HomeMy WebLinkAbout2023-10-23 City Council Agenda PacketCITY COUNCIL
Regular Meeting
Monday, October 23, 2023
Council Chambers & Hybrid
5:30 PM
Amended Agenda
Amended agenda items appear below in RED
Palo Alto City Council meetings will be held as “hybrid” meetings with the option to attend by
teleconference 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 International Artist Day.
CLOSED SESSION (5:30 ‐ 7:30 PM)
1.PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Authority: Cal. Gov. Code section 54957(b);
Title: City Manager
2.CONFERENCE WITH LABOR NEGOTIATORS
Authority: Cal. Gov. Code section 54957.6;
Agency representative: Jeremy Dennis, MRG;
Unrepresented Employees: City Manager and City Attorney
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (7:30 ‐ 7:45 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral
Communications period to 30 minutes.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (7:45 ‐ 7:50 PM)
Members of the public may not speak to the item(s).
CONSENT CALENDAR (7:50 ‐ 7:55 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
3.Approval of FY 2023 Reappropriations Requests and Amendments to the FY 2024 Budget
Appropriation. CEQA Status: Not a Project
4.Approval of Contract Amendment No. 3 with Carollo Engineers, Inc., adding $388,538 to
the Total Contract Amount for Construction Management Services through June 30, 2024
for the Regional Water Quality Control Plant Primary Sedimentation Tank Rehabilitation
Project. CEQA status – Exempt under CEQA Guidelines Section 15301 (repairs to existing
facilities).
CITY MANAGER COMMENTS (7:55 ‐ 8:10 PM)
BREAK (5‐10 MINUTES)
ACTION ITEMS (Item AA1: 8:20 ‐ 9:50 PM, Item 5: 9:50 ‐ 10:50 PM)
Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished
Business and Council Matters.
AA1.Discussion and Direction on Feedback Regarding the Proposed Joint Powers Agency
(JPA) Agreement for Cities Association of Santa Clara County or Authority to Approve
the JPA Agreement As Drafted or With Revisions; CEQA: Not a Project (Continued from
October 16, 2023) New Item
5.PUBLIC HEARING: Adoption of an Ordinance Amending the Stanford University Medical
Center (SUMC) Development Agreement Adjusting the Timeline for Achieving the SUMC
Alternative Mode Share Targets and Adoption of a Resolution Updating the Mitigation
Monitoring and Reporting Program Accordingly. Zoning District: HD (Hospital District).
Environmental Review: Project is Consistent with the 2011 Certified Environmental
Impact Report (EIR) for the SUMC Facilities Renewal and Replacement Project.
CLOSED SESSION
6.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section
54956.8 Property: 1175 North San Antonio Road, Palo Alto (Informally known as the
former Los Altos Treatment Plant site) Negotiating Party: Santa Clara Valley Water
District City Negotiators: (Ed Shikada, Brad Eggleston, Karin North, Sunny Tong) Subject
of Negotiations: Lease Price and Terms of Payment Item Removed Off Agenda
ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action
during this meeting’s agenda.
7.Reporting of the emergency contract authorization by the City Manager to execute a
contract with WRA Inc. S24189354
8.2023 Council Priority Objectives Q3 Report
AMENDED AGENDA ITEMS
AA1.Discussion and Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA) Agreement
for Cities Association of Santa Clara County or Authority to Approve the JPA Agreement As Drafted or
With Revisions; CEQA: Not a Project (Continued from October 16, 2023) New Item
6.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section 54956.8 Property:
1175 North San Antonio Road, Palo Alto (Informally known as the former Los Altos Treatment Plant site)
Negotiating Party: Santa Clara Valley Water District City Negotiators: (Ed Shikada, Brad Eggleston, Karin
North, Sunny Tong) Subject of Negotiations: Lease Price and Terms of Payment Item Removed Off Agenda
OTHER INFORMATION
Standing Committee Meetings
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 23, 2023
Materials submitted after distribution of the agenda packet are available for public inspection
at www.CityofPaloAlto.org/agendas.
CITY COUNCILRegular MeetingMonday, October 23, 2023Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference 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 International Artist Day.
CLOSED SESSION (5:30 ‐ 7:30 PM)
1.PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Authority: Cal. Gov. Code section 54957(b);
Title: City Manager
2.CONFERENCE WITH LABOR NEGOTIATORS
Authority: Cal. Gov. Code section 54957.6;
Agency representative: Jeremy Dennis, MRG;
Unrepresented Employees: City Manager and City Attorney
AGENDA CHANGES, ADDITIONS AND DELETIONS
PUBLIC COMMENT (7:30 ‐ 7:45 PM)
Members of the public may speak to any item NOT on the agenda. Council reserves the right to limit the duration of Oral
Communications period to 30 minutes.
COUNCIL MEMBER QUESTIONS, COMMENTS, ANNOUNCEMENTS (7:45 ‐ 7:50 PM)
Members of the public may not speak to the item(s).
CONSENT CALENDAR (7:50 ‐ 7:55 PM)
Items will be voted in one motion unless removed from the calendar by three Council Members.
3.Approval of FY 2023 Reappropriations Requests and Amendments to the FY 2024 Budget
Appropriation. CEQA Status: Not a Project
4.Approval of Contract Amendment No. 3 with Carollo Engineers, Inc., adding $388,538 to
the Total Contract Amount for Construction Management Services through June 30, 2024
for the Regional Water Quality Control Plant Primary Sedimentation Tank Rehabilitation
Project. CEQA status – Exempt under CEQA Guidelines Section 15301 (repairs to existing
facilities).
CITY MANAGER COMMENTS (7:55 ‐ 8:10 PM)
BREAK (5‐10 MINUTES)
ACTION ITEMS (Item AA1: 8:20 ‐ 9:50 PM, Item 5: 9:50 ‐ 10:50 PM)
Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, Unfinished
Business and Council Matters.
AA1.Discussion and Direction on Feedback Regarding the Proposed Joint Powers Agency
(JPA) Agreement for Cities Association of Santa Clara County or Authority to Approve
the JPA Agreement As Drafted or With Revisions; CEQA: Not a Project (Continued from
October 16, 2023) New Item
5.PUBLIC HEARING: Adoption of an Ordinance Amending the Stanford University Medical
Center (SUMC) Development Agreement Adjusting the Timeline for Achieving the SUMC
Alternative Mode Share Targets and Adoption of a Resolution Updating the Mitigation
Monitoring and Reporting Program Accordingly. Zoning District: HD (Hospital District).
Environmental Review: Project is Consistent with the 2011 Certified Environmental
Impact Report (EIR) for the SUMC Facilities Renewal and Replacement Project.
CLOSED SESSION
6.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section
54956.8 Property: 1175 North San Antonio Road, Palo Alto (Informally known as the
former Los Altos Treatment Plant site) Negotiating Party: Santa Clara Valley Water
District City Negotiators: (Ed Shikada, Brad Eggleston, Karin North, Sunny Tong) Subject
of Negotiations: Lease Price and Terms of Payment Item Removed Off Agenda
ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action
during this meeting’s agenda.
7.Reporting of the emergency contract authorization by the City Manager to execute a
contract with WRA Inc. S24189354
8.2023 Council Priority Objectives Q3 Report
AMENDED AGENDA ITEMS
AA1.Discussion and Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA) Agreement
for Cities Association of Santa Clara County or Authority to Approve the JPA Agreement As Drafted or
With Revisions; CEQA: Not a Project (Continued from October 16, 2023) New Item
6.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section 54956.8 Property:
1175 North San Antonio Road, Palo Alto (Informally known as the former Los Altos Treatment Plant site)
Negotiating Party: Santa Clara Valley Water District City Negotiators: (Ed Shikada, Brad Eggleston, Karin
North, Sunny Tong) Subject of Negotiations: Lease Price and Terms of Payment Item Removed Off Agenda
OTHER INFORMATION
Standing Committee Meetings
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 23, 2023
Materials submitted after distribution of the agenda packet are available for public inspection
at www.CityofPaloAlto.org/agendas.
CITY COUNCILRegular MeetingMonday, October 23, 2023Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference 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 International Artist Day.CLOSED SESSION (5:30 ‐ 7:30 PM)1.PUBLIC EMPLOYEE PERFORMANCE EVALUATION Authority: Cal. Gov. Code section 54957(b); Title: City Manager2.CONFERENCE WITH LABOR NEGOTIATORSAuthority: Cal. Gov. Code section 54957.6;Agency representative: Jeremy Dennis, MRG; Unrepresented Employees: City Manager and City AttorneyAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (7:30 ‐ 7:45 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 (7:45 ‐ 7:50 PM)Members of the public may not speak to the item(s).CONSENT CALENDAR (7:50 ‐ 7:55 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.3.Approval of FY 2023 Reappropriations Requests and Amendments to the FY 2024 BudgetAppropriation. CEQA Status: Not a Project4.Approval of Contract Amendment No. 3 with Carollo Engineers, Inc., adding $388,538 tothe Total Contract Amount for Construction Management Services through June 30, 2024for the Regional Water Quality Control Plant Primary Sedimentation Tank RehabilitationProject. CEQA status – Exempt under CEQA Guidelines Section 15301 (repairs to existingfacilities).CITY MANAGER COMMENTS (7:55 ‐ 8:10 PM)BREAK (5‐10 MINUTES)ACTION ITEMS (Item AA1: 8:20 ‐ 9:50 PM, Item 5: 9:50 ‐ 10:50 PM)Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, UnfinishedBusiness and Council Matters.AA1.Discussion and Direction on Feedback Regarding the Proposed Joint Powers Agency
(JPA) Agreement for Cities Association of Santa Clara County or Authority to Approve
the JPA Agreement As Drafted or With Revisions; CEQA: Not a Project (Continued from
October 16, 2023) New Item
5.PUBLIC HEARING: Adoption of an Ordinance Amending the Stanford University Medical
Center (SUMC) Development Agreement Adjusting the Timeline for Achieving the SUMC
Alternative Mode Share Targets and Adoption of a Resolution Updating the Mitigation
Monitoring and Reporting Program Accordingly. Zoning District: HD (Hospital District).
Environmental Review: Project is Consistent with the 2011 Certified Environmental
Impact Report (EIR) for the SUMC Facilities Renewal and Replacement Project.
CLOSED SESSION
6.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section
54956.8 Property: 1175 North San Antonio Road, Palo Alto (Informally known as the
former Los Altos Treatment Plant site) Negotiating Party: Santa Clara Valley Water
District City Negotiators: (Ed Shikada, Brad Eggleston, Karin North, Sunny Tong) Subject
of Negotiations: Lease Price and Terms of Payment Item Removed Off Agenda
ADJOURNMENT
INFORMATION REPORTS
Information reports are provided for informational purposes only to the Council and the public but are not listed for action
during this meeting’s agenda.
7.Reporting of the emergency contract authorization by the City Manager to execute a
contract with WRA Inc. S24189354
8.2023 Council Priority Objectives Q3 Report
AMENDED AGENDA ITEMS
AA1.Discussion and Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA) Agreement
for Cities Association of Santa Clara County or Authority to Approve the JPA Agreement As Drafted or
With Revisions; CEQA: Not a Project (Continued from October 16, 2023) New Item
6.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section 54956.8 Property:
1175 North San Antonio Road, Palo Alto (Informally known as the former Los Altos Treatment Plant site)
Negotiating Party: Santa Clara Valley Water District City Negotiators: (Ed Shikada, Brad Eggleston, Karin
North, Sunny Tong) Subject of Negotiations: Lease Price and Terms of Payment Item Removed Off Agenda
OTHER INFORMATION
Standing Committee Meetings
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 23, 2023
Materials submitted after distribution of the agenda packet are available for public inspection
at www.CityofPaloAlto.org/agendas.
CITY COUNCILRegular MeetingMonday, October 23, 2023Council Chambers & Hybrid5:30 PMAmended AgendaAmended agenda items appear below in REDPalo Alto City Council meetings will be held as “hybrid” meetings with the option to attend byteleconference 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 International Artist Day.CLOSED SESSION (5:30 ‐ 7:30 PM)1.PUBLIC EMPLOYEE PERFORMANCE EVALUATION Authority: Cal. Gov. Code section 54957(b); Title: City Manager2.CONFERENCE WITH LABOR NEGOTIATORSAuthority: Cal. Gov. Code section 54957.6;Agency representative: Jeremy Dennis, MRG; Unrepresented Employees: City Manager and City AttorneyAGENDA CHANGES, ADDITIONS AND DELETIONSPUBLIC COMMENT (7:30 ‐ 7:45 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 (7:45 ‐ 7:50 PM)Members of the public may not speak to the item(s).CONSENT CALENDAR (7:50 ‐ 7:55 PM)Items will be voted in one motion unless removed from the calendar by three Council Members.3.Approval of FY 2023 Reappropriations Requests and Amendments to the FY 2024 BudgetAppropriation. CEQA Status: Not a Project4.Approval of Contract Amendment No. 3 with Carollo Engineers, Inc., adding $388,538 tothe Total Contract Amount for Construction Management Services through June 30, 2024for the Regional Water Quality Control Plant Primary Sedimentation Tank RehabilitationProject. CEQA status – Exempt under CEQA Guidelines Section 15301 (repairs to existingfacilities).CITY MANAGER COMMENTS (7:55 ‐ 8:10 PM)BREAK (5‐10 MINUTES)ACTION ITEMS (Item AA1: 8:20 ‐ 9:50 PM, Item 5: 9:50 ‐ 10:50 PM)Include: Report of Committees/Commissions, Ordinances and Resolutions, Public Hearings, Report of Officials, UnfinishedBusiness and Council Matters.AA1.Discussion and Direction on Feedback Regarding the Proposed Joint Powers Agency(JPA) Agreement for Cities Association of Santa Clara County or Authority to Approvethe JPA Agreement As Drafted or With Revisions; CEQA: Not a Project (Continued fromOctober 16, 2023) New Item5.PUBLIC HEARING: Adoption of an Ordinance Amending the Stanford University MedicalCenter (SUMC) Development Agreement Adjusting the Timeline for Achieving the SUMCAlternative Mode Share Targets and Adoption of a Resolution Updating the MitigationMonitoring and Reporting Program Accordingly. Zoning District: HD (Hospital District).Environmental Review: Project is Consistent with the 2011 Certified EnvironmentalImpact Report (EIR) for the SUMC Facilities Renewal and Replacement Project.CLOSED SESSION6.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section54956.8 Property: 1175 North San Antonio Road, Palo Alto (Informally known as theformer Los Altos Treatment Plant site) Negotiating Party: Santa Clara Valley WaterDistrict City Negotiators: (Ed Shikada, Brad Eggleston, Karin North, Sunny Tong) Subjectof Negotiations: Lease Price and Terms of Payment Item Removed Off AgendaADJOURNMENTINFORMATION REPORTSInformation reports are provided for informational purposes only to the Council and the public but are not listed for actionduring this meeting’s agenda.7.Reporting of the emergency contract authorization by the City Manager to execute acontract with WRA Inc. S241893548.2023 Council Priority Objectives Q3 ReportAMENDED AGENDA ITEMSAA1.Discussion and Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA) Agreementfor Cities Association of Santa Clara County or Authority to Approve the JPA Agreement As Drafted orWith Revisions; CEQA: Not a Project (Continued from October 16, 2023) New Item6.CONFERENCE WITH REAL PROPERTY NEGOTIATORS Authority: Government Code Section 54956.8 Property:1175 North San Antonio Road, Palo Alto (Informally known as the former Los Altos Treatment Plant site)Negotiating Party: Santa Clara Valley Water District City Negotiators: (Ed Shikada, Brad Eggleston, KarinNorth, Sunny Tong) Subject of Negotiations: Lease Price and Terms of Payment Item Removed Off Agenda
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4 Regular Meeting October 23, 2023
Materials submitted after distribution of the agenda packet are available for public inspection
at www.CityofPaloAlto.org/agendas.
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: October 23, 2023
Report #:2307-1769
TITLE
Approval of FY 2023 Reappropriations Requests and Amendments to the FY 2024 Budget
Appropriation. CEQA Status: Not a Project
RECOMMENDATION
Staff recommends that the City Council amend the Fiscal Year 2024 Budget Appropriation for
various funds as identified in Attachment A, and various capital projects as identified in
Attachment B.
EXECUTIVE SUMMARY
As a part of the fiscal year-end process, staff reviews the City’s unencumbered and unspent
appropriations of the fiscal year just ended (FY 2023), along with the City’s spending plans.
Encumbered amounts are those subject to the legal claims of other parties due to contractual
obligations (for example, commitments made through purchase orders), which are carried
forward from one fiscal year to the next without the need for Council approval. Each year there
are a small number of important projects which staff was unable to complete or encumber
funds for in the year that just ended. The reappropriation process allows staff to bring forward
funding recommendations to City Council to continue these projects into the next fiscal year (FY
2024) without impacting funding programmed for services in FY 2024. All funding adjustments
align with prior Council appropriations at a department level and adjust for timing between
fiscal years.
BACKGROUND
On September 22, 2014, the City Council approved a recommendation to amend Chapter 2.28,
Section 2.28.090 of the Municipal Code, reducing the previous two-step reappropriations process
(preliminary and final reappropriation authorization) to one step as long as the Administrative
Services Department (ASD) Director/Chief Financial Officer (CFO) certifies that sufficient
unencumbered and unexpended funds are available in the Fiscal Year that just ended (FY 2023)
to be carried forward to the subsequent Fiscal Year (FY 2024).
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Additionally, the City Council amended the Municipal Code to eliminate the provision allowing
for the automatic reappropriation of capital project funds. However, capital projects may still be
delayed or deferred for various reasons. Therefore, there remains a need to reappropriate funds
for capital projects in some instances. This reappropriation is completed through a review of the
status of projects as part of the annual budget process and is built into the annual adopted
budget. As FY 2023 has closed and staff has processed necessary accounting transactions,
unexpended and unencumbered funds for each capital project have been reviewed a final time.
Based on that review, staff recommends capital dollars remaining for some projects in various
funds through FY 2023 be reappropriated to FY 2024. Also, as part of this review, staff realized
that for some projects too much funding was recommended for reappropriation as additional
expenditures occurred in FY 2023. Therefore, this staff report also recommends reversing a
portion of previously authorized reappropriations.
ANALYSIS
Attachment A identifies those operating budget reappropriation requests that staff recommends
for approval, while Attachment B lists recommended capital project reappropriation requests.
With the submission of this report for City Council consideration, the ASD Director/CFO certifies
that sufficient unencumbered and unexpended funds are available from FY 2023 to fund the
requested reappropriations to FY 2024. This report is being brought forward prior to the FY 2023
Annual Comprehensive Financial Report (ACFR), scheduled to be considered by the Finance
Committee in November, to support the continuity of business for these ongoing projects and
initiatives.
Operating Budget Reappropriations
The projects recommended for budget reappropriations are outlined in more detail in
Attachment A and can generally be grouped into the following categories:
•Funding for Citywide Council Priorities: Items in this category are related to citywide
priority needs previously identified by the Council, as part of the FY 2023 priority setting
in January 2023, that could not be completed in FY 2023 and funding is recommended to
be reappropriated to FY 2024 to complete the work. Examples of projects in this category
include: Utility Litigation Reserve ($17.5 million), Downtown Housing Plan ($1.0 million),
Advancing Racial Equity ($0.3 million), Labor Negotiations ($0.2 million), Think Fund Teen
Services ($0.2 million), and Seismic Upgrade ($0.1 million).
•Timing and Workload Delays: Projects in this category were delayed due to competing
workload demands, appropriation of funds late in the fiscal year, or other unanticipated
delays, including staffing constraints, procurement timing, and supply chain impacts.
Examples of projects in this category include: Information Technology Professional
Services Contracts and Software Application Maintenance ($0.7 million), Heat Pump
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Water Heater Marketing ($0.3 million), Management Training Program ($0.3 million), Fire
Academy Costs and Equity Hiring Initiatives for New Hires ($0.2 million), Backflow
Prevention Device Testing ($0.1 million), JMZ Ticketing System ($0.1 million), and Library
Automated Materials Handling Maintenance ($0.1 million).
•Multi-year Funding Agreements: Projects in this category include approved donations,
grants, loans, and other funding agreements that are anticipated to continue in the
coming year. Examples in this category include: Alta Housing Loan for Affordable Housing
at Wilton Court ($1.8 million), Mental Health Services Grant ($1.0 million), Palo Alto Link
Services ($0.5 million), Information Technology Fees for Planning and Development
Services Technology Replacement ($0.4 million), and Direct Cost Recovery Projects in the
Planning and Development Services Department ($0.1 million).
Operating Reappropriations Previously Approved
FY 2024 Adopted Operating Budget
As part of the FY 2024 Budget review process, early reappropriation of anticipated savings in the
General Fund in FY 2023 was recommended and approved by the Council to fund actions in FY
2024. The total approved amount of $15.0 million consisted of the $14.0 million Uncertainty
Reserve and $1.0 million of Homekey operations savings.
The Uncertainty Reserve was established as part of the FY 2023 Mid-Year Review to proactively
set aside funding to address estimated deficits in FY 2024 and FY 2025. The full Uncertainty
Reserve was reappropriated to FY 2024 as part of the budget process and $3.9 million was used
to balance FY 2024, leaving $10.1 million for future needs.
As part of the FY 2023 Adopted Budget, the Council approved $1.0 million of funding annually for
seven years to support operating costs for housing and homeless services at the Homekey
Facility. This facility was not completed in FY 2023, and the capital costs to complete the Homekey
Facilities project (PE-24005) increased. The operating funding savings were reappropriated to FY
2024 as part of the FY 2024 Adopted Budget to support the completion of PE-24005.
FY 2024 Staff Reports Early Reappropriations
As part of the August 7, 2023 Council Meeting, two staff reports were brought forward by the
Planning and Development Services Department, and Council approved early reappropriation of
funding to continue projects from FY 2023 into FY 2024. The first report (CMR 2305-14061)
reappropriated $0.2 million in the General Fund to complete financial feasibility studies for the
Housing Element based on adjusted development standards. The second report (CMR
1 8/7/2023 City Council, Approval of a FY 2024 Budget Amendment in the General Fund;
https://cityofpaloalto.primegov.com/Portal/viewer?id=2137&type=0
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2306-17242) reappropriated $3.0 million in the Residential Housing In-Lieu Fund for a loan to
Santa Clara County for the development of an affordable workforce housing project located at
231 Grant Avenue.
Capital Budget Reappropriations
As discussed in the Background section of this report, starting with the Fiscal Year 2016 capital
budget, all capital project reappropriations require City Council approval. The FY 2024 Adopted
Budget included $163.9 million in reappropriated expenditure funds, partially offset by $66.3
million in reappropriated revenue, across all City funds based on estimates of anticipated
spending and revenue collections in FY 2023. Since the adoption of the capital budget, some
adjustments and refinements to project reappropriations are required since FY 2023 year-end
actuals and projects costs have been updated to reflect actual experience. These primarily reflect
either increases or decreases to assumed reappropriations in the FY 2024 Adopted Budget:
•Additional reappropriations are recommended when project expenditures originally
anticipated to occur before the end of FY 2023 will now instead occur in FY 2024. Similarly,
revenue anticipated to be collected in FY 2023 will be reappropriated to FY 2024 to align
with actual collections.
•Downward adjustments to reappropriations are recommended when expenses are no
longer anticipated to occur in FY 2024 and funding was previously reappropriated in the
budget document to FY 2024. If expenses were realized in FY 2023, an adjustment to
reduce the budgeted reappropriation is needed as the activity no longer needs funding in
FY 2024. The downward reappropriation of revenue is treated similarly; an adjustment to
reduce the reappropriated revenue is needed to align collections in the appropriate fiscal
year.
Table 1 summarizes the recommended net adjustments as detailed in Attachment B. These Fiscal
Year 2024 adjustment amounts represent the final step in the City Council-approved change to
the reappropriation process. There are sufficient expenditure savings in Fiscal Year 2023 to
support all recommended adjustments.
Table 1: Year-End Capital Project Reappropriation Summary – By Fund
Fund
# of
Projects
Recommended Revenue
Reappropriation Adj.
Recommended Expense
Reappropriation Adj.
Capital Improvement Fund 35 $3,457,976 $15,783,112
Cubberley Infrastructure Fund 3 -$539,809
Airport Fund 5 $831,152 $2,044,078
Electric Fund 10 -$713,174
2 8/7/2023, City Council, Approval of FY 2024 Budget Amendment in the Residential Housing In-Lieu Fund;
https://cityofpaloalto.primegov.com/Portal/viewer?id=2644&type=0
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Fund
# of
Projects
Recommended Revenue
Reappropriation Adj.
Recommended Expense
Reappropriation Adj.
Gas Fund 2 -$107,643
Stormwater Management
Fund 6 $161,837 $594,599
Wastewater Collection Fund 3 -$8,642,833
Wastewater Treatment Fund 9 $199,010,377 $8,543,215
Water Fund 6 -$631,763
Technology Fund 3 -$51,835
Vehicle Replacement and
Maintenance Fund 2 -($1,429,022)
Total All Funds 84 $203,461,342 $36,223,039
It should be noted that the revised process and active review of all project reappropriations
results in a reduced level of reappropriated funding from one year to the next, compared to the
process of automatically reappropriating unspent capital funding, and better reflects the needs
of the various capital projects and of the overall program. In total, $200.1 million will be
reappropriated for capital projects, offset by $269.8 million in revenue for the projects. The
Capital Improvement Fund encompasses 44% of the total recommended expense
reappropriation adjustment amount of $36.2 million because it accounts for 35 of the 84 projects
with final reappropriations. However, 98% of the total recommended revenue reappropriation
adjustment amount of $203.5 million comes from the Wastewater Treatment Fund because
there is substantial lag time in reimbursement of funds from the State Revolving Fund (SRF) loans
that support Wastewater Treatment projects.
FISCAL/RESOURCE IMPACT
All projects, programs, and corresponding funding contained within this report were previously
approved by the City Council for FY 2023. This report simply realigns funding between fiscal years
to align with the status of projects and programs. The ASD Director/CFO certified that sufficient
funds exist in FY 2023 for the recommended Fiscal Year 2024 Operating Budget adjustments
(Attachment A), and Capital Budget adjustments (Attachment B).
For Operating reappropriations, staff recommends expense reappropriations of $22.0 million in
the General Fund, $1.8 million in Special Revenue Funds, $0.3 million in Enterprise Funds, and
$1.1 million in Internal Service Funds. Staff also recommends revenue reappropriations of $6.0
million in the General Fund.
For capital projects, in addition to the amounts reappropriated as part of the FY 2024 Adopted
Capital Budget, staff recommends $16.3 million in expenses be reappropriated to FY 2024 in the
Capital Improvement Funds, in addition to $3.5 million in revenue reappropriations. Also
recommended is $21.3 million in additional expenses reappropriated in various Enterprise Funds,
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and a reduction of $1.4 million in expenditures in the Internal Service Funds. The cumulative
reappropriation, including amounts approved in the FY 2024 Adopted Capital Budget, will be
$81.8 million in expenses, partially offset by $32.2 million in revenue in the Capital Improvement
Fund projects; $113.4 million in expenses in the Enterprise Fund projects; and $4.9 million in
expenses in the Internal Service Fund projects. The results of the reappropriations and technical
clean-up actions will have a net zero impact to the total projects’ budgets over the life of the
projects.
STAKEHOLDER ENGAGEMENT
Review and reconciliation of the funding available for both the Operating reappropriations and
the reappropriations for individual Capital projects was coordinated between ASD divisions of
the Office of Management and Budget and Accounting, as well as with the departments
requesting the reappropriated funds.
ENVIRONMENTAL REVIEW
The action recommended is not a project for the purposes of the California Environmental
Quality Act. (CEQA Guidelines 15378(b)(2),(4) and (5).)
ATTACHMENTS
Attachment A: FY 2023 to FY 2024 Operating Budget Reappropriation Requests
Attachment B: FY 2023 to FY 2024 Capital Budget Reappropriation Requests
APPROVED BY:
Kiely Nose, Assistant City Manager
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FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
Fund Name
General Fund
Department Title Description
Administrative Services Development Impact Fee Nexus
Study
This action reappropriates funds to hire a consultant to prepare a nexus
study for the Public Safety Facilities and General Government Facilities
Development Impact Fees in FY 2024. The State Assembly Bill AB602
requires that nexus studies related to development impact fees must be
updated by Jan. 1, 2030. However, the City Attorney’s Office recommends,
as a best practice, that these studies be updated every 8 years, which
could be earlier than 2030 for some fees. ASD presented and Council
approved the last nexus studies for the Public Safety Facilities and General
Government Facilities impact fees in 2015 (CMR 5396).
$‐$35,000
General Fund Community Services Art Center Ceramics Studio
Bequest
This action reappropriates a bequest from the Sherrie Innis Estate. On June
19, 2017, the City Council approved a bequest of $54,350 from the Sherrie
Innis Estate to maintain and upgrade the ceramic studio at the Palo Alto
Art Center (CMR 8187) including kilns, wheels, and several other large
pieces of equipment. At the close of FY 2023, the unspent balance is
projected to be $21,000 and recommended to be reappropriated to FY
2024.
$‐$21,000
General Fund
General Fund
Community Services
Community Services
Backflow Prevention Device
Testing
On June 19, 2023, Council approved CMR 2303‐1226 which allocated
$56,000 in both Community Services and Public Works for backflow
prevention device testing. The contract began on July 1, 2023 and the
inspections started in July; however, the June 19th approval date did not
allow the funds to be encumbered and carried forward into FY 2024, so a
reappropriation is recommended.
$
$
‐
‐
$
$
56,000
Bryant St. Revenue ‐ Teen Services This action reappropriates funds for teen services from revenue generated
by the rental of the Bryant Street Garage. In 2001, the City Council voted
to lease out a garage property located at 455 Bryant Street. Since this site
was formerly the location of the Bryant Street Teen Center, a stipulation in
the lease required that 75 percent of the rental revenues would be used to
fund programs specifically for Palo Alto youth and teens. In prior years,
Staff has returned to the Policy and Services Committee and City Council
for guidance on community engagement and potential uses of this funding
(CMR 4776, CMR 8887). Teen services programs include, but are not
216,000
limited to: Think Fund grants, ClickPA website, Teen Arts Council, MakeX,
Art Center, Think Fund Gala and the Buoyancy Teen Festival. This action
will reappropriate $216,000, the remaining value, to ensure resources are
available to continue providing quality teen services to the community and
develop a long‐term approach to maintain delivery of these services.
Page 1 of 8
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Attachment A - FY 2023 to FY 2024
Operating Budget Reappropriation
Requests
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FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Appropriation
Recommended
Fund Name
General Fund
Department Title Description Expense
Appropriation
$ 100,000Community Services JMZ Ticketing System This action reappropriates funding for a new ticketing system to support
the City’s Economic Recovery by increasing the number of people that
purchase tickets for the Junior Museum and Zoo. Attendees have cited
that the current system is a barrier to attendance. $50,000 was
appropriated in FY 2023 for this purchase; however, preliminary bids have
indicated that this system will cost $100,000, so additional savings of
$50,000 in the Community Services Department in FY 2023 is
$‐
recommended to be reappropriated to support this purchase. The new
system will streamline ticket sales for general admissions and membership
and provide new tools to spread attendance out throughout the day,
capabilities that the current system lacks.
General Fund
General Fund
Community Services
Community Services
Palo Alto Community Child Care
(PACCC) Quarterly Payment
PACCC did not receive a second quarter payment in FY 2022. Funding for
this payment was carried forward into FY 2023 for this payment; however,
due to staff turnover, the unpaid invoice went unnoticed until PACCC staff
inquired in August 2023. Savings is available in the Community Services
Department in FY 2023 to reappropriate to FY 2024 in order to true up
funding owed to PACCC.
$
$
‐
‐
$132,000
Twilight Concert Series This action requests to reappropriate $30,000 to allow the City to host 6
concerts in Summer 2023 and 2024. Council previously expanded the
number of summer concerts from four to six. Given the timing of
expenditures between two fiscal years to hold the summer concert series,
staff recommends reappropriating $30,000 to FY 2024 for the remaining
concerts in Summer 2023. This adjustment will help ensure that the City
can host six concerts in both Summers 2023 and 2024.
$
$
30,000
50,000General Fund Fire Equity Hiring Initiative This action reappropriates $50,000 for equity hiring initiatives in the Fire
Department. Funding for contract services for research and
implementation of initiatives was approved during the FY 2022 budget
process; however, logistical requirements for the SAFER grant and lower
Fire management staffing did not allow the Department to focus on equity
hiring initiatives in FY 2022 or FY 2023. The Deputy Chief position restored
in FY 2023 will be responsible for departmental recruitment, hiring and
retention, and managing the equity hiring initiative work with the support
of this funding.
$‐
General Fund Fire Fire Academy Costs for New Hires As part of the FY 2023 Mid‐Year Review, $330,000 was appropriated to the
Fire Department for new hire costs related to the Fire Academy and
Personal Protective Equipment (PPE). Due to contracting and purchasing
time frames, $115,000 of the costs are recommended to be
$‐$115,000
reappropriated to FY 2024, because the Fire Academy and training spans
FY 2023 and FY 2024.
Page 2 of 8
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Attachment A - FY 2023 to FY 2024
Operating Budget Reappropriation
Requests
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FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
Fund Name
General Fund
Department Title Description
Fire FireMed Marketing This action reappropriates $50,000 for marketing related to the City's
ambulance subscription program, known as the FireMed Program. The
Program was approved in October 2021 (CMR 13618) and launched in April
2022. During FY 2022, the Fire Department began coordination with the
Utilities Department to establish a workflow for the Program’s online
billing. In FY 2023, additional work with the City’s Communications Team
on website design, frequently asked questions, program logo, and mailer
were completed. Staff also began educating sworn fire personnel on the
specifics of the program to be able to respond to community questions
while in the field. This funding will continue to support the full
implementation of the Program, including the marketing component
during FY 2024.
$‐$50,000
General Fund Human Resources Labor Negotiations The City's Labor Negotiations team has successfully reached agreements
with all of the City's bargaining groups. Although these successful
negotiations have been settled, the department recognizes the ongoing
need for legal guidance from the firm that helped reach agreements,
throughout the duration of these contracts. As a strategic measure to
proactively address anticipated expenditures, the Department is
requesting reappropriation of funds. This proactive financial adjustment
will ensure the availability of resources to cover anticipated legal expenses
associated with the continuing counsel required for the enforcement of
the negotiated contracts.
$‐$230,000
General Fund Library Automated Materials Handling
Maintenance
This action reappropriates funding for maintenance service of the
Automated Materials Handling (AMH) machines located at the Mitchell
Park and Rinconada library branches. Funding for these services was
unable to be encumbered at the end of FY 2023, so it is recommended to
be reappropriated to FY 2024. The machines were installed in FY 2015 and
are reaching end of life, so they do need regular maintenance. This will
fund the last maintenance contract for this service for these machines as
the Library Department will start an RFP process to replace the AMH
machines at these branch locations.
$‐$82,000
General Fund Non‐Departmental Advancing Racial Equity This action reappropriates the remaining funds of the original $0.5 million
appropriated for the advancement of racial equity and the associated
workplan. The City is continuing efforts to educate and train staff, Council,
and Boards and Commission members on Diversity, Equity, and Inclusion
(DEI) topics. The City Manager's Office is also in the process of hiring an
Equity and Inclusion Program Manager to lead the City's DEI initiatives for
its community, stakeholders, and staff.
$‐$315,000
Page 3 of 8
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Attachment A - FY 2023 to FY 2024
Operating Budget Reappropriation
Requests
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FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Appropriation
Recommended
Expense
Appropriation
Fund Name
General Fund
Department
Non‐Departmental
Title Description
Mental Health Services Grant On April 3, 2023 (CMR 2303‐1179) the City accepted a $2.0 million grant
awarded by the Department of Health and Human Services Substance
Abuse and Mental Health Services Administration (SAMHSA) for assistance
related to North County TRUST (Trusted Response Urgent Support Team).
TRUST is focused on responding to individuals in crisis, providing follow‐up
and referrals, as needed, and de‐escalating high stress situations. This
program is in addition to the City’s Psychiatric Emergency Response Team
(PERT) and the County’s Mobile Crisis Response Teams (MCRT) programs.
Half of the grant funds were encumbered in FY 2023, this action
reappropriates the remaining funds as well as the full revenue
reimbursement to FY 2024.
$2,000,000 $1,000,000
General Fund Non‐Departmental
Non‐Departmental
Human Services Resource
Allocation Program (HSRAP)
Reserve
This action reappropriates the remaining balance in the Human Services
Resource Allocation Program (HSRAP) Reserve. As part of the FY 2015
Adopted Budget, the City Council established a one‐time reserve of
$50,000 for HSRAP funding requests. In FY 2019, $10,000 was allocated to
Heart and Home Collaborative, a non‐profit organization that provides
shelter and services to unhoused women in Palo Alto. The remaining
balance of $40,000 is recommended to be reappropriated to FY 2024 for
future HSRAP use.
$‐
‐
$40,000
General Fund Utility Transfer Litigation Reserve This action reappropriates $17.5 million for the financial impacts of a
lawsuit, Green v. City of Palo Alto (Santa Clara Superior Court, Case No.
1‐16‐CV‐300760). This case was a class action lawsuit filed on October 6,
2016, that claimed the City’s gas rates were taxes that exceeded the cost
of providing service, absent voter approval, because the rates funded
annual transfers from the utilities to the City’s general fund. The lawsuit
sought a refund of three years of alleged overpayments by gas ratepayers.
The financial settlement was not completed in FY 2023, so the reserve is
recommended to be reappropriated to FY 2024.
$$17,500,000
General Fund Non‐Departmental Management Development Funds This action reappropriates funding for management training and
professional development. The Management Training Program provides
$1,000 per eligible employee under the terms outlined in the labor
agreements and compensation plans with the Management and
$‐$250,000
Professional group and the Palo Alto Police Management Association. For
retention strategies and workforce development, this action is
recommended for training opportunities that may include the following
program topics: ethics, civics and citizen engagement, leadership and
management, budget, finance, procurement, interpersonal
communication, presentation skills, business writing, time management,
project management, change management, and safety and security.
Page 4 of 8
Item 3
Attachment A - FY 2023 to FY 2024
Operating Budget Reappropriation
Requests
Item 3: Staff Report Pg. 10 Packet Pg. 14 of 152
FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Appropriation
Recommended
Fund Name
General Fund
Department Title Description Expense
Appropriation
3,077,000 $ 475,000Office of Transportation Palo Alto Link Services On December 12, 2022 (CMR 14959) approved a contract for the Palo Alto
On‐Demand Transit Service (PA Link) and appropriated grant funding from
the Santa Clara County Valley Transit Authority (VTA) to fund the program.
Additional funding and revenue from Stanford was appropriated on April
10, 2023 (CMR2303‐1128) to expand the service to the Stanford Research
Park. Most of the funding for PA Link was encumbered in FY 2023;
however, $475,000 is recommended to be reappropriated to be able to
fully fund the service in FY 2024. The grant revenue and revenue from
Stanford are also recommended for reappropriation to FY 2024 to ensure
reimbursement.
$
General Fund Planning and Development
Services
ADU Handbook and CEQA Training The Planning & Transportation Committee recommended Accessory
Dwelling Unit (ADU) and Junior ADU (JADU) zoning code changes to the
City Council in December 2022. These updates reflect changes in state law
and direction from the California Department of Housing and Community
Development that went into effect in 2023. The City's Summary Guide to
ADUs and JADUs, for builders and homeowners, needs updating to reflect
these and other changes. In addition, Planning and Development Services
Department staff will host a training to inform residents and developers
about the changes. Funds were unable to be encumbered for these
services in FY 2023, so they are recommended to be reappropriated to FY
2024.
$‐$55,000
General Fund
General Fund
Planning and Development
Services
Direct Cost Recovery Project
Budget
This is a cost neutral action to reappropriate the remaining revenue and
expense funding related to the deposit‐based cost recovery project at
3225 El Camino Real. This is a fully cost recoverable project that is tracked
separately using deposit accounts. The funds do not comingle with other
contract service budgets and funds are only accessible for this purpose. All
costs will be reimbursed by the applicant.
$
$
43,000
62,000
$
$
43,000
62,000Planning and Development
Services
Direct Cost Recovery Project
Budget
This is a cost neutral action to reappropriate remaining revenue and
expense funding related to deposit‐based cost recovery projects at
multiple sites. These are fully cost recoverable projects that are tracked
separately using deposit accounts. The funds do not comingle with other
contract service budgets and funds are only accessible for this purpose. All
costs will be reimbursed by the applicant.
Page 5 of 8
Item 3
Attachment A - FY 2023 to FY 2024
Operating Budget Reappropriation
Requests
Item 3: Staff Report Pg. 11 Packet Pg. 15 of 152
FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Appropriation
Recommended
Fund Name
General Fund
Department Title Description Expense
Appropriation
800,000 $ 950,000Planning and Development
Services
Downtown Housing Plan This action reappropriates budget for the award of $800,000 from the
Metropolitan Transportation Commission and reappropriates $950,000 for
project management and analytical consultant support for the City to
prepare a Downtown Housing Plan. The Housing Plan will focus on housing
production in the Downtown, including affordable housing, and will
implement policies from the City’s Comprehensive Plan. Community
engagement will be key to the success of the planning effort, as will
technical, design, and planning work by qualified consultants funded by
the grant. An RFP was released and responses were received late in FY
2023, with insufficient time to complete contractor selection and obtain
Council's contract approval prior to the end of fiscal year. Negotiations are
underway with respondents, so this reappropriation is recommended to
bring the contract(s) to Council in FY 2024.
$
General Fund Planning and Development
Services
Seismic Upgrade On November 13, 2017 (CMR 8586) presented work done by Development
Services and Rutherford & Chekene to look at seismically sensitive
structures in Palo Alto and suggest ordinance changes. Funding of
$150,000 was appropriated as part of the FY 2023 Adopted Budget for
additional work to further this project, including further identification of
hazardous buildings which will have structural risks during the next
earthquake, working with stakeholders, drafting a new ordinance, and
business and economic implications of implementing a new program
(municipal code updates). The result of this work would be a City program
to encourage citywide seismic upgrades and a plan for implementation. A
reappropriation is recommended to FY 2024 to continue work on the RFP
and scope of this project.
$‐$150,000
General Fund Public Works Backflow Prevention Device
Testing
On June 19, 2023, Council approved CMR 2303‐1226 which allocated
$56,000 in both Community Services and Public Works for backflow
prevention device testing. The contract began on July 1, 2023 and the
inspections started in July; however, the June 19th approval date did not
allow the funds to be encumbered and carried forward into FY 2024, so a
reappropriation is recommended.
$‐$56,000
Total General Fund Reappropriation $5,982,000 $22,013,000
Page 6 of 8
Item 3
Attachment A - FY 2023 to FY 2024
Operating Budget Reappropriation
Requests
Item 3: Staff Report Pg. 12 Packet Pg. 16 of 152
FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Recommended
Fund Name Department Title Description Expense
Appropriation Appropriation
Housing In‐Lieu Fund:
Commercial/
Planning and Development
Services
Alta Housing Affordable Housing This action reappropriates $1.8 million for an agreement with Alta Housing
Loan Agreement: 3705 El Camino to develop and construct a 100 percent affordable housing project at 3705
$‐$1,767,000
Residential Housing
Impact Fund
Real (Wilton Court)El Camino Real (Wilton Court). In total, $20.5 million in City contributions
have been appropriated for this project. The City Council approved the
initial contribution of $10.0 million at the June 3, 2019 meeting (CMR
10143); $1.0 million from the Residential Housing Fund, and $9.0 million
from the Commercial Housing Fund. The City Council approved an
additional contribution of $10.5 million at the January 13, 2020 meeting
(CMR 10928); $7.2 million from the Residential Housing Fund, $2.7 million
from the Commercial Housing Fund, and $0.6 million from the Residential
Housing Impact Fund. At the close of FY 2023, approximately $1.8 million
of funding remained ($1.2 million in the Commercial Housing fund and
$0.6 million in the Residential Housing Fund), which is recommended to be
reappropriated to continue the project in FY 2024.
Total Special Revenue Fund Reappropriation $‐$1,767,000
Electric Fund Utilities Heat Pump Water Heater Program This action reappropriates funding for marketing ($65,000) and customer
rebates ($188,000) related to the Heat Pump Water Heater program. Due
to staffing changes and general project logistics, the heat pump water
heater marketing program took longer than expected to launch due to
extended time needed to get a consultant onboard. As the program
continues to be implemented and more heat pump water heaters are
installed, Utilities will continue to receive applications for rebates
throughout FY 2024. Reappropriation is needed to continue to fund the
marketing and rebate portions of this program.
$‐$253,000
Total Enterprise Fund Reappropriation $‐$253,000
Page 7 of 8
Item 3
Attachment A - FY 2023 to FY 2024
Operating Budget Reappropriation
Requests
Item 3: Staff Report Pg. 13 Packet Pg. 17 of 152
FY 2023 TO FY 2024 OPERATING BUDGET REAPPROPRIATIONS ATTACHMENT A
Recommended
Revenue
Appropriation
Recommended
Fund Name Department Title
Contract Services
Description Expense
Appropriation
320,000Technology Fund Information Technology Due to competing priorities and fiscal year end cut‐off dates, the
Information Technology (IT) Department was not able to bring forward
contracts for Council approval before the end of FY 2023. Reappropriation
is recommended to support contracts in FY 2024 to address
$‐$
recommendations/findings from the Baker Tilly Risk audit. This includes
contracts for incident retainers, endpoint protection, and cybersecurity
assessments ($146,000). Funding will also be used to start working on the
City's SharePoint sites ($174,000). Without this reappropriation IT will not
be able to work on other highly specialized projects of this magnitude.
Technology Fund
Technology Fund
Information Technology
Information Technology
Software Application Maintenance This action reappropriates funding for maintenance for several software
applications used by the City including Oracle ($135,000), Advanced
Metering Infrastructure (AMI) and SAP ($100,000), and web services
($171,000). Funding for these maintenance contracts was unable to be
encumbered before the end of FY 2023 so reappropriation is
recommended to FY 2024 to ensure there is enough funding for these
services.
$
$
‐
‐
$
$
406,000
415,000Planning and Development
Services Technology Fee
This action reappropriates $415,000 for various technology projects in the
Planning and Development Services (PDS) Department. As part of the
Adopted Municipal Fee Schedule, a surcharge up to three percent is
included in some of the PDS fees to recover funding for technology
projects. These projects include ongoing technical support of the City's
Geographic Information System (GIS) and the new ESRI platform,
implementing an online permitting system, expanding Accela capabilities,
and digitizing and storing plans and records. At the close of FY 2023,
$415,000 remains unspent and will be used for planned projects in FY
2024.
Total Internal Service Fund Reappropriation $
Total All Funds Reappropriation $
‐$
$
1,141,000
25,174,0005,982,000
Page 8 of 8
Item 3
Attachment A - FY 2023 to FY 2024
Operating Budget Reappropriation
Requests
Item 3: Staff Report Pg. 14 Packet Pg. 18 of 152
FY 2023 TO FY 2024 CAPITAL BUDGET REAPPROPRIAITONS ATTACHMENT B
Expenses Revenues
Fund Number and Name Project Title Proj. No. Adopted Reapp Final Reapp Total Reapp Adopted Reapp Final Reapp Total Reapp
471‐Capital Improvement Fund Americans With Disabilities Act Compliance
Animal Shelter Renovation
Art In Public Spaces
PF‐93009
PE‐19002
AC‐86017
PG‐06001
FD‐21000
PG‐17000
PG‐06003
PL‐04010
PE‐17005
PF‐01003
PE‐17004
PL‐23000
PG‐14002
PE‐13011
PL‐14000
PL‐20000
PE‐20001
PE‐20002
PE‐09003
PE‐19000
PE‐17010
PE‐15020
PO‐12001
PG‐18001
PL‐15002
PF‐23000
PL‐19000
FD‐22000
PF‐02022
PE‐15003
PE‐18004
OS‐18000
PE‐20000
PE‐21000
PG‐18000
PG‐13003
PE‐11011
AC‐18001
LB‐21000
PE‐21003
PF‐17000
PF‐16006
PE‐18000
PE‐15007
PE‐15001
PE‐12011
OS‐09001
OS‐00002
PG‐09002
PG‐19000
PL‐15003
500,000
917,700
1,452,337
259,584
332,551
195,273
9,144
‐
832,551
1,112,973
1,461,481
259,584
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐Athletic Courts Resurfacing
Automated External Defibrillator Replacement
Baylands Comprehensive Conservation Plan
Benches, Signage, Walkways, Perimeter Landscaping, and Site Amenities
Bicycle and Pedestrian Transportation Plan Implementation
Boulware Park Improvements
Building Systems Improvements
California Avenue District Gateway Signs
California Avenue Streetscape Update
Cameron Park Improvements
Charleston/Arastradero Corridor Project
Churchill Avenue Enhanced Bikeway
Churchill Avenue/Alma Street Railroad Crossing Safety Improvements
City Bridge Improvements
City Facilities Assessment
38,000 38,000
43,100
189,370
‐
‐
‐
43,100
189,370
3,291,685
4,943,367
784,716
123,382
56,118
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐3,291,685
4,943,367
‐
‐188,979 188,979
784,716
124,476
49,092
95,813
‐
‐
‐
‐
‐
‐
‐
‐
(1,094)
7,026
(9,363)86,450
4,834 4,834
2,776,100
1,494,266
416,461
30,000
199,000
571,373
735,399
179,779
118,623
144,500
2,419,102
280,000
26,000
‐
‐
‐
‐
2,776,100
1,494,266
416,461
30,000
201,880
571,373
735,399
179,779
118,623
144,500
161,677
280,000
‐
79,513
494,800
1,000
160,034
210,000
25,066
442,000
770,000
168,000
87,105
‐‐‐
3,845,900 18,906 3,864,806
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
City Facility Parking Lot Maintenance
City Hall Space Planning
Civic Center Electrical Upgrade & EV Charger Installation
Civic Center Waterproofing Study and Repairs
Curb and Gutter Repairs
2,880
‐
‐
‐
‐
174,000 174,000
‐
‐
‐
‐
‐
‐
‐
‐
Dog Park Installation and Renovation ‐144,500 144,500
Downtown Automated Parking Guidance Systems, Access Controls & Revenue Collection Equip.
Electric Charger Infrastructure Installation
Emergency Vehicle Traffic Signal Preemption System Pilot
Extrication Tool Replacement
Facility Interior Finishes Replacement
Fire Station 3 Replacement
(2,257,425)‐‐
‐280,000 280,000
(26,000)
79,513
200,000
1,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐20,845 20,845
294,800
‐
160,034
210,000
25,066
442,000
770,000
168,000
‐
918,536
763,198
85,935
256,876
5,866,100
786,684
5,448,600
4,059,173
8,800,000
142,236
38,069
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Fire Station 4 Replacement ‐
‐
‐
‐
‐
‐
Foothills Nature Preserve Boronda Lake Dock Replacement
Foothills Nature Preserve Dam Seepage Investigation and Repairs
Foothills Nature Preserve Improvements
Golf Course Net and Artificial Turf Replacement
Golf Reconfiguration & Baylands Athletic Center Improvements
Highway 101 Pedestrian/Bicycle Overpass Project
JMZ Renovation
87,105
(18,701)
‐‐
899,835
763,198
85,935
76,844 76,844
540,000Library Automated Material Handling ‐
‐
540,000 ‐
‐
‐
‐
‐
‐
‐
Magical Bridge Playground Rubber and Synthetic Turf Resurfacing
Municipal Service Center A, B, & C Roof Replacement
Municipal Service Center Lighting, Mechanical, and Electrical Improvements
New California Avenue Area Parking Garage
New Downtown Parking Garage
‐
‐
‐
‐
‐
‐
‐
‐
(34,044)222,832
5,866,100
786,684
5,448,600
4,059,173
12,165,799
144,733
38,069
‐
‐
‐
‐
5,448,600 5,448,600
New Public Safety Building ‐‐
Newell Road/San Francisquito Creek Bridge Replacement
Off‐Road Pathway Resurfacing And Repair
Open Space Lakes And Pond Maintenance
Park and Open Space Emergency Repairs
Park Restroom Installation
3,365,799 8,800,000 3,820,236 12,620,236
2,497 ‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
18,845
20,228
163,900
18,845
20,228
163,900Parking District Implementation
Page 1 of 3
Item 3
Attachment B - FY 2023 to FY 2024
Capital Budget Reappropriation
Requests
Item 3: Staff Report Pg. 15 Packet Pg. 19 of 152
FY 2023 TO FY 2024 CAPITAL BUDGET REAPPROPRIAITONS ATTACHMENT B
Parking Management and System Implementation
Performing Arts Venues Seat Replacement
Police Video Recording Systems Replacement
Railroad Grade Separation and Safety Improvements
Ramos Park Improvements
Rinconada Park Improvements
Robles Park Improvements
Roofing Replacement
Roth Building Rehabilitation Phase 1
Safe Routes To School
San Francisquito Creek Joint Powers Authority Ongoing Creek Projects
Sidewalk Repairs
Sign Reflectivity Upgrade
Street Lights Condition Assessment
Street Lights Improvements
Street Maintenance
PL‐16002
AC‐18000
PD‐20000
PL‐17001
PG‐14000
PE‐08001
PE‐18015
PF‐00006
PF‐23001
PL‐00026
PE‐22000
PO‐89003
PO‐11000
PE‐13014
PO‐05054
PE‐86070
PO‐11001
PL‐05030
PL‐12000
PF‐14003
1,988
83,910
119,999
‐
8,898
16,367
366,748
1,710,629
11,348,825
819,817
5,914
(1,988)
(51,872)
11,449
3,995,937
‐
‐
32,038
131,448
3,995,937
8,898
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
935,333 935,333
‐‐‐
‐16,367 16,367 30,000 46,367
275,500
5,055
482,548
10,934
‐
642,248
1,715,684
11,831,373
830,751
5,914
1,080,907
136,037
220,000
125,000
2,173,646
153,000
1,110,754
913,584
149,318
78,689,186
‐
1,074,698
2,042,730
3,117,427
1,614,461
186,918
358,800
319,199
98,200
2,577,578
250,000
50,000
1,000,000
379,109
800,000
990,000
50,000
644,264
500,000
135,382
1,402,618
290,000
282,000
533,000
5,026,643
1,090,000
800,000
3,784,152
18,007,168
536,750
8,422,203
8,958,952
3,376,558
‐
‐
‐
‐
‐
‐
6,781,825 (1,650,000)5,131,825
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
1,080,907
26,037
‐300,000 300,000
110,000
‐
‐
‐
‐
‐
‐
‐
‐
‐
220,000
125,000
2,173,646
153,000
750,000
500,000
149,318
62,906,074
368,222
198,796
2,010,600
2,577,618
‐
‐
‐
‐Thermoplastic Lane Marking and Striping
Traffic Signal and Intelligent Transportation Systems
Transportation and Parking Improvements
University Avenue Parking Improvements
471‐Capital Improvement Fund TOTAL
‐
750,000
250,000
‐
27,157,192
‐
‐
300,000
500,000
‐
30,615,168
‐
360,754
413,584
‐
(450,000)
250,000
‐
15,783,112
(368,222)
875,902
32,130
539,809
1,614,461
186,918
37,300
195,199
10,200
2,044,078
‐
3,457,976
472‐Cubberley Fund Cubberley Field Restroom
Cubberley Repairs
Cubberley Roof Replacement
CB‐17002
CB‐17001
CB‐16002
‐
‐
‐
‐
‐‐
1,552,600
1,552,600
1,552,600
1,552,600472‐Cubberley Fund TOTAL
530‐Airport Fund Airport Apron Reconstruction Phase 1
Airport Layout Plan
Airport Temporary Office Buildings
Airport Zero Emission Vehicle Fleet Replacement
Automated Weather Observation System
AP‐16000
AP‐21000
AP‐22001
AP‐23000
AP‐19000
‐673,452
157,700
673,452
321,500
124,000
88,000
533,500
250,000
‐
1,000,000
300,000
800,000
990,000
‐
124,000
79,200
203,200
281,700
79,200
1,034,352530‐Airport Fund TOTAL
523‐Electric Fund
831,152
230 kV Electric Inte
Capacitor Bank Installation
EL‐06001
EL‐16002
EL‐14000
EL‐22002
EL‐19001
EL‐19002
EL‐89031
EL‐17001
EL‐98003
EL‐02011
EL‐21001
EL‐17005
EL‐10006
EL‐16000
EL‐11014
EL‐17002
EL‐89044
EL‐16003
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
50,000
Coleridge/Cowper/Tennyson 4/12kV Conversion
Colorado Distribution Feeder Outlet Replacement
Colorado Power Station Equipment Upgrade
Colorado Substation Improvements
Communications System Improvements
East Meadow Circles 4/12kV Conversion
Electric System Improvements
Electric Utility GIS
79,109
‐
‐
50,000
(13,102)
500,000
50,382
(37,382)
‐
657,366
‐
85,000
Foothills Rebuild
HCB Pilot Wire Relay Replacement
Rebuild UG Dist 24
1,440,000
290,000
282,000
500,000
5,280,089
1,090,000
800,000
3,529,539
17,293,994
505,796
8,345,513
8,851,309
3,119,195
‐
Rebuild UG District 26 33,000
(253,446)
‐
Smart Grid Technology Installation
Substation 60kV Breakers Replacement
Substation Facility Improvements
Substation Security
‐
254,613
713,174
30,954
76,690
107,643
257,363
523‐Electric Fund TOTAL
524‐Gas Fund Gas System Improvements
GMR‐ Project 24
GS‐11002
GS‐14003
524‐Gas Fund TOTAL
528‐Stormwater Fund Corporation Way System Upgrades SD‐21000
Page 2 of 3
Item 3
Attachment B - FY 2023 to FY 2024
Capital Budget Reappropriation
Requests
Item 3: Staff Report Pg. 16 Packet Pg. 20 of 152
FY 2023 TO FY 2024 CAPITAL BUDGET REAPPROPRIAITONS ATTACHMENT B
Green Stormwater Infrastructure
Storm Drain Pump Station to Adobe Creek
Storm Drain System Repl & Rehab
SD‐22001
SD‐20000
SD‐06101
SD‐22002
SD‐23000
1,866,351
1,069,995
578,924
‐
819,400
7,453,865
‐
130,050
100,790
28,061
6,613
71,721
594,599
147,859
‐
1,996,401
1,170,785
606,985
6,613
891,121
8,048,464
147,859
599,501
58,941
1,216,351 1,216,351
Trash Capture Device Installation 161,837 161,837
W Bayshore Rd Trunk Line Improvements
528‐Stormwater Fund TOTAL 1,216,351 161,837 1,378,188
527‐Wastewater Collection Fund Sewer Manhole Rehab/Replacement
Wastewater System Improvements
WC Fusion & Gen Equipment/Tools
WC Reh/Aug Proj 30
WC‐99013
WC‐15002
WC‐13002
WC‐17001
WC‐19001
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
599,501
58,941 ‐
‐
‐
80,000
8,414,974
8,642,833
129,891
10,300
38,867
2,578,200
23,000
315,115
870,278
1,888,152
2,689,411
8,543,215
‐
17,946
‐
500,499
(560)
232,000
(86,883)
(31,239)
631,763
‐
80,000
WC Reh/Aug Proj 31 8,414,974
9,301,275
17,093,787
4,767,300
242,340
2,578,200
10,605,800
315,115
7,322,920
4,516,152
6,511,905
53,953,520
6,578,007
274,982
351,529
846,720
3,271,340
232,000
473,387
563,361
12,591,326
1,770,910
650,000
1,004,620
144,310
259,900
222,082
4,051,822
30,000
527‐Wastewater Collection Fund TOTAL
526‐Wastewater Treatment Fund
658,442
16,963,896
4,757,000
203,473
‐
Advanced Water Purification Facility
Headworks Facility Replacement
Horizontal Levee Pilot
Laboratory & Environmental Svcs Bldg
Outfall Line Construction
WQ‐19003
WQ‐16002
WQ‐22001
WQ‐14002
WQ‐19000
WQ‐10001
WQ‐19002
WQ‐14003
WQ‐19001
16,963,896
4,757,000
1,646,240 18,610,136
4,757,000
‐
‐
‐‐
2,510,000 2,510,000
10,582,80010,582,800
‐
10,582,800
Plant Master Plan ‐
‐
‐
‐
‐
‐
‐Plant Repair, Retrofit & Eqpt Replacement
Primary Sedimentation Tank Rehabilitation
Secondary Treatment Upgrades
6,452,642
2,628,000
3,822,494
45,410,305
6,578,007
257,036
351,529
346,221
3,271,900
‐
560,270
594,600
11,959,563
1,770,910
650,000
989,000
144,360
259,900
185,817
3,999,987
30,000
9,284,020
185,570,117
199,010,377
9,284,020
189,392,611
235,136,567
3,822,494
36,126,190526‐Wastewater Treatment Fund TOTAL
522‐Water Fund Seismic Water System Upgrade
Turnouts Regulator Station Improvement
Water Distribution System Improvement
Water Meters
Water Supply System Improvement
W‐G‐W Utility GIS Data
WS‐09000
WS‐07000
WS‐11003
WS‐80015
WS‐11004
WS‐02014
WS‐14001
WS‐15002
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
WMR‐Project 28
WMR‐Project 29
522‐Water Fund TOTAL
682‐Technology Fund City Council Chamber
Computer Aided Dispatch
Enterprise Resource
Infrastructure Management
Radio Infrastructure
TE‐19001
TE‐23000
TE‐19000
TE‐13004
TE‐05000
TE‐10001
‐
15,620
(50)
‐
Utilities Customer Billing 36,265
51,835
‐
682‐Technology Fund TOTAL
681‐Vehicle Fund Vehicle Replacement
Vehicle Replacement
Vehicle Replacement
Vehicle Replacement
VR‐20000
VR‐21000
VR‐22000
VR‐23000
20,000 ‐20,000
100,000
2,091,434
2,241,434
163,886,091
(100,000)
(1,329,022)
(1,429,022)
‐
762,412
812,412681‐Vehicle Fund TOTAL
GRAND TOTAL 36,223,039 200,109,130 66,255,533 203,461,342 269,716,875
Page 3 of 3
Item 3
Attachment B - FY 2023 to FY 2024
Capital Budget Reappropriation
Requests
Item 3: Staff Report Pg. 17 Packet Pg. 21 of 152
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: October 23, 2023
Report #:2309-2090
TITLE
Approval of Contract Amendment No. 3 with Carollo Engineers, Inc., adding $388,538 to the
Total Contract Amount for Construction Management Services through June 30, 2024 for the
Regional Water Quality Control Plant Primary Sedimentation Tank Rehabilitation Project. CEQA
status – Exempt under CEQA Guidelines Section 15301 (repairs to existing facilities).
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to
execute Amendment No. 3 to Contract No. C21179265C with Carollo Engineers, Inc. to increase
the contract amount by $388,538 to provide construction management and inspection services
during the remaining estimated nine months of construction on the Primary Sedimentation
Tank Rehabilitation Project (WQ-14003), through June 2024. The revised total contract amount
is not to exceed $9,229,806 including $8,284,216 for basic services and $945,590 for additional
services, for this project as well as other projects that will continue through March 2028.
EXECUTIVE SUMMARY
The Regional Water Quality Control Plant is currently being rebuilt. One of the major projects,
the Primary Sedimentation Tank Rehabilitation Project, has been delayed predominantly due to
supply chain issues. To ensure sufficient funding for the remainder of this project, address
resource constraints within the current construction management team, and ease coordination
with the Secondary Treatment Upgrades Project that commenced earlier this year, staff
recommends consolidating the construction management services for both projects through
the approval of Contract Amendment No. 3 with Carollo Engineers, Inc.
BACKGROUND
The Regional Water Quality Control Plant (RWQCP) was originally constructed in 1934 and
has undergone several expansions and upgrades, including the construction of the primary
sedimentation tanks in 1972. The design of the Primary Sedimentation Tank Rehabilitation
Project (PST Project) was completed in August 2019. Construction of the PST Project was
Item 4
Item 4 Staff Report
Item 4: Staff Report Pg. 1 Packet Pg. 22 of 152
awarded to C. Overaa & Co. (C21179134A) on May 17, 2021 with an initial contract
completion date of December 31, 20231. Due to delayed electrical equipment procurement
by the contractor and long lead time for fabrication, critical electrical work is projected to be
completed by March 2024 with final project completion by June 30, 2024. Staff will continue
to monitor the construction schedule and extend the end date, if warranted.
As of September 2023, construction of the project has progressed to 80 percent. Remaining
construction activities include finalization of coating of Primary Sedimentation Tank No. 1;
installation of a cathodic protection system for the primary sludge line in the Equipment
Room; testing, startup, and commissioning of the sludge raking mechanism; installation of
the guardrail around the scum skimming troughs; installation of new access door and
handrail at the Equipment Room; power connection to new electrical building and testing
and startup of the associated power distribution equipment; human-machine interface
programming; fire alarm installation at the new electrical building; and demolition of old
equipment and associated conduits.
On June 21, 2021, Council approved five separate five-and-a-half-year contracts (Contract
Nos. C21179265A through C21179265E) with MNS Engineers, Inc.; CDM Smith; Carollo
Engineers, Inc.; MCK Americas, Inc., and Tanner Pacific, Inc., for Regional Water Quality
Control Plant (RWQCP) On-Call Construction Management and Inspection Services with a
total not-to-exceed amount of $1 for each contract2. For construction of each capital
improvement project at the RWQCP, staff issued a request for work order proposals to all
five aforementioned construction management consultants, evaluated the proposals
received, and selected one consultant that best met the project needs. Staff then sought
Council’s approval on a project-specific amendment (Task Order) to the selected
construction management consultant’s contract as part of the staff report for the approval of
the construction contract for that project.
For construction management of the PST Project, Staff initially awarded this work to MNS
Engineers, Inc. (MNS) through a contract amendment (Amendment No. 1 to Contract
C21179265A) on September 30, 2021 following City Council approval3 for compensation not
to exceed $1,560,213. The associated Task Order No. 1 services were funded by the Primary
Sedimentation Tank Rehabilitation Project (WQ-14003).
1 City Council, May 17, 2021; Agenda Item #10; SR #11735.
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2021/id-11735.pdf
2 City Council, June 21, 2021; Agenda Item #21; SR #12324.
https://www.cityofpaloalto.org/files/assets/public/v/2/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2021/id-12324.pdf
3 City Council, June 21, 2021; Agenda Item #21; SR #12324.
https://www.cityofpaloalto.org/files/assets/public/v/2/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2021/id-12324.pdf
Item 4
Item 4 Staff Report
Item 4: Staff Report Pg. 2 Packet Pg. 23 of 152
ANALYSIS
Due to resource constraints within the MNS construction management team, the extended
construction completion date, and the need to control the project budget, staff issued a
Notice of Termination for Amendment No. 1 to Contract C21179265A to MNS on September
27, 2023 and requested a fee proposal from Carollo Engineers Inc. (Carollo) who is currently
onsite and managing the Secondary Treatment Project. Carollo’s fee proposal will use the
remaining project budget for construction management to complete the work at no
additional cost to the City. Staff determined that it would be efficient and cost effective to
utilize a construction management firm who is already onsite, familiar with the RWQCP’s
process and electrical systems, and whose resources are not constrained. Staff recommends
that the City Council approve Amendment No. 3 (Attachment A) to Contract No. C21179265C
with Carollo, with consideration of the following factors:
1) Carollo was previously ranked No. 2 during the Work Order No. 1 proposal evaluation;
2) Carollo has staff onsite managing the construction of the Secondary Treatment
Upgrades and Plant Repair, Retrofit, and Equipment Replacement which includes
12,470-volt (a.k.a. 12kV) Electrical Power Distribution Loop Rehabilitation projects and
is familiar with the RWQCP’s equipment systems;
3) Staff are satisfied with Carollo’s performance and responsiveness at resolving
construction issues for the aforementioned projects. Timely resolution is needed to
mitigate potential schedule delay faced by the PST Project; and
4) Carollo’s proposed fee ($246,700) to carry the PST Project to completion is less than
the remaining funds in MNS Contract Amendment No.1 (estimated at around $270,000
plus $141,838 contingency for additional services). The proposed Amendment No. 3 to
Carollo’s contract will include $246,700 for basic services and $141,838 for additional
services for a total not-to-exceed amount of $388,538 for this project.
On November 14, 2022, Council approved Amendment No. 1 to Contract C21179265C with
Carollo to add Task 2: construction management and inspection services for the 12kV Electrical
Power Distribution Loop Rehabilitation Bid Package 1 Project, and to increase compensation for
basic and additional services by $604,246, from $1 to $604,247. Task 2 Services were funded by
the Plant Repair, Retrofit, and Equipment Replacement Project (WQ-19002)4.
On December 5, 2022, Council approved Amendment No. 2 to Contract C21179265C with
Carollo to: 1) add Task 3: construction management and inspection services for the Secondary
Treatment Upgrades Project; 2) extend the contract term through March 31, 2028; and 3)
increase compensation for basic and additional services by $8,237,021, from $604,247 to
4 City Council, November 14, 2022; Agenda Item #5; SR #14602.
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/2022/id.-14602.pdf
Item 4
Item 4 Staff Report
Item 4: Staff Report Pg. 3 Packet Pg. 24 of 152
$8,841,268. Task 3 Services were funded by the Secondary Treatment Upgrades Project (WQ-
19001)5.
This Amendment No. 3 to Carollo Contract C21179265C will increase compensation for basic
and additional services by $388,538, from $8,841,268 to $9,229,806. Task 1A Services will be
funded by the Primary Sedimentation Tank Rehabilitation Project (WQ-14003).
The PST Project final completion date is expected to be June 30, 2024. Amendment No. 3 to the
Carollo Contract C21179265C will not change the current contract end date of March 31, 2028.
FISCAL/RESOURCE IMPACT
Once the termination of Amendment No. 1 to the MNS Contract C21179265A (Task 1 services)
is finalized, the remaining funds from Task 1, estimated at $411,838, will become available in
the Primary Sedimentation Tank Rehabilitation Project (WQ-14003) for Amendment No. 3 to
Carollo Contract C21179265C (Task 1A Services). Therefore, no additional funds are required for
the amendment amount of $388,538.
STAKEHOLDER ENGAGEMENT
This project is part of the RWQCP’s major capital improvement program funded by the City of
Palo Alto and its five partner agencies who use the RWQCP for wastewater treatment. The five
partner agencies are regularly updated on both the need for and the progress of wastewater
treatment capital work. Updates are provided each year at an annual meeting and at other
periodic meetings established to inform partner agency staff about the major capital
improvement program. With respect to Palo Alto itself, the open meetings on the budget
process serve as the main vehicle for engaging the community on both new projects and
associated rate impacts.
ENVIRONMENTAL REVIEW
Approval of the proposed contract amendment is within the scope of the Primary
Sedimentation Tank Rehabilitation Project. On October 15, 2018, the City Council determined
that the project is categorically exempt from CEQA review under CEQA Guidelines section
15301 because the project involves repairs to existing facilities with a negligible expansion in
use. A Notice of Exemption was submitted to Santa Clara County Clerk-Recorder’s office and
was recorded on October 31, 2018 (File No. ENV21843).
5 City Council, December 5, 2022; Action Item #8; SR #14918.
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/2022/id.-14918.pdf
Item 4
Item 4 Staff Report
Item 4: Staff Report Pg. 4 Packet Pg. 25 of 152
ATTACHMENTS
Attachment A: Amendment No. 3 to Contract C21176592C for Construction Management and
Inspection Services
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
Item 4
Item 4 Staff Report
Item 4: Staff Report Pg. 5 Packet Pg. 26 of 152
Page 1 of 19 Vers.: Aug. 5, 2019
AMENDMENT NO. 3 TO CONTRACT NO. C21179265C
BETWEEN THE CITY OF PALO ALTO
AND CAROLLO ENGINEERS, INC.
This Amendment No. 3 (this “Amendment”) to Contract No. C21179265C (the “Contract” as
defined below) is entered into as of October 16, 2023, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and CAROLLO ENGINEERS, INC., a California
corporation, located at 2795 Mitchell Drive, Walnut Creek, CA 94598 (“CONSULTANT”). CITY and
CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A.The Contract (as defined below) was entered into by and between the Parties to
provide construction management and inspection services on an on-call, as-needed,
time-limited basis in connection with individual projects or inspection tasks at the
Regional Water Quality Control Plant (RWQCP), as detailed therein.
B.The Parties entered into Amendment No. 1 to add Task 2 services (referred to as Work
Order No. 2) for Construction Management and Inspection Services for the 12kV
Electrical Power Distribution Loop Rehabilitation Bid Package 1 Project, and to increase
compensation by Six Hundred Four Thousand Two Hundred Forty-Six Dollars
($604,246.00), from One Dollar ($1.00) to Six Hundred Four Thousand Two Hundred
Forty-Seven Dollars ($604,247.00), as detailed therein.
C.The Parties entered into Amendment No. 2 to (1) extend the contract term through
March 31, 2028; (2) add Task 3 services (referred to as Work Order No. 3) for
Construction Management Services for the Secondary Treatment Upgrades Project;
and (3) increase compensation by Eight Million Two Hundred Thirty-Seven Thousand
Twenty-One Dollars ($8,237,021.00), from Six Hundred Four Thousand Two Hundred
Forty-Seven Dollars ($604,247.00) to Eight Million Eight Hundred Forty-One Thousand
Two Hundred Sixty-Eight Dollars ($8,841,268.00), as detailed therein.
D.The Parties now wish to amend the Contract in order to (1) add Task 1A services
(referred to as Work Order No. 1A) for Construction Management Services for the
Primary Sedimentation Tank Rehabilitation and Equipment Room Electrical Upgrade
Project; and (2) increase compensation by Three Hundred Eighty-Eight Thousand Five
Hundred Thirty-Eight Dollars ($388,538.00), from $8,841,268.00 to Nine Million Two
Hundred Twenty-Nine Thousand Eight Hundred Six Dollars ($9,229,806.00), as detailed
herein.
DocuSign Envelope ID: 89B1D434-228E-4D0F-8848-A0329F622850
Item 4
Attachment A -
Amendment No. 3 to
Contract C21176592C for
Construction
Management and
Inspection Services
Item 4: Staff Report Pg. 6 Packet Pg. 27 of 152
Page 2 of 19 Vers.: Aug. 5, 2019
NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this
Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C21179265C between
CONSULTANT and CITY, dated June 14, 2021, as amended by:
Amendment No. 1, dated November 7, 2022
Amendment No. 2, dated December 5, 2022
b. Other Terms. Capitalized terms used and not defined in this Amendment shall
have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to
read as follows:
“The CITY is engaging multiple consultants, including CONSULTANT, that are eligible to respond with
proposals to the CITY’s project-specific Task Orders under the process described in Exhibit A. The
compensation to be paid to CONSULTANT for performance of the Services shall be based on the
compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable
expenses specified therein, and the maximum total compensation shall not exceed One Dollar ($1),
unless CITY selects CONSULTANT, according to the process in Exhibit A, to perform services under one
or more Task Orders not to exceed Nine Million Two Hundred Twenty-Nine Thousand Eight Hundred
Six Dollars ($9,229,806.00) over the term of the Agreement. No pre-qualified consultant, including the
CONSULTANT under this Agreement, is guaranteed selection or assured of any minimum quantity of
work to be performed. In the event CONSULTANT is not selected to provide Services under a Task
Order, no payment is due from CITY.
The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.”
Any work performed, or expenses incurred for which payment would result in a total exceeding
the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.
A. The City has selected CONSULTANT to perform Work Order #2, for Construction
Management and Inspection Services for the Medium Voltage Electrical Network (12kV
Elec. Loop) Rehabilitation Bid Package 1 Project, in the amount not to exceed Five
Hundred Forty-Nine Thousand Three Hundred Fifteen Dollars ($549,315.00).
CONSULTANT agrees to complete all Basic Services, including reimbursable expenses,
within this amount. In the event Additional Services (as defined below) are authorized, the
total compensation for Basic Services, Additional Services and reimbursable expenses for
Work Order #2 shall not exceed Six Hundred Four Thousand Two Hundred Forty-Seven
Dollars ($604,247.00).
DocuSign Envelope ID: 89B1D434-228E-4D0F-8848-A0329F622850
Item 4
Attachment A -
Amendment No. 3 to
Contract C21176592C for
Construction
Management and
Inspection Services
Item 4: Staff Report Pg. 7 Packet Pg. 28 of 152
Page 3 of 19 Vers.: Aug. 5, 2019
B. The City has selected CONSULTANT to perform Work Order #3, for Construction
Management Services for the Secondary Treatment Upgrades Project, in the amount not
to exceed Seven Million Four Hundred Eighty-Eight Thousand Two Hundred One Dollars
($7,488,201.00). CONSULTANT agrees to complete all Basic Services, including
reimbursable expenses, within this amount. In the event Additional Services (as defined
below) are authorized, the total compensation for Basic Services, Additional Services and
reimbursable expenses for Work Order #3 shall not exceed Eight Million Two Hundred
Thirty-Seven Thousand Twenty-One Dollars ($8,237,021.00).
C. The City has selected CONSULTANT to perform Work Order #1A, for Construction
Management Services for the Primary Sedimentation Tank Rehabilitation and Equipment
Room Electrical Upgrade Project, in the amount not to exceed Two Hundred Forty-Six
Thousand Seven Hundred Dollars ($246,700.00). CONSULTANT agrees to complete all
Basic Services, including reimbursable expenses, within this amount. In the event
Additional Services (as defined below) are authorized, the total compensation for Basic
Services, Additional Services and reimbursable expenses for Work Order #1A shall not
exceed Three Hundred Eighty-Eight Thousand Five Hundred Thirty-Eight Dollars
($388,538.00).
Optional Additional Services Provision (This provision applies only if checked and a not-to-
exceed compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to-
exceed compensation amount of Fifty-Four Thousand Nine Hundred Thirty-Two Dollars
($54,932.00) for the performance of Additional Services for Work Order #2; Seven Hundred
Forty-Eight Thousand Eight Hundred Twenty Dollars ($748,820.00) for Work Order #3; and
One Hundred Forty-One Thousand Eight Hundred Thirty-Eight Dollars ($141,838.00) for Work
Order #1A. The total compensation for performance of the Services, Additional Services and
any reimbursable expenses specified in Exhibit C, shall not exceed Nine Million Two Hundred
Twenty-Nine Thousand Eight Hundred Six Dollars ($9,229,806.00), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the
proper completion of the Project, but which is not included within the Scope of Services
described in a Task Order issued under Exhibit A. CITY may elect to, but is not required to,
authorize Additional Services up to the maximum amount of compensation set forth for
Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by
advanced, written authorization from CITY as detailed in this Section. Additional Services, if
any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project
Manager, as identified in Section 13 (Project Management). Each Task Order shall be in
substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”.
Each Task Order shall contain a specific scope of services, schedule of performance and
DocuSign Envelope ID: 89B1D434-228E-4D0F-8848-A0329F622850
Item 4
Attachment A -
Amendment No. 3 to
Contract C21176592C for
Construction
Management and
Inspection Services
Item 4: Staff Report Pg. 8 Packet Pg. 29 of 152
Page 4 of 19 Vers.: Aug. 5, 2019
maximum compensation amount, in accordance with the provisions of this Agreement.
Compensation for Additional Services shall be specified by CITY in the Task Order, based on
whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set
forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project
Manager within the time specified by the Project Manager, and upon authorization by CITY
(defined as counter-signature by the CITY Project Manager), the fully executed Task Order
shall become part of this Agreement. The cumulative total compensation to CONSULTANT for
all Task Orders authorized under this Agreement shall not exceed the amount of
compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be
compensated for Additional Services performed under an authorized Task Order and only up
to the maximum amount of compensation set forth for Additional Services in this Section 4.
Performance of and payment for any Additional Services are subject to all requirements and
restrictions in this Agreement.”
SECTION 3. The following exhibit(s) to the Contract are hereby amended, as indicated below,
to read as set forth in the attachment(s) to this Amendment, which are hereby incorporated in full into
this Amendment and into the Contract by this reference:
a. Exhibit “A-3” entitled “PROFESSIONAL SERVICES TASK ORDER NO. 1A, AMENDMENT
NO. 3” (ADDED).
b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 3” (AMENDED,
REPLACES PREVIOUS)
c. Exhibit “C” entitled “COMPENSATION, AMENDMENT NO. 3,” (AMENDED, REPLACES
PREVIOUS).
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
DocuSign Envelope ID: 89B1D434-228E-4D0F-8848-A0329F622850
Item 4
Attachment A -
Amendment No. 3 to
Contract C21176592C for
Construction
Management and
Inspection Services
Item 4: Staff Report Pg. 9 Packet Pg. 30 of 152
Page 5 of 19 Vers.: Aug. 5, 2019
SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this
Amendment effective as of the date first above written.
CITY OF PALO ALTO
______________________________
City Manager or Designee
APPROVED AS TO FORM:
______________________________
City Attorney or Designee
CAROLLO ENGINEERS, INC.
Officer 1
By:_____________________________
Name:__________________________
Title:____________________________
Officer 2
By:_____________________________
Name:__________________________
Title:____________________________
Attachments:
Exhibit “A-3”: PROFESSIONAL SERVICES TASK ORDER NO. 1A, AMENDMENT NO. 3 (ADDED)
Exhibit “B”: SCHEDULE OF PERFORMANCE, AMENDMENT NO. 3 (AMENDED, REPLACES PREVIOUS)
Exhibit “C”: COMPENSATION, AMENDMENT NO. 3 (AMENDED, REPLACES PREVIOUS)
DocuSign Envelope ID: 89B1D434-228E-4D0F-8848-A0329F622850
Senior Vice President
Rick Chan, Senior Vice President
Senior Vice President
Anne E. Prudhel
Item 4
Attachment A -
Amendment No. 3 to
Contract C21176592C for
Construction
Management and
Inspection Services
Item 4: Staff Report Pg. 10 Packet Pg. 31 of 152
Page 6 of 19 Vers.: Aug. 5, 2019
EXHIBIT “A-3”
PROFESSIONAL SERVICES TASK ORDER NO. 1A, AMENDMENT NO. 3
(ADDED)
CONSULTANT shall perform the Services detailed below in accordance with all the terms and
conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are
incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities,
professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179265C
1A. MASTER AGREEMENT NO.: C21179265C
1B. TASK ORDER NO 1A: Work Order No. 1A for Construction Management Services for the
Primary Sedimentation Tank Rehabilitation and Equipment Room Electrical Upgrade Project
2. CONSULTANT NAME: CAROLLO ENGINEERS, INC.
3. PERIOD OF PERFORMANCE:
START: Immediately Once Notice to Proceed (NTP) is Issued;
COMPLETION: 6/30/2024
4 TOTAL TASK ORDER NO. 1A PRICE: $246,700.00
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT: $0
5. WBS/CIP: WQ-14003
6. CITY PROJECT MANAGER: Siew Ching Chin, Public Works Department, Environmental
Services Division, RWQCP
7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE:
Services and Deliverables to Be Provided
Schedule of Performance
Maximum Compensation Amount and Rate Schedule (As Applicable)
Reimbursable Expenses, If Any (With “Not to Exceed” Amount)
8. ATTACHMENTS: Task Order No. 1A Scope of Services, including Schedule of Performance
and Compensation Schedule
TASK ORDER #1A SCOPE OF SERVICES
WORK ORDER NO. 1A: CONSTRUCTION MANAGEMENT SERVICES FOR THE PRIMARY
SEDIMENTATION TANK REHABILITATION AND EQUIPMENT ROOM ELECTRICAL UPGRADE PROJECT
Background:
Construction of this Project was awarded to C. Overaa & Co. (C21179134A) on May 17, 2021 with a
final completion date of December 31, 2023. As of August 31, 2023, the construction of this project
has progressed to 77%. Remaining construction activities include coating of Primary Sedimentation
Tank (PST) No. 1; installation of a cathodic protection system for PST sludge line in the Equipment
DocuSign Envelope ID: 89B1D434-228E-4D0F-8848-A0329F622850
Item 4
Attachment A -
Amendment No. 3 to
Contract C21176592C for
Construction
Management and
Inspection Services
Item 4: Staff Report Pg. 11 Packet Pg. 32 of 152
Page 7 of 19 Vers.: Aug. 5, 2019
Room; PST flight and chain monitoring system startup and commissioning; guardrail installation at top
deck scum skimmer and PST electrical building; landing and handrail installation for a new door at
Equipment Room; new MCC-F connection to Load Center No.4; PLC and SCADA programming; MCCs F
and G testing (in progress); fire alarm installation at PST electrical building (near completion);
equipment cutover to new MCCs F and G; and demolition of old MCCs and associated conduits. The
construction substantial completion date is currently projected for March 31, 2024 with a final
completion date June 30, 2024.
CONSULTANT shall provide construction management and inspection services for the remainder of
this Project.
Task 1: General Requirements
1. For any work which requires licensing, the Proposers shall be appropriately licensed
in accordance with the laws of the State of California. The cost for any required
licenses or permits shall be the responsibility of the successful Proposers.
2. CONSULTANT shall provide all necessary administration, project controls, quality
assurance and professional oversight of the project to keep the project on schedule,
within budget, provide continuity of information, and satisfy the requirements of the
CONTRACT. CONSULTANT shall prepare and distribute a Project Management Plan
to include schedule, budget, roles, contracts and procedures.
3. At the beginning of each month, CONSULTANT shall submit to the CITY monthly
invoices for the cost incurred during previous month; including subconsultant and
expenses. If CITY chooses to seek reimbursement for some or all of CONSULTANT’s
costs from SRF, CONSULTANT shall provide SRF required documentation with the
invoices and clearly indicate the SRF eligible reimbursement amount.
4. CONSULTANT shall prepare and submit monthly invoice packages to the City. The
City prefers processing CONSULTANT pay requests that cover one calendar month.
Monthly invoice packages are to include a progress report documenting progress.
The report shall include the progress by each task, the budget status (authorized
amount, current billing, billed to date, previously billed, amount remaining, and
percent spent), outstanding issues, potential changes, project schedule and schedule
impacts. CONSULTANT shall identify and mitigate potential budget overruns; and
notify CITY Project Manager as soon as the potential overrun is identified. If SRF
funding is used, progress reports shall include a summary of SRF eligible costs per
month.
Task 2: Construction Phase
1. Construction Administration
a. Project Coordination
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i. CONSULTANT shall act as the project coordinator and the point of
contact for all communications with the CONTRACTOR. The
CONSULTANT shall coordinate construction activities of the CITY,
ENGINEER, and CONTRACTOR. CONSULTANT responsibilities
include: Conduct team meetings within the consulting firm to
review progress, coordinate evaluations and identify information
needs; Disseminate information to the design team; Manage the
project budget; Manage the project schedule; Manage sub-
consultants; Manage QA / QC team; Coordinate communications
with other ongoing project’s construction managers to facilitate the
construction of ongoing projects and continuous Plant operations.
ii. CONSULTANT shall provide a contact phone number to respond to
issues related to construction activity or coordination, 24 hours a
day, 7 days a week.
b. Document Tracking System: CONSULTANT shall use web based construction
management platform (CMIS) already established for the PST Project.
c. Construction Administration Services: CONSULTANT shall provide
administrative and management services. The CONSULTANT shall receive all
correspondence from the CONTRACTOR and address all inquiries from the
CONTRACTOR and construction related correspondence. The ENGINEER will
be responsible for providing design input.
2. Meetings
a. CONSULTANT shall prepare agenda for progress meetings and other
construction meetings required during the Project, which includes weekly
meetings with the CONTRACTOR and CITY.
b. CONSULTANT shall facilitate and prepare records of discussions for the
progress meetings and other construction related meetings.
c. CONSULTANT shall have all pending decisions detailed for the meetings as
well as project statistics (schedule updates, approximate percent project
complete, near-term milestones).
d. Anticipated Meetings
i. Weekly progress meeting
ii. Project close-out Meeting
iii. Attend coordination meetings with other ongoing projects, as-
needed.
3. Submittals
a. CONSULTANT shall use the online document tracking system to log and
coordinate the submittal process.
b. CONSULTANT shall receive the submittals, including CONTRACTOR’s red-line
drawings, from the CONTRACTOR and check the submittals for general
conformity with the Construction Contract requirements and American Iron
and Steel (AIS) requirements. If obvious deficiencies are apparent in the
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submittal, the CONSULTANT shall reject and send the submittal back to the
CONTRACTOR for correction.
c. CONSULTANT shall route the submittals to the ENGINEER for review and shall
route the reviewed submittal back to the CONTRACTOR. The CONSULTANT
shall review comments on the submittals to determine if additional follow-up
with the CONTRACTOR and/or ENGINEER is warranted and to identify any
scope changes.
d. CONSULTANT shall coordinate the ENGINEER’s submittal review and the
track the status of shop drawing resubmittals with the CONTRACTOR.
e. In addition to the CONSULTANT, ENGINEER to review all design related
submittals and all submittals for temporary facilities.
f. CONSULTANT shall review temporary facilities submittals for conflicts with
other ongoing projects’ active and/or proposed construction. The City may
request CONSULTANT review other ongoing projects’ temporary facilities
submittals for constructability issues.
g. CONSULTANT shall review temporary facilities submittals for operability.
4. Request for Information/Clarification Process
a. CONSULTANT shall utilize the online document tracking system for processing
requests for design clarifications.
b. CONSULTANT shall receive all requests for information (RFIs) from the
CONTRACTOR and determine if the request is a valid RFI;
i. If valid, ENGINEER will review the RFIs and provide design response.
CONSULTANT shall review the ENGINEER’s response, verify
acceptability of response and transmit the Clarification Response to
the CONTRACTOR.
ii. If not, CONSULTANT shall return the RFI to the CONTRACTOR with
justifications.
c. CONSULTANT shall provide a response within 7 calendar days to the
CONTRACTOR for any administrative, field condition specific and general RFI.
d. ENGINEER shall prepare Design Clarifications where design issues are
identified by the CONSULTANT, ENGINEER, or CITY. CONSULTANT shall
prepare the Clarification Letter for transmittal to the CONTRACTOR of the
ENGINEER’s Design Clarification and other clarifications.
e. CONSULTANT shall work with the CITY Project Manager to maintain an Error
and Omission Log for remaining work to document change orders, RFIs and
RFCs that are a result of ENGINEER and CONTRACTOR errors in design and
construction, respectively. The log shall record the hours spent by the
ENGINEER to respond to the RFIs/ RFCs and associated cost impact to the
construction. CITY may seek reimbursement from the ENGINEER and/or
CONTRACTOR.
5. Change Order Preparation, Negotiation & Processing
a. The CITY will review and process all change order requests submitted by the
CONTRACTOR before September 18, 2023 and may request CONSULTANT’s
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assistance when negotiation with the CONTRACTOR is needed.
b. CONSULTANT shall review all change order requests (either initiated by the
CITY or by the CONTRACTOR) received on or after September 18, 2023.
i. CONSULTANT shall utilize the online document tracking system to log,
track, and process changes.
ii. CONSULTANT shall maintain Change Event files. These files shall
compile all data related to specific items that arise that may have cost
or time impacts or neither.
c. CONSULTANT shall judge the validity and/or merits of all CONTRACTOR
initiated change order requests. CONTRACTOR initiated change orders
deemed unnecessary, or not substantiated by a deficiency in the construction
documents shall be returned to CONTRACTOR unapproved with an
explanation.
d. CONSULTANT shall negotiate change orders with the CONTRACTOR,
considering impact to the schedule, as well as, reasonableness of cost, and
impact to total project budget. CONSULTANT shall provide updates regarding
potential cost and schedule changes to CITY.
e. CONSULTANT shall prepare an independent cost estimate and/or verify the
acceptability of the CONTRACTOR’s cost proposal for each approved change
request. At CITY’s discretion, ENGINEER’s opinion may be requested for
specific equipment and material costs.
f. CONSULTANT shall prepare change orders using CITY’s procedure for
execution by the CITY and CONTRACTOR.
i. CONSULTANT shall prepare a Change Order Memorandum, if
requested by the CITY, to provide additional background discussion for
need of the change and reasonableness of cost and schedule impact.
ii. ENGINEER shall prepare design details for change requests as needed.
CONSULTANT to coordinate schedule and distribution of design
details.
iii. CONSULTANT shall prepare, and issue approved change order
requests to the CONTRACTOR with the appropriate design documents
as directed by the CITY.
g. In the event the CONTRACTOR encounters a time sensitive problem where
time is not available to negotiate a settlement, CONSULTANT shall issue a
written field order.
i. All work done under a field order will be completed on a time and
material basis. CONSULTANT to collect extra work daily reports from
the Contractor each day and track actual time and material expended
for the field order work.
ii. Field orders shall be reviewed and approved with the CITY prior to
issuance.
6. Documentation of Environmental Compliance
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a. CONSULTANT shall document compliance with environmental permitting and
mitigation measures in accordance with the requirements of the
environmental documents and regulatory permits.
7. Progress Payment
a. CONSULTANT shall review the progress payment requests and determine
whether the amount requested reflects the actual status of the Contractor’s
work in place, materials on site and other contract requirements.
b. CONSULTANT shall perform the appropriate administration, preparation and
processing of the monthly progress payments so the CITY can respond in
accordance with the time periods set forth in the Public Contract Code.
c. CONSULTANT shall prepare the summary cover sheet for the progress
payments which will be executed by CONSULTANT, CONTRACTOR and CITY.
d. CONSULTANT shall not recommend final payment to the CONTRACTOR until
the CONSULTANT has determined CONTRACTOR has complied with the
project closeout requirements, including submittals of record documents,
warranties, and operations and maintenance manuals. CITY will release the
retention only after a Notice of Completion has been recorded with the Santa
Clara County Clerk’s Recorder Office.
8. CONTRACTOR’s Certified Payroll
a. On a bi-weekly basis, or when otherwise requested by the CITY, State, or
other agency or public inquiry, the CONSULTANT shall collect certified payrolls
from the CONTRACTOR. Apart from the regular, bi-weekly collection, the
CONSULTANT shall obtain payroll records within 10 days of the CITY’s request.
b. CONTRACTOR is responsible for submitting electronically their certified payroll
records to the State Department of Industrial Relations.
c. CONSULTANT shall be responsible for documenting and conducting interviews
of the CONTRACTOR’s field staff/crew for compliance with CITY prevailing
wage ordinance and SRF requirements (SF-1445) for Davis-Bacon Act
compliance.
9. Schedule
a. CONSULTANT shall review the CONTRACTOR’s schedule updates and provide
written comments to the submitted update.
b. CONSULTANT shall review and evaluate the CONTRACTOR’s requests for
Contract Time extension and make written recommendations to the CITY
regarding entitlement and the number of days, if any, to be added to the
Contract Time(s). If requested by the CITY, CONSULTANT shall provide a written
assessment of the time request. CONSULTANT shall negotiate schedule
adjustments with the CONTRACTOR.
10. Field Quality Control (Inspectional Services)
a. CONSULTANT shall provide field observation services to monitor compliance
with the Contract Documents.
i. CONSULTANT staff shall have sufficient training and experience
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regarding the specific construction activities being performed by
CONTRACTOR.
1) CONSULTANT shall provide staff proportional as what is
required to observe CONTRACTOR’s activities.
2) CONSULTANT shall provide subconsultant(s) as needed to
observe specialty work or increase staffing levels (see Special
Inspections).
3) CITY may set an allowance on a task order specific basis for the
increased cost only of inspectional services if required during
off hours and on weekends. Consultant to provide sufficient
hours to cover all inspectional services anticipated at standard
rates.
b. Reporting
i. CONSULTANT shall prepare daily inspection reports documenting
observed field activities, field crews, CONTRACTOR equipment, and
field problems. CONSULTANT shall collect and compile CONTRACTOR
daily reports each week.
ii. CONSULTANT shall provide and maintain photographs of field activities
for status monitoring of the project.
iii. CONSULTANT shall monitor record documents (redline drawings) on a
bi-weekly basis to determine if they are being maintained by the
CONTRACTOR and are in substantial conformance with the
CONSULTANT’s information/observations.
iv. CONSULATNT shall prepare a monthly report to include major work
performed, outstanding issues, project photographs, schedule status,
pending and executed change orders summary, and quality issues. This
report shall also be part of CONSULTANT’s monthly progress payment
report.
c. Special Inspections
i. CONSULTANT shall furnish the materials testing and special inspections
required to be performed for the Project. Special Inspection and
materials testing includes, but not limited to:
1) Coating inspection
2) Special inspections as listed in the project specific design
drawings and specs.
ii. CONSULTANT shall schedule and coordinate the material testing
services and have responsibility for the specialty inspections and
testing services.
11. System Outages
a. CONSULTANT shall review and evaluate the CONTRACTOR’s system outage
requests (SOR) in conjunction with the CITY. CONSULTANT shall assess the
reasonableness of the duration of the requested shutdown.
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b. The SORs shall be reviewed and approved at least two weeks ahead of the
actual outage/shutdown.
c. CONSULTANT shall facilitate/coordinate shutdowns with the CONTRACTOR,
CITY and ENGINEER.
i. CITY is responsible for reviewing and approving system outage request
and duration, confirming the outage is properly planned,
implementing the outage, and bringing services back online after the
outage.
12. Means and Methods of Construction
a. CONSULTANT shall not direct the means and methods of construction.
CONTRACTOR shall be solely responsible for the means and methods of
construction. Concerns or suggestions regarding the CONTRACTOR’s means
and methods shall be communicated to CITY and ENGINEER.
13. Safety
a. CONSULTANT shall comply with appropriate regulatory, project and CITY
codes in addition to CONSULTANT’s Health and Safety Plan regarding
necessary safety equipment and procedures used during performance of the
CONSULTANT’s work and shall take necessary precautions for safe operation
of the CONSULTANT’s work, and the protection of the CONSULTANT’s
personnel from injury and damage from such work.
b. Neither the professional activities of the CONSULTANT, nor the presence of
the CONSULTANT’s employees or sub-consultants at the construction/project
site, shall relieve the CONTRACTOR and any other entity of their obligations,
duties and responsibilities including, but not limited to, construction means,
methods, sequence, techniques or procedures necessary for performing,
superintending, or coordinating their work in accordance with the Contract
Documents, City codes, and any health or safety precautions required by
pertinent regulatory agencies. CONSULTANT and its personnel have no
authority to exercise any control over any CONTRACTOR or other entity or
their employees in connection with their work or any health or safety
precautions.
14. Spare Parts
a. CONSULTANT shall prepare a list of required spare parts from the
specifications and vendor O&M Manuals or recommended spare parts lists.
b. CONSULTANT shall inventory spare parts as they are delivered by the
CONTRACTOR and transfer spare parts to the CITY. The transfer of part shall
be documented via material transmittal, signed by Contractor, CONSULTANT
and CITY.
15. Operation and Maintenance (O&M) Manuals
a. CONSULTANT shall prepare a list of anticipated O&M Manuals and track the
submittal and review process in the online document tracking system.
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b. CONSULTANT shall verify that the submitted O&M manuals are the correct
and latest version, and that the ‘lessons learned’ and notes taken during
startup and commissioning are included in the O&M manuals. CONSULTANT
shall coordinate delivery of final hardcopies from CONTRACT to CITY.
16. Testing and Training
a. CONSULTANT shall coordinate training requirements and activities.
b. ENGINEER shall provide design assistance during testing operations.
c. CONSULTANT shall work with CONTRACTOR, ENGINEER and CITY on the
development of the Testing and Startup Plan.
d. CONSULTANT shall provide oversight and administration of training and
testing.
e. CONSULTANT shall coordinate the training with the CONTRACTOR, vendor
and CITY staff. Some equipment may need training for third party personnel
with whom the CITY may be contracting with. CITY will provide the vendor
contact information for CONSULTANT to coordinate with. Trainings shall be
coordinated so that key CITY staff can attend; schedule shall accommodate
key CITY staff/ Plant operations shifts. Multiple training sessions for day shift
and night shift operators may be required.
f. CONSULTANT shall observe start-up and testing as the CITY’s representative
and maintain copies of start-up documentation in an organized binder that
shall be turned over at the end of the project.
g. CONSULTANT shall attend training sessions and collect attendance sheets
and copies of training material.
h. If required by CITY, CONSULTANT shall coordinate production quality audio
and video recording and editing of training sessions to be used for future
training sessions. The final digital copy shall be labeled and have an
introduction that indicates the type of training, the process area, the
equipment name, the vendor(s) / manufacturer(s) if applicable, the date,
and the CONTRACTOR.
i. Refer CITY’s Demonstration and Training Standards for more details.
17. Corrective Work Item List
a. The CONSULTANT shall prepare and maintain a Corrective Work Item list
(CWL) with the input from the CITY and ENGINEER.
b. CONSULTANT shall confirm that the items identified in the CWL are
completed in preparation for issuance of Substantial Completion Certificate
(SCC).
c. CONSULTANT shall prepare the SCC for execution by the CITY and the
CONTRACTOR when the Corrective Work Items are completed to the CITY’s,
ENGINEER’s and The CONSULTANT’s satisfaction.
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Amendment No. 3 to
Contract C21176592C for
Construction
Management and
Inspection Services
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Task 3: Project Closeout Phase
1. Punch List and Final Inspection
a. Punch List
i. CONSULTANT shall in conjunction with the CITY prepare the list of
outstanding deficiencies.
ii. CONSULTANT shall prepare and issue the Punch List(s) from the list of
deficiencies.
iii. CONSULTANT shall have primary responsibility for verifying that the
Punch List work is complete.
b. Final Inspection
iv. CONSULTANT shall have primary responsibility for conducting the
final inspection.
1) CITY will participate and provide input on the final inspection.
2) ENGINEER will provide design input on final inspection items if
determined necessary by the CITY.
3) CONSULTANT shall be responsible for oversight and review of
the final inspection.
2. Warranty Coordination
a. CONSULTANT shall maintain a warranty file in the online document tracking
system. All warranty documentation shall be handed off to the CITY at
conclusion of the contract.
3. Project Closeout
a. CONTRACTOR shall furnish record documents, which the CONSULTANT shall
review and transmit to ENGINEER for conforming and final issuance to CITY.
b. CONSULTANT shall prepare necessary CITY documentation recommending
acceptance of the completed work by the CITY.
c. CONSULTANT shall turnover project documentation to the CITY in an orderly
manner and in a timely manner after completion of the project and all Punch-
list activities. The CONSULTANT shall retain all change event files at the end of
the project. The CITY shall have the right to request review and/or copies of
the change events files.
Work Order No. 1A: Milestone Schedule of Performance
TASK # MILESTONES
NUMBER OF WEEKS TO
COMPLETION FROM WORK
ORDER #1A NOTICE TO
PROCEED (NTP)
NO LATER THAN
DATE
Task 1 General Requirements 37 Weeks 6/30/2024
Task 2 Construction Phase 24 Weeks 3/31/2024
Task 3 Project Closeout 37 Weeks 6/30/2024
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Attachment A -
Amendment No. 3 to
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Management and
Inspection Services
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Work Order No. 1A: Milestone Compensation Schedule
TASK # MILESTONES NOT TO EXCEED
AMOUNT
Task 1 General Requirements $8,000
Task 2 Construction Phase $186,600
Task 3 Project Closeout $52,100
Sub-total Basic Services $246,700
Reimbursable Expenses $0
Total Basic Services and Reimbursable Expenses $246,700
Additional Services (per Section 4) (Not to Exceed) $141,838
Maximum Total Compensation $388,538
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Amendment No. 3 to
Contract C21176592C for
Construction
Management and
Inspection Services
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EXHIBIT “B”
SCHEDULE OF PERFORMANCE, AMENDMENT NO. 3
(AMENDED, REPLACES PREVIOUS)
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements.
(This provision only applies if checked and only applies to on-call agreements per Section 1 or
agreements with Additional Services per Section 4.)
The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1
(Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional
Services, provided in all cases that the schedule of performance shall fall within the term as provided in
Section 2 (Term) of this Agreement.
WORK ORDER #2
Tasks 1-5 completed within 125 Weeks from the Notice to Proceed for Work Order 2, as detailed in the
Milestone Schedule of Performance attached to Work Order #2 (Amendment No.1).
WORK ORDER #3
Tasks 1-5 completed within 276 Weeks from the Notice to Proceed for Work Order 3, as detailed in
the Milestone Schedule of Performance attached to Work Order #3 (Amendment No.2).
WORK ORDER #1A
Tasks 1-3 completed within 37 Weeks from the Notice to Proceed for Work Order 1A, as detailed in
the Milestone Schedule of Performance attached to Work Order #1A (Amendment No.3).
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Attachment A -
Amendment No. 3 to
Contract C21176592C for
Construction
Management and
Inspection Services
Item 4: Staff Report Pg. 22 Packet Pg. 43 of 152
Vers.: Aug. 5, 2019
Page 18 of 19
EXHIBIT “C”
COMPENSATION, AMENDMENT #3
(AMENDED, REPLACES PREVIOUS)
CITY agrees to compensate CONSULTANT for on-call, as-needed, time-limited project
support services performed in accordance with the terms and conditions of this Agreement,
and as set forth in a specific Task Order budget schedule. Compensation shall be calculated
based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount
for each task set forth in a specific Task Order.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any
of the tasks or categories within a specific Task Order, provided that the total compensation
for the Services, including any specified reimbursable expenses, and the total compensation
for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts
set forth in Section 4 of this Agreement.
CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and
Additional Services (if any, per Section 4), within this/these amount(s). Any work performed
or expenses incurred for which payment would result in a total exceeding the maximum
amount of compensation set forth in this Agreement shall be at no cost to the CITY.
REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative
support time/overtime, information systems, software and hardware, photocopying,
telecommunications (telephone, internet), in-house printing, insurance and other ordinary
business expenses, are included within the scope of payment for Services and are not
reimbursable expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be
reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be
reimbursed are: NONE up to the not-to-exceed amount of $0.00.
WORK ORDER #2
Compensation as detailed in the Milestone Compensation Schedule attached to Work
Order #2., Not to Exceed:
Total Basic Services and Reimbursable Expenses $549,315
Additional Services (per Section 4) (Not to Exceed) $54,932
Maximum Total Compensation $604,247
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Attachment A -
Amendment No. 3 to
Contract C21176592C for
Construction
Management and
Inspection Services
Item 4: Staff Report Pg. 23 Packet Pg. 44 of 152
Vers.: Aug. 5, 2019
Page 19 of 19
WORK ORDER #3
Compensation as detailed in the Milestone Compensation Schedule attached to Work
Order #3., Not to Exceed:
Total Basic Services and Reimbursable Expenses $7,488,201
Additional Services (per Section 4) (Not to Exceed) $748,820
Maximum Total Compensation $8,237,021
WORK ORDER #1A
Compensation as detailed in the Milestone Compensation Schedule attached to Work
Order #1A., Not to Exceed:
Total Basic Services and Reimbursable Expenses $246,700
Additional Services (per Section 4) (Not to Exceed) $141,838
Maximum Total Compensation $388,538
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Attachment A -
Amendment No. 3 to
Contract C21176592C for
Construction
Management and
Inspection Services
Item 4: Staff Report Pg. 24 Packet Pg. 45 of 152
City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: Planning and Development Services
Meeting Date: October 23, 2023
Report #:2306-1690
TITLE
PUBLIC HEARING: Adoption of an Ordinance Amending the Stanford University Medical Center
(SUMC) Development Agreement Adjusting the Timeline for Achieving the SUMC Alternative
Mode Share Targets and Adoption of a Resolution Updating the Mitigation Monitoring and
Reporting Program Accordingly. Zoning District: HD (Hospital District). Environmental Review:
Project is Consistent with the 2011 Certified Environmental Impact Report (EIR) for the SUMC
Facilities Renewal and Replacement Project.
RECOMMENDATION
Staff recommends that City Council:
1. Find the proposed amendment to the SUMC Development Agreement consistent with the
Certified EIR for the SUMC Facilities Renewal and Replacement Project;
2. Adopt an Ordinance (Attachment A) approving Amendment No. 1 to the SUMC
Development Agreement; and
3. Adopt a Resolution (Attachment B) updating Mitigation Measure TR-2.3 to be Consistent
with the Development Agreement Amendment Number 1; and
EXECUTIVE SUMMARY
Stanford Hospital and Clinics, Lucile Salter Packard Children’s Hospital, Stanford University, and
the City of Palo Alto entered into a Development Agreement in 2011 that allowed Stanford
University Medical Center (SUMC) to remodel existing facilities and to construct new facilities at
their campuses in Palo Alto.
The existing SUMC Development Agreement (DA) and the associated SUMC Facilities Renewal
and Replacement Project EIR Mitigation, Monitoring and Reporting Program (MMRP) requires
the implementation of a Transportation Demand Management (TDM) program. The TDM
program aims to reduce the number of SUMC employees that commute using single occupancy
vehicles in favor of alternative transportation modes, such as using public transit, bicycling,
walking, and telecommuting. The program includes alternative mode share targets for Target
Years 2018, 2021, and 2025.
Although SUMC was far exceeding these targets over the first nine years of the Development
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Agreement, it was unable to meet them during the COVID-19 pandemic, when social distancing
was emphasized. As a result, SUMC asserted that a delay in meeting the 2021 and 2025 mode
share targets should be permitted under the force majeure clause of the Development
Agreement.
To resolve the issues raised by the assertion of force majeure, SUMC and City staff propose the
attached amendment to the Development Agreement to adjust the timeline by which SUMC is
required to achieve their alternative transportation mode share targets. Because Mitigation
Measure TR-2.3 also describes the TDM program and contains the same alternative
transportation mode share targets, the City would also need to adjust the text in MMRP for
consistency.
Due to the COVID-19 pandemic effect on employee commute patterns and the time necessary to
recover previous high rates of alternative transportation mode usage, SUMC proposes to adjust
the timeline to meet their final milestone target of 35.1% of SUMC employees using alternative
transportation modes by 2028, instead of the current target year 2025. The FY 2022-2023
Alternative Mode Share Report showed that SUMC employee use of alternative transportation
modes was 25.6%, which is down from 33.8% in FY 2018-2019, but represents an increase from
the low of 19.9% in FY 2021-2022.
If the proposed Development Agreement amendment is not supported, SUMC‘s claim of
permitted delay under the force majeure clause and any associated amendments to the TDM
program would likely be resolved by a court.
BACKGROUND
Stanford Hospital and Clinics, Lucile Salter Packard Children’s Hospital, and Stanford University
applied to the City of Palo Alto for the opportunity to remodel existing facilities and to construct
new facilities. In 2011, after extensive public hearings and the completion of an Environmental
Impact Report, the City of Palo Alto certified the SUMC Facilities Renewal and Replacement
Project (SUMC Project) Final EIR containing Mitigation, Monitoring and Reporting Program
(MMRP),1 as well as approved a Development Agreement,2 Conditional Use Permit, Architectural
Review, Zoning Changes, and additional project entitlements.
The SUMC Project entitlements allow SUMC to construct and use up to 153,343 total square feet
of medical office/clinic buildings, as well as associated facilities, including up to 46,169 net new
square feet at the Hoover Medical Campus. At the Main SUMC site, SUMC can construct and use
1 Resolution No 9168, Resolution Certifying the Adequacy of the Final Environmental Impact Report, June 6, 2011:
https://www.cityofpaloalto.org/files/assets/public/city-clerk/resolutions/reso-9168.pdf. .
2 Ordinance No. 5124 Approving a Development Agreement, July 11, 2011:
https://www.cityofpaloalto.org/files/assets/public/city-clerk/ordinances/ord-5124.pdf.
Copy of Recorded SUMC Development Agreement: www.cityofpaloalto.org/files/assets/public/v/1/planning-amp-
development-services/current-planning/uploads-for-website/sumc/sumc-development-agreement_-
june_6_2011.pdf.
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up to 3,534,090 total square feet of hospital/clinic and research buildings, as well as associated
facilities and infrastructure improvements, including up to 1,265,272 net new square feet.
Although the SUMC Development Agreement is in place for thirty (30) years from the date of
execution, June 6, 2011, the SUMC Project Final EIR discussed completion of project buildout by
2025. This served to concentrate the analysis of potential environmental impacts of the proposed
SUMC development activity into a more compressed period of time. While SUMC originally
planned to complete project buildout by 2025, project buildout is now anticipated to continue
over the course of the next decade, including due to the impacts of the COVID-19 pandemic on
use of existing facilities and construction delays.
Development Agreement Alternative Transportation Mode Share Targets
In compliance with the Development Agreement and MMRP, SUMC implements a required TDM
program for its employees. The goal of the TDM program is to reduce the number of SUMC
employees that commute using single occupancy vehicles in favor of alternative transportation
modes, such as using public transit, bicycling, walking, and telecommuting. SUMC is required to
implement the TDM program, monitor the results, and prepare an annual Alternative Mode
Share report that informs the City as to whether SUMC has achieved its alternative mode share
targets. The Development Agreement and MMRP contain specific alternative mode share targets
for SUMC to meet. Table 1 outlines these specific alternative transportation mode share targets.
Table 1: Alternative Mode Share Targets in Development Agreement Section 5(c)(ix)
If a target is not met for any two consecutive years prior to 2025, the Development Agreement
requires SUMC to provide alternative transportation funding in annual payments to the City in
the amount of $175,000 per year until the earlier of the year 2025 or the year the applicable
interim mode split target is achieved, subject to a maximum of five annual payments. The annual
payment(s) must be used by the City for local projects and programs that encourage use of
alternative transportation mode uses or otherwise reduce peak period traffic trips in the
intersections impacted by the SUMC Project as identified in the EIR, including and not limited to
regional transportation systems and solutions.4
3 SUMC Development Agreement Section 5(c )(ix) utilized “TBD” at the time of execution of the SUMC
Development Agreement in 2011, as the Baseline Alternative Mode Share Report would not be submitted to the
City until July 5, 2012.
4 SUMC Development Agreement Section 5(c)(ix): https://www.cityofpaloalto.org/files/assets/public/v/1/planning-
amp-development-services/current-planning/uploads-for-website/sumc/sumc-development-agreement_-
june_6_2011.pdf #page=28.
Target Year Alternative Mode Share Percentage Change
EIR Baseline (2006)22.9%NA
Project Approval Baseline (2011)3 TBD TBD
2018 30%7.1%
2021 33%+3%
2025 35.1%+2.1%
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If SUMC has not demonstrated substantial achievement of the 35.1% target by 2025, the
Development Agreement requires SUMC to make a lump sum payment of $4.0 million to the City
for use in the same manner as the annual payments, though there are some allowable expansions
in use outlined in the Development Agreement, such as contributions toward regional
transportation projects. If required, the Development Agreement also allows for the funds to be
used by the City to offset SUMC employee trips through citywide trip reduction.5 The City would
need to identify any capital projects and program enhancements for which the funds may be
applied.
A comparison of Table 1 with Figure 1 shows that SUMC achieved and exceeded their alternative
transportation mode share targets each year between 2011 and 2019. SUMC achieved their 2021
alternative mode share target early, as already 33% of SUMC employees were commuting by
alternative transportation modes by 2013. SUMC was also able to achieve their 2025 alternative
mode share target early, as over 35.1% of SUMC employees were already commuting by
alternative transportation modes in 2015, 2016, 2017, and 2018.
5 SUMC Development Agreement Section 5(c)(ix)(B):
https://www.cityofpaloalto.org/files/assets/public/v/1/planning-amp-development-services/current-
planning/uploads-for-website/sumc/sumc-development-agreement_-june_6_2011.pdf%20#page=29.
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Figure 1: SUMC Hospital Employee Commute Mode Share, 2011-2023*
* The percentages shown in Figure 1 reflect the percentage of SUMC employees who drive alone for their commute
versus the percentage of SUMC employees that use alternative transportation modes, as reflected in the SUMC
Alternative Mode Share Reports submitted to the City in May of each corresponding Target Year. The SUMC Parties
were conditionally approved to delay reporting for Fiscal Year 2019-2020, which also considered Target Year 2020.
Source: SUMC Alternative Mode Share Report FY 2022-2023.
Alternative Mode Share Target Compliance 2020 through 2023
As summarized in Attachment C and despite SUMC’s ongoing implementation of TDM program
activities, SUMC indicates COVID-19 pandemic circumstances eventually resulted in SUMC’s
inability to achieve the alternative transportation mode share targets of both 30% (2018 target)
and 33% (2021 target) in 2021, 2022, and 2023.
In 2021, the alternative mode share rate for SUMC decreased to 28.8% between use of
alternative modes versus driving alone, largely due to ongoing pandemic conditions. SUMC
identified that the share of Caltrain riders dropped most significantly (-6.5%), followed by the
carpools (-2.6%), and other forms of transit (-3%). SUMC observed modest increases in other
alternative transportation modes, including in remote work and bicycling, but these increases
were not sufficient to offset the decrease in transit usage and carpools. In 2022, despite
continuing to implement all TDM programs, as well as enhancing communications and
promotions, the SUMC parties found that the alternative mode share target of 33% was again
not met. It had decreased to 19.9% from 28.8% in the previous year. In 2023, use of alternative
transportation modes increased back to 25.6%, but remains below targets.
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U.S. Health and Human Services Department State of Public Health Emergency Declaration
While the general population refers to various Federal, State, Santa Clara County, and City of Palo
Alto public health emergency declarations, SUMC also follows the U.S. Health and Human
Services Department (HHS) declarations regarding any identified Public Health Emergencies
(PHE). HHS issued the first declaration of a Public Health Emergency regarding COVID-19 on
January 8, 2020. Subsequently, HHS issued many renewals of this declaration. On May 11, 2023,
HHS released a statement declaring the end of the COVID-19 Public Health Emergency.
Development Agreement Amendment Processing Requirements
City of Palo Alto requirements for preparation of development agreements and development
agreement amendments are set forth in City Council Resolution No. 7104.6 This resolution allows
for amendments to development agreements through mutual consent of all parties or their
successors in interest. Any amendment is considered a legislative act to be approved by
ordinance and is subject to referendum. Resolution No. 7104 also states that a development
agreement or amendment shall not be approved unless City Council finds that it is consistent
with the City’s Comprehensive Plan and any applicable specific plan.
ANALYSIS
The SUMC amendment application (22PLN-00302)7 represents the first proposed amendment to
the original SUMC Development Agreement.
Proposed SUMC Development Agreement Amendment
Anticipating the ongoing influence of the COVID-19 pandemic on its ability to achieve the
alternative transportation mode share targets, SUMC proposed an amendment to the original
Development Agreement. SUMC suggests that the amendment language would provide clarity
as to how to implement the existing alternative transportation mode share targets and penalty
payments as written in Section 5(c)(ix), given their claim of the applicability of Section (18)(c)
Force Majeure in the Development Agreement.8
By filing the Development Agreement amendment application, there is an opportunity to create
mutual, locally derived implementation clarity regarding present and future compliance with
Development Agreement 5(c)(ix) Monitoring of TDM Programs and Section 18(c) Force Majeure,
rather than taking this topic to a court for resolution.
6 City of Palo Alto City Council Resolution 7104, June 8, 1992:
https://www.cityofpaloalto.org/files/assets/public/city-clerk/resolutions/reso7104.pdf.
7 SUMC Development Agreement Amendment Application 22PLN-00302, received September 7, 2022:
www.cityofpaloalto.org/files/assets/public/v/1/planning-amp-development-services/current-planning/uploads-
for-website/sumc/sumc-development-agreement-application-22pln-00302_received_september_7_2022.pdf.
8 Section 18(c) Force Majeure provides that performance by SUMC or the City is excused during any period of
“Permitted Delay,” such as when a performance delay occurs due to circumstances beyond the reasonable control
of a party to the SUMC Development Agreement. Examples of circumstances beyond reasonable control of a party
include (a), acts of god, including without limitation earthquakes, floods, fire, and other natural calamities, (b) civil
commotion; (c) riots or terrorist acts; (d) strikes or other forms of material labor disputes; (e) shortages of
materials or supplies; and (f) vandalism.
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The proposed amendment language responds to the following time factors:
•Claimed period of “Permitted Delay;”
•Duration of the HHS COVID-19 Public Health Emergency declaration; and
•Time anticipated as necessary for alternative transportation modes to return to frequent
usage levels.
SUMC proposes amendment language focused only in the following two areas of the
Development Agreement:
•Section 1 Definitions, and
•Section 5(c)(ix) Monitoring of TDM Programs.
New Definition Terms and Adjusted Timeline
As shown in Table 3, the proposed amendment language removes the specific target years
“2021” and “2025” in Development Agreement Section 5(c)(ix) Monitoring of TDM Programs and
replaces these with two new terms, “Second Interim Target Year” and “Final Target Year,”
respectively.
These new terms would be added to the Development Agreement in Section 1 Definitions:
•“Second Interim Target Year” to be defined as the year that is one year after the expiration
or termination of the United States Secretary of Health and Human Services’
determination, under Section 319 of the Public Health Service Act or any successor
statute, that a public health emergency exists due to the COVID-19 pandemic, provided
that if such determination expires or is terminated on or after July 1 in a given year, the
Second Interim Target Year means the year following one year after the determination
expires or is terminated.
•“Final Target Year” to be defined as the year that is four years after the “Second Interim
Target Year.”
Table 3: Proposed Amendments to Alternative Mode Share Targets
A comparison of Table 1 and Table 3 shows that these new terms still retain the existing four-
year timespan for achieving the 35.1% alternative transportation mode share target for
employee commutes.
Target Year Alternative Mode Share Percentage Change
EIR Baseline (2006)22.9%NA
Project Approval Baseline (2011)TBD TBD
2018 30%7.1%
2021 Second Interim Target Year 33%+3%
2025 Final Target Year 35.1%+2.1%
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Given the expiration of the HHS COVID-19 Public Health Emergency on May 11, 2023:
•“Second Interim Target Year” is interpreted as 2024 and the SUMC employee commute
results would appear in the SUMC Alternative Mode Share Report FY 2023-2024,
anticipated to be received by the City by June 2024; and
•“Final Target Year” is interpreted as 2028 and the SUMC employee commute results
would appear in the SUMC Alternative Mode Share Report FY 2027-2028, anticipated to
be received by the City in May or June 2028, which is four years after the “Second Interim
Target Year.”
Inclusion of Cost Escalator and Spending Flexibility in Development Agreement Language
Upon review of the SUMC proposed amendment language, staff identified the need to account
for the increased costs of implementing alternative transportation programs. Therefore, SUMC
submitted amendment language for a cost escalator. The cost escalator uses the Consumer Price
Index (CPI) for the San Francisco Bay Area starting from the year 2025 for both the $175,000
Annual Payment provision and the $4,000,000 lump sum payment provision in the Development
Agreement.9
Staff also identified the merit of adding further clarity in how the $175,000 Annual Payments
could be spent by the City. Therefore, staff included the amendment language shown below in
underline:
Section 5(c)(ix) Monitoring of TDM programs:
“…The alternative transportation funding must be used by the City for local
projects and programs that encourage use of alternative transportation mode uses
or otherwise reduce peak period traffic trips in the intersections impacted by the
Project as identified in the Project EIR, including but not limited to citywide and
regional transportation systems and solutions. The City of Palo Alto should
consider transportation systems and solutions that also help to reduce traffic in
the City of Menlo Park….”
The underlined text is consistent with the text already in Section 5(c)(ix)(B) Final Target Year
Mode Split Penalty which allows the $4,000,000 lump sum payment to be used for citywide trip
reduction to offset SUMC employee commutes, if necessary.
The City and SUMC can consider Development Agreement amendments irrespective of the SUMC
notice of intent to claim a “Permitted Delay” under Section 18(c) Force Majeure. An amendment
can be made if the City finds that the amendment is consistent with the City’s Comprehensive
Plan and any applicable specific plan. City Council can consider the proposed amendment based
upon its merits, regardless of any agreement or disagreement of whether the COVID-19
9 SUMC Development Agreement Amendment Application 22PLN-00302, updated February 16, 2023:
www.cityofpaloalto.org/files/assets/public/v/1/planning-amp-development-services/current-planning/uploads-
for-website/sumc/sumc-development-agreement-application-22pln-00302_updated_february_16_2023.pdf.
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pandemic qualifies as a condition under the Section 18(c) Force Majeure. Toward this end, staff
prepared a draft ordinance (Attachment A) and a draft resolution (Attachment B), consistent with
City Council Resolution No. 7104, that contains the Development Agreement amendment
language discussed in this report.
Alternative Actions
City Council could consider the following alternative actions:
•Deny the application. This would likely result in a court determining how to resolve the
claim of permitted delay due to Force Majeure.
•Consider and propose amendment language different than what is in the draft ordinance
(Attachment A). In this case, Council could suggest this language and continue the
amendment to a future Council meeting for staff and SUMC to analyze the language.
•Consider requesting that SUMC withdraw the SUMC Development Agreement
amendment application pending the results of additional mode share reports. This
alternative would reflect the desire for more time to allow for the percentage of
alternative transportation commutes to continue to increase and meet the 35.1% target
prior to or by the 2025 monitoring year. This would still leave an unresolved question,
however, of whether SUMC would be required to make the $175,000 penalty payments
for missing the targets, unless Council could direct staff to delay enforcement of the
penalty. If this is not addressed, the issue of permitted delay due to Force Majeure may
still be submitted to a court.
POLICY IMPLICATIONS
The SUMC Project was found to be consistent with the Comprehensive Plan in effect at the time
of approval. Staff also referenced the current Comprehensive Plan to identify if consistency
findings could also be made or if there were any inconsistencies. At the time of approval,
Mitigation Measure TR-2.3 was important because it required TDM program implementation to
reduce single-occupancy vehicle trips and reduce greenhouse gas emissions. This remains true at
present. SUMC implements one of the most detailed and extensive TDM programs in the City
and the proposed Development Agreement Amendment Number 1 does not change this. Draft
findings are included in the draft ordinance (Attachment A) regarding consistency between the
Comprehensive Plan and the proposed Development Agreement amendment language.
FISCAL/RESOURCE IMPACT
As previously discussed, due to the claim by SUMC of a “Permitted Delay” under SUMC
Development Agreement Section 18(c) Force Majeure, the City deferred seeking the $175,000
Annual Payments that are otherwise due for Fiscal Year 2021-2022 and Fiscal Year 2022-2023.
Therefore, it could appear that the resource impact of approving the SUMC Development
Agreement amendment would be $350,000 not being available for City expenditure on
alternative transportation programs in accordance with Section 5(c)(ix). However, staff
recommends approval of SUMC Development Agreement Amendment Number 1. In turn, this
would adjust the timeframe for achievement of the alternative mode share targets. The two
$175,000 Annual Payments would not be due and there would be no resource impact to the City
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as a result; the $175,000 Annual Payments and the $4,000,000 Lump Payment would only be due
if SUMC missed applicable target years in the future.
TIMELINE
If City Council takes action to approve the proposed ordinance, the second reading is tentatively
scheduled for November 6, 2023. The ordinance would become effective on the 31st day after
the date of its adoption, tentatively December 7, 2023.
STAKEHOLDER ENGAGEMENT
Notification of the filing of this SUMC Development Agreement amendment application was sent
to properties within 600 feet of lands within 600 feet of the Hospital (HD) Zoning District when
the application was filed in 2022. Staff has not received any public comments on the proposed
amendment. Notification of this agenda item was placed in the newspaper on October 13, 2023.
ENVIRONMENTAL REVIEW
Staff analyzed if the SUMC Development Agreement Amendment Number 1 would substantially
change the SUMC Project, as well as if the amendment would result in any new potentially
significant environmental impacts or a substantial increase in any previously identified potential
environmental impacts. The adjustments to the alternative transportation mode share target
timeline did not substantially change the SUMC Project; all original project components and
mitigation measures would remain in effect. The SUMC Development Agreement, SUMC
Facilities Renewal and Replacement Project Environmental Impact Report, and MMRP analyzed
and anticipated that some circumstances might be beyond the control of SUMC or the City. The
proposed adjustments to the alternative transportation mode share target timeline do not
relieve SUMC of their requirements to implement their TDM Program activities on an ongoing
basis, nor increase previously identified transportation impacts or greenhouse gas emissions.
ATTACHMENTS
Attachment A: Draft Ordinance - SUMC Development Agreement Amendment Number 1
Attachment B: Draft Resolution - Mitigation Measure TR-2.3 Consistency with SUMC
Development Agreement Amendment Number 1
Attachment C: SUMC Alternative Mode Share Target Year Compliance Status Summary - 2020
through 2023
APPROVED BY:
Jonathan Lait, Planning and Development Services Director
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Ordinance No. ____
Ordinance of the Council of the City of Palo Alto Approving The First
Amendment to the Stanford University Medical Center Development
Agreement Dated June 6, 2011
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION 1. Findings and Determinations
A. The City of Palo Alto (City) and Stanford Hospital and Clinics, Lucile Salter Packard
Children’s Hospital, and the Board of Trustees of the Leland Stanford Junior University (“SUMC
Parties”) are parties to a certain Development Agreement dated June 6, 2011 (the "SUMC
Development Agreement" or "Agreement"), concerning the replacement, retrofit, and
enhancement of Stanford University Medical Center facilities in Palo Alto,
B. Section 65868 of the California Government Code and section 8(b) of Palo Alto
Resolution No. 7104 (June 8, 1992) provide that a development agreement may be amended by
mutual consent of the parties to the agreement.
C. Pursuant to these provisions, Section 15 of the Agreement provides that the City and
SUMC Parties may amend the Agreement from time to time by mutual consent.
D.Section 5, subdivision (c)(ix) of the Agreement, Monitoring of TDM Programs, sets forth
a series of transportation demand management (TDM) program targets for the share of
employees using alternative modes of travel (“Alternative Mode Share Targets”). These
provisions include penalties for failure to meet the Alternative Mode Share Targets.
E. Section 18, subdivision (c), of the Agreement, Force Majeure, provides that
performance of an obligation under the Agreement may be excused during any period of
“permitted delay” caused by events beyond the reasonable control of a party.
F. On June 10, 2022, SUMC Parties provided a notice of intent to claim a permitted delay
in compliance with the Alternative Mode Share Targets as a result of the COVID-19 pandemic.
G.The City and SUMC Parties wish to adopt the First Amendment to the Agreement
(“Amendment”) in light of the SUMC Parties’ claim of permitted delay.
H.The City Council, as the planning agency pursuant to Government Code Section 65867,
has given notice of intention to consider the Amendment and has conducted a public hearing on
the Amendment.
I. The City Council that the provisions of the Agreement and the Amendment are
consistent with City’s Comprehensive Plan.
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Ordinance - SUMC
Development Agreement
Amendment Number 1
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SECTION 2. The City Council hereby approves the First Amendment to the
Development Agreement between the City of Palo Alto and Stanford Hospital and Clinics, Lucile
Salter Packard Children’s Hospital, and the Board of Trustees of the Leland Stanford Junior
University, a copy of which is attached hereto as Exhibit "A", and authorizes the Mayor to execute
the Agreement on behalf of the City.
SECTION 3. The City Clerk is directed to cause a copy of the development agreement
to be recorded with the County Recorder not later than ten (10) days after it becomes effective.
SECTION 4. Because the amendment implements a permitted delay contemplated by
the Agreement, and because the permitted delay will not result in any new, significant
environmental impacts, the City Council finds that the potential environmental impacts of the
Amendment were adequately studied and addressed in the Final Environmental Impact Report
for the Stanford University Medical Center Facilities Renewal and Replacement Project, which
was certified by Resolution No. 9168.
SECTION 5. This ordinance shall be effective upon the thirty-first (31st) day after its
adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning and Development Services
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Ordinance - SUMC
Development Agreement
Amendment Number 1
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This document is recorded for the
benefit of the City of Palo Alto
and is entitled to be recorded
free of charge in accordance with
Section 6103 of the Government Code.
After Recordation, mail to:
Office of the City Attorney
City of Palo Alto
250 Hamilton Ave
Palo Alto, CA 94301
AMENDMENT TO DEVELOPMENT AGREEMENT
This AMENDMENT TO THE DEVELOPMENT AGREEMENT (“Amendment”) is
entered into as of this ____ day of ___________, 2023, by and between the CITY OF PALO
ALTO, a chartered city and municipal corporation of the State of California (“City”);
STANFORD HEALTH CARE, formerly known as Stanford Hospital and Clinics, a California
nonprofit public benefit corporation (“SHC”); LUCILE SALTER PACKARD CHILDREN’S
HOSPITAL AT STANFORD, a California nonprofit public benefit corporation (“LPCH”); and
THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY, a
body having corporate powers under the laws of the State of California (“University,” and
together with SHC and LPCH, collectively, the “SUMC Parties”).
RECITALS
THIS AMENDMENT is entered into on the basis of the following facts, understandings,
and intentions of the parties:
A.City and the SUMC Parties entered into that certain Development Agreement,
dated June 6, 2011, and recorded in the Official Records of Santa Clara County on
____________________ as Document Number ___________ (“Development Agreement”).
B.On June 13, 2022, the SUMC Parties provided City, under Section 18(c) of the
Development Agreement, with notice of an intent to claim a Permitted Delay (“Notice”) toward
achievement of (1) all applicable interim alternative mode share targets and (2) the 2025
alternative mode share target of 35.1 percent, both of which are identified in Section 5(c)(ix) of
the Development Agreement. The SUMC Parties’ Notice explained why the ongoing COVID-19
pandemic has caused the Hospitals to be unable to achieve, on schedule, the interim and 2025
alternative mode share targets.
C.City and the SUMC Parties wish to amend the Development Agreement as set
forth in this Amendment to adjust the timing of the SUMC Parties’ obligations under Section
5(c)(ix) of the Development Agreement, to align with the anticipated period of Permitted Delay
resulting from the COVID-19 pandemic.
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Ordinance - SUMC
Development Agreement
Amendment Number 1
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D.All proceedings necessary for the valid adoption and execution of this Second
Amendment have taken place in accordance with California Government Code sections 65864
through 65869.5, the California Environmental Quality Act, and City Resolution No. 7104 (June
8, 1992).
E.The City’s Planning and Transportation Commission and City Council have given
notice of intention to consider this Amendment and have conducted public hearings on this
Amendment, and the City Council has found that the Development Agreement, as amended by
this Amendment, is consistent with the City’s Comprehensive Plan.
AGREEMENT
NOW, THEREFORE, City and the SUMC Parties agree as follows:
1.New Definition of “Final Target Year.” A new Section 1(ss) is added to the Development
Agreement to read as follows:
(ss) Final Target Year.
“Final Target Year” means the year that is four years after
the Second Interim Target Year.
2.New Definition of “Second Interim Target Year.” A new Section 1(tt) is added to the
Development Agreement to read as follows:
(tt) Second Interim Target Year.
“Second Interim Target Year” means the year that is one
year after the expiration or termination of the United States
Secretary of Health and Human Services’ determination, under
Section 319 of the Public Health Service Act or any successor
statute, that a public health emergency exists due to the COVID-19
pandemic, provided that if such determination expires or is
terminated on or after July 1 in a given year, the Second Interim
Target Year means the year following one year after the
determination expires or is terminated.
3.Updated Requirement for Monitoring of TDM Programs. Section 5(c)(ix) of the
Development Agreement is amended and restated in its entirety to read as follows:
(ix)Monitoring of TDM programs.
The City and the SUMC Parties acknowledge that because use of transit by employees of
the Hospitals is voluntary and may be influenced by a number of factors outside of the
reasonable control of the Hospitals, such as gasoline prices, costs and availability of alternative
transit, housing costs and availability, and personal preferences of employees, the Hospitals
cannot guarantee the results of their TDM programs. However, the Hospitals shall monitor the
success of their TDM programs from the date of the Initial Project Approvals through the Life of
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Ordinance - SUMC
Development Agreement
Amendment Number 1
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157750738.2
the Project. The following interim targets shall be used to measure the progress toward meeting
the desired mode split by the Final Target Year. These interim targets assume that in the early
phases of implementation, there may be larger shifts to alternative modes than the shifts that may
occur in later phases of the TDM program enhancement. For purposes of calculating alternative
mode share, any mode that does not constitute driving in a single-occupant vehicle to and from
the work site shall be considered an “Alternative Mode,” including working remotely from
home.
Target Year Alternative Mode Share Percent Change
EIR Baseline
(2006) 22.9% NA
2018 30 % 7.1 %
Second Interim
Target Year
33 % +3 %
Final Target Year 35.l %+2.1 %
Excluding the period from 2022 through the year prior to the Second Interim Target
Year, during which time this provision shall not apply, if the applicable interim target is not met
for any two consecutive years prior to the Final Target Year, the Hospitals shall provide
alternative transportation funding to the City in Annual Payments in the amount of One Hundred
Seventy-Five Thousand Dollars ($175,000) per year, as adjusted to reflect the change in the San
Francisco Area Consumer Price Index described in the following sentence, until the earlier of the
Final Target Year or the year the applicable interim mode split target is achieved, subject to a
maximum of five Annual Payments. Adjustments for inflation shall be calculated as follows: The
number of years between 2025 and the Final Target Year shall be calculated, and the change in
the San Francisco Area Consumer Price Index shall be calculated over an equivalent number of
years prior to January 1 of the year the Annual Payment is due. The alternative transportation
funding must be used by the City for local projects and programs that encourage use of
alternative transportation mode uses or otherwise reduce peak period traffic trips in the
intersections impacted by the Project as identified in the Project EIR, including but not limited to
citywide and regional transportation systems and solutions. The City of Palo Alto should
consider transportation systems and solutions that also help to reduce traffic in the City of Menlo
Park.
(A)Submission of Reports.
The Hospitals shall submit annual reports showing the current number of employees
employed over 20 hours per week; the number of employees using an alternative mode share as
documented by a study or survey to be completed by the Hospitals using a method mutually
agreeable to the City and Hospitals; and the efforts used by the Hospitals to attempt to achieve
the Alternative Mode targets.
Item 5
Attachment A - Draft
Ordinance - SUMC
Development Agreement
Amendment Number 1
Item 5: Staff Report Pg. 15 Packet Pg. 60 of 152
4
157750738.2
(B)Final Target Year Mode Split Penalty.
If by the Final Target Year, the Hospitals have not demonstrated substantial achievement
of the Thirty Five and One-Tenth Percent (35.1%) target modal split for alternative
transportation modes, the Hospitals shall make a lump sum payment of Four Million Dollars
($4.0 million), as adjusted to reflect the change in the San Francisco Area Consumer Price Index
from January 1, 2025 to January 1 of the Final Target Year, to the City for local projects and
programs that encourage and improve use of alternative transportation mode uses or otherwise
reduce peak period traffic trips in the intersections impacted by the Project as identified in the
Project EIR, including but not limited to regional transportation systems or solutions. The City
shall identify capital projects and program enhancements for which the funds may be applied.
Sample projects may include contributions towards regional transportation projects of interest to
the City and that are identified within the Valley Transportation Authority-Valley Transportation
Plan or other local planning documents. The City of Palo Alto should consider transportation
systems and solutions that also help to reduce traffic in the City of Menlo Park. If required, said
Four Million Dollar ($4,000,000) payment, as adjusted for inflation, shall constitute funds to be
used by the City to offset trips by Hospital employees through citywide trip reduction. The Four
Million Dollar ($4,000,000) payment, as adjusted for inflation, shall not relieve the SUMC
Parties of any of their other obligations under this Agreement, including but not limited to their
obligations to continue to attempt to achieve the 35.1% target modal split through
implementation of the GO Pass or substantially similar program, or a substitute program
mutually agreed upon by the SUMC Parties and the City’s Director of Planning and Community
Environment, which shall continue pursuant to the terms of this Agreement for fifty-one (51)
years from commencement of the GO Pass program. Further, the Hospitals shall continue to
implement an enhanced TDM program, monitor modal splits by Hospital employees, and strive
to maximize use of alternative commute modes by Hospital employees. In addition, the Hospitals
shall continue to meet with the City on a regular basis to identify potential improvements to the
enhanced TDM program. The City shall keep all payments received from the Hospitals pursuant
to this Section 5(c)(ix) in a separate account (the “TDM Fund”), to be used only for the purposes
described in this Section 5(c)(ix). The City shall deliver an annual report of disbursements from
the TDM Fund in accordance with Section 12 below.
---
4.Full Force and Effect. As amended by this Amendment, the Development Agreement
shall remain in full force and effect.
5.Counterparts. This Amendment may be executed in any number of identical counterparts,
and each counterpart shall be deemed to be an original document. All executed counterparts
together shall constitute one and the same document, and any counterpart signature pages may be
detached and assembled to form a single original document.
[Signatures on following page]
Item 5
Attachment A - Draft
Ordinance - SUMC
Development Agreement
Amendment Number 1
Item 5: Staff Report Pg. 16 Packet Pg. 61 of 152
5
157750738.2
IN WITNESS WHEREOF, this Amendment has been duly executed by the parties as of
the day and year first above written.
CITY OF PALO ALTO: Attest:
By: _____________________________ _________________________________
Hon. Lydia Kou, Mayor City Clerk
Approved:
________________________________
Ed Shikada, City Manager
Approved as to Content:
________________________________
Jonathan Lait, Director of Planning and Community Environment
Approved as to Form:
________________________________
Assistant City Attorney
STANFORD HEALTH CARE (formerly STANFORD HOSPITAL AND CLINICS)
By: ____________________________
David Entwistle, President and Chief Executive Officer
LUCILE SALTER PACKARD CHILDREN’S HOSPITAL AT STANFORD
By: ____________________________
Paul A. King, President and Chief Executive Officer
THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UNIVERSITY
By: ___________________________
Robert C. Reidy, Vice President of Land, Buildings & Real Estate
Item 5
Attachment A - Draft
Ordinance - SUMC
Development Agreement
Amendment Number 1
Item 5: Staff Report Pg. 17 Packet Pg. 62 of 152
*NOT YET APPROVED*
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0160124_20230926_ay16
Resolution No. ______
Resolution of the Council of the City of Palo Alto to Update the Mitigation
Monitoring and Reporting Program for the Stanford University Medical Center
(SUMC) Facilities Renewal and Replacement Project to be Align Mitigation
Measure TR-2.3 with the SUMC Development Agreement Amendment No. 1
RECITALS
WHEREAS, on June 6, 2011, the Council of the City of Palo Alto adopted Resolution No
9168 certifying the adequacy of the Final Environmental Impact Report for the Stanford
University Medical Center Facilities Renewal and Replacement Project (Final EIR) Pursuant to the
California Environmental Quality Act and Adopting the Mitigation Monitoring and Reporting
Program (MMRP) and the Statement of Overriding Considerations; and
WHEREAS, on June 6, 2011, Stanford Hospital and Clinics, Lucile Salter Packard Children’s
Hospital, Stanford University, and the City of Palo Alto entered into a Development Agreement
that allowed Stanford University Medical Center (SUMC Parties) to remodel existing facilities and
to construct new facilities at their campuses in Palo Alto; and
WHEREAS, the SUMC Development Agreement is in place for thirty (30) years from the
date of execution, allows for the adjustment of the timing for performance of conditions of
approval, allows for permitted delays in performance caused by force majeure, and allows for
SUMC Parties to develop the project in their sole discretion in accordance with their own time
schedule subject to the terms and conditions of the Development Agreement; and
WHEREAS, SUMC Parties claimed a permitted delay in performance of interim and final
alternative transportation mode share targets due to the effects of the COVID-19 pandemic.
WHEREAS, SUMC Parties filed an application for a Development Agreement amendment
(22PLN-00302) on September 7, 2022 to adjust the timeline by which SUMC is required to achieve
their alternative transportation mode share targets outlined in the Development Agreement
Section 5(c)(ix) Monitoring of TDM Programs and, correspondingly, the timing of performance in
MMRP Mitigation Measure TR-2.3; and
WHEREAS, SUMC Parties implement one of the most detailed and extensive
Transportation Demand Management (TDM) programs in the City and has historically achieved
high rates of SUMC employee use of alternative transportation modes; and
WHEREAS, SUMC Parties will continue to fully implement the requirements outlined in
Development Agreement Section 5(c)(ix) Monitoring of TDM Programs and MMRP Mitigation
Item 5
Attachment B - Draft
Resolution - Mitigation
Measure TR-2.3
Consistency with SUMC
Development Agreement
Amendment Number 1
Item 5: Staff Report Pg. 18 Packet Pg. 63 of 152
*NOT YET APPROVED*
2
0160124_20230926_ay16
Measure TR-2.3, including ongoing implementation of the SUMC TDM program activities, annual
monitoring of SUMC employee use of alternative transportation modes, and annual preparation
of the SUMC Alternative Mode Share Report; and
WHEREAS, the COVID-19 pandemic slowed the ability for SUMC Parties to complete the
new construction and remodeling anticipated to be complete by 2025, as previously analyzed in
the Final EIR and full project build-out for the full SUMC entitled square footage has not yet
occurred and will not occur until after 2025; and
WHEREAS, the proposed adjustments to the alternative mode share targets in SUMC
Development Agreement Amendment No. 1 are consistent with the Project analyzed in the Final
EIR and will not result in new potentially significant environmental impacts, a substantial increase
in any previously identified potential environmental impacts, or a misalignment in the previous
evaluation of potential SUMC Project environmental impacts relative to the timing of project
buildout; and
WHEREAS, SUMC Development Agreement Amendment Number 1 does not change the
approved SUMC project, nor convey new rights or entitlements that were not previously analyzed;
and
WHEREAS, on ________, the City Council adopted Ordinance No. ______, approving and
authorizing the Mayor to execute Amendment No.1 to the SUMC Development Agreement;
//
//
//
//
//
//
//
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Item 5
Attachment B - Draft
Resolution - Mitigation
Measure TR-2.3
Consistency with SUMC
Development Agreement
Amendment Number 1
Item 5: Staff Report Pg. 19 Packet Pg. 64 of 152
*NOT YET APPROVED*
3
0160124_20230926_ay16
NOW THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:
1. The Mitigation Monitoring and Reporting Program for the Stanford University
Medical Center (SUMC) Facilities Renewal and Replacement Project shall be updated as shown
in Attachment A, to align Mitigation Measure TR-2.3 with the SUMC Development Agreement
Amendment No. 1.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
____________________________ ____________________________
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
____________________________ ____________________________
Assistant City Attorney City Manager
____________________________
Director of Planning and
Development Services
Item 5
Attachment B - Draft
Resolution - Mitigation
Measure TR-2.3
Consistency with SUMC
Development Agreement
Amendment Number 1
Item 5: Staff Report Pg. 20 Packet Pg. 65 of 152
*NOT YET APPROVED*
4
0160124_20230926_ay16
Attachment A
STANFORD UNIVERSITY MEDICAL CENTER FACILITIES RENEWAL AND REPLACEMENT
MITIGATION MONITORING AND REPORTING PLAN
(Note: Underline/Strikeout – Edits made to be consistent with SUMC Development Agreement Amendment Number 1)
Mitigation Measures
Monitoring or
Reporting Action
Responsibility Timing Signature/Date Completed
TR-2.3 Enhance Stanford University Transportation
Demand Management (TDM) Program. The SUMC
Project sponsors shall enhance the currently implemented
TDM program in order to achieve 35.1
percent usage of alternative transportation modes (i.e.,
carpool, vanpool, bus, Caltrain, bicycle, and walk) by
Hospital employees. The initial enhancements to the
SUMC TDM program shall include the following:
• Commencing on September 1, 2015, the Hospitals
shall purchase annual Caltrain GO Passes (free train
passes) for all existing and new Hospital employees
who work more than 20 hours per week, at a cost of
up to One Million Eight Hundred Thousand Dollars
($1,800,000) per year, which amount shall be
adjusted annually to reflect any change in the San
Francisco Bay Area Consumer Price Index (the “GO
Pass Amount”). The Hospitals’ obligation to
provide GO Passes shall continue for fifty-one (51)
years , or until such earlier date as: (a) Caltrain
discontinues the GO Pass program, or a
substantially similar program; (b) Caltrain increases
the cost of GO Passes, or a substantially similar
program, such that the Hospitals’ annual costs
would exceed the GO Pass Amount; or (c) Caltrain
service is reduced by such an extent that the
Hospitals and the City mutually determine purchase
of annual GO Passes, or a substantially similar
program, would no longer be effective in
substantially reducing Hospital employee peak
Review TDM reports
to verify that
enhancements of TDM
program have been
implemented and
determine whether
interim mode split
targets have been
achieved; transmit
TDM reports to City of
Menlo Park for their
review
City and SUMC
Project sponsors will
meet annually to
discuss effectiveness of
enhanced TDM
program and to identify
potential
improvements. SUMC
Project sponsors may
modify enhanced TDM
program as needed to
improve its
effectiveness.
Verify lease of 75
parking spaces at
Ardenwood Park and
Ride lot, or an
City of Palo Alto
Department of
Planning and
Community
Environment
Baseline TDM report
within six months of
SUMC Project
approval
Annual TDM reports
submitted each Spring
Baseline TDM Report
________________________
______________
Signature Date
Spring 2013
________________________
______________
Signature Date
Spring 2014
________________________
______________
Signature Date
Spring 2015
________________________
______________
Signature Date
Spring 2016
________________________
______________
Signature Date
Spring 2017
________________________
______________
Signature Date
Item 5
Attachment B - Draft Resolution -
Mitigation Measure TR-2.3
Consistency with SUMC
Development Agreement
Amendment Number 1
Item 5: Staff Report Pg. 21 Packet Pg. 66 of 152
*NOT YET APPROVED*
5
0160124_20230926_ay16
period trips in order to achieve the Alternative Mode
targets in Table 3.4-19A in Section 3 in the Final
EIR. If the cost of obtaining GO Passes exceeds the
GO Pass Amount, the Hospitals shall have the
option to elect either to purchase the GO Passes at
the then applicable price, or to terminate the
obligation to provide GO Passes, or a substantially
similar program. If the Hospitals’ obligation to
provide GO Passes, or a substantially similar
program, terminates for any of the reasons specified
in this measure , the Hospitals shall contribute the
GO Pass Amount to one or more substitute
programs to encourage use of transit by Hospital
employees or otherwise reduce peak period traffic
trips in the intersections impacted by the Project as
identified in the Project EIR, including but not
limited to regional transportations systems or
solutions. The substitute program or programs shall
be mutually agreed upon by the SUMC Parties and
the City’s Director of Planning and Community
Environment.
• Use all reasonable efforts to arrange with AC
Transit to lease 75 spaces at the Ardenwood Park &
Ride Lot, or an equivalent facility, to serve SUMC
employees who commute from the East Bay.
• Expand the Marguerite shuttle bus service between
the SUMC and PAITS as needed to accommodate
increased ridership by Hospital employees.
• Use all reasonable efforts to assure that the
controlling transit agency maintains load factors less
than 1.00 on the U-Line.
• Maintain a load factor less than or equal to 1.25 on
the Marguerite shuttle.
equivalent location, at a
cost not to exceed
$45,000 per year.
For U-Line load
factors, verify Initial
Payment offer to AC
transit ($250,000) and
then subsequent annual
payment offers up to
$50,000 total.
Spring 2018
________________________
______________
Signature Date
Spring 2019
________________________
______________
Signature Date
Spring 2020
________________________
______________
Signature Date
Spring 2021
________________________
______________
Signature Date
Spring 2022
________________________
______________
Signature Date
Spring 2023
________________________
______________
Signature Date
Spring 2024
________________________
______________
Signature Date
Spring 2025
________________________
______________
Item 5
Attachment B - Draft Resolution -
Mitigation Measure TR-2.3
Consistency with SUMC
Development Agreement
Amendment Number 1
Item 5: Staff Report Pg. 22 Packet Pg. 67 of 152
*NOT YET APPROVED*
6
0160124_20230926_ay16
• Expand and improve the bicycle and pedestrian
networks as specified by Project site plans.
• Provide a full-time on-site TDM coordinator by
2015 for the hospital components. The coordinator
would be responsible for organizing and
disseminating TDM information primarily to
hospital employees and also to hospital patients. A
central location would be made available to provide
information on alternative travel modes. Also, the
SUMC or Hospitals’ website would contain
information on TDM programs.
• Provide a guaranteed ride home program for all
employees who use transit and other transport
alternatives like carpool and vanpool. The guarantee
ride home shall allow employees with dependent
children the ability to use alternative modes to travel
to and from work but still be able to travel home
mid-day in case of an emergency.
• Provide employees with shower facilities within the
SUMC Sites to encourage bicycling to work. The
SUMC Project sponsors shall also provide bicycle
storage facilities on the SUMC Sites that would be
conveniently located near the employee showers.
• Establish, in conjunction with the GO Pass
implementation, a “Zip Car” (or other similar carsharing
program) with Zip Cars available at the medical
complex.
• Perform annual TDM monitoring from the date of
initial project approval through the life of the project
(51 years after project approval) and submit the
report to the City of Palo Alto. This report also shall be
submitted to the City of Menlo Park for its review.
Signature Date
Spring 2026
________________________
______________
Signature Date
Spring 2027
________________________
______________
Signature Date
Spring 2028
________________________
______________
Signature Date
Spring 2062
________________________
______________
Signature Date
Item 5
Attachment B - Draft Resolution -
Mitigation Measure TR-2.3
Consistency with SUMC
Development Agreement
Amendment Number 1
Item 5: Staff Report Pg. 23 Packet Pg. 68 of 152
*NOT YET APPROVED*
7
0160124_20230926_ay16
• Within six (6) months of project approval, and
annually for a period of fifty-one (51) years from
initial project approval, the SUMC Project sponsors
shall submit to the City’s Director of Planning and
Community Environment, a Hospital TDM Program
Report that shows the current number of employees
employed over 20 hours per week;, the number of
employees using an alternative mode share as
documented by a study or survey to be completed
by the Hospitals using a method mutually agreeable
to the City and Hospitals; and the efforts used by the
Hospitals to attempt to achieve the Alternative
Mode targets.
These enhancements may not immediately change the
mode split for Hospital employees. Further, because
transit use by employees of the Hospitals is voluntary,
and may be influenced by a number of factors outside the
reasonable control of the Hospitals, such as gasoline
prices, costs and availability of alternative transit,
housing costs and availability, and personal preferences
of employees, the Hospitals cannot guarantee the results
of their TDM programs.
Item 5
Attachment B - Draft Resolution -
Mitigation Measure TR-2.3
Consistency with SUMC
Development Agreement
Amendment Number 1
Item 5: Staff Report Pg. 24 Packet Pg. 69 of 152
*NOT YET APPROVED*
8
0160124_20230926_ay16
The interim targets in Table 3.4-19A in Section 3 in the
Final EIR were previously shall be used to measure the
progress toward meeting the desired mode split by 2025.
The interim and final targets are now as outlined in SUMC
Development Agreement Amendment Number 1,
modifying the targets to be as follows:
“Second Interim Target Year” is defined as the year that is
one year after the expiration or termination of the United
States Secretary of Health and Human Services’
determination, under Section 319 of the Public Health
Service Act or any successor statute, that a public health
emergency exists due to the COVID-19 pandemic, provided
that if such determination expires or is terminated on or
after July 1 in a given year, the Second Interim Target Year
means the year following one year after the determination
expires or is terminated.
“Final Target Year” is defined as the year that is four years
after the “Second Interim Target Year.”
The These interim targets assume that in the
early phases of implementation, there may be larger
shifts to alternative modes than the shifts that may occur
in later phases of the TDM program enhancement. For
purposes of calculating alternative mode share, any
Target Year Alternative
Mode Share
Percentage
Change
EIR Baseline (2006) 22.9% NA
Project Approval
Baseline (2011)
TBD TBD
2018 30% 7.1%
2021 Second
Interim Target Year
33% +3%
2025 Final Target
Year
35.1% +2.1%
Item 5
Attachment B - Draft Resolution -
Mitigation Measure TR-2.3
Consistency with SUMC
Development Agreement
Amendment Number 1
Item 5: Staff Report Pg. 25 Packet Pg. 70 of 152
*NOT YET APPROVED*
9
0160124_20230926_ay16
mode that does not constitute driving in a single occupant
vehicle to and from the work site shall be
considered an “Alternative Mode,” including
working remotely from home.
For each of the interim target years, following
submission of the Hospitals TDM Annual Report, the
City shall determine if the interim year target has been
met. If the Hospitals have not met the interim target, the
Hospitals and the City shall meet to review the TDM
Program and to identify possible additional TDM
Program enhancements that the Hospitals should
consider incorporating into their TDM Program in order
to increase the Program’s effectiveness.
Excluding the period from 2022 through the year prior to
the Second Interim Target Year, during which time this
provision shall not apply, if If the Hospitals do not meet the
applicable interim targets
for any two consecutive years prior to 2025 the Final
Target Year, the Hospitals shall provide alternative
transportation funding to the City of Palo Alto in annual
payments in the amount of $175,000 per year, as adjusted
to reflect the change in the San Francisco Area Consumer
Price Index described in the following sentence, until the
earlier of the year 2025 Final Target Year or the year the
Hospitals achieve the applicable interim mode split target,
subject to a maximum of five annual payments.
Adjustments for inflation shall be calculated as follows:
The number of years between 2025 and the Final Target
Year shall be calculated, and the change in the San
Francisco Area Consumer Price Index shall be calculated
over an equivalent number of years prior to January 1 of
the year the Annual Payment is due. The alternative
transportation funding shall be used by the City of Palo
Alto for local projects and programs that encourage
citywide use of alternative transportation mode uses or
otherwise reduce peak period
Item 5
Attachment B - Draft Resolution -
Mitigation Measure TR-2.3
Consistency with SUMC
Development Agreement
Amendment Number 1
Item 5: Staff Report Pg. 26 Packet Pg. 71 of 152
*NOT YET APPROVED*
10
0160124_20230926_ay16
traffic trips in the intersections impacted by the Project as
identified in the Project EIR, including but not limited to
citywide and regional transportation systems and
solutions. The City of Palo Alto should consider
transportation systems and solutions that also help to
reduce traffic in the City of Menlo Park.
If by 2025 the Final Target Year, the Hospitals have not
demonstrated substantial achievement of the 35.1 percent
target modal split for alternative transportation modes,
the following measure shall be required:
• The Hospitals shall make a lump sum payment of $4.0
million, as adjusted to reflect the change in the San
Francisco Area Consumer Price Index from January 1,
2025 to January 1 of the Final Target Year, to the City of
Palo Alto for local projects and programs that
encourage and improve citywide use of alternative
transportation mode uses or otherwise reduce peak
period traffic trips in the
intersections impacted by the Project as identified in
the Project EIR, including but not limited to
regional transportation systems and solutions. The
City of Palo Alto shall identify capital projects and
program enhancements for which the funds may be
applied. Sample projects may include contributions
towards regional transportation projects of interest
to the City of Palo Alto and that are identified
within the Valley Transportation Authority – Valley
Transportation Plan or other local planning
documents. The City of Palo Alto should consider
transportation systems and solutions that also help
to reduce traffic in the City of Menlo Park. If
required, said $4.0 million payment, as adjusted by
inflation, shall constitute
funds to be used by the City to offset trips by
Hospital employees through citywide trip reduction.
The $4.0 million payment, as adjusted by inflation, shall
Item 5
Attachment B - Draft Resolution -
Mitigation Measure TR-2.3
Consistency with SUMC
Development Agreement
Amendment Number 1
Item 5: Staff Report Pg. 27 Packet Pg. 72 of 152
*NOT YET APPROVED*
11
0160124_20230926_ay16
not relieve the
Hospitals of any of their obligations under this
measure, including but not limited to their
obligations to continue to attempt to achieve the
35.1 percent target modal split through
implementation of the GO Pass or substantially
similar program, or a substitute program mutually
agreed upon by the Hospitals and the City’s Director
of Planning and Community Environment, which
shall continue for 51 years from the date of Project
approval. Further, the Hospitals shall continue to
implement an enhanced TDM program, monitor
modal splits by Hospital employees, and strive to
maximize use of alternative commute modes by
Hospital employees. In addition, the Hospitals shall
continue to meet with the City on a regular basis to
identify potential improvements to the enhanced
TDM program.
Item 5
Attachment B - Draft Resolution -
Mitigation Measure TR-2.3
Consistency with SUMC
Development Agreement
Amendment Number 1
Item 5: Staff Report Pg. 28 Packet Pg. 73 of 152
1
Attachment C
SUMC Alternative Mode Share Target Year Compliance Status Summary - 2020 through 2023
Fiscal
Year/
Target
Year
TDM
Implementation
Alternative Mode Share
Status
Status Notes
Fiscal
Year
2019-
2020/
Target
Year
2020
SUMC
implemented
TDM program
activities in
Fiscal Year
2019-2020.
Not applicable; City
approved a delay in the
submittal of Fiscal Year
2019-2020 Alternative
Mode Share Report.
COVID-19 pandemic shelter-in-place
orders issued in March 2020. As
monitoring of SUMC employee commutes
was scheduled for the April/May 2020
timeframe, the information collected
would not reflect normal SUMC staff
operations due to the shelter-in-place
directives. Therefore, on March 27, 2020,
the City conditionally approved a one-
year delay in the submittal of the FY
2019-2020 Alternative Mode Share
Report.
Fiscal
Year
2020-
2021/
Target
Year
2021
SUMC
implemented
TDM program
activities in
Fiscal Year
2020-2021.
Target not achieved. The
Fiscal Year 2020-2021
Alternative Mode Share
Report showed
alternative mode share
rate had decreased to
28.8% (target 33%).
This is considered the
first year for missed
targets.
Per the Development Agreement, the City
coordinated with SUMC and monitored
the status of TDM activities.
Fiscal
Year
2021-
2022/
Target
Year
2022
SUMC
implemented
TDM program
activities in
Fiscal Year
2021-2022.1
Target not achieved. The
Fiscal Year 2021-2022
Alternative Mode Share
Report showed
alternative mode share
rate had further
decreased to 19.9%
(target 33%).
On June 14, 2022, the City received
SUMC’s notice of intent to claim a
“Permitted Delay” for achieving
alternative transportation mode share
targets under Section 18(c) Force Majeure
in the Development Agreement.
1 Memorandum from SUMC describing TDM Activities in Fiscal Year 2021-2022, received February 11, 2022:
www.cityofpaloalto.org/files/assets/public/v/1/planning-amp-development-services/current-planning/uploads-
for-website/sumc/sumc-memo-tdm-program-activities_february_11_2022.pdf.
Item 5
Attachment C - SUMC
Alternative Mode Share
Target Year Compliance
Status Summary - 2020
through 2023
Item 5: Staff Report Pg. 29 Packet Pg. 74 of 152
2
This is considered the
second consecutive year
for missed targets.
Fiscal
Year
2022-
2023/
Target
Year
2023
SUMC
implemented
TDM program
activities in
Fiscal Year
2022-20232 and
on an ongoing
basis.
Target not achieved. The
Fiscal Year 2022-2023
Alternative Mode Share
Report showed
alternative mode share
rate increased from the
previous year to 25.6%
but is still below the 33%
target.
This is considered the
third consecutive year
for missed targets.
On July 27, 2022, the City acknowledged
receipt of the notice of intent to claim a
“Permitted Delay” and deferred seeking
the $175,000 alternative transportation
funding Annual Payment outlined in the
Development Agreement, pending
resolution of the proposed SUMC
Development Agreement amendment.
On September 7, 2022, SUMC filed
application 22PLN-00302 for SUMC
Development Agreement Amendment
Number 1.
The City deferred seeking a second
$175,000 alternative transportation
funding Annual Payment after SUMC
submitted the Fiscal Year 2022-2023
Alternative Mode Share report in May
2023. The City remains in coordination
with SUMC regarding implementation of
their TDM program.
On May 11, 2023, the U.S. Health and
Human Services Department released a
statement declaring the end of the
COVID-19 Public Health Emergency.
2 Memorandum from SUMC describing TDM Activities in Fiscal Year 2022-2023, received February 27, 2023:
www.cityofpaloalto.org/files/assets/public/v/1/planning-amp-development-services/current-planning/uploads-
for-website/sumc/sumc-memo-tdm-program-activities_february_-27_2023.pdf.
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Attachment C - SUMC
Alternative Mode Share
Target Year Compliance
Status Summary - 2020
through 2023
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City Council
Staff Report
From: City Manager
Report Type: INFORMATIONAL ITEM
Lead Department: Utilities
Meeting Date: October 23, 2023
Staff Report: 2309-2086
TITLE
Reporting of the emergency contract authorization by the City Manager to execute a contract
with WRA Inc. S24189354
RECOMMENDATION
Receive a report on an emergency contract authorization by the City Manager with WRA Inc.
(S241893541), for biological monitoring and a creek bed restoration engineer to bury an exposed
8” high-pressure natural gas pipeline crossing Arastradero Creek in the Arastradero Preserve
during the 2022/2023 winter storms.
BACKGROUND
In late March 2023, staff from Utilities Operations were notified of an exposed 8” high-pressure
natural gas pipeline crossing Arastradero Creek in the Arastradero Preserve. After field
investigations and document review, staff determined the recent surges in storms during the
2022/2023 winter brought an increase in water flow through Arastradero Creek causing the
existing creek bank and creek bed erosion, exposing approximately 35’ of the existing high-
pressure natural gas pipeline. Staff also determined the exposed gas line was adjacent to a still
buried 16” potable water and 16” wastewater collection pipeline crossing. The natural gas and
potable water pipelines are the only utility service feeds to residents in the foothills.
Staff promptly filed a Safety Related Condition Report required under the Title 49 of the Code of
Federal Regulations, Parts 191.23 and 191.25 with the Pipeline Hazardous Materials and Safety
Administration. In mid-April 2023, staff filed an emergency permit with the Department of Fish
and Wildlife (DFW) to use an existing City contractor to remove downed trees laying directly on
the high-pressure pipeline. Utilities Engineering met onsite with WRA Inc. (environmental design
and consulting firm) to identify next steps to perform work in the creek and rebury the gas
1 Contract S24189354 https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-
reports/reports/city-manager-reports-cmrs/attachments/10-23-2023-id-2309-2086-s24188447-amendment-1.pdf
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pipeline prior to the next winter storm event. An initial $50,000 contract with WRA Inc. was
executed for five separate tasks for creek bed restoration design. The tasks included data
collection and analysis of the existing creek conditions, erosion repair work plan design, basis of
design memorandum, biological resources assessment of endangered plants and species, and a
permitting strategy memorandum for each agency review.
In early September 2023, the design and supporting documents were submitted with an
emergency permit request to the permitting agencies, which included the San Francisco Regional
Water Quality and Control Board (SFRWQCB), Army Corps of Engineers (ACE), and DFW. Multiple
rounds of comments from SFWQCB required several redesign efforts and unanticipated
additional requirements. Additional requirements imposed by the SFWQCB include (1) a full-time
biological monitor and (2) a full-time creek bed restoration engineer to oversee and guide City
crews performing the restoration work within the creek. The requirements are to protect
potential endangered species during restoration work and provide general oversight of the
project.
Emergency permits require that all work in the creek be completed prior to October 15, 2023 and
the City performed the construction work with its own resources. In order to accommodate the
unanticipated additional redesign efforts and to meet the additional requirements of the
emergency permit, staff estimate that an additional $85,000 will be needed for WRA’s services
for the construction monitoring support. However, the additional amount required exceeds the
contract limits established in the City’s purchasing policy that can be authorized without City
Council approval. The time to obtain emergency permits from the appropriate agencies was
unforeseen and resulted in the urgent timeline for repair construction.
Utilities Operations staff consulted with the City Attorney’s Office regarding the appropriate
procurement process and requested that the City Manager determine that the contract
amendment with WRA Inc. for construction monitoring and support services, including a full-time
biological monitor and engineer during this restoration phase, qualify as an emergency contract
as defined in Palo Alto Municipal Code (PAMC) Section 2.30.160. In Section 2.30.160, a contract
for goods or services necessary to protect the public health, safety, and welfare in the event of
an emergency may be approved by the City Manager. An emergency means and includes an
urgent unforeseen event that threatens life, property, or the general public health, safety and
welfare, including, without limitation, an emergency declared by the Federal Emergency
Management Agency.
ANALYSIS
The risk of not completing the work prior to the permit deadline would leave the gas pipeline
exposed for the upcoming rainy season potentially causing damage to the pipeline, interruption
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of utility service, and injury to people or property. Given these potential harms to the public
health, safety, and welfare, Utilities Operations believed the exposed pipeline constituted an
emergency consistent with the Municipal Code. Based on the above information, the City
Manager approved an emergency contract under PAMC Section 2.30.160 and Section 2.30.210(f)
for an additional $85,000 with WRA Inc. to provide a full-time biological monitor and engineer
during this creek bed construction and restoration phase.
In accordance with the City’s purchasing policy, emergency expenditures approved by the City
Manager must be reported to the City Council at the next regular meeting, if approval for such
expenditures would otherwise have been made by the Council. Accordingly, staff is submitting
this staff report to inform the City Council of the emergency contract authorization provided by
the City Manager.
FISCAL/RESOURCE IMPACT
There is funding available in the Gas System Improvement Fund (GS-11002) in Fiscal Year 2024
for the emergency contract for WRA Inc. to provide a full time Biological Monitor and creek bed
restoration engineer.
STAKEHOLDER ENGAGEMENT
Staff has submitted an emergency permit application with SFRWQCB, ACE, and DFW. Staff is also
working with Public Works and Administrative Service Division for coordination of the creek
restoration work and notification of work within the Arastradero Preserve.
ENVIRONMENTAL REVIEW
Staff has received an emergency permit with SFRWQCB, ACE, and DFW to perform the
temporary work within Arastradero Creek.
ATTACHMENTS
Attachment A: City Manager Approved Letter
APPROVED BY:
Dean Batchelor, Director of Utilities
Staff: Aaron Perkins, Principal Gas Engineer
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UTILITIES DEPARTMENT
250 Hamilton Avenue. 3rd Floor
Palo Alto. CA 94301
650 329 2241
September 21, 2023
Division: WGW Engineering
Project: Arastradero Preserve
Arastradero Creek
Exposed Natural Gas Pipeline Crossing
In late March 2023, staff from Utilities Operations were notified of an exposed 8” high-pressure natural gas
pipeline crossing Arastradero Creek in the Arastradero Preserve. After field investigations and document review,
staff determined the recent surges in storms during the 2022/2023 winter brought an increase in water flow
through Arastradero Creek causing the existing creek bank and creek bed erosion, exposing approximately 35’ of
the existing high-pressure natural gas pipeline. Staff also determined the exposed gas line was adjacent to a still
buried 16” potable water and 16” wastewater collection pipeline crossing. The natural gas and potable water
pipelines are the only utility service feeds to residents in the foothills.
Staff promptly filed a Safety Related Condition Report required under the Title 49 of the Code of Federal
Regulations, Parts 191.23 and 191.25 with the Pipeline Hazardous Materials and Safety Administration. In mid-
April 2023, staff filed an emergency permit with the Department of Fish and Wildlife (DFW) to use an existing City
contractor to remove downed trees laying directly on the high-pressure pipeline. Utilities Engineering met onsite
with WRA Inc. (environmental design and consulting firm) to identify next steps to perform work in the creek and
rebury the gas pipeline prior to the next winter storm event. An initial $50,000 contract with WRA Inc. was
executed for five separate tasks for creek bed restoration design. The tasks included data collection and analysis
of the existing creek conditions, erosion repair work plan design, basis of design memorandum, biological
resources assessment of endangered plants and species, and a permitting strategy memorandum for each agency
review.
In early September 2023, the design and supporting documents were submitted with an emergency permit
request to the permitting agencies, which included the San Francisco Regional Water Quality and Control Board
(SFRWQCB), Army Corps of Engineers (ACE), and DFW. Multiple rounds of comments from SFWQCB required
several redesign efforts and unanticipated additional requirements. Additional requirements imposed by the
SFWQCB include (1) a full time biological monitor and (2) a full-time creek bed restoration engineer to oversee
and guide City crews performing the restoration work within the creek. The requirements are to protect potential
endangered species during restoration work and provide general oversight of the project.
The emergency permits require that all work in the creek be completed prior to October 15, 2023 and the City will
perform the construction work with its own resources. In order to accommodate the unanticipated additional
redesign efforts and to meet the additional requirements of the emergency permit, staff estimate that an
additional $85,000 will be needed for WRA’s services for the construction monitoring support. However, the
additional amount required exceeds the contract limits established in the City’s purchasing policy that can be
authorized without City Council approval.
Utilities Operations staff consulted with the City Attorney’s Office regarding the appropriate procurement process
and requests that the City Manager determine that the contract amendment with WRA Inc. for construction
monitoring and support services, including a full-time biological monitor and engineer during this restoration
phase, qualify as an emergency contract as defined in Palo Alto Municipal Code (PAMC) Section 2.30.160. In
DocuSign Envelope ID: 9F402ED7-70A5-4963-9FE0-49E17ADEA80C
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Section 2.30.160, a contract for goods or services necessary to protect the public health, safety, and welfare in
the event of an emergency may be approved by the City Manager. An emergency means and includes an urgent
unforeseen event that threatens life, property, or the general public health, safety and welfare, including, without
limitation, an emergency declared by the Federal Emergency Management Agency. The time to obtain emergency
permits from the appropriate agencies was unforeseen and resulted in the urgent timeline for repair construction.
The risk of not completing the work prior to the October 15, 2023 deadline would leave the gas pipeline exposed
for the upcoming rainy season and potentially causing damage to the pipeline, interruption of utility service, and
injury to people or property. Given these potential harms to the public health, safety, and welfare Utilities
Operations believes the exposed pipeline constitutes an emergency consistent with the Municipal Code.
Therefore, staff is requesting the City Manager provide emergency contract approval under PAMC Section
2.30.160 and Section 2.30.210(f) to authorize an additional $85,000 contract with WRA Inc. to provide a full-time
biological monitor and engineer during this creek bed construction and restoration phase.
Recommended for Approval:
_________________________________ ___________________
Dean Batchelor, Director of Utilities
_________________________________ ____________________
Aylin Bilir, Assistant City Attorney
Approved:
_____________________________________ _______________________
Ed Shikada, City Manager
DocuSign Envelope ID: 9F402ED7-70A5-4963-9FE0-49E17ADEA80C
9/21/2023
9/22/2023
9/22/2023
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CityOfPaIoAIto.org
DocuSign Envelope ID: 9F402ED7-70A5-4963-9FE0-49E17ADEA80C
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Certificate Of Completion
Envelope Id: 9F402ED770A549639FE049E17ADEA80C Status: Completed
Subject: Complete with DocuSign: 2023 Arastradero Preserve Emergency Proceeding
Source Envelope:
Document Pages: 3 Signatures: 3 Envelope Originator:
Certificate Pages: 2 Initials: 0 Tabatha Boatwright
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
tabatha.boatwright@cityofpaloalto.org
IP Address: 199.33.32.254
Record Tracking
Status: Original
9/21/2023 7:56:11 PM
Holder: Tabatha Boatwright
tabatha.boatwright@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
Dean Batchelor
Dean.Batchelor@CityofPaloAlto.org
Director of Utilities
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 199.33.32.254
Sent: 9/21/2023 7:59:04 PM
Viewed: 9/21/2023 7:59:36 PM
Signed: 9/21/2023 7:59:43 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Aylin Bilir
Aylin.Bilir@Cityofpaloalto.org
Assistant City Attorney
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 73.158.238.128
Sent: 9/21/2023 7:59:44 PM
Viewed: 9/22/2023 9:40:13 AM
Signed: 9/22/2023 9:41:28 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Ed Shikada
Ed.Shikada@CityofPaloAlto.org
Ed Shikada
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 199.33.32.254
Sent: 9/22/2023 9:41:29 AM
Viewed: 9/22/2023 4:33:26 PM
Signed: 9/22/2023 4:33:42 PM
Electronic Record and Signature Disclosure:
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In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
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Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
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Carbon Copy Events Status Timestamp
Aaron Perkins
Aaron.Perkins@cityofpaloalto.org
Senior Engineer
Security Level: Email, Account Authentication
(None)
Sent: 9/22/2023 4:33:43 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
AnnMaria Romero
annmarie.romero@cityofpaloalto.org
Contracts Administrator
Security Level: Email, Account Authentication
(None)
Sent: 9/22/2023 4:33:44 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Witness Events Signature Timestamp
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Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 9/21/2023 7:59:04 PM
Certified Delivered Security Checked 9/22/2023 4:33:26 PM
Signing Complete Security Checked 9/22/2023 4:33:42 PM
Completed Security Checked 9/22/2023 4:33:44 PM
Payment Events Status Timestamps
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City Council
Staff Report
From: City Manager
Report Type: INFORMATION REPORTS
Lead Department: City Manager
Meeting Date: October 23, 2023
Report #:2310-2120
TITLE
2023 Council Priority Objectives Q3 Report
INFORMATION
This is an informational report that provides progress updates on the 2023 Council Priorities
and Objectives approved by the City Council on January 29, 2023. No action is needed.
BACKGROUND
On January 28, 2023, the Council held its annual retreat to approve the 2023 Council Priorities1.
The Priority Setting Guidelines define a priority as a topic that will receive unusual and
significant attention during the year. At the conclusion of the retreat, the City Council approved
the following priorities:
•Economic Recovery and Transition
•Climate Change and the Natural Environment: Protection and Adaptation
•Housing for Social and Economic Balance
•Community Health and Safety
On February 6, 20232, Council reviewed a set of Objectives meant to reflect potential Council
actions, be measurable and time-bound to make real progress in advancing Council Priorities.
At its April 10, 202333 meeting, the Council adopted 72 objectives which were further refined
and several funded during the 2024 Budget Adoption meeting4. Objectives are summarized in
Attachment A of the report.
1 City Council Retreat 1/28/23 https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1492
2 2023 Council Objectives 2/6/2023
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1067
3 2023 Updated City Council Objectives
https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1109
4 FY 2024 Budget Adoption https://cityofpaloalto.primegov.com/Portal/Meeting?meetingTemplateId=1170
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ANALYSIS
Progress on Council Priorities is measured by the accomplishments of its subset objectives and
reported on a calendar quarterly basis. Calendar Q3 spans the months July through September
2023. A summary of all 72 objectives is listed in Attachment A, including an estimated
completion date, also measured in calendar quarters. A narrative on each objective update is
found in Attachment B, it includes:
Project description- describes activities and outcomes for the calendar year as some projects
are multi-year in length and are broken up into phases.
Project Status-
•Completed- Project as described in the description is overall complete, though some
minor/non-substantive follow-up may still be needed.
•On-Track- Project is expected to be completed as specified, no significant delays.
•Behind Schedule/Not Started- The project estimated completion date may be delayed
due to operational issues, capacity constraints (such as vacancies in staffing), or project
has not started.
•On Hold/Dropped- Project is not actively in progress or will no longer move forward in
the current year. Reasons may include the issue is no longer relevant or is
stalled/dropped due to council direction.
Estimated Completion- The calendar quarter in which the objective is expected to be
completed.
Department Lead- Identifies the lead department and project manager responsible for
coordinating progress.
Update- a brief progress update on the project describes work reflected in the respective
calenda quarter. Any delays or project issues will be reflected in this section.
Of the 72 Council objectives supporting Council priorities, as of Q3, 20 have been completed, 32
are on track, 13 behind schedule/not started, and seven (7) are on hold/dropped.
Council Priority Area Completed On
Track
Behind
Schedule
On Hold/
Dropped
Total
Economic Recovery & Business
Transition (ER&BT)4 5 1 1 11
Climate Change and the Natural
Environment: Protection and
Adaptation (CC&NE)
4 8 6 2 20
Housing for Social and Economic
Balance (HSEB)7 6 4 3 20
Community Health and Safety 5 13 2 1 21
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(CH&S)
TOTAL 20 32 13 7 72
While great progress has been made with 72% of objectives either completed or estimated to
be completed by Q4, some objectives are now expected to extend into 2024. As mentioned
earlier in the report, at the request of the City Council four objectives have been placed on hold
and are scheduled to be reevaluated at the FY 2024 Midyear process. Another nine objectives,
for a variety of reasons, some outside of the City’s control, have pushed the completion date to
2024 and are summarized below:
ECONOMIC RECOVERY & BUSINESS TRANSITION
ERBT k. Provide direction on citywide retail zoning code changes including retail
preservation and neighborhood commercial district specific regulations and CUP thresholds
(ERT 4, 12, 13)
Lead Dept. PDS Amy French
Status: On Track Estimated Completion: 2024
Project Description:
Council directed staff and the Planning and Transportation Commission (PTC) to evaluate and
propose changes to enable Diverse Retail Uses in more retail sites, including food, medical,
educational, financial, and professional office uses citywide or by district, and evaluate ways
the City can curate a strong retail mix.
Update:
As part of the development of a comprehensive economic development strategy (ERT2),
Streetsense conducted a retail market analysis and outlined retail best practices and
recommendations. In addition to Streetsense, Michael Baker International consulting firm is
also concluding its findings on retail preservation and commercial district-level specific retail
recommendations. Data gathering, including stakeholder interviews, are underway. As this
work develops, next steps will include draft regulations for Planning and Transportation
Commission (PTC) and Council review. At its August 14 meeting, Council expanded the scope
of work for this project to include the creation of a Council ad hoc and discussion of near and
midterm initiatives to enhance retail land use and hotel use. Given the extended scope
directed by Council, the project is on track for an updated estimated completion date of Q2
2024.
CLIMATE CHANGE AND THE NATURAL ENVIRONMENT
CC&NE l. Implement Advanced Metering Infrastructure (AMI) through purchase of
meters/equipment for installation (CCPA7)
Lead Dept. UTL Dave Yuan
Status: Behind Schedule Estimated Completion: 2024
Project Description:
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The City of Palo Alto Utilities (CPAU) is upgrading the City’s utility metering system with
electronic meters to utilize grid technology called Advanced Metering Infrastructure (AMI).
AMI is becoming a standard in the utilities industry, enabling interval utility usage data and
time-of-use rates for homes and businesses to the benefit of electric, natural gas, and water
utility customers. CPAU will replace old legacy electric meters with new advanced electric
meters and retrofit existing water and gas meters with AMI radios, starting with residential
meters.
Update:
The City has begun full deployment of residential AMI meters. Thus far, 2,500 of 75,000
electric, gas, and water AMI meters have been installed. Depending on commercial
availability of meters and radio endpoints, CPAU will complete residential AMI deployment
by end of 2024. Due to supply chain issues, the completion of electric commercial AMI
meters has been moved out to mid-2025. Customers with AMI meters will be able to view
their interval consumption pattern in the utilities customer portal MyCPAU and receive water
leak alerts starting in Q1 2024.
The City is partnering with Utility Partners of America (UPA) to exchange electric meter with a
new advanced electric meter and retrofit existing gas and water meters with AMI radios.
CC&NE p. Begin first phase construction for grid modernization and consultant resources to
plan for gas transition
Lead Dept. UTL Tomm Marshall
Status: Behind Schedule Estimated Completion: 2024
Project Description:
The City’s planned grid modernization project includes the modernization of the systematic
grid and incorporates the Goals and Key Actions from the Grid Modernization Study to
prepare the grid for widespread electrification in support of the S/CAP goal of an 80 percent
carbon reduction by 2030. A study is also planned to evaluate the financial and infrastructure
needs to manage the gas utility as gas sales decline.
Update:
The first phase of the Grid Modernization Study has concluded, it evaluated capacity
requirements needed for electrification. Design began for construction of a first
neighborhood modernization project, but the start of construction is delayed to coordinate
the feasibility of efficiencies in alignment with Fiber to the Premise construction. A discussion
is scheduled with the Finance Committee and City Council during November and December
2023 on the Fiber to the Premise project. Current expected start date is early 2024.
An initial budget has been approved to start a gas transition study and staff is currently
developing a work plan for the transition. Staff is also working to retain consulting services to
develop a model of the gas system to analyze future gas infrastructure requirements and
evaluate potential impacts of future modifications to the gas system. Staff has started to
prepare an RFP to retain consulting services and anticipates commencing work on the model
development during the first half of 2024. A project manager has been assigned to the
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development of the RFP, but staff are still being identified for management of the gas
conversion program.
CC&NE t. Accept Electric Vehicle Strategic Plan
Lead Dept. UTL/
PWD
Jonathan Abendschein
Status: Behind Schedule Estimated Completion: 2024
Project Description:
Develop a strategic plan for the provision of electric vehicle (EV) charging infrastructure to
support EV growth in Palo Alto. Define the City’s role and funding needs. Evaluate strategies
for efficient electrification and EV charging to reduce grid impacts. Coordinate with the
Reliability and Resiliency Strategic Plan on the electric grid impacts and benefits of EV
charging and strategies to mitigate the impacts and take advantage of opportunities.
Update:
The Council approved Policy Guidelines for this study on June 5, 2023 as part of the 2023-
2025 S/CAP Work Plan and approved funding for the study as part of the FY 2024 budget on
June 19, 2023. Staff discussed the scope of the study with the S/CAP Committee and Working
Group in August 2023 and released a consultant RFP soon after. Staff’s goal is to get the
consulting contract approved by early 2024. While the project is moving forward and making
progress, development of an RFP and contract award is a multi-month process. Council can
expect to approve the EV Strategic Plan in 2024.
HOUSING FOR SOCIAL AND ECONOMIC BALANCE
HS&EB ee. Advance local and state housing interests through a HCD-compliant Housing Element
(HSEB5)
Lead Dept. PDS Jonathan Lait
Status: Behind Schedule Estimated Completion: 2024
Project Description:
Prepare for Council adoption and California Department of Housing and Community Development
(HCD) certification of an updated housing element that advances the City’s housing policy interests,
meets applicable state housing requirements, and demonstrates compliance with the City’s regional
housing needs assessment. The Housing Element will incorporate prior Council direction on other
housing topics, including outstanding items from the 2018/2019 Housing Work Plan and recent renter
protection policy initiatives adopted by the City Council. The Housing Element will include an
implementation schedule to complete various policies over the next eight-year housing cycle.
Update:
The draft Housing Element was adopted by Council on May 8, 2023 and submitted to HCD for a 60-
day review.
The City received comments back from the State Housing and Community Development department
on August 4, 2023. HCD has identified a number of topics that require further attention and
refinement. Staff is reviewing the letter and is making adjustments to the housing sites inventory,
refinements to programs and providing additional information requested by HCD. It is anticipated the
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PTC will review housing element revisions in December or January 2024, followed by Council review in
Q1 2024.
HS&EB gg. Create new affordable housing opportunities through funding such as a housing
land trust, in particular, CalCHA
Lead Dept. PDS Clare Campbell
Status: On Hold Estimated Completion: 2024
Project Description:
Create new affordable housing opportunities through funding such as a housing land trust, in
particular, California Community Housing Agency (CalCHA).
Update:
This task has not been resourced due to staff vacancies and other competing Council priority
policy assignments.
HS&EB kk. Respond to various Grand Jury recommendations related to Housing (HSEB 6,
17, 24)
Lead Dept. PDS Clare Campbell
Status: Behind Schedule Estimated Completion: 2024
Project Description:
Recommendation 3. Submit a recommended communication strategy to the City Council to
increase community support for affordable housing.
Recommendation 4. Update format of future comprehensive plan and housing element
annual reports; conduct a ‘lessons learned’ analysis of the NVCAP process.
Recommendation 12b. requires further analysis and outreach to discuss with Santa Clara
County the possibility of entering a memorandum of understanding to leverage Measure A
funds.
Update:
Staff vacancies and competing priorities have resulted in a delay completing the Grand Jury
recommendations; one recommendation requires completion of the NVCAP process before
this task can be completed, potentially extending this task to 2024 Q3. Staff is not aware of
any legal deadlines impacted by extending and will engage the City Council Housing Ad Hoc
on the remaining outstanding recommendations; 3, 4, and 12b.
COMMUNITY HEALTH AND SAFETY
CH&S ww. Support visible police presence by ensuring stable staffing (recruiting and
retention) through hiring ahead program (CHS6)
Lead Dept. PD Andrew Binder
Status: Behind Schedule Estimated Completion: 2024
Project Description:
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As authorized by Council as part of the FY 2022 Mid-Year Budget review, maintain a pipeline
of recruits for police officer staffing including up to an additional five officers via a hire-ahead
program.
Update:
Currently, the Police Department has eleven Full Time Equivalent (FTE) Police Officer
positions that are vacant. Once the vacancies are filled, the next priority will be on the hire-
ahead program for the recruitment of an additional five officers. To date, there are 3 officers
in the field training program, 1 recruit in the police academy, 6 candidates in active
recruitment, and 2 recruits to start the academy at the end of October 2023. This objective
will not be completed in 2023 due to recruitment challenges in the profession and we are not
at staffing levels to enable the hire ahead program.
CH&S aaa. Approve updated Local Hazard Mitigation Plan and Community Wildfire
Protection Plan (CHS15)
Lead Dept. OES Ken Dueker
Status: Behind Schedule Estimated Completion: 2024
Project Description:
OES will be coordinating with the County on updates to emergency plans, including the Palo
Alto Local Hazard Mitigation Plan (LHMP).
Update:
The County submitted the Multi-jurisdictional Hazard Mitigation Plan on August 10, 2023 to
CalOES for state level review which could take up to 45 days, followed by a FEMA review
taking another 45 days. If approved at these levels, the County could have the plan back by
mid-November. At that time, staff can package the Palo Alto portion of the LHMP for council
adoption, which could occur by the end of December 2023.
The City’s interdepartmental fire management team in moving forward to integrate the
Community Wildfire Protection Plan (CWPP) and FFMP into a single document as both serve
the same interest for wildfire mitigation. This will require consultant support but is expected
to cost less than $50,000. The timeline is uncertain for the completion of this activity, which
may be in early 2024.
Council received a progress report on September 12, 2022. Extensive community
engagement is planned in the coming months, with final recommendations and adoption of
the plan targeted for 2023. The Santa Clara County planning cycle for updating the CWPP is
also pending.
Due to the integration of both plans, and the professional support needed to accomplish the
task, this objective is expected to be completed in 2024.
The above objectives will continue to be staff’s top priority and will be recommended in the
2024 Council Priority process for consideration.
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FISCAL/RESOURCE IMPACT
Although there are no additional direct resource impacts for the listed objectives during the
2023 calendar year, several other objectives were deferred during the FY2024 Budget Adoption
process for reconsideration at the FY 2024 midyear review. Those are identified with an * in
Attachment A and noted in Attachment B.
STAKEHOLDER ENGAGEMENT
In March 2023, Council was presented with community engagement plans based on the
selected 2023 Priorities and adopted objectives. There are various levels of community
engagement and communications to support each project.
ENVIRONMENTAL REVIEW
The Council informational report on this item is not a project as defined by CEQA because the
Council review of 2023 Priority Objectives is continuing administrative or maintenance activity.
CEQA Guidelines section 15378 (b)(2).
ATTACHMENTS
Attachment A: 2023 Council Priorities and Objectives Summary Table
Attachment B: 2023 Council Priorities and Objectives Q3 Update
APPROVED BY:
Ed Shikada, City Manager
Item 8
Item 8 Staff Report
Item 8: Staff Report Pg. 8 Packet Pg. 91 of 152
2023 City Council Priorities and Objectives
Calendar Q3 Update
#Objective Q1 Q2 Q3 Q4
ER
&T
CC&
NE
HS&
EB
CH&
S
Support Economic Recovery and Business Transition
a Adopt a comprehensive Economic Development Strategy x x x x
b Implement or upgrade electronic plan review software without interruption to the permitting process (ERT 9)x x x x
c Implement recommendations in Building and Permit Review Report conducted by the City Auditor x x x x
d Begin stakeholder engagement and implementation of new business tax (Measure K)x x x x x
Focus on Commercial Corridors, Downtown and California Ave
e Begin implementation of next phase of parklet regulations to the community x x
f Evaluate opportunities for New Parking Facilities in the University Ave Downtown and direct next steps (ERT 10)x x
g Align Business Improvement District (BID) priorities and investments to the Comprehensive Economic Development Strategy(ERT1)x x
h Select consultant to conduct a study that informs the development of a permanent car‐free streets ordinance (ERT 6 & 7)x x x
i Approve concept plan for University Ave streetscape and provide direction on capital project funding (ERT 5)x x
j Extend temporary closure for car free streets (ERT 6 & 7)x x x
k Provide direction on citywide retail zoning code changes including retail preservation and neighborhood commercial district specific
regulations and CUP thresholds (ERT 4, 12, 13)***x
Climate Change Protection
l Implement Advanced Metering Infrastructure (AMI) through purchase of meters/equipment for installation (CCPA7)***x
m Approve consultant to update Bike and Pedestrian Transportation Plan x x x
n Approve municipal code amendments for advancing S/CAP goals (specifically facilitate photovoltaic, energy storage system, electric
vehicle charging station, and heat pump (water/furnace) installations) (CCPA1)x x
o Approve S/CAP Update and 3‐year workplan (CCPA4)x x
p Begin first phase construction for grid modernization and consultant resources to plan for gas transition***x
q Install first 1,000 heat pump water heaters through the advanced pilot program and approve expanded full‐scale program x x
r Approve advanced pilot program for whole residential home electrification by the end of 2023 (targeted areas)x x
s Approve commercial rooftop HVAC electrification advanced pilot program x x
t Accept Electric Vehicle Strategic Plan***x x
u Accept Reliability and Resiliency Strategic Plan x x x
v Review preliminary draft S/CAP study discussing workplan resource needs and project funding opportunities x x
2 Engage youth in implementation of climate change initiatives, objectives, and goals x x x
7 Discuss plans for commercial dewatering requirements x
Climate Change Adaptation: Flood Protection
w Advance the San Francisquito Creek Flood Protection capital project (Reach 2) by the end of 2023, through Council’s JPA representation
and any Council approvals involved. x x x
x Secure funding and approve construction for the Newell Bridge replacement project; advocacy with State legislators educating on project
funding needs (CHS10)x x x
5 Determine next steps for sea level rise and adaptation plan*x x
Natural Environment x
y Approve operations and maintenance agreements with Valley Water purified water facility at LATP Area B (CCPA3)x x
z Adopt appropriate changes to the revised Tree Protection Ordinance x x
4 Initiate zoning changes consistent with the Comprehensive Plan regarding creek corridor setbacks x x x
6 Initiate evaluation of strategies to protect natural habitats such as bird safe glass, wildlife protection from light pollution, etc x x
Advance Renter Protection Policies
aa Approve access to rental units by establishing security deposit limits x x
bb Provide protections to renters by considering expansion of the just cause eviction ordinance (HSEB16)x x x
cc Implement a rental registry to inform future renter protection policies (HSEB15)x x x
Advance Housing Plans
dd Expand housing opportunities through the initiation of a Downtown Housing Plan: approval of project funding and a consultant contract
(HSEB10)x x x x
ee Advance local and state housing interests through a HCD‐compliant Housing Element (HSEB5)***x
ff Advance vision for North Ventura Coordinated Area by adopting a coordinated area plan (HSEB4)x x
gg Create new affordable housing opportunities through funding such as a housing land trust, in particular, CalCHA***x
hh Explore opportunities to regulate short term‐rentals with Council committee* x
8 Construct preliminary schedule for starting new coordinated area plans for San Antonio Road, California Ave, Downtown, and El Camino
Real x x x
Implement Housing Production Policies
ii Codify permanent standards related to the City local SB9 implementation ordinance (HSEB 14)x x
jj Approve adjusted Accessory Dwelling Unit (ADU) regulations to facilitate production and meet HCD requirements (HSEB9)x x
kk Respond to various Grand Jury recommendations related to Housing (HSEB 6, 17, 24)***x
ll Refine implementation of City’s SB9 objective development and urban lot split standards (HSEB 14)x x
mm Adopt an ordinance amending the development standards for Stanford‐owned housing opportunity sites x x
nn Rezone carryover housing opportunity sites for by‐right development when developed with 20% lower income affordable housing units x x
oo Adopt an ordinance to implement revised development standards for certain properties located in the GM/ROLM to allow for densities up
to 90 units/acre x x
9 Evaluate RHNA housing allocation and encourage housing production that reflects the needs of the community x x
10 Establish an ad hoc committee on housing to review housing policies x x
Support Unhoused Service Initiatives
pp Begin construction in partnership with LifeMoves for Palo Alto Homekey project to provide transitional housing and services for unhoused
residents (HSEB13)x x x
qq Develop a citywide strategy to connect unhoused residents to housing and services*x x
Mental & Physical Health and Belonging
rr Complete reopening libraries to budgeted level (remains below pre‐pandemic levels) (CHS5)x x
ss Approval of multi‐year agreement for provisions of animal shelter services (CHS1)x x
tt Expand and enhance community special events with focus on inclusion (linked to activities in ERT)x x x
uu Approve agreement with PAUSD on long term use of the Cubberley property (CHS2)x x
vv Evaluate Recreation Wellness Center Feasibility (CHS14)x x
11 Evaluate increasing HSRAP funding during the FY 2024 budget process**x x
12 Facilitate a location for La Comida in North Palo Alto x x
13 Increase support and funding for youth mental health*x
Invest in Reliable Safety Infrastructure and Systems
ww Support visible police presence by ensuring stable staffing (recruiting and retention) through hiring ahead program (CHS6)***x x
xx Support a diverse community through extension of the Psychiatric Emergency Response Team (PERT) program services to the community
through affirmation of continued City financial support x x
yy Update without interruption 911 dispatch system (CAD provider) once selected through procurement process (CHS4)x x
zz Begin construction of the Gas Main Replacement Project 24B x x
aaa Approve updated Local Hazard Mitigation Plan and Community Wildfire Protection Plan (CHS15)***x x
bbb Implement Foothills Fire Management Plan (CHS3)x x x
ccc Advance final construction phase of Public Safety Building and begin preparations for move‐in (CHS9)x x
ddd Approve next steps for the rebuild of Fire Station No. 4 project (specifically design and entitlements) (CHS17)x x
eee Approve resources and consultant to study and develop seismic and resiliency ordinance (CHS20)x x x
Reduction of Noise and Air Quality Pollution x
fff Update gas‐powered leaf blower ordinance and enforcement plan (CHS16)x x x
ggg Implement a strategy for the provision and promotion of unleaded fuel at Palo Alto Airport (CHS12)x x
hhh Approval of quiet zone implementation (rail/train crossings)x x x
iii Continue engagement with San Francisco Airport on SFO's Ground Based Augmentation System (GBAS) project and other potential
opportunities to decrease SFO noise impacts on Palo Alto (CHS11)x x x x
*Council objective to be reconsidered in 2024 Midyear review
**Council objective referred back to committee for review
***Council objective to be reconsidered in 2024 Priority Process
Economic Recovery & Business Transition (ER&BT)
CLIMATE CHANGE & THE NATURAL ENVIRONMENT (CC&NE)
HOUSING FOR SOCIAL & ECONOMIC BALANCE (HS&EB)
COMMUNITY HEALTH & SAFETY (CH&S)
Estimated
Completion
Council Priority
Crossover
ATTACHMENT A
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Attachment A - 2023
Council Priorities &
Objectives Summary
Table (Q3)
Item 8: Staff Report Pg. 9 Packet Pg. 92 of 152
ATTACHMENT B
2023 Council Priorities and Objectives Update
Calendar Q3 Update (July-September)
OVERALL COUNCIL PRIORITY & OBJECTIVES PROGRESS
ECONOMIC RECOVERY & BUSINESS TRANSITION (ERBT)
ERBT a. Adopt a comprehensive Economic Development Strategy
Lead Dept. CMO Steve Guagliardo
Status: Completed Estimated Completion: Q3
Project Description:
Adopt a comprehensive Economic Development Strategy that will provide foundational guiding
principles and framework to inform, and guide continued wok to support and actively promote the
City’s economic vitality.
Update:
On August 14, the City Council accepted and approved the comprehensive Economic Development
Strategy prepared by Streetscape, the City’s consultant for the report. Streetsense was contracted to
develop a market-informed economic development strategy that will ensure Palo Alto's post-COVID
competitiveness by identifying impactful public sector interventions, policies and investments for
which there is both need and consensus for action. The report included three guiding principles and
several recommendations for staff and partners throughout the community to enhance economic
vibrancy.
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Objectives Q3 Update
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ATTACHMENT B
ERBT b. Implement or upgrade electronic plan review software without interruption to the
permitting process (ERT 9)
Lead Dept. PDS Jessica Setiawan
Status: On Track Estimated Completion: Q4
Project Description:
Conduct a Request for Proposals (RFP) to secure a vendor to provide electronic plan review services
that integrates with the City's Accela permitting system.
Update:
A Request for Proposals (RFP) was posted on August 22, 2022, and vendor selection made in the
Spring 2023. An extension of existing Electronic Plan Review software was approved through end of
2023. The City Council action to award the new contract is expected to be brought forward by the
fourth quarter.
ERBT c. Implement recommendations in Building and Permit Review Report conducted by the City
Auditor
Lead Dept. PDS Sarah McRee
Status: Behind Schedule Estimated Completion: Q4
Project Description: In June 2022, an audit was completed on the permitting process in which the
Office of the City Auditor identified fifteen recommendations and opportunities for improvement.
Planning and Development Services drafted action plans for each item for implementation of
corrective actions.
Update:
Staff vacancies have delayed implementation of some audit recommendations, but progress has been
made on most of these actions to implement the permit process. In summer 2023, the Planning and
Development Services (PDS) released a new webpage to improve navigation for permit application
submittal, published additional user guides and updated application submittal checklists.
Various pilot initiatives have been implemented to facilitate more timely resolution of real-time
construction related issues, over the counter issuance of minor permits and restoration of in-person
or virtual appointments to test most efficient methods for application in-take process. This effort is
providing information that will be used to formalize new procedures and technological upgrades and
improve application processing.
By Q4 staff will complete training on customer service expectations to enhance the customer
experience and reduce complaints. Currently, PDS staff is available to the public in person at the
development center Monday through Thursday and virtually every Friday. The audit includes several
recommendations with tiered target completion dates. The next project milestone is to provide a
status update to the Policy & Services committee in November.
ERBT d. Begin stakeholder engagement and implementation of new business tax (Measure K)
Lead Dept. ASD Christine Paras
Status: Completed Estimated Completion: Q4
Project Description:
Measure K was passed by Palo Alto residents to establish a tax on businesses operating in the city.
The tax levies seven and one-half cents per month for each square foot of space occupied by
businesses larger than 10,000 square feet (excludes grocery stores).
Update:
The City Council adopted advisory spending guidelines indicating its intent to spend tax proceeds on
train crossing and rail safety, affordable housing and unhoused services, and public safety services. In
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June 2023, Council approved the selection of a vendor for administration of the tax and Business
Registry Certificate Program.
Staff has completed several community engagement opportunities and information sessions will be
hosted through December. A utility bill mailer was sent to commercial customers sharing the
implementation schedule and online resources available. The business tax filing and payment portal
went live in October 2023.
ERBT e. Begin implementation of next phase of parklet regulations to the community
Lead Dept. PW/PDS/CMO/OOT
Status: Completed Estimated Completion: Q3
Project Description:
In order to support business operations during the pandemic, outdoor dining and retail were allowed
to extend outdoors. A temporary parklet program within City rights-if-way was adopted by Council to
facilitate economic recovery efforts and provide guidance on structure regulations. The next phase of
the program formalizes the parklet program and creates a permanent ordinance.
Update:
The parklet program and permanent ordinance were completed on September 11, 2023. The next
phase of this project is implementation of the parklet standards which involves rolling out the
approved regulations to the parklet owners and have all parklets in compliance by March 31, 2024.
Additionally, the City Council directed staff to work with the Architectural Review Board (ARB) to
prepare a prototype parklet standard to encourage consistency in design and facilitate new parklets in
the approved areas. The timeline to complete this portion of the assignment is Q3 2024.
ERBT f. Evaluate opportunities for New Parking Facilities in the University Ave Downtown and direct
next steps (ERT 10)
Lead Dept. ASD Sonny Tong
Status: On Track Estimated Completion: Q4
Project Description:
Explore the development of parking facilities in the University Ave Downtown using parking in-lieu
fees; potentially in conjunction with an affordable housing project, as directed by the City Council
December 6, 2021 (CMR #13633).
Update:
A public study session with the City Council is anticipated in the fourth quarter.
ERBT g. Align Business Improvement District (BID) priorities and investments to the Comprehensive
Economic Development Strategy (ERT1)
Lead Dept. CMO Steve Guagliardo
Status: On Hold Estimated Completion: Q4
Project Description:
Work with the Chamber of Commerce and Palo Alto Downtown Business and Professional Association
(PADBPA) on the FY 2023 program and transfer of BID management.
Update:
This item is currently on hold pending discussion of desired use of funds by the BID with the business
community. Once resolved, Staff will resume work on this item. Staff anticipates working in
partnership with the Chamber to re-establish support for the BID, explore options for the future of
BID management, and re-instituting the BID levy. On June 6, 2022, Council voted not to levy
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Objectives Q3 Update
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ATTACHMENT B
assessments against businesses within the Downtown Palo Alto Business Improvement District for FY
2023.
ERBT h. Select consultant to conduct a study that informs the development of a permanent car-free
streets ordinance (ERT 6 & 7)
Lead Dept. OOT Ozzy Arce
Status: Completed Estimated Completion: Q3
Project Description:
Select a consultant to conduct an Alternatives Study to look at different street configurations,
alternatives, and activations for California Avenue and Ramona Street. The study would also
recommend a design strategy for the streets and explore whether the streets should remain closed or
should open to vehicular traffic.
Update:
Work on short-term demonstration projects and operational improvements are underway. Request
for Proposals for consultant services for the Alternatives Study was released on July 3, 2023, and
proposals were due August 1, 2023. Staff anticipates presenting a contract for City Council
consideration tentatively on November 6, 2023.
ERBT i. Approve concept plan for University Ave streetscape and provide direction on capital
project funding (ERT 5)
Lead Dept. PWD Holly Boyd
Status: On Track Estimated Completion: Q4
Project Description:
Complete data collection, develop concept alternatives, and prepare cost estimates, while
implementing the community engagement strategy approved by Council in the consultant contract.
Update:
Staff has completed data collection and field surveys, and held focus group meetings, a community
workshop, and an online survey to gather community needs and input to develop project alternatives.
Staff is reviewing concept plan line options and will hold additional outreach meetings to gain
consensus on a preferred option.
ERBT j. Extend temporary closure for car-free streets (ERT 6 & 7)
Lead Dept. OOT Ozzy Arce
Status: On Track Estimated Completion: Q4
Project Description:
In the interim, as car-free street study is underway, extend temporary closure for car-free streets for
California Avenue and Ramona Street.
Update:
staff will seek direction from Council on the temporary closure of California Avenue and Ramona
Street to extend past the current sunset date of December 31, 2023, on November 6, 2023.
ERBT k. Provide direction on citywide retail zoning code changes including retail preservation and
neighborhood commercial district specific regulations and CUP thresholds (ERT 4, 12, 13)
Lead Dept. PDS Amy French
Status: On Track Estimated Completion: 2024
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Project Description:
Council directed staff and the Planning and Transportation Commission (PTC) to evaluate and propose
changes to enable Diverse Retail Uses in more retail sites, including food, medical, educational,
financial, and professional office uses citywide or by district, and evaluate ways the City can curate a
strong retail mix.
Update:
As part of the development of a comprehensive economic development strategy (ERT2), Streetsense
conducted a retail market analysis and outlined retail best practices and recommendations. In
addition to Streetsense, Michael Baker International consulting firm is also concluding its findings on
retail preservation and commercial district-level specific retail recommendations. Data gathering,
including stakeholder interviews, are underway. As this work develops, next steps will include draft
regulations for Planning and Transportation Commission (PTC) and Council review. At its August 14
meeting, Council expanded the scope of work for this project to include the creation of a Council ad
hoc and discussion of near and midterm initiatives to enhance retail land use and hotel use. Given
the extended scope directed by Council, the project is on track for an updated estimated completion
date of Q2 2024.
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Objectives Q3 Update
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ATTACHMENT B
CLIMATE CHANGE & THE NATURAL ENVIRONMENT (CC&NE)
CC&NE l. Implement Advanced Metering Infrastructure (AMI) through purchase of
meters/equipment for installation (CCPA7)
Lead Dept. UTL Dave Yuan
Status: Behind Schedule Estimated Completion: 2024
Project Description:
The City of Palo Alto Utilities (CPAU) is upgrading the City’s utility metering system with electronic
meters to utilize grid technology called Advanced Metering Infrastructure (AMI). AMI is becoming a
standard in the utilities industry, enabling interval utility usage data and time-of-use rates for homes
and businesses to the benefit of electric, natural gas, and water utility customers. CPAU will replace
old legacy electric meters with new advanced electric meters and retrofit existing water and gas
meters with AMI radios, starting with residential meters.
Update:
The City has begun full deployment of residential AMI meters. Thus far, 2,500 of 75,000 electric, gas,
and water AMI meters have been installed. Depending on commercial availability of meters and radio
endpoints, CPAU will complete residential AMI deployment by end of 2024. Due to supply chain
issues, the completion of electric commercial AMI meters has been moved out to mid-2025.
Customers with AMI meters will be able to view their interval consumption pattern in the utilities
customer portal MyCPAU and receive water leak alerts starting in Q1 2024.
The City is partnering with Utility Partners of America (UPA) to exchange electric meter with a new
advanced electric meter and retrofit existing gas and water meters with AMI radios.
CC&NE m. Approve consultant to update Bike and Pedestrian Transportation Plan
Lead Dept. OOT Ozzy Arce
Status: Completed Estimated Completion: Q2
Project Description:
Approve the contract for consultant services to assist with the update of the City’s Bicycle and
Pedestrian Transportation Plan, which was last updated in 2012.
Update:
The City Council approved the contract with the consultant Kittelson & Associates on June 19, 2023.
The kickoff meeting with Kittelson occurred on July 25, 2023, the project is anticipated to take 18-24
months (summer 2023 through summer 2025).
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Objectives Q3 Update
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ATTACHMENT B
CC&NE n. Approve municipal code amendments for advancing S/CAP goals (specifically facilitate
photovoltaic, energy storage system, electric vehicle charging station, and heat pump
(water/furnace) installations) (CCPA1)
Lead Dept. PDS Amy French
Status: Completed Estimated Completion: Q3
Project Description:
Identify municipal code amendments that may impede installation of electrification systems and
recommend changes after public review before the Utilities Advisory Commission (UAC) and Planning
and Transportation Commission (PTC) and transmit recommendations to the City Council.
Update:
In response to PTC recommended ordinance changes in December 2022, additional research and
recommendations pertaining to setbacks for presumptive compliance with the City’s noise ordinance,
and the consolidation of a single ordinance, was reviewed in September 2023. At the time of this
report, final recommendations were adopted by the Council in October 2023, and is therefore
considered completed.
CC&NE o. Approve S/CAP Update and 3-year workplan (CCPA4)
Lead Dept. PWD Christine Luong
Status: Completed Estimated Completion: Q2
Project Description:
Conclude the work of the S/CAP Ad Hoc Committee and complete the S/CAP update in fall 2022, with
Council approval of the S/CAP Goals and Key Actions and strategy for residential electrification and
expected Council adoption of the full S/CAP update and CEQA document in spring 2023.
Update:
The Council meetings on September 27, 2022, and October 3, 2022, included comprehensive
discussions on the S/CAP update and the S/CAP Ad Hoc Committee’s work and recommendations,
including results of community engagement efforts to date. Council accepted the full set of the draft
S/CAP Goals and Key Actions; approved multiple actions allowing the new Advanced Heat Pump
Water Heater Pilot Program to commence; and adopted a new goal to achieve carbon neutrality by
2030. At its June 5, 2023, meeting, Council adopted the updated S/CAP, approved certification of the
S/CAP under the California Environmental Quality Act, and approved the S/CAP Three-Year Work Plan.
CC&NE p. Begin first phase construction for grid modernization and consultant resources to plan for
gas transition
Lead Dept. UTL Tomm Marshall
Status: Behind Schedule Estimated Completion: 2024
Project Description:
The City’s planned grid modernization project includes the modernization of the systematic grid and
incorporates the Goals and Key Actions from the Grid Modernization Study to prepare the grid for
widespread electrification in support of the S/CAP goal of an 80 percent carbon reduction by 2030. A
study is also planned to evaluate the financial and infrastructure needs to manage the gas utility as
gas sales decline.
Update:
The first phase of the Grid Modernization Study has concluded, it evaluated capacity requirements
needed for electrification. Design began for construction of a first neighborhood modernization
project, but the start of construction is delayed to coordinate the feasibility of efficiencies in
alignment with Fiber to the Premise construction. A discussion is scheduled with the Finance
Committee and City Council during November and December 2023 on the Fiber to the Premise
project. Current expected start date is early 2024.
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ATTACHMENT B
An initial budget has been approved to start a gas transition study and staff is currently developing a
work plan for the transition. Staff is also working to retain consulting services to develop a model of
the gas system to analyze future gas infrastructure requirements and evaluate potential impacts of
future modifications to the gas system. Staff has started to prepare an RFP to retain consulting
services and anticipates commencing work on the model development during the first half of 2024. A
project manager has been assigned to the development of the RFP, but staff are still being identified
for management of the gas conversion program.
CC&NE q. Install first 1,000 heat pump water heaters through the advanced pilot program and
approve expanded full-scale program
Lead Dept. UTL Jonathan Abendschein
Status: On Track Estimated Completion: Q4
Project Description:
Launch the Advanced Heat Pump Water Heater Pilot Program approved by Council and achieve 1,000
heat pump water heater installations (if supported by demand) by the end of 2023. Develop and
seek approval for an expanded water heater program.
Update:
The Pilot Program was officially launched in March of 2023. Interest has been very high, however staff
turnover at the City and at both companies contracted with the City to operate the program made it
difficult to process the high number of signups. Most of the backlogs have been cleared as of Q3 and
outreach has ramped up to generate more signups. Currently the program is seeing 5-15 new signups
each week, but significantly higher demand is needed to result in 20 installations per week, the
amount needed to reach its goal of 1,000 water heater replacements each year. In Q4 of 2023, staff
plans to engage with the S/CAP Committee and Working Group on the design for the next phase of
the program.
CC&NE r. Approve advanced pilot program for whole residential home electrification by the end of
2023 (targeted areas)
Lead Dept. UTL Jonathan Abendschein
Status: On Track Estimated Completion: Q4
Project Description:
In parallel with the overall S/CAP process, the S/CAP Ad Hoc Committee and four working group
teams will develop a strategy to advance residential electrification for Council’s approval and begin
implementation of a pilot program in modernized neighborhoods in 2024.
Update:
When implementing the Advanced Heat Pump Water Heater Pilot Program, staff included provisions
in the contracts with contract program operators that will enable them to provide assessments and
technical assistance for a whole home residential electrification program in modernized
neighborhoods. Council has approved participation in the State’s GoGreen Home Financing Program
to provide financing. Staff plans to have a program approved by the end of 2023 to provide these
features in modernized neighborhoods and will begin design of a more comprehensive full-service
whole home electrification program working with the S/CAP Ad Hoc Committee and Working Group
in 2024.
CC&NE s. Approve commercial rooftop HVAC electrification advanced pilot program
Lead Dept. UTL Jonathan Abendschein
Status: On Track Estimated Completion: Q4
Project Description:
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ATTACHMENT B
Continue to run existing pilot program to do a limited number of pilot projects with commercial
kitchen electrification and electrification of commercial air conditioning (specifically rooftop packaged
heating, ventilation, and air conditioning (HVAC) units). Design an advanced pilot program focused on
rooftop HVAC meant to prove a scalable, high participation business model.
Update:
A business pilot program for electrification of commercial kitchens and heating, ventilation, and air
conditioning (HVAC) units is currently underway and early projects are being evaluated. The results
will be used to inform a future larger scale advanced pilot program for rooftop HVAC. Staff has
researched and analyzed options to prepare for an advanced pilot program. Staff intends to seek
Council approval of program design guidelines by the end of 2023 and issue an RFP for an operator for
the new program design, with additional Council approvals and program implementation in 2024.
CC&NE t. Accept Electric Vehicle Strategic Plan
Lead Dept. UTL/PWD Jonathan Abendschein
Status: Behind Schedule Estimated Completion: 2024
Project Description:
Develop a strategic plan for the provision of electric vehicle (EV) charging infrastructure to support EV
growth in Palo Alto. Define the City’s role and funding needs. Evaluate strategies for efficient
electrification and EV charging to reduce grid impacts. Coordinate with the Reliability and Resiliency
Strategic Plan on the electric grid impacts and benefits of EV charging and strategies to mitigate the
impacts and take advantage of opportunities.
Update:
The Council approved Policy Guidelines for this study on June 5, 2023, as part of the 2023-2025 S/CAP
Work Plan and approved funding for the study as part of the FY 2024 budget on June 19, 2023. Staff
discussed the scope of the study with the S/CAP Committee and Working Group in August 2023 and
released a consultant RFP soon after. Staff’s goal is to get the consulting contract approved by early
2024. While the project is moving forward and making progress, development of an RFP and contract
award is a multi-month process. Council can expect to approve the EV Strategic Plan in 2024.
CC&NE u. Accept Reliability and Resiliency Strategic Plan
Lead Dept. UTL Jonathan Abendschein
Status: On Track Estimated Completion: Q4
Project Description:
Develop a strategic plan for the integration of new technologies such as distributed energy resources
(solar, battery to grid, battery storage, and self-forming grids), load management and control
technologies, and advanced grid automation and protection into the City’s electric distribution system
with the goal of improving electric grid reliability and utility customer and neighborhood resiliency.
Coordinate with the EV Strategic Plan to identify the role of EV charging (including EV to grid and EV
to home) in electric grid reliability and resiliency.
Update:
The Council approved Policy Guidelines for this study on June 5, 2023, as part of the 2023-2025 S/CAP
Work Plan and approved funding for the study as part of the FY 2024 budget on June 19, 2023. A
follow-up discussion on the scope of the study was had with the Utilities Advisory Commission in
September 2023. As a result, the project has been broken up into four phases. The first two phases of
the study are expected to be completed by the end of 2023, and aspects related to home, and
neighborhood resiliency and efficient electrification will extend into 2024. An RFP for consulting
services will be issued to help with the home and neighborhood resiliency phase.
Item 8
Attachment B - 2023
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Objectives Q3 Update
Item 8: Staff Report Pg. 18 Packet Pg. 101 of 152
ATTACHMENT B
CC&NE v. Review preliminary draft S/CAP study discussing workplan resource needs and project
funding opportunities
Lead Dept. UTL Jonathan Abendschein
Status: On Track Estimated Completion: Q4
Project Description:
Complete an analysis of the funding needs for full scale implementation of the S/CAP Climate Action
Goals and Key Actions, including identifying and estimating costs for additional emissions reductions
to achieve the 80x30 goal. Identify potential funding sources.
Update:
The Council approved funding for the study as part of the FY 2024 Budget on June 19, 2023. Staff
discussed the scope of the study with the S/CAP Committee and Working Group in August 2023 and
released a consultant RFP soon after. Staff anticipates Council consideration of a consulting contract
by the end of 2023.
CC&NE 2. Engage youth in implementation of climate change initiatives, objectives, and goals
Lead Dept. PWD Christine Luong
Status: On Track Estimated Completion: Q4
Project Description:
At the October 3, 2022 Council meeting, Council expressed the need to engage youth more actively in
sustainability and climate action initiatives. Engaging youth is a key component of S/CAP
implementation.
Update:
Staff are engaging youth in several ways: 1. Staff invited a high school student to join the
Sustainability and Climate Action Plan (S/CAP) Ad Hoc Working Group to provide a youth perspective
on the City’s sustainability and climate action work. The student is an active participant in the S/CAP
Ad Hoc Working Group. 2. On-going discussions with leadership of the Palo Alto Student Climate
Coalition on best ways to partner on sustainability and climate action. 3. Staff initiated a “Climate
Action & Youth Engagement” special project to develop a strategy to engage youth in implementation
of the S/CAP and its associated initiatives, and partner with Palo Alto Unified School District to
develop a strategy to educate PAUSD students about the benefits of climate action and the various
City programs supporting climate action. 4. Youth outreach and engagement is a key component of
both the electrification marketing plan and the overall sustainability and climate action
communications strategy.
CC&NE 7. Discuss plans for commercial dewatering requirements
Lead Dept. PWD Holly Boyd
Status: Dropped Estimated Completion: Q4
Project Description: Review impacts of new dewatering requirements and potentially make
suggestions for improvements.
Update: This project was not selected by the Finance Committee to move forward. There were not
enough commercial projects in construction since the new regulations took effect to provide a good
data set.
CC&NE w. Advance the San Francisquito Creek Flood Protection capital project (Reach 2) by the end
of 2023, through Council’s JPA representation and any Council approvals involved.
Lead Dept. PWD Holly Boyd
Status: Behind Schedule Estimated Completion: Q4
Project Description:
Item 8
Attachment B - 2023
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Objectives Q3 Update
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ATTACHMENT B
Advance the San Francisquito Creek Flood Protection capital project (Reach 2) by the end of 2023,
through Council’s JPA representation and any Council approvals involved.
Update:
Staff continues to work with the San Francisquito Creek Joint Powers Board (SFCJPA) member
agencies to coordinate other Reach 2 projects with the Newell Road Bridge replacement project. The
remaining Reach 2 projects (top of bank, creek-widening, Pope-Chaucer Bridge Replacement) are on
hold pending creek model redesign based on recent winter storm results. SFCJPA hired a consultant
for a third-party review of the hydraulic model for the Reach 2 project design work in September.
CC&NE x. Secure funding and approve construction for the Newell Bridge replacement project;
advocacy with State legislators educating on project funding needs (CHS10)
Lead Dept. PWD Holly Boyd
Status: On Track Estimated Completion: Q4
Project Description:
Complete design and right-of-way acquisition, obtain regulatory permits, and seek programming of
construction funding by Caltrans to allow construction to begin in calendar year 2024.
Update:
Staff received 100% design and cost estimates in March 2023 and submitted updated funding
requests for approval to Caltrans for revised construction estimate, additional right-of-way
compensation and to accelerate construction funding to Fiscal Year (FY) 2024 (from FY 2026).
Regulatory permits for work in the creek are also required. A revised permit application for Newell
Road Bridge is being finalized and will be submitted in August. The right-of-way appraisal and
acquisition started in January 2023. Staff and consultants are working with the individual property
owners to secure permanent and temporary easements by the end of December 2023. Right-of-way
and permitting is anticipated to be completed by the end of 2023, with bidding of the project in early
2024 and construction to start in summer 2024. Third quarter activities include sending out offer
letters to property owners to secure easements.
CC&NE 5. Determine next steps for sea level rise and adaptation plan
Lead Dept. PWD Julie Weiss
Status: On Hold Estimated Completion: 2024
Project Description:
Determine next steps for Sea Level Rise Adaptation Plan pending memo anticipated from United
States Army Corp of Engineers (USACE) explaining plans and timeline for shoreline levee
improvements.
Update:
Staff anticipates the USACE memo this summer. In the interim, staff is working on sea level rise and
shallow groundwater mapping tools for staff planning use and is considering a public meeting about
shoreline improvements and timeline pending information received from USACE.
While preliminary work continues to advance sea level rise and adaptation readiness, more significant
and resource intensive work has been deferred by Council for re-evaluation at FY 2024 midyear
review.
CC&NE y. Approve operations and maintenance agreements with Valley Water purified water
facility at LATP Area B (CCPA3)
Lead Dept. PWD Karin North
Status: Behind Schedule Estimated Completion: Q4
Project Description:
Item 8
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In partnership with Valley Water, discuss the project at a Council study session, and negotiate
agreements between the City and Valley Water necessary for the project to proceed.
Update:
The purpose of the project is to improve the quality of recycled water produced by the City and
increase water reuse at the regional level. On April 10, 2023, Council approved the Funding
Agreement with Valley Water for reimbursement of costs incurred in support of the Purified Water
Project. In June 2023, Valley Water and Palo Alto’s Joint Recycled Water Committee met to discuss
updates on recycled water and purified water projects within Santa Clara County.
Staff will return to Council in late 2023 for a closed session to discuss lease terms and plans on
returning to Council early 2024 with the draft lease agreements and draft operations and
maintenance terms. The development of new agreements is taking longer than anticipated. The
operations and maintenance agreements are also dependent on information from the Regional Water
Quality Control Board regarding discharge requirements, and the state is not expected to release that
information until later in 2023.
CC&NE z. Adopt appropriate changes to the revised Tree Protection Ordinance
Lead Dept. PWD Peter Gollinger
Status: On Track Estimated Completion: Q4
Project Description:
Consider potential improvements to the revised Tree Protection Ordinance as directed by Council at
its adoption, with review by Planning and Transportation Commission (PTC) and Parks and Recreation
Commission (PRC) before Council consideration.
Update:
On June 19, 2023, Council held a study session reviewing the implementation of the revised Tree
Protection Ordinance to date. Staff is evaluating feedback from the study session and will review
potential improvements to the ordinance with PTC and PRC before returning to Council.
CC&NE 4. Initiate zoning changes consistent with the Comprehensive Plan regarding creek corridor
setbacks
Lead Dept. PDS Clare Campbell
Status: Not Started Estimated Completion: Q4
Project Description: Council directed staff to prepare an amendment to Title 18 to implement
Comprehensive Plan Programs N3.3.1 and N3.3.2. These programs would explore a 150’ setback along
natural creeks in open space and rural areas west of Foothill Expressway with some exceptions and
provide a border of native riparian vegetation at least 30’ along the creek bank. This project will also
include stakeholder involvement to establish appropriate setback requirements that reflect the
varying natural and channelized conditions along creeks east of Foothill Expressway.
Update:
Staff will seek on-call consultant support to begin this initiative in Fall 2023 with anticipated
completion before the end of FY 2024.
CC&NE 6. Initiate evaluation of strategies to protect natural habitats such as bird safe glass, wildlife
protection from light pollution, etc
Lead Dept. PDS Rachael Tanner
Status: Completed Estimated Completion: Q3
Project Description:
Strengthen and extend protections to local and migrating birds with changes to bird-safe glass in new
development and reduce nighttime light pollution with updated standards intended to improve
wildlife habitat conditions.
Item 8
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Objectives Q3 Update
Item 8: Staff Report Pg. 21 Packet Pg. 104 of 152
ATTACHMENT B
Update:
The City Council appropriated funds in the current fiscal year to support this project. Staff has
initiated work and is beginning the conduct community outreach and information gathering phase;
updated standards to be reviewed by the PTC and ARB before presenting an ordinance to Council in
2024.
HOUSING FOR SOCIAL & ECONOMIC BALANCE (HS&EB)
HS&EB aa. Approve access to rental units by establishing security deposit limits
Lead Dept. PDS Clare Campbell
Status: Completed Estimated Completion: Q2
Project Description:
Prepare an ordinance to establish a security deposit limit at 1.5 times the monthly rent.
Update:
Council completed 2nd reading of Ordinance 5589 June 19, 2023.
HS&EB bb. Provide protections to renters by considering expansion of the just cause eviction
ordinance (HSEB16)
Lead Dept. PDS Rebecca Atkinson
Status: Completed Estimated Completion: Q3
Project Description:
Prepare an ordinance to amend just cause eviction regulations to include properties built within the
last 15 years, excluding units occupied less than a year or single-family homes not owned by a
corporation or renters who live in a duplex when one unit is owner occupied.
Update:
Ordinance 5589 came into effect July 20, 2023, to extend just cause eviction protections to more
rental units in Palo Alto than what were currently covered by State law, namely by extending
protections to properties receiving a certificate of occupancy within the last 15 years. City Council
took action on August 7, 2023, to extend eviction protections to more rental units by reducing the
minimum time period required for renters to qualify for just cause eviction protections.
HS&EB cc. Implement a rental registry to inform future renter protection policies (HSEB15)
Lead Dept. PDS Rebecca Atkinson
Status: On Track Estimated Completion: Q4
Project Description:
Item 8
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Objectives Q3 Update
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ATTACHMENT B
Begin discussion with Policy and Services Committee to expand, redesign, and recommend an
implementation strategy for an updated rental survey including, proposed fees, resources, and a
timeline.
Update:
On September 13, 2022, the Policy and Services Committee was presented with recommendations to
expand, redesign, and recommend an implementation strategy for an updated rental survey including
proposed fees, resources, and timeline.
In February 2023, the City released a Request for Proposals (RFP) for Rental Registry Program
software solutions and professional services. Subsequently, the City received proposals and is
currently in the evaluation and selection process.
In May 2023, both the Human Relations Commission (HRC) and the Planning & Transportation
Commission (PTC) provided recommendations on the Rental Registry Program and draft Ordinance.
The City Council Housing Ad Hoc Committee reviewed the draft program on August 31, 2023 and City
Council will review the program and ordinance in November.
HS&EB dd. Expand housing opportunities through the initiation of a Downtown Housing Plan:
approval of project funding and a consultant contract (HSEB10)
Lead Dept. PDS Clare Campbell
Status: Behind Schedule Estimated Completion: Q4
Project Description:
Council to consider accepting an $800K grant from Metropolitan Transportation Commission (MTC) to
develop a downtown housing master plan intended to spur greater housing production in proximity
to fixed transit centers.
Update:
In April 2022 Council authorized the City Manager to accept an $800K grant from Metropolitan
Transportation Commission (MTC) to develop a downtown housing master plan intended to spur
greater housing production in proximity to fixed transit centers. Council also initiated a planning
process, directing staff to identify goals for a Downtown Housing Plan.
An RFP was re-released in February 2023 and a consultant has been identified. The consultant
contract award is expected to be presented to Council in Fall 2023. This project has been delayed one
quarter due to insufficient responses to the initial RFP and recognition that additional funds may be
required to initiate the assignment. In addition, PDS staffing resources were impacted with a recent
vacancy causing a slow-down in progress on task.
HS&EB ee. Advance local and state housing interests through a HCD-compliant Housing Element
(HSEB5)
Lead Dept. PDS Jonathan Lait
Status: Behind Schedule Estimated Completion: 2024
Project Description:
Prepare for Council adoption and California Department of Housing and Community Development
(HCD) certification of an updated housing element that advances the City’s housing policy interests,
meets applicable state housing requirements, and demonstrates compliance with the City’s regional
housing needs assessment. The Housing Element will incorporate prior Council direction on other
housing topics, including outstanding items from the 2018/2019 Housing Work Plan and recent renter
protection policy initiatives adopted by the City Council. The Housing Element will include an
implementation schedule to complete various policies over the next eight-year housing cycle.
Item 8
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Update:
The draft Housing Element was adopted by Council on May 8, 2023 and submitted to HCD for a 60-
day review.
The City received comments back from the State Housing and Community Development department
on August 4, 2023. HCD has identified a number of topics that require further attention and
refinement. Staff is reviewing the letter and is making adjustments to the housing sites inventory,
refinements to programs and providing additional information requested by HCD. It is anticipated the
PTC will review housing element revisions in December or January 2024, followed by Council review in
Q1 2024.
HS&EB ff. Advance vision for North Ventura Coordinated Area by adopting a coordinated area plan
(HSEB4)
Lead Dept. PDS Clare Campbell
Status: On Track Estimated Completion: Q4
Project Description:
Create a coordinated area plan for North Ventura to facilitate development of a walkable, mixed-use
neighborhood with multifamily housing, commercial services, and well-defined connections to transit,
bicycle, and pedestrian facilities.
Update:
Staff conducted study sessions with the PTC and Architectural Review Board (ARB) to review the draft
NVCAP in early June. Staff plans for an additional study session with the ARB late summer. Following
this, the CEQA document will be finalized and released for public comment early Fall. Council
certification of the CEQA document and Plan adoption is targeted for December 2023. The NVCAP
document is based on latest Council direction and does not take into consideration any future action
the City Council may take with respect to the Development Agreement application for 340 Portage. If
alignment between a future action on the DA and NVCAP is desired, additional consultant funding
would be required and the estimated completion date would adjust to Q2 2024.
HS&EB gg. Create new affordable housing opportunities through funding such as a housing land
trust, in particular, CalCHA
Lead Dept. PDS Clare Campbell
Status: On Hold Estimated Completion: 2024
Project Description:
Create new affordable housing opportunities through funding such as a housing land trust, in
particular, California Community Housing Agency (CalCHA).
Update:
This task has not been resourced due to staff vacancies and other competing Council priority policy
assignments.
HS&EB hh. Explore opportunities to regulate short term-rentals with Council committee
Lead Dept. PDS Clare Campbell
Status: On Hold Estimated Completion: 2024
Project Description:
Explore opportunities to regulate short term-rentals with Council committee.
Update:
This task has not been resourced due to staff vacancies and other competing policy assignments. Per
Council direction, staff will revisit funding opportunities for this item during the FY 2024 Budget
midyear review.
Item 8
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Council Priorities and
Objectives Q3 Update
Item 8: Staff Report Pg. 24 Packet Pg. 107 of 152
ATTACHMENT B
HS&EB 8. Construct preliminary schedule for starting new coordinated area plans (CAPs) for San
Antonio Road, California Ave, Downtown, and El Camino Real
Lead Dept. PDS Jonathan Lait
Status: Not Started Estimated Completion: Q4
Project Description:
Development of a preliminary schedule for a CAP for San Antonio is a priority. Other CAP areas are of
interest for Quarter 4 but currently area a lower priority.
Update:
Staff will prepare a tentative scheduled before the end of the year. In the meantime, PDS staff are
working toward related goals with respect to San Antonio. First, coordinating preparation of a study
utilizing Cal Poly San Luis Obispo students. Second, the submission of a Priority Development Area
(PDA) application to MTC/ABAG to be eligible for grant opportunities within the PDA boundary.
HS&EB ii. Codify permanent standards related to the City local SB9 implementation ordinance
(HSEB 14)
Lead Dept. PDS Amy French
Status: Completed Estimated Completion: Q2
Project Description:
Prepare an ordinance to codify interim SB-9 requirements into the local zoning regulations.
Update:
The City Council approved this ordinance for second reading on June 12, 2023.
HS&EB jj. Approve adjusted Accessory Dwelling Unit (ADU) regulations to facilitate production and
meet HCD requirements (HSEB9)
Lead Dept. PDS Garrett Sauls
Status: Completed Estimated Completion: Q2
Project Description:
Adopt an Ordinance That Changes Palo Alto Municipal Code Chapters 18.04, 18.09, 18.10, 18.12, and
18.40 related to Accessory Dwelling Units and Accessory Structures. Environmental Assessment:
Exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Public
Resources Code Section 21080.17 and CEQA Guidelines sections 15061(b)(3), 15301, 15302 and
15305.
Update:
Council approved Ordinance 5585 on May 15, 2023 with the second reading on June 5, 2023. The
Ordinance is now in effect.
HS&EB kk. Respond to various Grand Jury recommendations related to Housing (HSEB 6, 17, 24)
Lead Dept. PDS Clare Campbell
Status: Behind Schedule Estimated Completion: 2024
Project Description:
Recommendation 3. Submit a recommended communication strategy to the City Council to increase
community support for affordable housing.
Recommendation 4. Update format of future comprehensive plan and housing element annual
reports; conduct a ‘lessons learned’ analysis of the NVCAP process.
Item 8
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Objectives Q3 Update
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ATTACHMENT B
Recommendation 12b. requires further analysis and outreach to discuss with Santa Clara County the
possibility of entering a memorandum of understanding to leverage Measure A funds.
Update:
Staff vacancies and competing priorities have resulted in a delay completing the Grand Jury
recommendations; one recommendation requires completion of the NVCAP process before this task
can be completed, potentially extending this task to 2024 Q3. Staff is not aware of any legal deadlines
impacted by extending and will engage the City Council Housing Ad Hoc on the remaining outstanding
recommendations; 3, 4, and 12b.
HS&EB ll. Refine implementation of City’s SB9 objective development and urban lot split standards
(HSEB 14)
Lead Dept. PDS Amy French
Status: On Track Estimated Completion: Q4
Project Description:
Prepare a resolution that updates the City’s objective standards related to SB-9 development and lot
split standards. This project is distinguished from the ordinance task in HS&EB ii, which as an
ordinance the made code changes to reflect changes in state law whereas this task refines specific,
objective development standards. These changes will be reviewed by Council as a resolution as
opposed to an ordinance.
Update:
Staff presented to the ARB and to the Planning and Transportation Commission the project and
received feedback on the program. Outreach to architect and neighborhood groups has now started,
it is anticipated that a revised set of standards will be prepared by the end of Q4. Staff will bring the
refined standards to Council in early 2024.
HS&EB mm. Adopt an ordinance amending the development standards for Stanford-owned housing
opportunity sites
Lead Dept. PDS Amy French
Status: On Track Estimated Completion: Q4
Project Description:
Resolution Amending the Land Use Element of the Palo Alto Comprehensive Plan and an Ordinance
Amending Title 18 (Zoning) to Implement Housing Element Program 1.1A and 1.1B
Update:
The PTC will review this ordinance on October 11, 2023, followed by City Council review anticipated in
November.
HS&EB nn. Rezone carryover housing opportunity sites for by-right development when developed
with 20% lower income affordable housing units
Lead Dept. PDS Amy French
Status: On Track Estimated Completion: Q4
Project Description:
Resolution Amending the Land Use Element of the Palo Alto Comprehensive Plan and an Ordinance
Amending Title 18 (Zoning) to Implement Housing Element Program 1.1A and 1.1B
Update:
The PTC reviewed revised standards in September and is expected to make a recommendation to the
City Council in October. The City Council is anticipated to review revised development standards in
November.
Item 8
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Objectives Q3 Update
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ATTACHMENT B
HS&EB oo. Adopt an ordinance to implement revised development standards for certain properties
located in the GM/ROLM to allow for densities up to 90 units/acre
Lead Dept. PDS Amy French
Status: On Track Estimated Completion: Q4
Project Description:
Resolution Amending the Land Use Element of the Palo Alto Comprehensive Plan and an Ordinance
Amending Title 18 (Zoning) to Implement Housing Element Program 1.1A and 1.1B
Update:
The PTC reviewed revised standards in September and is expected to make a recommendation to the
City Council on October 11. The City Council is anticipated to review revised development standards
in November.
HS&EB 9. Evaluate RHNA housing allocation and encourage housing production that reflects the
needs of the community
Lead Dept. PDS Jonathan Lait
Status: Completed Estimated Completion: Q3
Project Description:
This work item is merged with HS&EB ee related to the adoption of a certified the Housing Element.
The Housing Element is the City’s policy document that distributes RHNA allocation throughout the
City in a manner that reflects the Council’s future housing production and goals for the community.
Update:
The draft Housing Element was adopted by Council on May 8, 2023 and submitted to HCD for a 60-
day review.
The City received comments back from the State Housing and Community Development department
on August 4, 2023. HCD has identified a number of topics that require further attention and
refinement. Staff is reviewing the letter and is making adjustments to the housing sites inventory,
refinements to programs and providing additional information requested by HCD. It is anticipated the
PTC will review housing element revisions in December or January 2024, followed by Council review in
Q1 2024. Recognizing that the work involved with this topic will continue ongoing, staff anticipates
identifying an appropriate new objective for 2024.
HS&EB 10. Establish an ad hoc committee on housing to review housing policies
Lead Dept. PDS Jonathan Lait
Status: Completed Estimated Completion: Q2
Project Description:
The Housing Ad Hoc, consisting of Vice Mayor Stone and Councilmember Lauing, meet with staff with
the intent to advance the City Council’s goal related to Housing for Social and Economic balance; to
explore opportunities to expand housing production; and provide guidance on ongoing housing-
related policy work and initiatives.
Update:
The Housing Ad Hoc has met several times discussing the Housing Element with staff and held a
meeting to receive initial public comment on the rental registry program. Additional meetings are
anticipated to further conversations on the Housing Element, explore opportunities for additional
affordable housing funding and provide feedback to staff on the various housing-related Council
priorities.
HS&EB pp. Begin construction in partnership with LifeMoves for Palo Alto Homekey project to
provide transitional housing and services for unhoused residents (HSEB13)
Item 8
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Lead Dept. CMO Melissa McDonough
Status: Completed Estimated Completion: Q3
Project Description:
In collaboration with the City’s partner for its Project HomeKey application, negotiate and reach
agreement on an operating agreement and/or lease agreement to memorialize the partnership and
operating and financial terms and begin construction.
Update:
. On August 24, the City issued the first permit necessary to begin site work on Homekey Palo Alto.
This enabled construction site prep and mobilization activities to begin. Homekey Palo Alto project
groundbreaking ceremony is being scheduled for October 31; staff will provide groundbreaking event
details as they are finalized.
HS&EB qq. Develop a citywide strategy to connect unhoused residents to housing and services
Lead Dept. CMO Melissa McDonough
Status: On Hold Estimated Completion: 2024
Project Description:
Develop a citywide strategy to connect unhoused residents to housing and services
Update:
Staff continues to document and better understand the City's role and opportunities for connecting
unhoused residents to housing and services. Connecting unhoused residents to services is managed
through a “Continuum of Care” (CoC). This is required by the United States Department of Housing
and Urban Development (HUD) to support efforts to end homelessness and provide housing and
services for homeless individuals, families, and youth. The recognized CoC for Palo Alto is through
Santa Clara County. The City has contracted with a nonprofit, as a pilot program, to provide two
dedicated outreach workers, operating within the CoC. The workers will locate and engage with
unhoused individuals where they are at in Palo Alto, to build trust, increase awareness of services and
resources, improve neighbor relations, act as a resource to local businesses and, when feasible,
connect them with support services including shelter, housing, government benefits, mental health,
substance abuse treatment, or employment training among other needs. Staff is anticipating City-
contracted outreach workers to begin work in October. In addition, staff is bringing forward a
permanent Safe Parking ordinance for Council to consider.
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COMMUNITY HEALTH & SAFETY (CH&S)
CH&S rr. Complete reopening libraries to budgeted level (remains below pre-pandemic levels)
(CHS5)
Lead Dept. LIB Gayathri Kanth
Status: On Track Estimated Completion: Q4
Project Description:
Further open libraries to include weekend and additional open days in alignment with service levels
authorized as part of the annual budget, including events.
Update:
In response to Council’s FY 2023 Budget Adoption, the Library expanded hours, both Mitchell Park
and the Rinconada Library to six days a week; and the Children’s, Downtown and College Terrace
Libraries opened four days a week. On June 19, 2023, the City Council adopted the FY 2024 Budget to
restore additional hours to the Library. This includes adding a fifth day of service to the College
Terrace and Downtown Libraries; a sixth day to the Children’s Library and a seventh day to Mitchell
Park and Rinconada Libraries; and the hiring of additional staff. The library opened College Terrace
and Downtown Libraries on Tuesdays on October 3. These branches will be open on Tuesdays from 10
a.m. to 6 p.m., restoring pre-pandemic hours at Downtown and extending hours beyond pre-
pandemic levels at College Terrace.
The Library is working with the Human Resources Department to fill 7 full time and 3.45 FTE part time
vacancies and move forward with the expansion of the Mitchell Park and Rinconada and Children’s
library hours.
CH&S ss. Approval of multi-year agreement for provisions of animal shelter services (CHS1)
Lead Dept. CSD Kristen O’Kane
Status: On Track Estimated Completion: Q4
Project Description:
In collaboration with the City’s current service provider Pets in Need (PIN), work to review services,
infrastructure needs, and determine next steps such as contract negotiations and approvals. On
February 14, 2022, Council directed staff to proceed with negotiating a long-term contract with Pets
in Need for animal services.
Update:
In collaboration with the City’s current service provider Pets in Need (PIN), work to develop a new
Agreement that clearly identifies the level of service to be provided and City’s commitment for shelter
improvements. On August 14, 2023, Council approved a term sheet with direction to staff to develop
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a new agreement. Staff expects Council consideration of a new agreement by the end of the calendar
year.
CH&S tt. Expand and enhance community special events with focus on inclusion (linked to activities
in ERT)
Lead Dept. CSD Kristen O’Kane
Status: On Track Estimated Completion: Q4
Project Description:
Provide support to reinvigorate Community Services Department’s current special events and
propose new events particularly along California Ave and University Ave to support economic
development in those areas. Provide more opportunities for residents to engage and gather,
promoting a healthy community.
Update:
The City Council approved a new position in FY 2024 to focus on special events and marketing in FY
2024 Adopted Budget, the position was opened for recruitment in September. Once the position is
filled, a more robust special event program will be developed. In the meantime, special events
continue to be planned and implemented throughout the year. The Department and City continue to
support organizations that celebrate diverse cultures through community events. Examples include,
supporting the United Nations Association Film Festival, Lunar New Year, and a community event for
Chinese immigrant families to connect with others and local resources.
CH&S uu. Approve agreement with PAUSD on long-term use of the Cubberley property (CHS2)
Lead Dept. CSD Kristen O’Kane
Status: On Track Estimated Completion: Q4
Project Description:
Define next steps regarding long-term use of the Cubberley Community Center, specifically the City-
owned portion.
Update:
Updates on next steps regarding use of the Cubberley Community Center include communication
with PAUSD on potential land acquisition and other options for the Cubberley site. A council study
session was held on May 15, 2023, to discuss a letter from the PAUSD Board inviting the City to
submit proposals to acquire additional land at Cubberley. Staff will be recommending that the Council
provide direction on next steps at the Council meeting on October 16, 2023. A Contract for asbestos
and mold remediation has been awarded and work to be scheduled shortly. Lead paint and interior
painting bids are under review and the work is anticipated to take place in November. Lastly, the
floor repair scope of work will be going out to bid next.
CH&S vv. Evaluate Recreation Wellness Center Feasibility (CHS14)
Lead Dept. CSD Kristen O’Kane
Status: On Track Estimated Completion: Q4
Project Description:
Council directed staff and the Parks and Recreation Commission to conduct public outreach on a new
gym, including location, siting, gym features, cost estimates, funding timeline, demand assessment
and prioritization of projects, and to investigate fundraising.
Update:
The Parks and Recreation Commission Ad Hoc Committee and staff held a community meeting on
March 7, 2023, followed by a community survey. The next community meeting to gain input on
preferred location is being planned with a date to be determined. Staff will then return to the City
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Council with a proposal and next steps. A virtual community meeting is planned for October and PRC
in November.
CH&S 11. Evaluate increasing HSRAP funding during the FY 2024 budget process
Lead Dept. CSD Minka Van Der Zwaag
Status: Completed Estimated Completion: Q3
Project Description:
The Human Services Resource Allocation Process (HSRAP) provides grant funding on a 2-year cycle to
social service providers in Palo Alto. Staff were asked to evaluate an increase in funding and
proposed an additional $50,000 in the FY24 Proposed Budget.
Update:
The City Council approved an additional $200,000 in funding for HSRAP grantees in the FY 2024
Adopted Budget. The Human Relations Commission made funding allocations recommendations for
the additional amount which staff brought to the Council in September 2023 for approval. The
Council approved the HRC’s proposed funding allocations and allotted an additional $45.000 for Ada’s
Café.
CH&S 12. Facilitate a location for La Comida in North Palo Alto
Lead Dept. CMO Ed Shikada
Status: On Track Estimated Completion: Q3
Project Description:
La Comida is a nonprofit organization focused on senior nutrition; it provides hot lunch meals to
seniors in Palo Alto. La Comida had previously provided services at the Avenidas Senior Center on
Bryant St, but after building renovations, the dining space was significantly reduced making
operations infeasible. Council would like to facilitate a permanent location in North Palo Alto for
ongoing senior lunch services.
Update:
In the interim Avenidas has set up a temporary structure in its parking lot to accommodate up to 65
seniors for lunch. Alternative locations are currently being explored, though ADA constraints and
facility availability are among the challenges with existing options.
CH&S 13. Increase support and funding for youth mental health
Lead Dept. CSD Kristen O’Kane
Status: On Hold Estimated Completion: 2024
Project Description:
Staff included $100,000 in CSD’s FY24 Proposed Budget to support youth mental health, however; the
City Council chose not to include funding until a plan is in place.
Update:
Per Council direction, staff will develop a plan to increase support and funding for youth mental
health before requesting additional funding during the FY2024 Midyear process.
CH&S ww. Support visible police presence by ensuring stable staffing (recruiting and retention)
through hiring ahead program (CHS6)
Lead Dept. PD Andrew Binder
Status: Behind Schedule Estimated Completion: 2024
Project Description:
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As authorized by Council as part of the FY 2022 Mid-Year Budget review, maintain a pipeline of
recruits for police officer staffing including up to an additional five officers via a hire-ahead program.
Update:
Currently, the Police Department has eleven Full Time Equivalent (FTE) Police Officer positions that
are vacant. Once the vacancies are filled, the next priority will be on the hire-ahead program for the
recruitment of an additional five officers. To date, there are 3 officers in the field training program, 1
recruit in the police academy, 6 candidates in active recruitment, and 2 recruits to start the academy
at the end of October 2023. This objective will not be completed in 2023 due to recruitment
challenges in the profession and we are not at staffing levels to enable the hire ahead program.
CH&S xx. Support a diverse community through extension of the Psychiatric Emergency Response
Team (PERT) program services to the community through affirmation of continued City financial
support
Lead Dept. PD Eric Jensen & April Wagner
Status: Completed Estimated Completion: Q2
Project Description:
Provide funding for two PERT Mental Health Clinicians through Santa Clara County Behavioral Health
Services to allow for 7-day per week PERT Team coverage.
Update:
Two PERT Mental Health Clinicians offset by SUMC funds approved as part of 6.19.23 budget
adoption. The PERT MOA with Santa Clara County has been approved by the Palo Alto City Council
and Santa Clara County Board of Supervisors and is set to be signed the week of October 9th by Santa
Clara County representatives.
CH&S yy. Update without interruption 911 dispatch system (CAD provider) once selected through
procurement process (CHS4)
Lead Dept. PD Nicole Frazier
Status: On Track Estimated Completion: Q4
Project Description:
The Police Department is working with its consortium partners (Mountain View and Los Altos) to
identify a new CAD system to replace the legacy system version. Staff will return to Council with a
recommendation for purchasing a new CAD system.
Update:
An RFP for the replacement of the 911 dispatch system was completed in October 2023. The review
and evaluation process is currently underway with participating agencies. Staff will return to Council
with a recommendation for purchasing a new CAD system by Winter 2023.
CH&S zz. Begin construction of the Gas Main Replacement Project 24B
Lead Dept. UTL Dean Batchelor
Status: On Track Estimated Completion: Q4
Project Description:
The project will abandon 1.3 miles of pre-1955 carbon steel pipelines and 2.1 miles of Polyvinyl
chloride pipelines with replacement of equivalent measurements of pipeline in 2”, 4” or 6” diameter
Polyethylene pipe. Currently, PVC pipe material is listed as the #1 DIMP risk due to the nature of the
pipeline’s brittleness, potential of glued joints drying out, and the high probability of excavation
damage. The area of the project reaches University Avenue, Geng Road and Town and Country
Village.
Update:
Council consideration of a contract is anticipated on October 16th for review.
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CH&S aaa. Approve updated Local Hazard Mitigation Plan and Community Wildfire Protection Plan
(CHS15)
Lead Dept. OES Ken Dueker
Status: Behind Schedule Estimated Completion: 2024
Project Description:
OES will be coordinating with the County on updates to emergency plans, including the Palo Alto Local
Hazard Mitigation Plan (LHMP).
Update:
The County submitted the Multi-jurisdictional Hazard Mitigation Plan on August 10, 2023, to CalOES
for state level review which could take up to 45 days, followed by a FEMA review taking another 45
days. If approved at these levels, the County could have the plan back by mid-November. At that
time, staff can package the Palo Alto portion of the LHMP for council adoption, which could occur by
the end of December 2023.
The City’s interdepartmental fire management team in moving forward to integrate the Community
Wildfire Protection Plan (CWPP) and FFMP into a single document as both serve the same interest for
wildfire mitigation. This will require consultant support but is expected to cost less than $50,000.
The timeline is uncertain for the completion of this activity, which may be in early 2024.
Council received a progress report on September 12, 2022. Extensive community engagement is
planned in the coming months, with final recommendations and adoption of the plan targeted for
2023. The Santa Clara County planning cycle for updating the CWPP is also pending.
Due to the integration of both plans, and the professional support needed to accomplish the task, this
objective is expected to be completed in 2024.
CH&S bbb. Implement Foothills Fire Management Plan (FFMP) (CHS3)
Lead Dept. OES Ken Dueker
Status: On Track Estimated Completion: Q4
Project Description:
Staff is working on various efforts related to improving the City’s planning in collaboration with Santa
Clara County and other allied agencies and entities. Efforts include not only emergency planning, but
also early warning technology, and updating operational and procedural elements within the City
organization to mitigate the risks associated with a fire in the foothills. The Q4 metric above pertains
to this timeframe.
NOTE: The FFMP is a multi-year plan with OES, Fire Department, Public Works, Utilities, Community
Services Department coordinated via the Foothills Fire Management Team (aka Foothills Wildfire
Coordination Team). The critical evacuation route mitigation work has been completed as of July
2023.
Update:
The Office of Emergency Services (OES) continues to participate in the South Bay Incident
Management Team (SB-IMT), lead a multi-departmental Foothills Fire Management Plan group, and
lead the Silicon Valley Homeland Security Coordination Group (SV-HSCG). Equipment improvements
include early fire detection, thanks to partnership with alertwildfire.org. OES is also working on the
deployment of solar battery back-up improvements in key locations to keep equipment online when
electricity may be disrupted or disconnected during a fire.
Regional Evacuation Planning: OES, Fire, Police are coordinating with Santa Clara County Fire
Department and other stakeholders (including Stanford University) on evacuation planning and
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deployment of new systems, such as ZoneHaven, which has recently been implemented and is now
live.
Utilities Wildfire Mitigation Plan: Undergrounding of electric lines and other safety improvements.
Public Works, Community Services Department, Fire Department: ongoing work to reduce flammable
vegetation and other “fuels” in the foothills.
CH&S ccc. Advance final construction phase of Public Safety Building and begin preparations for
move-in (CHS9)
Lead Dept. PWD Holly Boyd
Status: On Track Estimated Completion: Q4
Project Description:
Continue construction of the new facility in the California Avenue area including build and fixtures,
furniture, and equipment, with the Public Safety Building construction scheduled to be completed in
fall 2023.
Update:
Construction of the new Public Safety Building (PSB) facility on California Avenue is scheduled to be
completed in Fall 2023, followed by furniture and equipment installation, communication testing and
setup. Move-in timelines project the PSB to be fully operational in early 2024. Third quarter
milestones include removal of exterior scaffolding, connecting to permanent electric power, and
completing installation of the monopole and photovoltaic installation on Sherman Avenue garage.
CH&S ddd. Approve next steps for the rebuild of Fire Station No. 4 project (specifically design and
entitlements) (CHS17)
Lead Dept. PWD Holly Boyd
Status: Completed Estimated Completion: Q3
Project Description:
Complete schematic design of the new Fire Station No. 4 and begin design development stage on a
schedule to allow construction to begin in Fiscal Year 2024.
Update:
Design of the new Fire Station No. 4 is in progress. Staff held a study session with the Architectural
Review Board in March and formal ARB hearings were held in August and September. The project
received ARB approval at the September meeting, with a referral to the ad-hoc subcommittee on one
item. Staff authorized construction drawings to begin at the end of September in order to meet the
grant deadline of awarding a construction contract by June 30, 2024. A $5.2 million state budget
earmark has been received in support of the project. The project is on track to begin construction in
the first quarter of FY 2025.
CH&S eee. Approve resources and consultant to study and develop seismic and resiliency ordinance
(CHS20)
Lead Dept. PDS George Hoyt
Status: On Track Estimated Completion: Q4
Project Description:
Comprehensively update the City’s seismic rehabilitation ordinance with mandatory and voluntary
measures to seismically strengthen vulnerable buildings.
Update:
Staff met with the Policy and Services Committee on August 8, 2023, to reintroduce the project and
receive initial feedback. Staff is now preparing a scope of work that is expected to be released before
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the end of the year (2023 Q4). After selection of a consultant, staff will update the project timeline
for completion.
CH&S fff. Update gas-powered leaf blower ordinance and enforcement plan (CHS16)
Lead Dept. PDS George Hoyt
Status: Completed Estimated Completion: Q3
Project Description:
Amend the noise ordinance to specifically cite those that employ or use gas-powered blowers in
residential districts; modify citation authority that prevents immediate citation issuance upon
violation.
Update:
The City Council adopted ordinance the updated leaf blower ordinance on June 19, 2023; second
reading on August 7, 2023.
CH&S ggg. Implement a strategy for the provision and promotion of unleaded fuel at Palo Alto
Airport (CHS12)
Lead Dept. PWD Andy Swanson
Status: On Track Estimated Completion: Q4
Project Description:
Complete upgrades at airport facilities to provide for the sale of unleaded fuel, bring unleaded fuel to
the airport, and work with users to promote use of the fuel.
Update:
The tank was lined in March 2023, and the primary skid for piping and filtration was delivered and
installed in May 2023. There continues to be supply chain issues with the final parts for piping, but
delivery is expected by August 2023. A fuel delivery will be scheduled after final installation. Airport
staff continues to communicate with the fuel providers and pilots to ensure that once the tank is
ready, the fuel will be available for aircraft that have obtained the necessary supplemental type
certificate. The tank was inspected and approved in September 2023, however a few maintenance
items identified by the Fire Department must be resolved before the tank can receive fuel.
CH&S hhh. Approval of quiet zone implementation (rail/train crossings)
Lead Dept. OOT
Status: Completed Estimated Completion: Q2
Project Description:
Approval of conceptual design for implementation of quiet zone at Palo Alto Avenue crossing on
Caltrain corridor
Update:
In June 2023, City Council approved the conceptual plan and directed staff to proceed with design and
construction of improvements for quiet zone implementation at Palo Alto Avenue. Staff is seeking
consultant support to perform final design and seek CPUC approval for construction of required
improvements. Additionally, Staff is initiating an RFP to seek services of the consultant to conduct a
quiet zone study for the other three crossings at Churchill Avenue, Meadow Drive and Charleston
Road.
CH&S iii. Continue engagement with San Francisco Airport on SFO's Ground Based Augmentation
System (GBAS) project and other potential opportunities to decrease SFO noise impacts on Palo
Alto (CHS11)
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Lead Dept. PWD Andy Swanson
Status: On Track Estimated Completion: Q4
Project Description:
Complete consultant review of SFO Ground Based Augmentation System (GBAS) proposal and
consider submitting a comment letter, while tracking other issues that may arise.
Update:
The consultant review of SFO’s Ground Based Augmentation System (GBAS) proposal was completed
in spring 2022. Following a third community meeting hosted by Palo Alto, a letter was sent to SFO
expressing the City’s concerns about the proposal. Council held a study session in August 2022 to
discuss updates. Staff continues to work with community members on their concerns regarding SFO
noise issues over the City, including defining a scope of work for consultant services to assist in this
ongoing effort, using the FY 2024 funding provided through the budget process. Most recently, staff
solicited community input in response to the FAA’s Review of the Civil Aviation Noise Policy. A joint
comment letter from East Palo Alto, Los Altos, Los Altos Hills, Menlo Park, Mountain View, and Palo
Alto was drafted and submitted to the FAA on September 29, 2023.
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City Council
Staff Report
From: City Manager
Report Type: ACTION ITEMS
Lead Department: City Manager
Meeting Date: October 23, 2023
Report #:2309-2022
TITLE
Discussion and Direction on Feedback Regarding the Proposed Joint Powers Agency (JPA)
Agreement for Cities Association of Santa Clara County or Authority to Approve the JPA
Agreement As Drafted or With Revisions; CEQA: Not a Project (Continued from October 16, 2023)
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, or authorize the Mayor to approve
the JPA Agreement as drafted or with revisions.
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. Council could direct that the
final Agreement be brought back for Council consideration or could authorize the Mayor to
approve it as revised.
BACKGROUND
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
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County Mayor’s Conference, and the City Selection Committee for Santa Clara County. The cities
and towns entered into an informal agreement to provide some structure and outline the
purpose and function of the CASCC, eventually adopting bylaws and operating as an
unincorporated association.
In 2017, the CASCC began reviewing its organizational structure. In August 2020, the CASCC Board
voted 12 ayes with 3 absences (Los Altos Hills, Monte Sereno, San José) to take the steps
necessary to recommend that member cities form a joint powers authority to provide a more
formal and recognized structure and clarity regarding tax status and governmental immunities,
and limit the potential liability of the Member Agencies. The vote took place after a presentation
considering both a JPA and a 501(c)4. The presentation noted that:
•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).
Currently, the CASCC appoints members to a variety of regional boards. This function falls under
the City Selection Committee established by state statute and will continue whether or not a JPA
is formed. The appointments include the Airport Land Use Commission, the Association of Bay
Area Governments (ABAG), ABAG Regional Planning Committee, Bay Area Air Quality
Management District (BAAQMD), Sourcewise, the Local Agency Formation Commission (LAFCO),
Metropolitan Transportation Commission (MTC), Santa Clara County Local Board CAL-ID-RAN,
Santa Clara County Emergency Operational Area Council (EOAC), Silicon Valley Regional
Interoperability Authority (SVRIA), Recycling Waste & Reduction Commission (RWRC),
Redevelopment Dissolution Countywide Oversight Board of Santa Clara County, and Santa Clara
County Measure A (Housing Bond) Independent Citizens’ Oversight Committee.
To form a joint powers authority, a JPA must be approved by the CASCC Board of Directors and
then executed by each Member Agency that wishes to join.
Over the past two years, the CASCC conducted outreach and sought input from City and Town
Attorneys, as well as City Managers. This outreach included circulating the Draft Agreement and
attending meetings. There was extensive feedback and input from the City and Town Attorneys
and City Managers, some of which was incorporated into the Draft Agreement.
On September 14, 2023 the Draft Agreement was considered by the CASCC Board. In response
to various issues raised at the meeting, the CASCC Board directed that the Draft Agreement be
revised to clarify that the JPA would not hire employees and to provide some language permitting
but not requiring the CASCC Board to appoint a working committee composed of professional
staff from the member cities to review new initiatives and provide input to the CASCC Board.
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With these changes, the CASCC Board unanimously approved transmittal of the Draft Agreement
to the City and Town Councils of the proposed Member Agencies for their consideration. The
resulting proposed Draft JPA Agreement is provided as Attachment A. The CASCC Executive Board
has expressed a goal of finalizing the JPA in November.
ANALYSIS
Development of the proposed JPA Agreement has been led by CASCC’s Executive Board (to be
renamed the Executive Committee with the proposed JPA). Executive Board members have
spent significant time and effort, working with their Executive Director and General Counsel to
draft the agreement, seek input, and respond to feedback to date.
CASCC has incorporated many suggestions into the draft Agreement, and staff appreciates their
effort to address the issues raised. At this point, staff has identified a few remaining issues for
Council to consider in determining whether to request changes from CASCC:
1.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.
2.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.
3.Fiscal Management –
a.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
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specify an opportunity for member agencies to review and provide input to
budget decisions. The Silicon Valley Regional Interoperability Authority (SVRIA),
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
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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. Council may also decide to delegate authority to the City’s CASCC representative to
approve the draft Agreement in its current iteration or with revisions.
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.
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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
attendance. The CASCC Board directed some additional changes, resulting in the Draft
Agreement now under review.
ENVIRONMENTAL REVIEW
Council consideration of and direction on the Draft Agreement will not cause physical changes to
the environment and does not constitute a ”project” under the California Environmental
Protection Act (CEQA).
ATTACHMENTS
Attachment A: Draft Agreement
Attachment B: City Managers Questions and CASCC Answers
APPROVED BY:
Ed Shikada, City Manager
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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.
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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;
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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
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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
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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.
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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
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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
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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:
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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
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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.
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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
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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.
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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.
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Attachment A - Draft
Agreement
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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 AA1
Attachment A - Draft
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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.
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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.
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Attachment A - Draft
Agreement
Item AA1: Staff Report Pg. 22 Packet Pg. 141 of 152
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;
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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
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CASCC Answers
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August 7, 2023
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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
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CASCC Answers
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ANSWERS TO CITY MANAGER’S QUESTIONS RE: CASCC JPA
August 7, 2023
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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
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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
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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?
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CASCC Answers
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August 7, 2023
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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.
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CASCC Answers
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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
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CASCC Answers
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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.
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Attachment B - City
Managers Questions and
CASCC Answers
Item AA1: Staff Report Pg. 31 Packet Pg. 150 of 152
ANSWERS TO CITY MANAGER’S QUESTIONS RE: CASCC JPA
August 7, 2023
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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
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Attachment B - City
Managers Questions and
CASCC Answers
Item AA1: Staff Report Pg. 32 Packet Pg. 151 of 152
ANSWERS TO CITY MANAGER’S QUESTIONS RE: CASCC JPA
August 7, 2023
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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 AA1
Attachment B - City
Managers Questions and
CASCC Answers
Item AA1: Staff Report Pg. 33 Packet Pg. 152 of 152