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HomeMy WebLinkAbout2010-03-15 City Council Agenda Packet 1 03/15/10 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. Agenda posted according to PAMC Section 2.04.070. A binder containing supporting materials is available in the Council Chambers on the Friday preceding the meeting. Special Meeting Council Conference Room March 15, 2010 6:00 PM ROLL CALL STUDY SESSION 1. Joint Study Session with the Planning and Transportation Commission (P&TC) to Discuss Palo Alto Planning and Transportation Issues ATTACHMENT 7:00 PM or as soon as possible thereafter COUNCIL CHAMBERS SPECIAL ORDERS OF THE DAY 2. Proclamation Recognizing the Contributions and Achievements of the Late Elizabeth T. (Betty) Meltzer ATTACHMENT 3. Proclamation Welcoming Exchange Students and Chaperones from Tsuchiura City, Ibaraki, Japan ATTACHMENT 2 03/15/10 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. 4. Selection of Candidates to be Interviewed for the Library Advisory Commission for One Unexpired Term Ending January 31, 2011 ATTACHMENT CITY MANAGER COMMENTS ORAL COMMUNICATIONS Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the right to limit the duration or Oral Communications period to 30 minutes. APPROVAL OF MINUTES March 3, 2010 CONSENT CALENDAR Items will be voted on in one motion unless removed from the calendar by two Council Members. 5. Approval of a Contract with Davey Resource Group in the Amount of $156,894 for Street Tree Inventory – Data Integration and Analysis CMR 164:10 & ATTACHMENT 6. Adoption of a Resolution Authorizing the Association of Bay Area Governments (ABAG) to Accept an American Recovery and Reinvestment Act Residential Building Retrofit Program Grant Award on Behalf of the City of Palo Alto and to Enter Into all Necessary and Related Contracts, Agreements and Amendments CMR 169:10 & ATTACHMENT 7. Approval of Change of High Speed Rail Subcommittee from Ad Hoc Committee to Standing Committee CMR 172:10 3 03/15/10 MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS. STUDY SESSION 8. Monthly Update on City Activities Related to the California High Speed Rail Project CMR 173:10 PUBLIC COMMENT AGENDA CHANGES, ADDITIONS, AND DELETIONS HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the public discussion to make their remarks and put up to three minutes for concluding remarks after other members of the public have spoken. OTHER AGENDA ITEMS: Public comments or testimony on agenda items other than Oral Communications shall be limited to a maximum of three minutes per speaker. ACTION ITEMS Include: Public Hearings, Reports of Committees/Commissions, Ordinances and Resolutions, Reports of Officials, Unfinished Business and Council Matters 9. Approval of Revised Plan for Downtown Weekday Palo Alto Farm Shop CMR 160:10 & ATTACHMENT 10. Public Hearing: Consider the Approval of Water Supply Assessment for the Stanford Medical Center Facilities Renewal and Replacement Project (Item continued from 2/8/10 and 3/8/10) CMR 141:10 & ATTACHMENT COUNCIL MEMBER QUESTIONS, COMMENTS, AND ANNOUNCEMENTS Members of the public may not speak to the item(s). ADJOURNMENT Persons with disabilities who require auxiliary aids or services in using City facilities, services, or programs or who would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact 650-329-2550 (Voice) 24 hours in advance. MEMORANDUM DATE: TO: FROM: SUBJECT: PURPOSE: February 15,2010 Palo Alto City Council Planning and Transportation Commission Planning and Transportation Commission 2008-2009 Annual Report to Council includes data/rom 06-07 and 07-08 This report identifies emerging issues that the Planning and Transportation Commission has identified from the project submittals and other planning data that have come before them in the previous three years. These issues serve as the basis for the Planning and Transportation Commission to make recommendations to the City Council based on current data that may better align our City's land use and transportation policies and processes with Palo Alto's community values and its governing documents, including but not limited to the Comprehensive Plan and the Palo Alto Zoning Ordinance. FINDINGS: Based on the quantity of the projects and type of issues that have come before the Commission over the last three years, 1) 2006-2007 had the highest number of development projects come before the Commission 2) 2007-2008 had the fewest number of projects and items before the Commission. However, Stanford came before the Commission 4 times and the issue of supporting Grocery Stores in Palo Alto was part of three of the items that came before the Commission. 3) 2008-2009 had the highest number of policy and planning related items come before the Commission 4) The top three cumulative types of development project items that came before the Commissioners identified in the 2006 through the 2009 time period (three years) were: a) Rezonings: Projects that requested a change to the underlying zoning. b) Open Space: Projects requesting new and additions to existing structures. c) Density: Increasing density, particularly housing, in places not near transit corridors and infrastructure. 5) The top projects that Commissioners identified having the most amount of issues with (8 or more issues) over the three year time period were: a) 3445 Alma Street (Alma Plaza) b) 4249 and 4251 EI Camino Real (Elks) c) 4329 & 4301 EI Camino Real (Palo Alto Bowl) d) 3270 W. Bayshore (Classic Communities) 6) The top three cumulative types of policy items that Commissioners identified in the 2006 through the 2009 time period (three years) were: a) Safety: The City is working through several older projects and trials that had been initiated in years past to support Traffic Safety issues, and support Bike-able and Walk-able Neighborhoods. February 15,2010 Planning and Transportation Commission 2008-2009 Annual Report to Council Page 2 b) Open Space: Council driven re-examination of the Open Space zone has revealed significant differences in the perceived use and appreciation of this area between some of the area's property owners and the Comprehensive Plan. c) Hotels: New hotel zoning and several hotel projects have come before the Commission. ACTIONS: NEAR-TERM ACTIONS. The PTC recommends the following actions be considered before the rest because they present opportunities to reduce or mitigate issues that have potentially greater impacts on the City than others: 1) Resist changing land uses that allow more / new multi-family housing when they are not adjacent to existing transit nodes. Further study is necessary to understand both how to better balance new multi- family housing with existing infrastructure and how to align it with the City's ABAG policy that is in development. 2) Continue to support addition of hotels to drive needed income with minimal peak hour trip generation. 3) Continue to support retention of neighborhood grocery stores to serve needs to neighborhoods. LONGER-TERM ACTIONS. Of the remaining actions, the following present potentially significant impacts, but are likely to be realized over a longer period of time: 1) Build out of previously approved multi-family housing projects will have long term impacts on the City infrastructure and services. City needs to quantify these impacts especially in regards to south Palo Alto impacts, and develop plans to mitigate them. For example as part of East Meadow Circle / Comp Plan analysis area study, determine the impacts and develop mitigations as part of the area study. 2) Sufficiency of parking in multi-family projects, especially large units with private garages. 3) Private Streets that do not meet the requirements of public streets. February 15,2010 Planning and Transportation Commission 2008-2009 Annual Report to Council Page 3 ISSUES: In reviewing the Planning and Transportation Commission's 2008 -2009 actions, the Commissioners identified the following issues. Below each issue is a list of the project applications and or other items that appeared before the Commission or are generally known to members of the Commission in the last three years and support the issue. HOUSING & DENSITY 1) Density. Density is increasing away from transit corridors and other infrastructure. a) 940 East Meadow Drive -Vantage (housing v LM) <06 b) 1101 East Meadow Drive -Echelon (housing v LM) <06 c) 901 San Antonio Road (CJL & BUILD) 06-07 d) 3270 W. Bayshore 06-07 e) 4249 and 4251 EI Camino Real (Elks) 06-07 07-08 08-09 :f) 3445 Alma Street (Alma Plaza) 06-07 07-08 08-09 g) 2080 Channing A venue (Edgewood Plaza) h) 488 West Charleston (PA Housing Corp) 08-09 08-09 2) Multi Family Housing. Approvals of Multi Family housing projects in Palo Alto have reduced substantially over the three year reporting period: a) 4219 EI Camino -Arbor Real (170 townhrns + 11 SFRs) <06 b) 940 East Meadow Drive -Vantage (76 townhomes) <06 c) 1101 East Meadow Drive -Echelon (75 townhomes) <06 d) 3445 Alma Street (Alma Plaza) 06-07 07 -08 08-09 e) 4249 and 4251 EI Camino Real (Elks) 06-07 07-08 08-09 :f) 3270 W. Bayshore 06-07 g) 901 San Antonio Road (CJL & BUILD) 06-07 h) 195 Page Mill Road 06-07 3) Parking. Meeting the letter of the parking requirements for multi-family projects do not appear to be satisfying the parking demands of multifamily projects especially projects that have large units with private garages. a) 940 East Meadow Drive -Vantage <06 b) 1101 East Meadow Drive -Echelon <06 c) 3270 W. Bayshore 06-07 d) 4249 and 4251 EI Camino Real (Elks) 06-07 07-08 08-09 e) 3445 Alma Street (Alma Plaza) 06-07 07-08 08-09 :f) 2080 Channing A venue (Edgewood Plaza) 08-09 4) BMR Units. The City's BMR program continues to be supported: a) 901 San Antonio Road (CJL & BUILD) 06-07 b) 3445 Alma Street (Alma Plaza) 06-07 07-08 08-09 c) 2180 EI Camino Real (College Terrace Center) 07-08 08-09 d) 801 Alma Street 08-09 e) 488 West Charleston (P A Housing Corp) 08-09 February 15,2010 Planning and Transportation Commission 2008-2009 Annual Report to Council Page 4 5) Private Streets. Private Streets were used in a variety of Multi Family projects: a) 940 East Meadow Drive -Vantage <06 b) 1101 East Meadow Drive -Echelon <06 c) 3270 W. Bayshore 06-07 d) 4249 and 4251 EI Camino Real (Elks) 06-07 07-08 08-09 e) 3445 Alma Street (Alma Plaza) 06-07 07-08 08-09 t) 2080 Channing Avenue (Edgewood Plaza) 08-09 6) Private & Common Open Space. Private & Common Open space is required in multi-family developments but exceptions are being granted in developments involving BMR units: a) 4329 & 4301 EI Camino Real (Palo Alto Bowl) 06-07 08-09 b) 3445 Alma Street (Alma Plaza) 06-07 07-08 08-09 c) 2180 EI Camino Real (College Terrace Center) 07-08 08-09 d) 801 Alma Street 08-09 e) 488 West Charleston (PA Housing Corp) 08-09 ZONING ISSUES 7) Grocery Stores. The support and availability of neighborhood serving grocery stores remains a consistent concern: a) 3445 Alma Street (Alma Plaza) 06-07 07-08 08-09 b) 2180 EI Camino Real (College Terrace Center) c) G Combining District and/or Neighborhood Center Zoning d) 2080 Channing Avenue (Edgewood Plaza) 8) Open Space. Use and appreciation of open space is evolving: a) 1525 Arastradero Road 06-07 b) 712 Los Trancos 06-07 c) 3220, 3230, 3208 Alexis Drive 07-08 d) 3000 Alexis Drive (P A Hills Golf and Country Club) e) Baylands 08-09 t) Byxbee Park 08-09 g) Open Space (OS) 08-09 07-08 08-09 07-08 08-09 08-09 08-09 9) Rezonings. Projects coming before the Commission that have included requests to rezone parcels have decreased over the past three years: a) 1525 Arastradero Road 06-07 b) 901 San Antonio Road (CJL & BUILD) c) 1001 San Antonio Road (Ciardella's) d) 3981 EI Camino Real 06-07 e) 4233 Middlefield Road (Magnussen's) t) 725 San Antonio Road 06-07 06-07 06-07 06-07 g) 4329 & 4301 EI Camino Real (Palo Alto Bowl) 06-07 h) 3445 Alma Street (Alma Plaza) 06-07 07-08 08-09 i) 2180 EI Camino Real (College Terrace Center) 08-09 07-08 08-09 February 15,2010 Planning and Transportation Commission 2008-2009 Annual Report to Council Page 5 10) Hotels. New Hotels are being proposed. a) Stanford Projects 06-07 07-08 08-09 b) 4329 & 4301 EI Camino Real (Palo Alto Bowl) 06-07 08-09 c) Extended Stay Hotels 08-09 d) Hotel Comprehensive Plan and Zoning Changes 08-09 e) 1700 Embarcadero Road (Ming's) 08-09 11) Erosion of GM&LM Zones. Projects eroding the City's GM & LM zones have reduced in recent years, although the issue remains a concern and can threaten the viability of these zones in the City's Southeast comer near San Antonio and Charleston. a) 940 East Meadow Drive -Vantage <06 b) 1101 East Meadow Drive -Echelon <06 c) 901 San Antonio Road (CJL & BUILD) 06-07 d) 3270 W. Bayshore 06-07 PROCESS ISSUES 12) Site and Design -Process. Site and Design process reviews design elements before planning criteria are defined. a) 4249 and 4251 EI Camino Real (Elks) b) 4329 & 4301 EI Camino Real (Palo Alto Bowl) c) 810 Los Trancos Road 07 -08 06-07 07-08 08-09 06-07 d) 801 Alma Street 08-09 e) 1129-1137 San Antonio Rd (Google's Children's Center) 08-09 08-09 13) Site and Design Applicability. In years past, several large projects did not go through a public site and design process: a) 4219 EI Camino -Arbor Real (170 townhms + 11 SFRs) <06 b) 940 East Meadow Drive -Vantage <06 c) 1101 East Meadow Drive Echelon <06 d) 3270 W. Bayshore 06-07 14) Tentative Map Process. Tentative map process presents different aspects of the same project to the commission in separate hearings. a) 3270 W. Bayshore 06-07 b) 4249 and 4251 EI Camino Real (Elks) 06-07 07-08 08-09 c) 433 West Meadow Drive 07-08 d) 200 San Antonio (Toll Brothers / old Hewlett Packard site) 08-09 e) Tentative Map/ARB Process Revisions 08-09 15) PC Process. Some project applications do not offer adequate benefits to the City. a) 3445 Alma Street (Alma Plaza) 06-07 07-08 08-09 b) 2180 EI Camino Real (College Terrace Center) 07-08 08-09 c) 4329 & 4301 EI Camino Real (Palo Alto Bowl) 06-07 08-09 d) 200 San Antonio (Toll Brothers / old Hewlett Packard site) 08-09 16) Capital Improvement Program. Current CIP Process does not meet City'S statutes to include Commission input; in previous years the Commission's input and input has been solicited by Commission too late. February 15,2010 Planning and Transportation Commission 2008-2009 Annual Report to Council Page 6 17) Submittal Deadlines. The deadlines for applicant materials submission have not been enforced. a) 3445 Alma Street (Alma Plaza) 06-07 07-08 08-09 18) Design Enhancements, DEE & Variances. Design Enhancements, DEE & Variances exceptions have been permitted inappropriately. a) 3445 Alma Street (Alma Plaza) 06-07 07-08 08-09 b) 4329 & 4301 EI Camino Real (Palo Alto Bowl) 06-07 08-09 c) 200 San Antonio (Toll Brothers / old Hewlett Packard site) 08-09 d) 801 Alma Street 08-09 e) 278 University Ave. 08-09 t) Exceptions and Variances Study Session 08-09 19) Setbacks. Several projects brought to light the fact that existing setback requirements may be inadequate to accommodate sidewalk, planting and trees. EI Camino guidelines were applied to locations not specified in the guidelines. a) 901 San Antonio Road (ClL & BUILD) 06-07 b) 3445 Alma Street (Alma Plaza) 06-07 07-08 08-09 c) 4329 & 4301 EI Camino Real (Palo Alto Bowl) 06-07 08-09 d) 278 University Ave. 08-09 TRENDS & OPPORTUNITIES 20) Demolition. Demolition of existing buildings to allow new development has decreased during the three year reporting period: a) 940 East Meadow Dr -Vantage (demo industlcomm) b) 1101 East Meadow Dr -Echelon (demo indust/comm) c) 4249 and 4251 EI Camino Real (Elks) 06-07 d) 4329 & 4301 EI Camino Real (Palo Alto Bowl) e) 901 San Antonio Road (ClL & BUILD) 06-07 t) 3270 W. Bayshore 06-07 21) Opportunities to Improve Traffic Flow. a) Intersection ofEI Camino and Page Mill b) On ramp to 101 South from San Antonio Road c) Bike overpass across 101 <06 <06 07-08 08-09 06-07 22) Bus Service Reductions. VTA continues to reduce bus service for Palo Alto. 08-09 a) Valley Transportation Authority (VTA) Community Bus Study 07-08 INFORMATION ITEMS 23) Public amenities/benefits. Public amenitieslbenefits are being supported: a) 4249 and 4251 EI Camino Real (Elks) 06-07 07-08 08-09 b) 1525 Arastradero Road 06-07 c) 850 Webster Street 06-07 d) 2785/2747 Park Blvd. (Public Safety Building) 07-08 08-09 24) Safety. Traffic Safety, Bike-able and Walk-able Neighborhoods are being supported: a) College Terrace Traffic Calming Project <06 b) 3445 Alma Street (Alma Plaza) 06-07 07-08 08-09 c) Pepper A venue 07 -08 d) Charleston! Arastradero Road Corridor Project -Arastradero Road 08-09 e) MaybelVDonald Bicycle Boulevard 08-09 February 15,2010 Planning and Transportation Commission 2008-2009 Annual Report to Council Page 7 IMPACTS & RECOMMENDATIONS: These issues have the following likely impacts on the City and Planning and Transportation Commission makes the following recommendations: HOUSING & DENSITY 1. DENSITY. DENSITY IS INCREASING AWAY FROM TRANSIT CORRIDORS AND OTHER INFRASTRUCTURE. Negative Impact: The community continues to feel the impacts of the projects that were approved in prior years. All except one of these projects are located in South Palo Alto. Although these projects individually do not require planning that is in addition to what has been submitted, collectively they constitute a significant impact on the City's schools and community resources. Further, taken collectively, they have been planned in ways that conflict with many of the goals of the City's Comprehensive Plan. For example, some are located not near amenities, such as shopping and transit that are important to creating walkable neighborhoods and reduCing neighborhood traffic impacts. • Recommendation: Develop area planes) to better coordinate and identify criteria that should structure further development, such as East Meadow Circle/West Bayshore/San Antonio and CalifomialVentura. Determine where best to locate housing considering impacts and nearby amenities. Outcomes of this exercise could include, for example, ways of incentivizing desired types of housing that have lower impacts and discouraging types of housing that have greater impacts. Use more realistic assumptions about the housing impacts on schools, as preliminary school district figures show much greater student yield from this housing than was predicted. This work has been started and is underway. 2. MULTI FAMILY HOUSING. THE BUILD-OUT OF PREVIOUSLY APPROVED MULTI-FAMILY HOUSING PROJECTS HAS CREATED AN IMBALANCE BETWEEN HOUSING AND CITY INFRASTRUCTURE AND SERVICES. Positive Impact: Several of the Multi Family Housing projects are also Mixed Use developments. These projects are rezonings that support the Comprehensive Plan. • Recommendation: Continue to both support rezonings consistent with Council direction to develop projects supporting Comprehensive Plan New Urbanism concepts, to ensure provision of sufficient commercial development to serve residents and support the City's economic health and continue to monitor the mix of retail, housing, and other uses in mixed use development. Negative Impact #1: Increases of (he City's housing stock puts pressure on limited resources including the following: a) Palo Alto Unified School District (382 of the students in PA USD come from new housing since 2001, which is over 25% of the increased enrollment of 1,478from 2001 to 2008) b) City's existing infrastructure c) City's existing public facilities and amenities (parks/libraries etc) d) City's existing traffic conditions and level of service e) City's capability to meet ABAG requirements February 15,2010 Planning and Transportation Commission 2008-2009 Annual Report to Council Page 8 • Recommendation: Study these impacts to determine if new or revision to existing City Policies should be pursued, including: a) Investigate the quantitative impacts on the City's infrastructure to determine what actions / policies the City should pursue to mitigate these issues. b) Work with the PAUSD to better understand and quantifY how these impacts affect their resources and future planning. c) Use more realistic assumptions about the housing impacts on schools, as preliminary school district figures show much greater student yield from this housing than was predicted. d) Evaluate the impact increased ABAG housing requirements may/will have on the City's infrastructure and PAUSD's resources and work to find ways to reduce or mitigate these impacts. e) Ensure impact fees adequately cover the full cost of identified impacts, particularly as costs of implementing mitigations increase. f) IdentifY areas within Palo Alto that are underserved by parks and other amenities, particularly those areas in which high-density housing developments are occurring or have occurred recently. g) Collect and analyze unit sizes and affordability of market rate units, and the impact of unit size on school student yields. 3. PARKING. MEETING THE LETTER OF THE PARKING REQUIREMENTS FOR MULTI-FAMILY PROJECTS DOES NOT APPEAR TO BE SATISFYING THE PARKING DEMAND OF MULTI F AMIL Y PROJECTS ESPECIALLY PROJECTS THAT HAVE LARGE UNITS WITH PRIVATE GARAGES. Negative Impact: parking appears to be overflowing into adjacent neighborhoods. • Recommendation: Study adequacy of parking requirements for multifamily projects especially projects with large units and private garages. 4. BMR UNITS: THE CITY'S BMR PROGRAM CONTINUES TO BE SUPPORTED: Positive Impact: Several of the projects substantially increased the City's housing stock, and consequentially addressed the City's ABAG BMR housing requirements. Three projects contributed more than 400 living units. • Recommendation: Continue to support projects that contribute to a sustainable balance of housing and jobs in the City. 5. PRIVATE STREETS. PRIVATE STREETS WERE USED IN A VARIETY OF MULTI FAMILY PROJECTS. Negative Impact: Limited parking, emphasizes the enclave or "gated community" feeling of the proposed development, contributes to increased density (built floor area). • Recommendation: Study and propose requirements for when or under what conditions development projects should be required to meet the City's street requirements. Council has addressed this issue by adopting the Private Streets initiative. February 15,2010 Planning and Transportation Commission 2008-2009 Annual Report to Council Page 10 • Recommendation: Continue to support zoning that incents hotels that generate Transient Occupancy Tax. Review projects to evaluate effectiveness of the density incentive. (Note: the zoning ordinance is being revised so that extended stay hotels are not given a density bonus without a development agreement.) 11. EROSION OF GM & LM ZONES. PROJECTS ERODING THE CITY'S GM & LM ZONES HAVE REDUCED IN RECENT YEARS, ALTHOUGH THE ISSUE REMAINS A CONCERN AND CAN THREATEN THE VIABILITY OF THESE ZONES IN THE CITY'S SOUTHEAST CORNER NEAR SAN ANTONIO AND CHARLESTON. Positive Impact: Preservation of these lands for their existing uses. Recommendation: As part of the area plan for Meadow Circle, study the need for and possible additional strategies for preservation of GM and LM parcels. PROCESS ISSUES 12. SITE AND DESIGN -PROCESS. SITE AND DESIGN PROCESS REVIEWS DESIGN ELEMENTS BEFORE PLANNING CRITERIA ARE DEFINED. Negative Impact #1: The project approval process sometimes allows too early commitment to project specifics (e.g., Alma Plaza), involves inappropriate use of DEEs (e.g., 278 University Avenue), or limits the ability of the PTC to provide specific feedback on projects or to approve them with binding conditions (e.g., College Terrace Centre). • Recommendation: Revise the project approval process to enable early imposition of restrictions but reserve approvals for late in the process when the full scope and impacts of the project are known. Include in CEQA analyses of projects the cumulative impacts of nearby pending or anticipated projects. Evaluate how traffic impacts should be determined when there is a new development replacing one or more buildings that have been partially or completely vacant for an extended period of time, rather than assuming a hypothetical full occupancy as a baseline. Negative Impact #2: Current planning application review processes limit the ability for the City to adequately and comprehensively assess project impacts on the City's resources. • Recommendation #1: Evaluate current process (including the Tentative Map process) and develop recommendations that close the process gaps that keep the City from more fully understanding and addressing the individual and cumulative impacts of larger projects; such as Hyatt, Elks/Summer Hill, Vantage, and others. • Recommendation #2: Suggested order of review should be PTC -ARB PTC. February 15,2010 Planning and Transportation Commission 2008-2009 Annual Report to Council Page 11 13. SITE AND DESIGN -ApPLICABILITY. SEVERAL LARGE PROJECTS DID NOT GO THROUGH A PUBLIC SITE AND DESIGN PROCESS. Negative Impact: Large projects that have significant impacts on the community are permitted to go through the approval process without adequate public notice and input. Current planning application review processes limit the ability for the City to adequately and comprehensively assess project impacts on the City's resources. • Recommendation: Study whether or not all large projects should go through the site and design process and if so, define appropriate criteria to be included in this process, including number of acres, mixed used square footage, total FAR andlor number of housing units. 14. TENTATIVE MAP PROCESS. TENTATIVE MAP PROCESS PRESENTS DIFFERENT ASPECTS OF THE SAME PROJECT TO THE COMMISSION IN SEPARATE HEARINGS. Negative Impact: process does not allow full project impacts to be revealed and understood. • Recommendation: Study the Tentative Map Process and develop suggestions that will allow a more comprehensive understanding of the project's impacts so that the Commission and City can better address these impacts. 15. PC PROCESS. SOME PROJECT APPLICATIONS DO NOT OFFER ADEQUATE BENEFITS TO THE CITY. Negative Impact: Lessening the value of the projects that can truly benefit the City. • Recommendation: Study ways to increase effectiveness of the Planned Community zone. Include addressing the apparent lack of enforcement of public benefits and conditions of approval in existing PC's, and require applicants who justifY their projects based on financial necessity/requirements need to provide financial justification/analysis for review by the Commission / City. 16. CAPITAL IMPROVEMENT PROGRAM. CURRENT CIP PROCESS DOES NOT MEET CITY'S STATUTES, AND PROCESS NEEDS FIXING; PUBLIC AND COMMISSION INPUT; IN PREVIOUS YEARS THE SCOPE OF THE COMMISSION'S INPUT HAS BEEN TOO NARROW AND INPUT HAS BEEN SOLICITED FROM THE COMMISSION TOO LATE Negative Impact: The Commission has not had the required or appropriate opportunities to provide input into the CIP process. • Recommendation: Revise CIP process to allow earlier input from the Commission, and also input that is consistent with statutory requirements. This process has been changed, and implementation is underway. 17. SUBMITTAL DEADLINES. THE DEADLINES FOR APPLICANT MATERIALS SUBMISSION HAVE NOT BEEN ENFORCED. Negative Impact: Projects have substantively changed after review by recommending body, and without adequate public notice. • Recommendation: The deadline for applicant materials submission should be enforced. The deadlines should be adequate for public review by public, staff and reviewing bodies. If substantive materials are submitted late, after the deadline, and not consistent with the reviewing body's recommendations then the item should be returned to staff and the reviewing body for action. 18. DESIGN ENHANCEMENTS, DEE & VARIANCES. EXCEPTIONS HAVE BEEN PERMITTED INAPPROPRIATEL Y. Negative Impact: Projects are being approved with inappropriate exceptions. February 15,2010 Planning and Transportation Commission 2008-2009 Annual Report to Council Page 12 • Recommendation: Study and recommend revisions to criteria and purview. This issue is currently being reviewed by a PTC sub-committee. 19. SETBACKS. SEVERAL PROJECTS BROUGHT TO LIGHT THE FACT THAT EXISTING SETBACK REQUIREMENTS MAYBE INADEQUATE TO ACCOMMODATE SIDEWALK, PLANTING AND TREES. EL CAMINO GUIDELINES WERE APPLIED TO LOCATIONS NOT SPECIFIED IN THE GUIDELINES .. Negative Impact: The pedestrian experience is not optimal, and safety is compromised • Recommendation: Study the appropriate setback requirements to accommodate adequate trees and plantings, while permitting for a pleasant and safe pedestrian experience. Also, only apply EI Camino Guidelines along El Camino. If it is deemed desirable to have additional guidelines for other corridors, develop and adopt those guidelines, possibly using the El Camino Guidelines as a modeL TRENDS & OPPORTUNITIES 20. DEMOLITION OF EXISTING BUILDINGS TO ALLOW NEW DEVELOPMENT. Unknown Impact: The City has not fully considered the impacts demolition of existing structures has on its Comprehensive Plan and environment. Should residential demolitions that upgrade housing stock be allowed when they reduce the availability of smaller, less expensive housing stock? Should the City require the analysis of multifamily, commercial and other non-residential buildings to determine their potential for adaptive reuse before allowing their demolition? Is it reasonable that demolitions account for half of the materials in Palo Alto's waste stream? • Recommendation: Study the impact the demolition of existing structures has on the City's Comprehensive Plan and environment, and develop recommended actions. The data that could support this study includes the following: o the gain and loss of residential units as a result of redevelopment, o the comparative costs to the owner/tenant compared to current rates, o the gain and loss of retail square footage and income to City as a result of redevelopment, o the comparative cost to retail and neighborhood serving businesses as a result of redevelopment, o environmental impacts of demolition, and o benefit analysis to community of redevelopment for use in policy decision as to rate/scale/type of redevelopment most beneficial. 21. OPPORTUNITIES TO IMPROVE TRAFFIC FLOW. Negative impact: the City has missed or is at risk of missing or delaying several opportunities to work with Caltrans to improve traffic flow and the bicycle network in Palo Alto. • Recommendation: Engage Caltrans earlier on the identified opportunities to improve traffic flow and the bicycle network in Palo Alto 22. Bus SERVICE. VTA CONTINUES TO REDUCE BUS SERVICE FOR PALO ALTO Negative Impact: Significant reductions in opportunities for residents and visitors to use public transit and thereby reduce environmental impacts. • Recommendation: Engage more proactively with VT A to insure the City's bus needs are being met. INFORMATION ITEMS February 15,2010 Planning and Transportation Commission 2008-2009 Annual Report to Council Page 13 23. PUBLIC AMENITIES/BENEFITS. PUBLIC AMENITIES/BENEFITS ARE BEING SUPPORTED: Positive Impact: Public Amenities provide a community benefit. • Recommendation: Encourage true public benefits for PC developments and in particular the dedication of more parkland in proportion to population growth. 24. SAFETY. PALO ALTO'S TRAFFIC SAFETY, BIKE-ABLE AND WALK-ABLE NEIGHBORHOODS ARE BEING SUPPORTED: Positive Impact: There is continued satisfaction in both the results and the prOcess of integrating the City's Traffic Control and Calming Projects: • Recommendation: Continue to support these programs and evaluate their results post- implementation. Consider improvements to arterial routes that reduce impacts on residential neighborhoods (such as improvements to northbound EI Camino Real right turns onto Oregon Expressway, so as to reduce cut-through traffic on Pepper Avenue). 2008 -2009 Planning and Transportation Commission Annual Report to Council Appendices February 15,2010 Appendices February 15,2010 Planning and Transportation Comnlission 2008-2009 Annual Report to Council Page 15 ANNUAL REPORT TO COUNCIL Background and Report Purpose: In 2006 the Planning and Transportation Commission (PTC) recognized several issues: • That the staff's Comprehensive Plan Update report was overly administrational and not action oriented in its content and format to influence current policy making; • That eliminating this report freed up significant staff resources; and That the rate of change impacting the City's lands was occurring significantly more quickly than the Comprehensive Planning cycle. Therefore at its fall 2006 retreat the PTC decided to prepare an annual Planning Commission report to City Council evaluating development and other projects in Palo Alto that had come before the PTC occurring over the last year and their impacts on the City. In this way the Report would become a more effective tool to address demographic changes, technological development and environmental challenges and more effectively implement the Palo Alto's Comprehensive Plan and Zoning Ordinance. The function of the report is to identify emerging trends in the community, serve as a basis for identifying issues and making recommendations for the City Council to take actions, and to serve as an annual repository of critical planning data. The Commission intends that this report be used to enable better alignment of the City's long term land use policies and processes with Palo Alto's community values, its governing documents and the evolving needs of the community. Process: For preparing the report the PTC subcommittee has been working with staff to: 1. Identify major projects over the past year 06-07 and compare it to key Comprehensive Plan policies/programs, and the Palo Alto Zoning Code. 2. Identify the short-and long-term trends and issues resulting from the developmental trend. 3. The following data sources were consulted to perform the analysis for the report, (See the attached CD for the data, which can also be downloaded at URLxxxxx.) a. Pertinent school enrollment data from new housing construction; b. Number of residential building permits issued within this time frame; c. Number and type (BMR, market rate) of dwelling units approved and entitled through the planning department within this specified time period; d. List of multifamily residential projects in the "pipeline," the previous land use, existing zoning district and type of housing proposed; e. Number and type of residential demolition permits issued and replacement structures; f. Transportation data as applicable; g. Rezoning applications and/or approved rezoning within this specified time period; h. List of commercial development in the ARB process and commercial development approved by the ARB within this specified time period; i. List of commercial building demolition permits issued and list of new commercial building permits issued (identify gain or loss of commercial square footage); j. Changes in single-family residences in square footage. Appendices February 15,2010 Planning and Transportation Commission 2008-2009 Annual Report to Council Page 16 Commissioners: The Commission is composed of seven members who are not Council Members, officers, or employees of the City, and who are residents of the City of Palo Alto. Terms are for four years and commence on August 1. See Palo Alto Municipal Code (PAMC) Sections 2.16 and 16.48. Palo Alto residency is a requirement. 2006 -2007 Commissioners were Karen Holman (Chairman), Lee Lippert (Vice-Chair), Pat Burt, Dan Garber, Arthur Keller, Paula Sandas, Samir Tuma. 2007 -2008 Commissioners were Karen Holman (Chairman), Daniel Garber (Vice-Chair), Pat Burt*, Susan Fineberg*, Arthur Keller, Paula Sandas, and Samir Tuma, Lee Lippert. 2008 -2009 Commissioners were Daniel Garber (Chairman), Samir Tuma (Vice-Chair); Susan Fineberg, Karen Holman, Arthur Keller, Lee Lippert, Fabio Rosati*, Paula Sandas*. *Indicates that the Commissioner was not on the commission the entire year. Appendices February 15,2010 Planning and Transportation Commission 2008-2009 Annual Report to Council Page 17 ITEMS AND ISSUES All of the The development projects and policy items from the three fiscal years from 2006 to 2009, that the Commissioner's identified issues with, are charted in the following spreadsheets. All of the spreadsheets "roll-up" the items. Meaning if a particular item came before the Commission more than once over the fiscal year, that item is only shown once. For instance "Stanford Projects" came before the 2008-09 Commission 4 times but it is only shown once. Both development project and policy items that came before the commission are on the left, and the Issues that the Commissioner's identified are at the top. Each year the project or policy item appear before the Commission, the year is recorded in the columns C, D.& E. The number of issues each items contains is summed on the right. The number of projects each issue is supported by is shown at the bottom. Items Sequentially & by Issue. This chart show the items from 2006-09 and is sorted to show the items sequentially, earliest at the top. The issues, across the top of the chart, are sorted by assigned number. The chart simply shows how the items and issues are arrayed over time. Items HOT List This chart is sorted to show the items that have the most issues, on top. The issues that have the most items have been sorts to the left. There for the items and issues that are highest and most left are the "hottest" items and issues the Commission dealt with. 2006-07 Items This chart is sorted the same as the HOT List but only includes the items from the 2006-07 fiscal year. The development projects items and the policy items have also been counted on this sheet. 2007-08 Items Same as above but for the 2007-08 fiscal year. 2008-09 Items Same as above but for the 2008-09 fiscal year. Policy Items This chart compiles just the policy items from all three years and is sorted the same as the HOT List. Proj Devel Items This chart compiles just the project development items from all three years and is sorted the same as the HOT List. CITY OF PALO ALTO PROCLAMATION Recognizing the contributions and achievements of the late Elizabeth T. (Betty) Meltzer WHEREAS, Betty Meltzer was born on May 3, 1939 to Anna Rose and Sam Taylor, moved to Palo Alto in 1948, graduated from Palo Alto High School in 1956 and received her Master's Degree in Education from Stanford University in 1961; and WHEREAS, beginning in the mid 1980s, Betty Meltzer co-founded, with Ellen Wyman, Palo Alto Tomorrow, an organization that successfully promoted sensible growth in downtown Palo Alto; and WHEREAS, in the early 1990s Betty Meltzer served as a citizen member of the Downtown Urban Design Committee that originated an overall plan for downtown Palo Alto development emphasizing exciting, attractive and inviting public spaces and structures; and WHEREAS, education was one of Betty Meltzer's passions: she taught in the Palo Alto Unified School District for five years, trained blind people how to read, and for many years tutored Palo Alto elementary school students who had reading disabilities; and WHEREAS, Betty Meltzer served on the board of the former Peninsula Conservation Center Foundation (PCCF), now Acterra, and was especially active in creating the Business Environmental Network that gave awards to environmentally outstanding businesses; and WHEREAS, in May 2001, Betty Meltzer received a City of Palo Alto Community Star Award from the Community Services Department in recognition of her contributions to the community; and WHEREAS, Betty Meltzer was co-founder and co-chair with Susan Rosenberg of the Trees for El Camino Project whose mission was to have El Camino Real in Palo Alto become a beautiful, tree-lined thoroughfare that would unite the adjoining neighborhoods, business districts and educational campuses and which provided funds to the City of Palo Alto for the planting of hundreds of new trees along El Camino Real; and WHEREAS, the distinguished life of Betty Meltzer ended on September 29, 2008; and WHEREAS, on July 13, 2009 the Legislature of the State of California designated the segment of State Highway Route 82 (El Camino Real) in Palo Alto between Page Mill Road and San Francisquito Creek (the Santa Clara /San Mateo County line), as the Betty Meltzer Memorial Highway. NOW, THEREFORE, I, Patrick Burt, Mayor of the City of Palo Alto, on behalf of the City Council, hereby recognize, honor and record our appreciation of Elizabeth T. (Betty) Meltzer for her many contributions and achievements for the betterment of Palo Alto. Presented: March 2010 ______________________________ Patrick Burt Mayor CITY OF PALO ALTO PROCLAMATION WELCOMING EXCHANGE STUDENTS AND CHAPERONES FROM TSUCHIURA CITY, IBARAKI, JAPAN WHEREAS, the exchange program between middle schools is the foundation of the Sister Cities program, which attempts to promote international and intercultural understanding amongst the youth; and WHEREAS, the two cities have worked together to involve their respective middle school students and their families in cultural and educational exchanges and special programs; and WHEREAS, the opportunity to host Tsuchiura students here and to send Palo Alto students to Tsuchiura , Japan has proven to be mutually beneficial. NOW, THEREFORE, I, Patrick Burt, Mayor of the City of Palo Alto, on behalf of the City Council, hereby express our heartfelt welcome to our guests from Tsuchiura City and record congratulations and the best wishes from the City of Palo Alto, on the occasion of the visit of Mr. Masahiko Kinoshita, Ms. Hitomi Noguchi and 16 students (Minami Morimoto, Shota Fujii, Yurie Seki, Daiki Kitajima, Shoko Tanabe, Wataru Yoshioka, Kana Kuriyama, Daiki Namichi, Maika Takei, Shuichiro Wada, Shiho Kaito, Nao Tsukahara, Hitomi Tsukamoto, Takehito Murano, Haruka Nagamine, Kazuya Uchida). I wish to thank Tsuchiura City for their generosity and hospitality tended toward young people from Palo Alto for the last 17 years. Presented March, 2010 ______________________________ Patrick Burt Mayor HONORABLE CITY COUNCIL City of Palo Alto Ctty.QfJ}:~lQ.AJJQ Office of the City Clerk March 15, 2010 SUBJECT: Selection of Candidates to be interviewed for the Library Advisory Commission for one unexpired term ending January 31, 2011. Dear Council Members: Enclosed are four applications submitted for one unexpired term ending January 31, 2011 on the Library Advisory Commission. At the Council Meeting on Monday, March 15,2010, the City Council will select the candidates to be interviewed for the Library Advisory Commission, with the interview date to be determined. Each Council Member will receive a selection sheet to use for determining who will be chosen for an interview. The requested action is for each Council Member to fill out the selection sheet. The City Clerk will announce the results. Candidates who receive four or more votes will be scheduled for an interview. The applicants are as follows: Name 1. Ramarao Digumarthi 2. Philip Lumish 3. Diane Morin 4. Richard Hackmann Enclosures cc: All applicants (without enclosure) Donna Grider, City Clerk Diane Jennings, Staff Liaison Address Phone 3744 Starr King Circle Palo Alto, CA 94306 650-424-1304 3872 Grove Ave Palo Alto, CA 94303 650-494-3706 1635 EI Camino Real Palo Alto, CA 94306 650-325~ 3830 235 Embarcadero Palo Alto CA 94301 312-450-4096 i=~ , R~ ]O~~Ta GOnSalve~? ~' Deputy City Clerk P.O. Box 10250 Palo Alto, CA 94303 650.329.2571 650.328.3631 fax City of Palo Alto ,City Manager's Report TO: HONORABLE CITY COUNCIL 5 FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: MARCH 15,2010 CMR:164:10 REPORT TYPE: CONSENT SUBJECT: Approval of a Contract with Davey Resource Group in the Amount of $156,894 for Street Tree Inventory -Data Integration and Analysis RECOMMENDATION Staff recommends that Council approve and authorize the City Manager to execute the attached contract with Davey Resource Group, a division of Davey Tree Expert Company, in the amount of $156,894 for Street Tree Inventory -Data Integration and Analysis, including $136,430 for basic services and $20,464 for additional services (Attachment A). BACKGROUND In 2007 Council directed Public Works to develop a Street Tree Master Plan. An accurate tree inventory is ali integral starting point for producing an effective plan. The City's current inventory was generated in 1989 with inventory size, tree age, and condition changing over the years. Also, arboricultural industry standards and technology have gone through many changes since that time. In 2007 the City applied for and was awarded a grant from State of California, Department of Forestry and Fire Protection (Cal fire) in the amount of $120,000 with the City providing $39,000 in matching funds. The grant was delayed due to the State of California budget crisis and the funds were finally released in October 2009. Due to the delay in funding for the grant the Calfrre extended the project deadline to June 30, 2010. DISCUSSION As the urban forest continues to mature and individual properties continue to be developed the City's trees have become increasingly impacted. The Urban Forest is a valuable asset worth protecting. Current information will provide City staff the tools to develop a new street tree management plan to ensure that a healthy, functional, species diverse, multi-aged canopy will be in place to benefit the community well into the future. A verified geodatabase will provide readily available point feature information for Public Works and other City departments so that the tree resource can be protected and enhanced. The work to be performed under this contract includes: performing a field assessment of tree and site attributes for approximately 36,000 City street and park trees and updating this information into the City's TreeKeeper® inventory and work order system; collecting GIS positioning data CMR: 164: 10 Page lof3 on all the trees; and delivering a geodatabase that contains an updated and corrected version of the City's street tree inventory. The Consultant will also create an i-Tree Streets Analysis and Report based on the City tree inventory which will include an analysis of the data collected and result in a written report that includes the structure, function, value and maintenance needs of the City's tree resource. Please see Attachment A for the complete scope of services. SELECTION PROCESS A notice inviting formal proposals for the work was posted on the City's website and sent to six contractors on January 21, 2010. The bidding period was 19 calendar days. Proposals were received from 5 qualified consultants on February 9,2010. Summary of Solicitation Process Proposal DescriptionlNumber Street Tree Inventory-Data Integration and Analysisl RFP#135076 Proposed Length of Project 15 weeks Number of Proposals Mailed 6 Total Days to Respond to Proposal 19 Pre-proposal Meeting Date None Number of Company Attendees at N/A Pre-proposal Meeting Number of Proposals Received: 5 $3.33-$3.45 per tree Range of Proposal Amounts Submitted An evaluation committee consisting of three Public Works Operations Division staff reviewed the proposals in their entirety and two Information Technology staff reviewed the portions of the proposals related to GIS tree locations and data transfer. The committee reviewed each firm's qualifications and submittals according to criteria identified in the RFP and unanimously selected Davey Resource Group. Davey Resource Group provided a well organized and clear proposal that addressed all of our concerns, including a complete definition of tasks and related costs. They rated highest on all criteria. They manage our current tree and work inventory system. Because of this they have a clear understanding of our inventory and work history needs. The scope of services requested a per tree price based on 31,000 trees which represents approximately 85% of City trees. Since there is sufficient funding provided by the grant it was determined that an inventory could include 100% of City trees with an estimated total of 36,000. Grant guidelines require that this project be completed by June 30, 2010. The City has neither the personnel nor the GIS expertise to complete this project by the deadline. The consultant has extensive experience in performing projects of this nature. CMR:164:10 Page 2 of3 Grant guidelines require that this project be completed by June 30, 2010. The City has neither the personnel nor the GIS expertise to complete this project by the deadline. The consultant has extensive experience in perfoIming projects of this nature. RESOURCE IMPACT Funds for the City match in the amount of $29,000 are available in the FY 2010 Public Works Operations operating budget. An additional appropriation of $10,000 City match and $120,000 grant amount for a total of $130,000 has been included in the FY 2010 Midyear Budget Amendment Ordinance (BAO). Subsequent to the approval the final proposal only requires an additional $7,894 for City match along with $120,000 for the grant for a total of $127,894. The FY 2010 Midyear adjustments and BAO will come before full Council on April 2, 2010. The City will be reimbursed up to $120,000 through Grant Agreement 8CA07911 with Cal Fire. POLICY IMPLICATIONS The approval of this contract is consistent with existing City policies. ENVIRONMENTAL REVIEW Work under this agreement consists of information collection and is categorically exempt from review under Sectio1115306 of the California Environmental Quality Act. ATTACHMENTS Attachment A: Contract (includes Certification of Nondiscrimination) Cal Fire Grant Agreement Attachment B: PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: CMR:164:10 4/~ ~~--~------------ 2irn<glr£lj~L GLENN S. ROBERTS Director of Public Works Page 3 of3 ATTACHMENT A ClITY OF PALO ALTO CONTRACT NO.: CI0135076 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND DA VEY RESOURCE GROUP FOR PROFESSIONAL SERVICES STREET TREE INVENTORY, DATA INTEGRATION AND ANALYSIS This AGREEMENT is entered into on this . day of March, 2010, by and between the CITY OF PALO ALTO, a California chartered municipal corporation ("CITY"), and DAVEY RESOURCE GROUP, a Division of The Davey Tree Expert Company, a corporation in the State of Ohio, located at 1500 North Mantua Street, Kent, OH 44240, with Western Region Offices at 7627 Morro Road, Atascadero, CA 93422 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A. CITY intends to update street tree inventory and GIS points ("Project") and desires to engage a consultant to perform visual field assessments of City trees and their sites in connection with the Project ("Services"). B.. CONSULTANT has represented that it has the necessary professional expertise, qualifications, and capabilio/, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULT ANT to provide the Services as more fully described in Exhibit "A", attached to and made a part ofthis Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, terms, and conditions, this Agreement, the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exhibit "A" in accordance with the terms and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. DThe term of this Agreement shall be from the date of its full execution through terminated earlier pursuant to Section 19 of this Agreement. unless OR I2Sl The term ofthis Agreement shall be from the date of its full execution through completion ofthe services in accordance with the Schedule of Performance attached as Exhibit "B" unless termmated 1 Professional Services Rev. January 2009 \\CC-TERRA \jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFPI35076 Street Tree Inventory Data Integration and Analysis\Contract C10I35076 DAVEY.doc CITY OF PALO ALTO CONTRACT NO.: CI0135076 services in accordance with the Schedule of Performance attached as Exhibit "B" unless terminated earlier pursuant to Section 19 of this Agreement. SECTION 3. SCHEDULE OF PERFORMANCE. Time is of the essence in the performance of Services under this Agreement. CONSULTANT shall complete the Services within the term of this Agreement and in accordance with the schedule set forth in Exhibit "B", attached to and made a part ofthis Agreement. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by CONSULTANT in a reasonably prompt and timely manner based upon the circumstances and direction communicated to the CONSULTANT. CITY's agreement to extend the term or the schedule for performance shall not preclude recovery of damages for delay if the extension is required due to the fault of CONSULTANT. SECTION 4. NOT TO EXCEED COMPENSATION. The compensation to be paid to CONSULTANT for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed One Hundred Thirty-six Thousand Four Hundred Thirty Dollars ($l36,430.00). fu the event Additional Services are authorized, the total compensation for services and reimbursable expenses shall not exceed One Hundred Fifty-six Eight Hundred Ninety-four Dollars ($156,894.00). The applicable rates and schedule of payment are set out in Exhibit "C", entitled "COMPENSATION," which is attached to and made a part of this Agreement. Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "c" . CONSULT ANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit "A". SECTION 5. INVOICES. fu order to request payment, CONSULTANT shall submit monthly invoices to the CITY describing the services performed and the applicable charges (including an identification of personnel who performed the services, hours worked, hourly rates, and reimbursable expenses), based upon the CONSULTANT's billing rates (set forth in Exhibit "C"). If applicable, the invoice shall also describe the percentage of completion of each task. The information in CONSULTANT's payment requests shall be subject to verification by CITY . CONSULTANT shall send all invoices to the City's project manager at the address specified in Section l3 below. The City will generally process and pay invoices within thirty (30) days of receipt. SECTION 6. QUALIFICATIONS/ST ANDARD OF CARE. All of the Services shall be performed by CONSULTANT or under CONSULTANT's supervision. CONSULTANT represents that it possesses the professional and technical personnel necessary to perform the Services required by this Agreement and that the personnel have sufficient skill and experience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, ifpermitted, have and shall maintain during the term of this Agreement all licenses, permits, qualifications, insurance and approvals of whatever nature that are legally required to perform the Services. All of the services to be furnished by CONSULTANT under this agreement shall meet the 2 Professional Services Rev. January 2009 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP135076 Street Tree Inventory -Data Integration and Analysis\Contract ("lf1l .,,117"; 1>A"J:;V rt~ CITY OF PALO ALTO CONTRACT NO.: CI0135076 professional standard and quality that prevail among professionals in the same discipline and of similar know ledge and skill engaged in related work throughout California under the same or similar circumstances. SECTION 7. COMPLIANCE WITH LAWS. CONSULTANT shall keep itselfinformed of and in compliance with all federal, state and local laws, ordinances, regulations, and orders that may affect in any manner the Project or the performance of the Services or those engaged to perform Services under this Agreement. CONSULTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the performance of the Services. SECTION 8. ERRORS/OMISSIONS. CONSULTANT shall correct, at no cost to CITY, any and all errors, omissions, or ambiguities in the work product submitted to CITY, provided CITY gives notice to CONSULT ANT. If CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all errors, omissions or ambiguities discovered prior to and during the course of construction ofthe Project. This obligation shall survive termination of the Agreement. SECTION 9. COST ESTIMATES. If this Agreement pertains to the design of a public works project, CONSULTANT shall submit estimates of probable construction costs at each phase of design submittaL If the total estimated construction cost at any submittal exceeds ten percent (10%) ofthe CITY's stated construction budget, CONSULTANT shall make recommendations to the CITY for aligning the PROJECT design with the budget, incorporate CITY approved recommendations, and revise the design to meet the Project budget, at no additional cost to CITY. SECTION 10. INDEPENDENT CONTRACTOR. It is understood and agreed that in performing the Services under this Agreement CONSULTANT, and any person employed by or contractedwith CONSULTANT to furnish labor and/or materials under this Agreement, shall act as and be an independent contractor and not an agent or employee of the CITY. SECTION 11. ASSIGNMENT. The 'parties agree that the expertise and experience of CONSULT ANT are material considerations for this Agreement. CONSULT ANT shall not assign or transfer any interest in this Agreement nor the performance of any of CONSUL T ANT's obligations hereunder without the prior written consent ofthe city manager. Consent to one assignment will not be deemed to be consent to any subsequent assignment. Any assignment made without the approval of the city manager will be void. SECTION 12. SUBCONTRACTING. CONSULT ANT shall not subcontract any portion ofthe work to be performed under this Agreement without the prior written authorization of the city manager or designee. CONSULTANT shall be responsible for directing the work of any subconsultants and for any compensation due to subconsultants. CITY assumes no responsibility whatsoever concerning compensation. CONSULT ANT shall be fully responsible to CITY for all acts and omissions of a subconsultant. CONSULTANT shall change o,r add sub consultants only with the prior approval of the city manager or his designee. 3 Professional Services Rev, January 2009 \\CC-TERRA\jarreoI\PURCHDOC\SAP Bids and Proposals\RFP\RFP135076 Street Tree Inventory -Data Integration and Analysis\Contract ClO135076 DAVEY,doc CITY OF PALO ALTO CONTRACT NO.: CI0135076 SECTION 13. PROJECT MANAGEMENT . CONSULTANT will assign Dana Karcher as the project director to have supervisory responsibility for the perfonnance, progress, and execution of the Services and as the project coordinator to represent CONSULTANT during the day-to-day work on the Project. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason, the appointment of a substitute project director and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY's project manager. CONSULTANT, at CITY's request, shall promptly remove personnel who CITY finds do not perfonn the Services in an acceptable manner, are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property. The City's project manager is Eric Krebs, Public Works Department, Operations Division, at 3201 East Bayshore Road, Palo Alto, CA 94303, Telephone: 650-496-6905. The project manager will be CONSULTANT's point of contact with respect to perfonnance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTION 14. OWNERSHIP OF MATERIALS. Upon delivery, all work product, including without limitation, all writings, drawings, plans, reports, specifications, calculations, documents, other materials and copyright interests developed under this Agreement shall be and remain the exclusive property of CITY without restriction or limitation upon their use. CONSULT ANT agrees that all copyrights which arise from creation of the work pursuant to this Agreement shall be vested in CITY, and CONSULTANT waives and relinquishes all claims to copyright or other intellectual property rights in favor ofthe CITY. Neither CONSULTANT nor its contractors, if any, shall make any of such materials availab Ie to any individual or organization without the prior written approval of the City Manager or designee. CONSULTANT makes no representation of the suitability of the work product for use in or application to circumstances not contemplated by the scope of work. SECTION 15. AUDITS. CONSULTANT willpennit CITY to audit, at any reasonable time during the term of this Agreement and for three (3) years thereafter, CONSULTANT's records pertaining to matters covered by this Agreement. CONSULTANT further agrees to maintain and retain such records for at least three (3) years after the expiration or earlier tennination of this Agreement. SECTION 16. INDEMNITY. D[Option A applies to the following design professionals pursuant to Civil Code Section 2782.8: architects; landscape architects; registered professional engineers and licensed professional land surveyors.] 16.1. To the fullest extent pennitted by law , CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 4 Professional Services Rev. January 2009 \\CC-TERRA'jjarreo\\PURCHDOC\SAP Bids and Proposa]s\RFP\RFP135076 Street Tree Inventory -Data Integration and Analysis\Contract r'1()1't,()7h nAVPV ..IN' CITY OF PALO ALTO CONTRACT NO.: C10135076 ~[Option B appliestoany consultant who does not qualify as a design professional as defined in Civil Code Section 2782.8.] 16.1. To the fullest extent permitted bylaw, CONSULTANT shall protect, indemnify, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Indemnified Party") from and against any and all demands, claims, or liability of any nature, including death or injury to any person, property damage or any other loss, including all costs and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") resulting from, arising out of or in any manner related to performance or nonperformance by CONSULTANT, its officers, employees, agents or contractors under this Agreement, regardless of whether or not it is caused in part by an Indemnified Party. 16.2. Notwithstanding the above, nothing in this Section 16 shall be construed to require CONSULTANT to indemnify an Indemnified Party from Claims arising from the active negligence, sole negligence or willful misconduct of an Indemnified Party. 16.3. The acceptance of CONSULTANT's services and duties by CITY shall not operate as a waiver of the right of indemnification. The provisions of this Section 16 shall survive the expiration or early termination of this Agreement. SECTION 17 • WAIVERS. The waiver by either party of any breach or violation of any covenant, term, condition or provision ofthis Agreement, or of the provisions of any ordinance or law, will not be deemed to be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of any subsequent breach or violation ofthe same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. 18.1. CONSULTANT, at its sole cost and expense, shall obtain and maintain, in full force and effect during the term of this Agreement, the insurance coverage described in Exhibit "D". CONSULTANT and its contractors, if any, shall obtain a policy endorsement naming CITY as an additional insured under any general liability or automobile policy or policies. 18.2. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A-:VII or higher which are licensed or authorized to transact insurance business in the State of California. Any and all contractors of CONSULTANT retained to perform Services under this Agreement will obtain and maintain, in full force and effect during the term of this Agreement, identical insurance coverage, naming CITY as an additional insured under such policies as required above. 18.3. Certificates evidencing such insurance shall be filed with CITY concurrently with the execution of this Agreement. The certificates will be subjectto the approval of CITY's Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation or modification, CONSULTANT shall be responsible for ensuring that current certificates evidencing the insurance are provided to CITY's Purchasing Manager during the entire term of this Agreement. 5 Professional Services Rev. January 2009 \\CC-TERRA\jarreol\PURCHDOC\sAP Bids and Proposals\RFP\RFPl;35076 Street Tree Inventory Data Integration and Analysis\Contract CIOl35076 DAVEY.doc CITY OF PALO ALTO CONTRACT NO.: C10135076 18.4. The procuring of such required policy or policies of insurance will not be construed to limit CONSULT ANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement. Notwithstanding the policy or policies of insurance, CONSULTANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services perfonned under this Agreement, including such damage, injury, or loss arising after the Agreement is tenninated or the tenn has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The city manager may suspend the perfonnance ofthe Services, in whole or in part, or tenninate this Agreement, with or without cause, by giving ten (10) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its perfonnance of the Services. 19 .2. CONSULTANT may terminate this Agreement or suspend its perfonnance of the Services by giving thirty (30) days prior written notice thereofto CITY, but only in the event of a substantial failure ofperfonnance by CITY. 19.3. Upon such suspension or tennination, CONSULTANT shall deliver to the City Manager immediately any and all copies of studies, sketches, drawings, computations, and other data, whether or not completed,prepared by CONSULTANT or its contractors, if any, or given to CONSULTANT or its contractors, if any, in connection with this Agreement. Such materials will become the property of CITY. 19.4. Upon such suspension ortennination by CITY, CONSULTANT will be paid for the Services rendered or materials delivered to CITY in accordance with the scope of services on or before the effective date (i.e., 10 days after giving notice) of suspension or tennination; provided, however, if this Agreement is suspended or tenninated on account ofadefault by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULTANT's services which are of direct and immediate benefit to CITY as such detennination may be made by the City Manager acting in the reasonable exercise of hislher discretion 19.5. No payment, partial payment, acceptance, or partial acceptance by CITY will operate as a waiver on the part of CITY of any of its rights under this Agreement. SECTION 20. NOTICES. All notices hereunder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY: Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 6 Professional Services Rev. January 2009 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP135076 Street Tree Inventory -Data Integration and Analysis\Contract "l CITY OF PALO ALTO CONTRACT NO.: CI0135076 With a copy to the Purchasing Manager To CONSULTANT: Attention ofthe project director at the address of CONSULT ANT recited above SECTION 21. CONFLICT OF INTEREST. 21.1. In accepting this Agreement, CONSULTANT covenants that it presently has no interest, and will not acquire any interest, direct or indirect, financial or otherwise, whicl!. would conflict in any manner or degree with the performance of the Services. 21.2. CONSULT ANT further covenants that, in the performance ofthis Agreement, it will not employ sub consultants, contractors or persons having such an interest. CONSULTANT certifies that no person who has or will have any financial interest under this Agreement is an officer or employee of CITY ; this provision will be interpreted in accordance with the applicable provisions ofthe Palo Alto Municipal Code and the Government Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT is a "Consultant" as that term is defined by the Regulations ofthe Fair Political Practices Commission, CONS1JLTANT shall be required and agrees to file the appropriate financial disclosure documents required by the Palo AI!9 Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section 2.30.51 0, CONSULTANT certifies that in the performance of this. Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, national origin, ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULT ANT acknow ledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. SECTION 23. ENVIRONMENTALLY PREFERRED PURCHASING. The City of Palo Alto is a green business and works to purchase and provide products in an environmentally sustainable manner. CONSULTANT will use production methods that reduce waste and environmentally toxic products, as well as have less packaging. CONSULTANT will adhere to the standard that printed materi~ls will be, at a minimum, printed on 30% post consumer recycled paper with vegetable based ink. The designer will check with the project manager to discuss the maximum recycled content paper available for each project. FSC (Forest Stewardship Council) certified paper that is "process free" is preferred. CONSULTANT will use methods that reduce energy use and thus the carbon footprint for the development, production and delivery of products. CONSULTANT shall adhere to the City's Environmentally Preferred Purchasing policies as may be amended from time to time. SECTION 24. MISCELLANEOUS PROVISIONS. 24.1. This Agreement will be governed by the laws of the State of California. 7 Professional Services Rev. January 2009 \\CC-TERRA\jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP135076 Street Tree Inventory· Data Integration and Analysis\Contract CI0135076 DAVEY.doc CITY OF PALO ALTO CONTRACT NO.: CI0135076 24.2. In the event that an action is brought, the parties agree that trial of such action will be vested exclusively in the state courts of California in the County of Santa Clara, State of California. 24.3. The prevailing party in any action brought to enforce the provisions of this Agreement may recover its reasonable costs and attorneys' fees expended in connection with that action. The prevailing party shall be entitled to recover an amount equal to the fair market value of legal services provided by attorneys employed by it as well as any attorneys' fees paid to third parties. 24.4. This document represents the entire and integrated agreement between the parties and supersedes all prior negotiations. representations, and contracts. either written or oral. This document may be amended only by a written instrument, which is signed by the parties. 24.5. The covenants, terms, conditions and provisions of this Agreement will apply to, and will bind, the heirs, successors, executors, administrators, assignees, and consultants of the parties. 24.6. If a court of competent jurisdiction finds or rules that any provision of this Agreement or any amendment thereto is void or unenforceable, the unaffected provisions of this Agreement and any amendments thereto will remain in full force and effect. 24.7. All exhibits referred to in this Agreement and any addenda, appendices, attachments, and schedules to this Agreement which, from time to time, may be referred to in any duly executed amendment hereto are by such reference incorporated in this Agreement and will be deemed to bea part of this Agreement. 24.8. This Agreement is subject to the fiscal provisions of the Charter of the City of Palo Alto and the Palo Alto Municipal Code. This Agreement will terminate without any penalty (a) at the end of any fiscal year in the event that funds are not appropriated for the following fiscal year, or (b) at any time within a fiscal year in the event that funds are only appropriated for a portion of the fiscal year and funds for this Agreement are no longer available. This Section 24.8 shall take precedence in the event of a conflict with any other covenant, term, condition, or provision of this Agreement. 24.9. The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. 24.10 All unchecked boxes do not apply to this agreement. 8 Professional Services Rev. January 2009 \\CC-TERRA\jarreo!\PURCHDOC\SAP Bids and Proposals\RFP\RFPJ35076 Street Tree Inventory. Data Integration and Analysis\Contract CITY OF PALO ALTO CONTRACT NO.: CI0135076 IN WITNESS WHEREOF, the parties· hereto have by their duly authorized representatives executed this Agreement on the date first above written. CITY OF PALO ALTO CONSULTANT: DAVEY RESOURCE GROUP A Division of The Davey Tree Expert Company _City Manager (Required for contracts over $85,000) _Purchasing Manager .--By:---'-o~~~~_=.....i-""-~'--___ _ APPROVED AS TO FORM: Senior Asst. City Attorney Attachments: ,.EXHIBIT "A": .. EXHIBIT ''B'': EXHIBIT "C": EXHIBIT "C-l" EXHIBIT "D": SCOPE OF WORK SCHEDULE OF PERFORMANCE COMPENSATION RATE SCHEDULE INSURANCE REQUIREMENTS 9 Professional Services Rev. January 2009 \\cC-TERRA\jarreol\PURCHDOc\sAP Bids and Proposals\RFP\RFPI35076 SCree! Tree Inventory -Data Integration and Analysis\Contract Ct0135076 DAVEY.doc CITY OF PALO ALTO CONTRACT NO.: CI0135076 EXHIBIT "A" SCOPE OF SERVICES Background: Purpose and History: The City of Palo Alto (City) has been awarded a grant from the California Department of Forestry and Fire Protection (CAL FIRE) to update the City's street tree inventory, verify or correct existing geocoded tree information and prepare an i-Tree Streets analysis and report. The City's existing inventory/work order system is TreeKeeper 7.7 (Davey Resource Group). The current street tree inventory was compiled in 1989 and has been partially updated since that time. While many of the street trees are properly sited, there is considerable work to be done to accurately update tree and site conditions. Site Description: The project area covers about 10.5 square miles of the flat, urbanized neighborhoods and commercial districts ofthe City bounded by State Highway 101 on the north and by Foothill Expressway on the south (see City Area Map, Attached). There are approximately 36,000 City street or park trees, and vacant tree sites within this area. The trees to be inventoried are sited in City parks, planting strips between the curb and sidewalk or in the City right of way behind the sidewalk. In commercial districts, the trees may also be in tree wells. Numerous trees are located in medians on arterial streets. The City operates its own utilities and is subject to the California Public Utilities Commission rules regarding vegetation clearance from the electric system. Presence of overhead utilities is one of the inventory attributes that will be collected. Project Goals: Consultant shall provide services described below that would meet the following City goals: 1) Update the current City tree inventory including tree attributes, site conditions, and location. 2) Upload this inventory data into the TreeKeeper 7.7 database updating existing records and adding new records as appropriate. 3) Determine accurate GIS positioning for all inventoried City trees. 4) Create an i-Tree Streets analysis and report based on the City tree inventory. 5) Train City staff on all aspects of the revised and updated inventory. Develop a written protocol for City staff to periodically update the inventory. Professional Services Rev. January 2009 \\CC-TERRA\jarreo)\PURCHDOasAP Bids and Proposals\RFP\RFP135076 Street Tree Inventory -Data Integration and Analysis\Contract C10135076 DAVEY.doc CITY OF PALO ALTO CONTRACT NO.: CI0135076 Scope of Services: Task 1 -Perform Field Assessment of City Trees and Gather Attribute and GIS Positioning Data: With guidance from City Tree staff, Consultant shall perform field assessments of City trees and their sites in addition to assessing vacant (as defined by City) planting sites. Tree assessment shall include an evaluation of tree size and health, tree site location, identification of structural defects, pruning needs and pests. Consultant shall collect all attribute information as defined by CAL FIRE grant guidelines and additional data requested by the City as outlined in Attachment C-l. Consultant shall submit to City a written schedule and systematic approach to inventorying the City trees by area (see City Area Map, Attached), with identifiable starting and completion points. Consultant shall start work in Area 2 and complete all field work in that area before proceeding to the next area of the Consultant's choosing. Only City street trees will be assessed. Park trees will not be part of this project. The City will provide: 1. Shape files or geodatabases in California State Plane Zone 3, NAD 83, Survey feet, containing: . a. Parcel layer; b. Planimetric layers including curbs, sidewalks, planting strips, paved edge; c. Utility features including manhole covers, utility poles (not spatially accurate in GIS), storm water catch basins and fire hydrants; d. Address layer (text on point features); e. Street centerlines; f. Polygons of tree inventory areas. 2. Text file of legal street names 3. Orthophotos (2005, flown) 4. A shape file or geodatabase containing the existing tree inventory as a point feature layer. Trees will be geocoded to the nearest address (at minimum). Some of the trees will be positioned along the street. In addition, some trees will not appear in the correct polygon until the location is fixed by the consultant. Task 2 -Prepare Updated Geodatabase: Consultant shall prepare and deliver a geodatabase that contains an updated and corrected version of the City's street tree inventory in California State Plane Zone 3, NAD 83, Survey feet. 2 Professional Services Rev. January 2009 \\CC-TERRA\jarreo]\PURCHDOaSAP Bids and Proposa)s\RFP\RFP135076 Street Tree Inventory -Data Integration and Analysis\Contract £:1011')076 DAVEY.doc CITY OF PALO ALTO CONTRACT NO.: CI0135076 The deliverable shall maintain the existing Tree ID numbers and include all of the above mentioned updates and corrections and shall include: 1. Verification andlor correction of the placement of the existing street tree inventory point features to sub-meter accuracy. 2. Addition and deletion of tree point features (Consultant shall provide an explicit list of Tree ID numbers that are deleted). 3. Verification or addition of required attributes described in Attachments C-1. Consultant shall meet futemational Society of Arboriculture (ISA) standards when assessing the trees. Consultant shall upload inventory attribute data into City's TreeKeeper 7.7 database and integrate with existing data in that database. Task 3 -i-Tree Streets Analysis and Report Consultant shall create an i-Tree Streets (version 3.0.6, USDA Forest Service) analysis and report based on the City tree inventory. This information will be used by the City to evaluate current benefits, costs and maintenance needs. The consultant shall analyze the data and create a written report that includes the structure, function, value and maintenance needs of the City's tree resource: This task shall be done on a lump sum basis. Task 4 -Meetings: Consultant shall include in this proposal milestone meetings, trainings, and demonstrations. Meetings shall include Consultant's Project Manager at minimum and staff from City Tree Section, fuformation Technology, and others as needed. Consultant shall prepare and submit a written agenda for each meeting at least two business days prior and draft and submit meeting minutes within three business days following each scheduled meeting. Meetings will include: • A pre-project meeting. • Weekly progress meetings (up to 4 meetings) at the beginning of the project. • . Milestone meetings (3) at the completion of Tasks 1-3 to review and discuss deliverables; Consultant's GISIIT staff shall attend in addition to the Project Manager. END SCOPE OF SERVICES 3 Professional Services Rev. January 2009 \\CC-TERRA \jarreo]\PURCHDOaSAP Bids and Proposals\RFP\RFPI35076 Street Tree Inventory -Data Integration and Analysis\Contract CI0135071i DAVRY.ooc CITY OF PALO ALTO CONTRACT NO.: CI0135076 EXHIBIT "B" SCHEDULE OF PERFORMANCE CONSULTANT shall perfonn the Services so as to complete each milestone within the time specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the tenn of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks of receipt of the notice to proceed. Milestones 1. Tree Inventory and Geodatabase Update 2. Meetings 1 Completion (from NTP) by the date below: June 30, 2010 June 30, 2010 Professional Services Rev. January 2009 \\CC-TERRA \jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP135076 Street Tree Inventory Data Integration and Anaiysis\Contract 1 7 CITY OF PALO ALTO CONTRACT NO.: CI0135076 EXHIBIT "C" COMPENSATION The CITY agrees to compensate the CONSULT ANT for professional services performed in accordance with the terms and conditions ofthis Agreement, and as set forth 'in the budget schedule below. Compensation shall be calculated based on the rate schedule attached as exhibit C-I up to the not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services described in Exhibit ".N' ("Basic Services") and reimbursable expenses shall not exceed One Hundred Thirty-six Thousand Four Hundred Thirty Dollars ($136,430.00). CONSULTANT agrees to complete all Basic Services, including reimbursable expenses, within this amount. In the event CITY authorizes any Additional Services, the maximum compensation shall not exceed One Hundred Fifty-six Eight Hundred Ninety-four Dollars ($156,894.00). Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to the CITY. CONSULTANT shall perform the tasks and categories of work as outlined and budgeted below. The CITY's project manager may approve in writing the transfer of budget amounts between any of the tasks or categories listed below provided the total compensation for Basic Services, including reimbursable expenses, does not exceed $136,430.00 and the total compensation for Additional Services does not exceed $20,464.00. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Task 1 and 2 (Tree inventory and Geodatabase Update) Task 3 (i.-Tree Streets) Task 4 (Meetings) $124,200 $4,500 $7,730 Sub-total Basic Services $136,430 Reimbursable Expenses (included above) $0.00 Total Basic Services and Reimbursable expenses $136,430 Additional Services (Not to Exceed) $20,464 Maximum Total Compensation $156,894 1 Professional Services Rev, January 2009 \\CC-TERRA\jarreol\PURCHDOc\SAP Bids and Proposals\RFP\RFP135076 Slreet Tree Inventory -Data Integration and Analysis\Contract rll\1'Hl\7':; nt.\lJ:;v ~~ CITY OF PALO ALTO CONTRACT NO.: CI0135076 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. ADDITIONAL SERVICES The CONSULTANT shall provide additional services only by advanced, written authorization from the CITY. The CONSULT ANT, at the CITY's project manager's request, shall submit a detailed written proposal including a description of the scope of services, schedule, level of effort, and CONSULTANT's proposed maximum compensation, including reimbursable expense, for such services based on the rates set forth in Exhibit C-I. The additional services scope, schedule and maximum compensation shall be negotiated and agreed to in writing by the CITY's project manager and CONSULTANT prior to commencement of the services. Payment for additional services is subject to all requirements and restrictions in this Agreement Work required because the following conditions are not satisfied or are exceeded shall be considered as additional services: • More trees to be inventoried • Additional meetings 2 Professional Services Rev. January 2009 \\CC-TERRA';jarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFPI35076 Street Tree Inventory Data Integration and Analysis\Contract CITY OF PALO ALTO CONTRACT NO.: CI0135076 EXHIBIT "C-l" RATE SCHEDULE Tree Inventory Rate per tree $3.45 Professional Services Rev. January 2009 \\CC-TERRA\jarreo)\PURCHDOc\sAP Bids and Proposals\RFP\RFPI35076 Slreet Tree Inventory -Data Integration and Analysis\Contract (,1l11 "H171i IlAVFY tll'll' CITY OF PALO ALTO CONTRACT NO.: CI013507'6 EXHIBIT "D" INSURANCE REQUIREMENTS CONTRACTORS TO THE CITY OF PALO ALTO (CITY), AT THEIR SOLE EXPENSE, SHALL FOR THE TERM OF THE CONTRACT OBTAIN AND MAINTAIN INSURANCE IN THE AMOUNTS FOR THE COVERAGE SPECIFIED BELOW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OF A·:VII, OR HIGHER, LICENSED OR AUTHORIZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. ' AWARD IS CONTINGENT ON COMPLIANCE WITH CITY'S INSURANCE REQUIREMENTS, AS SPECIFIED, BELOW: MINIMUM LIMITS REQUIRED TYPE OF COVERAGE REQUIREMENT EACH YES YES YES YES YES YES OCCURRENCE AGGREGATE WORKER'S COMPENSATION v RY EMPLOYER'S LIABILITY STATUTORY BODILY INJURY $1,000,000 $1,000,000 GENERAL LIABILITY, INCLUDING PERSONAL INJURY, BROAD FORM PROPERTY DAMAGE $1,000,000 $1,000,000 PROPERTY DAMAGE BLANKET CONTRACTUAL, AND FIRE LEGAL BODILY INJURY & PROPERTY DAMAGE $1,000,000 $1,000,000 LIABILITY COMBINED, BODILY INJURY $1,000,000 $1,000,000 . EACH PERSON $1,000,000 $1,000,000 . EACH OCCURRENCE $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON·OWNED PROPERTY DAMAGE $1,000,000 $1,000,000 BODILY INJURY AND PROPERTY $1,000,000 $1,000,000 DAMAGE COMBINED PROFESSIONAL LIABILITY, INCLUDING, ERRORS AND OMISSIONS, . MALPRACTICE (WHEN APPLICABLE), AND NEGLIGENT PERFORMANCE ALL DAMAGES $1000,000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALLOBT AIN AND MAINTAIN, IN FULL FORCE AND EFFECT THROUGHOUT THE ENTIRE TERM OF ANY RESULTANT AGREEMENT, THE INSURANCE COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CONTRACTOR AND ITS SUBCONSULT ANTS, IF ANY, BUT ALSO, WITH THE EXCEPTION OF WORKERS' COMPENSATION, EMPLOYER'S LIABILITY AND PROFESSIONAL INSURANCE, NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPLOYEES. I. INSURANCE COVERAGE MUST INCLUDE: A A PROVISION FOR A WRITTEN THIRTY DAY ADVANCE NOTICE TO CITY OF CHANGE IN COVERAGE OR OF COVERAGE CANCELLATION; AND B. A CONTRACTUAL LIABILITY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO INDEMNIFY CITY. C. DEDUCTIBLE AMOUNTS IN EXCESS OF $5,000 REQUIRE CITY'S PRIOR APPROVAL. II. CONT ACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. Ill. ENDORSEMENT PROVISIONS, WITH RESPECT TO THE INSURANCE AFFORDED TO "ADDITIONAL INSUREDS" A PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF THE NAMED INSURED, INSURANCE AS AFFORDED BY THIS POLICY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER Professional Services Rev. January 2009 \\CC· TERRA\iarreol\PURCHDOC\SAP Bids and Proposals\RFP\RFP135076 Street Tree Inventory· Data Integration and Analysis\Contract ~ CITY OF PALO ALTO CONTRACT NO.: CI0135076 INSURANCE CARRIED BY OR FOR TIlE BENEFIT OF THE ADDITIONAL INSUREDS. B. CROSS LIABILITY THE NAMING OF MORE THAN ONE PERSON, FIRM, OR CORPORATION AS INSUREDS UNDER THE POLICY SHALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RIGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLE INSUREDS, SHALL NOT INCREASE THE TOTAL LIABILITY OF THE COMPANY UNDER TIllS POLICY. C. NOTICE OF CANCELLATION 1. IF TIlE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR ANY REASON OTIlER TIlANTHE NON-PA YMENTOFPREMIUM, TIlE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TIlIRTY (30) DAY WRITTEN NOTICE BEFORE TIlE EFFECTIVE DATE OF CANCELLATION. 2. IF TIlE POLICY IS CANCELED BEFORE ITS EXPIRATION DATE FOR TIlE NON-PAYMENT OF PREMIUM, TIlE ISSUING COMP ANY SHALL PROVIDE CITY AT LEAST A TEN (10) DAY WRITTEN NOTICE BEFORE TIlE EFFECTIVE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO: PURCHASING AND CONTRACT ADMINISTRATION CITY OF PALO ALTO P.O. BOX 10250 PALO ALTO, CA 94303 2 Professional Services Rev. January 2009 \\CC-TERRA \jarreoJ\PURCHDOC\SAP Bids and Proposals\RFP\RFPJ 35076 Street Tree Inventory· Data Integration and Analysis\Contract r.lOn~071'i nAVFY (loc ,,; .. TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: CITY MANAGER DATE: MARCH 15, 2010 CMR: 169.10 REPORT TYPE: CONSENT SUBJECT: Adoption of a Resolution Authorizing the Association of Bay Area Governments (ABAG) to Accept an American Recovery and Reinvestment Act Residential Building Retrofit Program Grant Award on Behalf of the City of Palo Alto and to Enter Into All Necessary and Related Contracts, Agreements and Amendments RECOMMENDATION Staff requests that the Council: 1) Adopt the Resolution In Attachment A authorizing Association of Bay Afea Governments (ABA G) to accept an American Recovery and Reinvestment Act Residential Building Retrofit Program grant award on Behalf of the City of Palo Alto and to enter into all necessary contracts, agreements, and amendments on its behalf to implement and carry out the projects; 2) Recognize Santa Clara County (SCC) as the lead local implementer for the projects described in Attachment B for all of the local governments in Santa Clara County; and 3) Recognize ABAG as the fiscal agent, which will disburse the funds to Santa Clara County to implement and carry out the projects. EXECUTIVE SUMMARY ABAG has been awarded a grant from the California Energy Commission's (CEC) State Energy Program (SEP) for $10.75 million to fund their proposed "Retrofit Bay Area" program. Santa Clara County (SCC) passed a resolution on March 2nd to accept this grant funding as the lead local implementer in the ABAG project. The action requested of Council does not directly grant CMR: 169:10 Page 1 of5 the city of Palo Alto any funds. Your action however is a prerequisite to any potential funding. The exact details of the program are not yet available, but the projects will focus on education, outreach and coordination of other existing related programs. There are no costs to the City of Palo Alto to participate in this ABAG program or in SCC's effort, and there could potentially be funds available for which the City of Palo Alto Utilities Department (CPAU) could apply to develop or enhance current residential retrofit programs. In order to participate in this program, Council needs to adopt the attached resolution. If the resolution is not adopted, the City will be unable to participate in any County projects funded by ARRA for this program. BACKGROUND The CEC's funded the SEP with $95 million to provide an unprecedented opportunity to develop and implement a regional community-scale building retrofit program. ABAG, in partnership with the eight counties and a total of 104 local governments in the San Francisco Bay Area, is working to present an innovative proposal, "Retrofit Bay Area ", in order to establish the infrastructure for a market-driven regional residential retrofit program. This self-sustaining program will stimulate the economy and create jobs while assisting in the transformation of energy markets in California. Designed for scalability and transferability, this program will create a model that can be replicated statewide and nationally. ABAG has been awarded a $10.75 million grant to fund "Retrofit Bay Area ", a region-wide energy efficiency program with goals to retrofit 17,000 homes (single and multifamily) to achieve reduction in home energy consumption, while creating home energy retrofit jobs. The grant includes regional program development, local program development and implementation, evaluation, and measurement, as well as implementation, administration and reporting of the installation effort. ABAG and its grant Steering Committee have agreed to a population-based allocation for each county-specific program. SCC's budget allocation is $1.9 million. Funds will be released by ABAG to SCC, as the County is the program implementer for its local jurisdictions. Attachment B provides a summary description of the "Retrofit Bay Area" program and SCC's role. The CMR: 169:10 Page 2 of5 / grant will fund County staffing to implement the program. The CEC and ABAG are working on their grant agreement, which includes a project description, work statement tasks and milestones, budget and schedule. After completion of their agreement, ABAG will work with the counties to form agreements for local implementation funding to be distributed. The "Retrofit Bay Area" program encompasses the outreach, education and marketing related to other existing efficiency programs. It compliments another residential effort which the Council approved on December 14,2009, the CaliforniaFIRST Program, which has also been funded by the SEP (CMR 449:09). The CaliforniaFIRST Program is a financing program being developed by California Communities to allow owners of property in participating cities and counties to finance renewable energy, energy efficiency and water efficiency improvements on their property. If a property owner chooses to participate, the improvements will be financed by the issuance of bonds by California Communities. California Communities will levy "contractual assessments" on the owner's property to repay the portion of the bonds issued to finance the improvements on that property. "Retrofit Bay Area" will also complement the City of Palo Alto's Green Building Program by upgrading existing housing stock of participating residents. RESOURCE IMPACT If approved, minor staff time may be required to apply for funds, or may be required for marketing and coordination of county programs, although these efforts are in line with current staff goals, activities and programs. Resources from the City side will be kept relatively low because ABAG will accept the grant award from the CEC's SEP funding related to the "Retrofit Bay Area" Program. SCC will be the lead local implementer for the projects described in Attachment B for all of the local governments in SCC. ABAG, as fiscal agent, will disburse the grant funds to SCC to implement and carry out the projects described in Attachment B. POLICY IMPLICATIONS Implementing this financing mechanism will reinforce the City of Palo Alto's policies and goals to encourage energy efficiency installations and to assist customers in their attempts to use electricity more effectively. Goals being supported include the City Council Priority, Page 3 5 "Environmental Protection," the Ten-Year Energy Efficiency Program, and the Climate Protection Plan. ENVIRONMENTAL REVIEW With this action, the council will find that the authorization for ABAG to accept an American Recovery and reinvestment Act grant is not a "project", because it is not an activity which may cause either a direct physical change in the environment or reasonably foreseeable indirect physical change in the environment. Santa Clara County will be the lead agency for energy efficiency projects it undertakes. If implemented by the City of Palo Alto, the energy efficiency projects described in Exhibit A will be categorically exempt from CEQA pursuant to California Code of Regulations, Title 14, sections 15301 (repairs and minor alterations to existing facilities), 15302 (replacement or reconstruction of existing structures and facilities), 15306 (information collection), 15308 (actions to protect the environment), 15309 (inspections), and 15322 (training programs) because the projects would develop standards for resource conserving and energy saving retrofits of existing structures in conformance with existing building codes; train homeowners, contractors and other building professionals; encourage participation in green retrofits program; provide rebates for tested and certified retrofit projects; and monitor and evaluate environmental performance of projects. ATTACHMENTS A. Resolution of the Council of the City of Palo Alto Authorizing the Association of Bay Area Governments (ABAG) to Accept an American Recovery and Reinvestment Act Residential Building Retrofit Program Grant Award on Behalf of the City of Palo Alto and to Enter Into All necessary and Related contracts, Agreements and Amendments; B. Exhibit A. "Retrofit Bay Area" Comprehensive Residential Building Retrofit Program. Summary of grant proposal slj.bmitted by ABAG to the California Energy Commission on December 21,2009 PREPARED BY: Manager, Utilities Marketing Services CMR: 169:10 Page 4 of5 APPROVED BY: CITY MANAGER APPROVAL: CMR: 169:10 ~~-:iY::-. DEBRA VAN DUYNHOVEN Assistant Director, Utilities Customer Support Services Page 5 of5 Attachment A NOT YET APPROVED Resolution No. --- Resolution of the Council of the City of Palo Alto Authorizing the Association of Bay Area Governments (ABAG) to Accept an American Recovery and Reinvestment Act Residential Building Retrofit Program Grant Award on Behalf of the City of Palo Alto and to Enter Into All Necessary and Related Contracts, Agreements and Amendments WHEREAS, the City of Palo Alto ("City") recognizes that it is in the interest of the local, regional, state, and federal agencies to stimulate the economy; create and retain jobs; reduce fossil fuel emissions; and reduce total energy usage and improve energy efficiency; and WHEREAS, the City has committed to an ongoing, coordinated effort to reduce the emissions that cause global warming, improve air quality, reduce waste, cut energy use and save money. The City is committed to reducing community-wide greenhouse gas emissions by 5% below its 2005 baseline by 2012 and 15% below the 2005 baseline by 2020; and WHEREAS, State Energy Program (SEP) funds are available through the California Energy Commission's SEP Funding Opportunities for grants to eligible local governments for cost-effective energy efficiency projects; and WHEREAS, the SEP allows for public agencies or non-profit entities to apply for funds on behalf of eligible local governments; and WHEREAS, the City is eligible for SEP funding under the California Energy Commission's SEP Program; and WHEREAS, the City has collaborated with the Association of Bay Area Governments (ABAG) to submit a regional application to implement the energy efficiency projects described in Exhibit A for the purpose of qualifying for SEP funds from the California Energy Commission; and WHEREAS, the City has considered the application of the California Environmental Quality Act (CEQA) to the approval of the energy efficiency projects described in Exhibit A; and NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE, as follows: SECTION 1. That in compliance with the California Environmental Quality Act (CEQA), the City finds that the Council's authorization for ABAG to accept a American Recovery and Reinvestment Act Retrofit Bay Area Program grant is not a "project", because it is not an activity which may cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Santa Clara County will be the lead agency for energy efficiency projects it undertakes. If implemented by the City of Palo 1 100308 syn 6051116 NOT YET APPROVED Alto, the energy efficiency projects described in Exhibit A will be categorically exempt from CEQA pursuant to California Code of Regulations, Title 14, sections 15301 (repairs and minor alterations to existing facilities), 15302 (replacement or reconstruction of existing structures and facilities), 15306 (information collection), 15308 (actions to protect the environment), 15309 (inspections), and 15322 (training programs) because the projects would develop standards for resource conserving and energy saving retrofits of existing structures in conformance with existing· building codes; train homeowners, contractors and other building professionals; encourage participation in the green retrofit program; provide rebates for tested and certified retrofit projects; and monitor and evaluate environmental performance of projects. SECTION 2. The City authorizes ABAG to accept the grant award, on its behalf, from the California Energy Commission's SEP Funding related to the Retrofit Bay Area Program. SECTION 3. The City recognizes the County of Santa Clara as the lead local implementer for the projects described in Exhibit A for all of the local governments in Santa Clara County. SECTION 4. ABAG, as fiscal agent, will disburse the grant funds to Santa Clara County to implement and carry out the projects described in Exhibit A. SECTION 5. This resolution shall take effect immediately upon its adoption. The City Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the Secretary of California Communities. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk Mayor APPROVED AS TO FORM: APPROVED: Deputy City Attorney City Manager Director of Utilities 2 100308 syn 6051116 Attachment B EXHIBIT A Retrofit Bay Area Comprehensive Residential Building Retrofit Program Summary of grant proposal submitted by ABAG to the California Energy Commission on December 21, 2009 Description of Proposed Program The Association of Bay Area Governments (ABAG) is collaborating with eight Bay Area counties to establish a comprehensive residential single-family and multifamily building retrofit program that leverages regional cooperation and funding while enabling autonomy at the local. level. The proposed ABAG program aligns with local, regional and national goals of promoting economic vitality through an increase in green jobs, reducing U.S. oil dependency through increases in energy efficiency and deployment of renewable energy technologies, and reducing greenhouse gas emissions. On behalf of Alameda, Contra Costa, Marin, San Francisco, San Mateo, Santa Clara, Solano and Sonoma Counties, ABAG submitted a proposal to the California Energy Commission's State Energy Program (SEP) to receive $10.8 million in American Recovery and Reinvestment Act (ARRA) grant funds administered by the U.S. Department of Energy. This grant program, known informally as SEP 2 to distinguish it from three other elements of California's SEP program, runs from February 11,2010 to March 31, 2012. The ARRAISEP 2 grant funds will be used by ABAG program participants to carry out local and Bay Area-wide consumer outreach and education campaigns and workforce development activities that will accelerate demand for home energy retrofits and expand the regional building industry's capacity to delivery high- quality, cost-effective retrofit services. To achieve these goals, Retrofit Bay Area has identified a set of three core program objectives: 1. Provide Property Assessed Clean Energy (PACE) financing to address the high upfront cost of retrofits, which enables homeowners to finance energy efficiency retrofits and renewable energy improvements through assessments paid via their property taxes. 2. Demonstrate more effective marketing and outreach methods to inform and motivate property owner participation. 3. Streamline participant, contractor, and administration processes to reduce the high transaction costs and build a quality "green" workforce. The ABAG program thereby will complement existing and planned local retrofit activities. Page 1 of2 Program Participants and Roles Participant Role Association of Bay Area Governments Fiscal agent and contract administrator Alameda County (Stop Waste. Org) and Regional tasks and local retrofit program Sonoma County (Sonoma County implementation Transportation Authority) Contra Costa, Marin, San Francisco, San Local retrofit program implementation Mateo, Santa Clara and Solano Counties Bevilacqua Knight, Inc., Build It Green and Regional and local implementation assistance, California Building Performance Contractors quality assurance and reporting Association Santa Clara County's Role Santa Clara County (County or SCC) has represented the interests of the County and its cities in working with ABAG to develop a regional energy program and is working with the cities to develop a countywide element that will become the SCC Residential Retrofit Program (SCCRRP). Once grant funding is received, SCC's portion is more than $1,950,000 for the SCCRRP to implement local efforts to promote energy audits and retrofits for the residential sector in all the cities and unincorporated areas of the County. SCC is providing a grant process for nonprofits, businesses, housing agencies, utilities and consulting firms to provide energy audits to the residential community. The SCCRRP will consist of a suite of environmental programs and information, including PACE financing options that will be uniformly packaged, marketed and presented to County constituents. The energy audits are expected to stimulate interest in comprehensive home retrofits such as added insulation, weatherization, heating, ventilation and air conditioning (HV AC) upgrades, and energy efficient appliances, resulting in significant reductions in energy and water consumption. The nearly $2 million that will be available for the SCCRRP will fund two County staff positions and various programs. ABAG is seeking to facilitate 17,000 retrofits in the Bay Area during the grant cycle, with an average of20% energy reduction. Based on the County having 26% of the population of the eight participating counties, the SCCRRP will aim for 4,359 retrofits. It is projected that this work will result in 446 new jobs, $1.7 million saved in energy costs for homeowners, 100 billion reduction of BTU, and $43.8 million spent in the County. The SCCRRP will not change the permitting or building inspection processes within the County, and will seek to inform and educate residents on steps that they can take to reduce their energy consumption and water usage. Residents who participate in the program and have energy audits performed on their homes will be encouraged to implement the steps recommended by the energy audit and upgrade their home to be more energy efficient and to consume less water. Page 2 of2 TO: HONORABLE CITY COUNCIL 7 FROM: CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: MARCH 15,2010 CMR:172:10 REPORT TYPE: CONSENT SUBJECT: Approval of Change of High Speed Rail Subcommittee from Ad Hoc Committee to Standing Committee RECOMlVIENDATION Staff recommends that Council approve the change of the City Council High Speed Rail Subcommittee from an Ad Hoc Committee to a Standing Committee. DISCUSSION On March 2, 2009, the City Council directed the Mayor to establish an Ad Hoc City Council High Speed Train Subcommittee to represent Palo Alto in meetings with other Peninsula cities, regional agencies, and the California High Speed Rail Authority (HSRA) working meetings with City staff. The Subcommittee began with three members and was expanded to four members in late 2009. Current members include Mayor Burt and Council Members Klein (chair), Price and Shepherd. On May 18,2009, the City Council adopted Guiding Principles to provide direction to the City's High Speed Rail Ad Hoc Committee. The Ad Hoc Committee has been working closely with the Peninsula Cities Consortium (PCC) to develop public outreach and education efforts, monitor, and evaluate High Speed Rail (HSR) activities, and to explore urban design solutions that consider community values for the HSR project. The Ad Hoc Subcommittee has been meeting regularly since March and has now scheduled meetings on a bi-weekly basis in order to stay informed and monitor High Speed Rail (HSR) activities. The HSR project is a complex, protracted multi-year (and potentially permanent) project that will require continued oversight and evaluation by the Subcommittee for the foreseeable future. Since Ad Hoc Committees are defined as being of short duration, it is appropriate to transition the Ad Hoc HSR Subcommittee to a new Standing Committee of the City CounciL For more related information, see agenda item #8 included in this packet for the HSR monthly update. CMR: Page 1 of2 POLICY IMPLICATIONS The recommendations in this report are consistent with existing Council Procedures and Council policy direction as stated in the Guiding Principles related to the California High Speed Rail Project. RESOURCE IMPACT Because of the importance of this project and the need for the City to be responsive to new information released by the HSRA, staff will be preparing a budget proposal for the FY 2010- 2011 operating budget that will document the direct staff costs and non-salary expenses that will be required to support the City Council and HSR Standing Committee oversight activities. ENVIRONMENTAL REVIEW The recommendations in this report do not constitute a project requiring environmental review under the California Environmental Quality Act. ATTACHMENTS A. GuidingPrinciples PREPARED BY: GA ELI NS APPROVED BY: CITY MANAGER APPROVAL: CMR: Page 2 of2 ATTACHMENT A City Council High Speed Rail Subcommittee Guiding Principles Adopted May 18, 2009 The City Council High Speed Rail Subcommittee, consisting of four members, is designated by the City Council to represent the City in public in meetings with community groups and stakeholders, when speaking to other public agencies, when providing written correspondence in advocating for legislation related to high speed rail. The Subcommittee will have the authority to speak on behalf of the City Council at hearings on short notice when full City Council discussion at a regularly scheduled Council meeting is not feasible. In such cases the Subcommittee should be guided by broad principles that are consistent with existing City Comprehensive Plan and adopted City Council policies. In order to ensure consistency with existing City Council positions and policies, the Subcommittee will be guided by the following principles: • The City is supportive of efforts to improve accountability and effective governance of high speed rail planning and operations. • The City advocates advancing economic feasibility analysis and project financing options by High Speed Rail Governing Body to implement selected alternatives. • The Ad Hoc committee will work with peninsula cities coalition to draft Memorandum of Understanding with Caltrain and HSRA and return to full Council for review and approval. • The City understands the opportunity to apply for Federal stimulus funding but is concerned that enough time is allowed for appropriate analysis, public process, and decision making. • The City recognizes that High Speed Rail, if done correctly, has the potential to minimize adverse impacts and be beneficial to the community. • While acknowledging that the current direction for the San Jose to San Francisco High Speed Train project is to use the Caltrain right~of-way as the for the high speed rail corridor between San Jose and San Francisco, the City is open to and could support alternative alignments. • The Ad Hoc Committee will be guided by the City of Palo Alto Scoping Comments for the California High Speed Rail Authority'S San Francisco to San Jose High Speed Train (HST) Environmental Impact Report/Environmental Impact Statement (EIRlEIS). • The City supports Caltrain electrification and improved commuter rail services between San Francisco and San Jose. The City supports evaluation of operating conditions along the Caltrain right-of-way that would be conducive to a hiib speed rail intercity connection in San Jose, with improved Caltrain commuter rail service between San Jose and San Francisco. • The City is supportive of exploring creative urban design and use of context- sensitive design processes that consider community values in collaborative community-sensitive planning and for the high speed rail project. • The Subcommittee shall provide monthly reports to the Council on the activities of the Peninsula cities Consortium. • The Subcommittee will meet regularly with community leaders and stakeholders to inform and involve the larger Palo Alto community in the planning, review, oversight and decision-making for the San Francisco to San Jose HST project. TO: HONORABLE CITY COUNCIL 8 FROM: CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: MARCH 15,2010 CMR:173:10 REPORT TYPE: STUDY SESSION SUBJECT: Monthly Update on City Activities Related to the California High Speed Rail Project RECOMMENDATION This report is for infonnation only and no action is required. BACKGROUND Since passage of Proposition lA in November 2008, approving funds for the High Speed Rail connection from Los Angeles to San Francisco, the High Speed Rail Authority (HSRA) has initiated environmental and engineering studies for implementation of the train system statewide. The HSRA consulting team for the San Francisco to San Jose Project Level Environmental Impact Report (EIR) began work in early 2009. On May 18, 2009, the City Council adopted Guiding Principles to provide direction to the City's High Speed Rail Ad Hoc Committee. The Ad Hoc Committee has been working closely with the Peninsula Cities Consortium (PCC) to develop public outreach and education efforts, monitor, and evaluate HSR activities, and to explore urban design solutions that consider community values for the high speed rail project. On August 3, 2009, the Council approved a transfer of Council Contingency in the amount of $70,000 to fund the a HSR symposium (or Teach-in) in September, a two-day design workshop in October and retention of outside expertise to provide peer review and analysis of technical documents including the HSR project alternatives analysis. On January 25, 2010, the Council authorized a transfer of $88,000 from the Council Contingency account to fund the FY 2010 Resources Plan for the Ad Hoc Council HSR Subcommittee for: (1) additional engineering consultant services for the peer review of the Alternatives Analysis for the San Francisco to San Jose HSR project, (2) outside expertise for peer review ofHSR ridership, (3) a Sacramento legislative liaison consultant to represent the City'S interests to the State Legislature, and (4) a one-day symposium on financing of the HSR alternatives and potential HSR station in Palo Alto. CMR: Page 10f6 DISCUSSION This report provides an update regarding activities related to the High Speed Rail project that have been undertaken at the State and City levels since the last report in January 2010. Schedule and Council Reports The schedule established by High Speed Rail staff and its consultants is extremely unpredictable. The Council's High Speed Rail Subcommittee and staff monitor closely changes to announced meetings and other activities, however unanticipated changes frequently occur without much notice. In an effort to provide as much transparency as possible, staff has arranged to broadcast HSR Subcommittee meetings and to make recordings available via the City'S website. Regular broadcasts would supplement twice monthly Subcommittee meetings and monthly Council updates. San Francisco to San Jose HST Project Alternatives Analysis The Alternatives Analysis (AA) Report was scheduled to be completed and ready for circulation and presentation to the HSRA Board on March 4. However, HSRA delayed its released pending review of the AA by the Federal Railroad Administration (FRA) and now anticipates the report will be released on April 1, the next HSRA Board meeting date. However, based on recent experience with HSRA deadlines, this is a fluid situation, with some uncertainty about the actual release date. The AA is an important part of the EIRJEIS as it will incorporate conceptual engineering information, identify and compare the alternatives, and will explain why some alternatives will be retained while others will be dropped from further study in the EIRJEIS. The AA evaluation will be based on planning and engineering at a 2% to 4% level of engineering design. This level of detail may be enough to understand if an alternative can feasibly be constructed and if the alternative might encounter significant environmental, community, economic and construction- related impacts. The AA will describe the alternatives based on alignment and vertical profile, that is, whether the alignment will be below ground, at-grade, or elevated. The City has retained the engineering firm Hatch Mott MacDonald to conduct an independent peer review of technical conclusions in the AA, such as tunneling feasibility and other below grade options, costs, and railroad operations. Hatch Mott is ready to begin their analysis as soon as the report is issued. The scope of work includes full technical review and participation in meetings with the Ad Hoc Committee, City Council and a community meeting. At the unanimous request of the Ad Hoc Committee, in a letter dated February 24, 2010 (Attachment A), the City has also formally requested that HSRA extend the 45 day comment period for the AA to a total of 90 days in order to provide adequate time for the Council and community to fully understand the complexities of the alternatives that are identified in this major milestone report. During this time, the peer review will be prepared and the City will schedule two community meetings prior to the City Council finalizing its comments on the report. The Ad Hoc Committee further directed staff to request that the HSRA and Peninsula Rail Program (PRP) post the most up-to-date, accurate right-of-way maps for the Caltrain corridor CMR: Page 2 of6 and the Caltrain Station Footprint study on their respective websites to infonn the public about the potential right-of-way implications for the Alternatives Analysis and a potential HSR stop in Palo Alto (Attachment B). Status of Bay Area to Central Valley Program EIR In August 2008, a group of petitioners filed a lawsuit in Sacramento County Superior Court claiming the Authority's Final Bay Area to Central Valley Program EIR (PEIR) violated the California Environmental Quality Act (CEQA) in numerous ways. (Town of Atherton, et aI., v. California High-Speed Rail Authority, et al). The City'S Amicus Curae Brief in support of the petitioners (Attachment C) details the City'S position on the deficiencies in the PEIR. In particular, the brief identifies significant environmental impacts on the Peninsula related to land use compatibility, noise impacts, vibration, and visual aesthetics that were not properly identified, analyzed, or mitigated in the PEIR In August 2009, the Court issued a ruling that the program ErR required reVlSlon and recirculation in the several areas to comply with CEQA related to the San Jose to Gilroy section and vibration impacts, etc. On December 3,2009, the Authority approved resolution rescinding the 2008 certification of the Program EIR and related approvals and directed Authority staff to prepare the necessary revisions to the EIR and circulate them in accordance with CEQA for public comment. The Authority will consider the revised PEIR and the entire record of material before making a new decision to certify the revised Final Program EIR. The Authority is scheduled to release the revise PEIR on March 11,2010 and initiate the 45 day comment period. Staff will work with the HSR Council Subcommittee and prepare comments for Council review and approval in early April. HSRA Business Plan The 2009-10 State Budget mandated that the HSRA submit an updated Business Plan to the Legislature by December 15, 2009. The report updated the cost of the project's Phase 1 into years of construction dollars (rather than current year dollars) and provided an updated financing plan that takes into account Proposition lA, ARRA stimulus funding, and other funding sources that were not known last year. The new Business Plan projects approximately 30% lower system ridership by 2035, higher construction costs, and higher passenger fares based on 83% of the cost of air travel rather than 50% cost. On January 12, 2010, the Legislative Analyst's Office (LAO) released its initial comments to the Assembly Transportation Commission on the 2009 Business Plan. The LAO found the report substantially lacking in detail and cited the lack of infornmtion on risk management, including the risk of incorrect ridership forecasts and the financial risks associated with a flawed funding plan. The LAO further found the timelines very general and potentially inconsistent and identified a potential violation of state law associated with the funding plan. On February 11, 2010, the Mayor sent a letter (Attachment D) to Senator Simitian, Assemblyman Ruskin, and six other local state legislators outlining the HSR Subcommittee's concerns about the Business Plan. The Subcommittee, in conjunction with the Peninsula Cities Consortium, identified a number of deficiencies and flaws in the Business Plan that need to be CMR: Page 3 of6 addressed and rectified before the project proceeds further. Those issues relate to the inadequate and fundamentally flawed ridership study, a questionable financing strategy that relies upon "hoped for" federal funding, and omits key cost elements in the San Francisco to San Jose segment, and a grossly deficient risk management· plan. These issues and concerns were presented by Palo Alto Mayor Burt at the Joint Hearing of the Senate Budget Subcommittee #2 on Resources, Environmental Protection and Energy and Transportation, and the Senate Transportation and Housing Committee on January 21 in Palo Alto. On March 2, 2010, the LAO released new comments on the HSRA budget for 2010-11 and recommended reducing or withholding funding for contract funding, capital land acquisition, and staffing levels requested by the HSRA until further supporting information is provided (Attachment E). Context Sensitive Solutions (CSS) The Peninsula Rail Program adopted Context Sensitive Solutions, a dynamic, two-way collaborative process, to support the active involvement of Peninsula communities in the planning and design of California High-Speed Rail and Caltrain 2025 projects. CSS is a collaborative and interdisciplinary approach that involves all stakeholders to develop a transportation project that fits its physical setting and preserves scenic, aesthetic, historic, and environmental resources while maintaining safety and mobility. CSS helps communities, stakeholders, and project sponsors collaborate to achieve feasible solutions that meet community and project goals. The process offers an opportunity for the community and the design team to define key values, priorities, measures of success, and context considerations. The PRP has prepared a CSS Toolkit which will guide the process, however the release of the toolkit has also been delayed by HSRA. When the toolkit becomes available, staff will be reviewing it and working with the CSS stakeholder representatives from Palo Alto to follow the process. Ad Hoc HSR Subcommittee Activities The Council Ad Hoc Committee continues to meet every two weeks and has focused much of its efforts on working with the other peninsula communities that are potentially impacted by high speed rail. Mayor Burt has appointed Council Members Klein, Price, and Shepherd to serve with him on the committee this year. The HSR project is a multi-year project that will require continuation of the Subcommittee for the foreseeable future. Since Ad Hoc Committees are defined as being of short duration, typically one year or less, it is appropriate to transition the Ad Hoc HSR Subcommittee to a new Standing Committee of the City Council. City Council's agenda tonight (3/15) contains a consent calendar item (#7) which converts the Subcommittee to a Standing Committee. Mayor Burt also represents Palo Alto on the Peninsula Cities Consortium (PCC). The PCC continues to engage various community groups organized around the potential impacts of high speed rail to coordinate local, statewide, and national legislation. The PCC cities are also considering jointly sharing costs for technical expertise, as well as considering entering into a Memorandum of Understanding with the Peninsula Rail Project. CMR: Page 4 of6 Sacramento Legislative Liaison Update The City has retained Ravi Mehta of Capitol Advocates to provide legislative liaison and advocacy services in Sacramento on High Speed Rail issues. Mr. Mehta is tracking all legislation that directly or indirectly impact the HSR project. Mr. Mehta has provided a legislative update (Attachment F) on the most recent legislation of concern. Of particular concern are a series of bills that have been introduced that would exempt projects selected by the Business, Transportation, and Housing Agency from judicial review pursuant to the California Environmental Quality Act (CEQA). Since CEQA legislation was enacted into law in 1970, and required state and local agencies to identify and disclose the significant environmental impacts of their actions and to avoid or mitigate those impacts, if feasible. CEQA statutes have assured full public scrutiny and input on the environmental impacts ofprojects and judicial recourse. At the direction of the HSR Subcommittee, staff is working with Capitol Advocates to oppose any legislation which would diminish or circumvent the current protections or in any way create exemptions from the California Environmental Quality Act (CEQA) and court review for major infrastructure projects each year, including but not limited to the California High Speed Rail Project. Staff will prepare letters to our local legislators recommending support, opposition or continued monitoring of each bill. Next StepslPlaJ:Jl1ed Activities The schedule for local PCC and City Council meetings is provided as Attachment G. The next milestones for the Project are: Issue of Bay Area to Central Valley Program EIR -March 11, 201 0 Issue of Alternatives Analysis Report -early April 2010 Draft EIRJEIS -First Quarter of2011 Final EIRIEIS End of2011 POLICY IMPLICATIONS The recommendations in this report are consistent with existing Council policy direction related to the California High Speed Rail Project. ENVIRONMENTAL REVIEW The recommendations in this report do not constitute a project requiring environmental review under the California Environmental Quality Act. ATTACHMENTS A. February 24,2010 letter to HRSA re Extension of Comment Period for the San Francisco to San Jose HST Project EIR B. March 2,2010 letter to HSRA/PRP re Caltrain Corridor Right-of-Way Maps and Station Footprint Study C. Amicus Curae Brief D. February 11,2010 letter to State Legislators re HSR Business Plan CMR: Page 5 of6 E. Excerpt from March 2,2010 Legislative Analyst's Office 2010-11 Transportation Budget Analysis F. Legislative Update Memorandum from Capitol Advocates G. Letter dated March 3,2010, to Mayor Pat Burt from Peninsula Rail Program PREPARED BY: ~a...--£<&u..aJ GAYLE IKENS APPROVED BY: CITY MANAGER APPROVAL: CMR: Page 6 of6 ATTACHMENT A February 24, 2010 Dominic Spaethling, Regional Manager California High Speed Rail Authority 925 L Street, Suite 1425 Sacramento, CA 95814 ~~J:x Q!_r~<?_M!Q Office of the City Manager FAX Transmittal 916-322-0827 Re: Request for Ninety Day Comment Period for San Francisco/San Jose HST Project Alternatives Analysis Dear Mr. Spaethling: The City wishes to thank you and your project team for meeting with the City Council High Speed Rail Subcommittee and community members on February 9, 2010 regarding the pending release of the Alternatives Analysis for the San Francisco to San Jose Project EIR/EIS on March 4, 2010. The Subcommittee looks forward to the opportunity to provide input to the California High Speed Rail Authority on the Alternatives Analysis. The Subcommittee finds, however, that the limited 45 day comment period is highly constraining for review and evaluation of such a major report. By unanimous action on February 16, the Subcommittee voted to request that HSRA extend the comment period by approximately forty- five (45) days, for a total 90 day comment period. The extended period is necessary to 1) fully understand the complexities of the alternatives that are identified, and 2) better inform the Palo Alto community about the content and findings of the Alternatives Analysis, including holding 2 community meetings after the March 15 presentation by HSRA staff to the City Council. The City believes this outreach will best serve the community of Palo Alto and the HSRA by providing more cohesive and thoughtful comments on the Alternatives Analysis and its implications for Palo Alto. Thankyou for considering this request, and please let us know as soon as possible whether the deadline wiIl b~ extended. If you or others have questions, please feel free to contact me or City Manager James Keene. l:£:L STEVr;:~~~ Deputy City Manager cc: City Council Mehdi Morshed, HSRA Robert Doty, Peninsula Rail Project James Keene, City Manager Printed with soy-based iolt-=. no wor'J.., TPrvdpo nan¥f nrnrpssed without chlorine p.G. Box 10250 PaloAlto,CA 94303 650.329.2563 650.325.5025 fax ATTACHMENTB March 2, 20 I 0 Dominic Spaethling, Regional Manager and California High Speed Rail Authority 925 L Street, Suite 1425 Sacramento, CA 95814 Ci~ of Palo Alto Office of the City Manager FAX Transmittal 916-322-0827 . 650-508-6365 Robert Doty, Program Director Peninsula Rail Program 1250 San Carlos Avenue San Carlos, CA 94705 Re: Caltrain Corridor Right-of-Way Maps and Station Footprint Study Dear Mr. Spaeth ling and Mr. Doty: The City of Palo Alto wishes to thank you for directing us to the link on the Caltrain HSR Compatibility Blog (http://caltrain-hsr.blogspot.com/) containing the 2007 Caltrain corridor right-of-way maps. This link has also been posted on the CAARD website. However, in order to ensure that this information is accurate and valid, we request that the Peninsula Rail Program (PRP) verify the validity of these maps by posting them officially on the Caltrain PRP and the California High Speed Rail Project (HSRA) websites. Ifthese are no longer current, we request that the most up-to-date maps be posted on these websites. On a related matter, Palo Alto requests that the PRP post the documents related to the Caltrain Station Footprint Study on its website as well. This infonnation is not available online at the present time. Although this study only covered San Mateo County stations, it would be valuable for the City of Palo Alto to review in anticipation of the upcoming HSRA station study for a mid- peninsula high speed train stop. Thank you for your attention to these requests and we look forward to a favorable response. Deputy City Manager cc: City Council James Keene, City Manager HSR Ad Hoc Committee l/rinted with soy-based inks on 100% recycled paper process~d without ch10rine P.O Box 10250 Palo Alto, CA 94303 6.'30.329.2563 650.325.5025 fax ATTACHMENT C I ARTHUR. F. COON (Bar No. 124206) ~cC!l,com . 2 ICRlSTlNA DANIEL LAWSON (Bar No. 221131) 3 ~.WRBGALIA Exempt from Filing Feu Pursuant to Government Code. § 6/03 A Professional Law Corporation 4 1331 N. California Blvd., Fifth FJoor Poat Omce Box 8177 S Walnut Creek, California 94596 . ToJ~e:92S93S 9400 6 FacsJl'oiJe: 925 935 9400 1 Attorneys for Amicus Curiae CITY OF PALO ALTO ~LED/E1tDORSED '-~~ MAY -1 2009 A J By: _---J.T_~C=AL:2AU~S~TR~t'IJ:.~'f/--~ ____ ~~=~I~o/=CIU='k~ _____ ~ 8 9 10 11 12 13 24 15 16 17 18 19 10 SUPBRIOR COURT OF THB STATE OF CALJPORNIA COUNTY OF SACRAMENTO TOWN OF ATHERTON, a Municipal Corporation, PLANNING AND CONSERVATION· LEAGUE, a California ftoupJOfit co~ration, CITY OF MBNLO . PARK, •• MuDicipal Co~ration, TRANSPORTATION SOLUTIONS DEPBNSB AND EDUCATION FUND, a California nonpofit corporation, CALIPORNIA RAIL POUNDATION, a California nonprofit corpofllioft. and SA YRAIL ALLIANCE, • Califomia nonprofit ~ation, and other similarly situated entitles, Petitioners and Plaintiffs, v. CALIFORNIA HIGH SPEED RAIL 21 AtmlORlTY, a public entity, and DOES 1-20, 22 23 24 25 26 27 28 CO'A'O'0717Uf14U Respondents and Defondant$. ~cNo.34-2008-80000022 AMICUS CUIUAE BRIEF OF THE CITY OF PALO ALTO IN SUPPORT OF PETITIONERS' VERIFIBD PETITION FOR WRIT OF MANDATE AND COMPLAINT FOR1NJUNCTIVB AND DECLARATOR.Y B.BLIEF I BY FAX Dato Complaint Filed: August 8, 2008 Trial Date: May 29, 2009 AMICUS CURIAE BRIEF OP THE crrv OF PALO ALTO , TABLE OF CONTENTS IN'TRODUCTION .................................................................................. , ••••.•.•...•...................•.. 1 RELBV ANTPBNINSULA ... RELA TED FACTS AND BACKGROUND ......................... 2 .ARGUMENT ..... , ................... , ...................................................... ~ •••••........•. J> .......................... 4 . A. THB SECOND PBIR IS INADEQUATE. AS IT FAILS TO COMPLY WITH CBQA'S MANDATORY REQUIREMENTS FOR ElKS ......................... 4 1. Program BIRs Must Ct)ver The ·Same General Content as Project Bma .................... ~ ................................................................................... ~ ....•... 4 2. If An lDad~uate Program BIR Is Certified, Its Inadequacies Wi11 Infect AU PUIuIe Tiers or Bnviromnental Review ..................................... S B. THE SECOND PBIR's PROJECT DESCRIPTION IS INADEQUATE ............... S C. THE SBCOND PEIR. DOBS NOT ADEQUATELY IDBNTIFY. ANALYZB, OR MITIGATB THE PBNlNSULA-RBLATBD EN'V'mONMBmAL JMPACfS C;>P ~ HST .+ •• , ..................... t •••••••••••••••••• ~ ••••••• 6 I. The Project WiIIlWuIt In Sipificant Land Use Compatibility hnpacts Not Properly Identified, Analyzed. or Mitipted In the s.econd PBJR.. .......................................................................... t .. t ............................................. 8 2. . I The Project Willa_ul. In SipificlI1t Noise Impacts Not Properly . Identified, Analyzod, or Mitigated In The SecondPSIR ............................ 9 3. 4. The Project Will Result In Sipificant Vibration Impacts Not PIoperJy Identified, Analyzed, or Mitigated In the Second PEIR ............. I 1 The Project Win R.sult In Sipificant AestbotirJVisual Resources Impacts Not Properly Identified, Analyzed. or Mitigated In the Second. PBlR. ••••. ,. .............................................................. , ...••.••.•..••.•........• 11 CONCLUSION ..................... " ......................................... " ..••.••.• , ......................................... " ...... 12 .j. AMICUS CURIAE BlUm: OF nu~ CITY OF PALO ALTO 1 2 3 4 . TABLE OF AUTHORITIU PaeN> AI Larson Boal Shop, Inc. v. Bd. 0/ Commissionera 0/ the City o/Long Beach 5 (1993) 18Cal.App .4th 729 .. , ................................................................................................. , .............. 4 6 7 8 9 Berkeley Keep Jets Over the Bay Comm. v. Board 01 Port Comm 'n (2001) . 91 Cal.App.4t111344 ................................. * .................. ~ ................. I ••••••• '"' .......................... ~ •••• ~ •••••••• 10, 11 Co,?, C~~~;dCfft~~.~~~~~~ .. ~~~:.?~ .............................................................................. S. 6 In ,e BtI)",Delta Programmalic EnvironmenlalImpaet Report Coordintlled 10 Proceedings (2008) 43 Cal.4t111143 •.... ,., ............ , ........... , .. ,. ............................................................................................... , .. 7 11 12 13 14 15 16 K08~; &~;~:t fr..~~~!~~.~~~~~ ........................................................................................... S Laurel Heights Improvement Assn. v. Regents 0/ the University 0/ California (1988) . . 47 Cal. 3d 376 ................................................... "' ............................. " ........ , ••..•..••.. , .. " .. , ............................. 4, 7 Stanislaus Natural Heritage Project v. County of Stanislaus (1996) 48 Cal.App.4th 182 ......................................................................................... 1 ......................... 7 17 IIAIVIIS 18 PubUo Resources Code 19 Sections 21000 et seq ...... , .. , ....... , ...............................................•...•... t ................................................. 1 . Section 210113.9 ........................ "' .......•..•• , .................................................... ~ ... " ..••..••...•..••••••......• (:) 20'" "Sect jOn 21()9:2.4 ..... ; ••.. · ................................ ~ .••...•..•••.••.. t ............. , ............................................... " •••••• 6 Section 2J093_ subd.(a) ..................................... " ........ ~ ........................ t ••• "" •••••••••• ., •••••••• , .................. 4 21 Section 2100'4. suM (a) ......... : ........... , ................................................................. ., ............................ S 22 23 24 25 26 27 28 PDlIBaUTHORITIES 14 Califomia Code of Regulations Section IS064, subd,. (d)(I) ...... ~ ................. , ................................................. , ..... : ............................. 10 S~tion 15083, suM (b) .................................................................................................... : ........... 6 Section 15086 ............ , ................................................................................................................ , .••.•. 6 Sections 15120 -lS132 •••••..•••••..• , •.•......••••. , ....................................................................................... 4 Section 15125. subd. (d) ....................................................................................................... 8.9 Section 15126.4, subd. (a)(I)(O) ............................................................................................ l2 Section 15143 ......... "'._ .............................. " ..•.... , ................. " .......... , ............................... , ....... 'I> ............ ~ .. 10 Section 15144 ............................ ,. ..................................... , ....................................... _ .... , ......... : ........ " 9, 11 ·ii· . AMICUS CURIAE BlUEr OF THIl CITY OF PALO Al.TO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 fO 21 22 23 24 25 26 27 28 TABLE ~F A!!jORlTIES contm ) hal') Section 15152, suttd. (b) ................•.•...••.....••.••••..••.••...•..•.•.•.•••.•.....•.•....•..•........•...•....•.•.••..••.••• 7 Section lS16S ................. ~ ............................................................................................................. I SCction 151·68_ 8UW. (a) •.. , ........................ " ........ " .••.•...•..••...••...•... ,. ............................... t ••••••••••• t1.4 Section ·15169, subc1.(b.)(4) ........ ".'# .... iI! .......................... t ••••••••••••••••••• .,.1> •••••••••••••••••••• , ••••••••••••••••••••••••••• 4 Sec:tion 15382 •..•.........••••........ : .......................................... , .......................................................... 10 Section 1.5384 .•.•.....• ~ .................................................... " .. " .......................... ~ ..... ,' ..... It •• 1t ••••••• , •••••••••••• S COPA\47107\7I1fiMfl -lIi- AMICUS CURlAB BRIEF OF THB CITY 0' PALO ALTO 1 I. INTRODUCTION 2 In 2004, Respondent CALIFORNIA HIGH SPEED RAIL AUIHORITY 3 ("CHSRA" or "Respondent'') first attempted to comply with the Califomia Bnvironmental 4 Ql.l8lity Act ("CEQA"; Pub. ResoW'Ce.a Code, f§ 21000 et seq.) through a Draft Systemwide 5 Prosram BlRIEIS (the "2004 PEm!,), which pwported to analyze the significant environmental 6 impacts of a proposed high-speed train system (the "JIST' or "Project"). When legal deficiencies 7 in the 2004 PBJR were identified, instead of correcting those deficiencies, CHSRA took the easy 8 . way out -it simply deleted. the non...compliant sections of the 2004 PBJR. and tabled its 9 consideration of the portion of the Project for which CEQA review was consequently incomplete • . 10 Then, in an interesting and novel twist on CBQA~s tieringprocess.1 CHSRA 11 directed its staff to prepare a second~ program-level onvironmonta1 impact report (the "Second 12 pBJRt,) to evaluate the previously deleted portions of the Project, and identify a preferred 13 alignment for tbe HST "within the broad corridor betWeen and including the Altamont Pass and 14 the Pacheco Pass ... connecting the San Francisco Bay Area to the Central ValJey and project level IS studies considering preferred alignment and station locations'" (AR 0OOO209i However, when 16 the draft Second PElR was 11"easOO, careful review of the document revealed that CHSRA had 17 . expanded its scope to include the portion of the HST that would traverse the San Francisco 18 Peninsula (the "Peninsula''). Like the 2004 PE~ the Second PBIR fails to comply with CEQA's 19 20 21 22 23 24 2S 26 27 28 mandatory enviromncntal review requirements. The question presented in, this case is whether CHSRA complied with its mandatory duty to scrupulously foHow CEQA. Without question. it did not. More detailed infonnation was available to CHSRA regarding the impacts of the Project on the Peninsula. and it , AlDicul PALO ALTO caa ODd no legal bub or au.borizatlon In CEQA or .... e CEQA GuideD ... for tile pnparatlo. of. lecoad, Pl'OJI'a.levei ElK rer tile ..... e project. Section 15168 of the CEQA Guidelines provides that: "A pl'OJl'8lll BIR is an EIR which may be prepared on a series of actions that can be characterized as one large project. •. " (14 Cal. Code Regs., § 15 168, subd. (8).) Here, instead of preparing a single program BIR for a series of actions that can be characteri2ed as _large project~ the CHSRA has spUt the Project into two separate parts, and has prepared a program BIR. for each separate part. This latctal environmental review frocess is unauthorized by CEQA. (See also 14 Cal. Code Regs., § lSI6S.) The Administrative Record prepared by Respondent is cited herein in the fonn "AR Xnnnnnn." X indicates the section, and nnnnnn indicates the page nwnber. COPA".,eo1\166S49.l .}. AMlCUS CURlAB BRIEf OP THE errv OF PALO ALTO 1 was possible for CHSRA to obtain it. This infonnation was absolutely necessary for CHSRA to 2 make a fully informed decision about the environmental consequences of its action. 3 Tile ~DseqlleDees of ano"iIll CHSRA to proceed with the Project based 00 a 4 delicleDt progfa. BfR .re substaatial. Because C.BQA autllorJzes f.ture ovir.melltal S review to Uer off of program level docllmeDtI, If tbls Court does Dot reqaire Secoad PEIR's 6 defideades to be corretted, those deRcleaeles wJlllDfeet all future levels of eDviroDmeatal 7 review for tbe Project. 8 II. RlLEV ANI PENINSULA-RELATED FACTS AND BACKGROUND .9 CHSRA prepared md circulated the 2004 PSIR to evaluate three transit system 10 alternatives: (1) a no project alternanve. (2) a highway andaitpOrt expansion alternative, and (3) 11 the HST. (AR B003869.) In response to comments resardinl the adequacy of the 2004 PSIR, " 12, CHSRA deleted an entire section &om the 2004 PBIR.. (petitioners' Openina Brief ("PBtl ), 6: 1 S- 13 18.) This deleted section had defectively evaluated only one route for the HST ,between the 14 CentraJ Valley and the San Francisco Bay Area: the PachecQ Pass alignment. (PB, 6: 6·22.) 15 Instead oftakins the extra time to study any alternative route. CHSRA simply deferred complete 16 enviromnental evaluation oltho Central Valley to San Francisco Bay Area alignment to a later 17 date. (AR 0000209.) J 8 NotwithstandinS that CBQA docs nQt contemplate the preparation of multiple 19 program*level ElRs for tile same "large project," in 2007 CHSRA prepared and circulated the 20 Second PEIR for the portion of the proposed Project previously deleted from the 2004 PBIR. 21 Consistent witb the direction CHSRA provided at the 'time the 2004 PBIR was 22 certified, and consistent with the Notice of Preparation, many interested parties believed that the 23 limited purpose of the Second PElIt was to evaluate environmental impacts associated with the 24 Pacheco and Altamont Pass aJignments. (AR. G000209.) This belief was confmned by reference 2.5 to the "Bay Area'to Central Valley Conidor" map included as Figure 1.1 ~ 1 in the final Second 26 PEIR. (AR B003870.) Th~ a hatched area between tbe Pacheco and Altamont Passcs was 27 described as the "Possible Alignment Area. tr (Ibid.) This batched area did not oxtend up the 28 Peninsula into the City and County of San Francisco. Notably, even the brief filed by CHSRA COPAIA'80'1\766849.2 AMICUS CURIAe DRlBF OF nlE CITY OF PALO ALTO 1 evidences a general understanding that the purpose of the Second PEIR was to evaluate 2 environmental impacts associated with the Pacheco and Altamont Pass alignments. (See 3 Respondent's Opposition Brief ("RB''), I! 12--13 ["The Authority used a fll'st~tier, program EIR to 4 focus on the br.~ad differences between the Altamont Pass and Pacheco Pass in order to choose S betWeen them. '1; RB, 4: 16-19 [" ... The Authority directed staff to prepare a new prognun EJR 6 focused on the northern mountain crossing. rr'; RD, 12: 11 .. 12 (pmpose of second program EIR. 7 was 'fto choose the northern mountain crossing to connect the HST between the Bay Area and the 8 Central Valley:'].) When the drift Second PEIR was released., CHSRA held eight public 9 hearinas -none ofwmcb were located in PALO ALTO or other Peninsula cities. (See RB, S: 13 .. 10 14, th. 1.) 11 Upon a close and detailed review of the text of the volwninous Second PEIR., it is 12 . clear its scope is much greater than believed. According to the 8eJf~deseribed "Alternatives" 13 section of the Second PEIR., the document analyzes the environmental impacts associated with 14 «[sJix Unear geograpbic belts or bands being considered for the HST system that connect different IS pw·ofthe study region." (AR B003898.) One of these "belts or bands·' extends up the 16 Peninsula from the City of San Jose into the City and County of San Francisco. (See AR 17· BOO3934.) Actual station locations on the Peninsula were identified on FiguJ'C 2.5-1, including a 18 potential station within the jurisdictional boundaries ofP ALO ALTO. (AR BOO3940.) The "San 19 Fnmcisco to San Jose'· alignment and station locatioDB options were described in detail as 20 21 22 23 24 25 26 27 28 "(oUows: COfA'of710T\166.4' 1 • Cal1rain AJipnent (Shgred .. Use Four .. Track); From San Francisco, this alipment alternative would follow south along the Caltrain rail alipment to Dumbarto~ and from there to San Jose. This alisnment assumes that the HST system would share tracks with Caltrain oommuter trains. The entire alipment would be gr.ade separated. Station location options would include a station in the lower level of the proposed new Transbay Transit Center in San Francisco or a station at 4th and King Streets, a station in Millbrae to serve SFO, and a station in either Redwood City or Palo Alto. The Caltrain shared-usc alianment would take advantage-of the existing rail inftastmQturc and would be mostly at grade. • I_sbU Ttansit Cm1eri The potential station location would serve ahe Caltrain sharedwuse alignment. a downtown terminal station. • 4th and Kins: This potential station location would serve the Caltrain shared-use four-track alignment as a downtown tennioal station. .3- AMICUS CURIAE BRIBF OF THB CITY Of PALO ALTO 1 2 3 4 S 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 • MUlbm: This potential station would SClVe as a connection with SFO. • Redwood City: 1bis potential station loCation would provide accC8sibility and serve the population between San Jose and San Francisco, • Palo AIm: This pOtential station location would provide accessibility and serve the population between San Jose and San Francisco. (AR BOO39S3·BOO39S4; see also AR BOO3958.) Despite receiving nUDlCfOUS letters pointing out that the Second PEIR failed to comply with many of CEQAts II'l&ndatory requirements, the final Second PEIR was certified by CHSRA on July 9, 2008. (AR AOOOOO2.) III. ABGUMENT A. THE SECOND PElR IS lI!APEOUATI, AS ITFAJLS TO COWLX WITH ClQA'S MANDATORY RlOYIREMENTS Ji'OR EIRS •. 1. '"&ram Elas MUlt C.ver 'he Sail!! Geller.1 Co.,,,, •• Despite w.bat CRSRA would have the Court believe, CEQA '. c •• teat requiremeDts for progrllm ElBa are DO dlffereDt diu CEQA'. eODteDt requtrements for pIVIJed EIRs. (See 14 Cal. Code Regs., §f 1 S 12() -1 S 132; AI Larson Boat Shop. Inc. v. Bd. of Commissioners of the City of Long Beach (1993) 18 CaI.App.4th 729, 741 ["All BIRs muSlcover . the same general content.,,].)3 A program EIR is simply a $pOCiaJ type ofBIR, "which may be prepared on a series of actions that can be characterized as one large project. n (14 Cal. Code Regs., § 15168, subd,(a).) Program .ElRs allow government agencies -such 88 the CHSRA -to "consider broad paUcy alternatives and program wide mitisation measures .. ,n (14 Cal .. Code Regs., § IS169, subd.(b)(4).} The purpose of the optional plV&f8II1 EIR process is to simplify later environmental review, (See Pub. ResoUJCos Code, § 21093, subd.(a); AI Larson Boot Shop. Inc. v. Bd. of Commissioners of the City of Long Bedch, supra. 18 Cal.App.4th at 741.) 3 While the courts have not detennined whether the Ouidelhiea are ni!gulatory mandates or only aids in interpretiDB CEQA, " .•. courts should afford great weight to the Guidelines except when a provision is olearly unauthorized or enoneous under CBQA." (Laurel Heiglltslmprovemetll Assn. v. Regents of the University ofCalifomkl (1988) 47 CaI.3d 376, 391, fit. 2; sec also nneyard ArflQ Citizens for Responsible G1'OW11t. Inc. v. City of Rancho Cordova. supra, 40 Cal.4th at 428t fn. 5.) COPAW7SOn7&5I".2 -4- AMICUS CURIAB BRJB.P OF me CITY Of PALO ALTO 1 2. HAD Inadequate 'rolEam ElK Is CertU1edt Its IDgdeqyasl!s .' 2 Wig lar". All Future Tiers Of EgyJroPDlFata. RevlllL 3 CEQA contemplates a If tiered" environmental r~view process, whereby agencies 4 can ~opt program EIRs focusia,s on the ''big picture" and can then use streamlined CEQA S review for future projects that are consistent with the already reviewed biS picture plans. (Koster 6 v. County of San Joaquin (996) 41 Cal.App.4th 29, 36.} Later prepared EIRs fer .p.cllle 7 preject. are exeused from repeating the analysis of the eDvitoamea.lllsDes aDalyzed. .. tb. S previous prOiram EIR. (Pub. Resources Code, § 21094, subd. <a); 14 Cal. Code Regs., § 9 15384.} By using CEQA's tiered environmental review process, CHSRA can limit fUture, site· IO specific environmental review by excluding cm:tain issues ftom analysis in later CEQA 11 documents. 12 The importance of a proper CBQA tiering process in this case is paramount. 13 Because future site-specific BIRs wi)) necessarily be more limited in focus than the Second PEIR, 14 and will rely upon the Second PEIR for analysis of certain issues, it is vital that the Second PEIR 1 S . be legally adequate and comply with all of CEQA '8 mandatory requirements. (Se6, e.g., Koster v. 16 County of San Joaquin (1996) 47 Cal.App.4th29, 41-42.) IfCHSRA is to adequately analyze 17 the site-specific environmental consequences of the Project in the future, it must remedy the 18 deficiencies and inadequacies of the Second. PElR, so thosc problems are not allowed to infect 19 future CEQA documents. 20' B. THE pCON» PEIR's Paon;cr DESCRIPTION IS 21 INAPEOVATE. , 22 "An &(leurate, stable, and finite project description is the sine qua non of an 23 infonnative and legally sufficient BIR.. t. (County olInyo \I, City of Los Angelea (1977) 71 24 Cal.App.3d 18S. 193.) Here, CHSRA (eferred to the Project conrrid.ered in the Second PBIR 25 differently in different parts of the Second PBJR. In fact, CHSRA also referred to th~ Project 26 differently in many of the documents prepared in comection with the Second PBIR. 27 Respondent's counsel also refers to the Project differently throughout its brief. As a result, the 28 Second PEIR's project description is unstable and inadequate. AMICUS CURIAE 8R1BF OF THE CITY OF PALO ALTO 1 Pursuant to Resolution No. OS-<> I of CHSRA, the Second PEIR was supposed to 2 . analyze: C' ••• 8 preferred alignment within the broad conidor between and including the Altamont 3 4 S 6 7 8 9 10 11 12 13 Pass and the Pacheco Pass for the HST SyStem segment connecting the San Francisco Bay Area .' to the Central Valley ... H (AR GOOO209.) The document that resulted -the Second PBIR ... does not focus exclusively on this iuue. Instead, the Second PBIR also identifies a specific alignment . for the HST on the Peninsula., and selects specific station locations on the Peninsula. The first time a reader of the Second PBIR becomes aware of the true scope of the project evaluated in the Second PBIR is upon review of the "Alternatives·' chaptor. In that section, the Peninsula alignment is revealed for the first time. (See AR B003898·AR B0039'77.) The repeated inconsistencies in describing the project evaluated in the Second PEIR. confused the pubJic and local agencies. thus vitiating the usefulness of CEQA' s environmental review process. (CountyofJnyov. CityoluaAngelestsup1'a, 71 Cal.App.3dat 197-198.) "- The seneral public was further coDfUaed by the fact that Dot ODe of the seopibl 14 . SessiObS was beld 18 aDy oftbe Pealasula dUes between San Jose ad Sao PraDcIKo. (AR 1S 8000002.) Additional misunderstanding resulted when Dot Obe of the plabDe hearlDII OD the l(i dnft SKond PEIB was beld OD tbe PeDta.ala. (AR BOOIOS3.) Santa Clara County and all .7 . Pea •• ul. cities were eODspicaously abseat from the Outr,.eh Before Drift Progn .. J 8 EIRIEIS process. CHSRA also did not consult· with local agencies located on the Peninsula 19 during the Icoping process. (AR Booms.) 20 2] 22 13 24 2S 26 27 28 c. THE PCQNO,PEIIDON NOT AQEOUATILXWEN1'llf. ANA!.'DI. OR MITIGATE THE PENINSULA-RELATED ENVIRONMENTAL IMPACTS OF THE HSI. Respondent flatly contends that it need not fully identify, analyze, or mitigate significant environmental impacts that the HST will cause on the Peninsula because the Second • Section 15083 of the CEQA Guidelines suggests that early consultation with local agencies is an effective way to resolve concerns of affected aaencies. (14 Cal. Code Regs •• § 15013, aubel. (b).) Further, section 15086 of thoCEQA Ouidelina requires a lead agency to consult with and request comments on a draft EDt tiom all localaJeBcles which have jurisdiction bylaw with respect to the project, or which exercise authority over resources which may be affected by the project, and any city within which the project is located. (14 Cal. Code Rep., § 15086.; see also Pub. Resourees Code, §f 21083.9, 21092.4/requiring consultation with toca1 agenoies in cormectioD wi1h taU projects and projects 0 reponal or statewide signi(acance).) COPA't4,"'I\1I6I49.2 . -6- AMICUS CURIAB BRIU OF THE CITY OF PALO ALTO ' 1 PEIR is a progr'ant EIR, Respondent indicates it was "nol ready to tackle [] site-specific issues," 2 (RB,36: 19) despite that it was ready to approve (and actually did approve) a specific well- 3 defined PeninsulaaIignment, jne1uding specific rail station locations. (See AR AOOOOOl- 4 AOOOOO4.) Contrary to RC8pondent~s unsupported contention that applicable case law permits S CHSRA to defer proper consideration of environmental impacts if the "level of detail" required to 6 be considered is "overwhelming/' (RB~ 36: 19-20) where speeUle sites bave bee. selected for 7 proposed develOpment. aud wlatre ially ... of eavlroDmeDtal.lmp8etll. bot .. practicable 8 .ad feasible, CEQA wlthout eseeptlcm requires sucla analysts to he cond"cud. (In re Bay- 9 Delta Programmatic, Environmental Impact Rtlpon Coordinattld Proceedings (2008) 43 Cat4th 10 1 t 43, It 73; see also Stanislaus Natural Htlr/lagtl Project v. COURty 0ISton/slous (1996) 48 1 t Cal.App.4tb 182, 199.) Because CHSRA actually selected a Peninsula alignment, and station 12 locations, it was required to fully identify. analyze. and mitigate all Peninsula-related ] 3 environmental impacts from that specific alignment and those specific stationa. 14 Respondents specifically contend that a properly prepared program EIR. contains 15 ''more limited analysis and mitigation·' than a project BIR. (RB,34: IS.) Such limited analysis is 1 ~ not authorized by CEQA or by the CBQA Guidelines. 'Tierml-does Dot .:leus. the lead aleney 17 from adequately aa81yllal reponable foreseeable slpIDeant envJroDme.t.1 effects of the 18 proJect ... •• (14 Cal. Code Regs., § 15152. subd. (b).) ··An BIR m1.lSt include detail SUfficient to 19 enable those who did not participate in its preparation to understand and to consider meaningfully 20 --the issues raised by the proposed project." (Laurel Heigbtslmprovement Ass 'n v. Regents of the 21 University of California, supra, 47 Cal.3d at 405.) 22 The Second PEm ~ identify the specific location of the proposed HST alons i3 the Peninsula, and actually identifies station locatiOD8. These are nol simply broad or seneral 24 ffpolicY·decisions, but actual pJans for a specific rail system. The decision made by CHSRA on 25 July 9,2008 was a material step in selectins the Project', Peninsula route and station locations. 26 (AR AOOOOOl.AOOO004.) Because specific sites have been selected for proposed development, 27 and because analysis oftbe environmental impacts associated with the identified sites and 28 . alignment is practicable at this time, CBQA requires Buch analysis to be conducted. (;OPA\l7101\7Ge •• u ·7· AMICUS CUlUA6 BIUBP OF TH8 CITY OF PALO ALTO • 1 1. The PEgl. Will Res,lt la SlgplfieJpt Laad Use «;2lDPatibJljty 2 (mpa. Not PrGperly IcJgtlfled, AIlaJrad, or MIJ'cattd Ip tlJe Semd rlIR. 3 Two Peninsula cities submitted lengthy comments regarding the sipifieant land • 4 use compatibility impacts that would result from the HST. (See. e.g., AR B006S30, BOO6S17.) S Notwithstanding these identified land use compatibility impacts, the Second PBIR concluded 6 there would be KJliJh"land use compatibility because the alignment was "[c]ompatible with 7 existina Caltrain corridor!' (AR B004184-B00418S.) Apparently, CHSRA determined that the 8 only issue with respect to land use compatibiHty is whether or not a train already exist. in the ·9 area. CBQAdemands much more. l() Section 15125(11) oithe CEQA Ouidelinesmandates that: "An Em. shan discuss 11 any inconsistencies between the proposed project and applicable general plans and regional 12 plans." (14 Cal. Code Regs., § 15125, subd.. (d).) Thepu!pose of this discussion is to enable a 13 lead agency to find wa)lS to modify a project to reduce inconsistencies. 14 Remarkably, although the Second PBIR says it includes a discussion of potential 15 inconsistencies with land use plans, no such discussion is actually CODtained in the Second PBIR. 16 (AR 8004164.) Review of the Second PElRreveals that CHSRA only considered the existing 17 land use designations of property within the Peninsula alignmeal and did not consider other 18 glaring incompatibility and inconsistency issues. (AR B004165.) In fact, the Second PEIR' s 19 woefully inadequate land use compatibility discussion for the entire Peninsula alignment is ZO. . Qantained in the followjpg thrc:e (3) selltences: .21 22 23 24 25 The San l7ranciaco to Dumbarton alignment altomative would be hishly compGtlble with existing land US" because it would be conSIrUcteci primarily within the malin, Caltrain conidor. Grade separatiODS along tho alisnm_ altomative would entail the conversion of residential and nonresidential property ... The land use compatibility for the Dumbadon to San lose aJipment alternative would be the same as the San Francisco to Dumbarton alipment alternative. 26 (AR B00419S. emph. added.) This quotation makes clear that CHSRA failed to sufficiently 27 evalUate the impact of applicable land use plans. CBQA does not mefely require an evaluation of 28 whether a project is consistent with existing land uses -CEQA also reCluires aD evaluatioD .f CO'A .... 71107\'I1I6 ... 9.2 -8- AMICIJS CURIAE 8R1BF OF 'mE CITY OF PALO ALTO 1 . whether a project Is consisteDt wltb a,pUcable "ad useplR",. (14 Cal Code Regs., § 15125, 2 subd.(d).} 3 For the Peninsula station locations, the Second PEIR's analysis is similarly 4 deficient. (ARB004195.) Again, the Second PBIR answers the question whether the HST is S consistent with existing land uses at the separate station sites, but faUs entirely to address the 6 additional question CBQA requires to be answered -whether the project is cOnBistent with 7 applicable land use plans. (14.) 8 CHSRA simply ignores that CBQA requires it to "use its best efforts to find out 9 and disclose an that it reasonably can" in its EIR. (14 Cal. Code Rep., § 15144.) Ataminimum, J 0 CHSRA was required to identify the general and regional plans applicable to the Project on the 11 Peninsula,' and to discuss m inconsistencies between those plana and the Project. CHSRA', 12 failure to include such a discussion in the Second PBIR renders the document useless for 13 infonnational purposes jn this regard, and inadequate under CBQA. 14 Perhaps even more alannjng for the public and Poninsula4 area officials, is the 1 S manner in which tho Second PBIR unlawfully proposes to limit analysis in future, ~ond-ticr, 16 project-specific environmental documents. As set forth on page 3.7 .. 42 of the Second PBIR: 17 "Pro;ect·level review wOIlJd consider consistency with existing and planned land usc, 18 neighborhood access needs, and multi-modal connectivity issues." (ARB004207.) In essenoe, 19 CHSRA reads section 1512S(d) right out oithe CEQA Guidelines. and proposes to limit future 20· -. discussion to onl}rthtee separate land use-relatc.;Hssues, to the -exclusion of all others. 21 22 23 24 25 26 27 28 2. TIle ProJest Wig Besult 1M Slren._. Noise 'Dapaets Not Properly IdepdftecL Analvzej(. or Mltlut.d In The!,tpoPd PEIR. The Second PEIR provides that the proposed Peninsula alignment will "pass throuSh densely populated areas where there is wgh potential for noise impacts!' (AR 8004 t 17.) The Second PBIR then leaps to the unsuPPorted conclusion that Peninsula noise impacts wiD be either "low-level", or "medium-level," (AR B004118.) S Not one of over 20 .,pUcabIe General ud/or "'08.1 plaDs Is ',"iDeally referenced In tbe Land Use and Planning, CommuDlties aad Nelghborboods, Property, aDd Environmental Justice section of the SeeoDd PEIR. (Aft B004164 -8004211.) COf>AW11O'7\766U9.2 .9. AMICUS CUIUAIi BlUEf OPTHE CITY OF PALO ALTO 1 2 3 .4 S 6 7 8 9 10 11 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 CEQA is not concemed with whe&her a particular environmental impact will bave an "impact rating,,6 ofHl~w". "medium" or "high." (AR B004101.) CEQA is concerned with whether a particular impact is significant. (See 14 Cal. Code Regs., § 15382 [defining "significant"].) Aa ElK Is required to provide a complete dlscussloD ad aaaly,ls of aay IdeDdfted slgnlOeaat eavironmental Impact, regardlell or wlledaer It Is ebaraeterlzed as a low-level, medium-Ie;vel or Idab-Ievellmpaet (See Berlceley Keep Jets Over the Bay Comm. v. Board of Port Comm Irs (2001) 91 Cal.App.4th t 344, 1370.) One of the most extreme impacts of the Project is its noise impact. (AR 8006530.) The Projcct proposes electrified steel-wheel-on-steel-raiJ train service. running through densely populated residential conununities, (AR BOO3869.) In some cases, the trains will run within yards of the bedrooms ot single-family residences, (AR 8006531.) As a direct e"vironmental" ' . impact ortbe Project, CEQA mandates that the noise impact be fully and properly evaluated and mitigated. (14 Cal. Code Regs .• § 15064. subd. (d)(l).) Section t 5143 of the CEQA Guidelines provides that Usignificant effects should be discussed with emphasis in proportion to their severity and probability of occurrence," (14 Cal. Code Regs. § 15143.) Despite the CHSRA-described "htgb.poteDtJaI for aolse Impacts," on the Peninsula (AR B004117) the Second PEIR failed to properly identify. analyze, or mitigate the Project's noise impacts. The Second PEIR identifies four noise-related thresholds of significance. (AR 800410S.) However. the Second PElR makes no attemptto quantify whether the project will exceed these identified thresholds of significance on the Peninsula. Instead, the Second PEIR merely estimates noise levels on a region-wide (the entire San Francisco Bay area) basis. and makes no attempt to quantify noise levels anticipated on the Peninsula alignment or at the identified station locations. (AR 8004116.) Like the deficient land use compatibility analysis, the noise impact analysis for the entire Peninsula alignment and station locations is contained in three short cooclusory sentences. (See AR B004118.) Again, CHSRA simply ignores that CEQA requires CHSRA to "use its best 6 "Impact ratin~' has no meaning under CBQA. COl'A\47801\766149.2 .11). AMICUS CUJUAE BRffif OF THE CITY OJ! PALO ALTO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 IS 16 17 18 ,. 19 ·_····20-. 21 22 23 24 25 26 27 28 efforts to find out and disclose all that it reasonably can" in its BIR. {14 Cal. Code Regs .• § 15144.} At a minimum. CHSRA should have quantified specific noise impacts to Peninsula sensitive receptors. CHSRA's failure to include such infomtation in the Second PBIR renders the . document useless for infonnational purposes, ... d inadequate under CBQA. 3. Th, Protect wln.wIt III SlgUkgl.Vlbratloa Impaoas Not Properly IdeDdf1ecL Aaalyz", or Mltlnted I. the Second PEI& CHSRA used the exact same legally deficient approach to vibration impacts as it did for noise impacts. Again, CHSRA classifies potential vibration impacts according to "levels'" As explained above, CEQA is not concemed with whether a particular environmental impact will have an "impact rating" ofulow", "medium" or "high'" (AR B004101.) CEQA is concerned with whether a particular impact is 8ipifica"t. (Sec Berkeley Keep Jets Over the Bay Comm. V. Board 0/ Pori Comm ',s, supra, 91 Cal.App.4th at 1370.) Because the EIR identifies potential vibration impacts as "significant" it is required to provide a complete discussion and anal~i8 of the potential vibration impacts. Amicus PALO ALTO is unable to locate any discussion or analyais of the potential vibration impacts of the HST to the Peninsula cities in the Second PEIR beyond the conclusory statement , that there is f'tbe potential for medium to high vibration impacts because of the proximity of residential structures to the aJipmcnt;' and a diagrammatic reference to the same conelusion in Figure 3.4·7 oCthe EIR. (AR B004118, 8004132.) The Second PEIR. contains absolutely no reference to an appendix or other document that would provide supporting data for its eonclusory vibration detenninations. At a minimum, CHSRA should have attempted to quantifY specific vibration impacts to the Peninsula. CHSRA's failure to include such infonnation in the Second PElR renders the doc\UJlent useless for infonnational purposes, and inadequate under CEQA. 4. The. Protect Will ResUlt II Sipille.o! Aest1tedctyl.yal Besoyrses Impacts Not Properly IcIeDtffted. Alllm!d... or Mitigated 18 the Sec;OIId 'EIRe As a result of the Second PElR's deficient noise analysis, the Second PEIR proposes only a single measure to mitigate the CHSRA-described "htl. potential for Roise impacts", on the Peninsula. (AR 8004117,8004129.) Specifically, the Second PEIR. provides COP"W'180'M668f'" AMICUS CURIAe BRIEF OF THB CITY Of PALO ALTO 1 that U[p ]otential noise impacts can be reduced substantial1y by the instaUation of sound bamer 2' walls constructed to shield receivers ftom Irain noise,'· (AR B004129.) Reference to Table 3.4-7 3 in the Second PBIR. indicates that CHSRA expects to install over 45 miles oenoise baniers along 4 the PeninsUla. (AR B004130.) The Second PBIR fails to comply with CEQA because it includes S absolutely no identification, analysis, ormiti.ation of the poteatially significant impacts or the 6 installation of noise barriers aIon& the Peninsula. 7 As set forth in seotion 1 S 126.4(8)(1 )(D) of the CEQA Guidelines; &6 If a mitigation 8 measure would cause one or more sipiflC88t effects in addition to those that would be caused by 9 the project as proposed, tile effects of the mitigation measure shan be ducused but in less 10 detail than the sipificant effects of the project as proposed." (14 Cal. Code Rep., § 1 S 126.4, 11 subd. (a)(I)(D) [jntemal citations omitted, emph added.]) 12 At an absolute minimum, the potentially significant visual and aesthetic impacts 13 should have been identified in the Second PSIR. Because the Second PBIR fails to identify, 14 analyze. or mitipte th8 significant enviromnental effects oilbo noise mitigation measure, the 1 S document is useless for infonnationa1 purposes, and inadequate under CBQA. 16 IV. {(ONCLUSION 17 For the reasons set forth a~ve, the Second PEIR fails to comply with CEQA's L8 most basic requirement -full disclosure. The deeply fla.wed Second·PEIR fails to inform the 19 public and the decisionmakers of all of the significant environmental impacts of the Project. and 2() is therefore ioadequ~e. Amicus curiae PALO ALTO supports Petitioners' JeqQesl th.8t the Coun 21 grant the petition and i.ssue a writ of mandate ordering CHSRA to rescind its "rtitica1ion of the 22 Second PEIR. and itJ approval ofibe Project 23 Dated: May 1. 2009 24 25 26 27 28 00''''''710''766849.2 Respectfully Submitted, Mll..LER STARR REGALIA BY:~~ STJNA DANmL LA Wi iN Attorneys for Amicus Curiae . CITY OF PALO ALTO -12· AMICUS CUJUAB BRlJiF OF THe CITY OF PAW ALTO l :2 3 4 5 6 7 8 9 10 11 12 13 14 lS 16 17 18 19 20 21 22 23 24 2S 26 27- 28 PROQFOF Sf-mE (Town of Atherton, et at v. California 19h-Speed Rail AUlhorily. ef al., -Sacramento Superior ~urt. Case No. 34-2008-80000022) I. Karen Wigylu$, declare: I am a resident of the State of California and over the age of eighteen years, and not a party to the within action; my business address is 1331 N. California Blvd., Fifth Floor, Post Office Box 8117. Walnut Creek, CA 94596. On May 1, 2009, 1 served the within documents: AMICUS CURIAE BRIEF OF THE CITY OF PALO ALTO IN SUPPORT OF PETITIONERS' VERIFIED PETITION FOR WRIT 01' MANDATE AND COMPLAINT FOR INJUNCDVE AND DECLARATORY RELIEF o o o COI'A\47B07\76736l.1 by transmitting via facsimile the document(s) listed above to the fax number(s) set forth below on this date before 5:00 p.m. by placing the document(s) listed above in a sealed envelope with posta&e thereon fully prepaid, in the United States mail at Walnut Creek, California addressed as set forth below. -- by pJacing the document(s) listed above in a sealed Federal Express envelope and affixing a pre·paid air bill. and causini the envelope to be delivered to a Federal Express agent for next business day delivery. by personally delivering the documcnt(s) listed above to the person(s) at the addressees) set forth below. Stuart M. Flashman Law Offices of Stuart M. Flashman 5626 Ocean View Drive Oakland, CA 94618·1533 Tel: S 1 0.6S2.S373 Fax: 5io.6S2.S373 e·maiI: stuflash@aoI.com Attorney for Plaintiffs and Petitioners TOWN OF ATHERTON. PLANNING AND CONSBRVATION LEAGUE. CITY OF MENLO PARK., TRANSPOR.TATION SOLUTIONS DEFENSE AND EDUCATION FUND, CALIFORNIA RAIL FOUNDATION and BA YRAlL ALLIANCE Edmund G. Brown. Jr. Attomcy Gcnora1 of C.Ufomia Daniel L. SiegeJ SupervJIiDs Deputy Attorney General Christine Sproul Georsc Spanos Danao 1. Aitchison Deputy Attomoys General 1300 I Street, Suite 125 P. O. Box 944255 Sacramento, CA 94244-2550 Tel: 916.322.5522 Fax: 916.327.2319 e-mail: christine.sprouJ@doj.ca.gov; danae.aitchison@doj.ca.gov Attorney$ for Defendant and Respondent CALIFORNIA HIGH· SPBBD RAIL AUTHORITY 1 I am readily familiar with the .finn's practice of collection and processing' . 2 correspondence for mailing. Under that practice it would be deposited with the U.S. Postal Service on that same day with postage thereon fuJly ·prepaid in the ordinary courso of business. I am aware that on motion of the party served, service is presumed invalid if P.C?'taI cancellation 3 . date or postage meter date is more than one day ~er date of deposit for mailing in affi~avit. 4 S 6 7 8 9 10 11 12 13 14 IS 16 17 18 )9 20 21 22 23 24 2S 26 27 28 I deelare under .penalty of perjury under the Jaws of the State of California that the foregoing is true and comet. . Executed on May I, 2009, at Walnut Creek, California. c COPA\47l107I767)63 I ·2· ATTACHMENTD February 11,2010 Senator Joseph Simitian State Capitol Room 2080 Sacramento, CA 95814 Qty qf P~o~to Office of the Mayor and City Council RE: 2009 High Speed Rail Business Plan Dear Senator Simitian: The Palo Alto City Council Subcommittee for High Speed Rail has reviewed the 2009 Business Plan prepared by the High Speed Rail Authority (HSRA). The Subcommittee, in conjunction with the Peninsula Cities Consortium, has identified a number of deficiencies and flaws in the Business Plan that need to be addressed and rectified before the project proceeds f:Urther. Those issues relate to the inadequate and fundamentally flawed ridership study, a questionable financing strategy that relies upon "hoped for" federal funding. and omits key cost elements in the San Francisco to San Jose segment, and a grossly deficient risk management plan. These issues and concerns were presented by Palo Alto Mayor Burt at the Joint Hearing of the Senate Budget Subcommittee #2 on Resources, Environmental Protection and Energy and Transportation and the Senate Transportation and Housing Committee on January 21 in Palo Alto. As discussed in detail below, the Subcommittee, on behalf of the Palo Alto City Council is requesting that the Legislature take the following actions related to HSR financing, governance, and process: Financing: • Require HSRA to correct all of the deficiencies in the Business Plan indentified in the Legislative Analyst's Report. • Require the HSRA to prepare a sound Investment Grade Ridership Study before additional funding is released for project engineering • Require that the Business Plan be rewritten and approved before any further funding is released for the project engineering. • Address the deficiencies in the construction budget for the San Francisco to San Jose segment where key cost elements have been omitted and no funding is included to address Context Sensitive Solutions (CSS). Governance: Printed with soy-based Inks on 100% recycled paper proc_d without chlorine P.O. Box 10250 Palo Alto, CA 94303 650.329.2477 650.328.3631 fax • Mandate that a new HSRA Governing Board of top professionals with mega- project expertise and full accountability be appointed to manage the High Speed Rail project. • Clarify the role of the Peer Review Committee and require quarterly"reports ofthe Independent Peer Review to the Legislature. Process/Timeline: • Mandate that HSRA adopt CSS statewide, • Work with the Governor to request the federal government to extend the stimulus funding deadlines to allow for an adequate and thorough CEQAlNEP A process and successful project planning. Palo Alto recognizes that the California HST project is crucial for the future of mass transit in California and will have a long-lasting and far-reaching impact on the State and City of Palo Alto. It is the most significant project in the history of the Peninsula and must be designed to minimize impacts and roouce community divisions or barriers. Colfaboration between the HSRA and local communities is the key to success for the project Thank: you for considering these requests and please let us know when you will be able to incorporate these items into your oversight of the HSR project. If you or others have questions, please feel free to contact me or Deputy City Manager Steve Emslie at 329- 2354 or steve.emslie@cityofpaloalto.org. Sincerely, OJf~-I PATBURT 1 Mayor Enclosure cc: Medhi Morshed, HSRA Robert Doty, Peninsula Rail Project City Council ATTACHMENT E THE 2010-11 BUDGET CONTENTS Executive Summary ................................................................................ 3 Background ........................................................................................... 5 Department of Transportation ........................................................... 10 Capital Outlay Support Should Be Based on Workload ............................... 10 Payments for Public-Private Partnerships Problematic ............................... 21 Proposition 1 B Implementation ........................................................... 23 High-Speed Rail Authority ................................................................... 25 Project Development Work Increasing .................................................. 25 Project to Receive Federal Stimulus Funds .............................................. 26 Revised Business Plan an Improvement, but Still Lacks Details .................. 27 Current-Year Progress Difficult to Determine ........................................... 28 2010-11 Budget Proposals .................................................................... 29 TR-2 LEGISLATIVE ANALYST'S OFFICE THE 2010-11 BUDGET EXECUTIVE SUMMARY The Governor's budget proposes $18 billion in expenditures (mostly from special funds) for transportation programs in 2010-11. This includes $14 billion for the California Department of Transportation (Caltrans), $2 billion for the California Highway Patrol, $958 million for the High- Speed Rail Authority (HSRAt and $954 million for the Department of Motor Vehicles. Caltrans Capital Outlay Support (COS) Program Is Overstaffed. The budget requests about $2 billion in 2010-11 for COS-staff resources that perform activities to develop and manage the department's capital construction program. We reviewed Cal trans' COS budget for recent years and found that the program's budget lacks sufficient workload justification. In order to gauge the reasonableness of the department's COS requests for staffing and funding, we evalu- ated the program using several different methods. The cumulative evidence from our review shows that the program is over-staffed and lacks strong management. We think major actions are needed to' correct the issues we identify. Specifically, we rec- ommend that the Legislature: »-Require Caltrans to provide additional information to justify its annual COS budget request. »-Have Caltrans report on the steps it is taking to control its COS costs. »-Request an audit of the program's time charging practices. »-Reduce the program's staffing by about 1,500 (and $200 million a year) to align with actual workload if Caltrans does not provide workload justification for its COS budget request. Payments for Public-Private Partnerships Problematic. The Governor requests that $3.45 billion in future federal transportation funds be appropriated to Caltrans to pay private- sector firms for costs related to an unspecified number of public-private partnership (P3) agree- ments. Our review found that the Governor's proposal has several significant problems. Specifi- cally, we found the following: »-The proposal does not appear to be permissible under current law, and the types of agreements contemplated in the Governor's proposal are not eligible to be funded en- tirely with federal funds. Thus, the proposal is not workable. »-Details are not available regarding how the majority of the funds (about $2.5 billion) would be used. However, in the case of the $1 billion project that has been identified, using a P3 approach may not reduce state costs as Caltrans claims. LEGISLATIVE ANALYST'S OFFICE TR-3 TR-4 THE 2010-11 BUDGET ~ The budget requests a "blank check" authority for the Department of Finance to aug- ment the proposed appropriation without legislative oversight or approval. We recommend the Legislature reject the request. We further recommend that in revis- ing its budget requests this spring, the administration ensure that any request for P3 funding is workable and meets certain criteria. Proposition 1 B The budget requests the appropriation of $4.7 billion in Proposition 'I B bond funds to meet current program needs. Our review indicates, however, that the level of funding requested is higher than the amount needed based on project schedules. We recommend that the Legisla- ture direct Caltrans to report on the projects that are planned for allocation through June 2011, and the associated level of bond funding that would be needed. The budget should be adjusted accordingly. High-Speed Rail Authority Proposition lA, passed by voters in November 2008, authorizes $9 billion for HSRA to develop and construct a high-speed train system in California. Recently, the authority received a $2.25 billion award of federal economic stimulus funds to complement the $9 billion in bond funds available from the state. The massive increase in available funding has increased the de- velopment work performed by the authority and its contractors. We evaluated HSRA's ability to measure the project's progress, as well as the authority's budget request, and recommend new reporting requirements to increase accountability. LEGISLATIVE ANALYST'S OFFICE THE 2010-11 BUDGET Federal Stimulus Funds Advanced Several Proiects Chapter 21, Statutes of 2009 (ABX3 20, Bass), allowed Caltrans to use federal stimulus funds provided under the ARRA to provide $310 mil- lion in cash loans to Proposition 1 B projects in 2008-09 and 2009-10. These loans allowed four state highway projects to proceed to construction that otherwise would have been delayed due to the state's difficulties selling bonds. Similarly, sev- eral local agencies used a portion of their ARRA funds to advance Proposition 'I B projects Analyst's Recommendation. In the event that California receives more federal stimulus funds for transportation, we recommend the Legislature enact legislation to authorize additional cash loans to Proposition 1 B projects, In total, there are about $600 million in Proposition lB projects ready to start construction, but that are delayed due to insufficient bond funding. Of these proj- ects, Caltrans estimates that $428 million are fed- erally eligible and could therefore be advanced if additional federal stimulus funds are provided. To do so, however, would require the approval of new state legislation, since the existing author- ity relates only to federal stimulus funds already received under ARRA. HIGH-SPEED RAil AUTHORITY The High-Speed Rail Authority (HSRA) was statutorily established to develop a high-speed rail system in California that links the state's major population centers, including Sacramento, the San Francisco Bay Area, the Central Valley, Los Angeles, the Inland Empire, Orange County, and San Diego. The latest cost estimate for completion of the first phase of the project, from San Francisco to Los Angeles and Anaheim via the Central Valley, is roughly $43 billion. (This cost estimate reflects the escalated cost of each portion of the project at the time it is to be built.) In November 2008, voters approved Proposi- tion lA, which allows the state to sell $9 billion in general obligation bonds to partially fund the development and construction of the high-speed rail system. The remaining funding for the sys- tem's construction and operation is anticipated to come from federal and local governments as well as the private sector, LEGISLATIVE ANALYST'S OFFICE PRO.IECT DEVELOPMENT WORK INCREASING Over the past few years, the development work for the high-speed rail project has been in- creasing. As shown in Figure 11 (seenext page), the authority'S support expenditures have grown very quickly since 2006-07. This figure includes the authority'S administration costs as well as the costs of consulting contracts to plan and develop the system. These contracts include: >-Program management, which includes oversight of all engineering work. >-Project-level engineering and environ- mental studies conducted along the cor- ridors by various contractors. >-Financial consulting and public-private partnership development. >-Technical consulting such as ridership forecasts and visual simulations. TR-2S TR-26 THE 2010-11 BUDGET Through the current year, nearly all fund- ing for project development has come from the state. However, the authority anticipates using some federal stimulus funding available through the ARRA to supplement state funds beginning in 2010-11. Additionally, the current-year budget authorizes the state to replace state bond fund- ing with federal funding if allowed by federal law. Thus, it is possible some of the federal stimulus funding would be used in the clJrrent year as well. PROJECT TO RECEIVE FEDERAL S'rlMULUS FUNDS The ARRA provides $8 billion nationwide to fund rail projects, including high-speed rail development programs. The authority applied for more than $4.7 billion of the available fund- ing to be used in three specific corridors as well as for systemwide planning and environmental clearance. Though not Figure 11 the state's current intercity rail program.) The funding will be available for program develop- ment and environmental clearance for the entire first phase of the project, as well as design-build contracts in four of the project's ten corridors, including: >-Los Angeles to Anaheim. >-Merced to Fresno to Bakersfield. >-San Francisco to San Jose. The other corridors were not included in the grant application because they are not far enough along in the development process to meet the ARRA deadlines. Funding Availability and Expenditure Time- line. It is unknown at this time when the ARRA funding will be available or how it will be di- vided among the various eligible segments of the required under ARRA, the state's application forfunds pledged to match any ARRA funds awarded to the high- speed rail project with an equal amount of state monies. High-Speed Rail Planning Expenditures Growing Rapidly (In Millions) Project Awarded $2.25 Billion. On Janu- ary 28,2010, the federal government awarded California $2.25 billion toward the development . of the high-speed rail system. (California also received $99 million to improve and upgrade LEGISLATIVE ANALYST'S OFFICE THE2010 11 BUDGET project. According to interim guidance released by the Federal Railroad Administration (FRA) in June 2009, the money must be obligated by September 2011 and fully expended by Septem- ber 2017. According to FRA's interim guidance, these funds will be considered obligated when a grant or cooperative agreement between the federal agency and the state is complete. The grant agreement will describe project milestones and what steps must be taken for the state to access these federal funds. However, because it is unknown at this time when this agreement will be reached, there is no way of knowing when the federal funds will become available for expenditure. Bond Funds Will Match Federal Dollars. At the time of this analysis, it is also unclear how the authority plans to structure the pledge to match federal funds with state bond funds. For example, one way to provide this match would be to apply one state dollar for every federal dol- lar spent, whether it is for the purchase of land or some other service. This would mean that federal dollars would provide one-half of the funding for a particular contract or section of right of way, and the state bond money would fund the other half of the same expenditure. Alternatively, the authority could simply apply an equivalent amount of bond dollars to a particular segment of the system, regardless of what the particular expenditure may be. In this case, state funding may pay for a consulting contract to complete the environmental work on a section of the system where an equivalent amount of federal funding has purchased the right of way. How the authority plans to use state bond funds to match ARRA dollars would determine when the state would have to issue Proposition 1 A bonds as well as the amount to issue in the budget year. LEGISLATIVE ANALYST'S OFFICE Analyst's Recommendation. Because of the deadlines attached to the ARRA award, it is imperative that HSRA act expeditiously to meet federal requirements. In addition, the state should consider how to most effectively spend the federal dollars while reducing the debt ser- vice burden on the state in the near term. There- fore, we recommend that the authority report at budget hearings on its plans to meet the ARRA deadlines. Specifically, the HSRA should discuss the following: »0-What restrictions are placed on the fed- eral funds? »0-How much of the ARRA funds are avail- able for each segment or task? »0-How will the authority structure the state's match of federal funds? »0-What steps must be taken in order to obligate the funds? »0-How will HSRA ensure that the project schedule meets the federal obligation deadline? REVISED BUSINESS PLAN AN IMPROVEMENT, BUT STILL LACKS DETAILS The 2009-10 Budget Act (as amended in July 2009) required the authority to submit to the Legislature a revised business plan with specific elements by December 15, 2009. The plan was submitted on time, and included at least some discussion of all the required elements. The new plan is much more informative than the previ- ous business plan, and contains, among its other components, descriptions of potential opera- tional plans and many system details, as well as a discussion of various funding possibilities avail- able for the project. TR-27 TR-28 THE 2010-11 BUDGET Nonetheless, our review of the plan con- cludes that the plan's discussion of particular elements is lacking some important details. Spe- cifically, the plan lacks discussion of risk manage- ment, including any detailed description of many key types of risk or mitigation processes. Also, there are few deliverables or milestones identi- fied in the plan against which progress can be measured. Due to the multiyear nature of a proj- ect of this size, without clearly defined deadlines and work to be accomplished, it will be difficult for the Legislature and the administration to track progress in any meaningful way. Analyst's Comments. Chapter 618, Statutes of 2009 (SB 783, Ashburn), requires the authority to prepare, publish, adopt, and submit to the Leg- islature an updated business plan addressing spe- cific elements no later than January 1, 2012, and every two years thereafter. We will be reviewing the submitted plan to ensure compliance with statutory requirements and identify any improve- ments that are needed in these documents. CURRENT-YEAR PROGRESS DIFFICULT TO DETERMINE Authority Submitted Program Work Plan Through 2072-73. The Legislature approved $139 million to fund continued preliminary plan- ning of the rail system during 2009-10, including project-level design and environmental review for all ten segments of the rail line, program management services, financial planning, and development of a new ridership model. In order to justify the current-year funding level, the au- thority submitted a Program Summary Report to the Legislature in July 2009, which described the authority'S recent and ongoing activities as well as the expected work to be completed each year through 2012-13. This multiyear summary is in- tended to outline the management plan to move the project through the environmental processes to construction and revenue service. However, our analysis indicates there are questions about how progress on the project is being tracked. We explain these concerns below. Actual Progress Does Not Appear to Follow Work Plan. So that the authority's staff can track the project's status against the work plan laid out in the Program Summary Report, the HSRA's program management consultant provides monthly status reports on a list of specific tasks that each have their own due date. However, our review shows that some of the tasks contained in recent status reports are inconsistent with those listed in the work plan. For instance, the November 2009 status report only provided an update on one-half of the 160 uncompleted tasks identified in the work plan, with the remain- ing tasks deleted or missing. When asked about these discrepancies, the authority indicated that some of the tasks might have been combined or considered unnecessary, but could not defini- tively explain these changes. Progress Report of Project-Level Work Plan Provides No Details. The monthly status reports submitted to the authority are problematic in an- other way: they provide only summary informa- tion on the progress of project-level work being accomplished by contractors. The work plan lays out the expected timelines for the particular tasks to be accomplished each year by each of these contractors. However, our review indicates that the monthly reports do not track each contrac- tor's status against the work plan. Instead, the reports only summarize the cumulative amount of time spent on the project by the contractors collectively. Without more detailed information, it is hard for the Legislature to determine what LEGISLATIVE ANALYST'S OFFICE THE 2010-11 BUDGET work is being accomplished by each contractor in the current year and what work remains to be done in subsequent years. Analyst's Recommendation. Multiyear mega projects such as the high-speed rail project are susceptible to significant unexpected challenges in their planning, development, and construc- tion as well as financing. For example, a 2004 report by the BSA regarding the replacement of the Oakland-San Francisco Bay Bridge, another mega project, found that a considerable financial crisis arose in part due to the project manage- ment's failure to disclose huge cost overruns as soon as it was aware of them. Because the state has committed a significant amount of funding for the high-speed rail project, it is important that the Legislature be provided from the outset with regular updates on the project's progress to avoid unexpected challenges in the project's develop- ment. Therefore, we recommend the Legislature adopt legislation to require the authority to submit an annual report that tracks the project's progress and identifies (1) the expected tasks and deliverables for the coming year, and (2) any potential challenges and issues the project encounters. This information would enable the Legislature to better assess the authority's budget request for the subsequent year. The report could be structured similar to those reqUired for the oversight of the Bay Bridge replacement project. Information should include, but not be limited to: ,... A baseline budget, by contract, for capi- tal and support costs. ,... Expenditures to date, by contract, for capital and support costs. ,... A comparison of the current or projected LEGISLATIVE ANALYST'S OFFICE schedule and the baseline schedule that was assumed. ,... A summary of milestones achieved dur- i ng the previous year. ,... Any issues identified, and actions taken to address those issues, in the previous year. This report should be submitted by Sep- tember 1 of each year. This date would give the authority time to compile details of the past fiscal year, clearly identify current-year deliverables, and provide an outline of the expected work plan for the coming budget year. 2010-11 BUDGET PROPOSALS The Governor's budget requests $958 mil- lion to fund the authority's activities in 2010-11, including $375 million in expected federal economic stimulus funds and $583 million in Proposition 1A bond funds. The total request will be used for three purposes. First, $750 mil- lion is requested for right-of-way assessment and acquisition. Second, $203 million would go for consulting contracts to perform system devel- opment work. Finally, the remaining $5 million would cover the authority's administrative costs. We comment on each of these budget proposals below. Right-o' .. Way Acquisition Total Capital Outlay Request Not Needed in Budget Year. The authority is requesting $750 million for right-of-way acquisition in the budget year. At the time the Governor's bud- get was being prepared, the authority did not know how much ARRA funding the state would be awarded or when the federal dollars wou Id TR-29 TR-30 THE 2010-11 BUDGET become available. Therefore, the $750 million request, comprised of $375 million from the state and an equal amount of federal funds, was a placeholder amount based on the authority's best estimate at the time. However, HSRA has indicated in recent discussions that it would not need the total amount requested in 2010-11. The authority now believes it will need no more than $250 million to begin negotiations with large landholders. Analyst's Recommendation. Based on the authority's updated estimate of the funding needed for land acquisition, we recommend that the capital outlay funding level be reduced by $500 million to provide $250 million in 2010-11. Furthermore, we recommend the adoption of budget bill language, similar to the language in the 2009-10 budget, to authorize the HSRA to replace state bond funding with federal funding as it becomes available. Contract Proposals Little Justification Provided for Contract Amounts. In 2010-11, the authority is requesting $203 million for various contracts. Figure 12 lists the contracts the HSRA proposes to be funded in 2010-11, as well as the amounts expended on these contracts in the prior and current years. While the general types of proposed contract work appear reasonable, the authority's budget requests provide no justification for the specific amou nts requested for each contract. Also, as discussed earlier in this analysis, because the monthly status reports do not indicate whether the work planned for 2009-10 is actually being accomplished, the Legislature cannot determine whether the resources proposed for 2010-11 are appropriate and justified. The authority's fund- ing requests for consult- ing contracts contain little information on the work to be accomplished over the budget year, or about how that work fits into the total develop- ment of the system. As a result, it is unknown how the amount for each contract was determined. This is the same concern raised in our analysis of the authority's similar 2009-10 budget requests. The authority appears no LEGISLATIVE ANALYST'S OFFICE THE 2010 11 BUDGET more equipped to justify the requested contract amounts than it was one year ago. In addition, our review of the budget re- quests for each of the ten contracts for project- level planning and environmental review indi- cates that they are significantly different from the contract amounts projected for 2010-11 in the Program Summary Report. Eight of these contract requests varied by 25 percent or more from the funding levels projected less than a year ago. The revised contract amounts could be due to any number of reasons, such as current-year work being delayed or future efforts being brought for- ward to expedite certain segments of the project. However, the authority has not been able to pro- vide any explanation for the significant changes in contract amounts, nor how these amounts were determined. Analyst's Recommendation. In regard to the proposals for contract funding, there is no basis for the Legislature to determine the appropriate level of contract funding that should be provided to the authority for 201 0-11. Accordingly, we withhold recommendation on the $203 million request pending receipt of supplemental informa- tion on the amount of work to be accomplished in the budget year, by contract, and information on how each contract fits into the overall devel- opment of the system. SlaHing Proposals Staffing Request Should Tie to a Staffing Strategy. The authority is also requesting an increase of $3.5 million and 27 additional staff. This would bring the total authority staffing to 38.5 positions in 2010-11. It is clear that as the project progresses the authority will need to add positions to admin- ister, monitor, and oversee the growing amount LEGISLATIVE ANALYST'S OFFICE of work conducted by contractors. However, at the time this analysis was prepared, the authority was unable to explain how the requested posi- tions would provide the necessary skill sets to support the overall development of the project and why this amount of state staff is needed at this point in the process. Specifically, the au- thority has not determined the mix of state and contracted staff it plans on using to develop the rail project over time. An independent consultant hired by the authority concluded (in November 2009) that the current state staff is insufficient for a project of this size, and recommended a state managerial structure based on the best practices of similar programs around the world. However, the budget request does not provide information on how the proposed positions fit into the con- sultant's recommendations. Early identification of the role of state staff in the project, as well as a future staffing structure, would have significant advantages. For example, it would enable the organization to grow at the necessary speed to ensure staffing levels coincide with the workload required to deliver the project. Additional Exempt Positions Should Be Statutorily Defined. The requested staff posi- tions include a chief financial officer, chief program manager, and three regional managers. The authority believes that it would not be able to attract qualified individuals under the state's current civil service restrictions. Therefore, under the budget proposal, these positions would be established administratively as positions ap- pointed by the Governor and exempt from civil service requirements. Statute currently grants the HSRA the authority to appoint an executive director who is exempt from civil service. We see merit in the HSRA's proposal to establish additional exempt positions. The HSRA TR-31 TR-32 THE 2010-11 BUDGET would likely need numerous exempt positions over the next few years in order to bring on vari- ous staff that have the requisite skills to manage and oversee the development of the rail project by specialized contractors. These high-level staff must have the skills to negotiate with the private sector to finance, construct, and operate the system. Defining these positions through statute, similar to statutesdescribing exempt positions for other agencies in state government, would give the Legislature sufficient control over the specific positions that would be established, the salary levels, and the assignment of responsibilities of each position. This would enable the Legislature Contact Information Dana Curry Director, Transportation, Business, and Housing Jessica Digiambattista Transportation Financing/Highways to retain some additional oversight of the project, while making it easier for the authority to hire the staff necessary to administer the program. Analyst's Recommendation. We withhold recommendation on the staffing request until the authority is able to support the request for ad- ditional staffing with a strategy that outlines how to meet the short-and long-term staffing needs of the organization. The staffing strategy should include justification for the requested exempt positions. For the reasons discussed above, we further recommend that any exempt positions be defined statutorily. 319-8320 Dana.Curry@lao.ca.gov 319-8363 Jessica.Digiambattista@lao.ca.gov Eric Thronson Public Transportation/High-Speed Rail! 319*8364 Housing Eric.Thronson@lao.ca.gov Russia Chavis Transportation/Business 319*8338 Russia.Chavis@lao.ca.gov LAO Publications The Legislative Analyst's Office (LAO) is a nonpartisan office which provides fiscal and policy information and advice to the Legislature. To request publications call (916) 445-4656. This report and others, as well as an E-mail subscription service, are available on the LAO's Internet site at www.lao.ca.gov.TheLAOislocatedat925LStreet.Suite 1000, Sacramento, CA 95814. LEGISLATIVE ANALYST'S OFFICE To: From: Date: RE: ATTACHMENT F MEMORANDUM City of Palo Alto -High Speed Rail Committee Rayi Mehta March 8, 2010 Legislative Update: Pending legislation that directly or indirectly impacts the California High Speed Rail Project The 2010 legislative session is in full swing with over 3,000 new bills introduced. As anticipated, a significant number of bills affecting High Speed Rail ("HSR") have also been introduced. These bills range from carving out exemptions to CEQAt to restructuring the HSR AuthoritYt creating a Department of HSR, providing funding for HSR workforce trainingt reconstituting the HSR Board membership, authorizing the HSR Authority to acquire land for rights-of-waYt etc. Some bills affecting CEQA are spot bills, which merely amend a code section in such an innocuous way as to be totally non-substantive. Spot bills are introduced to assure that a germane vehicle will be available at a later date after the deadline has passed to introduce bills. At that future datet the bill can be amended with more substance included. These bills will also have to be monitored carefully to ensure that they do not affect HSR. A number of CEQA bills were heard in Committee about 10 days ago. These billst marked SBX because they are deemed urgency bills as part of the Special Legislative Sessiont were held in the Senate Environment Quality Committee at the request of the Authors who did not believe they had the votes for passage. Unfortunately, bills with identical language were also introducedt and we should expect them to be amended to address some of the concerns raised by Senator Samitian and other Committee members. The foregoing are summaries and status of each bill (with the exception of budget bills) I believe affects HSR. The City should consider taking a formal position of Supportt Support jf Amendedt Opposet or Monitor for each bill. I can provide more detailed information as requested. A letter stating the City's position, other than Monitor, should be sent to the legislature to ensure that the City's offiCial position is formally recorded. Legislative Update March 8, 20 I 0 CEQA Legislation ABX8 37 (Calderon, Charles) Environment: CEQA Status: 02jllj2010-From printer. Summary: This Bill would enact the CEQA Litigation Protection Pilot Program of 2010 and would require the Business, Transportation and Housing Agency to select projects that meet specified requirements from specified regions for each calendar year between 2010 and 2014. The bill would exempt from judicial review, pursuant to CEQA, a lead agency's decision to certify the EIR of, or to adopt a mitigated negative declaration based on an initial study for, the selected projects, a lead agency's and responsible agency's approval of the selected project, and the Business, Transportation and Housing Agency' s selection of the projects. The bill would require the Business, Transportation and Housing Agency, by December 31 of each year, to submit an annual report to the Governor and to the Legislature summarizing the designation of projects, and the job creation and investment attributable to the deSignated projects. AB 1805 (Calderon, Charles) Environment: (CEQA) Status: 02j25j2010-Referred to Com. on NATURAL RESOURCES & JUDICIARY Summary: This bill would enact the CEQA Litigation Protection Pilot Program of 2010 and would require the BuSiness, Transportation and Housing Agency to select projects that meet specified requirements from specified regions for each calendar year between 2010 and 2014. The bill would exempt from judicial review, pursuant to CEQA, a lead agency's decision to certify the EIR of, or to adopt a mitigated negative declaration based on an initial study for, the selected projects, a lead agency's and responsible agency's approval of the selected project, and the Business, Transportation and Housing Agency' s selection of the projects. The bill would require the Business, Transportation and Housing Agency, by December 31 of each year, to submit an annual report to the Governor and to the Legislature summarizing the designation of projects, and the job creation and investment attributable to the deSignated projects. AB 2713 (Knight) Environment: CEQA (Spot Bill) Status: 02j22j2010-Read first time. Summary: The (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. The CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as reVised, would have a significant effect on the environment. This bill would make technical, non-substantive changes to the CEQA. Legislative Update March 8.20] 0 2 SBX8 42 (Correa) Environment: CEQA Status: 02j24j2010-Set, first hearing. Held in committee without recommendation. Summary: Would enact the CEQA Litigation Protection Pilot Program of 2010 and would require the Business, Transportation and Housing Agency to select projects that meet specified requirements from specified regions for each calendar years between 2010 and 2014. The bill would exempt from judicial review, pursuant to CEQA, a lead agency's decision to certify the EIR of, or to adopt a mitigated negative declaration based on an initial study for, the selected projects, a lead agency's and responsible agency's approval of the selected project, and the Business, Transportation and Housing Agency's selection of the projects. The bill would require the Business, Transportation and Housing Agency, by December 31 of each year, to submit an annual report to the Governor and to the Legislature summarizing the designation of projects, and the job creation and investment attributable to the designated projects. SBX8 56 (Hollingsworth) Environmental Quality: CEQA: exemption: critical infrastructure projects Status: 02j24j2010-Hearing canceled at the request of author. Summary: This Bill would exempt from CEQA a critical infrastructure project, which would include, among other projects, projects funded under the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 or the Disaster Preparedness and Flood Prevention Bond Act of 2006. The bill would provide that this exemption applies retroactively. Because a permitting agency, which includes a local agency, would be required to determine the applicability of, and to give notice of, that exemption, this bill would create a state-mandated local program. SB 1010 (Correa) Environment: CEQA Status: 02j18j2010-To Coms. on ENVIRONMENTAL QUAL. and JUDICIARY. Summary: This Bill would enact the CEQA Litigation Protection Pilot Program of 2010 and would require the Business, Transportation and Housing Agency to select projects that meet specified requirements from specified regions for each calendar year between 2010 and 2014. The bill would exempt from judicial review, pursuant to CEQA, a lead agency's decision to certify the EIR of, or to adopt a mitigated negative declaration based on an initial study for, the selected projects, a lead agency's and responsible agency's approval of the selected project, and the Business, Transportation and Housing Agency' s selection of the projects. The bill would require the Business, Transportation and Housing Agency, by December 31 of each year, to submit an annual report to the Governor and to the Legislature summarizing the designation of projects, and the job creation and investment attributable to the designated projects. Legislative Update March 8. 2010 3 SB 1012 (Runner) Environmental quality: CEQA (Spot Bill) Status: 02/18/2010-To Com. on RULES. Summary: CEQA requires a lead agency, as defined, to prepare, or cause to be prepared by contract, and certify the completion of, an environmental impact report on a project, as defined, that it proposes to carry out or approve that may have a significant effect on the environment, or to adopt a negative declaration if it finds that the project will not have that effect. This bill would make technical, non- substantive changes to those provisions. SB 1195 (Wyland) Environment: CEQA (Spot Bill) Status: 03/04/2010-To Com. on RULES. Summary: CEQA requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a Significant effect on the environment. This bill would make technical, non-substantive changes to CEQA. SB 1261 (Ashburn) Environment: CEQA: expedited review (Spot Bill) Status: 03/04/2010-To Com. on RULES. Summary: This bill would state the intent of the Legislature to enact legislation establishing a fast track environmental review process that maintains current environmental protection while expediting the review of projects related to green or renewable industries that will create jobs in the state. High Speed Rail Legislation AB 153 (Ma) High-Speed Rail Authority Status: 07/02/2009-In committee: Set, first hearing. Hearing canceled at the request of author. Summary: This Bill would eliminate those contingencies to the exercise of the Authority's authority and would specify that the Authority constitutes a "governing body" for the purpose of adopting a resolution of necessity. The bill would authorize the Authority to employ its own legal staff or contract with other state agencies for legal services, or both. AB 289 (Galgiani) High-speed rail Status: 02/11/2010-Re-referred to Com. on TRANSPORTATION & HOUSING Summary: Would authorize the Governor to appoint up to 5 deputy directors exempt from civil service who would serve at the pleasure of the executive director. Legislative Update March 8, 20 I 0 4 AB 1375 (Galgiani) High-speed rail Status: 02j11j2010-Referred to Committees. on TRANSPORTATION & HOUSING and RULES. Summary: "rhis Bill would revise and recast these provisions by repealing and reenacting the California High-Speed Train Act. The bill would continue the High- Speed Rail Authority in existence to make policy decisions relative to implementation of high-speed rail consistent with Proposition lA. The bill would create the Department of High-Speed Trains within the Business, Transportation and Housing Agency, which would implement those policies. "rhe bill would transfer certain of the existing powers and responsibilities of the authority to the department and would specify additional powers and duties of the authority and department relative to implementation of the high-speed rail project, including the annual submission of a 6-year high-speed train capital improvement program and progress report to the Legislature. The director of the department would be appointed by the Governor, who would serve at the pleasure of the authority, and the Governor would be authorized to appoint up to 10 executive employees of the department who would be exempt from civil service and serve at the pleasure of the director. The bill would provide for acquisition and disposition by the department of rights-of-way for the high-speed rail project. The bill would enact other related provisions. AB 1747 (Galgiani» High-Speed Rail Authority Status: 02j18j2010-Referred to Com. on TRANSPORTATION. Summary: Would authorize the authority to consider, to the extent permitted by federal and state law, the creation of jobs in California when awarding major contracts or purchasing high-speed trains, as specified. AB 2121 (Harkey) High-speed rail Status: 03j04j2010-Referred to Com. on TRANSPORTATION. Summary: This Bill would reduce the amount of general obligation debt authorized pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century to the amount contracted as of January 1, 2011. AB 2703 (John A. Perez) Transportation funding Status: 02j22j2010-Read first time. Summary: This Bill would state the intent of the Legislature to enact legislation to ensure that federal transportation funds received in 2010 are expeditiously awarded to maximize job retention in California and to ensure robust oversight of those funds. SBX8 36 (Lowenthal) Federal transportation economic stimulus funds: 2nd round Status: 02jl0j2010-Re-referred to Com. on TRANSPORTATION & HOUSING Summary: This Bill Would require the Department of Transportation to work with local transportation agencies to develop a list of potential projects that may be Legislative Update March 8, 2010 5 awarded within a 90-day period of the award to the state of 2nd round federal transportation economic stimulus funds, The bill would require the department to submit a monthly status report to the Legislature, as specified, with respect to certain milestones for expenditure of these funds. The bill would make related legislative findings and declarations. 58409 (Ducheny) Passenger rail programs: strategic planning Status: 02/11/2010-To Com. on TRANS. Summary: Would place the High-Speed Rail Authority within the Business, Transportation and Housing Agency. The bill would require the 5 members of the authority appointed by the Governor to be appOinted with the advice and consent of the Senate. The bill would require the authority to annually submit a funding plan to the California Transportation Commission for approval, identifying the need for investments during the fiscal year and the amount of bond sales necessary to accommodate those investments. 58 455 (Lowenthal) High-speed rail Status: 07/24/2009-Placed on inactive file on request of Assembly Member Torrico. Summary: Would provide that the members of the authority appOinted by the Governor are subject to appointment with the advice and consent of the Senate. The bill would require the members of the authority, at a scheduled board meeting, to cause to be prepared an overall project schedule with project delivery milestones on a quarterly baSiS, and to approve a quarterly contract status report, beginning at the first board meeting after March 1, 2010. The bill would also require the members of the authority to approve all contract amendments at a scheduled board meeting. 58 879 (Cox) Construction projects: alternative bidding procedures: design- build. Status: 01/21/2010-To Com. on LOCAL GOVERNMENT Summary: Existing law authorizes counties to use alternative procedures, known as design-build, for bidding on construction projects in the county in excess of $2,500,000, in accordance with speCified procedures. Each county that elects to use the design-build method on a public works project is required to submit a report to the Legislative Analyst's Office before December 1, 2009, containing a description of each public works project procured through the design-build process and completed after November 1, 2004, and before November 1, 2009. Existing law also requires the Legislative Analyst, on or before January 1, 2010, to report to the Legislature on the use of the design-build method by counties. This bill would repeal those reporting provisions. S8 964 (Alquist) Workforce development program: high-speed rail Status: 02/18/2010-To Coms. on TRANSPORTATION & HOUSING and EDUCATION. Summary: Would require the authority to contract with the California Community Colleges Chancellor'S office to develop a labor market assessment of the workforce and identify the education and skills needed for high-speed rail, and to develop a Legislative Update March 8, 2010 6 comprehensive workforce training and certification program or programs to facilitate the availability of that workforce. The bill would require the authority and the chancellor's office to form a Jobs Advisory Task Force! as specified, to advise the authority and the chancellor's office on the establishment and operation of training and certification programs required to produce an adequate skilled workforce for this project. The bill would require the labor market assessment to be incorporated into the authority's biennial revised business plan. 58965 (DeSaulnier) High-speed rail Status: 02/18/2010-To Com. on TRANSPORTATION & HOUSING Summary: Would authorize the authority to receive and expend any federal funds awarded to the authority for the purposes of developing a project or projects along the high-speed rail network, thereby making an appropriation. The bill would require the authority to take various actions in that regard. The bill would also require the authority to submit to the Legislature an expenditure plan for the federal funds within 30 days of enactment of this act and to submit a progress report on expenditure of the funds to the Legislature within 180 days of the award of those funds and annually thereafter. The bitl would make legislative findings and declarations relative to the award of federal funds to the state under the federal American Recovery and Reinvestment Act (ARRA) for high-speed rail purposes. S8 1260 (Vee) High-speed rail Status: 03/04/2010-To Com. on RULES. Summary: Existing law, the California High-Speed Rail Act, creates the High-Speed Rail Authority to develop and implement a high-speed rail system in the state, with specified powers and duties. Existing law! pursuant to the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, approved by the voters as Proposition lA at the November 4, 2008, general election, provides for the issuance of $9.95 billion in general obligation bonds for high-speed rail and related purposes. This bill would state the intent of the Legislature to enact legislation to implement the bond act. S8 1371 (Lowenthal & Correa) Federal transportation economic stimulus funds: 2nd round. Status: 03/04/2010-To Com. on TRANSPORTATION & HOUSING Summary: Would require the Department of Transportation to work with local transportation agencies to develop a list of potential projects that may be awarded within a 90-day period of the award to the state of 2nd round federal transportation economic stimulus funds. The bill would require the department to submit a monthly status report to the Legislature! as specified, with respect to certain milestones for expenditure of these funds. The bill would make related legislative findings and declarations. Legislative Update March 8. 2010 7 I I I I I I I I I I I I March 3, 2010 Mayor Pat Burt City of Pa 10 Alto 250 Hamilton Avenue Palo Alto, CA 94301 ATTACHMENT G Ilk! lfl MAR -0 PM 12: 18 Subject: Request for Information from City of Palo Alto Dear Mayor Burt, PRP-1802-LTO-PAL-00l Please pardon the inordinate delay in responding to the City of Palo Alto's detailed request for information submitted to Dominic Spaeth ling bye-mail on January 15,2010. Please know we are in the process of responding to your request. The Business Plan, Methodology and General requests and questions have been forwarded to CHSRA Headquarters (Sacramento) and you will receive a response from them directly. Below are some answers to the questions which pertain specifically to Caltrain. We will respond to the other requests and questions related to Engineering and Operations by March 19,2010. Budget 11. What is the dollar value of using Caltrain right of way for High-Speed Rail? The dollar value for using the Caltrain right of way for high-speed train service has not yet been determined. 12. Are there plans for re-utilizing the railroad corridor to build developments to pay for the High-Speed Rail Project. There are currently no plans to reutilize the railroad corridor for development to pay for the High-Speed Train Project. 13. What are the estimated costs for property values impact, right of way purchase and other temporary construction easements needed during construction? The cost estimates have not been completed. This will be part of a future negotiation between the CHSRA and JPB. Operations 2. What are the latest operational plans for the 2020 or 2035 (whichever is related to the start of HSR service)? The assumptions for future Caltrain service will be provided under separate cover by March 19, 2010. 4. What is the cost/benefit of operations and costs related to not having compatible equipment in terms of platform height, width and train sets? No cost/benefit analysis has been done, but the primary issue of non-compatible equipment between Caltrain and high-speed trains is that they will not be able to share the same platform edge if level-boarding access is to be provided. 5. What is the cost/benefit of having freight and not having freight? Caltrain receives annual payment from the freight operator based on gross tonnage. This amount varies each year. PENINSULA RAIL PROGRAM 799 Seventh Street San Francisco, CA 94107 ~~~ " . ..' HIGH-SPEED RAIL "J AUTHORITY Request for Information from City of Palo Alto March 3, 2010 Page 2 6. What are the restrictions because of freight? There are clearance and gradient requirements that must be met to preserve utility for freight operations. 7. What are the assumptions related to Union Pacific's rights? Assumptions are based upon the existing Trackage Rights Agreement between the Union Pacific and JPB. 8. Provide copies of applicable train horn blowing policies for trains passing through stations. There is no written policy, however, train engineers may use horns at stations at their discretion based on safety conditions. 9. We want a copy of the final EIR for Caltrain which is missing from all websites. And it should be posted next to the draft EIR on the Caltrain website. We are working to get the Finol Electrification EIR posted to the website. Thank you for your understanding as we seek to continue to provide the highest standard of project management on this historic project. CC: Steve Emslie, City of Palo Alto Dominic Spaeth ling, CHSRA PMT Jeffrey Barker, CHSRA Michelle Bouchard, Caltrain Doc. Control PENINSULA RAIL PROGRAM 799 Seventh Street San Francisco. CA 94107 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: City Manager's Office DATE: MARCH 15, 2010 CMR: 160:10 REPORT TYPE: ACTION SUBJECT: Approval of Revised Plan for Downtown Weekday Palo Alto FarmShop RECOMMENDATION 1. Staff recommends that the City Council approve the revised implementation plan for a Downtown Weekday Palo Alto FarmS hop. This revised plan, as outlined below, does not require any public funds and requires only minimal oversight or management by City staff, as directed by the Council last October. 2. Staff recommends that City Council also approve Staff development of a Utility bill insert advertising all 3 Palo Alto Farmer's Markets, as described below. BACKGROUND From April to November in 2009, Capay Valley Growers, in cooperation with the City, established a Community Supported Agriculture (CSA) program and farmer's market on King Plaza, in front of Palo Alto City Hall. The CSA program expanded on an initiative started by IDEO, a nearby Palo Alto-based company. The CSA consists of subscribers from the community, nearby offices and city employees, who support a group of growers for weekly delivery of fruits and vegetables. The City Manager's Report 195:09, from March 30th, 2009, included the original MeJillorandum of Understanding with Capay Valley Growers and outlined the details of the pilot program. The City Manager's Report 405:09, from October 19t\ 2009 described the results of the pilot program and some of the challenges faced during the pilot program. Primarily, staff found that the King Plaza location (in front of City Hall) did not drive enough foot traffic to establish a self- sustaining market. Council was also concerned about the market management costs for the pilot program and directed staff to find an alternative solution or a volunteer to fill such a role. The original intent of this pilot program was to provide local, organic produce for the community and City employees, which is in line with the City's overall goal of sustainability. The Farm Shop and CSA program also provides the opportunity for the community to connect with farmers CMR: 160:10 Page 1 of4 and with the process of local food production, enabling a better understanding of the many benefits of organic, healthy food. DISCUSSION Staff worked with the Fann Shop Board in developing a revised implementation plan for the weekday market to be located at the newly renovated Lytton Plaza. The Farm Shop Board is made up of representatives from the Downtown Business Improvement District (BID), IDEO, Capay Valley Growers, and the City as well as advisors to the Board from the Downtown Farmer's Market and the Palo Alto Institute (PAl). The Implementation Plan below outlines management and iogistics, development of the market, advertising/outreach and finances. 1. Market Management and Market Logistics Staff has done extensive searching for an appropriate volunteer market manager and has found one who is energetic, resourceful and has excellent credentials. This volunteer market manager will be primarily supported by Sherry·Bijan, who is the President of BID. Sherry Bijan has been involved in the development. and management of the downtown farmers market since its inception. Staff will also be posting an opportunity for summer interns to help the market manager continue to develop and manage the market over the summer months. As the market develops, the fees collected from the farmers may be able to cover the market's costs, and the market manager position could eventually become a paid position. This provides the appointed volunteer market manager an entrepreneurial opportunity and an incentive for the market to grow and be successfuL As part of the agricultural permit requirements, the market is required to have access to restrooms during operating hours. As such a local and adjacent business, Pizza-my-Heart has cordially offered the use of their restrooms as they will be open during the farmer's market hours. The attorney's office has reviewed the matter of holding a fanner's market on Lytton Plaza and has determined that a fanner's market use is allowed on the Plaza if the City is an official sponsor of the market. 2. Development of the Market Capay Valley Growers continue to be committed to Palo Alto and to developing a successful downtown weekday fanner's market. Capay Valley Growers continue to serve about 50 Palo Altans per week in the Community supported Agriculture (CSA) program and may use this venue to further engage with those customers. CMR: 160:10 Page 2 The Farm Shop Board would like to see more farmers participating in this market, and as such, the volunteer market manager is reaching out to other local farms like Webb Ranch, Hidden Villa and Full Circle Farms. It is the Board's goal to grow the farm shop to include 3 to 5 local farms participating on a weekly basis over the next year or two. The market will be held at Lytton Plaza, initially running from 3-6pm on Wednesday afternoons. If the number of farms at Lytton Plaza grows to a point that space is no longer available, the Board has discussed either expanding it to King Plaza or High Street Plaza. The board also discussed expanding the market hours to 7pm in the summertime. 3. Advertising and outreach Staff recognizes that one of the challenges faced during the pilot program was the limited advertising and outreach. As such, IDEO has recommitted their team to help in this endeavor. IDEO and the Board feel that advertising and outreach need not cost money, but can be done creatively with significant impact. . The market manager will have primary responsibility for developing and implementing inexpensive and creative marketing and advertising ideas. Sherry Bijan from BID will also work with the volunteer market manager in helping them reach out to the downtown businesses, through BID's network. The Palo Alto Institute (http://paloaltoinstitute.org) has also offered assistance to help the volunteer market manager in marketing and outreach, as well as coordination of musicians who will be booked to play without a fee during market hours. Staff would also like to commit, if Council approves, to advertising in the Utility bill for all three of Palo Alto's farmer's markets. The cost of such is approximately $1,200. 4. Finances The implementation plan is developed so that there is no cost to the City other than the potential Utility bill insert, which would benefit all three Palo Alto farmer's markets. The costs of the agriculture permits and inspections, totaling approximately $1,500 annually, would be initially paid for by the Palo Alto Institute and they would recoup their investment through the fees charged to the participating farmers. The proposed fees for the farmers would be $20-25 per 4'x10' table per week. The set up at Lytton Plaza can have up to 10 tables comfortably, which could mean upwards of $200-$250 revenue per week if other farmers participate. The new location will initially begin with Capay Valley Growers and will hopefully expand to include other growers through outreach from the volunteer market manager. The board decided that it would not be necessary to pay musicians to perform at the new FarmShop, as they would probably make enough in tips due to the higher traffic in this location. As mentioned above, the Palo Alto Institute will also help the FarmShop Manager in scheduling musicians who will not require a stipend. CMR: 160:10 Page 3 of4 The City would also continue to sell the remainder of the reusable FarmShop bags developed for the original pilot program, which could help to offset some of the original investment the City made to the program. RESOURCE IMPACT It is staffs goal that this farmer's market becomes self-sustaining with no financial support from the City. The only potential costs to the City would be for the Utility bill insert as described above. The intent of the advertising would be to include information about all three of Palo Alto's farmer's markets, because the goals and objectives of all three markets align with the goals of the program and the City'S goals of sustain ability and community engagement. Staff time would be minimized and would include participation in the Farmshop Board meetings and as a back up to Sherry Bijan, from BID, who will serve as the primary contact for the volunteer market manager. It is to be noted that since the City is the responsible party for the County Departments of Public Health and Agriculture permits, a staff person is required to be "on call" in case of an emergency during market hours. The staff person will be Debra van Duynhoven and a back up designee will be determined. POLICY IMPLICATIONS Approval of this policy is consistent with current City policies. It also supports the Council's priorities of Environmental Protection and Civic Engagement for the Common Good. ENVIRONMENTAL REVIEW This report is not a project requiring review under the California Environmental Quality Act (CEQA). ATTACHMENTS 1. CMR 405:09 -October 19th, 2009 -Review of Community Supported Agriculture (CSA) Pilot Program at Palo Alto City Hall King Plaza and Make Recommendations for Continuation of the Program PREPARED BY: Debra van Duynhoven Assistant to the City Managerfor Sustainability CITY MANAGER APPROV AL: ----r+IC--'----~__A~----lo"---------- CMR: Page 4 Attachment 1 TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: City Manager's Office DATE: OCTOBER 19, 2009 CMR: 405:09 REPORT TYPE: ACTION SUBJECT: Review of Community Supported Agriculture (CSA) Pilot Program at Palo Alto City Hall King Plaza and Make Recommendations for Continuation of the Program RECOMMENDATION Staff recommends that the City Council: 1) continue to support the Palo Alto Community Farmshop in downtown Palo Alto; 2) move the program to the newly renovated Lytton Plaza after the first of the year; and 3) direct staff to revise the Memorandum of Understanding (MOU) with Capay Valley Growers and return to Council for approval. BACKGROUND Over the past 5 months, Capay Valley Growers, in cooperation with the City, established a Community Supported Agriculture (CSA) program and farmer's market at Palo Alto City Hall. The CSA program expanded on an initiative started by IDEO, a nearby Palo Alto based company. The CSA consists of subscribers wh'o support a group of growers for weekly delivery of fruits and vegetables. The attached report (CMR: 195 :09) describes the original intent and details of the pilot program, which was launched in April of this year. The original intent was to provide local, organic produce for the community and City employees, which is in line with the mission of . sustainability, creating a healthy engaged community. The CSA program also provides the opportunity for the community to connect with farmers and with the process of local food production, enabling a better understanding of the many benefits of organic, healthy food. Staff can build on the lessons and experiences of the last seven months to develop a long-term, self-sustaining model for a downtown weekday farmer's market. Staff realizes that additional advertising may have been necessary to bring the community to King Plaza, which on a regular day does not get a steady flow of foot traffic. Staff also did not anticipate the permit fees and additional hours for a market manager. Given the timing of the hiring of the Assistant to the City Manager for Sustainability, staff had to extend the original contract for the Market Manager. CMR: 405:09 Page 1 Capay Valley Growers have been encouraged by the results so far and are content with the 40- 60 subscribers they have had to the Fannshare program, but would like the sales of the market of individual produce and products to grow and become more viable. The foot traffic on King Plaza is variable and currently does not produce high enough volume for this portion of the program to be self-sustaining. Capay Valley Growers are committed to this program and are proposing to pay a percent of sales to the City. Their sales have been about $2,000 per week, about 40% of which are from the CSA Farmshop program. Capay Valley Growers have agreed to pay a fee to participate in this program, which is standard for all fanners markets, although the amount varies. Capay Valley Growers have proposed to pay 5% of gross sales, or approximately $100 per week. Although the move to Lytton Plaza will make City employees' access less convenient, soon the new location will broaden the Farmshop's visibility to the community and make the program self sustaining. DISCUSSION Staff has reviewed several options for the Fannshop moving forward. They are: 1. Keep Farmshop at King Plaza a. Staff has found that City employee participation in the CSA program was not as high as originally anticipated. Overall, only about 10-20 City employees have participated in the program. Staff would like to continue providing a benefit to employees by hosting the market on King Plaza. However, given that the general market traffic has been lower than anticipated and desired, a location with higher foot traffic is more desirable. b. Actual costs for the pilot program have been $24,000. The original budget for the pilot program was $19,000. These costs include an hourly market manager for $21,000, pennits and advertising for $1,465, entertainment for $1,440 and supplies for $95. Again, given the timing of the hiring of the Assistant to the City Manager for Sustainability, staff had to extend the contract for the market manager. The original cost estimate for the market manager outlined in the MOU was between $10,000 and $15,000. Additionally, staff found that the market manager needed to spend more time on outreach and marketing to draw more people to King Plaza. c. Estimated costs for one year for the market to remain at King Plaza would include pennit and fees, advertising, entertainment and local market organizer totaling about $10, 800. From the pilot program, staff estimates the penn it and fees at $800. Advertising is expected to be higher at King Plaza in order to draw the people to this location. Advertising may include one utility bill insert and 4 newspaper ads totaling $3,200. Entertainment is estimated to be $2,800, which is twice the actual cost for 6 months. Costs would also include a local market coordinator, which is estimated at $4,000. However, staff and Capay Valley Growers will also look at the option of engaging a volunteer market coordinator, CMR: 405:09 Page 2 5 and this could reduce the City's financial commitment. The market coordinator in this scenario may be asked to do more outreach and marketing to help draw people to the market and assist in weekly setup and cleanup, which would increase their time commitment. d. Many of the other market management responsibilities would be assumed by the Assistant to the City Manager for Sustainability. Additional duties that the staff can take on are coordination with City issues such as permit and fees, budget and expense reconciliation, advertising as described in (d) above and work with IDEO, Palo Alto Downtown Business Association and Capay Valley Growers on low-cost outreach opportunities. Special events coordination would be managed by the Farmshop Board and Assistant to the City Manager for Sustainability. 2. Move Farmshop to Lytton Plaza upon its re-opening a. Lytton Plaza is currently going through an extensive renovation. The Plaza could easily host a small farmer's market program. A weekly farmer's market would also bring people to the businesses on University A venue and support nearby businesses. Staff has had a preliminary conversation with the Business Improvement District about this option and there is interest in exploring it further. b. The move to Lytton Plaza would most likely occur in January given the schedule for Lytton Plaza's opening and the Christmas break. Staff recommends that we keep the Farmshop in King Plaza until the Christmas break. c. Staff also recommends that the hours be modified for the Lytton Plaza location to take advantage of lunchtime foot traffic. d. Estimated for costs for one year for the market at Lytton Plaza would include permits and fees, advertising and local market organizer totaling about $5,000. From the pilot program, staff estimates the permit and fees at $800. Costs would also include a local market coordinator, which is estimated at $3,000. However, staff and Capay Valley Growers will also look at the option of engaging a volunteer market coordinator, which could reduce the City's financial commitment. The duties that would be the responsibility of the market coordinator would be weekly setup and cleanup activities with Capay Valley Growers and being present onsite during market hours to assist with any issues. Advertising may include one utility bill insert and 2 newspaper ads totaling $2,200. There would be no monetary allowance for musicians in this scenario, as staff believes that the musicians could gamer enough in tips and donations, due to the increased foot traffic at this location. e. Many of the other market management responsibilities would be assumed by the Assistant to the City Manager for Sustainability. Additional duties that the staff can take on are coordination with City issues such as permit and fees, budget and expense reconciliation, advertising as described in (d) above and work with IDEO, Palo Alto Downtown Business Association and Capay Valley Growers on CMR: 405:09 Page 3 of5 low-cost outreach opportunities. Special events coordination would be managed by the Farmshop Board and Assistant to the City Manager for Sustainability. 3. Close Farmshop operations a. Staff does not recommend this option because the goals and objectives of the program align with the City's goals of sustainability and community engagement. If a proposal can be developed to reduce the financial impact to the City as outlined in Option 2, staff would recommend continuing with the program. Depending upon Council action, staff will further engage the BID discussions around the Lytton Plaza option and will return with revisions to the original MOU with Capay Valley Growers. RESOURCE IMPACT The resource impact for one year for the option staff suggests (Option 2) would be as follows; 1. Permits and fees -$800 2. One utility bill insert (for all three markets) -$1,200 3. Two newspaper ads (for all three markets) -$1,000 4. Locallabor/market organizer -$3,000 The total resource impact would be $5,000. This does not include the potential 5% fee we could receive from Capay Valley Growers which could total about $1,200 per year. Note the intent of the advertising would be to include information about all three of Palo Alto's farmer's markets, because the goals and objectives of all three markets align with the goals of the program and the City's goals of sustainability and community engagement. Again, it is staffs goal that this farmer's market becomes self-sustaining with little to no financial support from the City. The pilot program was very useful in that it allowed staff to evaluate the costs and requirements for operating a farmer's market. Overall, staff believes this was a worthwhile experiment to encourage sustainable goals within a community and with City staff. POLICY IMPLICATIONS Approval of this policy is consistent with current City policies. It also supports the Council's priorities of Environmental Protection and Civic Engagement for the Common Good. ENVIRONMENTAL REVIEW This report is not a project requiring review under the California Environmental Quality Act (CEQA). CMR: 405:09 Page 4 of5 ATtACHMENTS CMR: 195:09 -Approval of a Memorandum of Understanding with Capay Valley Growers, Incorporated, to Operate a Community Supported Agriculture (CSA) Pilot Program at Palo Alto City Hall King Plaza PREPARED BY: Debra van Duynhoven Assistant to the City Manager CITY MANAGER APPROVAL: CMR: 405:09 James Keene City Manager Page 5