,400) Net Revenue Loss Water Enterprise (12,400) (25,000) (25,200) (25,300) (25,500) (25,500) (25,600) (25,600) (25,600) (25,500) Valley Water Annual Option Payment to Wastewater Fund 58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0__________________________________________________________________________________________ Total Net Annual Impact to City ($11,300) ($77,500) ($69,300) ($69,100) ($65,300) ($64,300) ($74,500) ($77,800) ($155,000) ($160,900) Cumulative Impact to City ($11,300) ($88,800) ($158,100) ($227,200) ($292,500) ($356,800) ($431,300) ($509,100) ($664,100) ($825,000) Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 62 Packet Pg. 134 of 228 Table PA-9 Recycled Water Use Assumptions AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Net Annual Impacts to City of Palo Alto Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount 11 12 13 14 15 16 17 18 19 20 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Palo Alto Recycled Water Use (ccf) Base Year Recycled Water Use 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto General Fund: Palo Alto Golf Course & Parks Recycled Water Expenses ($239,600) ($249,200) ($259,200) ($269,500) ($280,300) ($225,100) ($244,000) ($260,100) ($294,000) ($321,900) Less Expense Offsets A) Potable Water Purchases for GC Fairway Irrig (ccf) Transition from Potable to RW Use 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 Cost of Potable City Water Purchases $76,900 $79,200 $81,600 $84,000 $86,500 $89,100 $91,800 $94,500 $97,400 $100,300 B) Recycled Water Sales Revenues Truck RW Sales $7,000 $7,300 $7,500 $7,800 $8,200 $6,600 $7,100 $7,600 $8,600 $9,400 MSC & Other Billed City Use 11,200 11,600 12,100 12,600 13,100 10,500 11,400 12,100 13,700 15,000 Caltrans RW Sales 3,100 3,200 3,300 3,500 3,600 2,900 3,100 3,300 3,800 4,100 Other RW Sales 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal $21,300 $22,100 $22,900 $23,900 $24,900 $20,000 $21,600 $23,000 $26,100 $28,500 Net Annual Impact to General Fund ($141,400) ($147,900) ($154,700) ($161,600) ($168,900) ($116,000) ($130,600) ($142,600) ($170,500) ($193,100) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund Loss of Potable Water Sales ($76,900) ($79,200) ($81,600) ($84,000) ($86,500) ($89,100) ($91,800) ($94,500) ($97,400) ($100,300) Offset by Reduction in SFPUC Potable Water Purchases Reduction in SFPUC Potable Water Purchases (ccf) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 3% Esc (No BAWCA Bond Surchg)$9.71 $10.00 $10.30 $10.61 $10.93 $11.26 $11.60 $11.94 $12.30 $12.67__________________________________________________________________________________________ Total Est. Annual Potable City Water Purchases 48,600 50,000 51,500 53,100 54,600 56,300 58,000 59,700 61,500 63,400 Net Annual Revenue Loss to Water Enterprise ($28,300)($29,200)($30,100)($30,900)($31,900)($32,800)($33,800)($34,800)($35,900)($36,900) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund Valley Water Annual Option Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Valley Water Annual Effluent Purchase Payment tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Total Combined Impact to Palo Alto Net Impact to General Fund ($141,400) ($147,900) ($154,700) ($161,600) ($168,900) ($116,000) ($130,600) ($142,600) ($170,500) ($193,100) Net Revenue Loss Water Enterprise (28,300) (29,200) (30,100) (30,900) (31,900) (32,800) (33,800) (34,800) (35,900) (36,900) Valley Water Annual Option Payment to Wastewater Fund 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total Net Annual Impact to City ($169,700) ($177,100) ($184,800) ($192,500) ($200,800) ($148,800) ($164,400) ($177,400) ($206,400) ($230,000) Cumulative Impact to City ($994,700) ($1,171,800) ($1,356,600) ($1,549,100) ($1,749,900) ($1,898,700) ($2,063,100) ($2,240,500) ($2,446,900) ($2,676,900) Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 63 Packet Pg. 135 of 228 Table PA-9 Recycled Water Use Assumptions AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 Net Annual Impacts to City of Palo Alto Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount 21 22 23 24 25 26 27 28 29 30 2045/46 2046/47 2047/48 2048/49 2049/50 2050/51 2051/52 2052/53 2053/54 2054/55 Palo Alto Recycled Water Use (ccf) Base Year Recycled Water Use 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto General Fund: Palo Alto Golf Course & Parks Recycled Water Expenses ($334,800) ($348,200) ($362,100) ($376,600) ($391,600) ($407,300) ($423,600) ($440,500) ($458,200) ($476,500) Less Expense Offsets A) Potable Water Purchases for GC Fairway Irrig (ccf) Transition from Potable to RW Use 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $20.66 $21.28 $21.92 $22.58 $23.26 $23.95 $24.67 $25.41 $26.18 $26.96 Cost of Potable City Water Purchases $103,300 $106,400 $109,600 $112,900 $116,300 $119,800 $123,400 $127,100 $130,900 $134,800 B) Recycled Water Sales Revenues Truck RW Sales $9,700 $10,100 $10,500 $11,000 $11,400 $11,900 $12,300 $12,800 $13,300 $13,900 MSC & Other Billed City Use 15,600 16,200 16,900 17,500 18,200 19,000 19,700 20,500 21,300 22,200 Caltrans RW Sales 4,300 4,500 4,600 4,800 5,000 5,200 5,400 5,600 5,900 6,100 Other RW Sales 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal $29,600 $30,800 $32,000 $33,300 $34,600 $36,100 $37,400 $38,900 $40,500 $42,200 Net Annual Impact to General Fund ($201,900) ($211,000) ($220,500) ($230,400) ($240,700) ($251,400) ($262,800) ($274,500) ($286,800) ($299,500) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund Loss of Potable Water Sales ($103,300) ($106,400) ($109,600) ($112,900) ($116,300) ($119,800) ($123,400) ($127,100) ($130,900) ($134,800) Offset by Reduction in SFPUC Potable Water Purchases Reduction in SFPUC Potable Water Purchases (ccf) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 3% Esc (No BAWCA Bond Surchg)$13.05 $13.44 $13.85 $14.26 $14.69 $15.13 $15.58 $16.05 $16.53 $17.03__________________________________________________________________________________________ Total Est. Annual Potable City Water Purchases 65,300 67,200 69,200 71,300 73,400 75,600 77,900 80,300 82,700 85,100 Net Annual Revenue Loss to Water Enterprise ($38,000)($39,200)($40,400)($41,600)($42,900)($44,200)($45,500)($46,800)($48,200)($49,700) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund Valley Water Annual Option Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Valley Water Annual Effluent Purchase Payment tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Total Combined Impact to Palo Alto Net Impact to General Fund ($201,900) ($211,000) ($220,500) ($230,400) ($240,700) ($251,400) ($262,800) ($274,500) ($286,800) ($299,500) Net Revenue Loss Water Enterprise (38,000) (39,200) (40,400) (41,600) (42,900) (44,200) (45,500) (46,800) (48,200) (49,700) Valley Water Annual Option Payment to Wastewater Fund 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total Net Annual Impact to City ($239,900) ($250,200) ($260,900) ($272,000) ($283,600) ($295,600) ($308,300) ($321,300) ($335,000) ($349,200) Cumulative Impact to City ($2,916,800) ($3,167,000) ($3,427,900) ($3,699,900) ($3,983,500) ($4,279,100) ($4,587,400) ($4,908,700) ($5,243,700) ($5,592,900) Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 64 Packet Pg. 136 of 228 Table PA-10 Recycled Water Use Assumptions AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 AWPS Phase 1 Total Cost Allocations by Year Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount 1 2 3 4 5 6 7 8 9 10 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only Palo Alto 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Mountain View 212,252 424,504 424,504 468,418 507,453 561,126 614,798 614,798 614,798 614,798__________________________________________________________________________________________ Total 309,839 619,678 619,678 663,592 702,627 756,300 809,973 809,973 809,973 809,973 Cumulative Change in Use % - - 0.0% 7.1% 13.4% 22.0% 30.7% 30.7% 30.7% 30.7% Share of Annual Enhnaced Recycled Water Use Palo Alto 31.5% 31.5% 31.5% 29.4% 27.8% 25.8% 24.1% 24.1% 24.1% 24.1% Mountain View 68.5% 68.5% 68.5% 70.6% 72.2% 74.2% 75.9% 75.9% 75.9% 75.9%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Debt Service Allocation Palo Alto 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Mountain View 100% 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000__________________________________________________________________________________________ Total 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 Operating Cost Allocation Based on each agency's % share of total annual enhanced recycled water use. Palo Alto $94,000 $188,000 $195,600 $197,400 $200,400 $202,800 $204,800 $213,000 $221,500 $230,400 Mountain View 204,600 $408,900 $425,300 $473,800 $521,200 583,000 645,200 671,000 697,800 725,700__________________________________________________________________________________________ Total 298,600 596,900 620,900 671,200 721,600 785,800 850,000 884,000 919,360 956,134 Total Cost Allocation Palo Alto $94,000 $188,000 $195,600 $197,400 $200,400 $202,800 $204,800 $213,000 $221,500 $230,400 Mountain View 1,640,600 1,844,900 1,861,300 1,909,800 1,957,200 2,019,000 2,081,200 2,107,000 2,133,800 2,161,700__________________________________________________________________________________________ Total 1,734,600 2,032,900 2,056,900 2,107,200 2,157,600 2,221,800 2,286,000 2,320,000 2,355,300 2,392,100 All-In Cost per Unit ($/ccf) Palo Alto $0.96 $0.96 $1.00 $1.01 $1.03 $1.04 $1.05 $1.09 $1.13 $1.18 Mountain View 7.73 4.35 4.38 4.08 3.86 3.60 3.39 3.43 3.47 3.52__________________________________________________________________________________________ Total 5.60 3.28 3.32 3.18 3.07 2.94 2.82 2.86 2.91 2.95 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 65 Packet Pg. 137 of 228 Table PA-10 Recycled Water Use Assumptions AWPS Preliminary Financial Plan Palo Alto: No Increases in Recycled Water Use from Base Year 2026 AWPS Phase 1 Total Cost Allocations by Year Mountain View: Recycled Water Use Increases to Full 3.0 MGD Contract Amount 11 12 13 14 15 16 17 18 19 20 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf) Palo Alto 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Mountain View 614,798 614,798 614,798 614,798 614,798 614,798 853,887 1,097,854 1,341,822 1,463,806__________________________________________________________________________________________ Total 809,973 809,973 809,973 809,973 809,973 809,973 1,049,061 1,293,029 1,536,996 1,658,980 Cumulative Change in Use % 30.7% 30.7% 30.7% 30.7% 30.7% 30.7% 69.3% 108.7% 148.0% 167.7% Share of Annual Enhnaced Recycled Water Use Palo Alto 24.1% 24.1% 24.1% 24.1% 24.1% 24.1% 18.6% 15.1% 12.7% 11.8% Mountain View 75.9% 75.9% 75.9% 75.9% 75.9% 75.9% 81.4% 84.9% 87.3% 88.2%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Debt Service Allocation Palo Alto 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Mountain View 100% 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000__________________________________________________________________________________________ Total 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 Operating Cost Allocation Based on each agency's % share of total annual enhanced recycled water use. Palo Alto $239,600 $249,200 $259,200 $269,500 $280,300 $291,500 $300,700 $309,100 $317,400 $321,900 Mountain View 754,800 785,000 816,400 849,000 883,000 918,300 1,315,600 1,738,900 2,182,000 2,414,200__________________________________________________________________________________________ Total 994,379 1,034,154 1,075,520 1,118,541 1,163,283 1,209,814 1,616,264 2,048,087 2,499,427 2,736,076 Total Cost Allocation Palo Alto $239,600 $249,200 $259,200 $269,500 $280,300 $291,500 $300,700 $309,100 $317,400 $321,900 Mountain View 2,190,800 2,221,000 2,252,400 2,285,000 2,319,000 2,354,300 2,751,600 3,174,900 3,618,000 3,850,200__________________________________________________________________________________________ Total 2,430,400 2,470,200 2,511,600 2,554,500 2,599,300 2,645,800 3,052,300 3,484,000 3,935,400 4,172,100 All-In Cost per Unit ($/ccf) Palo Alto $1.23 $1.28 $1.33 $1.38 $1.44 $1.49 $1.54 $1.58 $1.63 $1.65 Mountain View 3.56 3.61 3.66 3.72 3.77 3.83 3.22 2.89 2.70 2.63__________________________________________________________________________________________ Total 3.00 3.05 3.10 3.15 3.21 3.27 2.91 2.69 2.56 2.51 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 66 Packet Pg. 138 of 228 Scenario B No Phase III Recycled Water Expansion with Direct Potable Reuse Starting 2041 Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 67 Packet Pg. 139 of 228 Table 6B No Palo Alto Phase III Scenario AWPS Preliminary Financial Plan Estimated Enhanced (Blended AWPS) Recycled Water Use (MGD) Year Palo Alto Mt View [1] Total Palo Alto Mountain View 2020 0.33 0.33 0.66 50.0% 50.0% 2021 0.25 0.37 0.62 40.3% 59.7% 2022 0.40 0.40 0.80 50.0% 50.0% 2023 0.40 0.40 0.80 50.0% 50.0% 2024 0.40 0.40 0.80 50.0% 50.0% 2025 0.40 0.55 0.95 42.1% 57.9% 2026 [2] 0.40 0.87 1.27 31.5% 68.5% 2027 0.40 0.87 1.27 31.5% 68.5% 2028 0.40 0.96 1.36 29.4% 70.6% 2029 0.40 1.04 1.44 27.8% 72.2% 2030 0.40 1.15 1.55 25.8% 74.2% 2031 0.40 1.26 1.66 24.1% 75.9% 2032 0.40 1.26 1.66 24.1% 75.9% 2033 0.40 1.26 1.66 24.1% 75.9% 2034 0.40 1.26 1.66 24.1% 75.9% 2035 0.40 1.26 1.66 24.1% 75.9% 2036 0.40 1.26 1.66 24.1% 75.9% 2037 0.40 1.26 1.66 24.1% 75.9% 2038 0.40 1.26 1.66 24.1% 75.9% 2039 0.40 1.26 1.66 24.1% 75.9% 2040 [3,4] 0.40 1.26 1.66 24.1% 75.9% 2041 1.20 1.75 2.95 40.7% 59.3% 2042 1.20 2.25 3.45 34.8% 65.2% 2043 1.20 2.75 3.95 30.4% 69.6% 2044 1.20 3.00 4.20 28.6% 71.4% 2045 1.20 3.00 4.20 28.6% 71.4% 2046 1.20 3.00 4.20 28.6% 71.4% 2047 1.20 3.00 4.20 28.6% 71.4% 2048 1.20 3.00 4.20 28.6% 71.4% 2049 1.20 3.00 4.20 28.6% 71.4% 2050 1.20 3.00 4.20 28.6% 71.4% 2051 1.20 3.00 4.20 28.6% 71.4% 2052 1.20 3.00 4.20 28.6% 71.4% Source: Preliminary estimates developed by Woodard & Curran. 1 Based on recycled water demand projections used for AWPS grant application. 2 Assumes Mountain View gradually increases recycled water demand to 1.25 MGD after Phase 1 startup. 3 Assumes Palo Alto does not move forward with Phase III recycled water expansion and subsequently increases recycled water use for Direct Potable Reuse (DPR) 4 Assumes Mountain View moves forward with recycled water system expansions and increases recycled water use over the next 4 years to their full contractual amount of 3 MGD. Estimated Recycled Water Use (MGD) % of Total Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 68 Packet Pg. 140 of 228 Table 7B No Palo Alto Phase III Scenario AWPS Preliminary Financial Plan Estimated Enhanced (Blended AWPS) Recycled Water Use (AF) Year Palo Alto Mt View [1] Total Palo Alto Mountain View 2020 370 370 739 50.0% 50.0% 2021 280 414 694 40.3% 59.7% 2022 448 448 896 50.0% 50.0% 2023 448 448 896 50.0% 50.0% 2024 448 448 896 50.0% 50.0% 2025 448 616 1,064 42.1% 57.9% 2026 [2] 448 975 1,423 31.5% 68.5% 2027 448 975 1,423 31.5% 68.5% 2028 448 1,075 1,523 29.4% 70.6% 2029 448 1,165 1,613 27.8% 72.2% 2030 448 1,288 1,736 25.8% 74.2% 2031 448 1,411 1,859 24.1% 75.9% 2032 448 1,411 1,859 24.1% 75.9% 2033 448 1,411 1,859 24.1% 75.9% 2034 448 1,411 1,859 24.1% 75.9% 2035 448 1,411 1,859 24.1% 75.9% 2036 448 1,411 1,859 24.1% 75.9% 2037 448 1,411 1,859 24.1% 75.9% 2038 448 1,411 1,859 24.1% 75.9% 2039 448 1,411 1,859 24.1% 75.9% 2040 [3,4] 448 1,411 1,859 24.1% 75.9% 2041 1,344 1,960 3,304 40.7% 59.3% 2042 1,344 2,520 3,865 34.8% 65.2% 2043 1,344 3,080 4,425 30.4% 69.6% 2044 1,344 3,360 4,705 28.6% 71.4% 2045 1,344 3,360 4,705 28.6% 71.4% 2046 1,344 3,360 4,705 28.6% 71.4% 2047 1,344 3,360 4,705 28.6% 71.4% 2048 1,344 3,360 4,705 28.6% 71.4% 2049 1,344 3,360 4,705 28.6% 71.4% 2050 1,344 3,360 4,705 28.6% 71.4% 2051 1,344 3,360 4,705 28.6% 71.4% 2052 1,344 3,360 4,705 28.6% 71.4% Source: Preliminary estimates developed by Woodard & Curran. 1 Based on recycled water demand projections used for AWPS grant application. 2 Assumes Mountain View gradually increases recycled water demand to 1.25 MGD after Phase 1 startup. 3 Assumes Palo Alto does not move forward with Phase III recycled water expansion and subsequently increases recycled water use for Direct Potable Reuse (DPR) 4 Assumes Mountain View moves forward with recycled water system expansions and increases recycled water use over the next 4 years to their full contractual amount of 3 MGD. Estimated Recycled Water Use (AF) % of Total Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 69 Packet Pg. 141 of 228 Table 8B No Palo Alto Phase III Scenario AWPS Preliminary Financial Plan Estimated Enhanced (Blended AWPS) Recycled Water Use (ccf) Year Palo Alto Mt View [1] Total Palo Alto Mountain View 2020 161,019 161,019 322,037 50.0% 50.0% 2021 121,984 180,536 302,520 40.3% 59.7% 2022 195,174 195,174 390,348 50.0% 50.0% 2023 195,174 195,174 390,348 50.0% 50.0% 2024 195,174 195,174 390,348 50.0% 50.0% 2025 195,174 268,364 463,539 42.1% 57.9% 2026 [2] 195,174 424,504 619,678 31.5% 68.5% 2027 195,174 424,504 619,678 31.5% 68.5% 2028 195,174 468,418 663,592 29.4% 70.6% 2029 195,174 507,453 702,627 27.8% 72.2% 2030 195,174 561,126 756,300 25.8% 74.2% 2031 195,174 614,798 809,973 24.1% 75.9% 2032 195,174 614,798 809,973 24.1% 75.9% 2033 195,174 614,798 809,973 24.1% 75.9% 2034 195,174 614,798 809,973 24.1% 75.9% 2035 195,174 614,798 809,973 24.1% 75.9% 2036 195,174 614,798 809,973 24.1% 75.9% 2037 195,174 614,798 809,973 24.1% 75.9% 2038 195,174 614,798 809,973 24.1% 75.9% 2039 195,174 614,798 809,973 24.1% 75.9% 2040 [3,4] 195,174 614,798 809,973 24.1% 75.9% 2041 585,522 853,887 1,439,409 40.7% 59.3% 2042 585,522 1,097,854 1,683,377 34.8% 65.2% 2043 585,522 1,341,822 1,927,344 30.4% 69.6% 2044 585,522 1,463,806 2,049,328 28.6% 71.4% 2045 585,522 1,463,806 2,049,328 28.6% 71.4% 2046 585,522 1,463,806 2,049,328 28.6% 71.4% 2047 585,522 1,463,806 2,049,328 28.6% 71.4% 2048 585,522 1,463,806 2,049,328 28.6% 71.4% 2049 585,522 1,463,806 2,049,328 28.6% 71.4% 2050 585,522 1,463,806 2,049,328 28.6% 71.4% 2051 585,522 1,463,806 2,049,328 28.6% 71.4% 2052 585,522 1,463,806 2,049,328 28.6% 71.4% Source: Preliminary estimates developed by Woodard & Curran. 1 Based on recycled water demand projections used for AWPS grant application. 2 Assumes Mountain View gradually increases recycled water demand to 1.25 MGD after Phase 1 startup. 3 Assumes Palo Alto does not move forward with Phase III recycled water expansion and subsequently increases recycled water use for Direct Potable Reuse (DPR) 4 Assumes Mountain View moves forward with recycled water system expansions and increases recycled water use over the next 4 years to their full contractual amount of 3 MGD. Estimated Recycled Water Use (ccf) % of Total Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 70 Packet Pg. 142 of 228 Table 9B No Palo Alto Phase III Scenario AWPS Preliminary Financial Plan Summary of AWPS Capacity & Recycled Water Use Total Palo Alto Mountain View AWPS Phase 1 Capacity Phase 1 Capacity 1.125 mgd 0.281 mgd 0.844 mgd (Reverse osmosis permeate) % Allocation of Capacity 25% 75% Enhanced Recycled Water Production, AWPS at 1.25 mgd [1] Enhanced RW Range 2.06 - 2.65 mgd 0.52 - 0.66 mgd 1.55 - 1.98 mgd Average 2.35 mgd 0.59 mgd 1.76 mgd % Allocation of Production 25% 75% AWPS Phase 1 Estimated Annual Enhanced Recycled Water Use 2026 Phase 1 Demand in 2026 mgd 1.27 mgd 0.40 mgd 0.87 mgd AF 1,423 AF 448 AF 975 AF ccf 849,007 ccf 424,504 ccf 424,504 ccf % of Total Enhanced RW Use 31.5% 68.5% AWPS Phase 1 Estimated Annual Enhanced Recycled Water Use 2031 - 2040 Phase 1 Demand in 2031 mgd 1.66 mgd 0.40 mgd 1.26 mgd AF 1,859 AF 448 AF 1,411 AF ccf 809,973 ccf 195,174 ccf 614,798 ccf % of Total Enhanced RW Use 24.1% 75.9% [1] Based on Black & Veatch's AWPS Basis of Design Report (2021) Table 4-5, the average blending ratio of recycled water to reverse osmosis permeate to maintain between 400 mg/L - 500 gm/L total dissolved solids is 1:0.74 to 1:1.20 Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 71 Packet Pg. 143 of 228 Table 10B No Palo Alto Phase III Scenario AWPS Preliminary Financial Plan Assumes O&M increase is about half of what was calculated for increased base case demand AWPS Phase 1 Operating Costs & Allocations by Year Under the new scenario, the increase in total RW use is 49.4% of the increase under the base case 1 2 3 4 5 6 7 8 9 10 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only Palo Alto 78,070 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Mountain View 169,801 424,504 424,504 468,418 507,453 561,126 614,798 614,798 614,798 614,798__________________________________________________________________________________________ Total 247,871 619,678 619,678 663,592 702,627 756,300 809,973 809,973 809,973 809,973 Cumulative Change in Use % - - 0.0% 7.1% 13.4% 22.0% 30.7% 30.7% 30.7% 30.7% Cost Escalator (Base Year = 2023 + 4% Escalation)1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 1.539 AWPS Phase 1 O&M Fixed Operating Expenses O&M Labor (Assumes No New Labor)$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable Operating Expenses Assumes 50% Maintenance & Repairs 146,500 292,900 304,600 316,800 329,500 342,700 356,400 370,600 385,500 400,900 Energy 80,300 160,600 167,100 173,700 180,700 187,900 195,400 203,200 211,400 219,800 Chemicals 56,900 113,700 118,300 123,000 127,900 133,000 138,400 143,900 149,700 155,600 Membrane Consumables 14,900 29,700 30,900 32,100 33,400 34,700 36,100 37,600 39,100 40,600__________________________________________________________________________________________ Total Annual O&M 298,600 596,900 620,900 $645,600 $671,500 $698,300 $726,300 $755,300 $785,700 $816,900 AWPS O&M Cost per Unit ($/ccf)$1.20 $0.96 $1.00 $0.97 $0.96 $0.92 $0.90 $0.93 $0.97 $1.01 Share of Annual Recycled Water Use Palo Alto 31.5% 31.5% 31.5% 29.4% 27.8% 25.8% 24.1% 24.1% 24.1% 24.1% Mountain View 68.5% 68.5% 68.5% 70.6% 72.2% 74.2% 75.9% 75.9% 75.9% 75.9%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% AWPS O&M Cost Allocation Palo Alto $94,000 $188,000 $195,600 $189,900 $186,500 $180,200 $175,000 $182,000 $189,300 $196,800 Mountain View 204,600 408,900 425,300 455,700 485,000 518,100 551,300 573,300 596,400 620,100__________________________________________________________________________________________ Total 298,600 596,900 620,900 645,600 671,500 698,300 726,300 755,300 785,700 816,900 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 72 Packet Pg. 144 of 228 Table 10B No Palo Alto Phase III Scenario AWPS Preliminary Financial Plan AWPS Phase 1 Operating Costs & Allocations by Year 11 12 13 14 15 16 17 18 19 20 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf)Start DPR Palo Alto 195,174 195,174 195,174 195,174 195,174 195,174 585,522 585,522 585,522 585,522 Mountain View 614,798 614,798 614,798 614,798 614,798 614,798 853,887 1,097,854 1,341,822 1,463,806__________________________________________________________________________________________ Total 809,973 809,973 809,973 809,973 809,973 809,973 1,439,409 1,683,377 1,927,344 2,049,328 Cumulative Change in Use % 30.7% 30.7% 30.7% 30.7% 30.7% 30.7% 132.3% 171.7% 211.0% 230.7% Cost Escalator (Base Year = 2023 + 4% Escalation)1.601 1.665 1.732 1.801 1.873 1.948 2.026 2.107 2.191 2.279 AWPS Phase 1 O&M Fixed Operating Expenses O&M Labor (Assumes No New Labor)$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Variable Operating Expenses Prelim Est ? Maintenance & Repairs 416,900 433,600 450,900 469,000 487,700 507,200 937,500 1,140,200 1,357,700 1,501,400 Energy 228,600 237,800 247,300 257,200 267,500 278,200 514,100 625,300 744,500 823,300 Chemicals 161,900 168,300 175,100 182,100 189,400 196,900 364,000 442,700 527,100 582,900 Membrane Consumables 42,300 44,000 45,700 47,500 49,400 51,400 95,000 115,600 137,600 152,200__________________________________________________________________________________________ Total Annual O&M $849,700 $883,700 $919,000 $955,800 $994,000 $1,033,700 $1,910,600 $2,323,800 $2,766,900 $3,059,800 AWPS O&M Cost per Unit ($/ccf)$1.05 $1.09 $1.13 $1.18 $1.23 $1.28 $1.33 $1.38 $1.44 $1.49 Share of Annual Recycled Water Use Palo Alto 24.1% 24.1% 24.1% 24.1% 24.1% 24.1% 40.7% 34.8% 30.4% 28.6% Mountain View 75.9% 75.9% 75.9% 75.9% 75.9% 75.9% 59.3% 65.2% 69.6% 71.4%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% AWPS O&M Cost Allocation Palo Alto $204,700 $212,900 $221,400 $230,300 $239,500 $249,100 $777,200 $808,300 $840,600 $874,200 Mountain View 645,000 670,800 697,600 725,500 754,500 784,600 1,133,400 1,515,500 1,926,300 2,185,600__________________________________________________________________________________________ Total 849,700 883,700 919,000 955,800 994,000 1,033,700 1,910,600 2,323,800 2,766,900 3,059,800 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 73 Packet Pg. 145 of 228 Table 11B No Palo Alto Phase III Scenario AWPS Preliminary Financial Plan DPR Starting 2041 AWPS Phase 1 Total Cost Allocations by Year 1 2 3 4 5 6 7 8 9 10 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only Palo Alto 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Mountain View 212,252 424,504 424,504 468,418 507,453 561,126 614,798 614,798 614,798 614,798__________________________________________________________________________________________ Total 309,839 619,678 619,678 663,592 702,627 756,300 809,973 809,973 809,973 809,973 Cumulative Change in Use % - - 0.0% 7.1% 13.4% 22.0% 30.7% 30.7% 30.7% 30.7% Share of Annual Enhnaced Recycled Water Use Palo Alto 31.5% 31.5% 31.5% 29.4% 27.8% 25.8% 24.1% 24.1% 24.1% 24.1% Mountain View 68.5% 68.5% 68.5% 70.6% 72.2% 74.2% 75.9% 75.9% 75.9% 75.9%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Debt Service Allocation Palo Alto 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Mountain View 100% 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000__________________________________________________________________________________________ Total 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 Operating Cost Allocation Based on each agency's % share of total annual enhanced recycled water use. Palo Alto $94,000 $188,000 $195,600 $189,900 $186,500 $180,200 $175,000 $182,000 $189,300 $196,800 Mountain View 204,600 408,900 425,300 455,700 485,000 518,100 551,300 573,300 596,400 620,100__________________________________________________________________________________________ Total 298,600 596,900 620,900 645,600 671,500 698,300 726,300 755,300 785,700 816,900 Total Cost Allocation Palo Alto $94,000 $188,000 $195,600 $189,900 $186,500 $180,200 $175,000 $182,000 $189,300 $196,800 Mountain View 1,640,600 1,844,900 1,861,300 1,891,700 1,921,000 1,954,100 1,987,300 2,009,300 2,032,400 2,056,100__________________________________________________________________________________________ Total 1,734,600 2,032,900 2,056,900 2,081,600 2,107,500 2,134,300 2,162,300 2,191,300 2,221,700 2,252,900 All-In Cost per Unit ($/ccf) Palo Alto $0.96 $0.96 $1.00 $0.97 $0.96 $0.92 $0.90 $0.93 $0.97 $1.01 Mountain View 7.73 4.35 4.38 4.04 3.79 3.48 3.23 3.27 3.31 3.34__________________________________________________________________________________________ Total 5.60 3.28 3.32 3.14 3.00 2.82 2.67 2.71 2.74 2.78 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 74 Packet Pg. 146 of 228 Table 11B No Palo Alto Phase III Scenario AWPS Preliminary Financial Plan DPR Starting 2041 AWPS Phase 1 Total Cost Allocations by Year 11 12 13 14 15 16 17 18 19 20 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf)Start DPR Palo Alto 195,174 195,174 195,174 195,174 195,174 195,174 585,522 585,522 585,522 585,522 Mountain View 614,798 614,798 614,798 614,798 614,798 614,798 853,887 1,097,854 1,341,822 1,463,806__________________________________________________________________________________________ Total 809,973 809,973 809,973 809,973 809,973 809,973 1,439,409 1,683,377 1,927,344 2,049,328 Cumulative Change in Use % Share of Annual Enhnaced Recycled Water Use Palo Alto 24.1% 24.1% 24.1% 24.1% 24.1% 24.1% 40.7% 34.8% 30.4% 28.6% Mountain View 75.9% 75.9% 75.9% 75.9% 75.9% 75.9% 59.3% 65.2% 69.6% 71.4%__________________________________________________________________________________________ Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Debt Service Allocation Palo Alto 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Mountain View 100% 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000__________________________________________________________________________________________ Total 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 1,436,000 Operating Cost Allocation Based on each agency's % share of total annual enhanced recycled water use. Palo Alto $204,700 $212,900 $221,400 $230,300 $239,500 $249,100 $777,200 $808,300 $840,600 $874,200 Mountain View 645,000 670,800 697,600 725,500 754,500 784,600 1,133,400 1,515,500 1,926,300 2,185,600__________________________________________________________________________________________ Total 849,700 883,700 919,000 955,800 994,000 1,033,700 1,910,600 2,323,800 2,766,900 3,059,800 Total Cost Allocation Palo Alto $204,700 $212,900 $221,400 $230,300 $239,500 $249,100 $777,200 $808,300 $840,600 $874,200 Mountain View 2,081,000 2,106,800 2,133,600 2,161,500 2,190,500 2,220,600 2,569,400 2,951,500 3,362,300 3,621,600__________________________________________________________________________________________ Total 2,285,700 2,319,700 2,355,000 2,391,800 2,430,000 2,469,700 3,346,600 3,759,800 4,202,900 4,495,800 All-In Cost per Unit ($/ccf) Palo Alto $1.05 $1.09 $1.13 $1.18 $1.23 $1.28 $1.33 $1.38 $1.44 $1.49 Mountain View 3.38 3.43 3.47 3.52 3.56 3.61 3.01 2.69 2.51 2.47__________________________________________________________________________________________ Total 2.82 2.86 2.91 2.95 3.00 3.05 2.32 2.23 2.18 2.19 Expense projections account for AWPS Phase 1 recycled water production only and exclude costs related to the existing Title 22 recycled water system at the RWQCP AWPS Phase 1 operating expenses assume seasonal variation in operations with no new labor. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 75 Packet Pg. 147 of 228 Palo Alto Recycled Water Use & Costs Assumes AWPS Phase 1 Only Scenario B with Direct Potable Reuse Starting 2041 No Phase III Recycled Water Expansion Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 76 Packet Pg. 148 of 228 Table PA-4B No Palo Alto Phase III Scenario AWPS Preliminary Financial Plan DPR Starting 2041 Projection of Recycled Water Impacts to Palo Alto General Fund Assumes RW provided at cost of production Cost 1 2 3 4 5 6 7 8 9 10 Esc 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Enhanced Recycled Water Use (ccf)Jan-June Only City Use for Golf Course & Parks 86,450 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig)4,550 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 2,840 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 1,250 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total 97,590 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto Share of Projected RW Use 31.5% 31.5% 31.5% 29.4% 27.8% 25.8% 24.1% 24.1% 24.1% 24.1% Proj Potable Irrig Water Rate (W7)3.0%$11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 Projected Recycled Water Rate [1]$0.96 $0.96 $1.00 $0.97 $0.96 $0.92 $0.90 $0.93 $0.97 $1.01 Recycled Water Sales Revenues & Expense Offsets Truck RW Sales $2,700 $5,500 $5,700 $5,500 $5,400 $5,200 $5,100 $5,300 $5,500 $5,700 MSC & Other Billed City Use 4,400 8,800 9,100 8,800 8,700 8,400 8,200 8,500 8,800 9,200 Caltrans RW Sales 1,200 2,400 2,500 2,400 2,400 2,300 2,200 2,300 2,400 2,500 Other RW Sales 0 0 0 0 0 0 0 0 0 0 Valley Water Annual Option Pymt 3.0%58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0 Valley Water Annual Effluent Purchase - - - - - - - - tbd tbd Reduced Potable Water Purchases 28,600 58,900 60,700 62,500 64,400 66,300 68,300 70,400 72,500 74,600__________________________________________________________________________________________ Subtotal 95,100 135,500 139,700 142,800 146,400 149,700 153,300 158,100 89,200 92,000 Recycled Water Expenses AWPS O&M Allocation [2,3,4,5]$94,000 $188,000 $195,600 $189,900 $186,500 $180,200 $175,000 $182,000 $189,300 $196,800 AWPS SRF Debt Service Allocation [6]0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal 94,000 188,000 195,600 189,900 186,500 180,200 175,000 182,000 189,300 196,800 Revenues Less Expenses $1,100 ($52,500)($55,900)($47,100)($40,100)($30,500)($21,700)($23,900)($100,100)($104,800) Cumulative Net Expenses $1,100 ($51,400)($107,300)($154,400)($194,500)($225,000)($246,700)($270,600)($370,700)($475,500) Projected RW Cost per Unit ($/ccf)$0.96 $0.96 $1.00 $0.97 $0.96 $0.92 $0.90 $0.93 $0.97 $1.01 Net RW Unit Cost After Offsets ($/ccf)($0.01) $0.27 $0.29 $0.24 $0.21 $0.16 $0.11 $0.12 $0.51 $0.54 1 Assumes recycled water is sold at cost. 2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with no new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 77 Packet Pg. 149 of 228 Table PA-4B No Palo Alto Phase III Scenario AWPS Preliminary Financial Plan DPR Starting 2041 Projection of Recycled Water Impacts to Palo Alto General Fund Assumes RW provided at cost of production Cost 11 12 13 14 15 16 17 18 19 20 Esc 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Enhanced Recycled Water Use (ccf)Start DPR City Use for Golf Course & Parks 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 172,897 Increase in RW for Golf Course & Parks 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Other City Uses (MSC/hydrant/RWQCP Irrig)9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 9,094 Truck Standpipe 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 5,684 Caltrans 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Projected New RW Use 0 0 0 0 0 0 390,348 390,348 390,348 390,348__________________________________________________________________________________________ Total 195,174 195,174 195,174 195,174 195,174 195,174 585,522 585,522 585,522 585,522 Palo Alto Share of Projected RW Use 24.1% 24.1% 24.1% 24.1% 24.1% 24.1% 40.7% 34.8% 30.4% 28.6% Proj Potable Irrig Water Rate (W7)3.0%$15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 Projected Recycled Water Rate [1]$1.05 $1.09 $1.13 $1.18 $1.23 $1.28 $1.33 $1.38 $1.44 $1.49 Recycled Water Sales Revenues & Expense Offsets Truck RW Sales $6,000 $6,200 $6,400 $6,700 $7,000 $7,300 $7,500 $7,800 $8,200 $8,500 MSC & Other Billed City Use 9,500 9,900 10,300 10,700 11,200 11,600 12,100 12,600 13,100 13,600 Caltrans RW Sales 2,600 2,700 2,800 2,900 3,100 3,200 3,300 3,500 3,600 3,700 Other RW Sales 0 0 0 0 0 0 518,100 538,900 560,400 582,800 Valley Water Annual Option Pymt 3.0%0 0 0 0 0 0 0 0 0 0 Valley Water Annual Effluent Purchase tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Reduced Potable Water Purchases 76,900 79,200 81,600 84,000 86,500 89,100 91,800 94,500 97,400 100,300__________________________________________________________________________________________ Subtotal 95,000 98,000 101,100 104,300 107,800 111,200 632,800 657,300 682,700 708,900 Recycled Water Expenses AWPS O&M Allocation [2,3,4,5]$204,700 $212,900 $221,400 $230,300 $239,500 $249,100 $777,200 $808,300 $840,600 $874,200 AWPS SRF Debt Service Allocation [6]0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal 204,700 212,900 221,400 230,300 239,500 249,100 777,200 808,300 840,600 874,200 Revenues Less Expenses ($109,700)($114,900)($120,300)($126,000)($131,700)($137,900)($144,400)($151,000)($157,900)($165,300) Cumulative Net Expenses ($585,200)($700,100)($820,400)($946,400)($1,078,100)($1,216,000)($1,360,400)($1,511,400)($1,669,300)($1,834,600) Projected RW Cost per Unit ($/ccf)$1.05 $1.09 $1.13 $1.18 $1.23 $1.28 $1.33 $1.38 $1.44 $1.49 Net RW Unit Cost After Offsets ($/ccf)$0.56 $0.59 $0.62 $0.65 $0.67 $0.71 $0.25 $0.26 $0.27 $0.28 1 Assumes recycled water is sold at cost. 2 Expense projections account for AWPS Phase 1 operating and capital expenses only. 3 AWPS operating expenses assume seasonal variation in operations with no new labor. 4 Excludes capital & operating expenses for existing Title 22 recycled water system at the RWQCP. 5 Excludes costs related to the City's recycled water distribution system. 6 Assumes first year SRF Loan payment is used to fund a required debt service reserve equal to annual debt service. Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 78 Packet Pg. 150 of 228 Table PA-5B No Palo Alto Phase III Scenario AWPS Preliminary Financial Plan DPR Starting 2041 Net Annual Impacts to City of Palo Alto 1 2 3 4 5 6 7 8 9 10 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31 2031/32 2032/33 2033/34 2034/35 Palo Alto Recycled Water Use (ccf) Base Year Recycled Water Use 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total 97,587 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Palo Alto General Fund: Palo Alto Golf Course & Parks Recycled Water Expenses ($94,000) ($188,000) ($195,600) ($189,900) ($186,500) ($180,200) ($175,000) ($182,000) ($189,300) ($196,800) Less Expense Offsets A) Potable Water Purchases for GC Fairway Irrig (ccf)50% Jan-Jun Transition from Potable to RW Use 2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $11.44 $11.78 $12.14 $12.50 $12.88 $13.26 $13.66 $14.07 $14.49 $14.93 Cost of Potable City Water Purchases $28,600 $58,900 $60,700 $62,500 $64,400 $66,300 $68,300 $70,400 $72,500 $74,600 B) Recycled Water Sales Revenues Truck RW Sales $2,700 $5,500 $5,700 $5,500 $5,400 $5,200 $5,100 $5,300 $5,500 $5,700 MSC & Other Billed City Use 4,400 8,800 9,100 8,800 8,700 8,400 8,200 8,500 8,800 9,200 Caltrans RW Sales 1,200 2,400 2,500 2,400 2,400 2,300 2,200 2,300 2,400 2,500 Other RW Sales 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Subtotal $8,300 $16,700 $17,300 $16,700 $16,500 $15,900 $15,500 $16,100 $16,700 $17,400 Net Annual Impact to General Fund ($57,100) ($112,400) ($117,600) ($110,700) ($105,600) ($98,000) ($91,200) ($95,500) ($100,100) ($104,800) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund Loss of Potable Water Sales ($28,600) ($58,900) ($60,700) ($62,500) ($64,400) ($66,300) ($68,300) ($70,400) ($72,500) ($74,600) Offset by Reduction in SFPUC Potable Water Purchases Reduction in SFPUC Potable Water Purchases (ccf)2,500 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 5% Esc + BAWSCA Bond Surchg $6.48 $6.78 $7.10 $7.44 $7.79 $8.16 $8.54 $8.95 $9.38 $9.83__________________________________________________________________________________________ Total Est. Annual Potable City Water Purchases 16,200 33,900 35,500 37,200 38,900 40,800 42,700 44,800 46,900 49,100 Net Annual Revenue Loss to Water Enterprise ($12,400)($25,000)($25,200)($25,300)($25,500)($25,500)($25,600)($25,600)($25,600)($25,500) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund Valley Water Annual Option Payment $58,200 $59,900 $61,700 $63,600 $65,500 $67,500 $69,500 $71,600 $0 $0 Valley Water Annual Effluent Purchase Payment - - - - - - - - tbd tbd Total Combined Impact to Palo Alto Net Impact to General Fund ($57,100) ($112,400) ($117,600) ($110,700) ($105,600) ($98,000) ($91,200) ($95,500) ($100,100) ($104,800) Net Revenue Loss Water Enterprise (12,400) (25,000) (25,200) (25,300) (25,500) (25,500) (25,600) (25,600) (25,600) (25,500) Valley Water Annual Option Payment to Wastewater Fund 58,200 59,900 61,700 63,600 65,500 67,500 69,500 71,600 0 0__________________________________________________________________________________________ Total Net Annual Impact to City ($11,300) ($77,500) ($81,100) ($72,400) ($65,600) ($56,000) ($47,300) ($49,500) ($125,700) ($130,300) Cumulative Impact to City ($11,300) ($88,800) ($169,900) ($242,300) ($307,900) ($363,900) ($411,200) ($460,700) ($586,400) ($716,700) Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 79 Packet Pg. 151 of 228 Table PA-5B No Palo Alto Phase III Scenario AWPS Preliminary Financial Plan DPR Starting 2041 Net Annual Impacts to City of Palo Alto 11 12 13 14 15 16 17 18 19 20 2035/36 2036/37 2037/38 2038/39 2039/40 2040/41 2041/42 2042/43 2043/44 2044/45 Palo Alto Recycled Water Use (ccf) Base Year Recycled Water Use 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 195,174 Projected New Recycled Water Use 0 0 0 0 0 0 390,348 390,348 390,348 390,348__________________________________________________________________________________________ Total 195,174 195,174 195,174 195,174 195,174 195,174 585,522 585,522 585,522 585,522 Palo Alto General Fund: Palo Alto Golf Course & Parks Recycled Water Expenses ($204,700) ($212,900) ($221,400) ($230,300) ($239,500) ($249,100) ($777,200) ($808,300) ($840,600) ($874,200) Less Expense Offsets A) Potable Water Purchases for GC Fairway Irrig (ccf) Transition from Potable to RW Use 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 City Potable Water Rate (W7) with 3% Escalation $15.38 $15.84 $16.31 $16.80 $17.31 $17.82 $18.36 $18.91 $19.48 $20.06 Cost of Potable City Water Purchases $76,900 $79,200 $81,600 $84,000 $86,500 $89,100 $91,800 $94,500 $97,400 $100,300 B) Recycled Water Sales Revenues Truck RW Sales $6,000 $6,200 $6,400 $6,700 $7,000 $7,300 $7,500 $7,800 $8,200 $8,500 MSC & Other Billed City Use 9,500 9,900 10,300 10,700 11,200 11,600 12,100 12,600 13,100 13,600 Caltrans RW Sales 2,600 2,700 2,800 2,900 3,100 3,200 3,300 3,500 3,600 3,700 Other RW Sales 0 0 0 0 0 0 518,100 538,900 560,400 582,800__________________________________________________________________________________________ Subtotal $18,100 $18,800 $19,500 $20,300 $21,300 $22,100 $541,000 $562,800 $585,300 $608,600 Net Annual Impact to General Fund ($109,700) ($114,900) ($120,300) ($126,000) ($131,700) ($137,900) ($144,400) ($151,000) ($157,900) ($165,300) AWPS RW expenses offset by reduced potable water expenses and RW sales revenues Palo Alto Water Fund Loss of Potable Water Sales ($76,900) ($79,200) ($81,600) ($84,000) ($86,500) ($89,100) ($91,800) ($94,500) ($97,400) ($100,300) Offset by Reduction in SFPUC Potable Water Purchases Reduction in SFPUC Potable Water Purchases (ccf)5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 SFPUC Wholesale Rate w/ 3% Esc (No BAWCA Bond Surchg)$9.71 $10.00 $10.30 $10.61 $10.93 $11.26 $11.60 $11.94 $12.30 $12.67__________________________________________________________________________________________ Total Est. Annual Potable City Water Purchases 48,600 50,000 51,500 53,100 54,600 56,300 58,000 59,700 61,500 63,354 Net Annual Revenue Loss to Water Enterprise ($28,300)($29,200)($30,100)($30,900)($31,900)($32,800)($33,800)($34,800)($35,900)($36,946) Loss of potable water sales less corresponding reduction of SFPUC wholesale water purchases Palo Alto Wastewater Fund Valley Water Annual Option Payment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Valley Water Annual Effluent Purchase Payment tbd tbd tbd tbd tbd tbd tbd tbd tbd tbd Total Combined Impact to Palo Alto Net Impact to General Fund ($109,700) ($114,900) ($120,300) ($126,000) ($131,700) ($137,900) ($144,400) ($151,000) ($157,900) ($165,300) Net Revenue Loss Water Enterprise (28,300) (29,200) (30,100) (30,900) (31,900) (32,800) (33,800) (34,800) (35,900) (36,946) Valley Water Annual Option Payment to Wastewater Fund 0 0 0 0 0 0 0 0 0 0__________________________________________________________________________________________ Total Net Annual Impact to City ($138,000) ($144,100) ($150,400) ($156,900) ($163,600) ($170,700) ($178,200) ($185,800) ($193,800) ($202,246) Cumulative Impact to City ($854,700) ($998,800) ($1,149,200) ($1,306,100) ($1,469,700) ($1,640,400) ($1,818,600) ($2,004,400) ($2,198,200) ($2,400,446) Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 80 Packet Pg. 152 of 228 City of Palo Alto (0038014.03) 22 Woodard & Curran, Inc. Preliminary Finance Plan July 27, 2023 Appendix 2 Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 81 Packet Pg. 153 of 228 Appendix 2: Assumed Operations and Maintenance and Related Expense Estimates Column Designation A B C D E F G H I J K L M N O P Q R S T U Column Title Month Days 2019 Reported Use, Monthly Average (MGD)1 2020 Reported Use, Monthly Average (MGD)1 2019-2020 Average (MGD) 2031 Estimated Recycled Water Demand (MGD)2 2031 Calculated Monthly Average Demand (MGD) 2031 Calculated Monthly Average Demand (MG) Assumed Operational Scenario: Blend Ratio (RW:ROP)3 Max. Enhanced Recycled Water Production, Based on Blend Ratio Assumed Operational Scenario: Production Rate 4 Enhanced Recycled Water Production, Based on Operational Scenario (MGD) Enhanced Recycled Water Production, Based on Operational Scenario (MG) Over/(Under) Production Based on Historic Monthly Demand (MG) O&M Expense: Repairs & Replacements O&M Expense: Energy O&M Expense: Chemicals O&M Expense: Membrane Consumables O&M Expense: Labor O&M Expense: Total Calculation (if applicable) = AVG ( C, D ) = B * H = K * L = B * K * L = K * L = SUM ( P , Q , R , S , T ) January 31 0.18 0.14 0.16 0.50 [B]16 n/a 0.00 0 0.00 0 -16 $0 $0 $0 $0 $0 $0 February 28 0.16 0.36 0.26 0.80 22 1.0 : 0.95 2.31 50%1.15 32 10 $21,703 $13,052 $8,423 $1,338 $0 $44,515 March 31 0.14 0.31 0.22 0.69 21 1.0 : 0.52 3.29 80%2.63 82 60 $34,724 $18,801 $13,476 $3,426 $0 $70,428 April 30 0.65 0.55 0.60 1.86 56 1.0 : 0.52 3.29 100%3.29 99 43 $43,405 $22,634 $16,845 $5,353 $0 $88,238 May 31 0.71 1.01 0.86 2.67 83 1.0 : 0.52 3.29 100%3.29 102 19 $43,405 $22,634 $16,845 $5,353 $0 $88,238 June 30 1.14 1.17 1.16 3.59 [A]108 1.0 : 0.52 3.29 100%3.29 99 -9 $43,405 $22,634 $16,845 $5,353 $0 $88,238 July 31 1.22 1.31 1.26 3.92 [A]122 1.0 : 0.52 3.29 100%3.29 102 -20 $43,405 $22,634 $16,845 $5,353 $0 $88,238 August 31 1.38 1.10 1.24 3.84 [A]119 1.0 : 0.52 3.29 100%3.29 102 -17 $43,405 $22,634 $16,845 $5,353 $0 $88,238 September 30 0.95 0.79 0.87 2.70 81 1.0 : 0.52 3.29 100%3.29 99 18 $43,405 $22,634 $16,845 $5,353 $0 $88,238 October 31 0.69 0.62 0.65 2.03 63 1.0 : 0.95 2.31 80%1.85 57 -6 $34,724 $18,801 $13,476 $3,426 $0 $70,428 November 30 0.47 0.47 0.47 1.46 [B]44 n/a 0.00 0 0.00 0 -44 $0 $0 $0 $0 $0 $0 December 31 0.11 0.26 0.19 0.59 [B]18 n/a 0.00 0 0.00 0 -18 $0 $0 $0 $0 $0 $0 Days/ Year: Approx. Annual Average Use (MGD): 0.65 Approx. Annual Average Use (MGD): 0.68 Approx. Annual Average Use (MGD): 0.66 Estimated Annual Average Use (MGD): 2.06 Annual Average Check (MGD): 2.06 Approx. Annual Average Production (MGD): 2.12 Estimated Annual Net (MG): 21 Estimated Annual Amount: $714,797 365 Approx. Annual Total Use (MG): 238 Approx. Annual Total Use (MG): 247 Approx. Annual Total Use (MG): 242 Calculated Monthly Increase: 3.1 Calculated Annual Total Use (MG): 752 Calculated Annual Total Use (MG): 752 Calculated Annual Total Production (MG): 773 Notes:[A]Calculated monthly average demand (based on historical monthly usage) is greater than AWPS Capacity [B]Assumed month when AWPS is taken offline because flows are relatively low. Several offline scenarios are possible and justifiable. 1 Letter to Mr. Blair Allen (RWQCB) from James Allen (RWQCP), 2020 2 Appendix 1 - Table 3 Blending Ratios are based on Black & Veatch, City of Palo Alto Advanced Water Purification System (AWPS), Basis of Design Report , Project 408520. November 8, 2021 4 Assumed production rates, as a percentage of overall capacity. Many scenarios are possible and justifiable. 5 Operations and Maintenance Expenses based on Black & Veatch, City of Palo Alto AWPS, Operations & Maintenance Cost Estimate (“AWPS OPEX Ranges8-15-22”)– All Alternatives , Project 408520. August 15, 2022, with Labor adjusted to 0.00 FTE based upon RWQCP staff input Item 10 Attachment A - Preliminary Finance Plan for the Advanced Water Purification System - Phase I Item 10: Staff Report Pg. 82 Packet Pg. 154 of 228 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Transportation Meeting Date: October 16, 2023 Report #:2309-2073 TITLE Authorization of the City Manager or their designee to execute a change order to Contract C20177344 with Bear Electrical Services for On-Call Traffic Signal and Electrical Services to Extend the Term through March 1, 2024 with No Change to the Not To Exceed Amount of $375,000; CEQA status – categorically exempt. RECOMMENDATION Staff recommends that the City Council authorize the City Manager or their designee to negotiate and execute a change order (Attachment A) to the contract with Bear Electrical Services to extend the contract duration through March 1, 2024, with no change in contract amount. BACKGROUND In 2019, the City conducted a formal Invitation for Bids (IFB) for the On-Call Traffic Signal and Electrical Services and on February 3, 2020, (CMR 10966). The Council approved a contract with Bear Electrical Services for a term of 36 Months with a Maximum Total Compensation Not-to- Exceed Amount of $375,000.1 This contract2 supports traffic signal and other electrical service work related to the traffic signal and transportation system within Palo Alto. The services supplement implementation, maintenance, and/or repair efforts that cannot be completed by Electric Utilities Department staff and are generally used for the implementation of services and/or technologies that current City Staff has limited capabilities or capacity to conduct. This 1 Staff report available at https://www.cityofpaloalto.org/files/assets/public/v/1/agendas- minutes-reports/reports/city-manager-reports-cmrs/year-archive/2020/id- 10966.pdf?t=64302.61 2 Current Contract No. C20177344 with Bear Electrical https://www.cityofpaloalto.org/files/assets/public/v/1/transportation/city-council- docs/c20177344-bear-electrical-contract_final.pdf Item 11 Item 11 Staff Report Item 11: Staff Report Pg. 1 Packet Pg. 155 of 228 contract was previously extended by six months in Change Order No. 1 3. Staff is recommending extending this contract to March 1, 2024. ANALYSIS FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: 3 Change Order No. 1 with Bear Electrical https://www.cityofpaloalto.org/files/assets/public/v/1/transportation/city-council-docs/bear-change-order_may- 2023.pdf Item 11 Item 11 Staff Report Item 11: Staff Report Pg. 2 Packet Pg. 156 of 228 Invitation for Bids (IFB) Package 1 Rev. Jan. 2023 PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER FIELD ORDER CITY OF PALO ALTO DEPARTMENT OF _____________________________ Project This Field Order, issued pursuant to Article 7 of the Contract General Conditions directs and authorizes Contractor to proceed with the Work described below. Upon receipt of this Field Order, Contractor shall execute the Field Order to acknowledge receipt and, within a reasonable time, proceed with the Work described in the Field Order. Contractor’s acknowledgment of the Field Order will not operate to impair its rights to dispute the Field Order as specified in the General Conditions. Unless otherwise stated below, this Field Order shall not be construed as an acknowledgment by City that the Work described constitutes a Change or Extra Work. If Contractor disputes the proposed basis or amount of adjustment to the Contract Sum or Contract Time, it may request to change the disputed portions of this Field Order by submitting a Change Order Request within ten (10) Days following issuance of this Field Order. Failure by Contractor to submit a timely Change Order Request seeking modification of the terms of this Field Order shall be deemed full acceptance of and agreement to all of the terms herein, and a release and waiver of any right to subsequently dispute any or all of the terms of this Field Order. Field Order Number: XXX Issuance Date: _09_/_01_/_2023___ Prepared by: Rafael Rius, Sr. Engineer, City of Palo Alto Description of Work: Title: _On-Call Traffic Signal and Electrical Services_________ Ref: 2. City has determined that the above Work: ___ is Extra Work _X_ is not Extra Work City has determined that Contractor is: __not entitled to an extension of time Currently, multiple tasks began prior to Sept 1st, 2023 and are still in progress. This extension will allow for completion of tasks currently underway as well as emergency repair services through the duration of this extension of contract time. No additional costs/budget will be added to the contract as part of this Field Order. Bear Electric provides on-call support for minor traffic signal and electrical modification projects. Bear Electric assists the City with miscellaneous improvements identified as part of operations improvements or as part of infrastructure upgrades. __ requesting an additional extension of 182 days* *Include all information and documentation required by Section 8.5 of the Contract General Conditions. Unless Section 6.3 of the Construction Contract specifies that the Project is to be completed based on working days, any time adjustment will be based on calendar days. DocuSign Envelope ID: 774C9D3A-24DF-4D90-AAE0-A3F9679059E8DocuSign Envelope ID: 8B18933B-BB3E-403F-B99A-F77657618E8A Item 11 Attachment A - Change Order No. 2. to Contract No. C20177344 Bear Electric Item 11: Staff Report Pg. 3 Packet Pg. 157 of 228 Invitation for Bids (IFB) Package 2 Rev. Jan. 2023 PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER Basis of Extra Work Cost: Unit Cost* Lump Sum: $_______________ Time and Materials* Other* *The Contract Sum will be [increased][decreased] by an amount not to exceed: $____0.00_______________________ 1. Consultant shall sign prior to Contractor and return to City. Indicate N/A if no Consultant assigned on Project. Consultant Approval: N/A Title: Senior Engineer (Project Manager), Office of Transportation Date: 2. Project Manager signature required for Field Orders. City Approval: Rafael Rius Title: Senior Engineer (Project Manager) $5,000. Indicate N/A if not applicable. City Approval:________________________ Title: Engineering Manager of Department/Division Date:________________________________ $15,000. City Approval: Title: Assistant Director of Department/Division $25,000. City Approval Title: Chief Tranportation Official Date:________________________________ Date:__ 6. Contractor acknowledges receipt of FO. Contractor Signature: Title: Project Manager Date: DocuSign Envelope ID: 774C9D3A-24DF-4D90-AAE0-A3F9679059E8 10/5/2023 DocuSign Envelope ID: 8B18933B-BB3E-403F-B99A-F77657618E8A 10/5/2023 10/5/2023 Item 11 Attachment A - Change Order No. 2. to Contract No. C20177344 Bear Electric Item 11: Staff Report Pg. 4 Packet Pg. 158 of 228 Invitation for Bids (IFB) Package 3 Rev. Jan. 2023 PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER CHANGE ORDER REQUEST CITY OF PALO ALTO DEPARTMENT OF _On-Call Traffic Signal and Electrical Services_ Project Contract Change Order Request Project Title: On-Call Traffic Signal and Electrical Project No.: Contract Number: Date: 9/01/23 Contractor: Change Order Request No.: 2 Description of Change Order Request (Attach additional sheets as needed) Reason for Change Order Request: Extension of contract expiration Description of Work to be Performed: Continuation of on-going task orders and services Requested Change to Contract Sum: No cost change: N/A Increase cost by $ __________ Decrease cost by $ __________ Request for Extension of Contract Time (check one): No Change to Contract Time Time Extension Requested for _182___ days* o _180 days Excusable Delay o ___ days Compensable Delay Decrease time by ____ days * Include all information and documentation required by Section 8.5 of the Contract General Conditions. Unless Section 6.3 of the Construction Contract specifies that the Project is to be completed based on working days, any time adjustment will be based on calendar days. Basis for requested change in cost: Unit pricing Lump sum: $_____________________________ Time and Materials not to exceed: * $_________ Compensable Delay Costs: $________________ Other:__________________________________ * Final value shall not exceed amount shown without additional written CO authorization. Complete Time and Materials Breakdown on following page. Reference Documents:* RFI: ASI: Field Order: Specifications: Plans: Other: (specify): * Provide specific number/section/sheet references as applicable X C20177344 DocuSign Envelope ID: 774C9D3A-24DF-4D90-AAE0-A3F9679059E8DocuSign Envelope ID: 8B18933B-BB3E-403F-B99A-F77657618E8A Item 11 Attachment A - Change Order No. 2. to Contract No. C20177344 Bear Electric Item 11: Staff Report Pg. 5 Packet Pg. 159 of 228 Invitation for Bids (IFB) Package 4 Rev. Jan. 2023 PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER DocuSign Envelope ID: 774C9D3A-24DF-4D90-AAE0-A3F9679059E8DocuSign Envelope ID: 8B18933B-BB3E-403F-B99A-F77657618E8A Item 11 Attachment A - Change Order No. 2. to Contract No. C20177344 Bear Electric Item 11: Staff Report Pg. 6 Packet Pg. 160 of 228 Invitation for Bids (IFB) Package 5 Rev. Jan. 2023 PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER Contract Change Order Request – continued Line (Reference General Conditions, e.g. Sections 1 and 7.2, for Allowable Costs and Added Credit All lines shall be filled in (zero values acceptable) CONTRACTOR’S WORK 1. Material (attach itemized quantity and unit cost) 2. Labor (attached itemized hours and rates) 3. Equipment (attach invoices) 4. Royalties and Permits 5. Additional insurance and bond costs, not to exceed two percent (2%) of lines 1-4 6. Subtotal (sum of lines 1 through 5) 7. 8. Subtotal for Contractor’s Work (sum of lines 6 and 7) SUBCONTRACTED WORK (Provide separate breakdown for each subcontract)1 9. Material (attach itemized quantity and unit cost) 10. Labor (attach itemized hours and rates) 11. Equipment (attach invoices) 12. Royalties and Permits 13. Additional insurance and bond costs, not to exceed two percent (2%) of lines 9-12 14. Subtotal (sum of lines 9 through 13) 15. Extra Work performed by Subcontractor’s forces, not to exceed ten percent (10%) of 16. Subcontractor Markup (Section 1.1.65 of General Conditions) by Contractor on Subcontractor’s Allowable Costs, not to exceed fifteen percent (15%) of line 14 17. Subtotal for Subcontracted Work (sum of lines 14, 15 and 16) 18. TOTAL (sum of lines 8 and 17) $0.00 $0.00 1 Attach additional copies of this page as required to summarize additional subcontracts. DocuSign Envelope ID: 774C9D3A-24DF-4D90-AAE0-A3F9679059E8DocuSign Envelope ID: 8B18933B-BB3E-403F-B99A-F77657618E8A Item 11 Attachment A - Change Order No. 2. to Contract No. C20177344 Bear Electric Item 11: Staff Report Pg. 7 Packet Pg. 161 of 228 Invitation for Bids (IFB) Package 6 Rev. Jan. 2023 PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER Contract Change Order Request – continued CONTRACTOR CERTIFICATION: By signing below, the undersigned Contractor certifies under penalty of perjury that its statements and representations in this Change Order Request are true and correct. Contractor warrants that this Change Order Request is comprehensive and complete with respect to the Change in the Work described herein, and agrees that any costs, expenses, or time extension request, including, but not limited to, compensation for delay, lost productivity, inefficiency, or disruption, which is not included with this Change Order Request, shall be deemed waived. Contractor understands that submission of claims which have no basis in fact or which Contractor knows to be false may violate the False Claims Act, as set forth in Government Code Sections 12650 et seq. Submitted by Contractor: Signature: By: Title: Date: By: Title: Senior Engineer (Project Manager) Date: Recommendation: By: Title: Name Chief Transportation Official, Department/Division Office of Transportation Date: By: Title: Date: Recommendation: By: Title: Name Director of Department Date: Approve time extension Brent Paulson VP of Operations DocuSign Envelope ID: 774C9D3A-24DF-4D90-AAE0-A3F9679059E8 10/5/2023 DocuSign Envelope ID: 8B18933B-BB3E-403F-B99A-F77657618E8A 10/5/2023 10/5/2023 Item 11 Attachment A - Change Order No. 2. to Contract No. C20177344 Bear Electric Item 11: Staff Report Pg. 8 Packet Pg. 162 of 228 Invitation for Bids (IFB) Package 7 Rev. Jan. 2023 PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER CONTRACT CHANGE ORDER CITY OF PALO ALTO DEPARTMENTOF _____________________________ Project Contract Change Order # Project Title: On-Call Traffic Signal and Electrical Project No.: Contract Number: C20177344 Date: 9/01/23 Contractor: Change Order No.: Description of Change Order Background Information: Time Extension only Change Order Justification: Need to complete tasks currently in progress and emergency work Description of Work to be Performed: Traffic signal and electrical repair services Incorporates Field Order Number(s): No cost change:N/A Increase cost by $ 0.00 Decrease cost by $ N/A This Change Order will: Not change time Increase time by _182___ days o ___ days Excusable Delay o ___ days Compensable Delay Decrease time by ____ days Note: Unless Section 6.3 of the Construction Contract specifies that the Project is to be completed based on working days, any time adjustment will be based on calendar days. The date of completion as of this Change Order is: ______________________________________________ G/L account number (s): Basis for change in cost: Unit price(s) Lump sum Time and Materials Compensation for Compensable Delay Other: 2 DocuSign Envelope ID: 774C9D3A-24DF-4D90-AAE0-A3F9679059E8DocuSign Envelope ID: 8B18933B-BB3E-403F-B99A-F77657618E8A Item 11 Attachment A - Change Order No. 2. to Contract No. C20177344 Bear Electric Item 11: Staff Report Pg. 9 Packet Pg. 163 of 228 Invitation for Bids (IFB) Package 8 Rev. Jan. 2023 PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER Contract Change Order – continued CONTRACTOR CERTIFICATION: By signing below, Contractor agrees that this Change Order constitutes full resolution, settlement, accord and satisfaction with respect to any and all pending or future Claims for cost and extensions of time that were asserted, or that could have been asserted, in connection with the Work covered by this Change Order, as more fully set forth in Article 7 of the Contract General Conditions. FAILURE TO EXECUTE: If Contractor fails to execute this Change Order within ten (10) days after it has been submitted for Contractor’s signature or refuses, in writing, to execute the Change Order, the City may unilaterally approve this Change Order as set forth in Article 7 of the Contract General Conditions. Contractor may dispute the terms of a unilaterally-approved Change Order, in whole or in part, by submitting a Claim in accordance with the Dispute Resolution Procedures set forth herein within fourteen (14) days after the Change Order is approved by the City. If Contractor fails to submit a Claim within that 14-day period, with respect to all or part of the unilaterally-approved Change Order, those portions of the Change Order which have not been disputed by timely submission of a Claim shall be deemed to have the same effect as if the Change Order was fully executed by both parties as set forth above. Accepted for Contractor: Accepted for City of Palo Alto (pending City signature(s) on next page): By: By: Title: Title: Department/Division – Senior Engineer (Project Date: Date: AS I FO CO R CO Description Amount Reason for Change Total for this Change Order $ 0.00 Scope of Work VP of Operations DocuSign Envelope ID: 774C9D3A-24DF-4D90-AAE0-A3F9679059E8 10/5/2023 DocuSign Envelope ID: 8B18933B-BB3E-403F-B99A-F77657618E8A 10/5/2023 Item 11 Attachment A - Change Order No. 2. to Contract No. C20177344 Bear Electric Item 11: Staff Report Pg. 10 Packet Pg. 164 of 228 Invitation for Bids (IFB) Package 9 Rev. Jan. 2023 PART 6 – FIELD ORDER, CHANGE ORDER REQUEST, CHANGE ORDER Document Preparation By: Title: Senior Engineer (Project Manager), Office of Transportation Date: By : Title : Name Chief Transportation Official, Department Office of Transportation Date: . By: Title: Name Director of Department Date: Contract Change Order – continued Summary of Amounts Payable Under Contract (For Internal Purposes Only) Original Contract Sum: $ 375,000.00 Previous Change Orders $ 0.00 This Change Order $ 0.00 Revised Contract Sum: $ 0.00 Compare to: Original Contract Authorization:$ 375,000.00 Contingency: 0.00 Contract Amendment Authorizations $ 0.00 Contingency added: 0.00 Contingency Authorizations: $ 0.00 Used to date (272,000.00) Total Authorized Funding: $ 375,000.00 Balance remaining 103,000.00 Change Orders shall not be initiated for Council-approved contracts if the revised Contract Sum exceeds the total authorized funding amount. DocuSign Envelope ID: 774C9D3A-24DF-4D90-AAE0-A3F9679059E8DocuSign Envelope ID: 8B18933B-BB3E-403F-B99A-F77657618E8A 10/5/2023 10/5/2023 Item 11 Attachment A - Change Order No. 2. to Contract No. C20177344 Bear Electric Item 11: Staff Report Pg. 11 Packet Pg. 165 of 228 Certificate Of Completion Envelope Id: 774C9D3A24DF4D90AAE0A3F9679059E8 Status: Completed Subject: Complete with DocuSign: Attachment A Change Order No (1) to Bear Electric Revised.pdf Source Envelope: Document Pages: 9 Signatures: 3 Envelope Originator: Certificate Pages: 2 Initials: 0 Joseph Shin AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 Joseph.Shin@CityOfPaloAlto.org IP Address: 104.57.69.102 Record Tracking Status: Original 10/4/2023 12:40:36 PM Holder: Joseph Shin Joseph.Shin@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 Brent Paulson Brent@bear-electrical.com VP of Operations Security Level: Email, Account Authentication (None)Signature Adoption: Pre-selected Style Using IP Address: 104.33.22.20 Sent: 10/4/2023 12:46:11 PM Resent: 10/4/2023 2:42:00 PM Viewed: 10/5/2023 10:51:10 AM Signed: 10/5/2023 10:51:51 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 Andria Sumpter andria.sumpter@cityofpaloalto.org Security Level: Email, Account Authentication (None) Sent: 10/4/2023 12:46:11 PM Viewed: 10/5/2023 9:33:18 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Rafeal Ruis rafael.rius@cityofpaloalto.org Int. Sr. Engineer City of Palo Alto Security Level: Email, Account Authentication (None) Sent: 10/4/2023 12:46:12 PM Viewed: 10/4/2023 2:19:15 PM Electronic Record and Signature Disclosure: Not Offered via DocuSign Witness Events Signature Timestamp DocuSign Envelope ID: 8B18933B-BB3E-403F-B99A-F77657618E8A Item 11 Attachment A - Change Order No. 2. to Contract No. C20177344 Bear Electric Item 11: Staff Report Pg. 12 Packet Pg. 166 of 228 Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 10/4/2023 12:46:12 PM Envelope Updated Security Checked 10/4/2023 2:41:49 PM Envelope Updated Security Checked 10/4/2023 2:41:49 PM Certified Delivered Security Checked 10/5/2023 10:51:10 AM Signing Complete Security Checked 10/5/2023 10:51:51 AM Completed Security Checked 10/5/2023 10:51:51 AM Payment Events Status Timestamps DocuSign Envelope ID: 8B18933B-BB3E-403F-B99A-F77657618E8A Item 11 Attachment A - Change Order No. 2. to Contract No. C20177344 Bear Electric Item 11: Staff Report Pg. 13 Packet Pg. 167 of 228 Certificate Of Completion Envelope Id: 8B18933BBB3E403FB99AF77657618E8A Status: Completed Subject: Complete with DocuSign: Bear Change Order_Sept 23.pdf Source Envelope: Document Pages: 11 Signatures: 7 Envelope Originator: Certificate Pages: 2 Initials: 0 Sumpter, Andria AutoNav: Enabled EnvelopeId Stamping: Enabled Time Zone: (UTC-08:00) Pacific Time (US & Canada) 250 Hamilton Ave Palo Alto , CA 94301 andria.sumpter@cityofpaloalto.org IP Address: 199.33.32.254 Record Tracking Status: Original 10/5/2023 11:05:01 AM Holder: Sumpter, Andria andria.sumpter@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 Rafael Rius Rafael.Rius@CityofPaloAlto.org Int. Sr. Engineer City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Drawn on Device Using IP Address: 199.33.32.254 Sent: 10/5/2023 11:14:17 AM Viewed: 10/5/2023 11:15:09 AM Signed: 10/5/2023 11:16:37 AM Electronic Record and Signature Disclosure: Not Offered via DocuSign Philip Kamhi Philip.Kamhi@CityofPaloAlto.org Chief Transportation Official City of Palo Alto Security Level: Email, Account Authentication (None) Signature Adoption: Pre-selected Style Using IP Address: 76.126.88.48 Signed using mobile Sent: 10/5/2023 11:16:39 AM Viewed: 10/5/2023 11:16:54 AM Signed: 10/5/2023 11:17:25 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 Witness Events Signature Timestamp Notary Events Signature Timestamp Envelope Summary Events Status Timestamps Envelope Sent Hashed/Encrypted 10/5/2023 11:14:17 AM Item 11 Attachment A - Change Order No. 2. to Contract No. C20177344 Bear Electric Item 11: Staff Report Pg. 14 Packet Pg. 168 of 228 Envelope Summary Events Status Timestamps Certified Delivered Security Checked 10/5/2023 11:16:54 AM Signing Complete Security Checked 10/5/2023 11:17:25 AM Completed Security Checked 10/5/2023 11:17:25 AM Payment Events Status Timestamps Item 11 Attachment A - Change Order No. 2. to Contract No. C20177344 Bear Electric Item 11: Staff Report Pg. 15 Packet Pg. 169 of 228 City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: Planning and Development Services Meeting Date: October 16, 2023 Report #:2309-2092 TITLE 340 Portage Avenue and 3201-3225 Ash Street [23PLN-00226]: Denial of Resident’s Request for Historic Designation of the Cannery Building located at 200-404 Portage Avenue as well as the Office Building at 3201-3225 Ash Street as Category I or II Resources on the City’s Local Historic Inventory. Environmental Assessment: Exempt from the Provisions of the California Environmental Quality Act (CEQA) In Accordance with CEQA Guidelines Section 15061(b)(3). RECOMMENDATION Staff recommends that Council: 1. Deny the resident’s request for designation of the Cannery Building at 340 Portage and Office Building at 3201-3225 Ash Street on the City’s Local Historic Inventory. EXECUTIVE SUMMARY On August 23, 2023, a local resident filed an application to designate the cannery building located at 200-404 Portage Avenue as well as the adjacent building at 3201- 3225 Ash Street as Category I or Category II historic resources on the City of Palo Alto’s local Historic Inventory pursuant to the procedures set forth in Palo Alto Municipal Code Section 16.49.040. The site was previously evaluated and determined to be eligible for the California Historic Register. In accordance with the procedures set forth in Chapter 16.49 (Historic Preservation), because there was a pending application on file that affected the exterior of the building at 200-404 Portage, this hearing was scheduled for the first HRB meeting following the receipt of the application, which was held September 14, 2023. The HRB recommended denial of the proposed application. In accordance with the code, the HRB’s recommendation on the proposed application is forwarded to the City Council for a decision within 30 days. On September 5 and September 12, 2023, the Council held a hearing on a proposed redevelopment of the property that includes the buildings the resident seeks listed as a local resource. After deliberating on the matter, the City Council unanimously adopted of a Item 12 Item 12 Staff Report Item 12: Staff Report Pg. 1 Packet Pg. 170 of 228 resolution certifying an Environmental Impact Report (EIR) and making overriding considerations for the significant and unavoidable impact identified on the subject historic resource located at 200-404 Portage Avenue (herein referred to as 340 Portage). PROJECT DESCRIPTION BACKGROUND 1 The HRE evaluated the project for its eligibility for the California Register and does not speak to its eligibility for the local register. It is unclear from the HRE under what category of the local register it may be eligible for. However, given its eligibility for the California Register it would certainly be eligible as a Category 3 or 4 resource. 1 The Historic Resources Evaluation is available online at the following link: https://www.cityofpaloalto.org/files/assets/public/v/1/planning-amp-development-services/current- planning/uploads-for-website/historic-resources-evaluation-340-portage.pdf Item 12 Item 12 Staff Report Item 12: Staff Report Pg. 2 Packet Pg. 171 of 228 action on the demolition permit for 60 days following receipt of a complete application. During the 60 days, the CBO shall refer the demolition permit to the Architectural Review Board (ARB). The ARB shall refer the application to the HRB. The ARB, the HRB, or any interested person may recommend that Council extend the 60-day moratorium. Council shall review these recommendations and may extend the 60-day moratorium for a period of up to one year. Outside of the downtown area, however, any recommendations by the HRB are not binding on the property owner. 2 provide a history of zoning of the property and details of the code section that currently governs nonconforming uses at this property. 3 asserting that the City’s proposed interpretation regarding the permitted commercial uses on the site would subject the City to significant litigation risk. To facilitate the resolution of the dispute, and in light of the pending housing application, on October 25, 2021, City Council established an ad hoc committee (committee). The purpose of the committee, consisting of then Vice Mayor Kou and former Councilmember DuBois, was to negotiate with Sobrato on potential terms to guide future development at Sobrato’s 14.65-acre property located at 200-404 Portage Avenue, 3040-3250 Park Boulevard, 3201-3225 Ash Street & 278 Lambert Avenue.4 In a closed session on June 20 and 21, 2022 the City Council voted 7-0 to direct staff to prepare a tolling agreement that would suspend the processing of the pending SB 330 housing application. The suspension was to allow Sobrato to pursue a development agreement, based on general terms negotiated with the committee, for the redevelopment of the 14.65-acre property. The City and Sobrato executed a tolling agreement in July 2022.5 2 September 13, 2021, Council report ID#13411: https://www.cityofpaloalto.org/files/assets/public/agendasminutes-reports/agendas-minutes/city- councilagendas-minutes/2021/09-september/20210913/20210913pccsmamended-linked-final-council-qa.pdf; June 14, 2021, Council report ID#12271: https://www.cityofpaloalto.org/files/assets/public/agendas- minutesreports/reports/city-manager-reportscmrs/year-archive/2021/id-12271.pdf 3 September 10, 2021 letter from Tamsen Plume to Jonathan Lait: https://www.cityofpaloalto.org/files/assets/public/planning-amp-development- services/newdevelopmentprojects/200-portage/letter-to-september-13-2022-city-council.pdf 4 Summary Minutes of the October 25, 2021 Council hearing: https://www.cityofpaloalto.org/files/assets/public/agendas-minutes-reports/agendas- minutes/citycouncilagendas-minutes/2021/10-october/20211025/20211025amccs.pdf 5 The Tolling Agreement is available online on the project website at: https://www.cityofpaloalto.org/Departments/Planning-Development-Services/Current-Planning/Projects/3200- Park-Boulevard Item 12 Item 12 Staff Report Item 12: Staff Report Pg. 3 Packet Pg. 172 of 228 Council held a study session on August 1, 2022 to allow for public comment as well as Council input on the general terms that resulted from the negotiation.6 The study session served as the prescreening meeting required for a proposed Development Agreement and legislative changes, including Planned Community rezoning, in accordance with PAMC Chapter 18.79. Following the study session, Sobrato filed project plans associated with the Development Agreement project under the address, 3200 Park Boulevard (File No. 22PLN-00287). 7 On September 12, 2023 Council unanimously approved the proposed redevelopment application, allowing for partial demolition of the proposed cannery. Council held a second reading for the relevant ordinances on October 2, 2023. not recommend Council designate the buildings as they exist today on the City’s Historic Inventory. 6 August 1, 2022, Council report ID #14548: https://www.cityofpaloalto.org/files/assets/public/agendasminutesreports/agendas-minutes/city-councilagendas- minutes/2022/20220801/20220801pccsmlinked.pdf 7 September 5, 2023 Council Report ID #2306-1663: https://www.cityofpaloalto.org/Departments/City- Clerk/CitysMeeting-Agendas/Meeting-Agendas-and-Minutes Item 12 Item 12 Staff Report Item 12: Staff Report Pg. 4 Packet Pg. 173 of 228 ANALYSIS Due to the timing of the request, Council had been scheduled to deliberate the proposed Development Agreement prior to the filing of the subject application. The Council deliberated the proposed redevelop project on September 5 and September 12, 2023. Because Council unanimously approved the partial demolition of the existing 340 Portage Building on September 12, 2023, staff and HRB do not recommend designating the building, as it exists today in its entirety, on the local historic inventory. Because the 3201-3225 Ash Street building is not identified as individually eligible for any register, staff would also not recommend designating that building on the local historic inventory at this time. In accordance with the HRB’s recommendation for the redevelopment of the site and Council’s approval, the record of land use action for the proposed redevelopment includes a condition of approval that requires that the site be evaluate following the completion of work and designated to any of the registers for which it is found to be eligible (including the local historic inventory). Staff does not recommend that the central part of the cannery building (beneath the monitor rood) be placed as a standalone resource on the City’s local historic register because it is not a standalone building currently. Nominations and designations to a register must be based on the condition in which a resource exists, not based on a future condition in which it may exist. Further, the redevelopment of the site does not include approval of demolition such that it would become a standalone building. There is no significant fiscal or budget-related impact associated with the recommendation in this report. Several members of the public provided public comment on the proposed historic designation application at the HRB hearing on September 14, 2023. Public comments generally expressed concern that the proposed redevelopment of the site would render the cannery building ineligible for the California Register of Historic Resources and encouraged designation of the building in its existing condition to the local register in order to preserve the cannery and the associated office building on Ash Street. The project has been assessed in accordance with the Authority and Criteria contained in the California Environmental Quality Act (CEQA). Specifically, the project has been determined to be exempt from CEQA in Accordance with CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that designation of the building as a historic resource would not have an impact on the environment. Note that CEQA also does not apply to projects which are denied. Therefore, if Council chooses to deny the project, CEQA would not apply. Item 12 Item 12 Staff Report Item 12: Staff Report Pg. 5 Packet Pg. 174 of 228 Because 340 Portage is already protected as a historic resource in accordance with CEQA, the City prepared an Environmental Impact Report (EIR) to evaluate the redevelopment project’s impacts on a historic resource. The EIR evaluated and publicly disclosed the significant and unavoidable impact to this historic resource (evaluated as Alternative 3 within the 200 Portage Townhome Project EIR). City Council, in order to approve the proposed Development Agreement, certified the EIR and made findings of overriding consideration in accordance with CEQA for impacts to this historic resource at its public hearing on September 12, 2023. ATTACHMENTS APPROVED BY: Item 12 Item 12 Staff Report Item 12: Staff Report Pg. 6 Packet Pg. 175 of 228 24 24 C20_08_20 PARKING GARAGE 199.7' 149.7' 65.6' 149.7' 65.7' 199.7' 50.0' 199.7' 50.0' 199.7' .0' 199.7' 50.0' 49.9' 166.4' 32.5' 1.9' 108.2' 270.2' 100.0' 100.0' 199.7' 116.5' 55.4' 116.5' 55.4' 105.0' 25.0' 105.0' 25.0' 55.4' 116.5' 55.4' 116.5'55.4' 116.5' 55.4' 116.5'55.4' 116.5' 55.4' 116.5' 9.8' 69.0' 4.6' 45.4' 78.8' 50.0' 75.0'105.0' 75.0'105.0' 90.0' 55.0' 120.0' 25.0' 47.1' 120.0' 120.0' 50.0' 1 50.0' 45.0' 28.8' 105.0' 28.8' 105.0' 25.0' 105.0' 25.0' 105.0' 78.8' 55.0' 78.8' 55.0' 50.0' 51.6' 3.4'.1'.1'.4' 49.5' 105.0' 50.0' 12 65.0' 120. 120.0' 50.0' 60.0' 55.0' 30.0' 47.1' 25.0' 60.0' 60.0' 55.0' 90.055.0' 139.6' 50.0' 139.6' 50.0' 567.5' 754.2' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 233.0' 282.3' 116.5' 151.0' 143.4' 105.0' 105.0' 50.0' 105.0' 50.0' 105.0' 50.0' 55.4' 116.5' 55.4' 116.5' 50.0' 105.0' 50.0' 105.0' 116.5' 49.2' 116.5' 49.2' 137.6' 158.7' 39.0' 88.7' 78.0' 7.3' 50.0' 98.9' 50.1' 98.9' 50.0' 103.2' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 105.0 75.0' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 49.2' 116.5' 116.5' 49.2' 116.5' 116.5' 49.2' 49.2' 80.2' 103.2' 79.9' 110.2' 116.5' 49.2' 116.5' 49.2' 60.0' 90.0' 44.8' 90.0' 44.8' 134.5' 60.0' 90.0' 44.8' 90.0' 44.8' 44.8' 90.0' .' 50.0' 134.5' 50.0' 134.5' 55.3' 65.0' 79.4' 60.3' 79.4' 52.7'95.9' 50.0' 95.9' 51.8' 109.3' 50.0' 109.3' 51.1' 119.7' 50.0' 119.3' 55.3' 105.6' 119.7 50.0' 119.7' 50.0' 119.7' 50.6' 119.7' 50.0' 119.7' 50.0' 119.7' 50.0' 32.0' 17.5'34.6' 97.9' 165.0' 137.0' 50.0' 134.5' 50.0' 134.5'50.0' 134.5' 50.0' 134.5'50.0' 134.5' 50.0' 134.5'50.0' 134.5' 50.0' 134.5'60.0' 134.5' 60.0' 134.5' 60.0' 134.5' 60.0' 134.5' 60.0' 134.5' 60.0' 134.5' 4 134.5' 48.7' 134.5' 48.8' 134.5' 48.7 45.0' 45.0' 134.5' 4 134.5' 45.0' 134.5' 60.0' 134.5' 60.0' 134.5' 60.0' 134.5' 60.0' 134.5'134.5' 60.0' 134.5' 60.0' 50.0' 134.5' 50.0' 134.5' 50.0' 134.5' 50.0' 134.5' 67.8'90.0'90.0' 66.7'90.0' 66.7' .0' 134.5' 70.0' 60.0' 134.5' 0'.0' 221.4' 221.4' 186.2' 186.2' 159.0' 159.0'159.0' 159.0' 98.0' 98.0'159.0'159.0'159.0' 159.0' 24.6' 24.6' 77.9' 77.9' 159.0' 159.0' 91.7' 91.7' 134.5' 134.5' 48.8' 48.8' 148.7' 51.0' 148.7' 200.0' 200.0' 200.0' 200.0' 150.0' 99.8' 199.7' 165.4 85.1 34.6 150.0' 50.0' 100.0' 50.0' 100.0' 149.7' 149.7' 149.7' 115.7' 165.7' 100.0' 50.0' 85.1 199.7' 149.7' 250.0' 67.2' 119.5'50.0' 50.0' 50.0' 20.0' 78.5'78.5' 198.4'291.2' 370.9' 188.2' 427.3' 13.9' 56.2' 123.4' 164.9 199.7 109.85' 458.75' 239.70' 129.85' 308.64' 129.85' 102.65' 129.85' 102.56 129.85' 205.99' 129.85' 206.05' 478.7' 21.8' 109.8' 19.8' 38.4' 38.4' 15.1' 15.1' 43.1' 47.3' 50.2' 133.3' 49.2' 49.2' 92.2'92.2' 116.5'116.5' 110.8' 78.3' 22.4' 35.9' 447 429 3159 411 435 3250425 435 3200 455 460 3200 3201 395 385 375 450 430 325 3421 3394 320 358 356 401 411 425 320 3290 300 280 271 261 251 231 221 211 210 220 230 241 231 221 3300 211 291 3101 210 365 345 315 305 295 285 245 265 275 3040 3045 178 2822 2832 2840 2858 130 120 110 2800 2876 2886 2891 2831- 2835 28 3225 400 3250 2867 2869 252 3360 3215 410 2999 3348 3201 290 292 3260 3225 3239 3255 337-343 345-351 417 415 391 5 399 400 360 381 3420 350 3370 307 355 365 3395 281 3350 315 3 268 270 3275 3261 3251 220 230 336 340 370 380 250 264 274 290 270 271 260 281 255 250 3357 3341 3350 3346 2799 149 129 3197 27 2781 2889 3291 3241 2821- 2825 2811- 2815 2877- 2885 2871 2865 2857- 2863 2841- 2845 3127 1 3333 440 3180 360 200 429 3335 3360 3335 2858 278 419 LAMBERT AVENUE EL DORADO AVENUE EMERSON STREET LAMBERT AVENUE CHESTNUT AVENUE ASH STREET BIRCH STREET BIRCH STREET BOULEVARD PARK BOULEVARD ALMA STREET ACACIA AVENUE PORTAGE AVENUE ORINDA S PENINSULA CORRIDOR JOINT POWERS BOARD RM-30 PF PF RM-30 R-2 GM -20 GM GM (AD) CS (AD) CS John Boulware Park Park Blvd Substation This map is a product of the City of Palo Alto GIS This document is a graphic representation only of best available sources. Legend Project Site 0' 209' Attachment A: Location Map CITY OF PALO ALTO I NC O R P O R A TE D CALI FORNIA P a l o A l t o T h e C i t y o f APRI L 1 6 189 4 The City of Palo Alto assumes no responsibility for any errors ©1989 to 2016 City of Palo Alto chodgki, 2023-09-01 13:31:21 (\\cc-maps\Encompass\Admin\Personal\Planning.mdb) Item 12 Attachment A - Location Map Item 12: Staff Report Pg. 7 Packet Pg. 176 of 228 August 21, 2023 rd largest cannery operation in the world in the early part of the 20th century. Item 12 Attachment B - Residents Request for Historic Designation Item 12: Staff Report Pg. 8 Packet Pg. 177 of 228 especially because it completely unnecessary. No legal nor financial obstacle exists to the preservation of this extraordinary building, 340 Portage. We should designate it as historic so that we and generations to come can truly honor Chew and his legacy. th, 2019. As outlined in that report, 340 Portage and its associated former office building, 3201-3225 Ash Street were found to be both eligible for listing in the California State Register of Historical Resources at the local level of significance under Criterion 1 (Events) for its association with the history of the canning industry in Santa Clara County. th 2019 Page & Turnbull report for specific details. Item 12 Attachment B - Residents Request for Historic Designation Item 12: Staff Report Pg. 9 Packet Pg. 178 of 228 be done by the developer. This was clearly outlined in the May 25th Staff Report to the HRB. E) Restoration and adaptive reuse of 340 Portage is possible and needs further study and planning by both the developer and City staff. Destroying an important historic resource that gave hope to thousands of local migrants and impacted the lives of everyone in the Bay Area in the 20th century should not be considered nor tolerated. F) All sketches, drawings, photographs, and other descriptive materials can be found in the Page & Turnbull Report, April 11, 2019. I encourage HRB members and City staff to be read this P&T report and become familiar with its analysis and conclusions. G)Supporting documents (in addition to the Page & Turnbull report) include: “Historic Bay Area Visionaries”, by Robin Chapman, 2018, The History Press – a full length chapter on Thomas Foon Chew is included, pp. 91-108. In addition, another Chapman book, “The Valley of Heart’s Delight”, 2022, The History Press. Includes an update on Thomas Foon Chew and the Bayside Canning Company. Item 12 Attachment B - Residents Request for Historic Designation Item 12: Staff Report Pg. 10 Packet Pg. 179 of 228 City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: Community Services Meeting Date: October 16, 2023 Report #:2308-1949 TITLE Direction to Staff to Develop a Proposal to Lease the Cubberley site from the Palo Alto Unified School District for 55 years or Provide Alternative Direction to Transfer Ownership or Control to the City; CEQA status – not a project. RECOMMENDATION Staff recommends that Council approve development of a proposal for a 55-year ground lease for improvement and community use of the Cubberley campus to be submitted to Palo Alto Unified School District (PAUSD), in conjunction with the Cubberley Ad Hoc Committee. Upon finalization of a proposal, staff will agendize an open Council session to review proposal specifics and next steps. Alternatively, Council may direct staff to develop a proposal based on a different structure. EXECUTIVE SUMMARY On March 13, 2023, the PAUSD Board of Education provided a letter to the Palo Alto City Council inviting the City to submit one or more proposals to transfer a portion of PAUSD-owned land at Cubberley to the City (Attachment A). The Council discussed the invitation at a Study Session on May 15, 2023. A closed session discussion was scheduled for August 2023; however, the Council chose to schedule an open discussion in lieu of the closed session. Staff have reviewed the methods by which the City could acquire land from PAUSD at Cubberley and recommends the Council direct staff to develop a proposal for a 55-year ground lease of the Cubberley site to expedite improvement of the site for community use and benefit. Staff would engage with the Cubberley Ad Hoc Committee to develop a proposal and then return to the Council for further direction and next steps. While there are other means by which the City could acquire land at Cubberley, e.g., land trade or purchase, a ground lease appears to provide the greatest benefit to the City because it allows the City to proceed quickly to assume primary responsibility to improve areas of the Cubberley site without first negotiating new ownership boundaries and land purchase. A ground lease is the most expedient way to begin the public Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 1 Packet Pg. 180 of 228 planning process for improvements of greatest interest to the community. Additionally, a ground lease would not require the City to relinquish ownership of other properties within the City that provide community value. BACKGROUND 1 and presentation2 provide detailed history and background information on the Cubberley site. A full history of the Cubberley site and summary of previous master planning efforts can be found in Attachment B. Staff suggested the following questions be discussed: 1 City Council, May 15, 2023, Agenda Item # 2, SR#2304-1339, https://cityofpaloalto.primegov.com/Portal/viewer?id=1610&type=2 2 City Council, May 15, 2023, Agenda Item #2, https://cityofpaloalto.primegov.com/Portal/viewer?id=1635&type=2 Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 2 Packet Pg. 181 of 228 back to Council in an open session. Council members said that an open session should be sequenced first to allow for greater transparency. Since the Closed Session can only include discussions on price and terms of payment, the Council first wanted to review the different real estate methods to acquire land and discuss how much land to acquire before going into a Closed Session. ANALYSIS Land transfer options Purchase – A direct purchase would transfer ownership of a portion of the Cubberley property from PAUSD to the City, also known as fee title acquisition. A land acquisition would give the City full control of the acquired property and allow the City to use the property in any manner consistent with federal, state, and local laws and ordinances. A purchase agreement would require a formal land appraisal, a public discussion and Council decision on the amount of land to purchase, and the portion of the Cubberley property to acquire (within the Cubberley site). A funding source would need to be identified. Land trade – A land trade, or swap, would transfer ownership of a portion of the Cubberley property from PAUSD to the City in exchange for an equivalent property owned by the City. Ownership of the traded property would then be transferred from the City to PAUSD. A land trade would require a lengthy public discussion and a Council and Board of Education decision Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 3 Packet Pg. 182 of 228 on the amount of acreage at Cubberley that would be acquired. Both parties would need to agree on the city-owned land to be traded. Additionally, the parties would need to agree on whether an even swap would be based on acreage or the appraised value of the properties. A land swap was how the City previously acquired approximately 8 acres at Cubberley. prior to ownership transfer to PAUSD. Article VIII of the City Charter requires that any land dedicated for the use of park, playground, recreation, or conservation purposes cannot be sold or otherwise disposed of without a majority vote of the electorate. The Council could decide to put a measure on an upcoming ballot, such as the General Election in November 2024. Ground lease – A ground lease is typically a long-term lease agreement of unimproved land or previously developed property where the tenant constructs new improvements. Lease terms customarily run from 30 to 100 years or longer. The tenant typically holds ownership of improvements during the ground lease term and is obligated to pay all expenses attributable to the property. Commercial ground lease pricing commonly runs 5-10% of the value of the land. Long-term ground leases are a very common means to enable capital investment in a property while the property owner retains title to the property. As examples, this approach has been used for the Avenidas building, as well as Stanford Shopping Center, Stanford Research Park, and Google development in Mountain View. Under this arrangement, as the end of the term approaches, the parties engage in negotiations over extension of the lease, additional investments, or return of some or all of the property to the owner. Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 4 Packet Pg. 183 of 228 Constraints: City would need to relinquish a portion or all of the leased land when PAUSD determines it has a need for an additional school or other purpose in the future. Key Cubberley Site Considerations While the PAUSD letter suggests interest in releasing more of the site, the determination of which portion(s) of the site to pursue in advance of another master planning effort would be very challenging. This is due to several factors: •Existing buildings are served by an interconnected system of utilities (power, water, sewer, storm drainage), much of which is deteriorated beyond its intended lifespan. Improvement of major systems should include all buildings intended for near-term use; alternatively, investment in selected buildings would require significant coordination to ensure no negative effect on buildings retained by PAUSD. •All building uses are dependent on parking and access through the site, which are primarily located on PAUSD property. This makes redevelopment of a City portion likely dependent on continued availability and use of PAUSD property. •In order to redevelop a new community center at Cubberley, a significant planning effort is required to determine which existing buildings should be replaced, as well as address parking, access, and sequencing. Such planning would need to be undertaken before an informed decision could be made on where to draw new boundaries between City and PAUSD- controlled properties. •There are significant unknowns affecting the City’s timing and ability to plan and implement improvement of the site, including decision-making, financing, and transitioning current uses. Given this, the City assuming primary responsibility for financial risks associated with such unknowns would relieve PAUSD from participating in these costs. These considerations lead to the conclusion that the best strategic path forward is for the City to pursue a long-term ground lease to gain primary responsibility for management of the property. Staff recommended proposal Staff recommends the City propose a ground lease for the maximum acreage PAUSD is willing to lease for a term of 55 years, while supporting PAUSD use of areas it determines it needs in the near term through a lease-back arrangement. This ground lease amount may be less than PAUSD’s 27 acres due to an approximately 1-acre area that provides access to the Greendell school site and any area with buildings that are considered part of the Greendell school campus, as well as other PAUSD needs over the next few years such as for campus renovations at other schools. Attachment C provides a visual depiction of responsibilities for managing the buildings, fields, and open areas at Cubberley under the current lease and with a long-term ground lease. Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 5 Packet Pg. 184 of 228 It is assumed that PAUSD will want to lease-back buildings and parking lot areas it currently occupies for educational purposes, though these uses may be relatively short term. FISCAL/RESOURCE IMPACT Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 6 Packet Pg. 185 of 228 Cubberley Financials The table below contains information about the City funds budgeted for Cubberley in the current FY 2024 Fiscal Year. FY 2024 Adopted Budget $ in Thousands General Fund - Ops Cubberley Infrastructure Fund - Ops Cubberley Infrastructure Fund - Capital Total Revenue Transfer from General Fund $1,864 $1,864 PAUSD Reimbursement $1,553 $1,553 Rental Income (short & long-term tenants)$2,722 $2,722 Revenue Total $2,722 $- $3,417 $6,139 Expense Salaries & Benefits $1,427 $260 $47 $1,734 Contract Services $40 $4,866 $4,906 Other Expense $38 $39 $77 Utilities (& allocated charges)$788 $788 Expense Subtotal $2,293 $299 $4,913 $7,505 Cubberley Lease $3,489 $3,489 Transfer to Cubberley Infrastructure Fund $1,864 $1,864 Expense Total $7,646 $299 $4,913 $12,858 Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 7 Packet Pg. 186 of 228 The following chart tracks expenses for the Lease (which includes the Covenant Not to Develop until 2015), Cubberley Infrastructure Operations and Maintenance, Capital Improvement Projects, and Programming from 2004 to 2023 with grand totals for each year. This summary does not include revenue nor recognize the amount that PAUSD pays back to the City for maintenance3 or capital improvements; it is instead a summary of the City’s costs. Facility Assessment 3 In the current lease agreement that commenced on July 1, 2020, PAUSD is responsible for maintenance and repair costs for buildings not leased to the City. Maintenance costs of common areas (parking lots and walkways) are shared between the City and PAUSD. Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 8 Packet Pg. 187 of 228 draft findings describe Cubberley Community Center as being in poor condition, with over $45 million of maintenance work recommended over the next 10 years. The report compares the 10- year maintenance cost for each individual building to the building’s estimated replacement cost to develop what is called the Facility Condition Index. This analysis concludes that all but three of the Cubberley buildings have reached the end of their useful or serviceable lives. STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 13 Item 13 Staff Report Item 13: Staff Report Pg. 9 Packet Pg. 188 of 228 BOARD OF EDUCATION 1 5 5 2 March 10, 2023 Palo Alto City Council 250 Hamilton Ave Palo Alto, CA 94301 Re: Invitation for Cubberley Development Proposals Dear Colleagues, What’s happening with Cubberley? Within the shared canon of our two governmental bodies, few questions evoke the same wearied engagement as this one. It’s a perennial topic at City/School Liaison Committee meetings (where it is given a light touch) and during election-season candidate forums (where the response is a touch heavy-handed). It has been the subject of meetings, workshops, listening sessions, town halls, and a master plan, all while the site has remained relatively unchanged since the school was closed on February 6, 1979. As the crumbling infrastructure belies the rich panoply of community- oriented programs that now inhabit the site, there is general agreement that Cubberley’s current use is unsustainable without significant capital improvements. We, the PAUSD Board of Education, shoulder some of the responsibility for the restrained pace of Cubberley’s redevelopment plan. But our caution is well-founded. As fiduciaries of the school district and trustees of students present and future, we have a fundamental duty to ensure we do not prejudice their interests by repeating the mistakes of our past selves—when we gave up land during a period of declining enrollment only to find ourselves in financial dire straits once the need for a new campus inevitably arose years later. Indeed, we found ourselves with a student-driven need for the site just this past year. Two of our elementary schools, Palo Verde and Hoover, are undergoing sitewide redevelopment. Accordingly, we designated a temporary school campus on the Cubberley site that will be in use through 2025 to serve those students for the duration of the construction. Nevertheless, we understand and fully support the City’s desire to move forward on development of a portion of the site to realize the vision of a fully-fledged Cubberley Community Center. The polished incarnation of this community gem will surely benefit our joint stakeholders and serve as a resource for the District’s students and families. Attachment A Item 13 Attachment A - Invitation for Cubberley Development Proposals Item 13: Staff Report Pg. 10 Packet Pg. 189 of 228 BOARD OF EDUCATION 1 5 5 2 Our enthusiasm to support the City’s endeavor is caveated by two constraints: (1) we have a desire to retain ownership over roughly 20 of the 35 acres for future school use, the exact nature of which cannot be determined until the need for such a school arises; and (2) we cannot ask the voters to pass a school bond to fund a community center development, as such a bond may only be used to fund school construction as specifically enumerated in Education Code section 15100. Item 13 Attachment A - Invitation for Cubberley Development Proposals Item 13: Staff Report Pg. 11 Packet Pg. 190 of 228 ATTACHMENT B History of Cubberley 1,2. At the time of the lease’s expiration in 2019, the annual lease amount was $5.1M and the Covenant Not to Develop was $1.86M. Although that lease expired, the City continues to transfer $1.86 million into the Infrastructure Fund for repairs and maintenance of buildings, facilities, and outdoor spaces. 1 City Council, February 24, 2014, Agenda Item #10, SR#4506, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2014/id-4506-cubberley.pdf 2 City Council, February 24, 2014, Meeting Minutes, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/agendas-minutes/city-council- agendas-minutes/00-archive/2014/02-24-14-ccm-final.pdf Item 13 Attachment B - Cubberley History and Site Map Item 13: Staff Report Pg. 12 Packet Pg. 191 of 228 On July 1, 2020, in response to the City’s financial constraints due to the COVID-19 pandemic, a new 54-month lease (expires December 2024) began that reduced the amount of building space leased by the City at Cubberley. The leased premises consists of approximately 52,000 square feet of building space including the theater, pavilion, Gyms A and B, and some additional rooms; and about 16 acres of outdoor recreation area (athletic fields and track). The new lease amount is $2.5 million per year (for approximately 17 acres). The School District occupies or has tenants in rooms and buildings no longer leased by the City. Costs to maintain and repair common areas (walkways and parking lots) are shared between the City and PAUSD. Current Uses Master Plans 3 in November 2019 developed with input from over 400 community participants. 3 Cubberley Concept Plan, 2019, https://www.pausd.org/about-us/committees-task- forces/archivedcommittees/cubberley-master-plan Item 13 Attachment B - Cubberley History and Site Map Item 13: Staff Report Pg. 13 Packet Pg. 192 of 228 Cubberley Current Land Ownership and Facility Uses Item 13 Attachment B - Cubberley History and Site Map Item 13: Staff Report Pg. 14 Packet Pg. 193 of 228 Atachment C Current Cubberley Property Responsibilites and operated City lease from PAUSD PAUSD owned and operated PAUSD portables for Hoover Elementary School Common areas Note: Shaded areas are for illustra�ve purposes only, and do not represent actual property lines. Item 13 Attachment C - Cubberley Property Responsibilities Item 13: Staff Report Pg. 15 Packet Pg. 194 of 228 Atachment C Proposed Cubberley Property Responsibili�es Under Long-Term Ground Lease and operated long term ground lease from PAUSD PAUSD leases back from City PAUSD portables for Hoover Elementary School Note: Shaded areas are for illustra�ve purposes only, and do not represent actual property lines. Item 13 Attachment C - Cubberley Property Responsibilities Item 13: Staff Report Pg. 16 Packet Pg. 195 of 228 City Council Staff Report From: City Manager Report Type: ACTION ITEMS Lead Department: City Manager Meeting Date: October 16, 2023 Report #:2309-2022 TITLE City Council Discussion and Potential Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA) Agreement for Cities Association of Santa Clara County; CEQA: Not a Project RECOMMENDATION Staff recommends the City Council discuss the Proposed Joint Powers Agency (JPA) Agreement for Cities Association of Santa Clara County (CASCC) and provide potential direction to staff and to Mayor Kou as the City‘s representative on CASCC, on any feedback to the Cities Association of Santa Clara County (CASCC) regarding the proposed terms. EXECUTIVE SUMMARY The Cities Association of Santa Clara County (CASCC) is pursuing a more formal structure, which CASCC Executive Committee members and contract staff state will provide increased clarity relating to tax status and governmental immunities, and limit the potential liability of Member Agencies. CASCC drafted a JPA Agreement and is seeking Member Agencies input and approval of a proposed JPA. Staff is requesting Council review and feedback on the proposed JPA Agreement. Cities and towns throughout Santa Clara County are similarly considering the proposed Agreement, and some are likely to approve the Agreement as drafted. Should Council propose changes to the Agreement, staff will convey this feedback to CASCC. CASCC may then consider revising the draft Agreement in response to this feedback, and the final Agreement will be brought back for Council consideration. BACKGROUND The resulting proposed Draft JPA Agreement is provided as Attachment A. Over thirty years ago, the cities and towns in Santa Clara County (“Member Agencies”) established the CASCC to improve cooperation on issues of common interest. The intent was to consolidate and maintain the functions and purposes of the Inter-City Council, the Santa Clara County Mayor’s Conference, and the City Selection Committee for Santa Clara County. The cities and towns entered into an Item 14 Item 14 Staff Report Item 14: Staff Report Pg. 1 Packet Pg. 196 of 228 informal agreement to provide some structure and outline the purpose and function of the CASCC, eventually adopting bylaws and operating as an unincorporated association. •Since CASCC formation, California and federal law has changed. •CASCC was not originally registered as a governmental entity and attempts to do so with the IRS have been unsuccessful. •CASCC is growing with respect to its responsibilities and involvement in projects of mutual interest (e.g., Planning Collaborative, SCSC Airplane Noise Roundtable, Silicon Valley Clean Energy, City Selection Committee). Item 14 Item 14 Staff Report Item 14: Staff Report Pg. 2 Packet Pg. 197 of 228 to the City and Town Councils of the proposed Member Agencies for their consideration. The CASCC Executive Board has expressed a goal of finalizing the JPA in November. ANALYSIS Alternatives to a JPA - CASCC has indicated it is seeking to become a JPA to ensure governmental immunities and decrease liability for member agencies. There are alternative ways of avoiding liability, such as refraining from hiring employees and avoiding involvement in initiatives without sufficient management or checks and balances. Over time, CASCC has also been challenged to maintain financial and organizational management given limited resource allocation and oversight. At this point, it is unclear whether the JPA will proceed without Palo Alto participation. If Palo Alto were to propose that CASCC continue as an unincorporated association, the City would likely need to be prepared to offer an alternative. Such an alternative could be that cities provide greater in-kind support such as acting as fiscal agent, and/or providing other services to assist with the ongoing functions of the organization. This could be referred to the city managers and city attorneys groups for development. Scope and Purpose – Article 7 of the Draft Agreement outlines activities that the JPA would be prohibited from engaging in, such as purchasing real property, hiring employees, and issuing debt. Beyond these specific functions, the language describing what the JPA can do (Articles 2 and 6) —its purposes and powers —is very broad. Council may wish to discuss whether these activities should be further limited, either by adding prohibited activities or by more tightly defining its purposes and powers. This may also include recommendations on the level of consensus required before the JPA were to represent positions on issues or undertake new initiatives. For example, whether a simple majority or supermajority should be required for action. Fiscal Management – Timing and Ability to Provide Budget Input. Article 8 of the Draft Agreement provides the Board responsibility for developing a budget. However, it does not specify an opportunity for member agencies to review and provide input to budget decisions. The Silicon Valley Regional Interoperability Authority (SVRIA), Item 14 Item 14 Staff Report Item 14: Staff Report Pg. 3 Packet Pg. 198 of 228 used as a model for the JPA, established a Working Committee1 consisting of member agency staff and assigns to the Working Committee responsibility for ensuring preparation and establishes deadlines for distribution of the budget to members. This ensures member agencies can provide timely input to the JPA budget preparation. b.Cost Allocation Specificity. The Draft Agreement does not specify cost allocations to Member agencies. While CASCC representatives have indicated no plans to change current fees and allocations to individual cities, neither the initial dues structure nor process for future changes are stated. Having clearly defined cost allocations and a process for changes would provide cities and towns greater clarity when making decisions about becoming a JPA member. 4.Undertaking New Initiatives/Programs – In Article 15 of the Draft Agreement, the definition of a significant program assumes the JPA’s ability to determine whether an activity will require $10,000 or more annually. In response to feedback received, the Draft Agreement authorizes the Board to appoint a Working Committee to study a significant activity and provide input to the Board. However, the need to establish a Working Committee when an opportunity has already been presented would likely be a barrier to implementation, versus establishing a Working Committee in advance, responsible for identifying what may constitute a significant program, and advising the Board on issues that may not initially appear to be significant. In its discussions, CASCC has indicated the Executive Committee would serve this function in lieu of a Working Committee. However, given the breadth of powers proposed for the JPA, staff recommends that a Working Committee comprised of staff from Member agencies be required as advisory to the Board. Some initiatives can appear no-cost or low cost when first suggested, only later becoming clear to require significant time and/or funding to implement. A Working Committee composed of staff would ensure that professional expertise on a range of topics can support decision-making and help ensure focus of JPA resources. 5.Contract/Contractor Oversight and Performance Review – The contractual professional services provided by the Executive Director, General Counsel, Auditor, and potentially other services are described in Article 14. The draft Agreement does not specify, however, the responsibilities of the Board and Executive Committee for the selection, performance evaluation, and potential termination of the contractors providing these services. Absent a member agency staff structure for supporting these duties, this can be a difficult function for the Board and Executive Committee to perform. 1 https://svria.org/wp-content/uploads/2021/09/JPA-Agreement-SVRIA-5-26-16.pdf Item 14 Item 14 Staff Report Item 14: Staff Report Pg. 4 Packet Pg. 199 of 228 6.Executive Committee Authority – Decisions other than the annual budget are largely left to the Executive Committee (see Article 11 of the Draft Agreement). This raises that potential that Executive Committee decisions and activities may not align with the Board. Overall, staff believes that proceeding with a JPA and addressing the issues above would best be undertaken with the expectation that Member agencies will need to devote more time to ensuring appropriate consultation and engagement on CASCC activities and operations. Staff requests feedback from Council on the above summarized issues, and which among these issues or others should be communicated to CASCC as requested revisions to the draft Agreement. FISCAL/RESOURCE IMPACT The primary fiscal impacts are related to the future dues structure and cost allocation that would be associated with the JPA. Since the Draft Agreement does not define this, there is the potential that future costs may vary from current contributions. The City currently contributes $18,314 to CASCC annually. The CASCC reported a budget of $293,403 total revenues and $212,159 total expenses for fiscal year 2024. Future dues will be established after approval of the JPA, and the CASCC has stated that no changes are anticipated. Long-term costs are unknown. STAKEHOLDER ENGAGEMENT The CASCC circulated a Draft Agreement to all City and Town Attorneys in the County for their review and input and incorporated significant changes into the agreement. The Acting Executive Director and the General Counsel attended two virtual meetings with most of the Town or City Attorneys or Assistant City Attorneys on September 14 and September 28, 2022. A separate and additional meeting was held by the Santa Clara City Attorneys Roundtable on September 16, 2022. CASCC representatives presented the Draft Agreement at the Santa Clara County City Managers Association (“SCCCMA”) meeting on October 12, 2022. Following that meeting, the City Managers submitted a list of 17 questions to CASCC representatives. Due to changes in CASCC over the last year, including a new General Counsel and the rotation of new City Council Board representatives, the answers to those questions were not completed until August 2023. These responses (Attachment B) were then circulated to the SCCCMA members. On August 9, 2023, CASCC representatives again met with the SCCCMA to discuss the responses to the October 12, 2022 questions, review the Draft Agreement, and receive additional input. Following that meeting, further edits were made to the Draft Agreement. On September 14, 2023, the CASCC Board received the updated Draft Agreement that included edits that responded to comments of the City/Town Attorneys and City Managers. At the meeting, the CASCC Board received comments from Board members and city managers in Item 14 Item 14 Staff Report Item 14: Staff Report Pg. 5 Packet Pg. 200 of 228 attendance. The CASCC Board directed some additional changes, resulting in the Draft Agreement now under review. ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: Item 14 Item 14 Staff Report Item 14: Staff Report Pg. 6 Packet Pg. 201 of 228 1 JOINT POWERS AGENCY AGREEMENT FOR CITIES ASSOCIATION OF SANTA CLARA COUNTY This Joint Powers Agreement (“Agreement” or “JPA”) for the Cities Association of Santa Clara County is entered into by and among the cities (“Members”), which are organized and existing under the Constitution and laws of the State of California in which public agencies are located in the County of Santa Clara, and upon approval and full execution of the Agreement, creates the Cities Association of Santa Clara County Joint Powers Agency (“Agency”). RECITALS WHEREAS, Articles 1 and 2, Chapter 5, Division 7, Title 1 of the California Government Code (Section 6500 et seq.) permit two or more public agencies by agreement to jointly exercise powers common to the Members; and WHEREAS, the public agency Members executing this JPA are cities or towns within the jurisdiction of the County of Santa Clara (“County”); and WHEREAS, the Cities Association of Santa Clara County has existed as an unincorporated association since 1990 and desires to formalize the relationship between its City and Town members and form a Joint Powers Agency in order to carry out activities for the good of all its Members; and WHEREAS, the Members executing this Agreement, desire to join together to create a separate Joint Powers Agency for the purpose of promoting cooperation among the Members; advocating for positive action; enhancing the quality of life for the residents of the County and their individual cities; and encouraging other joint and cooperative endeavors among the public agencies for their mutual benefit. NOW, THEREFORE, the Parties agree to the following: AGREEMENT ARTICLE 1 - DEFINITIONS 1.1 “Associate Member” shall mean any non-city local agency, located within jurisdictional authority of the County of Santa Clara, and shall have duly executed and delivered to the Agency an Associate Membership Agreement in the form of and as further provided in the Bylaws of the Agency, as further provided in Article 32 herein. 1.2 “Agency” shall mean the Cities Association of Santa Clara County Joint Powers Agency created by this Agreement. 1.3 “Board of Directors” or “Board” shall mean the governing body of the Agency. 1.4 “Executive Committee” shall mean the Executive Committee of the Board of Directors of the Agency. Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 7 Packet Pg. 202 of 228 2 1.5 “Fiscal Year” shall mean that period of twelve (12) months which is established by the Board of Directors or the Bylaws as the fiscal year of the Agency, which shall run from July 1 to June 30 of each year. 1.6 “Government Code” shall mean the California Government Code, as amended. 1.7 “Joint Powers Law” shall mean Articles 1 and 2, Chapter 5, Division 7, Title 1 (commencing with Section 6500) of the Government Code, known as the Joint Exercise of Powers Act, as amended. 1.8 “Legislative Body” shall mean the legislative board of each Public Agency that is a Member of the Agency. 1.9 “Member” shall mean any city which has executed this Agreement and has become a member of the Agency. The complete list of Members is set forth in Exhibit “A” attached hereto and incorporated herein by this reference. 1.10 “Parties” shall mean Members or Associate Members who are party to this Agreement. 1.11 “Public Agency” shall mean public agency as defined in Government Code Section 6500, as amended. 1.12 Unless the context clearly requires otherwise, as used in this Agreement, words of the masculine, feminine or neutral gender shall be construed to include each other gender, when appropriate, and words of the singular number shall be construed to include the plural number, and vice versa, when appropriate. This Agreement and all the terms and provisions herein shall be construed to effectuate the purposes set forth and to sustain the validity of those purposes. ARTICLE 2 - CREATION AND PURPOSES 2.1 This Agreement is entered into by the Members in order to: 2.1.1 Review, study, develop consensus positions, and take action on issues of interest to Members; 2.1.2 Focus on local and regional matters that are important to our future; 2.1.3 Develop a common agenda for Santa Clara County cities; 2.1.4 Serve as a unified voice for Santa Clara County cities in relationship to other agencies, organizations, and levels of government; 2.1.5 Establish and administer the City Selection Committee pursuant to Government Code Section 50270 et seq., as amended and make appointments to regional and local bodies as provided by law; 2.1.6 Serve as a source of education, information, and networking for officials from all cities in Santa Clara County; Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 8 Packet Pg. 203 of 228 3 2.1.7 Provide a forum for non-city individuals, groups and organizations and the private sector to address items of interest to Santa Clara County cities; 2.1.8 Reduce duplication of effort by sharing information and provide a unified voice and strong advocacy on legislation and other important issues that affect its Members; 2.1.9 Strengthen the Members’ and Agency’s standing at the regional, State and Federal level; 2.1.10 Strive to respect local control, provide regional perspective, and make a difference to elevate the quality of life throughout the County; 2.1.11 Provide a forum for discussion and study of problems common to the Members and to assist in the development and implementation of solutions to such problems; 2.1.12 Provide a method for the Members to collaborate and jointly develop policies that benefit the region; and 2.1.13 Collaborate in such a way that is efficient, saves the jurisdictions the expense of individual effort, and creates positive outcomes. ARTICLE 3 - PARTIES TO AGREEMENT Each Member, as a Party to this Agreement, intends to and does contract with all other Members as Parties to this Agreement and, with other Public Agencies as may later be added as Parties to this Agreement pursuant to the Joint Powers Law. The withdrawal of any party from this Agreement, pursuant to Article 20, shall not affect this Agreement or the remaining Members’ obligations. ARTICLE 4 – FORMATION; TERM This Agreement shall become effective when fully executed and returned to the Agency by at least eight (8) Members, but only as to those Members that have executed the Agreement. The Agency shall promptly notify all Members in writing of the effective date. After one full year after the initial formation of the Agency, should the membership fall below seven (7) Members due to the withdrawal of Members and the membership level remains at below seven (7) Members for a period of at least one (1) year and a similar joint powers authority, with the same or similar powers and functions is formed containing a majority of cities in the County of Santa Clara, the Agency shall change its name and permit the new organization to take on the name of the Agency. Notwithstanding the name change, this Agreement shall continue in effect until terminated as provided herein. The termination of this Agreement with respect to an individual Member upon its withdrawal from membership in the Agency shall not operate to terminate this Agreement with respect to the remaining Members. ARTICLE 5 - CREATION OF THE AGENCY Pursuant to the Joint Powers Law, there is hereby created a public entity, separate and apart from the Parties hereto, to be known as the “Cities Association of Santa Clara County Joint Powers Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 9 Packet Pg. 204 of 228 4 Agency” with powers as are set forth herein. Upon formation of the Agency as described in Article 4, the Cities Association of Santa Clara County, an unincorporated association shall follow the process of dissolution and cease to exist. ARTICLE 6 - POWERS OF THE AGENCY 6.1 Subject to the terms of this agreement, the Agency shall have all of the powers of a public agency as defined in the Government Code Section 6500 as amended and all additional powers set forth in the Joint Powers Law and other statutes applicable to the Joint Powers Agency created hereby and is authorized to do all acts necessary for the exercise of these powers on behalf of its Members. Powers include, but are not limited to, the following, in the Agency’s own name: 6.1.1 To make and enter into contracts; 6.1.2 To incur debts, liabilities, and obligations and to encumber personal property; 6.1.3 To acquire, hold, or dispose of personal property, contributions, and donations of personal property, funds, services, and other forms of assistance from persons, firms, corporations, and government entities; 6.1.4 To sue and be sued in its own name, and to settle any claim against it; 6.1.5 To receive and use contributions and advances from Members as provided in Government Code Section 6504, as amended including contributions or advances of personnel and equipment; 6.1.6 To invest any money in its treasury that is not required for its immediate necessities, pursuant to Government Code Section 6509.5, as amended; 6.1.7 To acquire, construct, manage, maintain, or operate title to personal property, or rights, or any interest therein; 6.1.8 To retain the services of agents, contractors, and consultants; 6.1.9 To receive, collect, and disburse monies; 6.1.10 To conduct studies, tests, evaluations, and similar activities; 6.1.11 To contract for services from Members, including in-kind services; 6.1.12 To conduct public outreach and education; 6.1.13 To participate in pilot and demonstration projects; 6.1.14 To charge for services, programs, and/or systems; 6.1.15 To work with elected officials and local, regional, state, and federal agencies, including other joint powers agencies and unincorporated associations to pursue funding, enter agreements and otherwise carry out the purposes of the Agency; and Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 10 Packet Pg. 205 of 228 5 6.1.16 Subject to this Agreement or the Bylaws of the Agency, and only as authorized by the Joint Powers Law, to exercise other reasonable and necessary powers in furtherance or support of any purpose of the Agency. ARTICLE 7 - RESTRICTIONS ON POWERS 7.1 Pursuant to and to the extent required by Government Code Section 6509, as amended, the Agency shall be restricted in the exercise of its powers and shall exercise its powers in the same manner as the Town of Los Gatos is restricted in its exercise of similar powers; provided that, if the Town of Los Gatos shall cease to be a Member, then the Agency shall be restricted in the exercise of its power in the same manner as another Member agreed to by the majority of the Board of Directors. Unless expressly provided for, the Agency does not, by virtue of this Section or this Agreement, subject itself to the internal policies or ordinances of any Member. 7.2 The Agency shall not have the power of eminent domain. 7.3 The Agency shall not have the power of taxation. The Agency may not impose taxes but may receive the proceeds of taxes imposed by other entities or public funds from other entities. 7.4 The Agency shall not have the power to acquire, purchase, hold or dispose of real property. 7.5 The Agency shall not have the power to hire employees. 7.6 The Agency shall not have the power to issue debt. ARTICLE 8 - BOARD OF DIRECTORS 8.1 The Agency shall be governed by the Board of Directors, which shall be composed of one Director representing each Member. Each Member’s Legislative Body, according to its own procedures, shall appoint a Member of the Legislative Body as a Director to represent the Member on the Board of Directors. The Director shall serve at the pleasure of their respective Legislative Body. The Legislative Body of each Member shall also appoint one alternate Director (“Alternate”) who shall participate in and vote at any meeting of the Board when the primary Director is absent. Any vacancy in a Director or Alternate position shall be filled by the appointing Member’s Legislative Body, subject to the provisions of this Article. Immediately upon admission of a new Member, the new Member shall be entitled and required to appoint a Director and one alternate Director. Every Director or Alternate shall be a Council Member or Mayor of their individual Member city. 8.2 A Director and/or Alternate shall be removed from the Board of Directors upon the occurrence of any one of the following events: (1) the Agency receives written notice from the appointing Member of the removal and/or replacement of the Director or Alternate; (2) the withdrawal of the Member from this Agreement; (3) the death or resignation of the Director or Alternate; (4) the Agency receives written notice from the Member that the Director or Alternate is no longer qualified as provided in the first paragraph of this Article 8; or as set forth in Article 21. Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 11 Packet Pg. 206 of 228 6 8.3 The Board of Directors shall have the following powers and functions: 8.3.1 Except as otherwise provided in this Agreement, the Board shall exercise all powers and conduct all business of the Agency, either directly or by delegation to other bodies or persons; 8.3.2 The Board shall elect an Executive Committee, as provided in Article 11; 8.3.3 The Board shall be the policy setting body of the Agency; 8.3.4 The Board shall appoint or retain the services of necessary agents, consultants, or independent contractors in accordance with Article 14; 8.3.5 The Board shall cause to be prepared, and shall review, modify as necessary, and adopt the annual operating budget of the Agency. Adoption of the budget may not be delegated. The Board shall adopt their budget no later than the first April 30th following formation and then subsequently by April 30th of each successive year. The Board shall review, set, and adopt annual dues to be funded by Agency Members; 8.3.6 The Board shall receive, review and act upon periodic reports and audits of the funds of the Agency, as required under Article 16 of this Agreement; 8.3.7 The Board may adopt policies regarding personnel, conflicts of interest and other matters necessary or convenient for the efficient operation of the Agency; 8.3.8 The Board shall adopt a set of priorities and work plan for each fiscal year; and 8.3.9 Subject to the terms of this Agreement, the Board shall have such other powers and duties as are reasonably necessary to carry out the purposes of the Agency. ARTICLE 9 – MEETINGS OF THE BOARD OF DIRECTORS 9.1 The Board of Directors shall hold at least one regular meeting each year. The Board of Directors shall fix by resolution, or in the Bylaws, the date, time, and location of each regular meeting. The Board or Executive Director, in consultation with the President of the Board as provided in Article 10 below, may call special meetings. 9.2 Each meeting of the Board of Directors, including without limitation, regular, adjourned regular and special meetings shall be called, noticed, held, and conducted in accordance with the Ralph M. Brown Act, Government Code Section 54950 et seq., as amended. 9.3 The Agency shall require the Secretary/Treasurer or designee to take and maintain minutes of all regular, adjourned regular and special meetings. As soon as practicable after each meeting, the Secretary/Treasurer or designee shall forward to each Board Member, a copy of the minutes of the meeting. 9.4 A majority of the Members of the Board shall constitute a quorum for the transaction of business. Unless otherwise required by law, a vote of the majority of a quorum of the members Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 12 Packet Pg. 207 of 228 7 present at a meeting is sufficient to take any action, unless otherwise specified in this Agreement. However, less than a quorum may adjourn the meeting to a future date. 9.5 Each Member of the Board shall have one vote. ARTICLE 10 - OFFICERS The Board shall elect as Officers of the Agency President, First Vice President, Second Vice President, Secretary/Treasurer, and Immediate Past President at its first meeting. Thereafter, except as may be otherwise provided in the Bylaws of the Agency, the Board shall elect the President, First Vice President, Second Vice President, Secretary/Treasurer, and Immediate Past President, at the November Board of Directors meeting, or the first meeting held on or after November 1 of each year. Of the Officers, the President, and at least two other Officers, must also be members of the Board of Directors. The remaining Officers may be the elected or appointed Mayor or Council Member of any Member of the Agency regardless of whether they are on the Board of Directors. Each Officer shall assume the duties of his or her office upon election. If the President ceases to be a Member of the Board, the resulting vacancy shall be filled at the next meeting of the Board held after the vacancy occurs, or at a special meeting of the Board called to fill the vacancy. The President shall preside at and conduct all meetings of the Board. Should the Board President not be available then the highest-level Officer, who is a member of the Board of Directors, shall preside. If that individual is unavailable, then any Director appointed by the President may preside. The Board may appoint other officers as it considers necessary. The duties of the Secretary/Treasurer are set forth in Articles 16 and 17 of this Agreement. The Secretary/Treasurer shall be appointed by the Board of Directors and shall be eligible to serve as Secretary/Treasurer, as provided in the Joint Powers Law. ARTICLE 11 - EXECUTIVE COMMITTEE At such time as there are nine Members, the Board shall establish and elect an Executive Committee of the Board which shall consist solely of three (3) Officers consisting of the President, First Vice President, and Secretary/Treasurer, which shall exist thereafter. At such time as there are 11 Members, the Board shall establish and elect an Executive Committee of the Board which shall consist solely of five (5) Officers, with the addition of the Immediate Past President, which shall exist thereafter. Should the Immediate Past President no longer hold elected office then a Member at Large may be appointed by the Board to serve on the Executive Committee. The qualifications of the Member at Large are that they must be an elected or appointed Mayor or Council Member of a Member of the Agency but need not be on the Board of Directors. The terms of office of the Members of the Executive Committee shall be one year. The Executive Committee shall conduct the business of the Agency between meetings of the Board, exercising all those powers as provided for in this Article, or as otherwise delegated to it by the Board. The Executive Committee, subject to approval by the Board of Directors, shall exercise all powers or duties of the Board relating to the entering, approval and execution of agreements, leases, and other instruments of or relating to the finances of the Joint Powers Agency within the previously Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 13 Packet Pg. 208 of 228 8 approved annual budget or amended budget. The Executive Committee may have additional powers delegated to it by the Board, except for the adoption of the Agency’s annual budget. Any additional powers and duties delegated shall be specified in a Resolution adopted by the Board. The Executive Committee shall obtain approval from the Board before authorizing or conducting any investigations into the business of the Agency and before taking personnel action. These actions must be authorized by a majority vote of the Executive Committee. Each meeting of the Executive Committee shall be called, noticed, held, and conducted in accordance with the Ralph M. Brown Act, Government Code Section 54950 et seq., as amended. ARTICLE 12 - COMMITTEES The Board may establish committees, as it deems appropriate to conduct the business of the Agency or it may, in the Bylaws or by resolution, delegate this power to the Executive Committee by Resolution. Members of committees, except as otherwise stated in this Agreement, shall be appointed by the President. Each committee shall have those duties as determined by whichever Agency body created it or as otherwise set forth in the Bylaws. Each committee shall meet on the call of its chairperson and shall report to and be directed by whichever entity created it. No more than one representative from each jurisdiction shall serve on each committee. Membership of any committee may consist in whole or in part of persons who are not members of the Board; provided that the Board may delegate decision-making powers and duties only to a committee, a majority of the members of which are Board Members. Any committee, except the City Selection Committee, in which a majority of the members are not Board Members may function only in an advisory capacity. The Legislative Action Committee shall be a permanent Committee of the Agency chaired by the Second Vice President and whose members shall be appointed by the Agency Members. Should there be no Second Vice President, the Legislative Action Committee shall be chaired by the First Vice President. All standing committees shall abide by the Ralph M. Brown Act, Government Code Section 54950 et seq., as amended. ARTICLE 13 – CITY SELECTION COMMITTEE The City Selection Committee is established pursuant to State law and the Agency shall administer the City Selection Committee as follows: The City Selection Committee shall be a permanent committee of the Agency, consisting of the Mayor of each City or Town, consistent with Government Code 50270, as amended. The Agency shall allow all cities in the County to participate in the City Selection Committee, whether or not they are members of the Agency. ARTICLE 14 – PROFESSIONAL SERVICES 14.1 The Board of Directors may contract with individuals or companies to provide the following services at the pleasure of the Board of Directors: Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 14 Packet Pg. 209 of 228 9 14.1.1 Executive Director. The Board shall contract with a consultant or independent contractor to fulfill the following duties of an Executive Director: manage the affairs of the Agency, subject to the general supervision and policy direction of the Board and the Executive Committee; oversee the day-to-day activities of the Agency; select and manage the activities of all consultants and independent contractors to the Agency; be responsible for required filings by the Agency with the State of California; prepare or delegate the preparation of all meeting notices, minutes, and required documentation of the Agency; prepare and propose an annual budget; prepare reports and recommendations for consideration by the Executive Committee or Board; be responsible for billing and collection of annual dues; maintain the records of the Agency; assist Local Agencies in the preparation and filing of applications for participation in the financing programs of the Agency; expedite the processing of these applications; pay all invoices, taxes and amounts due; and perform other duties as are assigned by the Board and Executive Committee. The Executive Director may have the authority to sign agreements, applications, and other documents on behalf the Agency, if authorized by the Board or Executive Committee. The Executive Director shall have the Authority to enter into individual Agreements with a single vendor over the course of a fiscal year, on behalf of the Agency, up to the amount set by the Bylaws. 14.1.2 General Counsel. The Board shall contract with a consultant, independent contractor, or law firm to fulfill the duties of General Legal Counsel. The General Counsel shall take direction from the majority of the Board of Directors. The General Counsel shall be a member in good standing of the California State Bar. The General Counsel shall be responsible for the legal affairs of the Agency; 14.1.3 Auditor. The Auditor shall be a Certified Public Accountant licensed to practice in the State of California. The Auditor will conduct annual financial audits of the Agency; 14.1.4 Other services. The Executive Director may hire additional consultants and independent contractors, as appropriate, based upon a previously approved budget; 14.1.5 The Agency shall not contract with or become a member of the California Public Employees Retirement System (“PERS”), nor shall any agent, consultant or independent contractor of the Agency become a member of PERS or be entitled to a pension or retirement from PERS as a result of service to the Agency; and 14.1.6 The consultants and independent contractors fulfilling the duties of Executive Director, the Auditor, the General Counsel and any other consultants or independent contractors who provide services to the Agency shall be compensated in such manner as shall be approved by the Board and as permitted by applicable law. ARTICLE 15 - SIGNIFICANT PROGRAMS If the Board desires to create significant programs or activities which will utilize substantial resources of the Agency, it shall do so by a vote of the Board. If the Board deems it necessary, it may Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 15 Packet Pg. 210 of 228 10 appoint a working committee to study the significant program or activity and provide input to the Board. Substantial resources and significant program or activity shall be defined as any program or activity requiring $10,000 or more in annual expenditures; this amount shall be increased by the annual cost of living CPI index. Any new significant program or activity shall require a work plan and a two-thirds vote of the Members in order to be initiated. When a new significant program is intentionally designed to be limited in scope, such that it only provides benefits to particular Members, the Agency may enter into a specific program or project Agreement that includes relevant terms regarding the particular affected Members, and any such Agreement shall be approved by the Board prior to or at the same time as formation of the significant program. These limited scope Agreements shall be subject to approval by the Board by a two-thirds vote of the Members. ARTICLE 16 - ACCOUNTS AND RECORDS 16.1 The Agency shall adopt an operating budget pursuant to Section 8.3.5 of Article 8 of this Agreement. 16.2 The Secretary/Treasurer of the Agency or the Executive Director shall establish and maintain funds and accounts as may be required by good accounting practices and by the Board. Books and records of the Agency shall be open to and made available for inspection at all reasonable times upon request by authorized representatives of the Members. 16.3 The Agency shall adhere to the standard of strict accountability for funds and report all receipts and disbursements as set forth in the Joint Powers Law. 16.4 Auditor’s Report. The Auditor, within one hundred and twenty (120) days after the close of each Fiscal Year, shall give a complete written report of all financial activities for the prior Fiscal Year to the Board. 16.5 The Agency shall either make or contract with a Certified Public Accountant to make an annual Fiscal Year audit of all accounts and records of the Agency, conforming in all respects with the requirements of the Joint Powers Law. A report of the audit shall be filed as a public record and be provided to each of the Members, and with the County Auditor of the County of Santa Clara. Costs of the audit shall be considered a general expense of the Agency. Any costs of the audit shall be borne by the Agency and shall be a charge against any unencumbered funds of the Agency available for this purpose. ARTICLE 17 - RESPONSIBILITIES FOR FUNDS AND PROPERTY 17.1 The Secretary/Treasurer, or his or her designee, shall have the custody of and disburse the Agency’s funds. Proceeds of similar obligations of the Agency may be deposited with a trustee, agent or other depositary and shall not be considered the Agency’s funds for purposes of this Article. The Secretary/Treasurer may delegate disbursements to persons as may be authorized by the Board or the Executive Committee to perform that function, subject to the requirements of Section 17.2 below. Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 16 Packet Pg. 211 of 228 11 17.2 The Secretary/Treasurer or designee shall perform all functions then required to be performed by the Treasurer under the Joint Powers Law. The Secretary/Treasurer shall review the financial statements and the annual audit of the Agency. 17.3 Pursuant to Government Code Section 6505.1, as amended, the Executive Director, the Secretary/Treasurer, and other persons as the Board may designate, shall have charge of, handle, and have access to the property of the Agency. The Agency shall secure and pay for a fidelity bond or bonds, in an amount or amounts and in a form specified by the Board of Directors, covering any officers or agents of the Agency who are authorized to hold or disburse funds of the Agency and any officers or agents who are authorized to have charge of, handle and have access to property of the Agency. ARTICLE 18 - MEMBER RESPONSIBILITIES 18.1 Each Member shall have the following responsibilities: 18.1.1 To appoint its Director and Alternate to, or remove its Director and Alternate, from the Board, as set forth in Article 8; 18.1.2 To consider proposed amendments to this Agreement as set forth in Article 29; 18.1.3 To make contributions in the form of annual membership assessments and fees, if any, determined by the Board for the purpose of defraying the costs of providing the annual benefits accruing directly to each party from this Agreement; and 18.1.4 If a Member provides written notice to the Agency of its election to relinquish its status as a Member, or if a Member fails to be represented at four (4) or more consecutive regular meetings of the Board of Directors, then that Member may be deemed to be a suspended Member, with all the rights and duties of an Associate Member, upon action of the Board of Directors duly adopted. Prior to the suspension, the President shall contact the Mayor and request that another Council Member be appointed or that reinstatement for the current Member be requested. The suspension shall be approved by the Board of Directors. Promptly following that action by the Board of Directors, the Member may be reinstated by informing the Board of its intent to be reinstated within thirty (30) days and to attend all future meetings either via the Director or Alternate. Removal of a Member for failure of the Director to attend meetings shall not relieve the Member from its obligations under any outstanding agreements relating to the Agency’s financial obligations, except in accordance with this Agreement. ARTICLE 19 - NEW MEMBERS With the approval of the Board, any city located within the County of Santa Clara may become a party as a Member to this Agreement. A city requesting membership shall apply by presenting to the Agency, a resolution of the Legislative Body of the City, evidencing its approval of this Agreement. The date that the applying city will become a Member will be determined by the Board. The Agency shall Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 17 Packet Pg. 212 of 228 12 accept new Members upon a majority affirmative vote of the entire Board and upon payment of any Board determined assessments and fees. ARTICLE 20 - WITHDRAWAL A Member may terminate its membership in the Agency at any time upon giving one hundred and eighty (180) days written notice of withdrawal to the Agency. The notice shall be given to the Board of Directors. The effective date shall be the conclusion of the first Board Meeting which occurs after the one hundred and eighty (180) day notice period has passed. Any Member who withdraws shall remain obligated to pay its share of all debts, liabilities, and obligations incurred or accrued through the end of the current fiscal year of the Agency. The withdrawal does not in any way impair any contracts, resolutions, indentures, or other obligations of the Agency then in effect. In the event of a disagreement between the Agency and the withdrawing Member as to whether the withdrawal shall cause the impairment of any contracts, resolutions, indentures, or other obligations of the Agency, the determination shall be made by a majority vote of the Board of Directors. Any Member that withdraws and later seeks reinstatement to the Agency shall provide funds to the Agency, proportionate to their responsibility for the current fiscal year, as if the Member had never left the Agency. A withdrawing Member shall, in all events, remain liable for its proportionate share of: (i) its full amount of its proportionate share of the adopted fiscal year budget; (ii) any call for funds or assessment levied by the Agency prior to the date it provides its notice of withdrawal; (iii) any contribution in existence at the time of the notice of withdrawal. ARTICLE 21 - REMOVAL If the Board of Directors determines that reasonable cause exists to remove a Director from the Board, it can remove the Director and request that the Member who appointed the Director appoint a new Director. The Board may, by two-thirds majority vote of the entire Board, remove a Member based on a Member's breach of any material term of this Agreement, and the failure to cure that breach within sixty (60) days written notice. A terminated Member shall remain liable for any obligation under this Agreement as described above. Failure to pay dues within 60 days following notice shall result in a Member becoming suspended with all the rights of an Associate Member. A suspended Member shall immediately have its voting rights restored upon full payment of dues. ARTICLE 22 - OBLIGATIONS OF AGENCY The debts, liabilities, and obligations of the Agency shall not be the debts, liabilities, and obligations of the Members. Any Member may separately contract for, or assume responsibility for, specific debts, liabilities, or obligations of the Agency. Nothing in this Agreement shall be interpreted to limit the applicability of the provisions of Government Code Section 895.6. Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 18 Packet Pg. 213 of 228 13 ARTICLE 23 - TERMINATION AND DISTRIBUTION OF ASSETS This Agreement may be terminated at any time that no financial obligations of the Agency are outstanding, with the approval of two-thirds of the Members. Upon termination of this Agreement, all assets of the Agency shall, after payment of all unpaid costs, expenses and charges incurred under this Agreement, be distributed among the parties to this Agreement, in accordance with the respective contributions of each of the Parties. ARTICLE 24 - LIABILITY OF BOARD OF DIRECTORS, OFFICERS, AND COMMITTEE MEMBERS 24.1 The Members of the Board of Directors, Officers, and Committee Members of the Agency shall use ordinary care and reasonable diligence in the exercise of their powers and in the performance of their duties pursuant to this Agreement. They shall not be individually liable for any mistake of judgment, or any other action made, taken, or omitted by them in good faith, nor for any act or omission by any agent, consultant or independent contractor selected with reasonable care, nor for loss incurred, resulting from any action made, taken, or omitted by them in good faith and with reasonable care through investment of Agency funds, or failure to invest. 24.2 No Director, Officer, or Committee Member shall be responsible for any act or omission of any other Director, Officer, or Committee Member. Unless otherwise required by law, no Director, Officer, or Committee Member shall be required to give a bond or other security to guarantee the faithful performance of his or her duties pursuant to this Agreement. 24.3 The funds of the Agency shall be used to defend, indemnify, and hold harmless the Agency for any Director, Officer, or Committee Member, for their actions taken within the scope of the Agency. Nothing herein shall limit the right of the Agency to purchase insurance to provide coverage for these types of losses. 24.4 These indemnification and defense obligations shall survive the termination of the Agreement as to any acts or omissions occurring before such termination. ARTICLE 25 - INDEMNIFICATION To the fullest extent allowed by law, the Agency shall defend, indemnify, and save harmless the Members and their governing bodies, officers, agents and employees from all claims, losses, damages, costs, injury, and liability of every kind, nature, and description directly or indirectly arising from the performance of any of the activities of the Agency or the activities undertaken pursuant to this Agreement. Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 19 Packet Pg. 214 of 228 14 ARTICLE 26 - BYLAWS The Board shall adopt Bylaws consistent with this Agreement which shall provide for the administration and management of the Agency. The provisions of the Bylaws, as modified from time to time, shall establish the operating procedures and standards for the Agency. ARTICLE 27 - NOTICES The Agency shall address notices, billings, and other communications to a Member as directed by that Member. Each Member shall provide the Agency with the email and physical address to which communications are to be sent. Members shall address notices and other communications to the Agency, at the office address of the Agency, or the email address of the Agency as directed by the Member and as set forth in the Bylaws. ARTICLE 28 - CODES The Agency shall adopt and observe a Code of Conduct and Conflict of Interest Policy. The Agency shall comply with all requirements of the Fair Political Practices Commission as required by law or regulation. ARTICLE 29 - AMENDMENT This Agreement may be amended at any time by vote of the Members, acting through their Legislative Bodies. Any amendment of this Agreement shall become effective upon receipt by the Agency of notice of the approval of the amendment by two thirds of the Legislative Bodies of the Members. ARTICLE 30 - SEVERABILITY Should any portion, term, condition, or provision of this Agreement be decided by a court of competent jurisdiction to be illegal or in conflict with any law of the State of California, or be otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions, and provisions shall not be affected. ARTICLE 31 - PROHIBITION AGAINST ASSIGNMENT No Member may assign any right, claim, or interest it may have under this Agreement, and no creditor, assignee or third-party beneficiary of any Member shall have any right, claim, or title to any part, share, interest, fund, or asset of the Agency. This Agreement shall be binding upon and shall inure to the benefit of successors of the Members. This Agreement is intended solely for the benefit of the Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 20 Packet Pg. 215 of 228 15 Agency and its Members. No third party shall be deemed a beneficiary of this Agreement or have any rights against the Agency or its Members. ARTICLE 32 - ASSOCIATE MEMBERS Any Public Agency located within the jurisdictional authority of the County of Santa Clara may, with the approval of the Board of Directors, become an Associate Member of the Agency by executing and delivering to the Agency an Associate Membership Agreement and providing an Associate Membership fee and as further provided in the Bylaws. An Associate Member shall not be entitled to representation on the Board of Directors, or to vote on any matter coming before the Board of Directors or the Agency, unless a separate written agreement is entered into between the Associate Member and the Agency. ARTICLE 33 - LIBERAL CONSTRUCTION The provisions of this Agreement shall be liberally construed as necessary or reasonably convenient to achieve the purposes of the Agency. ARTICLE 34 - NON-WAIVER No waiver of the breach of default of any of the covenants, agreements, restrictions, or conditions of this Agreement by any Member shall be construed to be a waiver of any succeeding breach of the same or other covenants, restrictions, or conditions of this Agreement. No delay or omission of exercising any right, power, or remedy in the event of a breach or default shall be construed as a waiver or a variation of any of the terms of this Agreement or any applicable agreement. ARTICLE 35 - REMEDIES FOR BREACH If any Member shall default on any obligation contained in this Agreement, the default shall not excuse any other Member from fulfilling its respective obligations under this Agreement. Any Member shall be entitled to pursue all legal and equitable remedies against another Member in response to any alleged default under this Agreement. Any and all of the remedies provided to the Members, hereunder or by law now or hereafter enacted, are cumulative and the exercise of one right or remedy shall not impair the Members to any other remedy. ARTICLE 36 - ARTICLE HEADINGS All article headings are for reference only and are not intended to define or limit the scope of any provision of this Agreement. Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 21 Packet Pg. 216 of 228 16 ARTICLE 37 - DISPUTE RESOLUTION 37.1 The Members agree that any dispute regarding the enforcement or interpretation of any term, covenant, or condition of this Agreement (“Dispute”) may first, for a period of not less than thirty (30) days, be submitted to mediation before a mutually acceptable mediator prior to initiation of litigation, or any other binding arbitration or adjudicative dispute resolution process. The Members shall: (i) mediate in good faith; (ii) exchange all documents which each believes to be relevant and material to the issue(s) in the Dispute; (iii) exchange written position papers stating their position on the Dispute and outlining the subject matter and substance of the anticipated testimony of persons having personal knowledge of the facts underlying the Dispute; and (iv) engage and cooperate in such further discovery as the Members agree or mediator suggests may be necessary to facilitate effective mediation. 37.2 Each Member shall bear its own costs, attorney’s fees, and expenses of the mediation. Venue of the mediation shall be a mutually agreeable city within Santa Clara County, California. ARTICLE 38 – INSURANCE If available, the Agency shall obtain insurance for all Members, appointed Members, and Committee Members, including, but not limited to, Directors and Officers liability insurance and general liability insurance containing policy limits in such amounts as the Board of Directors shall deem will be necessary to adequately insure against the risks of liability that may be incurred by the Agency. Insurance under this provision may include an insurance pool program. ARTICLE 39 - FILING WITH SECRETARY OF STATE The Executive Director of the Agency shall file a notice of this Agreement with the office of the California Secretary of State within thirty (30) days of its effective date, as required by Government Code Section 6503.5, as amended and within seventy (70) days of its effective date as required by Government Code Section 53051, as amended. ARTICLE 40 - COUNTERPARTS This Agreement may be executed in parts or counterparts, each part or counterpart being an exact duplicate of all other parts or counterparts, and all parts or counterparts shall be considered as constituting one complete original and may be attached together when executed by the Members hereto. Facsimile and electronic signatures shall be binding. ARTICLE 41 - AGREEMENT COMPLETE This Agreement constitutes the full and complete Agreement of the parties and supersedes any prior written Agreement between the Members on the same topic. Item 14 Attachment A - Draft Agreement Item 14: Staff Report Pg. 22 Packet Pg. 217 of 228 Answers to City Managers Questions re: Cities Association of Santa Clara County (“CASCC”) and Proposed Joint Powers Authority (“JPA”) August 7, 2023 GENERAL Question #1. a.: What do we want this organization to be? Answer #1. a.: The goals and purposes of the organization will not change. Here are the stated goals of the CASCC: • To review, study, develop consensus positions, and recommend on issues of interest to Santa Clara County cities; • To develop a common agenda for Santa Clara County cities; • To serve as a unified voice for Santa Clara County cities in relationship to other agencies, organizations, and levels of government, including the Peninsula Division of the League of California Cities; • To serve as the City Selection Committee pursuant to Government Code section 50270 et seq. and make appointments to regional and local bodies as provided by law; • To assist in the development of state-wide legislative policy through the structure of the League of California Cities; • To serve as a source of education, information, and networking for officials from all cities in Santa Clara County; • To provide a forum for non-city individuals, groups and organizations, and the private sector to address items of interest to Santa Clara County cities. And here are the stated purposes of the proposed JPA: 1. Review, study, develop consensus positions, and take action on issues of interest to Members; 2. Focus on local and regional matters that are important to our future; 3. Develop a common agenda for Santa Clara County cities; 4. Serve as a unified voice for Santa Clara County cities in relationship to other agencies, organizations, and levels of government; 5. Establishthe City Selection Committee pursuant to Government Code Section 50270 et seq., as amended and make appointments to regional and local bodies as provided by law; 6. Serve as a source of education, information, and networking for officials from all cities in Santa Clara County; 7. Provide a forum for non-city individuals, groups and organizations and the private sector to address items of interest to Santa Clara County cities; 8. Reduce duplication of effort by sharing information and provide a unified voice and strong advocacy on legislation and other important issues that affect its Members; 9. Strengthen the Members’ and Agency’s standing at the regional, State and Federal level; 10. Strive to respect local control, provide regional perspective, and make a difference to elevate the quality of life throughout the County; Item 14 Attachment B - City Managers Questions and CASCC Answers Item 14: Staff Report Pg. 23 Packet Pg. 218 of 228 ANSWERS TO CITY MANAGER’S QUESTIONS RE: CASCC JPA August 7, 2023 2 11. Provide a forum for discussion and study of problems common to the Members and to assist in the development and implementation of solutions to such problems; 12. Provide a method for the Members to collaborate and jointly develop policies that benefit the region; and 13. Collaborate in such a way that is efficient, saves the jurisdictions the expense of individual effort, and creates positive outcomes. Question #1. b.: What are the goals in forming this separate JPA as opposed to something less structured? Answer #1. b.: Currently, the CASCC is an unincorporated association under the California Corporations Code. Since its creation, the member agencies have executed some agreements to provide a bit more structure to the association. In 1990, the CASCC’s member cities also entered into an agreement governing the operation of the organization, later amended on June 30, 1995. A copy of that Agreement is attached. As authorized by this Agreement, the CASCC has also adopted bylaws, available on the organization’s website. The existing Agreements set forth a structure that is similar to what a Joint Powers Agreement would establish for a JPA. If the Cities Association becomes a JPA, neither the purpose nor the budget process would change. However, the JPA structure addresses concerns that have been raised about the CASCC such as liability and insurance. The JPA would have access to insurance that is not currently available. Governmental immunities would apply to the JPA that do not apply to an unincorporated association. A JPA would also clarify the tax status of the organization. The governance and organizational structure are also familiar to the members. Question #1. c. How is forming the JPA furthering those goals. Answer #1. c.: The most effective CASCC is one that is permanent, has governmental immunities to liabilities and employs an organizational structure that is both equitable and highly functional. Also, it will insulate the individual city/town members from future individual liability that an unincorporated association would arguably not do. The CASCC has accomplished much in the past and can accomplish many of the same programs and should the Board of Directors wish to, additional tasks with the new, permanent structure. In addition, the formation of a JPA eliminates potential tax issues as governmental entities are generally not subject to federal and State tax-related requirements. Question #2: Are there better organizational forms such as public benefits corporation or nonprofit organization? CASCC previously considered both a 501 (c) (4) non-profit social welfare organization and a JPA. In 2020, the Board of Directors chose to pursue a JPA based on factors, such as the time and cost of forming the new entity and the compatibility of the JPA structure and membership of Item 14 Attachment B - City Managers Questions and CASCC Answers Item 14: Staff Report Pg. 24 Packet Pg. 219 of 228 ANSWERS TO CITY MANAGER’S QUESTIONS RE: CASCC JPA August 7, 2023 3 the association. Considering the events that have transpired since the Board of Directors made the decision in 2020, we are even more convinced the JPA structure is best suited to the needs of the CASCC for the reasons stated above and the fact that the CASCC members are elected Council members appointed by their respective agencies and the CASCC administers the Cities Selection Committee. Question #3: What models/example joint powers agreements were used to develop the proposed CASCC JPA? Answer #3: The proposed JPA was developed by the two prior General Counsels, including Gary Baum, and he utilized the following examples: Silicon Valley Regional Interoperability Authority JPA (click on JPA document link) https://svria.org/resources/documents/ Silicon Valley Animal Control Authority JPA (click on JPA link) https://www.svaca.com/about-us Question #4: What issues, structural or otherwise, is the association facing that can only or uniquely be solved by the formation of a JPA? The JPA would provide a governmental structure for the CASCC. As a JPA, the CASCC would have governmental immunities and the liability of its members would be clarified. The JPA would have also access to some risk pools that insure governmental entities. The JPA structure itself would create a backbone of organization by clearing setting forth the scope of the JPA’s authority. See answer to Question 1c above. Question #5: Are there examples of issues that the JPA can address, particularly that cannot be accomplished through a less formal structure? See answers to Questions #3 and #4. Collaboration amongst our cities is one of the key advantages of the CASCC, which helps to strengthen our region. It is noteworthy, that in a county as populous and diverse as Santa Clara County, our cities have been able to come together and have some notable successes that could only have happened through CASCC. For example, the work of the CASCC during the COVID-19 pandemic resulted in a stronger partnership with our County, paving the way for greater trust and collaboration in the future. In recognition of their hard work, the CASCC was awarded the President’s Medal for Exemplary Service During the COVID-19 Pandemic by the SCC Board of Supervisors. Also, our cities collectively implemented ordinances to ban single-use plastic bags in each of our cities. Perhaps one of the most timely advantages of the CASCC and JPA membership would be the ability to apply for regional and statewide grants, such as the Item 14 Attachment B - City Managers Questions and CASCC Answers Item 14: Staff Report Pg. 25 Packet Pg. 220 of 228 ANSWERS TO CITY MANAGER’S QUESTIONS RE: CASCC JPA August 7, 2023 4 multi-year Reagional Early Action Planning (REAP) Grant from ABAG. CASCC contracts with Community Planning Collaborative to lead this effort. Currently, all of our cities benefit from the technical assistance provided by the Planning Collaborative. Formed in October of 2019, the Santa Clara County Planning Collaborative is a shared effort among the county's jurisdictions to help address the region's housing challenges. The jurisdictions, by working together collaboratively, save money, time, and resources by sharing information and capacity; maintain & facilitate relationships with non-profits, affordable housing advocates, and key governmental organizations. For cities that are part of the JPA, they would be able to participate in sessions with legislators and other councilmembers to benchmark and share ideas. They would also have the opportunity to vote and advocate on issues together with their fellow cities. During COVID, different groups were able to reach out to the Cities Association knowing they would be able to reach all 15 cities. Also, having a group with all 15 cities participating would complement the SCC City Managers and City Attorneys groups. Question #6: The primary purpose or goal of the formation described today (10/12/22), was for all cities to continue to participate. If that is the case will the final document be able to be ratified without each of the cities consenting? The CASCC functions best when all cities and towns within the County are members. Each of the individual Council members who serve on the CASCC board will present the JPA to their respective agencies for approval with the goal of having all the current members cities and towns participate in the JPA. It is important to note that all cities and towns would continue to participate in the City Selection Committee (CSC) even if they are not members of the JPA. Government Code Section 50270 designates the mayors of all cities and towns within the County to serve on the CSC. The purpose of the CSC is to appoint city representatives to boards, commissions, and agencies as required by law. In Santa Clara County, CASCC houses the CSC and takes responsibility for all the administrative tasks related to the CSC. While it is the goal of the CASCC and the JPA process that all cities and towns become members, the JPA is drafted so that it becomes effective once eight members join. Should the number of members fall below 7 then Article 4 of the JPA would apply: After one full year after the initial formation of the Agency, should the membership fall below seven (7) Members due to the withdrawal of Members and the membership level remains at below seven (7) Members for a period of at least one (1) year and a similar JPA, with the same or similar powers and functions is formed containing a majority of cities in the County of Santa Clara, the Agency shall change its name and permit the new organization to take on the name of the Agency. Notwithstanding Item 14 Attachment B - City Managers Questions and CASCC Answers Item 14: Staff Report Pg. 26 Packet Pg. 221 of 228 ANSWERS TO CITY MANAGER’S QUESTIONS RE: CASCC JPA August 7, 2023 5 the name change, this Agreement shall continue in effect until terminated as provided herein. The termination of this Agreement with respect to an individual Member upon its withdrawal from membership in the Agency shall not operate to terminate this Agreement with respect to the remaining Members. Note, this provision was added at the request of the City/Town Attorneys all of which provided input into the final draft of the JPA. FISCAL MANAGEMENT Question #1: How will member agencies be able to review proposed annual budget and proposed assessments in advance of adoption by the JPA board? Answer: #1: Like the process set forth in the bylaws and the process followed by the SVRIA, section 8.3.5 of the JPA requires the Board of Directors to adopt its budget by April 30 of each year. This process is designed to ensure that city/town members can consider and incorporate any increase or decrease in their dues into their budget planning before they are required to adopt their own budgets. Only the Board of Directors may adopt the budget at a publicly noticed meeting, the Executive Committee may not adopt the budget. Notice of proposed budget figures will be sent to the City Managers in advance of any budget adoption meeting. If April 30 is too late for city/town budget planning, an alternative date of March 30 could be considered. Question #2: Is it assumed that the dues structure/formula will be determined after approval of the JPA, or will this be established in advance of approval? Answer: #2: While the dues will be established after approval of the JPA, no significant increases are anticipated. The adoption of any dues structure or formula would need to be considered as part of the annual budget process. The dues’ structure and related provisions will be incorporated into the bylaws for the JPA. The CASCC will share information regarding its proposed budget and dues as soon as possible in each budget cycle, and will share with its member cities and towns, their elected officials, and city managers in a transparent manner. The goal is to submit next year’s fiscal year budget, with the final Joint Powers Agreement, in December 2023. Question #3: How will the JPA address disagreements on the dues structure, particularly if dues will increase with a JPA? Answer #3: It is neither assumed nor anticipated that the dues will increase because of the change in organizational structure. It is anticipated that annual dues will increase to reflect cost Item 14 Attachment B - City Managers Questions and CASCC Answers Item 14: Staff Report Pg. 27 Packet Pg. 222 of 228 ANSWERS TO CITY MANAGER’S QUESTIONS RE: CASCC JPA August 7, 2023 6 of living increases. As set forth in the current bylaws, the Board adopts a budget every year in the same timeline as its member agencies and a majority vote is required to adopt a budget. Question #4: Has the association considered CalPERS costs in a potential JPA? Answer#4: Yes, CASCC has considered this matter. CASSC obtains services from independent contractors and does not have employees. CalPERS membership is not mandatory for a JPA. The JPA has been drafted to address this issue and specifically states the JPA will not contract with CalPERS. See JPA provision 14.1.5: 14.1.5 The Agency shall not contract with or become a member of the California Public Employees Retirement System (“PERS”), nor shall any employee of the Agency become a member of PERS or be entitled to a pension or retirement from PERS because of service to the Agency; and In addition, the following change will be made to the JPA to address the issue: 14.1.6 The Agency shall not contract with or provide any pension to any employee of the Agency, nor shall any employee of the Agency be entitled to a pension or retirement Benefits, aside from Social Security as a result of service to the Agency. Question #5: What is the extent of the Dissolution Plan and Tax Liability and who will be responsible? Answer #5: The Dissolution Plan for CASCC has been discussed by the City/Town Attorney’s group and researched by a few of its members. A consensus on the approach to dissolution has been reached with the City/Town Attorney’s Group. Article 5 of the JPA it states: “Upon formation of the Agency as described in Article 4, the Cities Association of Santa Clara County, an unincorporated association shall follow the process of dissolution and cease to exist.” The CASCC will follow the procedure for dissolution set forth in California Corporations Code Section 18410. Upon approval of the JPA by eight Members, the current CASCC Board of Directors will pass a resolution following the Corporations Code procedure and transfer the assets and liabilities of CASCC. The City/Town Attorneys discussed the possibility of only transferring the assets and not the liabilities of CASCC. However, the consensus of this group was that this approach may be rejected by the courts so that path is not recommended and will not be followed. PERSONNEL MANAGEMENT Question #1: Who is responsible for evaluating the performance of the Executive Director, and taking any associated personnel action? Item 14 Attachment B - City Managers Questions and CASCC Answers Item 14: Staff Report Pg. 28 Packet Pg. 223 of 228 ANSWERS TO CITY MANAGER’S QUESTIONS RE: CASCC JPA August 7, 2023 7 Statement #1: Difficult personnel issues can occur in any organization. It is in everyone’s interest to establish a structure for handling such issues in advance of actual situations. Response to Statement #1: Agreed. Answer#1: The Executive Director provides services to CASCC as an independent contractor. Only a majority of the Board of Directors may take action regarding the contract of the Executive Director or any performance evaluation process. The JPA will be modified to clarify this issue. Just to reiterate from Question 4 above, all services provided to CASCC will be through independent contractors, not salaried employees. DECISIONMAKING Question #1: How will the JPA determine whether to pursue new initiatives, such as grants, that may not clearly exceed the $50,000 Significant Programs threshold? How will the JPA determine its ability to perform its associated responsibilities? Answer #1: The JPA at Article 15 Substantial Programs states: If the Board desires to create significant programs or activities which will utilize substantial resources of the Agency, it shall do so by a vote of the Board. Substantial resources and significant program or activity shall be defined as any program or activity requiring $50,000 or more in annual expenditures, this amount shall be increased by the annual cost of living CPI index. Any new significant program or activity shall require a work plan and a two- thirds vote of the Members in order to be initiated. When a new significant program is intentionally designed to be limited in scope, such that it only provides benefits to particular Members, the Agency may enter into specific program or project Agreement that includes relevant terms, by the particular affected Members and any such Agreement shall be approved by the Board prior to or at the same time as formation of the significant program. These Agreements shall be subject to approval by the Board of Directors by a two-thirds vote of the Members. First and foremost, the JPA’s programs and activities will be limited to its available budget. If a new initiative or grant becomes available, the Board would discuss the level of interest at a public meeting and whether it should pursue it. Item 14 Attachment B - City Managers Questions and CASCC Answers Item 14: Staff Report Pg. 29 Packet Pg. 224 of 228 ANSWERS TO CITY MANAGER’S QUESTIONS RE: CASCC JPA August 7, 2023 8 Second, the CASCC also intends to amend this JPA provision to define a Substantial Program as as any program or activity requiring $10,000 or more (subject to CPI adjustments) - rather than $50,000 or more - in annual expenditures, in order to exercise greater fiscal oversight. Statement #1: For example, the SVRIA JPA establishes a Working Committee with specified composition, that is responsible for recommending a budget, accepting grants, and awarding contracts, as well as recommending an Executive Director. Response to Statement #1: The Executive Committee performs a similar role to that of SVRIA’s Working Committee, but its powers have been limited based upon input from the City Managers and City/Town Attorneys. Should the CASCC Board of Directors wish to create a new committee, such as the Working Committee with significant powers, the concept, scope, staffing and resources implications would need to be considered by the Board of Directors. While SVRIA is a JPA model that was considered in the formation of the CASCC JPA, it should be noted that SVRIA’s annual budget exceeds $5 million (for FY 23 and beyond). By comparison, the CASCC annual budget is currently under $300K. Currently, it is sufficient for the Executive Committee to perform some, not all, functions of the SVRIA Working Committee. At some point in the future, the CASCC Board of Directors may consider formation of a Working Committee, and may choose to do so with input from the City Managers and/or the City Attorneys. Question #2: How will the JPA determine its position and activities related to legislative advocacy? How will individual Director’s responsibility to the JPA be reconciled with positions of their respective agencies? Answer #2: Role of the Legislative Action Committee (“LAC”) LAC advocates on behalf of all 15 cities on issues of mutual interest, provides legislative updates to cities, and organizes emergency responses to urgent issues. LAC acts as the convening body for all 15 cities to discuss and take positions on legislative bills, and local and state measures (“Bills/Measures”). The LAC meetings allow for collaboration, advocacy, and education. It allows the cities to delve into an issue and discuss how the issue may affect their cities. LAC is also guided by the Legislative Guiding Principles and the Housing Position Paper, which were both adopted by the Cities Association Board and aim to be representative of all 15 cities. Benefit to cities from LAC Cities benefit from the LAC in many ways. An organization consisting of 15 cities with over 1.9 million residents has a louder and more impactful and effective voice compared to each city advocating on its own behalf, especially smaller cities. Legislators have said repeatedly that they pay attention to the positions taken by the Cities Association. Legislators and local groups Item 14 Attachment B - City Managers Questions and CASCC Answers Item 14: Staff Report Pg. 30 Packet Pg. 225 of 228 ANSWERS TO CITY MANAGER’S QUESTIONS RE: CASCC JPA August 7, 2023 9 seek the Cities Association’s endorsement because they understand the importance and influence of an endorsement from the Cities Association. LAC also provides an opportunity for legislators to present an idea for a potential Bill/Measure and solicit feedback on how such a Bill/Measure may impact cities, or what provisions would cities support/oppose. This is also a great opportunity for Cities to weigh in and give feedback to help shape a bill before it moves forward. Legislators/groups have also shared that it is much easier for them to come to Cities Association and reach all 15 cities at the same time than try to reach each Council individually. For many of the presentations, the legislators will attend the LAC meeting, which gives the cities face to face time with legislators. Another benefit is LAC provides a forum for cities to learn from each other, hear different perspectives, and better understand the potential impact of a Bill/Measure. Often, this results in the cities being better informed on the pressing issues happening at the state and local levels. Decision-making process for LAC The LAC agenda normally consists of (1) an educational item whereby a legislator or group presents on a potential or new Bill/Measure, the intent being to educate and answer any questions representatives may have, or (2) a few Bills/Measures for discussion and action, to recommend a position to the Cities Association Board. It is the Board that makes the final decision on the Cities Association’s position on a particular Bill/Measure. Some cities have the same Councilmember serve on LAC and the Board, while others will have different Councilmembers serve on each body. Therefore, although the discussion and presentation at the Board level is not as in depth as the LAC meeting, sometimes the discussion and vote at the Board level are different from what happened at the LAC meeting. LAC’s recommendation to the Board is based on what majority of the cities support. The practice is for the LAC Chair to communicate the recommended position to the full Board and include the minority position(s) or any concerns expressed during the discussion at the LAC meeting. One of the ways the CASCC communicates its position on a particular Bill/Measure is to send a letter to the applicable body. In recent years, the CASCC has made an effort to include the concerns of the “minority position” in the letter, and advocate that certain bills carve out an exemption for smaller cities, recognizing that all 15 cities are unique, diverse and range from populations of a few thousand to one million people. Every city has its own approach to how it votes on a Bill/Measure at a LAC meeting. Some cities will only vote on a Bill/Measure if their full Council has taken a position on the particular item. Other cities will vote on the item if it aligns with a position taken on a similar issue by its Council. If an item is not controversial like housing, then most cities will vote on the item, even if their full Councils have not considered the item. Item 14 Attachment B - City Managers Questions and CASCC Answers Item 14: Staff Report Pg. 31 Packet Pg. 226 of 228 ANSWERS TO CITY MANAGER’S QUESTIONS RE: CASCC JPA August 7, 2023 10 How to make LAC even better The CASCC Executive Committee has continued to identify ways to improve LAC because of the value it provides to the cities. Here are some things we are already considering, and we welcome any suggestions you may have: -Need staff support to be better prepared for LAC meetings. This work can be time consuming as it requires analyzing bills, researching the support and oppose positions and legislative history, and tracking the status of the Bill/Measure. To date, this work has fallen to the LAC Chair, CASCC Executive Director, and/or the Board President’s staff. If cities, like San Jose, are willing to share their legislative staff with the CASCC, at no cost, it is worth exploring, provided the work is objective and does not reflect the position of that city. -Continue to do a better job of including the minority voices in our advocacy and any unique impacts to smaller cities. -Provide a LAC calendar at the beginning of the year that gives dates when LAC will be considering certain bills to give cities an opportunity to have their Councils take a position on the bill before it goes to LAC. -Have cities suggest bills they want LAC to consider. -Continue to have the Board members report back to their Councils and City Managers on the impactful and valuable work the CASCC is doing. Question #3: How does the organization work if/when not all cities join? If not all or enough members join, how does the association act as the appointing body for various regional commissions. Answer #3: The Agency will be formed once eight cities/towns approve the JPA (See JPA Article 8). The participating members would meet and operate as a JPA. Given Government Code provisions governing the CSC, all cities are permitted to participate in these Committee meetings and the appointment process even if they are not members of the JPA (See JPA Article 13). The JPA would continue to administer the CSC. At the request of the City/Town Attorneys provisions were added to Article 8 that after one year of formation should membership fall to less than seven members for a period of one year that the Agency is required to release the CASCC name to a new JPA should one be formed. On a related note, the Executive Committee is not activated until there are nine members, and it will then consist of three members, in order to address any potential ties in voting. If the JPA Item 14 Attachment B - City Managers Questions and CASCC Answers Item 14: Staff Report Pg. 32 Packet Pg. 227 of 228 ANSWERS TO CITY MANAGER’S QUESTIONS RE: CASCC JPA August 7, 2023 11 has eleven or more members, the Executive Committee would then consist of five members (See JPA Article 11). The CASCC intends to amend JPA Article 11 to capture this approach. For cities that are part of the JPA, they would be able to participate in sessions with legislators and other councilmembers to benchmark and share ideas. They would also have the opportunity to vote and advocate on issues together with their fellow cities. During COVID, different groups were able to reach out to the Cities Association knowing they would be able to reach all 15 cities. Also, having a group with all 15 cities participating would complement the SCC City Managers and City Attorneys groups. Question #4: Does the proposed power of the executive committee have the potential to allow the executive board to make decisions at the expense of some or all of the members? Answer #4: The proposed JPA has been drafted to address concerns regarding the authority of the Executive Committee (formerly known as the “Executive Board”). Additional changes will be made to the JPA to clarify that the Executive Committee cannot make personnel decisions and that new powers can only be vested in the Executive Committee following a vote of the Board of Directors on the issue. The Executive Committee will not have the authority to make personnel decisions or decisions related to the contract for the Executive Director. The JPA currently reads as follows: at Article 11: “The Executive Committee may have additional powers delegated to it by the Board, except for the adoption of the Agency’s annual budget. Any additional powers and duties delegated shall be specified in a Resolution adopted by the Board. The Executive Committee shall provide notice to the Board before authorizing or conducting any investigations into the business of the Agency and before taking personnel action. These actions must be authorized by a majority vote of the Executive Committee.” The reference to personnel action will be removed and the Executive Committee will be prohibited from taking any personnel actions. Question #5 What is a situation where the association would need to issue debt, purchase land, or hire or terminate multiple employees? Answer#5: The provisions authorizing the JPA to issue debt or purchase land will be removed. It is unknown whether the Agency would ever need to hire or terminate an employee, but those decisions would be made by the Board of Directors and memorialized in a budget adopted by the Board of Directors, not the Executive Committee. (See answer to PERSONNEL MANAGEMENT #1) Item 14 Attachment B - City Managers Questions and CASCC Answers Item 14: Staff Report Pg. 33 Packet Pg. 228 of 228