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HomeMy WebLinkAbout2010-04-19 City Council Agenda Packet 1 04/19/10 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 Chambers April 19, 2010 7:00PM ROLL CALL SPECIAL ORDERS OF THE DAY 1. Proclamation Expressing Appreciation to the Friends of the Palo Alto Junior Museum & Zoo for Outstanding Public Service ATTACHMENT 2. Proclamation Expressing Appreciation to Save the Bay for Outstanding Public Service ATTACHMENT 3. Proclamation Expressing Appreciation to John Reinhardt for Outstanding Public Service ATTACHMENT STUDY SESSION 3a. 1) Approval of Staff Update Regarding April 22, 2010 Effective Date for Ordinance Restricting Food Vendors’ Use of Expanded Polystyrene, 2) Acceptance of Staff Update on Less-Toxic Pest Control Program for City Operations, and 3) Acceptance of Staff Update on Zero Waste Programs 2010 ATTACHMENT 3a-1 ATTACHMENT 3a-2 ATTACHMENT 3a-3 CMR 206:10 CMR 215:10 CMR 216:10 2 04/19/10 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. 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. CONSENT CALENDAR Items will be voted on in one motion unless removed from the calendar by two Council Members. 4. Preliminary Approval of the Report of the Advisory Board for Fiscal Year 2011 in Connection with the Palo Alto Downtown Business Improvement District and Adoption of Resolution Declaring its Intention to Levy an Assessment Against Businesses Within the Downtown Palo Alto Business Improvement District for Fiscal Year 2011 and Setting a Time and Place for a Public Hearing on May 17, 2010 at 7:00 PM or Thereafter, in the City Council Chambers CMR 190:10 & ATTACHMENT 5. Approval of a Sole Source and Design/Build Agreement with Devcon Construction, Inc. in the Amount of $113,100 for Construction of Improvements to Bobcat Facilities and Other Areas at the Palo Alto Junior Museum and Zoo CMR 193:10 & ATTACHMENT 6. Denial of an Appeal by All Signs Services of an Architectural Review Approval Condition to Delete Two Ancillary, Illuminated Wall Signs: “Liquor” and “Photo” Associated with a CVS Pharmacy Within the CN(GF)(P) Zone District Located at 2701 Middlefield Road CMR 220:10 & ATTACHMENT 3 04/19/10 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. 7. Adoption of Two Resolutions to Incorporate a Side Letter Agreement with the Palo Alto Peace Officers’ Association (PAPOA) to Provide a Supplemental Military Leave Benefit to Pay for the Differential Between Regular Salary and Military Pay to PAPOA Members Called to Involuntary Active Duty Amending: (1) Section 1601 of the Merit System Rules and Regulations Regarding the 2007-2010 Memorandum of Agreement and (2) the Compensation Plan for Police Non-Management Personnel (PAPOA) Adopted by Resolution No. 8779 CMR 140:10 & ATTACHMENT 8. Approval of Utilities Public Benefit Three-Year Contract with OPOWER, Inc. in the Total Amount of $574,083, $213,000 of Which Comes From Federal Stimulus Funds, for Administration and Delivery of Residential Home Energy Reports CMR 191:10 & ATTACHMENT 9. 2ND READING Adoption of an Ordinance Amending Title 2 (Administrative Code) of the Palo Alto Municipal Code to Amend Section 2.28.230 (Claims) of Chapter 2.28 (Fiscal Procedures), Section 2.33.110 (Refunds; Credits) of Chapter 2.33 (Transient Occupancy Tax), Section 2.34.220 (Refunds) of Chapter 2.34 (Real Property Transfer Tax) and Section 2.35.190 (Refunds) of Chapter 2.35 (Utility Users Tax) (First reading April 05, 2010 – Passed 9-0) 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 4 04/19/10 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. 10. Approval of Comment Letter on the Revised Draft Program EIR for the Bay Area to Central Valley High Speed Train Project and Review of Guiding Principles CMR 221:10 & ATTACHMENT 11. Report on 2009 Climate Protection Plan Goals and Approval of 1) Expanding the Greenhouse Gas (GHG) Emissions Goals and Reduction Plan for City Operations in 2012 to 20%, 2) New Initiatives to Accelerate GHG Reductions and Cost Savings for City Operations CMR 194:10 & ATTACHMENT 12. Response to Colleagues Memo Directing the City Manager to Explore Ways to Reduce Potable Water Use in Palo Alto by 20% by 2020 and Approve Proposed Baseline and Strategies to Achieve the 20% Goal CMR 212:10 & ATTACHMENT 13. Update on City Sustainability and Environmental Initiatives Including a Report from the Community Environmental Action Partnership (CEAP) CMR 200:10 & ATTACHMENT 14. Adoption of a Resolution Approving Additional Findings of Fact for the City’s Green Building Ordinance (Ordinance No. 5006) in Compliance with California Assembly Bill 210 (2009) and Review of Report on Implementation of the City’s Green Building Ordinance CMR 210:10 & ATTACHMENT 5 04/19/10 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. 15. Colleague’s Memo from Council Members Holman, Klein and Scharff Requesting that the City Council Recommend to the Voters of Palo Alto That They Not Sign the Union Petition Seeking to Remove the Ability of the Council to Determine Appropriate Staffing Levels for the Fire Department 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. CITY OF PALO ALTO PROCLAMATION Expressing Appreciation to the Friends of the Palo Alto Junior Museum & Zoo for Outstanding Public Service WHEREAS, The Friends of the Palo Alto Junior Museum and Zoo (Friends) have played an integral role in the support and operation of the Palo Alto Junior Museum and Zoo (JMZ) since their inception in 1962; and WHEREAS, In November 2007, the City Council approved a Mutual Cooperation and Support Agreement with the Friends (Partnership Agreement), that has improved outcomes for the JMZ by improving outside funding for increased or enhanced JMZ programs and capital improvements; and WHEREAS in June 2009, the Friends successfully completed a capital campaign for a new living exhibit for the City’s Bobcats at the JMZ; and WHEREAS, On December 7, 2009, the City Council approved an agreement to provide right of entry and exclusive access to that portion of the park for the purposes of construction of the new bobcat facilities by the Friends; and WHEREAS, The Friends have engaged a contractor to complete construction of the exhibit by June 19, 2010 and upon completion will gift it to the City the exhibit at their cost of $450,000; and WHEREAS, The Friends provide annual funding for City Staff to teach science in East Palo Alto and East Menlo Park; and WHEREAS, The Friends provide annual financial support for interactive exhibits at the JMZ; and WHEREAS, The Friends contributions to the Junior Museum & Zoo benefit the children of Palo Alto, East Palo Alto, and East Menlo Park, and the gift of Bobcat Ridge will improve the lives of the City’s bobcats and will enrich the experience of the 150,000 children and other visitors to the JMZ each year. NOW, THEREFORE, I, Patrick Burt, Mayor of the City of Palo Alto, on behalf of the City Council hereby commends the outstanding public service provided by the Friends of the Palo Alto Junior Museum & Zoo and records its appreciation for contribution of Friends of the Palo Alto Junior Museum & Zoo to the City of Palo Alto. Presented: April 2010 ______________________________ Patrick Burt Mayor CITY OF PALO ALTO PROCLAMATION Expressing Appreciation to Save the Bay for Outstanding Public Service WHEREAS, Save the Bay has partnered with the Baylands Nature Preserve since 2001 to involve local schools, community groups, businesses, and agencies in wetland restoration; and WHEREAS, Save the Bay and their volunteers donate approximately 8,000 volunteer hours and plant approximately 10,000 native plants each year in the Palo Alto Baylands. These restoration activities, performed by volunteers, are helping to stabilize our creeks, wetlands, and bay shoreline, thus improving habitat for fisheries, invertebrates, birds, and other wildlife in San Francisco Bay; and WHEREAS, Save the Bay provided the funding for a native plant nursery at the Baylands in 2004. The nursery allowed the City to save approximately $10,000 per year, and more importantly, allowed our volunteers to participate in all aspects of the restoration process from non-native removal to seed collection to plant propagation and out-planting; and WHEREAS, Save the Bay provides expertise on restoration project planning, plant propagation, and management of much of the restoration efforts at the Baylands; and WHEREAS, Save the Bay is in the process of funding the construction of a new greenhouse and work shed to enhance the existing native plant nursery at the Baylands. NOW, THEREFORE, I, PATRICK BURT, Mayor of the City of Palo Alto, on behalf of the City Council hereby commends the outstanding public service provided by the American Red Cross and records its appreciation for contribution of Save the Bay to the City of Palo Alto. Presented: April 2010 ______________________________ Patrick Burt Mayor CITY OF PALO ALTO PROCLAMATION Expressing Appreciation to John Reinhardt for Outstanding Public Service WHEREAS, John Reinhardt retired in 1999 as a physicist, mechanical and electronic engineer who worked on the first communication system for the Apollo program; the first metal mirror into space; a device measuring underground nuclear explosions; a device to detect radiation after the Navy lost the USS Thresher nuclear submarine; and, a camera for the U2 spy plane; and WHEREAS, John Reinhardt remains busy in retirement by volunteering his services as a Friend of Foothills Park, participating in the Panda program and as a Graffiti Buster, he adopted a mile of Adobe Creek, and built a Kiosk at the Baylands; and WHEREAS, As a member of the Palo Alto Seniors Men’s Club, John Reinhardt, who upon hearing how short staffed golf maintenance has been, has worked for the past year assisting the golf course with their native grass and plant project; and WHEREAS, John Reinhardt designed and built a nursery, recruited as many as ten volunteers, set up meetings, and has been growing and planting native grasses and plants at the Municipal Golf Course; and WHEREAS, John Reinhardt put in a tremendous amount of energy and hours over this past year worked to achieve the goal of reducing water usage and fertilizers, reducing mowing and labor, improving wildlife habitat, all the while giving the golf course a new look, hoping to attract more revenue; and NOW, THEREFORE, I, Patrick Burt Mayor of the City of Palo Alto, on behalf of the City Council hereby commends the outstanding public service provided by John Reinhardt to the City of Palo Alto. Presented April 2010 ______________________________ Patrick Burt Mayor TO: HONORABLE CITY COUNCIL (!) FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: APRIL 19, 2010 CMR:206:10 REPORT TYPE: INFORMATION SUBJECT: Staff Update Regarding April 22, 2010 Effective Date for Ordinance Restricting Food Vendors' Use of Expanded Polystyrene SUMMARY On Earth Day2010 (April 22, 2010) Palo Alto's Ordinance to restrict food vendors from providing prepared food in disposable food service containers made from expanded polystyrene or non- recyclable plastic goes into effect. The Ordinance, adopted on May 11, 2009, is primarily intended to reduce the negative environmental impacts of expanded polystyrene food service containers, which become a very persistent and mobiksource of litter to local creeks and marine ecosystems when improperly disposed. BACKGROUND Expanded polystyrene foam presents unique management issues because it is lightweight, floats, resists biodegradation, and easily breaks into smaller pieces. These small pieces can be ingested by marine wildlife, leading to reduced appetite and nutrient absorption and possible death by starvation. According to a United Nations Environment Global Program of Action Study, at least 162 marine species including most seabirds are reported to have eaten plastics and other litter. Although expanded polystyrene is considered an inexpensive and effective product, it has many drawbacks and hidden costs which are deferred to the public and the environment. Food service polystyrene is a one-time use product that degrades extremely slowly in nature. Expanded polystyrene litter is not easily contained and is often conveyed to local creeks, the San Francisco Bay and the Pacific Ocean. Expanded polystyrene waste constitutes 15% of the litter collected in storm drains, and is the second most abundant type of marine debris according to a 2004 California Integrated Waste Management Board Study. On February 11, 2009, the San Francisco Bay Regional Water Quality Control Board listed many Bay Area creeks as having water quality that is impaired by trash, as defined by the Clean Water Act. The accompanying staff report identified expanded polystyrene as one of the types of trash responsible for the impairment. CMR:206:10 Page 1 of3 The primary goal of the Ordinance is to restrict food vendor use of expanded polystyrene disposable food service containers and to create a shift to multiple-use containers where possible. Where multiple-use containers are not viable, the desired shift is to recyclable plastic or fiber (paper) containers. Summary of Ordinance The definition of Food Vendor contained in the Ordinance is broader than traditional food service establishments and includes retail food vendors, cafeterias, sidewalk and other outdoor food vendors, food vehicles, and caterers. Foods that are prepared or packaged outside of the City of Palo Alto are exempt. The food service container restriction is limited to containers used for prepared and ready- to-consume food, and does not apply to single-use disposable straws, utensils, or hot cup lids. The Ordinance also prohibits the use of expanded polystyrene or non-recyclable plastic food service containers at City facilities, City managed concessions, City sponsored events, and City permitted events. Food vendors are required to comply on April 22, 2010; but the City may grant exceptions on a case by case basis exempting a vendor from compliance up to one year based on undue hardship in certain specific situations. No food vendors have applied for an exemption, to date. How many food seryice establishments are impacted? Extrapolating from a survey of 118 Palo Alto Food Vendors, staff estimated that approximately 30% of all Palo Alto Food Vendors (approximately 400 facilities) use expanded polystyrene or non- recyclable plastic food service containers. Outreach to Restaurants In October 2009, City staff sent 376 letters to food service establishments informing them about the adoption of the Ordinance and included a complete copy of the Ordinance. On April 1 st, City staff sent a reminder postcard to food service establishments reminding them of the Ordinance's effective date. A second postcard will be sent to food service establishments on April 21 st reminding them that expanded polystyrene and non-recyclable food service containers are now restricted as of April 22, 2010. To date, City staff has not received any responses from the food vendors. RESOURCE IMPACT No impact to the refuse fund. ENVIRONMENTAL REVIEW Approval of staff's update does not meet the definition of a "proj ect" pursuant to Section 21065 of the Public Resources Code, thus CEQ A reviews is not required. Previously on May 11, 2009, City Council approved a Negative Declaration which confirmed that the Ordinance does not have the potential to result in significant impact on the environment. ATTACHMENTS Attachment A: Ordinance Attachment B: Reminder postcard to food service establishments CMR:206:10 Page 2 of3 PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: CMR:206:10 KARIN D. NORTH Associate Engineer . . .~JJi:j--- GLENN S. ROBERTS Director 0 blic Wor Page 3 of3 ATTACHMENT A Ordinance No. 5039 Ordinance of the Council of the City of Palo Alto Repealing Chapter 5.30 (''Chlorofluorocarbon -Processed Food Packaging") and Adding a New Chapter 5.30 ("Expanded Polystyrene and Non-Recyclable Food Service Containers") to Title 5 ("Health and Sanitation") of the Palo Alto Municipal Code The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. Findings and purpose. The Council finds and declares as follows: (a) The prevalent use of polystyrene as a food service container product is increasing, largely bolstered by its affordability; however, production costs continue to rise due to increasing crude oil prices. While the California Integrated Waste Management Board (CIWMB) estimates that Californians use 165,000 tons of polystyrene each year for packaging and food service purposes alone, there is currently no economically feasible means of recycling the product in the City of Palo Alto. According to a 2000 CIWMB study only 0.2% of polystyrene food service packaging is recycled statewide. (b) There are two types of polystyrene commonly used as food service containers: oriented polystyrene (clear and rigid) and expanded polystyrene (opaque foam). The Palo Alto community throws away approximately 305 tons of expanded polystyrene containers each year, according to a Palo Alto Waste Composition Study conducted in May 2006. The Palo Alto Recycling. Center has never been able to accept expanded polystyrene food service containers, and expanded polystyrene food service containers are not compatible with the new commercial composting service that commences on July 1,2009. (c) On January 12, 2009, the Palo Alto Recycling Center stopped accepting expanded polystyrene peanuts and expanded polystyrene blocks commonly used for consumer goods packaging. Expanded polystyrene peanuts and. expanded polystyrene blocks are cOnsidered to be more amenable to recycling than expanded polystyrene food service containers. Ongoing logistical and quality control challenges related to the minimal recycling market for expanded polystyrene. make even the recycling program for peanuts and blocks infeasible. All expanded polystyrene materials must now be disposed of in a landfill. (d) Although expanded polystyrene is considered an inexpensive and effective product, it has many drawbacks and hidden costs which are deferred to the public and the environment. Food service polystyrene is a one-time use product that degrades extremely slowly in nature. Expanded polystyrene litter is not easily contained and is 1 090512 sY1l6050S39 often conveyed through stonn drains to local creeks, the San Francisco Bay and the Pacific Ocean. Polystyrene waste constitutes 15% of the litter collected in stotm drains, and is the second most abundant type of marine debris according to a 2004 CIWMB study. (e) Expanded polystyrene foam presents unique management issues because it is lightweight, floats, resists biodegradation, and easily breaks into smaller pieces. These small pieces, similar in size to plankton, are ingested by marine wildlife, leading to reduced appetite and nutrient absorption and possible death by starvation. According to a United Nations Environment Global Program of Action study, at least 162 marine species including most seabirds are reported to have eaten plastics and other litter. . , (t) On February 11, 2009, the San Francisco Bay Regional Water Quality Control Board listed two Palo Alto creeks, Sari. Francisquito Creek and Matadero Creek, as having water quality that is impaired by trash, as defined by the Clean Water Act. The staff report recommending that tlJ,e creeks be listed identifies expanded polystyrene M being one of the types of trash responsible for the impairment. (g) Both of the major chemicals used to produce expanded polystyrene, Benzene (a known human carcinogen) and Styrene (a possible carcinogen and neurotoxin), are suspected by the EPA and FDA to leach from polystyrene food containers, posing a threat to the environment and human health. (h) The City of Palo Alto desires to protect the natural environment, the health of its citizens, and the economy. This includes exercising environmental stewardship by reducing the amount of expanded polystyrene and non-recyclable plastic released into the City's ecosystem and beyond. (i) Non-recyclable materials pose a challenge to any environmentally and fiscally responsible solid waste management program. Regulation of food packaging is necessary to encourage a recyclable waste stream and to reduce the disposal of solid waste and the economic and environmental costs of waste management. 0) It is the intent of the Council to reduce the negative impacts of expanded polystyrene food service containers and encourage the use of recyclable alternatives through the implementation of this Ordinance. SECTION 2. Chapter 5.30 (Chlorofluorocarbon -Processed Food Packaging) of the Palo Alto Municipal Code is hereby repealed in its entirety and a new Chapter 5.30 is added to read as follows: II /I II 2 090512 syn 6050539 Chapter 5.30 EXPANDED POLYSTYRENE AND NON-RECYCLABLE FOOD SERVICE CONTAINERS Sections: 5.30.010 5.30.020 5.30.030 5.30.040 5.30.050 5.30.060 5.30.070 5.30.010 Definitions Prohibitions on the Use of Expanded Polystyrene and Non-Recyclable Plastic Exemptions Operative Dates Severability Penalties Construction and Preemption Definitions. (a) "City facilities" refers to any building, structure or vehicle owned or operated by the City of Palo Alto, its agents, departments and franchises. (b) ''Disposable food service container" means single-use disposable product used by food vendors for serving or transporting prepared and ready-to-consume food or beverages. This includes but is not limited to plates, cups, bowls, lids, trays and hinged or lidded containers. This does not include single-use disposable straws, utensils, or hot cup lids. . (c) "Expanded Polystyrene" -means a thennoplastic petrochemical material utilizing the styrene monomer, marked with recycling symbol #6, processed by any number of techniques including, but not limited to, fusion of polymer spheres (expandable bead polystyrene), injection molding, form molding, and extrusion-blow molding (extruded foam polystyrene), sometimes incorrectly called Styrofoam®, a Dow Chemical Company trademarked fonn of polystyrene foam insulation. In food service, expanded polystyrene is generally used to make cups, bowls, plates, and trays. (d) "Food vendor" ineans any establishment, located or providing food within the City of Palo Alto, which provides prepared and ready-to-consume food or beverages, for public consumption including but not limited to any store, supennarket, delicatessen, restaurant, retail food vendor, sales outlet, shop, cafeteria, catering truck or vehicle, sidewalk or other outdoor vendor, or caterer. (e) ''Non-Recyclable Plastic" means all plastics that do not meet the definition of "Recyclable Plastic". 3 090512 syn 60505~9 (t) "Prepared food" means any food or beverage prepared for consumption using any cooking, packaging, or food preparation technique, including but not limited to cooking, chopping, slicing, mixing, freezing, squeezing, or brewing, and which requires no further preparation to be consumed. Prepared food includes uncooked fruits or vegetables and any "take-out" food, or food consumed off the food vendor's premises. Prepared food does not include any uncooked meat, fish, poultry, or eggs. (g) "Recyclable Plastic" means all plastics that can be recycled, salvaged, compostoo, processed, or marketed by any means other than land-filling or burning, whether as fuel or otherwise, so that they are returned to use by society. Recyclable plastics include any plastic which can be feasibly recycled by the City's municipal recycling program and presently is limited to those plastics With the following recycling symbols: #1 -polyethyleneterephthalate (PET or PETE), #2 -' high density polyethylene (HDPE), #3 -polyvinyl chloride (PVC), #4 -low density polyethylene (LDPE), #5 -polypropylene (PP), #6 -polystyrene, exCept for the expanded version of polystyrene, and #7 -other plastics, including compostable plastics such as polylactic acid (PLA) For purposes of this Chapter, Recyclable Plastic does not include expanded polystyrene labeled with recycling symbol #6. 5.30.020 Prohibition on the Use of Polystyrene and Non-Recyd~ble Plastic. (a) Except as provided by section 5.30.030 food vendors are prohibited from providing prepared food in disposable food service containers made from expanded polystyrene or non-recyclable plastic. (b) . Except as provided by section 5.30.030 all City facilities, City managed concessions, City sponsored events, and City pennitted events are prohibited from using disposable food service containers made from expanded polystyrene or non- recyclable plastic. ( c) Nothing in this Ordinance shall be interpreted to restrict the use of any fonn of fiber or. paper disposable food service container, or the use of any fonn of biodegradable or compostable plastic food service container that meets the definition of Recyclable Plastic, in Section 5.30.010(g). 5.30.030 Exemptions (a) Foods prepared or packaged outside the City of Palo Alto are exempt from the provisions of this Chapter. Purveyors of food prepared or packaged outside the City of Palo Alto are encouraged to follow the provisions of this Chapter. (b) Coolers and ice chests that are intended for reuse are exempt from the provisions of this Chapter: ( c) The director of Public Works, or hislher designee, may exempt a food vendor from the requirements of this Ordinance for a period of one year, upon showing by the food vendor that the conditions of this Ordinance would cause an undue hardship. An ''undue hardship" includes, but is not limited to situations unique to the food vendor 4 090512 syn 6050539 where there are no reasonable alternatives to expanded polystyrene or non-recyclable plastic disposable food service containers and compliance with this Ordinance would cause significant economic hardship to that food vendor, or cause the food vendor to be deprived of a legally protected right. (d) A food vendor seeking an exemption application shall include all information necessary for the City to make its decision, including but not limited to documentation showing the factual support for the claimed exemption. The Director may require the applicant to provide additional infonnation to pennit the Director to determine facts regarding the exemption application. (e) Emergency Supplies and Service Procurement. City facilities, food vendors, City franchises, contractors and vendors doing business with the City shall be exempt from the provisions of this chapter, in a situation deemed by the City Manager to be an emergency for the immediate preservation of the public peace, health or safety. 5.30.040 Operative Dates. All food vendors and City facilities must comply with the requirements of this Ordinance by April 22, 2010. ' 5.35.050 Severability. If any provision or clause of this chapter is held to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such invalidity shall not affect other proVisions of this chapter, and clauses of this chapter are declared to be severable. 5.35.060 Penalties (a) Anyone violating ~r failing to comply with any of the requirements of this Chapter shall be guilty of an infraction as set forth in Chapter 1.08 of the Palo Alto Municipal Code. (b) Each and every sale or other transfer of disposable food service containers made from expanded polystyrene or non-recyclable plastic shall constitute a separate violation of this Ordinance. (c) The remedies and penalties provided in this Section are cumulative and not exclusive. 5.35.070 Construction and Preemption This Chapter and any of its provisions shall be null and void upon the adoption of any state or federa1law or regulation imposing the same, or essentially the same, limits on the use of prohibited products as set forth in this Chapter. This Chapter is intended to be a proper exercise of the City's police power, to operate only upon its own officers, agents, employees and facilities and other persons acting within its boundaries, and not to regulate inter-city or interstate commerce. It shall be construed in accordance with that intent. 5 090512 syn 6050539 · . SECTION 3. The City Council finds that the adoption of this Ordinance is subject to environmental review under provisions of the California Environmental Quality Act (CEQA) under Section 15070 of the CEQA Guidelines, ("Decision to Prepare a Negative or Mitigated Negative Declaration"). The Department of Planning and Community Environment prepared an Initial Study for this Ordinance, which confinned that the Ordinance does not have the potential to result in a significant impact on the environment. Consequently, a Negative Declaration was prepared, made available for public review beginning August 29, 2008 through September 17, 2008 and is hereby adopted. SECTION 41 This ordinance shall be effective on the thirty-first day after the date of its adoption. INTRODUCED: APRIL 27, 2009 PASSED: MAY 11,2009 AYES: BARTON, BURT, DREKMEIER, ESPINOSA, KI~HIMOTO, KLEIN, SCHMID, YEH NOES: ABSENT: MORTON ABSTENTIONS: Mayor APPROVED AS TO FORM: ,~w. /!xhL--w. Deputy Cl Attorney 6 090512 syn 6050539 · ' W 18 ··Ml fOOD VENDORS gD DMIIIOOS 11111 OlYOF MlOAUO WHAT MUSI SlOP USING ftllYSlllMl fOMlIe.g. SlYRDRlAl") Sl.VlCE uDRHoromDOJIlANtOlSAND BIGIUSING CNPOSUIIU OR RICtWBL£ AUlIIIlTII/IS WHY TO REDUtIURIR PlILUlIIONIN lDW OlIEIlS.SJOfl DUIKS ATTACHMENTB TO: HONORABLE CITY COUNCIL e FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: APRIL 19,2010 CMR:215:10 REPORT TYPE: INFORMATION SUBJECT: Staff Update on Less-Toxic Pest Control Program for City Operations RECOMMENDATION Staff recommends that the City Council accept this report titled Update on Less-Toxic Pest Control Program for City Operations. BACKGROUND In 2001, the City of Palo Alto adopted a reduced-risk pest management policy and drafted an Integrated Pest Management plan for the use of pesticides by City staff and contractors. The goals of the Integrated Pest Management program are to: • minimize water quality and other eco-toxicity impacts from the City's pesticide use; • minimize total pesticide use; and • use the least toxic pesticides when pesticide use is required These goals are achieved through an annual quantification of the City's pesticide use and continual improvement of pest control strategies. Integrated pest management also known as reduced-risk or less-toxic pest management, encourages long-term pest prevention and suppression through a combination of techniques including biological controls, habitat manipulation, use of resistant plant varieties, improved landscape and building hygiene, and structural repair and pest barriers. Integrated Pest Management sanctions synthetic chemical pesticides only as a last resort, and only with the least toxic chemicals available. While the City of Palo Alto has used these principles for many years, additional storm water protection regulatory requirements resulted in a more formal, structured Integrated Pest Management program in 2001. It should be noted that some pest controls, such as use of mulching, mowing, and mechanical removal of weeds, were in place before quantification of pesticide use began in 2001, so that reductions in the use of some pesticides have been greater over the long term than the data indicates. In addition, natural pest population cycles may fluctuate annually depending on climate, food availability and site conditions and so annual pest management and pesticide use may fluctuate accordingly. CMR:215:1O Page 1 of4 To evaluate the chemical toxicity of chemicals used, a tiered system is used based on a City of San Francisco study which considers (1) acute human toxicity and chronic health risks; (2) the level of training required to use the product; (3) inclusion ofa chemical on the Clean Water Act 303d list for impairment of a local water body; (4) environmental toxicity; and (5) a chemical's persistence and mobility in soil. Tier 1 chemicals are of highest concern, Tier 2 are of moderate concern, and Tier 3 are of lowest concern. To be identified as a Tier 1 chemical, a product needs to be identified as high risk with regard to only one of the five criteria above. Because of this strict criteria, most pesticides are classified as Tier 1. A primary focus of the City's IPM program is to identify and reduce the use of a subset of Tier 1 pesticides that exhibit ecotoxicity. Ecotoxicity is defined as toxicity to birds, fish, bees, and aquatic indicator species, and potential secondary or non-target poisoning from consumption of rodent baits based on product "Material Safety Data Sheets" and other resources. DISCUSSION This update summarizes the IPM program's overall program successes, specific 2009 accomplishments and the program's priorities for 2010. It should be noted that while Public WorkslEnvironmental Compliance coordinates the City's IPM efforts, City staff in Community Services (Golf, Open Space, Parks) and other divisions of Public Works (Facilities) should be largely credited with the positive results of their hard work to achieve the City's IPM goals. The attached 2009 Pest Management and Pesticide Use report includes photos and detailed information. 2009 Program Accomplishments: Total Active Ingredient, Tier 1 and Ecotoxic Pesticide Use (2001~2009) 500 ,..-------446-........... ----44-9--------....." III Total Pesticides Applied I 450 +----....... ---~ 390 _ 400 +-----.. --~ In g 350+----... Ii 300 -1-2-'1'8---;; e 250 0) .5 200 i 150 u <C 100 50 o 2001 2002 2003 355 2004 2005 Year 2000 2007 DTier 1 Pesticides • Ecotoxic Pesticides 252 2008 2009 • Both the City's total active ingredient as well as ecotoxic pesticide use decreased to historically low levels since the program's inception in 2001. Ecotoxic pesticides use fell by 43% in 2009 which is significant because ecotoxicity reduction is the primary driver of the City's pesticide reduction efforts. CMR:215:10 Page 2 of4 • The herbicide Roundup (glyphosate) use has fallen 78% and insecticide use has fallen 75% since their highest use levels in 2003; rodenticide use decreased by 54% since 2008 and wil1likely further decrease due to new non-pesticide control methods. • The Parks Department launched a pesticide-free park program that began with Sarah Wallis Park. One or two parks will be added each year alternating between north and south Palo Alto. • The golf course implemented a successful perimeter trapping program for gophers. This action significantly reduced the use of ecotoxic rodenticides. Trapping has proven to be better at controlling gopher populations than the chemical controls used in previous years and is less expensive. • Language for a new Landscape Maintenance Contract was updated to include requirements for Bay Friendly techniques (which supports IPM), the use of organic fertilizers and IPM requirements. The contract will be awarded in 2010 and an update on its impacts will be provided in the 2010 IPM Report. Program Accomplishments since 2001 • The City was awarded IPM Innovator of the Year Award in 2003 by the California Department of Pesticide Regulation. • Alternative forms of pest control have been implemented to avoid pesticide use including the use of power washing to control tussock moths, visual barriers and raptor perches to reduce ground squirrel activity, goats for open space weed control and heavy mulching to reduce weeds in parks, structural repairs to deter mice and rats, and experimenting with newer pesticides that meet the City's Tier 2 criteria. • The City was the first public agency or business to require its structural pest control operators to be Eco Wise Certified in 2007. Eco Wise Certified is a rigorous Bay Area wide program developed by pest control and water quality professionals and the National Resources Defense Council which demands rigorous less-toxic pest control services and training from pest control operators. The City's current Eco Wise Certified pest control operator, Pestec, uses no spray poisons to control ants or stinging insects, and only exclusion methods and traps to control mice and rats. The Facilities Division undertook an ambitious 18 month process to install door sweeps, and make various building repairs to block access to pests across the City. This has reduced pest control complaints and resulted in a much higher efficacy of pest controL • Piloted the use of "bee tunnels." The City's contractor, Pestec, identified a method of rerouting bees that are entering and exiting their hives away from people when human/bee interface is likely. The device protects bees and humans when a potential for interaction is likely. • Annually updated information is available to the public on the City's website showing pesticide use by location, date applied and pest managed. CMR:215:10 Page 3 of4 • The City co-funds and operates in-store programs that direct the public to least-toxic pest control products and offers periodic workshops on less-toxic pest control. 2010 Priorities for City of Palo Alto IPM Program Staff will continue to target the reduction of the City's use of ecotoxic pesticides and those that are used in large amounts. Specific task reconnnendations are to: 1. Continue to follow and encourage the success of perimeter trapping for gophers which should nearly eliminate all rodenticide use except for small amounts used for ground squirrels. 2. Explore options for ground squirrel control to further reduce ecotoxic pesticide use. 3. Investigate IPM and less-toxic product alternatives for weed control at the golf course. 4. Track the addition of pesticide-free parks in the City and the results of adding IPM language into landscape maintenance contracts. 5. Track and support as appropriate the expansion of Eco Wise Certified. ENVIRONMENTAL REVIEW This is not a project under the California Environmental Quality Act (CEQA). ATTACHMENT Attachment A: 2009 IPM Report PREPARED BY: DEPARTMENT HEAD: CITY MANAGER APPROVAL: CMR:215: ATTACHMENT A Background City of Palo Alto 2009 IPM Program Report February 8,2010 In 2001, the City of Palo Alto adopted a reduced-risk pest management policy and drafted an Integrated Pest Management (IPM) plan for the use of pesticides by City staff and contractors. The goals of the IPM program are to: • minimize water quality impacts from pesticide-related ecotoxicity; • minimize total pesticide use; and • use the least toxic pesticides when pesticides are needed. These goals are to be achieved through an annual quantification of the City's pesticide use and continual improvement of pest control strategies. Integrated pest management (IPM), also known as reduced-risk pest management, encourages long- term pest prevention and suppression through a combination of techniques including; biological controls, habitat manipulation, use of resistant plant varieties, improved landscape and building hygiene, and structural repair and pest barriers. IPM sanctions synthetic chemical pesticides only as a last resort; and only with the least toxic chemicals available. While the City of Palo Alto has used these principles for many years, additional storm water protection regulatory requirements resulted in a more formal, structured IPM program. It should be noted that non-chemical controls, were in place before quantification of pesticide use began in 2001, so that reductions in the use of some pesticides have been greater over the long term than the data indicates. To evaluate the chemical toxicity of chemicals used, a tiered system is used! (based on a City of San Francisco study) which considers (1) acute human toxicity and chronic health risks; (2) the level of training required to use the product; (3) inclusion of a chemical on the Clean Water Act 303d list for impairment of a local water body; (4) environmental toxicity; and (5) a chemical's persistence and mobility in soil. Tier 1 chemicals are of highest concern, Tier 2 are of moderate concern, and Tier 3 are oflowest concern. To be identified as a Tier 1 chemical, a product needs to be identified as high risk with regard to only one of the five criteria above. A primary focus of the City's IPM program is to identify and reduce the use of a subset of Tier 1 pesticides that exhibit ecotoxicity. Ecotoxicity, for this report, is defined as toxicity to birds, fish, bees, and aquatic indicator species, and potential secondary or non-target poisoning from consumption of rodent baits based on product MSDSs and other resources. This 2009 update summarizes the year's successes and challenges, reports on the City's 2009 pesticide use data, discusses program accomplishments and progress on the 2008 report recommendations, and makes 2010 project recommendations. 1 See Appendix I: Evaluation and Rating of Pesticide Toxicity Risk 1 Summary of 2009 Program Achievements and Pesticide Use Changes 1. The City's total active ingredient and ecotoxic pesticide use decreased to historically low levels since the program's inception in 2001. Ecotoxic pesticides use fell by 43% which is significant because ecotoxicity reduction is the primary driver of the City's pesticide reduction efforts. 2. The golf course implemented a successful perimeter trapping program for gophers. This action significantly reduced the use of ecotoxic rodenticides. Trapping has proven to be better at controlling gopher populations than the chemical controls used in previous years. 3. The Parks Department launched a pesticide-free park program that began with Sarah Wallis Park. One or two parks will be added each year as funding allows, alternating between north and south Palo Alto. 4. Language for a new Landscape Maintenance Contract was updated to include requirements for Bay Friendly techniques (which supports IPM), the use of organic fertilizers and IPM requirements. The contract will be awarded in 2010 and an update on its impacts will be provided in the 2010 lPMReport. 2 2009 Pesticide Use Information 1. Total Active Ingredient Use Trends Total active ingredient use decreased by 17 pounds (6%) in 2009 because of a reduction in use of aluminum phosphide, flutolanil and imazypyr. Figure 1: Total Pesticide Active Ingredient Use by Year (2001-2009) 500 446 449 .-. 450 11 = 400 II: ~ 350 CD & 300 .E CD 250 > :;:; u 200 c( .... 0 1: 150 ::s 100 0 E 50 c( 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year 3 350 300 j 250 ::::=. -c .m 200 "D e r 150 4» > ts 100 c( 50 0 2. Tier 1-3 Pesticide Use The City's use of Tier 1,2, and 3 pesticides for calendar years 2001 through 2009 is displayed in Figure 2. Figures 3 through 6 provide annual pesticide use, by tier, for controlling fungus, rodents, weeds, and insects, respectively. Figure 2: Tier 1, 2, and 3 Pesticide Use by Year (2001-2009) 2001 2002 2003 Tier 1 Pesticide Use 2004 2005 Year 2006 2007 2008 .Tier 1 l1Tier2 DTier 3 2009 In 2009, total Tier 1 use remained almost identical to the previous year-one pound less of Tier 1 active ingredient was use.d in 2009. A decrease of 36 pounds of aluminum phosphide and imazapyr was offset by a 43 pound increase in Mancozeb use. Tier 2 Pesticide Use Tier 2 pesticide use decreased by 15 pounds largely because of 14 pounds less flutolanil (ProS tar) applications. Fludioxonil (Medallion ), flutolanil (ProStar), and glyphosate (Roundup) comprised 92% of the Tier 2 pesticides used in 2009. The use of Roundup herbicide decreased slightly in 2009 but has reduced by 81 % from the peak level of 2003 due to heavy mulching and mechanical weed removal. Total herbicide use is at an historical low. Tier 3 Pesticide and non-chemical controls Tier 3 products were not used in 2009, but non-toxic pest control measures which are favored over Tier 3 product use continue to expand. Non-chemical controls include power washing for tree pests, mulching to reduce weeds, structural repairs to deter ants and mice, and trapping for gophers. 4 Toxicity of Pesticides Used for Key Pests A majority of the Tier 1 pesticides are used for controlling fungi, rodents and insects. Most Tier 2 pesticides are for weed control. Most Tier 3 products have been used for insect or weed control. Figure 3: Summary of pesticides used to control fungus Figure 4: Summary of pesticides used to control rodents 300.----------------------------------------------. 40 300 -+-.. _Tier 2 M .. 35 .Tier2 ilTier 1 :e 30 -@. 250 1: t 200 I!!ITier 1 II 1: 25 CD =150 .s ~ 100 :e < 50 o 400 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year Figure 5: Summary of pesticides used to control weeds 350 +--~~~~~~~~ DTier 3 -11/ S 300 +1-----• Tier 2 STier 1 -'I 250 1 200 If .-150 CD .i:t 100 ~ 50 o 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year 120 CD .e 15 CD > :e 10 < 5 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year Figure 6: Summary of pesticides used to control insects 50 I==---=---~===:::~-45r----------r~-------------------=~====~ i 40 1-------..J :35 OTier3 c :; 30 T----~~~~~~~~~ I!! 25 ,---------CD .s 20 ~ 15 ~ 10 5 o .Tier2 2001 2002 2003 2004 2005 2006 2007 200S 2009 Year 5 Top five active ingredients used by weight Figure 7 presents the five most-used pesticide active ingredients by weight for 2009. Mancozeb, aluminum phosphide and imidacloprid are Tier 1 pesticides. Flutolanil and glyphosate are Tier 2 pesticides. Figure 7: Top Five Pesticides Applied by Weight All others 17% Aluminum Phosphide (Fungicide) 4% I midacloprid (Insecticide) 4% Flutolanil (Fungicide) 7% Glyphosate (Herbicide) 25% Mancozeb (Fungicide) 43% Figure 8: Usage History for 2009 Top Five Active Ingredien1s 350~~~~~==~~~~==~~~~=-~~~~==~~~~~~~ 300 ..... fn @. 250 .! 1:$ 200 C 'B 150 C J 100 50 +.1i1I~ o +--="- Mancozeb (Fungicide) Glyphosate (Herbicide) Flutolanil (Fungicide) Active Ingredient Imidacloprid (Insecticide) Aluminum Phosphide (Fungicide) ,----'-~ 6 Table 1: 2009 Change in Top Five Active Ingredient Usage Amount Changed Percent Location Active Ingredient Tier 2008 2009 (Ibs) Change Used Mancozeb (Fungicide) 1 66 109 43 64% Golf Course Parks, PWD Operations- Glyphosate (Herbicide) 2 69 63 -6 -9% Trees Flutolanil (Fungicide) 2 32 18 -14 -44% Golf Course I midacloprid (I nsecticide) 1 8 10 2 24% Trees Aluminum Phosphide Open Space- JFun9icide) 1 36 10 -26 -72% Foothills Park Ecotoxic Pesticide Use in 2009 The primary driver ofthe City's IPM policy and plan is the avoidance of ecotoxicity in water bodies from pesticide use. Ecotoxicity, for this report, is defined as toxicity to birds, fish, bees, and aquatic indicator species, and potential secondary or non-target poisoning from consumption of rodent baits based on product MSDSs and other resources. Ecotoxic pesticides are a subset of Tier 1 pesticides as described previously in this report. A product's potential ecotoxicity does not necessarily mean an immediate threat to the environment; how, where, and when the pesticide is applied and the product's breakdown time are all factors in its ultimate environmental impact. Factors to consider: • Some product formulations use procedures that restrict product entry into the environment, such as containerized ant baits and dusts (applied in wall cracks and crevices) .. • Conversely, even small amounts of some pesticides such as non-containerized pyrethroids (e.g., bifenthrin, cyfluthrin, delta-methrin) usually associated with sprayed ant pesticides, should be targeted because of their persistent toxicity in urban creek and Bay sediments when rain or irrigation washes them from surface areas into waterways. • Pesticides not identified by the EPA as known ecotoxins are not free of risk. Proprietary inert ingredients and synergistic effects of multiple pollutants may still impact water quality and for that reason, large amounts of use of any single product are warranted for potential reduction. 7 Figure 9: Total Active Ingredient, Tier 1 and Ecotoxic Pesticide Use (2001-2009) 500~--------------------------------------------------------------~ 446 449 450+----------------------------------------------~ 400 + ................... --.-='-=----- IIITotal Pesticides Applied DTIer 1 Pesticides U; 350 +-------.D C. • Ecotoxic Pesticides 1: 300 +-0,...",------- CD :s ! 250 g 200 CD ~ u 150 c( 100 50 o 2001 2002 2003 Ecotoxic pesticide use trends 2004 2005 Year 2006 2007 2008 2009 In the first three years of Palo Alto's IPM program, the recorded use of ecotoxic and other Tier 1 active ingredients decreased because of expanded use of non-chemical and less toxic pesticide controls, a suspended use of some products while the goals of the City's IPM program were clarified, and because not all information was able to be captured from contractors. In 2004 and 2005, ecotoxic pesticide use increased because of weather conditions which resulted in the need for more fungicide use at the golf course, but then decreased from 2006 to 2008 because of less PCNB and thiophanate-methyl use and because the Tier 2 fungicides fludioxonil (Medallion) and flutolanil (Pro Star) were rotated into the suite of fungicides used throughout the year. In 2009, the golf course helped reduce the City's ecotoxic use further by switching to trapping for gophers in lieu of chemical controls. This reduced the City's ecotoxic pesticide use to 28 pounds, the lowest number in the program's history. Rodents (gophers and ground squirrels), insects and weeds now pose a similar challenge in terms of which pests currently prompt the use of ecotoxic pesticides. Rodenticides for rats and mice are essentially no longer in use because of structural repairs that Facilities Division has made, and because the City's structural pest control provider does not use bait for mice or rats. The expanded gopher trapping in 2009 was very successful and Open Space plans to use more trapping for their gopher problem in 2010. Staff anticipates that rodenticide use will continue to decrease because of these efforts. Insecticides used to control insect tree pests comprised 36% ofthe City's ecotoxic pesticide use in 2009, but these products are injected into the ground around tree roots and pose minimal threat to surrounding areas. Less than one percent of one additional ecotoxic pesticide is applied to tree foliage. Approximately 28% of the City's ecotoxic pesticides are used for weed control at the golf course. Staff will investigate alternative control measures in 2010. 8 Table 2: Locations of Ecotoxic Pesticide Use in 2009 and Potential for Reduction D' .:. Active Ingredient Percent of Ecotoxic Opportunity for Reduced Use ,-"' product used and pest Low. Action: Staffhas already significantly increased power washing to control insects and Operations-Imidacloprid 36% (10.20 Ibs) incorporates many IPM measures Trees (Merit) Insects into tree pest management Imidacloprid is injected into ground around tree roots and thus greatly minimizes potential release to surrounding environment. Moderate. Open Aluminum 36% (IO.l8Ibs) Phosphide Action: Staffwill experiment Space/foothills (Fumitoxin) Gophers with perimeter trapping in 2010 to reduce rodenticides. Mecoprop-P, Low Diacamba, Golf course carfentrazon-ethyl, 27% (7.54Ibs) Action: Weeds are difficult to 2,4-D 2-Ethylhexyl Weeds control because of high standards Ester * for golf course playability and (Speedzone) turf stress. Clopyralid, Moderate Golf course Monoethanolamine 1% (0.37) Action: Staffwill investigate Salt (Lontrel Turf Weeds alternatives for golf course weeds and Ornamental) control. Low Trees Spinosad <1%(0.02) A very small amount of this (Conserve) Insects product is used each year and not considered a priority active ingredient to target for reduction. *These four actIVe mgredlents are all used m one product. Their weIght has been totaled together for ease of review 9 Table 3: Progress on 2009 Recommendations for City of Palo Alto IPM Program Recommendation Status 1) Follow and encourage the success of perimeter Perimeter trapping has proved hugely trapping for gopher and ground squirrels. successful and has greatly reduced the gopher population at the golf course, leading to a subsequent 72% reduction in aluminum phosphide use. The golf course plans to continue using perimeter trapping and is exploring trapping options for ground squirrels which should also further reduce rodenticide use. 2) Set up initial meeting with Department ofFish A meeting was held with Open Space, and Game, Berkeley biologist and City staff to Environmental Compliance and Dr. Gilbert explore reintroduction of native weasels to City Proulx. Open Space is considering if and property. when a reintroduction could proceed and will be the lead for this action. 3) Track and support as appropriate the expansion of Eco Wise has been adopted by the Eco Wise Certified into a program that is adopted Biointegral Resource Center and has and managed by the Structural Pest Control funding for 2010. Its primary goal is to Board. make EcoWise self-supporting and to continue as a third-party [PM certifier to companies and practitioners. Outreach on Eco Wise Certified could be done in 2010, although if future program funding fails it may seek sponsorship of another organization in the following year. 4) Go out for bid for next three-year structural pest Revisions to the contract language were control contract emphasizing Eco Wise Certified made. The contract will be awarded in early requirements. 2010. 5) Advocate and publicize the use of bee tunnels. Outreach was conducted through a tour. Sharing this [PM strategy will continue periodically. 6) Explore the timing for inclusion ofIPM language Environmental Compliance staff suggested into landscape maintenance contracts. changes to the Landscape Management Contract which will be awarded in 2010. Parks staff anticipates that a majority, if not all, of the ECD suggestions will be incorporated into the new contract. Changes include: a preference to have Bay Friendly Certified landscapers, increased mulching and organic fertilizer usage. 7) Investigate the possibility of having a pesticide-The Parks Department successfully free park or demonstration site in the City. launched its first pesticide-free park at Sarah Wallis Park. The Parks Department plans to add one or two additional parks to the list of those that don't use pesticides each year as funding allows. 10 IPM Program History 2001-2009 Accurately assessing the success of the City's efforts to reduce pesticide use and use least toxic products is difficult when relying solely on yearly numerical fluctuations in pesticide use. Variations in weather patterns, natural pest population cycles, and challenges associated with quantifYing pest control efforts that use biological or mechanical controls in lieu of pesticides are all important considerations. The following are·a summary of key Palo Alto IPM accomplishments to date: 2001 • IPM policy is the first City Policy in the County to be adopted. The IPM Committee drafts the IPM Plan and Procedures. • A tiered system for analyzing City pesticide use is adopted and the first annual report on the City's pesticide use is completed. • IPM Committee votes to discontinue use of organophosphate pesticides due to water quality concerns associated with their use. • Solarizing non-native plants at Pearson- Arastradero Preserve (weeds are covered in plastic tarps and destroyed by heat). • Mechanical removal of weeds in Open Space Ponds • Bermuda grass replaces bent grass at bowling green to reduce need for pesticides. • City begins mulching in lieu of glyphosate use to control weeds (both pre and post emergent). Mulching becomes a significant contributor to the reduction of herbicide use in the City. • Herbicide spraying discontinued at schools due to Healthy Schools Act. 2002 • Completed five extensive IPM plans and related training for ants, weeds, yellowjackets gophers and ground squirrels. • Identified all leased fucilities and contractors for inclusion in the City's annual pesticide reports. 2003 A visual barrier installed at the golf course decreased ground squirrel damage by 100%. GIS view of pesticide application next to Adobe creek • City receives Department of Pesticide Regulation IPM Innovator award http://www.cdpr.ca.gov/docslipminov/awardsl03awards.htm • Piloted new methods to reduce yellow jackets in Parks and Open Space. • Piloted gopher reduction strategies at Foothills Park using trapping as a primary method. 11 • In partnership with Santa Clara County Airport and Baylands and golf course Staff implemented two new measures to reduce ground squirrel populations 2004 a. The installation of a visual barrier hung along the golf course/airport fence line to decrease the ground squirrels' ability to see predators and thus reduce activity. b. a trap design around Baylands buildings that can capture up to four ground squirrels at a time. • Created pesticide data entry system using a centralized database and simplified reporting interface. This streamlines staff reporting time and allows staff to also print mandatory monthly DPR reports. • Transferred pesticide use information in database to GIS format allowing for visual assessment of pesticide applications next to creeks and the Bay. • Use of goats in Open Space areas to control weeds proves successful (reintroduction of goats to this area is on hold due to mountain lion concerns in that area). 2005 • Scope of Services for City wide IPM contract drafted. RFP to go out in 2006. • Less toxic, botanically-based insecticides ordered for Facility staff use and related Approved Pesticide List for Facilities and staff at the Regional Water Quality Control Plant who are responsible for their own pest control • Confirmed pesticide reduction hierarchy 2006 • Hired Eco Wise Certified structural pest control company to service all City facilities (pestec) • Identified less toxic fungicide alternatives • Provided mini grants «$5,000) to golf course and Art Center for structural pest control. • Improved the City's database system. 2007 • Implemented Bco Wise Certified contractor service into City operations and consolidated related billing and service levels. • Completed 50% of recommended building repairs to reduce overall conditions that encourage pest activity. • Tested two Tier 2 fungicide alternatives. Goats are used to reduce weeds at Enid Pearson Arastradero Open Space Preserve. A bee tunnel is installed over a bee hive in a public parking lot. Dr. Gilbert Proulx provides information on gopher biology and trapping. • Held two region-wide trainings for IPM structural pest control 2008 • Medallion and Prostar, two Tier 2 fungicides, were incorporated into ongoing use at the golf course. • A gopher and ground squirrel workshop was held inspiring staff to experiment with the use of perimeter trapping to control these animals. • The City's contractor, Pestec, identified a method of rerouting bees that are entering and exiting their hives away from people when humanlbee interface is likely. Staff developed a public education piece and internal protocol for responding to bee complaints. • Completed structural building repairs identified in 2007 needed for ant and rat control. • Public Works Trees incorporates power washing to remove tussock moths from trees in City parks. 2009 • Perimeter trapping proved hugely successful and reduced aluminum phosphide use by 72%. • The Parks Department launched its fIrst pesticide-free park at Sarah Wallis Park. • IPM language was added to parks maintenance contract. • Palo Alto ecotoxic and total active ingredient pesticide use the lowest in program history. 2010 Recommendations for City of Palo Alto IPM Program Based on analysis of 2009 data Staff recommends that the City continue to target the reduction of ecotoxic pesticides and those that are used in large amounts. These recommendations factor in reduced funding and staff resources from previous years' budget reductions. Specific task recommendations are to: 1. Continue to follow and encourage the success of perimeter trapping for gophers. 2. Explore options for ground squirrel control to further reduce ecotoxic pesticide use. 3. Track and support as appropriate the expansion of Eco Wise Certified. 4. Advocate and publicize the use of bee tunnels. 5. Track the addition of pesticide-free parks in the City and the results of adding IPM language into landscape maintenance contracts. 6. Investigate IPM and less-toxic product alternatives for weed control at the golf course. 13 Appendix I: Evaluation and Rating of Pesticide Toxicity Risk 1. Information sources for pesticide evaluation Information used to evaluate hazards are obtained from the sources listed in Table 1 below: Table 1-Pesticide Information Sources Information Product Literature Product MSDS Product Label Other Manufacturers' Data Registration Documents Ingredient Data Specific Product Risk Ratings Source Crop Data Management Systems Website Manufacturers' Websites Calif. DPR Website EPA Reregistration Eligibility Decisions (R.E.D.) Website EPA & Other Websites Toxicology Literature San Francisco & Seattle IPM Websites 2. Defining pesticide risks. Three factors defme the overall risk: a) The level of hazard inherent in the chemicaL Some pesticide ingredients can cause immediate, acute injury (e.g., eye irritation), while others may take years for their toxic effects to be seen (e.g., cancer). b) The level of exposure that the user, near-by person, or the environment might incur. For example, consider a rat poison contained in a tamper-resistant trap, versus that same rat poison in pellet form spread on the ground next to a building foundation. c) The susceptibility of the exposed person or animal to the hazard. For example, people with asthma may be more susceptible to air-born chemicals. Also, children, the elderly, or people recovering from an illness may each have a somewhat lesser tolerance to chemical exposures than would an average healthy adult. 3. Qualifying the criteria used to define pesticide risks There are several dozen chemical hazards and exposure issues that can be used to evaluate the overall risk of individual pesticides. Examples include: toxicity to humans and animals; potential to cause cancer; use in a sprayer versus sprinkling as a powder; and flammability. The US Environmental Protection Agency (EPA) and California Department of Pesticide Regulation (DPR) routinely evaluate the top 20 or so of these criteria when making decisions 14 about registering pesticide products. The Cities of San Francisco and Seattle use similar criteria as part of their IPM programs. RWQCP staff primarily use the San Francisco criteria list in reviewing pesticides used in Palo Alto. The risk evaluation criteria are described below: These descriptions are adapted from extensive reports that are available on the San Francisco and Seattle IPM websites. a) EPA Hazard Class -"Signal Words" are required by US EPA onpesticide labels to indicate the overall hazard category for a product, based on acutely toxic effects. Listed from most to least hazardous, the signal words are: I-Danger, II-Warning, III-Caution, or IV-Caution. It is preferable to use pesticides labeled as "Caution." b) Use Restricted to Certified Applicators -Some products evaporate easily, are easily absorbed through skin, or have other characteristics that make them a high risk to untrained users. The EPA designates in its registration decisions which products are to be used only by a certified applicator. It is preferable to use products that have no use restrictions. c) Chronic Toxicity -Longer term tests on active pesticide ingredients indicate their likelihood of causing cancer, reproductive or developmental harm, or disruption of hormone systems. There is uncertainty in evaluating animal tests of these types, and how to apply the results to humans. Therefore, the results will be stated as probabilities, e.g., iprodione is a "probable human carcinogen," or iprodione is "known to the State of California to cause cancer and reproductive harm." It is preferable to avoid pesticide products that have a possibility of causing cancer, reproductive or developmental harm, or disrupting hormone systems. d) Contains Clean Water Act (303d) Listed Chemicals -Copper, chlorpyrifos, and diazinon are three pesticide ingredients managed under the Clean Water Act. The City has a stated policy of not using products with diazinon or chlorpyrifos. e) Ecotoxicity (Animal Toxicity) -Laboratory tests on birds, fish, bees, and other wildlife indicate how these animals may react to unintended pesticide exposures (Le., where they are not the pest being dealt with). As described above for acute oral toxicity, the test results are given in terms of the dose that kills half of a group of birds, fish, or other test animals. It is preferable to use pesticides with the following toxicity levels: • Bird toxicity> 2,000 mglkg • Fish toxicity> 100 mg/l • Bee toxicity> 11 Ilg per bee f) It is preferable to avoid products that are labeled as "highly" or "extremely" toxic to these and other animals. Brodifacoum, Bromadionone and Bromethalin are considered specific high-risk animal toxins, particularly due to the possibility of secondary poisonings. In addition there are concerns about two rodenticides, chlorphacino.ne and diphacinone, which although less toxic, also present primary and secondary risks. g) Persistence and mobility in soil-Many pesticides biodegrade readily, and tend to remain in the area where they are placed. Other products persist in the environment, and tend to move through soil into the groundwater or a near-by stream. It is preferable to use pesticides with the following characteristics: 15 • Persistence in soil < 30-day half-life • Ability to move through soil == "Low" • Not labeled as a groundwater contamination hazard 4. Rating Pesticide Toxicity The City of Palo Alto uses the San Francisco strategy of placing pesticides into groups, or tiers, according to their relative risks. Table 2 outlines the four tiers that are used, and the criteria that place a product into a specific tier. Table 2. Pesticide "Tier Definition" System All pesticide products are classified into one of four tiers based on each product's hazards: Tier 1: Highest concern Tier 2: Moderate concern Tier 3: Lowest concern Tier 4: Insufficient information Tier 1: A product is Tier 1 if anyone of the following are true: • Product is a restricted-use pesticide • Product contains known, likely, or probable carcinogens, reproductive toxicants (CA Prop 65 list or other published test) or endocrine disruptors as active ingredients (Illinois EPA list, or other published test results) • Product contains diazinon, chlorpyrifos, or copper, identified as important causes of impaired waterbodies in California Regions 2 and 5 under section 303(D) of the Clean Water Act • Product labeled as highly toxic or extremely toxic to birds, aquatic species, bees, or wildlife. • Product contains the rodenticides brodifacoum, bromethalin, or bromadionone • Product contains active ingredients with soil half-lives greater than 100 days (not applicable to products used only indoors or to products used only in bait stations) • Product contains active ingredients with mobility ratings high or very high or with specific label warnings about groundwater hazard. (not applicable to products used only indoors or to products used only in bait stations) Tier 2: All products not specifically assigned to Tier 1 or Tier 3. Tier 3: A product is placed into Tier 3 if all of the following are true: 16 • Product contains no possible or probable carcinogens • Product contains no reproductive/developmental toxicants (CA Prop 65 list) • Product contains no ingredients listed by Illinois EPA as known, probable, or suspect endocrine disrupters • Active ingredient has soil half-life of 30 days or less (exception for minerals • Active ingredient has extremely low or very low mobility in soils. • Product is labeled as non-toxic to fish, birds, bees, wildlife, or domestic animals. Tier 4: Not enough information. Product registration or label not found, or key data not located for active ingredient (e.g., half-life, soil binding, ecotoxicity, etc.) 17 TO: HONORABLE CITY COUNCIL (!) FROM: CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE: APRIL 19,2010 ClVIR:216:10 REPORT TYPE: INFORMATION SUBJECT: Staff Update on Zero Waste Programs 2010 BACKGROUND This is an infonnation report on ongoing zero waste initiatives and projects. The following report updates infonnation brought to Council on April 27, 2009 (CMR:217:09). DISCUSSION NEW CONTRACT WITH GREENW ASTE OF PALO ALTO GreenWaste of Palo Alto (GreenWaste) successfully transitioned to become the City's new hauler starting on July 1, 2009. In the first seven months of service, Green W aste is on its way to fulfilling many of its first-year contract requirements. The following is a summary of GreenWaste's successes since July 2009: • Green Waste has implemented the zero waste diversion programs required in their agreement with the City and in the 2007 Council-approved Zero Waste Operational Plan, including the following new services: o Collection and processing of organic materials (food waste) from the commercial sector; o Expanding the single stream materials accepted in the curbside recycling programs; o Expanding Clean-up Day collection for reuse and recycling; o Increasing construction and demolition (C&D) recycling; o Enhancing commercial recycling, including increased container options to customers and increased collection frequency. As a result of implementing these services, GreenWaste is on track to meet the zero waste collection goals for this year, having collected neady two-thirds of the first-year recyclables and compostables tonnages required in its contract. The table below shows the tonnages collected so far this year. Compostables Recyclables C&D material CMR:216:1O Goal 9,000 tons 16,250 tons N/A Collected to Date 6,580 tons 11,363 tons 4,254 tons % of Goal 73% 70% N/A Page 1 of7 • Green Waste transitioned the community to curbside collection of garbage as the standard service. Residents were provided the option to subscribe to back yard/side yard collection for an additional monthly fee. Currently, there are approximately 1,114 subscriptions for back/side yard collection, which is equal to less than 6 percent of the residential customers. Residents with physical limitations that meet the terms and conditions of the physical limitations program are eligible to receive back/side yard collection service for garbage, recyclable materials and yard trimmings at no additional charge. Currently there are 144 residents receiving this service. • In the first six months of the agreement, the number of telephone calls to GreenWaste decreased from 6,191 in July 2009 to 1,979 per month in January 2010, with the on-hold time at the local office now averaging 38 seconds. This is almost one minute less than their contractual requirement of 90 seconds. • The Green Waste agreement emphasizes the continuance of high quality, consistent, reliable and courteous services and as a result, if performance standards are not met, specific liquidated damages can be assessed in the categories of collection reliability, collection quality, customer responsiveness, reporting, processing, and miscellaneous. GreenWaste has been able to continue to consistently provide the required service and meet the contractual requirements, and therefore no liquidated damages have been assessed. Ninety-nine percent of the previous PASCO drivers have continued emploYIntmt with Green Waste • As part of the agreement, Green Waste was required to integrate with the City's new SAP billing system by providing a data management system capable of supporting SAP. Green W aste successfully worked with the City to develop and implement an electronic synchronization interface that communicates between their customer service database and the City's billing system. ZERO WASTE A'h CITY FACILITIES City facilities are the fourth largest generator of waste in Palo Alto -over 4,000 tons per year. Public Works staff is in the process of rolling out compostables collection services to City facilities in order to increase waste diversion efforts of City operations. After the roll-out, all City facilities will have a three-sort recycling system, with separate containers for recyclables, compostables, and garbage. This will result in a new collection process, where janitors will collect only recyclables at each work station and employees will be responsible for taking compostables and garbage to centralized collection points. This system has been implemented at the Fire Stations, Cubberley Community Center and the Water Quality Control Plant. The three-sort recycling system began implementation at City Hall on March 29, 2010. After just two weeks, garbage services at City Hall have been reduced by 50 percent and recyclables collection has increased from two to three times per week. Staff will roll out the zero waste sort system at remaining City facilities over the next several months. CMR:216:00 Page 2 of7 PALO ALTO SCHOOL DISTRICT ZERO WASTE PROGRAMS The Palo Alto School District is one of the first districts in the region to adopt an integrated recycling, composting, and garbage collection program for all district schools. At this time, 12 of the 17 district schools have worked with the City's Zero Waste staff to roll out the new program. The District plans to roll out the new program to all of its schools by the end of spring semester 2010. Blue recycling and green composting cans are being grouped together with garbage cans and strategically placed around school campuses. Terman Middle School, E1 Carmelo Elementary School and Gideon Hausner Jewish Day School participated in a pilot program last fall to help work through the details of a district-wide roll out. Juana Briones Elementary School was the first school to launch the official roll-out of the new program on January 25,2010. The new three-sort collection program has been a community effort requiring coordination between the individual schools, the District, GreenWaste, Peninsula Sanitary Service (the hauler that services the two schools located on Stanford), the Sustainable Schools Committee and the City of Palo Alto. The individual schools, the District and the City split the cost for the new collection cans. School Green Teams, comprised of staff, students and parents, are leading the educational efforts, publishing information in their eNews and monthly newsletters, creating skits, setting up teams of bin monitors to help teach the school community how to sort their lunch waste, placing stickers on the new cans, and putting up posters around campus. CERTIFIED GREEN BUSINESSES Zero Waste staff, along with other City programs, continues to promote and provide support to the Association of Bay Area Governments (ABAG) Green Business Program. The Green Business Program is a successful partnership of environmental agencies and utilities that assists, recognizes and promotes businesses that volunteer to operate in a more environmentally responsible way. To be certified "green," participants must be in compliance with all regulations and meet program standards for conserving resources, preventing pollution and minimizing waste. The program offers motivated businesses an easy-to-use framework for improving environmental performance. Since the county-wide roll out of this program three years ago, a total of 165 Palo Alto businesses have enrolled in the program, and 76 are currently certified as Green Businesses. 16 percent of all businesses certified in Santa Clara County are located in Palo Alto. In total numbers, the City of Palo Alto has two to three times more certified green businesses than any other city in the county, except for San Jose. In FY 2009-10, 24 businesses in Palo Alto enrolled in the program, and 20 businesses have achieved certification so far. Eleven of this fiscal year's certified green businesses are clients of the non-profit organization Wave One. Attachment A contains a list of the Palo Alto businesses that have achieved certification this year. ZERO WASTE WEBSITE Zero Waste's mission is to help the community reach its aggressive Zero Waste goal-virtually no waste to landfills -by 2021. Accomplishing this will require innovative, comprehensive and multi-dimensional measures to educate and motivate our residents and businesses. Zero Waste needs an interactive and engaging website to provide a forum for facilitating community connections and self-learning. CMR:216:00 Page 3 of7 Zero Waste is currently working to create such a website. The site structure has been drafted and is going through the review process. Next steps are to prioritize pages for development, create a time line and then start the actual build out. Appreciating the need for these tools as soon as possible, a number of them already have been created and are in use as the larger website restructuring is in process. These tools include the "How Do You Zero?" video blog series, the Zero Waste system diagram, the schools-focused "CAN-TASTIC" Sorting Game, and the launch page at www.zerowastepaloalto.org to help facilitate the use of these tools. CITYWIDE GARAGE SALE Over 370 garage sales were held as part of the 10th Citywide Garage Sale on Saturday, June 6, 2009, in partnership with the Palo Alto Weekly. The Garage Sale is designed to build community, serve residents and non-profit agencies, and divert materials from the landfill. Additionally, its goal is to increase awareness of reuse and the community's Zero Waste goals. In an effort to reduce waste and increase community engagement, this year's sale included several new features: • The Garage Sale Kit was offered electronically to participants to reduce paper waste. Hard copies were printed only for participants that requested them. • Participants registered online instead of by hard copy and the electronic information was transferred into the GIS mapping software, reducing the amount of paper generated for sign ups. • Surveys were electronic -reducing waste and increasing the response rate. • Included in the citywide event was a game for children 12 and under called "Captain Greenbeard's Treasure Hunt. "The treasure hunt was added to encourage families to shop the sales, promote shopping in the further comers of the community (sales off main roads usually have fewer shoppers), build excitement about the sale and foster partnerships with community residents and businesses. Prizes for children completing the treasure hunt were provided by sponsors Rick's Ice Cream and Red Mango. • Philz Coffee and Coupa Cafe were also event sponsors. They offered coupons for free hot bev~rages to shoppers bringing their own mug. • Staff developed press releases to social media outlets. A kit was developed featuring the official press release, a logo graphic and another press release in four ready-to-use formats written to appeal to our target interest groups: those interested in green living, DIY projects, vintage items, and families. The event was pitched as a fun, wallet-friendly, family-oriented event that would help the environment. Survey Results A survey was sent to the garage sale participants -the sellers, the treasure hunt locations and the sponsors. The surveys show that from previous years: • The number of sellers remained approximately the same -372 sellers in 2009 vs. 360 in 2007 • The number of buyers remained the same -50 buyers per sale in 2009 vs. between 35 to 60 buyers per sale in 2007 • The survey response rate more than doubled -43 percent in 2009 vs. 17. 8 percent for 2007 CMR:216:00 Page 4 of7 CMR:216:00 Page 5 of 7  The amount of items sold per household increased – 50 percent in 2009 vs. 30 percent in 2007  The number of households reporting land filling their leftover items halved – 8. 3 percent in 2009 vs. 17. 2 percent in 2007 BAY-FRIENDLY LANDSCAPING AND GARDENING COALITION The Bay-Friendly Landscaping and Gardening Coalition is a membership organization comprising individuals from public agencies, businesses and non-profit organizations from all of the nine bay area counties. Since January 2008, the City has been a charter signatory of the Bay- Friendly Coalition. Bay-Friendly landscaping and gardening is a whole systems approach to the design, construction and maintenance of landscape that works in harmony with the natural conditions of the San Francisco Bay watershed. It is based on seven principles for sustainable landscaping: Landscape locally; landscape for less to the landfill; nurture the soil; conserve water; conserve energy; protect air and water quality; and create wildlife habitat. Bay-Friendly practices foster soil health and conserve water and other valuable resources while reducing waste and preventing pollution. The Bay-Friendly Regional Coalition builds on work done previously by StopWaste.Org. The Bay-Friendly program provides resources such as trainings, workshops and publications for the both public and private sector landscape professionals and the home gardener. The Bay-Friendly educational materials were developed with guidance from public and private landscape architects and designers, contractors, representatives from Alameda County public agencies and staff of StopWaste.Org. The Coalition is now working to provide these resources regionally. Staff is continuing its efforts to increase Bay-Friendly participation throughout Santa Clara County. The County Home Composting Program has taken the lead on teaching Bay-Friendly Gardening workshops. These workshops are replacing the home composting workshops taught by Master Composters. Palo Alto will have seven Bay-Friendly Gardening workshops this year: three “Bay-Friendly Basics,” two “Gardening from the Ground Up,” one “Gardening to Manage Pests Naturally,” and one “Let Worms Eat Your Garbage”. Participants can sign up for a workshop on the City’s website. Staff is working with the Bay-Friendly Coalition and Santa Clara County stakeholders to hold a 2011 Bay-Friendly Garden Tour in Santa Clara County. Staff is also continuing its efforts to build the regional coalition. Last year the coalition was incorporated as a nonprofit. Staff assists the coalition in building its membership, investigating funding sources and creating an implementation plan for Bay-Friendly tools (e.g., workshops, tours, certifications, and ordinances) to be used by coalition members. SINGLE USE BAG ORDINANCE Palo Alto is one of a very small number of cities in the United States to have successfully implemented single use bag restrictions. The City of Palo Alto adopted an ordinance requiring the elimination of single use plastic checkout bags at large grocery stores on September 18, 2009. All affected stores complied by the deadline, with Whole Foods, Country Sun, and Piazza’s eliminating the plastic bags voluntarily ahead of schedule. The goal is to convert from all types of single use bags to reusable bags. Plastic bags are especially harmful to the environment when littered because they breakdown very slowly and endanger wildlife. Recycling plastic bags is very difficult and less than 5 percent are currently recycled. However, just switching to paper is not desirable because, like plastic bags, virgin paper bags consume energy and resources in the manufacturing process. At the time of the ordinance adoption, Council requested that staff return with a proposal for a fee system on paper bags to help avoid conversion from plastic to paper bag use. On November 16, 2009 (CMR:401 :09), staff updated Council on the status of a regional review of fee options and our joint efforts with other local governments working on a single use bag Environmental Impact Report (EIR). Staff continues to track the City of San Jose's EIR process, and expects the draft report to be released this spring. By late summer 2010, staff will return to Council with recommendations on a fee system for paper bags and on an expansion of the program beyond large grocery stores. BRING YOUR OWN BAG! CAMPAIGN Since 2008, the City has been promoting the Bring Your Own Bag (BYOBag!) campaign, a multi-year effort to increase the use of reusable shopping bags instead of single-use plastic or paper carryout bags at stores in Palo Alto. Reusable bags reduce waste and litter in the community and have a positive impact beyond Palo Alto. In 2008, staff began surveying reusable bag use at grocery stores to gauge the effectiveness of the BYOBag! Campaign. The February 2008 baseline survey showed Palo Alto shoppers chose reusable bags less than 10 percent of the time. The goal of the initial campaign, conducted from April through December 2008, was to increase reusable shopping bag use to 30 percent by December 2008. When the survey was repeated in February 2009, reusable bag use at large grocery stores had increased from 9 percent to 19 percent. Also notable was that shoppers choosing the option of "no bag" increased from 8 percent to 16 percent. In the February 2010 survey, a slight increase in the use of reusable bags occurred at grocery stores, up to 21 percent, and the "no bag" option increased from 16 to 20 percent. However, most shoppers (59 percent) continued to opt for the single use alternative, now limited to the paper bag since the adoption of the single use bag ordinance in September 2009. Interestingly, at pharmacies (not subject to the bag ordinance) while the use of reusable bags is only 6 percent, the "no bag" option has increased to 41 percent in 2010. Palo Alto is also collaborating with other Bay Area cities on public education efforts to increase reusable bag use through the Bay Area Regional Outreach Coalition (BayROC). More information is located at www.igotmybag.org. EXTENDED PRODUCER RESPONSIBLITY Extended Producer Responsibility (EPR) is a key tool delineated in the City'S Zero Waste Operational Plan to help the City reach its goals by 2021. Palo Alto cannot achieve zero waste without EPR -the May 2006 waste composition study showed that, due to its composition, greater than 25 percent of the waste disposed by the community cannot be diverted from landfills through recycling or composting. EPR provides a tool to address these hard-to-manage CMR:216:00 Page 6 of7 materials. On December 14, 2009, Council approved an EPR policy for the City, and adopted an EPR Resolution to support state and national producer responsibility actions (CMR:456:09). Palo Alto is one of the few cities in the state, and in the nation, to have adopted both an EPR policy and an EPR resolution. The EPR framework policy is designed to create incentives for manufacturers and suppliers to reduce waste and pollutant releases in Palo Alto. Specific products and implementation details will be added to the framework over time as they are developed. The first specific product addressed by the policy is foam plastic packaging (commonly referred to as Styrofoam). The EPR Resolution states Palo Alto's support of state and national efforts to implement the EPR concept on the widest geographic scale possible, where implementation will be most efficient. . RESOURCE IMP ACT Resources for the Zero Waste Program are included in the Refuse Fund Operating Budget. POLICY IMPLICATIONS All of the above programs are consistent with the City's Sustainability Policy, the Climate Protection Plan, and the Zero Waste Operational Plan. ENVIRONMENTAL REVIEW This report is informational in nature and does not constitute a pr~ject under the California Environmental Quality Act (CEQA). ATTACHMENTS Attachment A: 2010 List of New Certified Green Businesses PREPARED BY: DEPARTMENT HEAD: Ii 1 flk----- GLENN S. ROBERTS Directo of Public W CITY MANAGER APPROVAL: CMR:216:00 Page 7 of7 ATTACHMENT A City of Palo Alto FY 2009-10 (to date) ABAG Certified Green Businesses Organization Certified Date Premier Pro erties* 7/20/2009 . Sustaina 7/21/2009 Major, Lindsay & Africa 7/23/2009 Stoecker a 7/23/2009 I>r. 1lra~!Jeclerc* 9/9/2009 I Cody Anderson Wasney Architects, Inc. 9/22/2009 1lotal Quality Maintenance 10/19/2009 Martin Thomas Wealth Mana~ement* 10/29/2009 1lhe North Face* 10/29/2009 Sheraton Palo Alto Hotel 11/5/2009 Westin Palo Alto Hotel 11/5/2009 Straits Cafe 11/30/2009 The Private Bank* 11/30/2009 Wu Orthodontics 2/26/2010 • Kennedy/Jenks Consultants 3/24/2010 Center for Continuing Study of the California Economy* 3/30/2010 Webst~r Financial Corp.* 4/5/2010 PaperWhirl* 4/7/2010 !Jetter Perfect* 4/8/2010 The Princeton Review* 4/8/2010 * Client ofWA VE ONE TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DATE: APRIL 19,2010 REPORT TYPE: CONSENT DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT CMR: 190:10 SUBJECT: Preliminary Approval of the Report of the Advisory Board for Fiscal Year 2011 in Connection with the Palo Alto Downtown Business Improvement District and Adoption of Resolution Declaring its Intention to Levy an Assessment Against Businesses within the Downtown Palo Alto Business Improvement District for Fiscal Year 2011 and Setting a Time and Place for a Public Hearing on May 17, at 7:00 PM or Thereafter, in the City Council Chambers EXECUTIVE SUMMARY Since the Business Improvement District (BID) inception in 2004, a number of activities consistent with State BID law have been accomplished by the Palo Alto Downtown Business and Professional Association (P ADBP A), the entity with which the City contracts to provide services to the 740+ businesses assessed in the Downtown. These include addressing the two main issues facing downtown businesses: cleanliness and homeless issues that affect downtown business operations, as well as participation in zoning and other matters affecting downtown businesses. Assessments for BID businesses are based on the size, type and location of the business. Assessments range from $50 to $500 annually for individually owned professional businesses to banks. The P ADBP A has monthly open meetings governed by the Brown Act which any business or individual can attend. This Council action would include preliminary approval of the BID's annual report and setting a public hearing to determine any objections to assessments. RECOMMENDATION Staff recommends that the City Council: (a) Preliminarily approve the BID Advisory Board's 2011 Budget Report for the Business Improvement District (BID) (Attachment 1); and (b) Adopt a Resolution of Intention to Levy Assessments in the Palo Alto Downtown Business Improvement District for fiscal year 2011, setting a date and time for the public hearing on the levy of the proposed assessments for May 17,2010, at 7:00 p.m. or thereafter, in the City Council Chambers (Attachment 3). CMR: 190:10 Page 1 of4 BACKGROUND The Palo Alto Downtown Business Improvement District (BID) was established by the City Council in 2004 pursuant to the California Parking and Business Improvement Area Law to promote the economic revitalization and physical maintenance of the Palo Alto Downtown business district. The Council appointed the Board of Directors of the Palo Alto Downtown Business and Professional Association, a non-profit corporation, as the Advisory Board for the BID. The Board's purpose is to advise the Council on the method and basis for levy of assessments in the BID and the expenditure of revenues derived from the assessments. Pursuant to BID law, the Advisory Board must annually submit to the Council a report that proposes a budget for the upcoming fiscal year for the BID. The report must: 1) propose any boundary changes in the BID; 2) list the improvements and activities to be provided in the fiscal year; 3) estimate the cost to provide the improvements and activities; 4) set forth the method and basis for levy of assessments; 5) identify surplus or deficit revenues carried over from the prior ' fiscal year; and 6) identify amounts of contributions from sources other than assessments. The Council must then: 1) review the report and preliminarily approve it as proposed or as changed by the Council; 2) adopt a resolution of intention to levy the assessments for the upcoming fiscal year; and 3) set a date and time for the public hearing on the levy of assessments in the BID. Absent a majority protest at the public hearing on May 17,2010, at the conclusion of the public hearing, the Council may adopt a resolution confirming the report for Fiscal Year 2011 as filed or as modified by the Council. The adoption of the resolution constitutes the levying of the BID assessments for fiscal year 2011. DISCUSSION The Advisory Board has prepared a report (Attachment 1) for the Council's consideration which includes the proposed budget for the Palo Alto Downtown BID for fiscal year 2011. As required by BID law, the report has been filed with the City Clerk and contains a list of the improvements, activities, and associated costs proposed in the BID for fiscal year 2011. The Advisory Board has recommended no change in the BID boundaries or the method and basis for levying assessments. Many of the activities and improvements are an extension of those initiated last year or In prIor years. For example, in the past year the BID participated in the renovation of Lytton Plaza, a' public/private partnership that reinvigorated the Plaza, addressed loitering and other issues and provided a lovely gateway into the City's downtown. In addition, in partnership with the City, the BID leadership developed a "master encroachment permit" effort, that will provide a master ARB submission for downtown tables and chairs and individual (more affordable) encroachment permits for downtown restaurants. A map of the BID is attached (Attachment 2). The proposed assessments in the BID for fiscal year 2011 are the same as the assessments in fiscal year 2009-10. No increases are proposed. CMR: 190:10 Page 2 of4 The budget report for fiscal year 2011 was reviewed and approved by the Palo Alto Downtown Business and Professional Association at its board meeting on March 17, 2010, (Attachment 1). RESOURCE IMPACT Adoption of the proposed BID budget does not directly impact City revenue. BID assessments are restricted for use exclusively by the BID. It is anticipated that a healthy BID will encourage growth of the retail community and consequently result in additional sales tax revenue for the City. Some staff effort is expended annually to administer the collection of the BID. Staff will continue to monitor staff administrative time devoted to the collection of BID assessments to assure that City costs do not exceed estimates for these services. The cost and collection of BID assessments past 60 days is borne by the BID. The Attorney's Office will continue to provide legal oversight to the BID during the annual reauthorization process. Administrative Services staff provides assistance in the collection of BID assessments. The Economic Development Manager will continue to provide oversight to the BID and will prepare the annual reauthorization. ENVIRONMENTAL REVIEW This action by the City Council does not meet the definition of a project under Section 21065 of the California Environmental Quality Act, and therefore no environmental assessment is necessary. ATTACHMENTS Attachment 1: Attachment 2: Attachment 3: CMR: 190:10 Report of the Advisory Board with Regard to the Reauthorization of the Downtown Palo Alto Business Improvement District Annual Report for Fiscal Year 2011. Downtown Palo Alto Business Improvement District Map Resolution of the City Council of the City of Palo Alto Declaring its Intention to Levy an Assessment Against Businesses Within the Downtown Palo Alto Business Improvement District for Fiscal year 2010-11 and Setting a Time and Place for hearing Objections Thereto Page 3 of4 PREPARED BY: Sl/SANLBARNES ( Economic Development Manager DEPARTMENT HEAD: ~ W~ CURTIS ILLIAMS, DIrector Planning and Community Environment CITY MANAGER APPROVAL: CMR: 190:10 Page 4 of4 BID MANAGEMENT www.paloattodowntown.com Business Improvement District Annual Report 2010-2011 Approved by the Advisory Board of Directors Palo Alto Downtown Business & Professional Association April 01 , 2010 > ~ s;: (1 ::r: ~ ~ ~ ~ Introduction This report from the Advisory Board of the Palo Alto Downtown Business & Professional Association ("P Ad") was prepared for City Council to review for the annual reauthorization of the Downtown Palo Alto Business Improvement District ("BID") pursuant to Section 36533 of the Parking and Business Improvement Law of 1989 (Section 365'00 and following of the California Streets and Highways code) (the "Law"). This report is for the proposed fiscal year for the BID commencing July 1,2010 and ending June 30, 2011. ("Fiscal Year 2010-11"). As required by the Law, this report contains the following information: I. Any proposed changes in BID boundaries and benefit zones within the BID; II. The improvements and activities to be provided for Fiscal Year 2010-11 ; III. An estimate of the cost of providing the improvements and the activities for Fiscal Year 2010-11; IV. The method and basis of levying the assessment in sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for Fiscal Year 2010-11 ; V. The amount of any surplus or deficit revenues to be carried over from a previous fiscal year; VI. The amount of any contributions to be made from sources other than assessments levied pursuant to the Law. Submitted by Anne E. Senti-Willis, Chair, on behalf of the Advisory Board ("Advisory Board") of the Palo Alto Downtown Business & Professional Association ("P Ad"). The Advisory Board approved this report on April 01, 2010. Received on file in the Office of the City Clerk of the City of Palo Alto on April 01,2010. 1 Section I BID Boundaries and Benefit Zones There have been no changes in the BID boundaries or benefit zones within the BID and no changes are proposed. The current boundaries are depicted on the map below. Palo Alto Do\vuto\vn Business IOlproveIllenl [)istrict 2 Section II Improvements and Activities Completed in 2009-10 Marketing and Events Programs -PAd maintained a comprehensive website that is user friendly for members and consumers. It includes current activities, a comprehensive business directory, maps for parking and directions, and other links. (www.paloaltodowntown.com). We track nearly 4200 unique hits on the site per month. P Ad offered members the opportunity to advertise their businesses by posting a link to their website on the "Home" page for a fee. We have updated the "What's Happening" page daily with specific information including merchant sales, specials and promotions. PAd updates the database of all downtown businesses continuously for display and use via the website. -On the website, PAd has cross referenced & categorized comprehensive business sectors. -Frequently, PAd has sent email blasts to notify members of pertinent on-goings in the downtown, such as upcoming events, street closures, police alerts and other activities. Events -The Dine Downtown event was launched in August '05 and continued successfully on a bi-annul basis in August 2009, and January 2010. - P Ad participated in a collaboration and partnership to support events with the City of Palo Alto, Stanford University and the Chamber of Commerce. P Ad remains an active partner and contributing participant in the promotion of Visitorship to Palo Alto. -Advocated for and saved the Community Farmshop by securing funding and participation from the BID members. The weekly market is held at the renovated Lytton Plaza on Wednesday s from 3:30 -6:30 pm. -The PAd secured management of talent and entertainment for Friday night jam sessions at Lytton Plaza. - P Ad held breakfast Roundtable discussions, hosted by the Garden Court Hotel. The Fall presentation was on identity theft. Guest speakers included P APD special agents James Reifschneider and Jason Jenkins. The Spring discussion addressed the issue of an improved consetual plan for the downtown district, moderated by Curtis Williams, the Director of Planning for the City of Palo Alto. PAd intends to hold these roundtable community/town hall discussions twice a year to encourage member attendance and participation on topics of importance within the BID. Downtown Streets The Downtown Streets Team ("DST") was founded in May 2005 by the PAd, after its initial survey to business owners. The survey was sent to all BID constituents to better understand how PAd could serve its members. Overwhelmingly, homelessness and cleanliness of the downtown area were the issue of most concern. 3 The program participants clean the streets of downtown in exchange for food and shelter. DST is a platform for many formerly homeless to find hobs and housing. This highly successful program was spun off as a separate, self-supporting non-profit entity in 2006 .. PAd continued to support the program through joint promotions and fund raising efforts, as well as a financial pledge of$5,000 to help ensure its continued success. To further the ongoing partnership and continuity, the President of the DST, Eileen Richardson, serves as a liaison to the PAd. DST has built successful working relationships with Innvision, The Opportunity Center, Catholic Charities, Alliance for Community Care, City Council, Palo Alto Police Department ("P APD") , Palo Alto City Management, The Emergency Housing consortium ("EHC"), and now holds a place on the Steering Committee for the County's 10-year plan to end homelessness. The program has received funding and is expecting continued funding from the City of Palo Alto, in both HSRAP and contracts for cleaning, EHC and Innvision contracts, foundation grants and local businesses and residents. PAd will increase the financial contribution to $10,000 in Fiscal Year 2010-11 to the DST, with the provision that said funds will be directed towards increased cleanliness and security within the district. Environmental/Marketing -Worked with the City and district members to adopt and implement a master outdoor seating plan. P Ad negotiated a one time fee reduction of the required encroachment fees for outdoor seating and displays. With assistance from Bellomo Architects, P Ad has further secured a blanket ARB permit for such outdoor seating in order to provide a maintained, uniform look and facilitate compliance with City ordinance and state requirements for outdoor dining. PAd worked closely with the P APD to address the issue of panhandling and homelessness in the downtown. Further efforts were made to address the issue of security in the district. The P APD ran a month long pilot program with increased patrol and security in the downtown. Key areas were identified and the P Ad worked with the City in creating signage and installation of way finders in certain areas of the BID. The P Ad supported the introduction of K wikcarts within the downtown district, and worked with various stakeholders to secure private parking for the carts. PAd initiated the resurrection of plans for the upgrading and renovation of Lytton Plaza through a private/public partnership. PAd, through its President Sherry Bijan, served as a me~ber of the Friends of Lytton Plaza Park. Through a collaborative partnership between the City of Palo Alto and the Friends of Lytton Plaza Park, the renovation project including new landscaping, a water feature and community gathering space which recognize and respect this location's importance as a center of community dialogue and free speech was completed in December 2009. PAd has obtained bids for the lighting at Elinor Cogswell Plaza. The park was selected because the existing available lighting is inadequate, and electrical outlets are available. The lighting of the park will be scheduled once the City approves the public contribution portion of the cost. PAd meets quarterly and works closely with City of Palo Alto Departments to address necessary improvements within the BID. 4 I i' 1 ••. 11 ! I I ! I -Through a partnership with the City of Palo Alto, P Ad produces and installs seasonal banners on the Avenues in the district. The intent is to dress up the downtown and promote the BID. Parking -Representatives from PAd attend the Palo Alto Chamber of Commerce's parking committee meetings to learn of programs underway and contribute the downtown business perspective. -Through the parking district, the PAd and other stakeholders have issued RFPs for added . security and maintenance in the structures. -PAd will advocate to secure contracts for the DST with the City for the ongoing maintenance and security in the parking structures. Executive Committee -During the current fiscal year, the Executive Committee created a budget for Fiscal Year 2010-11 and completed the 2009-2010 Annual Report. -P Ad created an Advocacy task force to address issues on behalf of downtown businesses. On an ongoing basis, PAd promotes and develops a working partnership with the Palo Alto Chamber of Commerce. -P Ad has reached out to the P APD to improve communications and build a strong working relationship. The PAd had advocated for greater police patrol and presence within the district. Advocacy -PAd will listen to find out what is on constituent business owners' minds. We regularly speak with prospective tenants and work closely with property owners and manag~rs to ensure the maintenance of a balanced retail mix in the district. The P Ad participated and was instrumental in the discussions and ultimate adoption of the Ground Floor Zoning Ordinance within the district. Through a collaboration with the P ACC, the P Ad will advocate for streamlining the permit process for new business. , The P Ad will continue to perform outreach, identify and attract additional businesses to the downtown district. -PAd will lead dialogue on improving the district through aesthetic enhancements, the flow of traffic, the creation of a more welcoming pedestrian and cycling environment. -PAd is represented at the Palo Alto Chamber of Commerce ("P ACC") Government Action Committee ("GAC") meetings. -During Fiscal Year 2010-2011, PAd will continue to represent the voice of businesses. Nominating -During the past year, PAd has recruited new members to the Advisory Board to ensure all business sectors are represented, including new Advisory Board members, Adam Mason, partner at Jungle Digital Imaging and Abraham Khalil, who owns and operates both retail and professional businesses in the downtown. -P Ad coordinates the annual member meetings and election of directors of PAd. 5 Finance During the past year, PAd has: -Maintained accounting systems for PAd bookkeeping. Assisted in the billing of annual fee assessments. Improved the invoicing process. Planned and implemented delinquent member collections. Completed year-end tax filing. Scheduled an annual Audit to be completed through June 30, 2009 for submittal to the City. 6 Section II Expected Improvements and Activities for 2010-11 During Fiscal Year 2010-2011, PAd plans the following improvements, activities and programs. Marketing and Events Programs -Maintain and grow website aimed for consumer and member use and for cross-promotion of downtown businesses. It will include current activities, a comprehensive business directory, maps for parking and directions, and other links. The website (www.paloaltodowntown.com) provides opportunities for members to self promote on the website through advertising. Regular e-blasts will be prepared and distributed. Encourage and develop business to business exchange. Support the launch of the eMax online business networking site, dedicated to downtown Palo Alto. -Support the launch of the magazine, Made in Palo Alto, promoting downtown district business. Through a joint effort with the California Shoe and Luggage repair, to address both the environmental impact and address fundraising, the P Ad will recycle the street banners into tote bags. These bags will be available for purchase at various downtown establishments, where the profits from sales will be. shared. Events' -Review and Revamp the Dine and Shop Downtown promotional campaign. Support the Weekly Palo Alto Community Farm Shop. Support the Made In Palo Alto Fashion Show & fundraiser for the "Awearness" campaign against domestic violence. Support and maintain ongoing entertainment and events at Lytton Plaza, through the Friday night music jam sessions. Support and sponsor the World Music Day, through the extension of the PAd liability insurance for the event and participation of member businesses. Support the City of Palo Alto Recreation Dept with various events including the May Fete Parade, and the B&W Ball. Continue to produce seasonal banners for the Avenues and additional pieces highlighting upcoming events on the bridges and side streets. Support the SMCVB to accommodate the influx of visitors to local business and Stanford University, and Stanford Athletics events. Work with the City to promote a pedestrian-friendly environment through events that will feature entertainment and a draw to the BID. Downtown Development Downtown Streets Team -Continue support of the program financially with a pledge of $5,000.00 for the year, with the provision that it be used towards the security and cleanliness efforts within the district, including the parking structures. 7 Environmental -Design and display seasonal banners featuring business promotion. P Ad will work with the City to amend the current banner ordinance that precludes advertising on the banners which is currently limited to seasonal, historical and event driven messages. Identify areas for installation of additional directional and way finding signs. Identify areas for installation of additional lighting. Recommend removal and or replacement of benches. Identify certain key areas for landscaping, hanging baskets or potted plants. Continue efforts through the partnership with the P APD to monitor panhandling and enforcement of the sit/lie ordinance. P Ad will work closely with other business districts to help promote the expansion of the sit/lie ordinance if requested. Work with the P APD to retain police patrol in the district. Improve lighting at the Transit Station. Parking Create education and outreach programs to inform business owners and managers of the downtown parking options. Advocate for parking & directional signage. -Continue to work with the City and the parking committee to enable transferable parking permits. Use outreach programs to educate public of the ample free parking. Evaluate and implement parking survey results. Address security enforcement in the parking structures. P Ad will support the use of the DST for ongoing maintenance and security within the downtown parking structures. Encourage City contracts with the DST to provide additional maintenance in the district. Executive Committee -Continue to refine P Ad structure and organizational development. -Continue to update and refine information provided to Advisory Board Members. -Continue to advocate on behalf of downtown businesses. -Hold bi-annual roundtable meetings to encourage discussion among members, participation in P Ad and information about relevant topics. -Create visibility within the business comlnunity. -Begin conceptual planning initiative for the downtown area. -Continu~ to partner with property owners and leasing agents to ensure a good retail mix in the district. Nominating -Oversee the filing of year end tax return. -Oversee the filing of the Annual Audit. -Review and advise on annual budget and explore income/fundraising opportunities. 8 Section III: Budget for 2010-11 The total funds available for activities for this fiscal year are estimated to be $131,390. The budget for providing the activities is set forth as follows: BID 2010/11 Budget INCOME Assessments Uncollectible fees Total Assessments Income/Fundraising 09-10 Surplus Carryover TOTAL INCOME EXPENSES Operating Expenses Staff Salaries Executive Director Salary Health Insurance Payroll Taxes Surplus Carryover from Prior Year 09-10 fiscal Office Supplies & Expenses . Internet/Website Maintenance Telephone Rent Reauthorization Advertising Audit-Tax Returns Legal Insurance-Liability Workman's Comp Nominating Contingencies Total Operating Expenses Marketing and Events Programs & Member Outreach Permit Fees Banners Roundtable $130,000 $(20,000) $110,000 $17,650 $3,740 $131,390 Expenses $60,000 $4,200 $6,000 $66,000 $3,740 $1,500 $ 500 $1,000 $6,000 $2,500 $4,000 $1,000 $1,500 $1,000 $1,000 $3,500 $97,440 $1,000 $2,000 $7,650 9 $17,650 Income (Donation) $1,000 (Donation) $6,650 Events & Fundraising Dine/Shop Downtown $3,000 Events $5,000 Promotional Sales/Fundraising $2,000 Total EnvironmentaV Marketing & Events $20,650 $ DST $5,000 District Improvement $8,300 Environmental Total $13,300 Total Expenses/lncome $131,390 Section IV: Method and Basis of Levying the Assessment Cost Benefit AnalysislBID Assessments $3,000 $5,000 $2,000 $17,650 $17650 The method and basis of levying the assessment is provided sufficient detail to allow each business owner to estimate the amount of the assessment to be levied against his or her business for Fiscal Year 2010-11 and is not changed from the FY 2009-10 assessment. There have been no changes made to the Cost-Benefit Analysis or to the BID Assessments since they were approved by City Council on February 2,2004. The method of calculation used to determine the cost and benefit to each business located in the BID is described below. The BID assessments are based on three criteria: the type of business, the location of the business and the size of the business. It has been consistently demonstrated that the typical BID program places a higher priority on activities such as commercial marketing. As a result, the retail and restaurant establishments in the BID are assessed more than the service and professional businesses in the district. While service-oriented businesses benefit from a BID less than retailers and restaurateurs, they benefit more than professional businesses such as medical, dental, architectural, consultant and legal offices with their minimal advertising and promotion needs. F or these reasons, various business types are assessed according to the benefit that they receive from the BID, as follows: 10 ~ Retail and Restaurant ~ Service ~ Professional 100% of base amount 75% of base amount 50% of base amount Exceptions to this rule include financial institutions that are traditionally charged a flat rate regardless of location or size and lodging businesses that are typically charged by total rooms. The location of a business also determines the degree of benefit that accrues to that business. Centrally located businesses tend to benefit more, as do businesses located on the ground floor. F or this reason, A and B benefit zones have been identified for the BID. In Palo Alto, Zone A benefit business are assessed 100% of the base benefit assessment while Zone B businesses are assessed 75%. A third criterion is used in the BID to determine benefit. This criterion, the size of the business, takes into consideration the number of full time employees employed by the business. Please refer to Attachment 1 for a more complete understanding of the application of these three variables to establish BID benefit. Attachment 2 is the BID assessment for each business located within the BID boundaries. Applying the criteria identified in Attachment 1, a summary of the assessment that applies to each business by size, type and location is outlined. In addition to the Cost-Benefit Analysis, the assessments include the following criteria: ~ An exemption for "single person professional businesses" that have 25% or fewer full time equivalent ("FTE"), including the business owner. This covers employees who work less than 1 0 hours a week (based on a 40 hour work week(A full FTE equals approximately 2000 hours annually) ~ An assessment specifically for "single person businesses" that have 26% FTE to 1 FTE in the professional business category of the BID (A full FTE equals approximately 2000 hours annually) . ~ The tiring of other professional businesses by size based (according to benefit) on the "single person business" criteria This outline provides information by which a business can determine its annual assessment based on objective criteria. Except where otherwise defined, all terms shall have the meanings identified below: Definitions of Business Types in the Downtown Business Improvement District Retailers and Restaurants: Businesses that buy or resell goods such as clothing stores, shoe stores, office supplies as well as businesses that sell prepared food and drink. Service Businesses: Businesses that sell services such as beauty or barber shops, repair shops, most automotive businesses, dry cleaners, art and dance studios, printing firms, film processing companies, travel agencies, entertainment businesses such as theaters, etc. 11 Hotel and Lodging: These include businesses that have as their main busitless the lodging of customers. This is restricted to residential businesses that provide lodging services to customers for less than 30 days. Professional Businesses: Businesses that require advanced and/or specialized licenses or academic degrees such as architects, engineers, attorneys, chiropractors, dentists, doctors, accountants, optometrists, realtors, insurance brokers, venture capital firms, consultants, advertising and marketing professionals and mortgage brokers and similar professions. Financial Institutions: Includes banking, savings and loan institutions and credit unions. Additional clarification on business definitions will be defined according to Section 18.04.030 (Definitions) of the Palo Alto Municipal Code. The Advisory Board recommends that the following businesses be exempt from the BID assessment: ~ New businesses established in the BID area following the annual assessment for the year in which they locate in the BID area ~ Non-profit organizations ~ Newspapers ~ "Single person professional businesses" that have 25% or less full time equivalent (FTE), including the business owner The Assessment calculated shall be paid to the City no later than 30 days after receipt of the invoice with the amount of the annual assessment sent by the City. A second notice will be mailed as a reminder to businesses that have not remitted payment by that date. Late payment will be subject to a 10% late fee. Section V: Revenue Surplus or Deficit Based on the revenue balance on 04/01110 of$41,740, the PAd expects a surplus carryover of $3,740. Expected expenses for the remainder ofFY 09-10 are as follows: Current revenue balance Expected expenses for remaining FY Staff Salaries Staff Health Insurance Elections and Annual Report Office + Operating Expenses Outside Audit Advertising DST donation Total expected expenses Expected carry-over $41,740 $25,000 1,000 2,000 1,000 4,000 2,500 2,500 $38,000 $ 3,740 12 Section VI: Non-assessment Income It is estimated that $17,650.00 will be raised in fundraising and sponsor support. Additionally, anticipate in-kind contribution towards expenses for Fiscal Year 2010-11. Projected Income For Fiscal Year 10-11 -Roundtable (donation) -Legal (donation) Dine/Shop Downtown -Events -Promotional SaleslFundraising Total $6,650 $1,000 $3,000 $5,000 $2,000 $ $17,650 13 Section VII: PAd Board of Directors by Business Type Retailers and Restaurants Robert Beschiem, Tamarine Restaurant Claudia Cornejo, Caffe del Doge Whitney Denson, Five Ten Gifts Georgie Gleim, Gleim Jewelers Jeff Selzer, Palo Alto Bicycles Abraham Khalil, A.K. Insurance Services, KanZeman, Abby's, Med Wraps Hotel and Lodging Barbara Gross, Garden Court Hotel Services Businesses Stacey Yates, Skin Spirit Financial Institutions Deborah Pappas, Borel Bank Professional Organizations Anne E. Senti-Willis, Thoits, Love, et al. Elliot Lee, e-Max Sherry Bijan, PAd LIAISONS Chamber of Commerce Paula Sandas Downtown Streets Team Eileen Richardson City of Palo Alto Susan Barnes *Termed member(s) of the Board of Directors who continue to serve as officers or volunteer heads of PAd committees. 14 / ATTACHMENT 1 A General Statement Regarding Cost-Benefit Analysis for BID Businesses Using The Traditional Three Criteria Formula Criteria 1) Type of Business: Statement Concerning Cost-Benefit Formula for BID Businesses Regarding Type of Business: In a review of 200 California Business Improvement Districts, it is consistently demonstrated that the typical BID Program places a higher priority on Commercial Marketing Programs than on Civic Beautification and Commercial Recruitment Programs. With that trend in mind, retail and restaurant businesses, with their emphasis on, and need for, commercial marketing, are traditionally assessed more than less marketing-sensitive service-oriented or professional- oriented businesses. However, while service-oriented businesses benefit from a BID less than retailers and restaurateurs, they benefit more, (from commercial marketing programs), than professional businesses such as medical, dental and legal offices with their minimal advertising and promotion needs. Therefore, set forth below, is an example of how various business types might be considered regarding the computation of the annual benefit assessment. • Retail and Restaurant: • Service: • Professional: 100% of base amount 75% of base amount 50% of base amount Exceptions to this rule include financial institutions that are traditionally charged a flat rate regardless of location or size and lodging businesses that are typically charged by total rooms. Lodging businesses are assessed based on the total number of rooms because it is a more equitable manner of determining size. Many lodging businesses have many part time employees, but revenues are based on the room occupancies of the hotel, not the goods sold or services provided by employees. Criteria 2) Location of Business: Statement Concerning Cost-Benefit Formula For BID Businesses Regarding Location of Business: It has also been consistently demonstrated that the more centrally located businesses tend to benefit from BID activities and services to a greater degree than businesses located toward the periphery of the proposed BID boundaries. Events and activities tend to originate in the central core of the downtown area and spread benefit to the outer areas with diminishing energy and impact, much like the ripple effect of a stone crossed into a body of calm water. Furthermore, ground floor businesses tend to benefit to a greater degree than businesses located in upper floors. Therefore, in some cases, a new BID's annual benefit assessment formula also takes these street level criteria into account. 15 As mentioned above, special events, fairs, festivals and other activities tend to take place within, or along, the Main Street core rather than in the areas at the periphery of the downtown core. Additionally, BID-sponsored seasonal decorations, public art projects, street banners and street furniture tend to be located within the immediate core area. Therefore, businesses located within the most central area of the proposed BID are considered to be within "Zone A" which should be considered the primary benefit zone. There is typically a "secondary zone" or "Zone B" within most proposed BID areas. This area receives less benefit than Zone A and should be assessed accordingly. An example of how different zones might be treated regarding the computation of the annual benefit assessment is as follows. • Zone A: 100% of base benefit assessment • Zone B: 75% of base benefit assessment In the case of Downtown Palo Alto, it is recommended that all Zone A upper floor businesses, as well as any other businesses located at the periphery of the proposed BID, be considered as Zone B businesses. Please refer to the map in Attachment I. Criteria 3) Size of Business: Statement Concerning Cost-Benefit Formula for BID Businesses Regarding Size of Business: In approximately 50% of newly established BIDs, a third assessment criterion is used. This criterion involves the size of each individual business that is based upon the businesses' total number of full-time employees. Full-time employees are those working a total of 2,000 hours per year. Part-time employees are grouped into full-time job positions, i.e., two half-time employees total one full-time. Fractions are rounded down to the nearest whole number with no less than one person as a minimum for business. An example of how various business sizes might be treated regarding the computation of the annual benefit assessment is as follows: • Small: • Medium: • Large: 50% of base assessment 75% of base assessment 100 % of base assessment *Full-time employees (FTE) RetaillRestaurants under 6 FTE* 6-under 11 FTE* 11+ FTE* Service Businesses Under 4 FTE* 4 to under 7 FTE * 7+ FTE* Additionally, an exemption was established for "single person professional businesses" that have 25% or less full time equivalent (FTE), including the business owner. This covers employees who work less than 10 hours a week (based on a 40 hour work week). Since "single person businesses" that have 26% FTE to 1 FTE in the professional business category of the BID benefit the very least from the assessment, their assessments have been tiered by size based (according to benefit) on the new "single person business" criteria. ATTACHMENT 1, page 2 16 Retailers and Restaurants (100%) Service Businesses (75%) Professional Businesses (50%) Lodging Businesses (100%) Financial Institutions Downtown Palo Alto Business Improvement District Annual BID Assessments ZONE A $225.00 (Under 6 FTE employees) (50%) $340.00 (6 to under 11 FTE employees) (75%) $450.00 (11+ FTE employees) (100%) $170.00 (Under 4 FTE employees) (50%) $260.00 (4 to under 7 FTE employees) (75%) $340.00 (7+ FTE employees) (100%) ATTACHMENT 2 ZONEB (75%) $170.00 $260.00 $340.00 $130.00 $200.00 $260.00 EXEMPT (25% or fewer FTE employees, including the business owner) $ 60.00 (26% to under 1 FTE employees) (25%) $ 50.00 $110.00 (2 to 4 FTE employees) (50%) $ 90.00 $170.00 (5 to 9 FTE employees) (75%) $130.00 $225.00 (10+ FTE employees) (100%) $170.00 $225.00 (up to 20 rooms) (50%) $340.00 (21 to 40 rooms) (75%) $450.00 (41 + rooms) (100%) $500.00 $170.00 $260.00 $340.00 $500.00 N otel: For retail, restaurant, service, and professional businesses, size will be determined by number of employees either full-time or equivalent (FTE) made up of multiples of part-time employees. A full FTE equals approximately 2000 hours annually. Lodging facilities will be charged by number of rooms available and financial institutions will be charged a flat fee. Note 2: Second floor (and higher) businesses located within Zone A, will be assessed the same as similar street-level businesses located within Zone B. Note 3: Assessment amounts are rounded to the nearest ten dollars. The minimum assessment will be $50.00. 17 The City of Palo Alto 1101>&<2.2003.07.2514,17:39 Proposed BID Mop 7125103 (llcc-prmlral<\GIs$ID&lalPorsonaillope<2.mdb) ATTACHMENT 2 Downtown Palo Alto Business Improvement District This map is a product of the City of Palo Alto GIS -. 0' 500' This document I. a Vraphlc ' ...... ntaU'"' only 01 best .vallable sour ..... The City 01 Palo AIIo a.sum .. no ,_olbIliIy lor any...,.".. ATTACHMENT 3 Not Yet Approved Resolution No. --- Resolution of the Council of the City of Palo Alto Declaring Its Intention to Levy an Assessment Against Businesses Within the Downtown Palo Alto Business Improvement District for Fiscal Year 2011 and Setting a Time and Place for May 17, 2010 at 7:00 PM or Thereafter, in the Council Chambers THE CITY COUNCIL OF THE CITY OF PALO ALTO DOES HEREBY FIND, DECLARE, AND ORDER AS FOLLOWS: SECTION 1. The Parking and Business Improvement Area Law of 1989 (the "Law"), California Streets and Highways Code Sections 36500 et seq., authorizes the City Council to levy an assessment against businesses within a parking and business improvement area which is in addition to any assessments, fees, charges, or taxes imposed in the City. SECTION 2. Pursuant to the Law, the City Council adopted Ordinance No. 4819 establishing the Downtown Palo Alto Business Improvement District (the "District") in the City of Palo Alto. SECTION 3. The City Council, by Resolution No. 8416, appointed the Board of Directors of the Palo Alto Downtown Business & Professional Association, a California nonprofit mutual benefit corporation, to serve as the Advisory Board for the District (the "Advisory Board"). SECTION 4. In accordance with Section 36533 of the law, the Advisory Board prepared and filed with the City Clerk a report entitled "Downtown Palo Alto Business Improvement District, Annual Report 2010-2011" (the "Report). The City Council hereby preliminarily approves the report. SECTION 5. The boundaries of the District are within the City limits of the City of Palo Alto (the "City") and encompass the greater downtown area of the City, generally extending from El Camino Real to the East, Webster Street to the West, Lytton Avenue to the North and Addison Avenue to the South (east of Emerson Street, the boundaries extend only to Forest Avenue to the South). Reference is hereby made to the map of the District attached hereto as Exhibit "A" and incorporated herein by reference for a complete description of the boundaries of the District. SECTION 6. The City Council hereby declares its intention, in addition to any assessments, fees, charges or taxes imposed by the City, to levy and collect an assessment against businesses within the District for fiscal year 2010-2011 (July 1, 2010 to June 30, 2011). Such assessment is not proposed to increase from the assessment levied and collected for fiscal 1 100331 jb 0130568 Not Yet Approved year 2009-2010. The method and basis of levying the assessment is set forth in Exhibit "B" attached hereto, and incorporated herein by reference. SECTION 7. The types of improvements to be funded by the levy of an assessment against businesses within the District are the acquisition, construction, installation or maintenance of any tangible property with an estimated useful life of five years or more. The types of activities to be funded by the levy of an assessment against businesses within the District are the promotion of public events which benefit businesses in the area and which take place on or in public places withi;n the District; the furnishing of music in any public place in the District; and activities which benefit businesses located and operating in the District. SECTION 8. New businesses established in the District after the beginning of any fiscal year shall be exempt from the levy of the assessment for that fiscal year. In addition, non-profit organizations, newspapers and professional "single-person businesses," defined as those businesses which have 25% or less full time equivalent employees, including the business owner, shall be exempt from the assessment. SECTION 9. The City Council hereby fixes the time and place for a public hearing on the proposed levy of an assessment against businesses within the District for fiscal year 2010-2011 as follows: TIME: DATE: PLACE: 7:00p.m. Monday, May 17,2010 City Council Chambers 250 Hamilton Avenue Palo Alto, California 94301 At the public hearing, the testimony of all interested persons regarding the levy of an assessment against businesses within the District for fiscal year 2010-2011 shall be heard. A protest may be made orally or in writing by any interested person. Any protest pertaining to the regularity or sufficiency of the proceedings must be in writing and shall clearly set forth the irregularity or defect to which the objection is made. Every written protest must be filed with the City Clerk at or before the time fixed for the public hearing. The City Council may waive any irregularity in the form or content of any written protest and at the public hearing may correct minor defects in the proceedings. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing. Each written protest must contain a description of the business in which the person subscribing the protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the City as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the 2 100331 jb 0130568 Not Yet Approved business. A written protest which does not comply with the requirements set forth in this paragraph will not be counted in determining a majority protest (as defined below). If, at the conclusion of the public hearing, written protests are received from the owners of businesses in the District which will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent (i.e., there is a majority protest), no further proceedings to levy the proposed assessment, as contained in this resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only against the furnishing of a specified type or types of improvement or activity within the District, those types of improvements or activities shall be eliminated. SECTION 10. For a full and detailed description of the improvements and activities to be provided for fiscal year 2010-2011, the boundaries of the District and the proposed assessments to be levied against the businesses within the District for fiscal year 2010- 2011, reference is hereby made to the Report of the Advisory Board. The Report is on file with the City Clerk and open to public inspection. SECTION 11. The City Clerk is hereby authorized and directed to provide notice of the public hearing in accordance with law. II II II II II II II II II II II II 3 100331 jb 0130568 Not Yet Approved SECTION 12. The Council finds that the adoption of this resolution does not meet the definition of a project under Section 21065 of the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: . Senior Assistant City Attorney 100331 jb 0130568 4 Mayor APPROVED: City Manager Director of Administrative Services Director of Planning and Community Environment The City of P,a loA 1 t 0 11opet2.2003.(J1.2514:17:39 Proposed BID Map 7125103 (I~\GIs$\DaI8\P_oI\IIopez2,mdO) EXHIBIT A Downtown Palo Alto Business Improvement District This map Is a product of the City of Palo Alto GIS -. 0' This documenlll a graphic ropr_nlaUon only 01 beslavalltble sources. The CMy 01 Palo Allo as....., ... "" .. spon_My for ""1/""" ... Retailers and Restaurants (100%) Service Businesses (75%) Professional Businesses (50%) Lodging Businesses (100%) Financial Institutions EXHIBITB Downtown Palo Alto Business Improvement District Annual BID Assessments ZONE A $225.00 (Under 6 FTE employees) (50%) $340.00 (6 to under 11 FTE employees) (75%) $450.00 (11+ FTE employees) (100%) $170.00 (Under 4 FTE employees) (50%) $260.00 (4 to under 7 FTE employees) (75%) $340.00 (7+ FTE employees) (100%) ZONED (75%) $170.00 $260.00 $340.00 $130.00 $200.00 $260.00 EXEMPT (25% or fewer FTE employees, including the business owner) $ 60.00 (26% to under 1 FTE employees) (25%) $ 50.00 $110.00 (2 to 4 FTE employees) (50%) $ 90.00 $170.00 (5 to 9 FTE employees) (75%) $130.00 $225.00 (10+ FTE employees) (100%) $170.00 $225.00 (up to 20 rooms) (50%) $340.00 (21 to 40 rooms) (75%) $450.00 (41 + rooms) (100%) $500.00 $170.00 $260.00 $340.00 $500.00 N otel: For retail, restaurant, service, and professional businesses, size will be determined by number of employees either full-time or equivalent (FTE) made up of multiples of part-time employees. A full FTE equals approximately 2000 hours annually. Lodging facilities will be charged by number of rooms available and financial institutions will be charged a flat fee. Note 2: Second floor (and higher) businesses located within Zone A, will be assessed the same as similar street-level businesses located within Zone B. Note 3: Assessment amounts are rounded to the nearest ten dollars. The minimum assessment will be $50.00. City of Palo Alto City Manager's Report 6 TO: HONORABLE CITY COUNCIl, FROM: CITY MANAGER DATE: APRIL 19, 2010 REPORT TYPE: ACTION ITEM DEPARTMENT: PI,ANNING AND COMUNITY ENVIRONMENT CMR: 220:10 SUBJECT: Denial of an appeal by All Signs Services of an architectural review approval condition to delete two ancillary, illuminated wall signs: "Liquor" and "Photo" associated with a CVS pharmacy within the CN(GF)(p) zone district located at 2701 Middlefield Road. RECOMMENDATION Staff recommends that the City Council deny the appeal by approving the consent calendar item, thereby declining to hear thc appeal by All Signs Services and upholding the Director's decision to approve the Architectural Review application subject to the conditions as recommended by staff and the Architectural Review Board in the draft Record of Land Use Action (Attachment A). COUNCIL REVIEW AUTHORITY On March 9,2010, after review and recommendation by the Architectural Review Board (ARB), the Director approved with conditions, an application (09PLN-00314) for signage at the CVS Pharmacy at 2701 Middlefield Road. On March 22, 2010, within the 14 day request for hearing pcriod, the applicant, All Signs Services, submitted an appeal of the Director's approval. Pursuant to the Palo Alto Municipal Code (PAMC) Chapter 18.77.070, once the Director's decision is made and an appeal is filed, the project is sent to Council on the consent calendar. In !,he case of Architectural:Review applications, a minimum of three (3) council member votes are required to remove the project from the Consent Calendar and set a hearirig for a subsequent City Council meeting. If the item is not removed from the consent calendar, the Director's decision stands and no hearing is held. BACKGROUND On August 13, 2009, prior to the current application, the Director conditionally appmved an application for six wall signs (two "CVS/pharmacy" wall signs and two sets of ancillary "Photo" and "Liquor" wall signs) and painting of awnings to reflect the change of the business from a Longs Drugs to a CVS Pharmacy retail store, upon stafflevel review. The approval allowed the repainting of the awnings and required that the six signs not be internally illuminated, but be halo CMR:403:09 illuminated, a method of lighting used for other signs in the Midtown Shopping Center. The applicant did not appeal and the conditional approval was deemed effective as of August 27, 2009. The applicant however did not indicate acceptance of the conditions. Following the approval of th~ permit, tJle applicant installed six internally illuminated signs without the benefit of buildingpeimits and in violation of the sign permit's conditions of approval. The applicant then filed the current application which is identical to the prior application that was conditionally approved, because of a desire to retain and "legalize" the signs as installed. The application was referred to the ARB for recommendation. This application was heard by the Architectural Review Board (ARB) on March 4, 2010. Consistent with the ARB recommendations, the Director's approval allows only two halo illuminated "CVS/pharmacy" wall signs, and requires the repainting of the awnings to a color consistent with the existing building. Additionally, the conditions require the immediate removal of the two sets of ancillary wall signs and window sign installed without permits ("Liquor", "Photo" and illuminated window signs). The Director's approval letter is attached (Attachment C). ARCHITECTURAL REVIEW BOARD RECOMMENDATION At the hearing on March 4, 2010, the ARB recommended the use of halo illumination, removal of the ancillary "Photo" and "Liquor" signs, and repainting the awnings. The ARB stated that the ancillary "Photo" and "Liquor" signs were incompatible with the existing building and created a cl uttered appearanec. Staff has reeeived two letters from the public regarding the request. The first letter, from Ms. Lynn Chiapella, requested that the sign application be denied. The writer objected to the sign colors and proportions, as well as the ancillary signs. The second letter from the Midtown Residents Association supported the conditional approval that required the removal of the ancillary signs. The letters from the public are included as Attachment E to this report. DISCUSSION All Signs Service is appealing the Director's approval condition (condition 3) requiring the removal of the ancillary "Photo" and "Liquor" signs. The appellant does not object to using halo lighting or modifying the color of the awnings. The appellant requests that the ancillary signs be allowed because: 1) the total sign area does not exceed the maximum allowable size for wall signs on one elevation; and 2) the Safeway market on 2811 Middlefield Road was allowed a similar ancillary sign ("Pharmacy") along its Middlefield Road frontage. The installed signs advertise a "CVS/pharrnacy" on two wall signs and two sets of ancillary "Liquor" and "Photo" signs on both the Middlefield frontage and the west parking lot elevation. The two primary "CVS/pharmacy" wall signs measure 58.55 sq. ft. each. The "Liquor" sign is 6.71 sq. ft. arid the "Photo" sign is the smallest at 6.19 sq. ft. The installed signs are internally illuminated channel letters painted in the corporate red color. Six metal awnings have also been painted the CVS red to match the new corporate colors. The applicant's appeal letter is attached to this report as Attachment B. The Sign Ordinance, PAMC Chapter 16.20, contains the provisions that govern the type of signs, as well as the maximum sizes and locations of signs. However, per PAMC Section 16.20.020 (Design Review Required) and Zoning code section 18.76.020(bX3)(B), signs that conform to CMR:403:09 applicable Code requirements are subject to Architectural Review and must meet the Architectural Review findings (PAMC Section 18.76.020). The 'proposed area of the ancillary and the primary signs would not exceed the maximum allowed area. Planning staff had originally supported the ancillary signs because they did not exceed the maximum square footage for walls signs and with the provision that they be halo illuminated. However, upon a field review of the signs after installation, staff agreed with the ARB that the addition of the signs created a cluttered appearance. Both staff and the ARB determined that the ancillary signs were inconsistent with the immediate environment and improvements of the site area and therefore with the Architectural Review findings. An analysis of the project's conformance to maximum area allowed and number of signs per the Sign Ordinance is located in the ARB staff report ,(Attachment D). The Midtown Safeway's "Pharmacy" sign was approved at a staff level on August 14, 2008, as staff determined that the proposed signage was consistent with the requirements of both the Sign Ordinance and the Architectural Review findings. The Safeway supermarket has a frontage of approximately 150 fcet and a total of 96.5 sq. ft of all wall signs along the Middlefield Road frontage. The signs are placed only along the Middlefield Road fmntage. The subject CVS Pharmacy site has a narrower 125 feet of frontage along Middlefield Road and a total of 71.45 sq. ft. of wall signs are proposed. There are several differences between the Safeway supermarket and the CVS Pharmacy signs and sites. The supermarket building has a longer street frontage and a more varied building favade. Safeway's primary sign is located in the middle of the building fayade and the ancillary signs are placed at the left and right edges. Safeway is also set back approximately 135 feet from the Middlefield Road pr6perty line. The configuration of the building and location of signs, including the darker color scheme of the signs, provide more separation between the four signs and a more arehitecturally balanced appearance. The CVS Pharmacy building has a shorter frontage and is located only approximately 35 feet from Middlefield Road property line. The ancillary signs are proposed to be located directly on both sides of the primary CVS/pharmacy sign. The three CVS signs on both the Middlefield Road and parking lot elevations are proposed to be placed much closer together with a brighter color scheme on both the Middlefield Road and parking lot facades. Staff and the ARB members have both determined that the addition of the ancillary signs do not promote visual environments which are of high aesthetic quality and variety. RESOURCE IMPACTS The decision by Council to uphold the Director's decision would not result in any cost and/or revenue impacts to the City. The appeal process and development review costs are recovered through permit fees. POLICY IMPLICATIONS The proposed use is consistent with the Comprehensive Plan in that the proposed signage is for a retail use that is consistent with the site's Neighborhood Commercial land use designation . CMR: 403:09 . Page 3 of4 ENVIRONMENTAL REVIEW The project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA). PREPARED BY: ~tL wW DEPARTMENT HEAD: CITY MANAGER APPROVAL: ATTACHMENTS A. Record of Land Use Action Se' I 'W '-'--"'·irector Planning and Community Environment B.· Appeal request from All Sign Services, dated March 23,2010 C. ARB Permit 09PLN-00314, approved March 9, 2010 D. ARB staff report, dated March 4, 2010 E. Public correspondence F. Photo of existing signs G. Location map COURTESY COPIES David Ford, Appellant Duca and Hanlcy Properties, owner . Midtown Residents Association Lynn Chiapella CMR:403:09 Page 4 of4 ATTACHMENT A APPROVAL NO. 2010- RECORD OF THE COUNCIL OF THE CITY OF PALO ALTO LAND USE APPROVAL FOR 2701 MIDDLEFIELD ROAD: ARCHITECTURAL REVIEW 09PLN-00314 (ALL SIGN SERVICES, APPLICANT) On April 19, 2010, the City Council denied the appeal of the' Planning Director's approval of an Archi tectural Review permi t to allow illuminated wall signs and fa9ade improvements, making the following findings, determination and declarations: SECTION 1. Background. The City Council of the City of Palo Alto ("City Council") finds, determines, and declares as follows: A. On December 22, 2009, All Sign Services applied for an Architectural Review 09PLN-00314 'to allow the installation of six internally illuminated wall signs and fa9ade improvements (the project) for CVS Pharmacy located at 2701 Middlefield Rd. B. Following staff review, the Architectural. Review Board reviewed the project and staff recommendation on March 4, 2010. C. On March 9, 2010, the Planning Director issued a condi tional approval based on the Archi tectural Review Board's recommendation to require that the internally illuminated wall signs be removed and replaced with halo illuminated wall signs. The approval also required two sets of ancillary signs to be removed and the repainting of the awnings to match the building. C. On March 22, 2010, the applicant appealed the Planning Director's decision. SECTION 2. Environmental Review. The appeal of the Director's decision and the scope of this project are exempt from the provisions of the California Environmental Quality Act per Sections 15270 and 15301. SECTION 3. Architectural Review Findings. 1. The design is consistent and compatible wi th applicable elements of the city's Comprehensive Plan, in that: The project, as conditioned, is consistent with Policy L-50: Encourage high quality signage that is attractive, appropriate for the location and balances visibility needs with aesthetic needs. The design of the sign, materials, and colors, as conditioned per the Director's approval, are attractive and appropriate for the site and the surrounding neighborhood. The ancillary "Photo" and 1 "Liquor" wall signs would not be consistent or compatible because installation would create a cluttered appearance when combined with the primary wall sign. 2. The design is compatible with the immediate environment of the site, in that: The design and placement of the signs, as conditioned, are consistent with the existing architectural style of the building. The colors and materials have been conditioned to be compatible with the existing building. The approved signs, as conditioned, are located where existing signs were previously approved to be located. The ancillary wall signs would not be consistent with the existing architecture and therefore have been required to be removed. 3. The design is appropriate to the function of the project, in that: The design, as conditioned, is appropriate to the function of the project, in that the ,;;ligns provide identification for the business for both customers traveling on Middlefield Road and those in the shopping center. The design is consistent with the Sign Code Regulation Palo Alto Municipal Code Chapter 16.20. 4. In areas considered by the board as having a unified design character or historical character, whether the design is compatible with such character, in that: . The design, as conditioned, is compatible with such character in that the channel letters and halo illumination are compatible with existing signage at the Midtown Shopping Center. Architectural Review findings 5 through 16 are not applicable to the project. SECTION 4. Archi tectural Review Approval Granted. Architectural Review Approval is hereby granted for the Project by the ci ty Council pursuant to Chapter 18.76 of the Palo Al to Municipal CodE!. SECTION 5. Plan Approval. The plans submitted for Building Permit shall be in substantial conformance with those plans prepared by Image National Inc., titled CVS I pharmacy , consisting of eight pages, dated December 19, 2009, and received April 8, 2010, except as modified to incorporate the conditions of-approval in Section 6. A copy of 2 .. . . these plans is on file in the Department of Planning and Community Development. The conditions of approval in Section 6 shall be printed on the cover sheet of the plan set submitted with the Building Permit application. SECTION 6. Conditions 1. The plans submitted for Building Permit shall be in substantial conformance with the ARB-approved plans dated received February 22, 2010 except as modified to incorporate these conditions of approval. 2. The ancillary signs ("Photos and "Liquor") shall be removed. 3. The wall signs shall be "halo-lit" (reverse pan channel lighting, such that the illuminated sign face shall appear essentially opaque) . 4. A Building Permit is required for the illuminated signs. 5. The awnings shall be repainted to a color consistent 1f/i th the exis ting building subj ect to the approval of the Planning Director. 6. The illegal internally illuminated wall and window signs shall be removed immediately. 7. The directional sign shall not be used for advertising services. 8. Wall signs shall not exceed a thickness of ten inches. 9. Not more than twenty percent of the total window space on a wall may be covered by window signs at any time. 10. The plans submitted for building permit shall state, "The contractor using the city sidewalk, alley or parking lot to work on an adjacent private building must do so in a manner that is safe for pedestrians and vehicles. The contractor must cone or tape-off the work area while still leaving adequate room for pedestrians and vehicles to safely pass. If the contractor's work area leaves insufficient sidewalk or alley space for safe pedestrian and vehicle passage, the contractor must apply to Public Works for an encroachment permit to close the sidewalk or alley. " 3 PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: • City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED: Director of Planning and Community Environment PLANS AND DRAWINGS REFERENCED: 1. Those plans prepared "CVS/pharmacy", consisting of and received April 8, 2010. by Image National, Inc. titled eight pages, dated December 18, 2009, 4 ( Attachment B CITY OF PALO ALTO Office of the City CIIIIk APPEAL FROM THE DECISION Of DIRECTOR OF PLANNING AND COMMUNITY ENViRONMEIW If!t.£ff>-::'''' P\'Il. l V tid; > :_ C. . r-l r: 4 J For appeals of, final decisions on Archllectural Review Board IVId Hom~ Improvement ExoepUon applications (rendeJed after public -, hearing), !his ap~aI form shall be completed and submitted by ~l1ant witflln fourteen days from date of 1I1e DlreCtrir's decision, Appeals of final decisions on Individual Review applications (rendered affer IWbllc hearing) must be submitted wilhln ten days of lila Director's decision, ComJ*!te forni, the current fee and a letter slaUng reasons for the appeal shall be submitted to front desk staff oftha Planning Division, 5'> floor, Cily Hall, 250 Hamilton Avenue, eXC6ptfor 960 Fridays whenCily Hall is closed, when these Items shall be submitted 10 Planning staff at the Development Center, 265 Hamilton Avenue (glass storefront across !rom Cily Hall on lIIe corner of Bryant and Hamillon), ' , • Direclor of Planning includes hIs designees, whicih are Planning Managers or the Chief Planning Olnelal , Appeal ApplicatiOn No. dift.N -DDJ/'-/ RecelplNo, ______ _ Nameof~lIent J)AVI;z:>_L&-=v.?:.;;;''P::....... _______ Phone(?l~) ;S1il?-o~;;>_'1_,, __ _ Address /2'1 dUl0c;£€, 6-:-"f'o$lE'VuJ£!; C4 5'~7~'7 ~ ~ ~P LOCATION Of PROPERTY SUBJECT TO APPEAL: SlreetAddress __ ' --.-2.'101 Ih/pp;.e,!..n..!.:;ie::""_",,,,,,p=-~..!.:/CP==-,-, ______________ _ Name of Pro~rty Owner (K other1l1an ap~lIant) _PU4::'!_LIi!!N'L!f.'L..L ;f<>~~J' _~_, ___ _ PropertyOwne(SAddress~?1 L-lrLCEI-A/ AytE. 5A"l..J~ C4 . ____ 95"/Zr . ~ ~ ~ The decision of Ihe Director of Planning md Community Environment dated _._/J)/'1£~ ~ ___ , 2Q,....!../=.", __ ~bythe application t>'lJ'<..;v-ooh1 by PA'VIP ;4/Q> .. (61e numbe~ (ooginal projecl applicant) .)l1li9 d/l"'.eo V~ (approvedldenled) Date: W:>P'" ,Is hereby ~Ied for the reasons staled in the attached letter Qn dupficate) o . ~.(.?/ 7":=-p Signa\U~ ¢ Appallant--,4Z:~~·:::::r'::::::::::::L...2~::"~""'(::r. . PLANNING COMMISSION RECOMMENDATION TO THE CITY COUNCIL (TO BE FILLED OUT BY STAFF): ~te ____________ _ Approved Dented __ _ Remarks and/or Conditions: CITY COUNCIL DECISlON (TO flE FILLED OUT ElY STAFF): Oate _________ _ Approved !iented ___ __ Remarks and/or Condidons: SUBMITTAL REQUIREMENTS SATISFIED: 1. leIterstaUng reasons for eppeal ____ ReoelVlld !Jy: _____ . __________ _ 2. Fee (currently $i5t.flO) _~__ Received by: __ ._. ru..~ I l ALL SIGN SERVICES March 23, 2010 City of Palo Alto Planning Department 250 Hamilton Ave. Palo Alto, CA 94303 Dear Ms. Lee, 124 Allimore CI. Roseville, CA 95747 I would like to appeal the ARC decision on application #09PLN-00314 for the CVS signage located at 2701 Middlefield Road. While we are willing to work with some of the ARC's findings regarding the type of lighting used on the signage (halo as opposed to internal illumination) and the color of the awnings (red to match the tower roof and other architectural elements of the building), we disagree with their recommendation on secondary signage. The proposed signage falls within the city sign ordinance, and was previously approved by the Planning Staff under application #09PLN-000n (please see attached) The use of secondary signage is currently being done by the Safeway store in the same area (2811 Middlefield Rd.) where they have three signs located on the front facade of their building (please see attached). We believe that with proper spacing and location the proposed secondary signage can be made to work with the large available signage area. Thank you. Sincerely, f)~ David Ford All Sign Services (for Image National) CVS -2701 Middlefield Road We are proposing to replace the existing Longs Drugs signs located at 2701 Middlefield Rd. with new signs for CVS!pharmacy. CVS has acquired the Longs Drugs franchise and is in the process of rebranding all of the stores with new signs. CVS is proposing main signs that are a similar size to the existing longs Drugs signs (36" letter height), and the addition of two anciliary signs on the main and secondary elevation (Photo, liquor). These ancillary signs are 18" letlersets and are positioned to the left and right of the main sign. CVS is also proposing to replace the transom vinyl on the two entrances, the receiving plaque on the back door and repainting the existing awning to the CVS red. Mat'Gh 9,2010 David Ford All Signs SCTViceS 124 A1limore Court Roseville, CA 95747 ',. ; Attachment C ~ity9fPalQN!Q Department of Plllnnhrg anif .Coltll1!!{nit.v E ntJiromnii1I./c Sub:le(t: 2701 ty'liddlcjieIdRd. -Filll# 09PLN"003hl: Architectural Revie.w for siglls and f!\.;adeimtlt:ovement~ •.. DearMI'. Ford: On Thursday Mat'eh 4, 2010, the Arcl1i\ecwra1RevLewBoard (AI~g)I'evi~wed~n application for fu<;:ade. and.bui1ding modifitatiut1s at270l Mid4.lcqcld:Iid., Pa,lpAho. The ARB l'cview@ thep1"Qject and recomnwnded approval wlthcOn{jitionS' to, thepjret,t¢i' of Plahliing llt1d ComlTIuility llnvironmenL On Tucsdliy M~ch:.9,.201Q, tM Directpr QfPJanning andComtnunity Enviroumenl . conditieuuUy apjll'ove(i the projectasdcscribcd o.,Jow. PROJECT DESCRIpTION 2701 Middlefield Rd, [O.!)PLN-iso3141l· Request by All iljgn~ Ser,YtgeS, on behalf of Dlloa and HaIJleY Pl'Opeliies. Inc., for\\t<;hiieBluraL revie~ for of jl1l1niiti~!~£twall signs and fayade impl'ovement$ for CVS l'harmacy, Exemp(fl'om the provisiprrl\.'Qf,;~'$;2A. Section 15301. Zone: CN(OF)('p).i .. ~ ••.•. FINmNGSFORAP.PROVAL .' 1. The approval is based'upon the pr(jjecti'!icompHllO~c WTththe:'A~Jfil~teq\lired findings as stated in Allachment A. . . . CONDIt'IONS OF APl'!WVAL Planning »ivision . L The plans s\lbmitted for BuiJaing,Permltshll11 QC in subst!lntialoonfmmance with. the ARB- approved plans dated received February 22, 2010 eXCept as modified 10 inCOrpOl'Nte these conditions of approval. 2. A copy of the ARB approval letter shaH be. printed oht)leplahl: submitt\.ld for bulJdiflg pennit. Plal1;njn~r 250 Hamiltl."HtAyt;·nue P.O. Box 10250 Polo Alto, CA 94303 6.s0.329.2Ml 650 329.2154 ''ra:hsp'bl'tatfon 250.HamUtonAvoJwo P.O. Box 10250 Polo A ito, CA 94303 <150.329.2520 65Q.617.310<\ lltilkting 285. Hamilton Averru~ ['.6. Box 10250 Palo"'l,">, CA 94303 650.329:2496 650.329.2240 2701 Middiefjeltl Rd, ARB Mo<:Uog Dnte: March 4, 2010 09I'LN.OO3)4 3. The ancillary signs ("Photos and "LiqUor") shall be removed, 4. The wall signs shall be "haio-ilt" (reverse pan channel lighting. stich thnt the illuminated sign taC;! shan appear essentially .opaque). . 5. A Building Permit is reqllired for the ilhmiinated signs. 6. The awnings shall be repainted to a color consistent with the existing building subject to the approval of lhe Planning Director, 7, The illegal internally illuminated walland .w.indowsignsshall be remov.ed immediHtely, , ' " . '. - 8. The directional sign shull not be used for advertising services . . 9. Wall signs shall not exceed u thickness of ten inthes. 10. Not more than twenty pereentoJ'the lotal window Sll\lce on::\ wall mllY he.covcred lly window sigllsllt uny lime. . I I. Thcrlans sllbmitted f()r\Juil(jing pennit shall stllte, "ThccontrllctQ~ usjng the <;ity sidewalk, alley or p,lrktng lot to work 01) an adjacent private building musl 40 so in a manner that is safe for pc4csuians and vehicles. The contraotorn'lust cOileqr tape,off the W01'kar~ while still leaving adequate room for pedestrians and vehicle.s to safely pass. If the contractor's work urea leaves insufficientsidowalk O1'ulley space for sllfe.pedesliiaMlnd< vehicle passage, the \lontrac(or mllsl applY (0 PubHcWorbfor an encroachment penni! to clQs~tlm Sidewalk cralley." This Director's decision shall become final fot[j~.een calendar (t4)duys follOWing the date of this leIter, uoless an :appeal is filed punruant to PAMe Chapl~.r 18.78. . , If you have any ques!ior\$ t-egaroing this ARB action, ple~~ do \lot h.e~it"te to epntact the projeet planner, Elenll Lee, at (650) 617 -3196 or vill email at Elcna.l;ee@cityofpaloalto.org. Steven Turner . Advance Planning Managl'lr ce. Duea & Hanley PJ'opclties,. Ihc" 1091 Lincoln Ave" San Jose, CA 95125 Attachment: A. ARB findings <\T'l.' ACHMENcr A, . . ... FINJ)lNqSFQR ArJlROVA,L .. A,ltCIIITEC'ruRAL l{EVlltW llOARDSTAN])ARDS FOR REVIEW 2701 MiddlefieldRd./Flle No. 09FLN-00314 ArchitcclunilReview Finding~ The design and architecture Qfthe pmI10sed i{llprOvements,llscllndltioned, complies with the FhidingS fQr ArchitecrLlral Review as required in Cbapter 1836 onhe PAMe. (1) The design is consistent and compatible with upplicaple Clements of the' Palo Alto CO,m]ll;etrensive J'lan. The pl;ojeot is (;onsistent with PoJiQY 1,..,o: Encourage, hi&~ quality sign age that is ,(ttntclivc, appl'opriate'foJ: the loc(lIionuhd b,illillces visJ15ilityneeds with aesthetic needs. The design of Ihc'sign, materials. and co.\ors IItc·attractive and uppropliatc for the site und the s1l1'l'0unding neighborhood. (2) 'fhe design i~ compatible with the immediftte envitonment of the site. T)le design nnd plaGcment of the ~ign is consistent with the existing architcctund style tjf the bllilding. The colors and maielials have been desi,gned to be comlililtibk with the existing building. The proposed signs are located where existing signs were ]JrevlQusly approved to be located. , (3) 'rhe design is appropri!\l\: to the fUnction of th~ proj~et. io ll1ilt the s;ignsprovide identificatioJl for the business for both CUstOflll:)l'S traveJlng oil Middlefield ,Road and those in theslmpping cellter. The sign is consistent with the Sign Code Regulation Palo Alto Municipal code Chapter 16.20. (4) In areas consid¢red by the board a$ 11aving ~l unified desjgn character or histOl'kal cllaracter, the d¢sign is cOI11P(llible wiJIi stlchch;ifacter in that the c.hannel letters and halo illumination are cQmpatible with existing signage at the Midtown Shopping Cli'nter. Arcilitecr.ur(1./ Review finding,I' 5filrtJugh 16 (we lWt. applicable to thli project,. 2071 Middlefield Rd./09PLN-00314 ... l' 4M Agenda Date: March 4, 2010 From: Elena Lee, Senior Planner Attachment D Architectural Review Board Department: Planning and Community Environment Subject: 2701 Middlefield Rd. [09PLN·00314]: Request by All Signs Services, on behalf of Duca and Hanley Properties, Inc" for architectural review and recommendation to the Director of Planning and Community Environment of internally ilIurninated wall signs and fayade improvements for CVS Pharmacy. L.one District: CN(GF)(p) RECOMMENDATION Staff recommcnds that the Architectural Review Board (ARB) recommend the Director of Planning and Community Environment approve the proposed project with the attached findings based upon modification of lighting and attached conditions, including conditions requiring halo illumination and the immediateremoval of all unapproved signage. BACKGROUND Site Information' The existingCVS drugstore is located at the northeast comer of the intersection of Middlefield Road and Bryson Avenue. The building, which previously was occupied by Longs Drugs, is located within the Midtown Shopping Center. The eenter, which includes a Safeway supermarket and Walgreens drugstore, is a neighborhood serving, pedestrian orientep center. Currently, internally illuminated wall and window signs have been illegally installed on site, without the benefit of building permits and contrary to the conditions of approval issued with the sign permit approved in August 2009. Project Background On August 13, 2009, a staff level Architectural Review was conditionally approved for the installation of six "halo-lit" wall signs (measuring 58,55 sq. fl., 6.71 sq. ft., and 6.19 sq. ft.), two window signs and one direetional sign. The pennit also included the repainting of three existing metal awnings, This permit was associated with the rebranding of the sit,e from Longs Drugs to CVS Pharmacy. The pennit was not appealed and was deemed effective as of August 27, 2009. The original application proposed the six wall signs to be internally illuminated with light emitting diode (l.e,d.) lights. However, the pennit was conditionally approved requiring the plans to be revised to show halo light fixtures, The City approved a similar permit for halo lit wall signs was approved in August 2009 for the University Avenue CVS Pharmaey. The applicant has filed this application because of a desire to "legalize" internally illuminated wall signs they haveinstalled instead of halo- lit signs and because the period to appeal the restrictive lighting condition for the previous approval has ended. Because the applicant has submitted a new application, any decision from this , application would supersede the previous penuit. Project desclliption ,The purpose of this application is to ask the City to reconsider the internally illuminated I.e.d. wall signs instead of the halo-lit signs. The project includes the installation of two sets of signs consisting of three internally illuminated wall signs on the Middlefield elevation and the west parking lot elevation. Each set of signs consists of a larger (58,55 sq. ft.) "CVS/phannacy" sign in the center and flanked on either sides by a smaller 6.71 sq. ft. "Liquor" and 6.19 sq. ft. "Photo" signs. The new , signsconsistof channel letters painted in "CVS million dollar red" to match the corporate colors. Six metal awnings would be painted to match the new corporate colors. A new receiving door plaque sign would be installed on the north elevation and a new non-illuminated vinyl window sign would be affixed on a west elevation window. , Project review , 'Applications for the location and construction of signs are considered 'minor architectural review projects, typically reviewed at an administrative level without a pubic hearing, although any member of the public may request a hearing once a tentative decision has been made (Palo Alto MUnicipal Code 18.77 ,020(b». Because the applicant has objected to staff's approval requiring halo lighting, staff is seeking ARB and community feedback in a public hearing, rather than rendering a tentative decision: The ARB may visit the site after dark to evaluate the installation. DISCUSSION Palo Alto Municipal Code (PAMC) Chapter 16.20 regulates signage, including placement and size. According to PAMC chapter 16.20.090(b), signs also cannot advertise or display "the make, brand name or manufacturers name of any product, article, or service unless the same assists in and is done incidentally to the naming, designating or identifying of said business 'enterprise or calling." Bl?cause the "Liquor" and "Photo" signs are typically part of identifying tne CVS businesses and they do not constitute "make, brand name or manufacturer's name", they are therefore not prohibited. The proposed signs meet the size requirements of the PAMC, as indicated in the following table, Per PAMC Chapter 16.20.130, there may be any number of wall signs,butthey cannot exceed the maximum square footages identified in Table 3 of the Sign Ordinance. The proposed window sign would be allowed provided it does not exceed 20% of the total window space. The University Avenue CVS store is within a regionally-oriented shopping area and the halo-lighting appears to be sufficient for advertising the store. Sign Proposed Maximum Allowed Consistent Middlefield Elevation 71.45 sq. ft. total 80 sq. ft. Yes • (Wall Size: 1740 sq. i . ft.) ! , ... ~----- West Elevation 71.45 sq. ft. total 100 sq. ft. Yes (Wall Size:, 2500 sq. ! ft.) Because Midtown is one of the four identified neighborhood centers in Palo Alto serving the surrounding local neighborhood, signs have been subject to more detailed review than other areas, 2701 Middlefield Rd. Page 2 similar to the downtown. The importance of the neighborhood character of the Midtown shopping center is rccognized in the Comprehensive Plan. Accordingly, Program L-39 states that a plan should be developed for the Midtown area with a special emphasis on public improvements, parking, street furniture and' signage. Currently, no master sign program has been adopted for this area. As indicated above, the proposed signs meet the size requirements. The primary issue is the source of illumination. The majority of signs at the Midtown Shopping Center are not illuminated and are compatible with the neighborhood serving focus and the buildings. The signs lnMidtown that are illuminated are done so with halo lighting fixtures. The Midtown Walgreen signs were approved in 2002 to be illuminated with external lighting. The Midtown Safeway sign was also approved in 2002 with halo lighting. The original Longs Drugs sign was approved in 1997 to replace internally illuminated signs with new design featuring halo illumination. The property owner was cited in 1999 for the illegal installation of internally illuminated signs and required to replace the signs with the approved halo lighting. The August 2009 approval recognizes the prevailing Midtown lighting pattern. Rather than approve the application with a lighting condition and wait for the applicant's hearing request, staff now requests ARB feedback and recommends the conditions of approval requiring modification of the plans to incorporate halo lighting and removal of all illegal signage. The ARB may wish to comment on the proportions and composition of the signage and thc background ~hey are mounted on, even though the proposal (with the condition for.halo illumination) was previously approved. Although the proposal does not exceed the maximums described in the Palo Alto Municipal Code, one of the responsibilities of the ARB is to review and ensure per PAMC Chapter . 18.75.050 Finding 4 that "in areas considered by the Board as having a unified design character or historical character, the design is compatible with such character". Should the ARB find thesigns and internal illumination to be compatible with the Midtown lighting and signage design context, findings can be made by the ARB after public testimony is received. ENVIRONMENTAL REVIEW Pursuant to the requirements of the California Environmental Quality Act (CEQA), the project is categorically exempt from CEQA, per Section 15301, Existing Structures. ATIACHMENTS A. Draft ARB Findings. B. Draft conditions of approval C. Location Map D. Previous Sign Approval (09PLN-00077) E. Applicant's project description lettcr F. Project plans (ARB members only) Prepared By: Manager Review: Elena Lee, Senior Planner r§l-~ Amy French, AICP, Manager of Current Planninti../ COURTESY COPIES David Ford, All Sign Services 2701 Middlefield Rd. Page 3 ATTACHMENT A FINDINGS FOR APPROVAL ARCHITECTURAL REVIEW BOARD STANDARDS FOR REVIEW • 2701 Middlefield Rd.! File No. 09PLN-00239 Architectural Review Findings The design and architecture of the proposed improvements, as conditioned, complies with the Findings for ArchiU;ctural Review as required in Chapter 18.76 of the PAMC. (1) The design is consistent and compatible with applicable elements of the Palo Alto Comprehensive Plan. The project is consistent with Policy L-50: Encourage high quality signage , that is attractive, appropriate for the location and balances visibility needs with aesthetic needs. The design of the sign, materials, and colors arc attractive and appropriate for the site and the surrounding neighborhood. 1 (2) The design is compatible with the immediate environment of the site. The design and placement of the sign is consistent with the existing architectural style of the building. The colors and materials have been designed to be compatible with the existing building. The proposed signs are located where existing signs were previously approved to be located. (3) The design is apjJropriatelo the function of the project, in that the signs provide identification for the business ,for both customers traveling on Middlefield Road and those in the shopping , center. The sign is consistent with the Sign Code Regulation Palo Alto Municipal code Chapter , 16.20. . ' (4) In areas considered by the board as having a unified design character or historical character, the design is compatible with such character in that the channel letters and halo illumination are compatible with existing si gnage at the Midtowp Shopping Center. Architectural Review findings 4 through 16 are not applicable to the project, 2071 Middlefield Rd./09PLN-00314 j Attachment B 2701 Middlefield Rd.: CVS Pharmacy 09PLN-00314 Draft Conditions of Approval 1. The plans submitted for Building Permit shall be in substantial conformance with the ARB-approved plans dated received February 22, 2010 except as modified to incorporate these conditions of approval. 2. The wall signs shall ~ "halo-lit" (reverse pan channel lighting, such that the illuminated sign face shall appear essentially opaque). 3. A Building Permit is required for the illuminated signs. 4. The illegal internally illuminated wall and window signs shall be removed immediately. S. The directional sign shall not be used for advenising services. 6. Wall signs shall not exceed a thickness of ten inches . . 7. Not more than twenty percent of the total window space on a wall may be covered by window signs at any time. 8. The plans submitted for building permit shall state, "The contractor using the city sidewalk, alley or parking lot to work on an adjacent private building must do so in a manner that is safe for pedestrians and vehicles. The contractor must cone or tape-off the work area while still leaving adequate room for pedestrians and vehicles to safely pass. If the contractor's work area leaves insufficient sidewalk or alley space for safe pedestrian and vehicle passage, the contractor must apply to Public Works for an encroachment permit to close the sidewalk or alley." Attacbment C 2701 Middlefield Rd. Location Map The eil" Qf Palo Alto This map is a product of the C\ty 01 Palo Alto GIS -. • H' August 13, 2009 David Ford 124 Allimore Court Roseville, CA 95747 Attachment D City of PaloAlto Department of Planning and Community Environment Subject: CVS signage, 2701 Middlefield Rd., 09PLN·00077 Dear ML Ford: On August 13, 2009, the minor Staff·Level Architectural Review application for the project referenced below was conditionally approved by the planning staff on behalf of the Director of Planning and Community Environment, as it was found to meet the applicable Findings set forth in Palo Alto Municipal Code (PAMC) SectionJ8.76.0Z0(d). PROJECT DESCRIPTION: Request by All Sign Services, on behalf of Handley Properties, for a minor Architectural Review for repainting of three metal awnings and installation of six "halo-lit" wall signs (measuring 58.55'sq. fL, ,6,71 sq. ft and 6,19 sq.ft.)"two window signs and one directional sign. Environmental Assessment: Exempt from the provisions of CEQA. Zone District: CN(GF)(p). F1NDINGS FOR APPROVAL: The approval is based on the following findings: 1, The approval is based upon the finding that the proposed site improvements comply with the Standards for Review (PAMC Chapter l8.76.020(d) and design guidelines adopted by the . Architectural Review Board, Sign Ordinance (PAMC Chapler 16.20) and Downtown Urban Design Guidelines. 2. The approval of this project shall be subject to the following conditions: CONDITIONS OF APPROVAL: Planning Division 1. The plans submitted for Building Pennit shall be in substantial confonnance with the ARB· approved plans dated received April 16, 2009 except as modified to incorporate these conditions of approval. 2, The wall signs shall be "halo-lit" (reverse pan channel lighting, such that the illuminated sign face shall appear essentially opaque during daytime hours). Planning 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 650.329.2441 1i50,'!?9.?1.'i4 Transportation 250 Hamilton Avenue P.O. Box 10250 Palo Alto, CA 94303 650.329.2520 6506173108 Building 285 Hamilton Avenue PO, Box 10250 Palo Alto, CA 94303 650,329.2496 650.329.2240 2701 Middlefi"ld Rd. 09PLN-00077 Page 2 0[2 3. Prior to a submittal for a building permit, the applicant shall submit a color and materials board. 4. A Building Permit is required for the illuminated signs. 5. The directional sign shall not be used for advertising services. 6. Wall signs shall not exceed a thickness of ten inches. 7. Not more than twenty percent of the total window space on a wall may be covered by window signs at any time. 8. The plans submitted for buildingpermit shall state, "The contractor using the city sidewalk, alley or parking lot to work on an adjacent private building must do so in a manner that is safe for pedestrians and vehicles. The contractor must cone or tape-off the work area while still leaving adequate room for pedestrians and vehicles to safely pass. If the contractor's work area leaves . insufficientsidewalk or alley space for safe pedestrian and vehicle passage, the contractor must apply to Public Works for an encroachment permit to close the sidewalk or alley;" This Director's decision shall become final fourteen calendar (14) days following the date of this letter, unless a request for a hearing is filed pursuant to'PAMC Section 18.77.070(b)(4). Please contact the building division staff regarding building permits for the sign installation. Should you have any questions regarding this action, please do not hesitate to contact the project planner, Elena Lee, at (650) 617-3196. Sincerely, Hanley Properties. 1091 Lincoln Ave., San Jose, CA 95125 ATTACHMENT E CVS -2701 Middlefield Road We are proposing to replace the existing longs Drugs signs located at 2701 Middlefield Rd. with new signs for CVS!pharmacy. CVS has acquired the longs Drugs franchise and is in the process of rebranding all of the stores with new signs. CVS is proposing main signs that are a similar size to the existing longs Drugs signs (36" letter height), and the addition of two andllary signs on the main and secondary elevation (Photo, liquor). These ancillary signs are 18" le!tersets and are positioned to the left and right of the main sign. CVS is also proposing to replace the transom vinyl on the two entrances, the receiving plaque on the back door and repainting the existing awning to the CVS red. February 28, 2010 Lynn chiape11a 631 colorado Avenue palo Alto, CA 94306 Architectural Review Board City of palo Alto 250 Hamilton Avenue palo Alto, CA 94301 RE; 2701 Middlefield Road Dear Members of the ARB: AUachmentE CVS ARB 1etter.txt I hope that you had a chance to visit the Downtown and Middlefield sites of cvs/pharmacy to compare the colors selected, daytime appearance, and nighttime illumination. The Middlefield Road signage of 23 bright orange red characters is harsh during the day and eye-popping at nlght. At night this sign overwhelms all other signage in the shopping center including it's competitor wa1greens just a few hundred feet away. The size and proportlon of the sign is qUlte strlking as compared to any other approved sign in this neighborhood commercial shopping area which is only a few hundred feet from residences. In case someone missed seeing the disproportionately large sign on Middlefield Road, it is repeated above the front entrance door, along with another lighted sign that page 1 CVS ARB letter.txt says "MILK 289". At night the brightness of the cvs signs detracts from the lighted architectural tower at the corner of the building and blinds shoppers from seeing the other small shops with minimally lit rooftop signs, which are part ofa master sign program. others have requested what cvs is requesting: bigger, brighter, and bolder. compare that to previous ARB approvals for walgreens, safeway, and all other small businesses in the area. The "cvs million dollar red" color has no relation to the mauve(?) or purple red colors of the tower roof, cross bars holding the orange awning, decorative tiles along the pedestrian walkways that were part of the LONGS approval (photos included). You may recall that LONGS had to modify their signage color from "corporate red" to a softer red. The Downtown CVS red background appears to be a softer red color with blue or pink undertones as seen in daylight. Staff assures me that at night it is a very bright orange red. However, it was not lit Sunday 2/28/2010 at 8: 30 pm when I drove Downtown to see the co lor, whil e the Mi ddl efi el d sign in a neighborhood commercial area was brightly lit at 9:00 pm when I returned home. please reject the applicant's request to approve the current illuminated signage and require the applicant to return with signage which is compatible with the current building colors, tiles, architectural feature, mural, and with neighboring signage. It would also be nice if the awning extended out further over the pedestrian walkway to provide shade in the summer, reduce the heat island effect of the front parking lot, and reduce the glare from the interior light bulbs. The additional words "photo" and "Liquor", which appear on the Midtown sign do not appear on the Downtown sign or on any CVS signs in LOS Altos or Mountain view that I observed. The proportions of the cvs signage to building fa~ade at these other sites seemed less intrusive and more graceful. only the Midtown sign has ' advertising of liquor and photos which adds significantly to the jarring proportions of the cvs signage compared to any other ARB approved sign in Midtown or CVS signage in other communities. will you review staff findings, one through four, that the design of the cvs sign, as approved on August 27, 2009, is appropriate for a small neighborhood shopping area surrounded by housing and is consistent with the already approved signage in the area? I do not recall receiving any notice concerning this sign in July or August of 2009. If I had I would have requested a hearing or appealed the permit, as mentioned in the staff report on.page 1, paragraph 3, ,sentence 4. Lastly, the advertising of "liquor" and "photo" included in the cvs signage does not meet the former interpretation of PAMC 16.20.090, as applied to other businesses in palo Alto, and most particularly to walgreens and small businesses in Midtown. I seem to kreca 11 that Wa 19reens al so wanted.to i ncl ude si mi 1 ar 1 anguage in thei r, signage'. It seems patently unfair to change the rules in midstream, especially when it favors one competitor over another operating in the same shoppin!;! center. If this form of advertising is allowed. then why shouldn't SAFEWAY advertlse their pharmacy and liquor departments as p,art of their signa!;!e?And certainly Walgreens should be allowed to add "Liquor', "photo", "GrOcerles", or "Cosmetics" to their signage. " .. page 2 CVS ARB letter. txt please confirm with the city Attorney the interpretation of 16.20.090 so that all applicants receive the same interpretation. especially when operating competitively. sincerely, Lynn chhipella page 3 Architectural Review Board City of Palo Alto 250 Hamilton Avenue Palo Alto, CA 94301 Midtown Residents Association RE: 2701 Middlefield Road, ARB Meeting of March 4, 2010 Dear ARB members; March 3, 2010 The Midtown Residents Association (MRA) Steering Committee has the following comments about the CVS request for changes to the signage of its store at 2701 Middlefield Road. We have heard from several residents expressing concern about this issue. Our concerns: o CVS installed the cl,Irrent signage without any city approvals. We find this unacceptable. o CVS must conform to the conditions of approval required when Longs opened at this site. Nothing about the site has changed except the name of the company, thus the same rules shou.ld apply. o The signage does not conform to the sign guidelines in place for Midtown. The current signage is too bright for a neighborhood center in a residential ;area. At night the overwhelming brightness of this sign makes it hard to see the signage of other shops in the center. o Most residents think of CVS (as we did Longs) as primarily a drugstore and thus having the smaller signs of "Photos" and "Liquor" unnecessary. While not prohibited, emphasizing Liquor in particular in a neighborhood center frequented by teens is particularly inappropriate. This is not a strip mall where passing drivers need to be lured in to buy alcohol. Ironically, the liquor sign is placed right next to the teenage mural. o The current signage is ugly. The bright and garnish colors are suitable for a strip mall. They do not enhance the Midtown neighborhood center. The signage is not suitable for this location. We req uest that you: o Require the applicant to immediately remove the unpermitted signage. o Reject the applicant's request to approve the current illuminated signage as inappropriate for a neighborhood center and inconsistent with the existing approved signage in the center. o Require halo lighting (as they have 6n their University Avenue store). All other stores in Midtown with illuminated signs have had to meet this requirement. o Require that the signage be compatible with the Midtown Center's building colors, architectural features, the public art mural, and other stores' signage. o Confirm PAMC Chapter 16.75.050 Finding 4 that the design should be compatible with the character of the Midtown Center. Require the applicant to return with sign age which is compatible with the current building colors, tiles, architectural feature, mural, and with neighboring signage. We support the Draft Conditions of Approval listed in Attachment B of the staff report. Sincerely, Sheri Furman, MRA Chair Annette Ashton, MRA Vice-chair Attachment F The elq of Palo Alto Attachment G Location Map 2701 Middlefield Road CVS Pharmacy -. • TO: HONORABLE CITY COUNCIL 7 FROM: CITY MANAGER DEPARTMENT: HUMAN RESOURCES DATE: April 12, 2010 CMR:140:10 REPORT TYPE: CONSENT SUBJECT: Adoption of Two Resolutions to Incorporate a Side .Letter Agreement with the Palo Alto Peace Officers' Association (PAPOA) to ' Provide a Supplemental Military Leave Benefit to Pay for the Differential Between Regular Salary and Military Pay to PAPOA Members Called to Involuntary Active Duty Amending: (1) Section 1601 of the Merit System Rules and Regulations Regarding the 2007-2010 Memorandum of-Agreement and (2) the Compensation Plan for Police Non-Management Personnel (PAPOA) Adopted by Resolution No. 8779 RECOMMENDATIONS Staff recommends that the City Council adopt the attached resolutions to incorporate a side letter agreement with the Palo Alto Peace Officers' Association (PAPOA) to provide a supplemental military leave benefit for full-time regular police officers who are enlisted in a Military Reserve Program and are called to involuntary active duty as part of ongoing military operations prior to June 30, 20 I 0_ BACKGROUND The City of Palo Alto provides military leave benefits pursuantto the California Military and Veterans Code, Section 389, et seq_ Pursuant to this Code, the City is required to pay employees the difference between their military pay and their regular salary for the first 30 calendar days of active military service. Historically, the City has also maintained all available benefits for reservists on military leave during the first 30 days, although this additional provision is not required in all cases by state law _ In addition, during past operations the Council has approved the voluntary continuation of salary and benefits for II months beyond the 30 day requirement. This extension is expressly authorized by state law. CMR:140:10 Page 1 of5 Approval of the side letter agreement would allow payment of the salary differential to one reservist in P APOA who was unexpectedly called to involuntary active duty, but who would not qualify under existing policies. This agreement is less costly to the City than prior military leave provisions because it does not include extending benefits or vacation and sick leave accruals during deployment. The payment of the salary differential to employees called to active military duty for extended periods is consistent with the benefits provided by other local agencies. The Police Chief and Human Resources staff strongly support the continuation of the City's past practice of providing this salary differential. Particularly during this economic climate, it is in the interests of the City of Palo Alto and its workforce to ensure that employee reservists called to duty are able to serve with the knowledge that their families will not lose financial stability. DISCUSSION Currently, the City of Palo Alto has a Supplemental Military Leave Benefit which covers all employees who enlisted in the Military Reserves prior to February 18,2003 and have been called to active duty as a result of Operation Iraqi Freedom. This side letter agreement will allow the City to extend partial benefits of this policy to an employee who is a full-time police officer and a reservist in the U.S. Coast Guard, and who was unexpectedly deployed to Iraq on November 9, 2009 for a ten-month tour of duty. This employee does not qualify under the current policy because his enlistment date was after February 18, 2003. Currently, this employee is the only active reservist in P APOA. However, it is possible that additional P APOA members will be eligible for this benefit in the future. Under the proposed agreement, the salary differential between military pay and the employee's regular salary may be extended for up to eleven additional months after the first 30 days' pay. Additional pay after the first 30 days is authorized under Military and Veterans Code Section 395.03. Further, there is a provision in the City's Merit Rules and Regulations that provides for the City Council to offer supplemental benefits for up to one year "for reasons the Council, in its sole discretion, considers adequate and in the best interest of the City." (City of Palo Alto Merit Rules and Regulations, Chapter 8, Section 808.) Under these provisions, the City is permitted, but not required to offer supplemental pay after the first 30 days of military deployment. However, the extension of the pay differential for the full term of deployment has been the long-standing past practice of the City. In 2001, Council approved extension of salary and benefits to employees called to active duty "in CMR:140:10 Page 2 of5 recognition of the sacrifices made by employees called to serve their country." (CMR 440:01). Merit Rule No. 708 simply provides that the City will follow State and Federal law; however, the past practice of the City has been to provide both extended salary and benefits. Specific authorization for the extension of pay and benefits has been provided for individual military operations on a case-by-case basis. In this case, due to the current budget situation, the Police Chief and P APOA are not requesting an extension of benefits or accruals. According to State and Federal law, the City must hold the position of any deployed employee open for a least one year. The police department will backfill this position by paying overtime when necessary according to past practice when covering other types of absences such as disability leave, vacation, etc. Backfilling this position will likely result in minimal overtime costs (approximately SI5,000). If approved, this side letter agreement would provide the following: 1. The City would pay the differential between an employee's current regular pay (less accruals) and military pay received by the employee while on active military for nine months. 2. The City would provide this benefit retroactive to December 1,2009. RESOURCE IMPACT There is currently one employee who will benefit from this agreement. At this time, there are no other PAPOA members enlisted in the Military Reserve programs. This employee is expected to be on military leave for a total of ten months. As such, under the agreement, the City will pay the employee nine months of regular salary less nine months of accruals (sick, vacation and holidays) and less nine months of military pay. Benefits such as health care and retirement will not be paid. The City will realize a savings of S79, 062 compared to the budgeted total compensation for this employee over nine months. Salary will be reduced by military pay ($21,014) and the employee will not accrue benefits such as vacation, sick time or holidays ($10,723) for nine months. Finally, the City will not pay for benefits such as medical care, retirement, et al ($47,325). Total savings are calculated as follows: ---....... -~ ---....... -~ ..... -----....... ~.---....... -- CY!R:140:10 Page 3 or5 Total Budgeted Compensation -nine months Including salary, accruals, and benefits Less Military pay for nine months Accruals for nine months Benefits for nine months Total Reduction (savings) Net Pay $ 21,014 10,723 47,325 $ 79,062 $ 120,583 $ 41,521 Savings could potentially be offset by minimal overtime or backfilling the department may be required to make as a result of the employee's absence (approximately $15,000). Inadditioll, the savings should be viewed in the context of potentially lower service levels. However, the Chief of Police states that there will be minimal impact or cost in this case, and those costs can be recovered by the estimated savings shown above. POLICY IMPLICATIONS The Merit Rules require only that the City comply with both State and Federal law, but the past practice of the City has been to go beyond those minimal requirements. This agreement provides a continuation of that past practice, but at a reduced financial cost. Any future expansion of the current policies would require City Council approval. ENVIRONMENTAL ASSESSMENT This is not a project under the California Enviromnental Quality Act (CEQA). ATTACHMENTS 1. Resolution Amending Section 1601 of the Merit System Rules and Regulations Regarding the 2007-20 I 0 Memorandum of Agreement between the City of Palo Alto and the Palo Alto Peace Officers' Association, to Provide a Supplemental Military Leave Benefit for Members Called to Involuntary Active Duty ------........... _ ..... _-----........... -..... -------------- CMR:140:10 Page 4 of5 2. Resolution Amending the 2007-20 I 0 Compensation Plan for Police Non-Management Personnel (Palo Alto Peace Officers' Association) Adopted by Resolution No. 8779 to Incorporate a Side Letter Agreement to the 2007-20 I 0 Memorandum of Agreement with the Palo Alto Peace Officers' Association, to Provide a Supplemental Military Leave Benefit for Members Called to Involuntary Active Duty 3. Side Letter to the 2007-2010 Memorandum of Agreement Between the Palo Alto Peace Officers' Association and the City of Palo Alto DEPARTMENT HEAD: RUSSELL CARLSEN Director, Human Resources CITY MANAGER APPROVAL: ---,''-+-~''-'-~"-+---'''F----- CMR:140:10 JA Ci Page 5 of5 **NOT YET APPROVED** Resolution No. --Resolution of the Council of the City of Palo Alto Amending Section 1601 of the Merit System Rules and Regulations Regarding the 2007-2010 Memorandum of Agreement between the City of Palo Alto and the Palo Alto Peace Officers' Association, to Provide a Supplemental Military Leave Benefit for Members Called to Involuntary Active Duty The Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. amended to read as follows: Section 1601 of the Merit System Rules and Regulations is hereby "1601. Memorandum of agreement incorporated by reference. That certain memorandum of agreement by and between the City of Palo Alto and Palo Alto Peace Officers' Association, consisting of a Preamble and Sections I through 50 and Appendix A, for a telm commencing lu1y 1, 2007, and expiring June 30, 2010, as amended to provide a supplemental military leave benefit to pay the differential between regular salary and military pay to P APOA members called to involuntary active duty, is hereby incorporated into these Merit System Ru1es and Regulations by reference as though fully set forth herein. Said memorandum, as amended, shall apply to all employees in classifications of police officer trainee, poliee officer, poliee agent, and police sergeant, except where specifically provided otherwise herein. In the case of conflict with this chapter and any other provisions of the Merit System Ru1es and Regulations, this chapter will prevail over such other p:ovisions as to employees represented by said Palo Alto Peace Officers' Association." SECTIO)! 2. The Memorandum of Agreement ("MOA") incorporated into the Merit System Ru1es and Regulations by Section 1 of this Resolution amends the MOA incorporated into the Merit Rules by Resolution No.8778 by incorporating the side letter set forth in Exhibit "A," attached hereto and incorporated herein by reference. SECTION 3. The changes provided for in this resolution shall not affect any right established or accrued, or any offense or act committed, or any penalty of forfeiture incurred, or any prosecution, suit, or proceeding pending or any judgment rendered prior to the effective date of this resolution. II II 1/ 100202 sh 8261249 1 I I I **NOT YET APPROVED** SECTION 4. The Council finds that this is not a project under the California Environmental Quality Act and, therefore, no environmental impact assessment is necessary. INTRODUCED k'ID PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: City Clerk Mayor APPROVED AS TO FORM: City Manager Senior Deputy City Attorney Director of Administrative Services Director ofHurnan Resources lO0202 sh 8261249 2 **NOT YET APPROVED** EXHmIT "A" Side Letter to the 2007-2010 Memorandum of Agreement 100202 sh 8261249 SIDE LETTER TO THE 2007·2010 MEMORANDUM OF AGREEMENT BETWEEN THE PALO ALTO PEACE OFFICERS' ASSOCIATION AND THE CITY OF PALO ALTO WHEREAS, the Council of tire City of Palo Alto values the contributions made by its employee reservists called to serve their country; and WHEREAS, it is in the interests of the City of Palo Alto and its workforce to ensure that employee reservists called to duty are able to serve with the knowledge that their families will not lose salary; and WHEREAS, the City of Palo Alto has authorized supplemental military leave pay for eleven additional months at the time of prior U.S. engagements; and NOW, THEREFORE, P APOA and the City agree as follows: Section 1. The following provision is hereby added to the MOA as Appendix "A" to read as follows: Appendix" A" Supplemental Military Leave Benefit Effective December 1, 2009, any military reservist who is a member of PAPOA and is called to involuntary active duty prior to June 30, 2010 shall be eligible to receive a supplemental military leave benefit, paid by the City after the first 30 days of paid military leave, of the differential between the employee's current regular pay and all military pay received by the employee while on active military duty for up to eleven additional months. Palo Alto Peace Officers' Association City of Palo Alto, Subject to City Council Approval BY:~9Jy By: ________ _ Date: ________ _ Approved as to Form: By: ________ _ 100202 ,h 8261248 ** NOT YET APPROVED ** Resolution No. Resolution of the Council of the City of Palo Alto Amending the 2007-2010 Compensation Plan for Police Non- Management Personnel (Palo Alto Peace Officers' Association) Adopted by Resolution No. 8779 to Incorporate a Side Letter Agreement to the 2007-2010 Memorandum of Agreement with the Palo Alto Peace Officers' Association, to Provide a Supplemental Military Leave Benefit for Members Called to Involuntary Active Duty The Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Compensation Plan for Police Non-Management Personnel, adopted by Resolution No. 8779, is hereby amended to provide a supplemental military leave benefit to pay the differential betwcen regular salary and military pay to P APOA members ealled to involuntary active duty as set forth in Exhibit "A", attached hereto and incorporated herein by reference. SECTIOK 2. The Director of Administrative Services is authorized to implement the amended compensation plan 'as set forth in Section 1. II II II II II II II II 1/ II II II 100202 ,h 8261250 1 ** NOT YET APPROVED ** SECTION 3. The Council finds that this is not a project under the California Environment~ 1 Quality Act and, therefore, no environmental impact assessment is necessary. P.'ITRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk . Mayor APPROVED AS TO FORM: APPROVED: Senior Deputy City Attorney City Manager Director of Administrative Services Director of Human Resources 100202 sh 8261250 2 ** NOT YET APPROVED ** EXHIBIT "A" Side Letter to the 2007-2010 Memorandum of Agreement 100202 sh 8261250 3 SIDE LETTER TO THE 2007-2010 MEMORANDUM OF AGREEMENT BETWEEN THE PALO ALTO PEACE OFFICERS' ASSOCIATION AND THE CITY OF PALO ALTO \VHEREAS, the Council of the City of Palo Alto values the contributions made by its employee reservists called to serve their country; and . WHEREAS, it is in the interests of the City of Palo Alto and its workforce to ensure that employee reservists called to duty are able to serve with the knowledge that their families ""ill not lose salary; and \VHEREAS, the City of Palo Alto has authorized supplentental military leave pay for eleven additional months at the time of prior U.S. engagements; and NOW, THEREFORE, P APOA and the City agree as follows: Section I. The following provision is hereby added to the MOA as Appendix "A" to read as follows: Appendix "A" Supplemental Military Leave Benefit . Effective December I, 2009, any military reservist who is a member of PAPOA and is called to involuntary active duty prior to June 30, 2010 shall be eligible to receive a supplemental military leave benefit, paid by the City after the first 30 days of paid military leave, of the differential between the employee's current regular pay and all military pay reeeived by the employee while on active military duty for up to eleven additional months. Palo Alto Peace Officers' Association City of Palo Alto, Subject to City Council Approval BY:~\Uy By: _________ _ Date: '-\. -!., 1-0 Date:, _________ _ Approved as to Form: By: ___ ~. _____ _ 100202 sh 8261248 j 1 1 j TO: FROM: DATE: REPORT TYPE: SUBJECT: City of Palo Alto City Manager's Report -,'.-' .. - HONORABLE CITY COUNCIL . .. "" .: CITY MANAGER DEPARTMENT: UTILITIES APRIL 12, 2010 CMR: 191:10 CONSENT Approval of Utilities Public Benefit Three-Year Contract with OPOWER, . Inc. in the Total Amount of $574,083, $213,000 of Which Comes From Federal Stimulus Funds, for Administration and Delivery of Residential Home Energy Reports RECOMMENDATION Staff recommends that City Council: I. Approve and authorize the City Manager to execute the attached contract with OPOWER, Inc. for administration and delivery of residential Home Energy Reports. EXECUTIVE SUMMARY - . TIle Energy Efficiency Community Block Grant (EECBG) program was created by Congress in 2007 and was funded for the first time by the American Recovery and Reiief Act (ARRA) with an appropriation of $3.2 billion. On March 26, 2009, the City of Palo Alto was determined to be eligible to receive up to $663,000. The funds were received on October 27, 2009 for two demonstration projects as approved in the EECBG application: the early replacement of High Pressure Sodium (BPS) siI'eet lights on selected streets with Light Emitting Diode (LED) streetlights and the implementation of a Home Energy Report for residential customers. The EECBG funds allocated to the LED Streetlight Project and the Home Energy Report pi-oject are $450,000 and $213,000, respectively. Under the Home Energy Report project, six quarterly Home Energy Reports will be sent to City of Palo Alto Utilities residential customers. The first report will be sent with a letter introducing residential customers to the project and offering them the chance to continue participating or to opt out. If residents opt to participate, the Home Energy Reports they receive will compare their home energy usage to the . average energy used. by a similar borne, and to the average energy used by the most efficient similarly sized borne in a comparison group. Energy usage data. for individual bomes in the comparison gi'oup will not be ·repOlted, to protect customer pl1vacy. The first report and introductory letter will be sent to all residential customers, and futnre reports will only be sent to customers who did not opt out. Report data will also be available on a website for customer access via secure log-in. Water and greenhouse gas information are planned to be added at a futnre date. The cost of the project is $574,083 for project development and then two years of report delivery ($74,083 setnp .and $250,000 per year). . BACKGROUND The Long-term Electric Acquisition Plan (LEAP) objectives and guidelines set the direction for planning and managing the electric suppli portfolio, including the use of cost-effective efficiency as energy . resources. Cowlcil approved tbe LEAP Objectives and Guidelines in 2001 and 2002 (CMR:425:01 and CMR:398:02). Staff updates the Council on progress in implementing LEAP. The LEAP implementation tasks were most recently updated in March 2007 (CMR: 158:07). In addition, 'the City's Ten-Year Energy CMR: 191:10 Page 1 of4 I Efficiency Portfolio Plan, approved by Council in Apri12007 (CMR:2 I 6:07) identifies and sets high goals for gas and electric conservation !Old efficiency programs. An update of this Plan will come to Council in May 20 I 0 and also recommends large efficiency gains. . Home Energy Reports are issued by a variel;y of utilities, lncbiding the Saer!ll11ento Municipal Utility District (SMUD). These utilities have done comparative research on energy usage by customers who receive or do not receive the reports and have documented that customers who receive the reports reduced energy usage on average by about one to three percent. The Federal Government, including the President, has also expressed interest in these reports .as ways of encouraging energy conservation and efficiency. The Energy Efficiency Community Block Grant (EECBG) program, created by Congress in 2007 and funded by the· American Recovery and Relief Act (ARRA) with an appropriation of $3.2 billion., administered by the U.S. Department of Energy (DOE), provides federal grants to units of local .government, Indian tribes, states !Old territories to reduce energy use aud fossil fuel emissions, and for improvements in energy efficiency. . . On March 26, 2009, DOE allnounced 1I1e EECBG formnla grant allocations, and the City of Palo Alto was detennined to be eligible to receive up to $663,000. The Cil;y of Palo Alto received ftmds on October 27, 2009 for two projects. The two demonstration prqjects approved in the EECEG application include 1I1e early replacement of High Pressure Sodium (lIPS) street lights on selected streets with Light Emitting . Diode (LED) streetlights, and the implementation of a Home Energy Report for residential customers. The EECBG funds allocated to the LED Streetlight Project and the Home Energy Report project are $450,000 and $213,000 respectively, DISCUSSION In October 2009, the Cil;y issued a Request for Proposals (RFP) seeking responses from organizations interested in providing the home energy reports. An evaluation committee of CPAU staff members reviewed 1I1e firms' qualifications and submittals in response to 1I1e criteria identified in the RFP. The committee evaluated the firms based on six main criteria consisting of qualil;y of service proposed, cost, location of the vendor, qualifications of the consultant, experience, and the financial capabiJil;y of the company to deliver 1I1e services requested in the Request for Proposal. Of the two responses received, OPOWER's was ranked first primarily due to the company's extensive experience ill implementing Home Energy Reports for utilities. SummarY of Solicitation Process Proposal DescriptionINumber Home Energy Report, RFP Number 134341 Proposed Length ofP'Qject I Up to 5 Years i Number of Proposals 'Received: : Two Company Name Location (City, Program Description Points Out of State) SOOP .... il>l. 1. OPOWER ~~!!ll!0nLYA __ .. Produce I) quarterly Home Energy 402 I-,----~-.--... --.-.. ---$574,083 for project Reports to residents comparing electric development and and natural gas usage with similar Comparable Proposal Amount Submitted then two years of homes. Delivered by mail and on web· product report delivery years site. Water and greenhouse gas to be delivered at ($74,083 setup and 20+ utilities $250 000 per year) added at a future date. 2. Ennovatianz M~!!!!.tail} V~'!.'".g.!L Develop product to deliver 2 residential 238 . ._ .. _ .... _--_ .. __ ... __ ._.-... _. __ ._--- : reports on energy usage or 5 a borne No product yet Proposal Amount Submitted $198,000 for one . energy/water audits and small developed and year : commercial benclunarking no experience • dlltll\)aselreports. OPOWER was selected for this project due to expertise wi1l1 delivery of similar programs at a variety of 01l1er municipally and investor owned utilities, inCluding SMUD mentioned in the background. CMR: 191:10 Page 2 of 4 i 1 I I I The project will be complete;i as follows: Task 1: Deploy tachllicallnfrastructure OPOWER will install and configure all necessary hardware, software and network infrastructure for the delivary of the Home Energy Reports and OPOWER Custoiner Portal in conjunction with City of Palo Alto's (CPA) IT Department. OPOWER will host servers on a secure site. Task 2: Select pilot regions agd acquire 31'4 party data OPOWER will perform historical energy usage, demographic and geographic research, in conjunction with CPAU, to identity the regions of CPAU's territory best suited to deploy the pilot program. Zip codes, city, and county boundaries will be considered so as to optimize data coverage and ensure speedy deployment .. Data bases researched for this data will be from public sources such as census records. Task 3: Design optimization, segmentation and targeting plan OPOWER will work with CP AU to optimize targeting of rebates programs and energy water saving recommendations. Key metrics, ·such as internal and external cost per acquisition, will be used to improve this targeting effort where possible. OPOWER will use energy, housing, and demographic data and available past utility program participation data. to design a multi-dimensional segmentation plan based on: o Energy consumption patterns (e.g. normalized high seasonal peak, high base load, etc.). No individual customer information will be available Of identified. Customers will only be able to eompare their own data against an average sample. o Publicly available bousing data (e.g. age of house, size of house, value of home, type of constructil)n, presence of a pool, preSence of a garage). o Past program participation & rebate redemption (e.g. ENERGY STAR® rated appliarice and other rebates; rate assistance programs, etc.), wben available; and o Publicly available demographic data (e.g. renter vs. bomeowner, presence of children in the household, indicators of interest in environmental issues, age of customer, duration of residence, socioeconomic/income levels, as available). Task 4: Integration of prggram rnaWtlng for Home Energy Reports and OPOWER Customer Portal. OPOWERwill work with CPAU to target rebates, programs, and recommendations in the Home Energy Reports and through the OPOWER Consumer Portal. Updates to marketing materials will be implemented as needed. Rebates recommendations will be targered to customers based· on individual usage patterns. All residential customers will receive a first letter introducing them to the Program and offering them the option to opt out of future reports. Customers must lpg-on to the portal to achieve the benefits of this program. ' Task 5: Deploy OPOWIR CSRPortal OPOWER will provide its customer web portal to support the Home Energy Reports and conduct on-site trairdng of customer service staff on using this interface. Task 6: Implement Aut9Jllllted Data Transfer OPOWER and CPAU will jointly develop, implement, and finalize a protocol for regular, secure transfer of data from CPAU to OPOWER in 'a mutually agreed upon format(s). OPOWER will maintain data confidentiality and will use sample averages in comparison with individual customer billing histories, It . is expected that transfers will come from the two CPAU billing Systems (Banner for inforination previous to May 2009 and SAP for information from May 2009). Program participation rates will come from Excel and Access databases. CMR: 191:10 Page 3 of4 I 1 I Task 7; Inte!!rate Utility data streams and Dlm.late Insight Engine The Insight Engine is the back-end data services and anaIytics engine that powers OPOWER's customer facing applications, including both the online and offline components of the Home Energy Reporting System, for all OPOWER. clients. OPOWER will integrate data received from CPAU with third party data and populate the Insight Engine. RESOURCE IMPACT The cost of the project is $574,083 for project development and then two Years of report delivery ($74,083 setup and $250,000 per year). $213,000 will be funded by the federal stimulus funds (ARRA) and the remaining $361,083 will be funded by tbe Public Benefit program areas in both the Electric and Gas Funds Alternate Resources Supply Funds. Contract funding for initial setup is includad in the FY 09110 Electric and Gas Fund budgets for Public Benefit Programs. Funds for subsequent years will be subj eet to appropriation qf funds in subsequent budgets. Contract costs will" include program development, implementation, and some energy incentives payments. POLICY IMPLICATIONS The proposed contracts support the Council-approved Gas Utility Long-Term Plan, the Ten-year Energy Efficiency Portfolio Plan, the Long-term Electric Acquisition Plan, and Comprehensive Plan Goal N-9. Implementation of efficiency programs support greenhouse gas reduction goals identified in the Palo Aho Climate Protection Plan and in the California-Global Warming Solutions Act of 2006 (AD 32). ENVIRONHENTALREVIEW The provision of these services do not constitute a project pursuant to Section 21065 of the California Public Resources Code, thus no environmental review under CEQA is required. AlTACBMENT A. Contract PREPARED BY: REVIEWED BY: DEPARTMENT APPROVAL: CITY MANAGER APPROVAL: CMR: 191:10 ~ \l • l\ ~OYCE KINNEAR r Utility Marketing Services Manager TOM AUZENNE Page 4 of 4 ATTACHMENT A CITY OF PALO ALTO CONTRACT NO.: CI0134341 AGREEMENT BETWEEN THE CITY OF PALO ALTO AND OPOWER, INC. FOR PROFESSIONAL S.ERVICF13 . HOME ENERGY REPORTS This AGREEMENT is entered into on this 3rd day of May, 2010, by and between the CITY OF P ALO ALTO, a California chartered municipal corporation ("CITY"), and OPOWER, INC., a Delaware corporation, located at 1515 North Courthouse Road, Suite 610, Arlington, VA 22201 ("CONSULTANT"). RECITALS The following recitals are a substantive portion of this Agreement. A· CITY intends to provide Home Utility Usage Reports for residential customers to identify energy and water savings ("Project',) and desires to engage a consultant to configure, design and implement a program in connection with the Project ("Services''). B. CONSULT ANT has represented that it has the necessary .professional expertise, qualifications, and capability, and all required licenses and/or certifications to provide the Services. C. CITY in reliance on these representations desires to engage CONSULTANT to provide the Services as more fully described in Exhibit "A", attached to and made a part of this Agreement. NOW, THEREFORE, in consideration of the recitals, covenants, tenns, and conditions, this Agreement. the parties agree: AGREEMENT SECTION 1. SCOPE OF SERVICES. CONSULTANT shall perform the Services described in Exlubit "A" in accordance with the tenns and conditions contained in this Agreement. The performance of all Services shall be to the reasonable satisfaction of CITY. SECTION 2. TERM. The term of this Agreement Shall be from the date of its full execution through completion of the services in accordance with the Schedule of Performance attached as Exhibit "B" unless temrinated . earlier pursuant to Section 19 of this Agreement. Professional Services Rev. September 2009 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 of this 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 CONSUL rANT for performance of the Services described in Exhibit "A", including both payment for professional services and reimbursable expenses, shall not exceed Five Hundred Seventy Four Thousand Eighty Three Dollars ($574,083). Additional Services, if any, shall be authorized in accordance with and subject to the provisions of Exhibit "C".CONSULTANT shall not receive any compensation for Additional Services performed without the prior written authorization of CITY. Additional Services shall mean any work that is determined by CITY to be necessary for the proper completion of the Project, but which is not included within the Scope of Services described in Exhibit "An. SECTION S. INVOICES. In order to request payment, CONSULTANT shall submit monthly invoices to the CITY deacribing the services performed and the applicable charges (including an identification of persOlUlel who performed the services, hours worked, hourlyrates, 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 sha1l send all invoices to the City's project manager at the address specified in Section 13 below. The City will generally process and pay invoices within thirty (30) days of receipt Notwithstanding the foregoing, half the annual license fees listed in Exhibit "C" shall be due and payable upon execution of this Agreement. SECTION 6. QUALIFICATIONS/STANDARD OF CARE. Ail of the Services shall be perfonned 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 sllfficient skill and expcrience to perform the Services assigned to them. CONSULTANT represents that it, its employees and subconsultants, ifpernutted, 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 professional standard and quality that prevail among professionals in the same discipline and of similar knowledge and skill engaged in related work throughout California under the same or similar cireumstences. Professional Services Rev. September 2009 2 \\Cc-!ern;\slwredIASDIPURCHISOUCITATIONSICURRENTIlUYER·CM FOIDERS\UTlllTlES· CARDLYNNIRFP,I134341 Ikme Enerl!J' Reports\FINALCONTRALi'.doc SECTION 7. COMPLIANCE WITH LAWS. CONSULT ANT shall keep itselfinfonned of and in compli\l.Dce 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 perfonn Services under this Agreement. CONSutTANT shall procure all permits and licenses, pay all charges and fees, and give all notices required by law in the perfonnance 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 CONSULTANT, If CONSULTANT has prepared plans and specifications or other design documents to construct the Project, CONSULTANT shall be obligated to correct any and all crrors, omissions or ambiguities discovered prior to and during the course of construction of the 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"10) . of the CITY's stated construetion budget, CONSULTANT shaJl 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 byor contracted with CONSULTANT to furnish labor andlor 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 CONSULTANT are material considerations forthis Agreement CONSULTANT sha1l not assign or transfer any interest in this Agreement nor theperfonnance of any of CONSULTANT's obligations hereunder without the prior written consent of the 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. SUBCOt'l'TRACTING. Notwithstanding Section 11 above, CITY agrees that subcontractors, including third-party service providers, may be used to complete the Services. The subcontractors initially authorized by CITY to perform work on this Project are those used by CONSULTANT in its nonnal course of business, including, but not limited to, those performing printing, mailing, dsta storage an~ other data services. 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 fur all acts and omissions of a subconsultant. CONSULTANT shall change or add subconsultants only with the prior approval of the city manager or his designee. ) Prof~ia:nal Services Rev. September 2009 1\Cc-olmlshlltCdlASDIPURCH\SOLlCfrA TlONSICURl<ENT BUYER·CM FOLDERSIl.1Tl11TIES • CAROL YNN\RFI'sl134341 Han. Energy Rep ..... IFlNAL.CONTRACT.doc SECTION 13. PROJECT MANAGEMENT. CONSULTANTwlllassignChrisPattonasthe Client Solution Manager to have supervisory responsibility for the performance, progress, and execution of the Services to represent CONSULTANT during the day-to-day work on the Proj ed. If circumstances cause the substitution of the project director, project coordinator, or any other key personnel for any reason: the appointment of a substitute proj ect <lirector and the assignment of any key new or replacement personnel will be subject to the prior written approval of the CITY's proj ect manager. CONSULTANT, at CITY's request, shall promptly removcpersonnel who CITY finds do not perform the Services in an acceptable manner,are uncooperative, or present a threat to the adequate or timely completion of the Project or a threat to the safety of persons'or property. The City's project manager is Joyce Kinnear, Utilities Department, Marketing Services Division, 250 Harniltnn Avenue, Palo Alto, CA 94303, Telephone: (650)329-2652. The project manager will be CONSULT ANT's point of contact with respect to performance, progress and execution of the Services. The CITY may designate an alternate project manager from time to time. SECTIeN 14. OWNERSmp OF MATERIALS. Refer to Exhibit "En for complete terms and conditions of OPOWER Licensing Agreement. SECTION 15. AUDITS. CONSULTANT will permit CITY to audit, at anyreasonabletimcdoring the term oftbis Agreement and for three (3) years thereafter, CONSULTM'T'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 termination of this Agreement. SECTION 16. INDEMNITY. 16.1. To the fullest extent permitted by law, CONSULTANT shall protect, indemnifY, defend and hold harmless CITY, its Council members, officers, employees and agents (each an "Jndennrified 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 coats and expenses of whatever nature including attorneys fees, experts fees, court costs and disbursements ("Claims") resulting from, arising out of orin any manner related to performance ornonperforrnance 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. Notwithatanding the above, nothing in tbis Section 16 shall be construed to require CONSULTANT to indemnity an Jndenmified 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 anyhreach or violation of any covenant, term, condition or provi sion of this Agreement, or of the provisions of any ordinance or law, will not be deemed In be a waiver of any other term, covenant, condition, provisions, ordinance or law, or of ~ Professional Services Rev_ January 2009 \\C .. telTll\<;har.dlASD\PURCH\SOUClTATIONs\cURRENT BUYER-eM FOLllERSIUTIUTIES -CAROLYNNIRFPsl134341 H<rn' Energy Report<>\FThlALCONTRACT.doc any subsequent breach or violation of the same or of any other term, covenant, condition, provision, ordinance or law. SECTION 18. INSURANCE. I S.l. 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. IB.2. All insurance coverage required hereunder shall be provided through carriers with AM Best's Key Rating Guide ratings of A-:Vn or higher which are licensed or authorized to transact insurance business in thc State ofCalifomia. 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. IB.3. Certificates evidencing such insurance shall be filed with CITY conCurrently with the execution of this Agreement. The certificates will be subject to the approval of CITY's Risk Manager and will contain an endorsement stating that the insurance is primary coverage and will not be canceled, or materially reduced in coverage or limits, by the insurer except after filing with the Purchasing Manager thirty (30) days' prior written notice of the cancellation. or mndification, CONSULT ANT 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. IB.4. The procUring of such required poliey or policies of insurance will not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions of this Agreement Notwithstsnding the policy or policies of insurance, CONSULT ANT will be obligated for the full and total amount of any damage, injury, or loss caused by or directly arising as a result of the Services performed under this Agreement, including such damage, injury, or loss arising after the Agreement is terminated or the teon has expired. SECTION 19. TERMINATION OR SUSPENSION OF AGREEMENT OR SERVICES. 19.1. The city manager may suspend the performance of the Services, in whole or in part, or teoninate this Agreement, with or without cause, by giving ten (1 0) days prior written notice thereof to CONSULTANT. Upon receipt of such notice, CONSULTANT will immediately discontinue its performance of the Services. 19.2. CONSULTANT may terminate this Agreement or suspend its performance of the Serviees by giving thirty (30) days prior written notice thereof to CITY, but only in thc event of a substsntial failure of perforrnanee by CITY. 19.3. Upon such suspension or termination, 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 Profe.,sional Services Rev.Sepbonher2009 \\Cc''''rTlIlaharedIASDIPURClI\SOLlClTATIONSICURRENI BUYER-eM FOLDERS\UTIUTlES· CAROL YN1'MFP,\u4341 Home Energy Rtlpor1s\FINAL.CONTRACT ,doe CONSULTANT or its contractors, if any, in connection with this Agreement Such materials will become the property of CITY. . 19.4. Upon such suspension or termination by CITY, CONSULT ANT will be paid forthe 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 temrination; provided, however, if this Agreement is suspended or tenninated on account of a default by CONSULTANT, CITY will be obligated to compensate CONSULTANT only for that portion of CONSULT ANT's services which are of direct and immediate benefit to CITY as such determination 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 herermder will be given in writing and mailed, postage prepaid, by certified mail, addressed as follows: To CITY; Office of the City Clerk City of Palo Alto Post Office Box 10250 Palo Alto, CA 94303 With a copy to the Purchasing Manager To CONSULTANT: Attention of the project director at the address of CONSULTANT 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, which would conflict in any manner or degree with the performance of the Services. 21.2. CONSULTANT further covenants that, in the performance of this Agreement, it will not employ subconsultants; contractors or persons having such an interest. CONSULTANT certifies that no person who has or will havc any financial interest under this Agreement is an officer or employee of CITY; this provision will be interpreted in accordance with the applicable provisions of the Palo Alto Municipal Code and the Govermnent.Code of the State of California. 21.3. If the Project Manager determines that CONSULTANT isa "Consultant" as that term is defined by the Regulations of the Fair Political Practices Cormnission, CONSULTANT shall be required and agrees to filc the appropriate fmancial disclosure documents required by the Palo Alto Municipal Code and the Political Reform Act. SECTION 22. NONDISCRIMINATION. As set forth in Palo Alto Municipal Code section Professional Service& Rev. Sepl<_ lOO9 \\Cc-temI\sharedIASOIPURCHISOUCITA TIONSlCURRBNT BUYER-CM FOLD!lRSIUTILlTlllS • CAROL YNN\RFP,\134341 H<me Energy ReporlJiIFlNAL.CONTRACT.noc 2.30.510, CONSULTANT certifies that in the perfonnance of this Agreement, it shall not discriminate in the employment of any person because of the race, skin color, gender, age, religion, disability, natiornU origin. ancestry, sexual orientation, housing status, marital status, familial status, weight or height of such person. CONSULTANT acknowledges that it has read and understands the provisions of Section 2.30.510 of the Palo Alto Municipal Code relating to Nondiscrimination Requirements and the penalties for violation thereof, and agrees to meet all requirements of Section 2.30.510 pertaining to nondiscrimination in employment. 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 enviromnentallytoxic products, as well as have less packaging. CONSULTANT will adhere to the standard that printed materials will be, at a minimmn, printed on 30% post consumer recycled paper with vegetable based ink. The designer will check with the project manager to discuss the maximmn recycled content paper available for each project. FSC (Forest Stewardship Council) certified paper that is "process free" is preferred. CONSULTAt"\lT will use methods that reduce energy use and thus the carbon footprint for the development, production and delivery of products. CONSULT ANT shall adhere to . the City's Enviromnentally 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. 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 instrmnent, 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 fmds 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 incorporsted in this Agreement and will be deemed to be a part of this Agreement. Professional Servit;:eJj Rev, September 2009 \\Cc·terralsh,red\ASD\PURCHISOUCITA TIONSICURRENT BUYIlR.cM FOLDERSIUTIUTIES • CAROLYNN\RFPs\l34341 Hane Energy Reports\FlNAL.CONTRACf.doc 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 tenninate 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 If, pursuant to this contract with CONSULTANT, City shares with CONSULTANT personal infonnation as defined in California Civil Code section 1798.81.5(d) about a California resident ("Personal Information"), CONSULTANT shall maintain reasonable and appropriate security procedures to protect that Personal Information, and shall inform City immediately upon learning that there has been a breach in the security of the system or in the security of the Personal Information. CONSULTANT shall not use Personal Information for direct marketing purposes beyond the scope of services attached in Exhibit "A" without City's express written COllSent. 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 City Manager or Designee APPROVED AS TO FORM: ~-..... ~--=--:------Senior Ass!. City Attorney Attschments: EXHIBIT "A": . EXHIBIT "B": EXHffiIT "C": EXHIBIT "D"; EXHffiIT"E": SCOPE OF WORK. SCHEDULE OF PERFORMANCE COMPENSATION INSURANCE REQUIREMENTS LICENSE AGREEMENT Ptofess'iooa! Services ·Rcv. Scptemb ... 2009 \\o:-IemI\SharedIASD\PURCIl\SOUCITATIONSlCURRBNT BUYER-CM FOLDERS\UTlLlTlES • CAROL YNNIRFPs\134341 Halle Enerl!Y ReportsIFlNAL.CONTRACT.doc ; EXHIBIT "A" SCOPE OF SERVICES PHASE 1 A: INFRASTRUCTURE AND PRODUCT CUSTOMlZATlON Task 1 i Deploy tecbnical infrastructure OPOWER shall install and configure all necessary hardware, software and network infrastrUctnre fur the delivery of the Home Energy Reports and OPOWER Customer Portal in conjunction with City of Palo Alto's (CPA) IT Department. . Task I Details: In coordination with CPA's IT Department, OPOWER shall set up and configure the t!lChnical infrastructure: ' • Requisition and conflgUre OPOWER servers. • Install and configure required underlying software (e.g. database server, application server, web server, etc) • Install and configure multi-layered backup system • ·Extend and secure networking topology. Harden networked servers and implement operations processes and access controls • All servers will hosted be on OPOWER's server network and no servers will be hosted on CPA systems Task 1 DeJiyerables: • Fully deployed hardware and software infrastructure ready for program launch Task 2: Select pilot regions and acquire 3'" party data OPOWER shall pcrfonn historical energy usage, demographic and geographic research, in co~unction with CPAU" to identify the regions ofCPAU's territory best suited to daploYthe pilot program. Zip codes, city, and county boundaries will be considered so as to optimize data coverage and ensure speedy deployment. Task 2 Details: OPOWER shall identify program regions: • CP AU has approximately 25,000 Electric residential customers. The initial plan is for approximately 25,000 customers to receive duel fuel (electricity and gas), paper Home Energy Reports (HER) and the OPOWER Consumer Portal website. Control groups will also be established for each type of customer, through a synthetic control group or other standard M & V methodology. The final split will be agreed to based upon program goals and by mutual consent. • Analyze demographic, geographic, and local data coverage rates to select optimal regions fur the program. Profdilliona1 Services Rev. September :2009 \\Cc-rerra'sh".dIASDIPURCHlSOLIC1TATIONSICURRENT BUYER-CM FOLDERSIUTlLlTlflS • CAROLYNNIRFP,I134341 H""" Energy Report&\FlNAL.CONTRACT.doc • Acquire housing data from 3nl party providers and county assessor offices in pilot region • Acquire demographic data from 3rd party providers for pilot region • Extend geocoding licenses to selected areas Task 2 Deliverables: • Selected pilot regions with accompanying 3rd party data sample. Task 3: Design optimization, segmentation and targeting IIlan. OPOWER shall develop an analytically grounded segmentation plan to optimize targeting of Utility programs and recommendations. Task 3 Details: OPOWER and CP AU shall: • Compile available analysis of previous marketing campaigns used to market CPAU rebates, programs and energy/water saving recommendations. Where possible, key metrics, such as internal and external cost per acquisition, will be provided to better inform targeting efforts. OPOWER shall: • Use energy, housing, and demographic data and available past program participation data to design a multi-dimensional segmentation plan of Designated Customers based on: o Energy consumption patterns (e.g. normalized high seasonal peak, high base load, etc.) o Housing data (e.g. age of house, size of house, value of home, type of construction, presence of a pool, presence of a garage) o Past program participation & rebate redemption (e.g. ENERGY STAR appliance and other rebates; rate assistance programs, etc ), when available o Demographic data (e.g. renter vs. homeowner, presence of children in the household, indicators of interest in environmental issues, age of customer, duration of residence, socioeconomic/income levels, as available) • Identity high-potential prospects for program marketing by profiling historical participants and available historical marketing campaign results. Task 3 Dcliverables: • Designated Customer segmentation and targeting plan summary. Task 4: Integration of prow am marketing for Home Energy Reports and OPOWER Customer Portal. OPOWER shaH work with CPAU to target CPAU rebates, prognuns, and recommendations in the Home Energy Reports and through the OPOWER Consumer Portal. Updates to these marketing materials will be iroplemented as nccded. Ta.k 4 Details: Profe.!lSJ011al Services Rev. September 2009 1\Q:-!err,lsboredIASDlPURCflISOLlCITA TlONSICURRENT BUYERoCM FOLDERSIUTILITlES • CAROLYNNIRFPsll34341 Hane En"lll' IwportsIFINAL.CONTRACT.doc OPOWER and CPAU shall: • Compile a comprehensive list of rebates, programs, and recommendations for inclusion in the Home Energy Reports and the OPOWER Customer Portal. OPOWER shall: • Brand the Home Energy Reports and OPOWER Consumer Portal with the CP AU logo according to CPAU's branding style guide. • Integrate CPAU,s rebates, programs, and recommendations into OPOWER'g offer and tip database fur presentation on the Home Energy Reports and OPOWER Consumer Portal. • Update rebates, programs, and recommendations, as needed, by material changes in program structure or availability of program funds. Task 4 Deliverables: • Sample Home Energy Re:t:iort branded with the CPAU logo, according to CPAU's style guide. • OPOWER Consumer Portal branded with the CP AU logo, according to CP AU's style guide. CPAU marketing materials and efficiency programs integrated and formatted for use in OPOWER's Action Steps database. • Periodic updates of marketed CP AU efficiency programs and campaigns as required. PHASE I D: PRODUCT INTEGRATION AND CUSTOMJZA110N Tasks in Phase m will need to occur in parallel with Phase IA, as they often require greater time for completion. Task 5; DeplOY OPOWER CSR Portal OPOWER shall provide its OPOWER CSR Portal to support the Home Energy Reporting System, and conduct on-site training of customer service staff on using this interface.: Task 5 Details: OPOWER shall: .Create and permission password-protected accounts for customer service representatives and customer service managers. OPOWER shan not be providing customer sqvice representatives for this program, as they will be provided by CP AU's Utility Marketing Services and Customer Service Representative staff. .Conduct eight-hours of on-site training session. Task 5 Deliverables: .Configured and deployed OPOWER CSR Portal .Onsite training day (8 hours). Task 6: Implement Automated Data Transfer OPOWER and CPAU shall jointly develop, implement. and fmalize a protocol for regular, secure Profossional Services Rl:v. Seplllmbcr 2009 \\Cc·terr.lsh"edIASDIPURCII\SOUCITATIONSICURRENT BUYER.cM FOWERSIUTlLlTlES· CARDLYNNIRFP,\134341 Htme Energy RepOl11i\FINAL.CONTRACf.doc transfer of data from CPAU to OPOWER in a mutually agreed upon format(8). It is expected that tdlllsfers will come from the two CP AU billing Systems (Banner for infurmation previous to May 2009 and SAP for information from May 2009). In addition, program participation rates will come from Excel and Access databases. . Task 6 Details: • Establish secure, firewalled connection (e.g., sftp, ssh) between OPOWER servers and CPAU data center for secure transmission of data. OPOWER and Utility shall jointly develop data transfer protocols: • Develop the list of data elements owned by CP AU (e.g., electricity usage and billing data, gas u,sage and billing data, energy efficiency program participation) and mutually agreed upon data funnats for each to be used in the project implementation. Transfer protocols will need to be developed for data coming from both the electricity and the gas infonnation systems. • Establish a process for the initial transfer of historical data from CPAU to OPOWER. The expected data transfer will include 12+ months of energy usage data (back to January I, 2009, as available) and customer identifYing data (address, account #, etc) for the customers from which Designated Customers, neighbors and control groups will be developed. OPOWER shall follow CP AU's confidentiality requirements fur customer data and will sign a non-disclosure form. OPOWER shall notify CP AU immediately if any leak of customer data is suspected, so that all customers may be immediately notified. • Establish an ongoing process for energy usage updates for the selected groups of Designated Customers and customers in the neighbor and control groups: • Establish an ongoing process for notification of all new Customers and all Customers that have ended their relationship with CP AU. Task 6 Deliverables: Task 6A Deliverables: Electricity deployment • Establish secure, firewalled connection (e.g., sftp, ssh) between OPOWER servers and City of Palo Alto data center for.secure transmission of electricity data, in coordination with the CPA IT group. • OPOWER receives initial historical energy data and other agreed upon data elements via established, secure connection. • OPOWER and Utility establish a sehedule for ongoing automated data update processes . for new, continuing, and departing Customers. Task 6B Deliverables: Gas deployment • Establish secure, firewalled connection (e.g., sftp, 5sh) between OPOWER servers and City of Palo Alto data center fur secure transmission of gas data, in coordination with the CPAUIT group. • OPOWER receives initial historical energy data and other agreed upon data elements via established, secure connection. OPOWER and Utility establish a schedule for ongoing automated data update processes Prflfessional Sen-ices Rev_September 2009 IICc-tella\;baredlASD\PURCHlSOLlClTA T10NSlCURRENT BUYER.cM FOLDljRSlUTJUTIES -CAROLYNN\RFP,\J34341 Heme Energy Report,\Io1NAL.CONTRACT.doo for new, continuing, and departing Customers. Task 7: Intel!rate Utility data streams and populate Insight Engine The Insight Engine is the back-encl clata services ancl analytics engine that powers OPOWER's customer facing applications, including both the online and offline components of the Home Energy Reporting System, for all OPOWER clients. OPOWER will integrate data received from CP AU with third party data and populate the Insight Engine database by performing the following steps. Task 7 Details: OPOWER shall: • Define and author clata transform layer for initial and ongoing meter data from Utility. • Parse and load initial account infurmation and meter read data, and additional data provided by Utility in accorclance with Task 6. • Parse and load available third-party clata (e.g. housing data, demographic clata) sourced by OPOWER in Task 2. • Match data, ensuring accurate combination of initial and ongoing Customer and 3r<l -party clata through the unique customer identifier from your system, and for the 3r<l party data through rigorous name and address matching to append those data to your customer data. • Standardize all addresses to USPS standards for geo-coding and mailing purposes. • Geo-code all addresses to establish longitude and latitude coordinates for each premise. • Initiate 'ongoing normative calculations to determine and regularly update neighbor and efficient neighbor calculations for each Customer. Task 7 Deliverables: Task 7 A Deliverables: Electricity deployment • Insight Engine with loaded and matched historic and ongoing energy data, housing, and demographic data for all Customers. • Geo-codes and normative calculations for all Customers loaded in the Insight Engine. Task 7B Deliverables: Gas deployment • Insight Engine with loaded and matched historic and ongoing energy data, housing, and demographic data for all Customers. • Goo-codes and normative calculations for all Customers loaded in the Insight Engine. Task 8: Final selection of Designated Customers OPOWER shall analyze the integrated clata resulting from Task 7 ancl provicle statistics and insights nccessary to enable the final selection of the test and control groups for the program. Task 8 Details: • Working in conjunction with CP AU, OPOWER may randomly partition the customers in Profesliional Services Rev. September 2009- IICc-terra"haredIASDIPURCHlSOUCITATIONSICURRENT BUYER·CM FOLDERSIUTILlTIES • CAROLYNl'iIRFP,\134341 HOOl' Energy Reports\FlNAL.CONTRACT.doc the selected pilot regions into test and control, selecting an exact set of customers from the pilot regions identified in Task 2. The final test group selection will comprise the Designated Customers. A potential option fur control groups is tocornpare CPAU customer data with thst of a synthetic control or other standerd M & V methodology. • The selection of the Designated Customers must meet OPOWER's technical eligibility requirements for available data and "neighbor" selection. Such eligibility requirements shall be shared with and agreed to by CPAU in writing prior to implementation, via a data requirements document. Task S DeliYerables: Task SA Deliverables: Electric deployment • Final selection of Designated Customers and control group for the program implementation. Task 8B Deliverables: Gas deployment • Final selection of Designated Customers and control group for the program implementation. PHASE II: IMPLEMENTATION Task 9: Implement Home Energy Reports Program OPOWER shall deliver the Home Energy Reports to CP AU Designated Customers through an opt-out program. OPOWER shall make the OPOWER Customer Portal.3vailable to CPAU Designated Customers. Task9De~s: .Designated Customers will receive oftline Home Energy Reports 10 reports, on average, for an initial period 0[20 months, with 12-month extensions subject to mutual signed agreement by Utility and OPOWER . .Accompanying the first months' mailing will be an introductory insert explaining the nature of the program, its duration, and the options for learning more or opting out. -Home Energy Reports shall be delivered at an average frequency of no fewer than six reports per Designated Customer per year . • The OPOWER Customer Portal will be available to Designated Customers throughout the initial term of the program. CP AU customer service staff will be able to opt-out Designated Customers who call in and request to no longer receive the Home Energy Reports: ,Optional: Only upon CP AU's review and approval, OPOWER may source and include 3rt! party offers and coupons in the Home Energy Reports to increase their effectiveness and ability to be acted upon. Task 9 Deliverables: • Deliveryofan average often (10) reports per year per Designated Customer fur 20 months. Over the program duration, 250,000 paper reports will be delivered to CPAU Designated Customers. Professional Services Rev. September 2009 IlC<:-terralsharcd\ASDIPURCH\<tOLICITATKlNSICURRENT BUYER·CM FOLDERSIUTILITIES • CAROL YNN\RFPs\134341 Hane Energy Repori£IFINALCON'rRACf.doc Task 10: Deploy Home Energy Reporting Website OPOWER shall make available the OPOWER Customer Portal to all Designated Customers. Task 10 Details; • OPOWER shall work with CPAU to "private-label" the website, branding it with CPAU's logo, according to CPAU's style guide. • OPOWER shall work closely with CPAU to set up a mutually agreed upon authentication process to ailow Designated Customers access to their energy infonnation online. Such authentication process will include a method to provide Designated Customers with secure and easy access to their infonnation through the website. • OPOWER shall host and maintain the website, which is integral to the Home Energy Reporting System, which in tum is integrated with the Insight Engine, both also hosted and maintained by OPOWER only after approval by CPA's IT group. Task 10 DeliYerables: • Contractor shall make available the OPOWER Customer Portal to all Designated Customers for a period of twelve (12) months. PHASE III: MEASUREMENT AND VERIFICATION Task 11: Measnre and Report on Conservation. Efficiency and Program Participation OPOWER shall provide annual reports, thirteen months from the date of the first mailing of Home Energy Reports and every twelve months thereafter or until this Agreement is terminated in electronic fonnat to verify program accomplishments (the "Program Reports"). Task 11 Details: Program Reports shall include: o Analysis of change in electric consumption among Designated Customers compared to the established control group and to their historic consumption. Analysis shall include breakdown of program impact by segments, subject to sufficient data sets and mntual consent. Such segments may include analysis by: • Heat type (electric or gas) • Designated Customer investment likelihood (a combined measure of wealth, home ownership, etc) • Energy profile (high summer peak, low summer peak, etc) • Year over year analysis of energy usage o Final output includes overall analysis of savings impact of Reports and cost of Reports to customer and to CP AU (per customer and total for time period). OPOWER shall provide all assumptions and factors used in the calculation of energy and cost savings for Utility internal verification purposes. Professional Services Rev. September 2009 IICc-termls]llll1,dIASDIPURCHISOUClTA TIONSICURRENT BUYER-CM FOLDERSIUTILITlES -CAROL YNNIRI'P,I134341Hunc &''''&Y Rcport,\F1NALCOXfRACT.doc o Response rates for trackable actions taken by Designated Customers and for program participation rates for which data is provided to OPOWER, including rebate redemptions and other efficiency and conservation programs tracked at the household level. OPOWER shall measure the incremental response rates and aggregate program participation attribution rates for Designated Customers compared to the control group. Task 11 Deliverable: • Delivery of annual Program Reports PHASE IV: OPTIMIZATION AND EXPANSION (Optional) TIISk 12: Optimize expansion and selection of new Designated Customers based on learnings from PHASES I -m. At the end of the first year and any subsequent years as agreed to by Utility and OPOWER, OPOWBR shall analyze the results from DELlVERABLES II and m and provide recommendations about how to optimize the expansion of the Home Energy Reporting System among CPAU's customers. Among these options will be the addition of water and greenhouse g!!S emission data onto the reports, which will be priced separately at that time. Task 12 Details: • Working in conjunction with CPAU, OPOWER shall identify the priorities subject to CPAU's approval, for expansion and select a set of households that is optimized to increase the efficacy of the program and to increase and explore learnings from the ongoing implementation. • If desired by CPAU, OPOWER and CPAU will together select additional Designated Customers or some other number of Designated Customers as determined by CP AU, and an accompanying control group. • Customers must meet OPOWBR's technieal eligibility requirements for available data and neighbor selection, as provided to CPAU. • The froquency of Home Energy Report delivery to different sub-segments of the Designated Population as determined in Task 5 above shall be reconsidered and optimized and this frequency shall be established by amendment to this Statement of Work, with an accompanying amendment to the budget, lIS appropriate. Task 12 Deliverables: Selection of Designated Customers and control group for the program expansion. Professional Services Rev. September 2009 \\Cc-tena\>han:dIASD\l'URCHlSOLICITATIONSICURRENT BUYER-eM POLDERSIUT1LITIES ·CAROLTh'N\RFP,1134341 Heme Energy Repor\sIFlNAL.CONTRACT.doc EXHIBIT "B" SCHEDULE OF PERFORMANCE CONSULTANT shall perform the Services so as to complete each milestone within the number of days/weeks specified below. The time to complete each milestone may be increased or decreased by mutual written agreement of the project managers for CONSULTANT and CITY so long as all work is completed within the term of the Agreement. CONSULTANT shall provide a detailed schedule of work consistent with the schedule below within 2 weeks ofreceipt of the . notice to proceed . .,Mi .. · .. les""t""on"'e""s'---___ ~ ..... _~. _______ ...;C .. o!l!m!!,p""l""eti",' Omn 1. Finalize Look of HER's 2. OPOWER Portal Set-up 3. First Reports Sent 4. Second Reports Sent 5. Third Reports Sent 6. Fourth Reports Sent 7. Fifth Reports Sent 8. Sixth Reports Sent 9. Program Year Two; First Reports to. Program Year Two; Second Reports 11. Program Year Two; Third Reports 12. Program Year Two; Fourth Reports Estimated by July 1, 20to Estimated July 1,2010; maybe later if CP AU is late in delivering required data. Within 60 days of Portal Set-up Within 60 days of First Reports Within 60 days of Second Reports Within 60 days of Third Reports Within 60 days of Fourth Reports Within 60 days of Fifth Reports Twelvc Montbs after First Reports (60 days after Sixth Reports) Within 60 Days of Second Year; First . Reports Witbin 60 Days of Second Year; Second Reports Within 60 Days of Second Year; Third Reports Professional Services Rev. September 2009 IICc-teml,haredIASD'J>URCHlSOLICITATiONSICURRBNT BUYER-GM FOIDERSIUTIUTIES· CAROLYNNIRPP,1134341 Hane Energy Report,lFlNALCONTRACT.doc EXHffiIT "C" COMPENSATION , The CITY agrees to compensate the CONSULTANT 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 not to exceed budget amount for each task set forth below. The compensation to be paid to CONSULTANT under this Agreement for all services descnlled in ExhIllit "An ("Basic Services") and reimbursable expenses shall not exceed $574,083. CONSULTANT agrees to complete all Basic Services;inc1uding reimbursable expenses, within this amount. Any work performed or expenses incurred for which payment would result in a total exceeding the rruiximmn amount of compensation set forthherein 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 $574,083. BUDGET SCHEDULE NOT TO EXCEED AMOUNT Maximum Total Compensation $574,083 REIMBURSABLE EXPENSES The administrative, overhead, secretarial time or secretarial overtime, word processing, photocopying, in-house printing, insurance and other ordinary business expenses are included within the scope of payment for services and are not reimbursable expenses. CITY shall reimburse CONSULTANT for the following reimbursable expenses at cost. Expenses for which CONSULTANT shall be reiinbursed are: $10,000. A. Travel outside the San Francisco Bay area, including transportation and meals, will be reimbursed at actual cost subj eet to the City of Palo Alto's policy for reimbursement of travel and meal expenses for City of Palo Alto employees. B. Long distance telephone cellular phone, facsimile transmission and postage charges are reimbursable at actual cost. All requests for payment of expenses shall be accompanied by appropriate backup information. Any expense anticipated to be more than $500.00 shall be approved in advance by the CITY's project manager. Professional Services RIw. Seplembcf 2009 \\Cc.terralsharedIASDIPURCH\SOLICITATlONSICURRENT BUYER-CM FOillERS\UTIL!TIES -CAROL YNNlRFPs\134341 Herne Energy ReportsIFlNALCONTRACT.doc 1 j ORDER # 1'--_---' OPOWER APPLICATION SERVICE AGREEMENT ORDER The following products are licensed under the tenus and conditions specified in the Application Service Provider Agreement (the "Agreement'1 between OPOWER and CP AU dated as well as the additional tenus and conditions set forth in this Order: ---- OPOWER Proprietary Home Energy Reporting System Suite Software: : OPOWER Portal URL: www.citvofualoalto.orglenenMejlOrl (exact URL TBD) .. 4 Month Implementation Access Term: 20 months of reporting and web access from: 7/1/10-2/30/12 (exact datesTBD) X Printed and Mailed Home Energy Reports Included Features: X OPOWER Portal X OPOWER eSR Portal X Program Reports I I Training Time & Expenses 1 eight hour training day with OPOWER trainer and training ! Included: materials included Fees and Payments: 1. Service Fees Home , ! I $75,000 set-up fee initial Upon 26,2010 of the Agreement, estimated April 25,000 Designated Customero. license fee per Designated Customer per year. $62,500, half of which is due at Execution ofthe Agreement, estimated April 26, 2010 $62,500 due at First Reports Sent (FRS), July 1, 2010 due Professional Services Rev. s.prembei 2009 I\C<H"rmlsh ... dIASDIPURClI\SOUCITATIONSICURRENT BUYER-CM FOI.DERSIUTIUTIES -CAROL YNNIRFPs1134341 H«ne Energy R"""",iFlNALCONTRACTdoc -.. -.-.. --.----.-..... -.--------r (proratedfor-S·M;;;'ths ).--... --... --.-.-----.-.... -.-.----.---.] _ .... __ ... _ .. __ .... _____ l __ . ___ .. _____ ._ .. _______ ._._._. __ . __ . OPOWER Portal ... -----------------------.. -........ ------.---.--~-~.---.-~-... -----.--.---.---$25,000 Set-up Fee Waived $l.sOii;';"se-fee-per D~~ig;;t;d-----$37,500 due at FRS:-eiti;-;.t~d Jiily T; 2()10--·-·-·····----·---·- Customer per year $25,000 due beginning of Program Year 2, estimated July 1,2011 I (prorated for 8 Months) '-............... --.---.-*" .. * •• ------~.--~---I.--.-------~--.-----.-.. -. ___ . ____ . __________ .... ~ ___ . ____ _ 1. Service Fees Service Fee Payment Terms I Home Energy Reports I ~~~~~:n~~~ ::r:~~d 1~~~R;POrts S~nt-(';FRS'1;----··-·-·------ $5.00 per Designated Customer I 0 40% of annual printing and mailing fees, $53,750, Year I including an introductory mailer for first time 6 reports Per Household report reeipients, due when first reports sent (estimated for July 1, 2010)' Program Year 1: 2010: 7/1110 -6/30/2011: Remaining balance of$75,OOO paid in 1/3 increments as reports are mailed o 1/3 due, $25,000 after first 3 months from start of Program Year o 113 due, $25,000 after first 6 months from start of Program Year o 113 due, $25,000 after first 9 months from start of Program Year ... _. __ ... ___ . __ . __ ... _. __ . ____ ._ ..... _._L ___ ... ____ . ___ ._ .. __ ..... _____ ._. __ . __ . ____ ._1 Proteatdooai Services Rev. September 2009 l\u'teJT,\SbaredIASDIPURCHISOUCITATIONSlCURRENT BUYER-CM FOIDERSIUTILITIES -CAROL YNNIRFP.1134341 Fkttle En_ Report.Il'INAL.CONTRACT.doc j ~ l -----------------------------r=:--,---~_:---::-=_::~_::_--=:_:'=:-=---~_:::.~:-:=-:-:-::_'-----------, YEAR 2: 8 months of Reporting Program Year 2: 2011: 7/112011 -2/30/2012 $5.00 per Designated Customer ' 0 1/3 due, $29,167 after first 12 months from start of i Year (prorated 8 mo.) Program 4 reports Per Household 0 l/3 due, $29,167 after first 15 months from start of ------------------,------ , Program o 113 due, $29,167 after first 18 months from start of Program , §_tl!ff Training.!~!J.'y's a.!,~ Trav~L ___________ . ____ ~ _____________ , ______________ _ I $2,000 per day or portion there of Upon invoice, not prior to training. L$5,OOO Travel Fees Years 1 & 2 .. ,...,...._~ _________ .. ____ •• ______ .• ___ ._-'-________ __ ••• __________________ -.l * Fee Calculation is based upon delivery to each Designated Customer ten (10) Reports over the 20 month program each report being one-page double-sided 8.5" by 11" Home Energy Reports per Program Year via USPS standard mail at current freight and postage prices. OPOWER may increase the fees by not more, than an amount equal to the percentage increase of the USPS rate for Standard Mail Regular -Letters AADC Local entry rate, as defined in the USPS Domestic Mail Manual (current price is $0.256). Additional Services may be subject to additional Fees as quoted by OPOWER. All Fees are non-refundable except as expressly provided herein. Upon tennination, OPOWER shall only refund the pro-rated portion of any Home Energy Report printing and mailing service Fees paid for services not yet delivered as of the termination date. , All setup and license fees are payable pursuant to Section 5 of the Agreement, and will be invoiced accordingly. All invoices to be paid generally within 30 days of reCeipt ofinvoice. ProfessIonal Services Roy, Sop_her 2009 \\Cc-temlsllaredIASD\PURCI!\SOUCITATIONSlCURRENT BUYER-CM FOLDERSIUTILITIES -CAROLYNNIRFPs\134341 Heme Energy , Rop""'II'lNALCONTRACT,doc Pt!lymlUlt SChedule (an JU'lynNlntlllre !lu5 Net 30 upon CPAU's receipt of1nvokt:l)- 1 year Pfoatilm. 25.000 Houlubokb; IteteIvlnI hpOftX, ZO mDIIlhuf repruu; 10 report. pl!l" haWlehokl for 5 Total of 250,000 rt;cUu .. Tl1ls Paymont; Schlldulsls b.u.ed (Ill cootm.t sfgnabJre prior to 3/30/201D "''''*Ptintlng and I'4alllnQ!( Fee Cetcuf~ 1$ baRd I,Jpon ilmjvmy to each Designated Customer of lUI average Df fourtetn (14) (lite' page dOlJble-stded IJ.S~ by U' Home. Er,ergy Reports via USPS slandal'd mall, over 2(1 morrths of '''porting. at current freight and postage prices, The fees set forth fer printing end mailing ahall b& In eff,act from the date of eontract signing liM ror a period of 12 months, Th.11!Iefte:r~ Poslttve: Energy may IllcresS. ttte fees by not mg.re than an &1liO\l1'tt: equal to. the psroantage InCrease 1)1 Ute USPS rate for Standard Mall Regul~r -l.6ttill'i MDe looeal entty rttte, 85 defined In thEI USPS Domestlt Mail Manual {OJrretttly $Q.2S6}. Professional Services Rev, September 2009 \1Cc-term-..hw'edIASDIPURCH\SOUCrr ATIONSICURRENT BUYER-CM FOlDBRSlt;TILITIES· CAROL YNNIRFP,1134341 Hane EnerllY RJ>portsIFlNALCONTRACT,doc . , , I EXHIBIT "D" INSURANCE REQUIREMENTS CONTRACTORS TOTllE CITY OF PALO ALTO (CITy),AT rnElR SOLEEXPENSE,SHALLFOR.'l'HETERMOFTllECONTRACT OBTAIN AND MAlNTAlNINSURANCE IN THE AMOUNTS FOR THE COVERAGE SPEClFIEDBELOW, AFFORDED BY COMPANIES WITH AM BEST'S KEY RATING OF A-:Vn, OR HIGHER, LICENSED OR AIJTHOIl.lZED TO TRANSACT INSURANCE BUSINESS IN THE STATE OF CALIFORNIA. AWARD IS CONTINGEI-;,. ON COMPUA.'1CE wrrn CITY'S INSURANCE REQUIREMENTS AS SPEClPllID BELOW: MINIMUM LIMITS RIlQUIRED TYPE OF COVERAGE I\EQDlREMENT EIlCH : YES i YES , : YES YES YES YEs OCCURRENCE AGGREGATE WORKER'S COMPENSATION STATUTORY EMPLOYER'S lJAB[L[TY STATUTORY BODlLYINIURY $1,000,000 $1,000,000 GllNllRAL IJABILITY, INCLUDING I PERSONAL INI1JRY, BROAD FORM PROPERTY DAMAGE $IJooo,ooO $1,000,000 PROPERTY DAMAGE BLANKET : BODILYINIURY &; PROPERTY DAMAOE CONTRACTUAL, AND FIRE LEGAL $1,000,000 : $1,000,000 LIABIIJTY : COMBINED. BODILY INJURY $l.000~OOO SI,OOO,OOO -EACH PERSON $1,000,000 $1,000,000 -EACH OCCURRENCE $1,000,000 $1,000,000 AUTOMOBILE LIABILITY, INCLUDING ALL OWNED, HIRED, NON-OWNBD PROPERTY DAMAGE $1,000,000 $1,000,000 BODlI,Y INI1JRY AND PROPERTY $1,000,000 $\,000,000 DAMAGE COMIIlNED PR.OFESSIONAL LIABILITY, INCLUDING, ERRoRs AND OMISSIONS, MALPRACTICE (WHEN APPLICABLE), AND NEGUGENT PIJIU'ORMANCE ALL DAMAGES $1,000000 THE CITY OF PALO ALTO IS TO BE NAMED AS AN ADDITIONAL INSURED: CONTRACTOR, AT ITS SOLE COST AND EXPENSE, SHALLOBTAINANDMAINTAIN,INFULLFORCEANDEFFECTTHROUGHOUTTllEENTIRETERMOPANYRBSULTANfAGREEMENT, THE INSURANCB COVERAGE HEREIN DESCRIBED, INSURING NOT ONLY CON'IRACTORAND ITS SUBCONSULTANTS, IF ANY, BUT ALSO, wrrn THE EXCIlPTION OF WORKERS' COMPENSATION, EMPLOYER'S lJABILITY AND PROPESSIONALJNSURANCE,NAMING AS ADDITIONAL INSUREDS CITY, ITS COUNCIL MEMBERS, OFFICERS, AGENTS, AND EMPWYEES. L INSURANCE COVERAGE MUST INCLUDE: A A PROVISION FOR A WRlITEN THIRTY DAY ADVANCE NOTICE TO CTTY OF CHfu'lGE IN COVERAGE OR OF COVERAGE CANCEI~ATION; AND B. A CONTRACTUAL UABfLrfY ENDORSEMENT PROVIDING INSURANCE COVERAGE FOR CONTRACTOR'S AGREEMENT TO lNDFJ,.INIFY CITY. C. DEDUCTffiLE AMOUNTS IN EXCESS OF $100,000 REQUIRE CITY'S PRIOR AFPROV AL. II. CONTACTOR MUST SUBMIT CERTIFICATES(S) OF INSURANCE EVIDENCING REQUIRED COVERAGE. m. ENDORSEMENT PROVISIONS, WITH RESPECT TO TIlE INSURANCE AI1J'ORDED TO "ADDITIONAL INSUREDS" A PRIMARY COVERAGE WITH RESPECT TO CLAIMS ARISING OUT OF THE OPERATIONS OF TIlE :-.lAMED INSURED, INSURANCE AS AFFORDED BY TIilS POllCY IS PRIMARY AND IS NOT ADDITIONAL TO OR CONTRIBUTING WITH ANY OTHER INSURANCE CARRIED BY OR FOR TIlE BENEFIT OF TIlE ADDITIONAL INSUREDS. B. CROSS I.!ABlLlTY Professional Services Rev, September 2nO!} \\Cc-terralslmredIASDIPURCH\SOLlClT ATIONSICURRENT BUYER.-CM FOLDERSIUTILITIES -CAROL YNN\RFPs1134341 !fume Enugy ReportsIPINAL.CONTRACT,doc TIlE NAMING OF MORE THAN ONE PERSON, FIRM. OR CORPORATION AS INSUREDS UNDER THE POLICY SllALL NOT, FOR THAT REASON ALONE, EXTINGUISH ANY RlGHTS OF THE INSURED AGAINST ANOTHER, BUT THIS ENDORSEMENT, AND THE NAMING OF MULTIPLElNSUREDS, SHALL NOT lNCREASB THB TOTAL LlABlLfIY OF THE COMPANY UNDER THIS POLICY. C. NOTICB OF CANCELLATION 1. IF TIlE1'OLlCY IS CANCELED BEFORE ITS EXPIRATION DATEFORANYREASON OTIlBR TIrAN THENON·PAYMENTOP PREMIUM, THE lSSUINO COMPANY SHALL PROVIDE CITY AT LEAST A THIRTY (30) DAY WRITI'EN NOTICE BEFORE TIlE EFFECTIVE DATE 01' . CANCELLATION. 2. IF TIlB POLICY lS CANCELED BEFORE ITS EXPIRATION DATE FOR THE NON·PAYMBNT OFPRBMIUM, THE ISSUING COMPANY SHALL PROVIDE CITY AT LEAST A TIIN (10) DAY WRITTEN NOTICE BEFORE THE EFFECIWE DATE OF CANCELLATION. NOTICES SHALL BE MAILED TO. PURCHASING AND CONTRACT ADMlN.ISTRATION ClTYO'PALOALTO P.O. BOX 111:150 PALO ALTO, CA 94303 Professional Services RoY. Seprember 2009 IICc-terr,\SharedlASll\PURCIl\SOIlCI:rATIONSICURRENT BUYllR-CM FOIDERSIUTILITlES· CAROLYNNIRFPsl134341 Home Energy Reporl5\FINALCONTRACT,ooc EXHmIT"E" OPOWER UCENSTNG AGREEMENT 1. Definitions Related to Licensing Agreement "Generalized Information" shall mean: (i) any data or information provided to OPOWER by the Utility ooderthe terms ofthis Agreement; (li) any data orinfonnation collected and/or compiled by OPOWER ooder the terms of this Agreement, and (ill) the results and data from any manipulation, analysis, calculations, or processing of such data, including, without limitation, Utility Data, in accordance with this Agreement, which in each of (i), (ii) and (iii) does not pennit the personal identification of any Authorized User. All Generalizedli1fonnation shall be considered OPOWER's Confidentialli1formation. "Colltellf' shall mean any OPOWER Content, Third Party Content and/or Utility Data made available to Utility and/or Authorized Users, as applicable, on or through the Services, in accordance with this Agreement. "Customer Service Application" shall mean the online portal provided by OPOWER enabling Administrative Users, including Utility customer service staff to access the Home Energy Reports and other features and functions of the Portal Services. "Home Energy Report' shall mean the reports prepared by OPOWER and delivered to the Designated Customers describing those customers' energy use, comparing such customers' energy use to their neighbors and providing targeted energy efficiency offers and rebates. "Home Energy Reporting System" shall mean the combined offline and online system by which OPOWER delivers customized energy data and recommendations to Designated Customers, including, but not limited to, the Home Energy Reports and the OPOWER Portal Website. "OPOWER Contenf' shall mean any data, results, ideas, plans, sketches, texts, files,links, images, photos, video, soood, inventions (whether or not patentable), notes, works of authorship, articles, feedback, or other materials, including, without limitation, statistics, analyses and forecasts, and any similar information that is either owned or licensed by OPOWER and that OPOWER makes available through the Services, specifically including Third Party Content, and specifically excluding Utility Data. "OPOWER Illtellectual Property" shall mean: (i) any proprietary work; (ii) any system owned or licensed by OPOWER outside the scope of this Agreement; (iii) any analysis, compilation, aggregation, derivative work, or work of authorship created by OPOWER under the terms ofthis Agreement, including Program Reports, Customer Service Application; (iv) data independently developed or created by OPOWER for purposes of implementing, administering, improving, or otherwise providing the OPOWER Portal Website; and (v) data entered by Customers via the OPOWERPortal Website. "OPOWER Portal Websitll" shall mean a website created and maintained by OPOWER to provide Designated Customers with additional information about their energy usage. All Designated Professional Services Rev. September 2009 1\C .. '"",,\ShllredIASDIPURCH\~OLlCITA TlONSICUJlRENT BUYER-eM FOUlBRs\t'TILITlES • CAROL YNNIRFPs113434! II<rne Enugy Repo!"ls\FINAL,CONTRACT,doc Customers must agree to OPOWER's terms and conditions ofuse to access the OPOWER Portal Website "Services" shall mean the Portal Services and all other services requested pursuant to an Order. Services may include any or all aspects of tile Home Energy Reporting System, tile Customer Service Application and Program Reports. "Utility Brand" shall mean anyone or more of the trademarks, service marks, trade names, domain . names, logos, business and product names, slogans, and registrations and applications fur registration thereof owned by the Utility as of the Effective Date. "Utility Data" shall mean any data or information supplied by the Utility to OPOWER under this Agreel)lent, including personally identifiable data; provided, however, that Utility Data shall specifically exclude Aggregated Analytics, OPOWER Content and Third Party Content. 1.2. Retained Rights -Ownership. (i) Subject to the rights granted in this Agreement, Utility retains all right, title and interest in and to the Utility Brand and Utility Data, and OPOWER acknowledges that it neither owns nor acquires any additional rights in and to the Utility Brand or Utility Data not expressly granted by this Agreement. OPOWER further acknowledges that Utility retains the right to use the Utility Brand and Utility Data fur any purpose in Utility's sole diacretion. (ii) OPOWERretains all right, title and interest in and to the Services, Generalized Jnformation, the OPOWER Retained Intellectoal Property, the OPOWER Content and the OPOWER Intellectual Property. Utility acknowledges that it neither owns nor acquires any additional rights in and to the furegoing not expressly granted by this Agreement. Utility further acknowledges that OPOWER retains the right to use the furegoing for any purpose in OPOWER' 8 sole discretion. (iii) Utility owns each tangible Home Energy Report created as part ofth6se Services, including any sample reports, and all right, title and interest therein, provided that OPOWER retains ownership in the: (a) design, look, and feel; (b) graphical elements; (c) content other than the Utility Data; and (d) any intellectnal property therein. (iv) Utility grants OPOWER a non-exclusive and on-transferable license to Utility Data, for the provision of Services under this agreement. 2.3; Third Party Content. Utility acknowledges that Third Party Content maybe available through the Services, and that use of such Third PartyContcnt may be suQject to additional terms and conditions of the Third Party Providers ("Prtnlider Terms"). Utility shall comply with all such Provider Terms and pass through any applicable Provider Terms to Authorized Users as required by Third Party Providers. OPOWER makes no representations or warranties regarding any Third Party Content found on or through the Services or that is otherwise available using the Services. Professional ServJces Rev.SopkmOber2009 \\C"'e",\shacedlASDIl'URCH\SOLlCITATIONSICURRENT BUVEll-CM FOLDERS\uTlllTIES -CAROLYNNlRFPsll34341 Hun. Energy Reports\Fn-JALCONTRACT,doc 4. Usage Restrictions. (i) Utility not will assign, sublicense, sell, resell, lease, rent or otherwise transfer or convey, or pledge as security or otherwise encumber, Utility's rights ~der this Section (ii) Utility will ensure that its use of the Services, the Application Documentation Content, and all Utility Data complies with all applicable laws, statutes, regulations or rules, including, without limitation, the OPOWER Terms of Use. (iii) Utility shall notifY OPOWER immediately of any nnanthorized use of any password or account, or any other kD.own or suspected breach of security. (iv) Utility will only allow Administrative Users who have been assigned a unique user identification to access the Customer Service Application. 5. Brand Licenses. The Parties will cooperate to develop a mutually agreeable strategy fur co- branding of the Home Energy Rep()rts and the OPOWER Portal Website. Subject to the terms and conditions ofthia agreement, Utility grants to OPOWER a non-exclusive, non-transferable right and license to use the Utility Brand during the Term in accordance with such reasonable Utility branding guidelines as Utility may specifY for the limited purposes of performing OPOWER's obligations under this Agreement. Notwithstanding the foregoing, (a) Utilityrnsy. use the OPOWER Brand to identify and publicize the Services at trade shows and utility industry events; (b) OPOWER may identify the Utility as an OPOWER customer and use the Utility Brand in connection therewith, 'provided that such identification shall not state or imply an endorsement by the Utility; (0) OPOWER may identify the Services with the OPOWER Brand and ''runs on OPOWER" or other similar phrasing. Except as expressly permit'ted by this Agreement, each Party shall have a written right of approval over the use of its Brand by the other Party, not to be unreasonably withheld . Professional Service; Rev. Septemb" 2009 1\Cc-ren>\sharedIASD\PURcHISOLICITA TIONSICURRENT BUYER-CM POlDERS\UTILiTlES • CAROL YNNIRFP,\134341 Him. Energy Rl:port,IFlNAL.CONTRACT<doc City of Palo Alto City Manager's Report TO: HONORABLE CITY COUNCIL -10 FROM: CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: APRIL 19, 2010 CMR: 221:10 REPORT TYPE: ACTION SUBJECT: Approval of Comment Letter on the Revised Draft Program EIR for the Bay Area to Central Valley High Speed Train Project and Review of Guiding Principles RECOMMENDATION Staff recommends that the City Council 1. Authorize the Mayor to sign the attached letter to the Califomia High Speed Rail Authority (Authority) detailing Palo Alto's comments on the Revised Draft Program EIR for the Bay Area to Central Valley High Speed Train Proj ect. 2. Review the Guiding Principles and direct staff to retum with revisions for Council approval. BACKGROUND On March 4, 2010, the HSRA released a Revised Draft Program Environmental Impact Report. A 45-day public comment period began on Mareh II, 2010, and will end on April 26, 2010. The documeot includes the changes made in response to the court decision, focused on the Gilroy- San Jose alignment and alternatives to using the Union Pacific Railroad right-of-way. On April 7, 2010 the Planning and Transportation Commission reviewed the DEIR and a draft of the comments prepared by staff. The Council reviewed the draft and PTC comments on April 12, 2010, accepted public testimony and provided further direction to staff to finalize the comment letter for Council approval on April 19. In March 2009, the City council established the High Speed Rail Committee to represent the City in public at meetings with community groups and stakeholders, when speaking to other public agencies, when providing written correspondence or testimony in advocating for legislation related to high speed rail; and to speak at public hearings on short notice when full City Council discussion is hot feasible. On May 18, 2009, the City Council adopted the Guiding Principles (Attachment B) as a means to provide ongoing direction to the High Speed Rail Committee. On April 12, 2010, the Council referred the HSR Guiding Principles to the HSR Committee for review and comment. The Committee was scheduled to review the Guiding Principles on April 15. DISCUSSION This report transmits the revised draft comments on the Revised Draft Program EIR for the Bay area to Central Valley HST Project (Attachment A). CMR: 221:10 Page 1 of2 ,Base,d on the input from the Planning and Transportation Commission, stakeholder groups and J ''co~lci1 discussion on April 12, staff and the City's enviroumental planning consultant have' \,revised and expanded and elaborated on the issues and concems included in the comment letter. Staff requests that Council accept or modify the letter and authorize the Mayor to sign the approved letter. The HSR Committee had not yet met to discuss the Guiding Principles when this report was prepared. It is expected that the Committee will propose changes to the Guiding Principles to address issues and situations for which fUlther Council direction may be needed given the current status of the High Speed Rail Project. A summary of comments and recommendations from the meeting as well as a draft of the proposed revisions to the Guiding Principles will be provided to the Council at-places on Apdl 19. POLICY IMPLICATIONS The recommendations in this repOit 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. Draft Comments Letter on Bay Area to Central Valley Draft Revised Program ElR B. Guiding Princip les The Revised Draft Program ElR for Central Valley to Bay Area High Speed Rail Project, March 2010 is available online at: htlp:llwww.cahighspeedrail.ca.gov/lib!lIly.asp?p=92}4 The 2008 Final Progrllln ElR for Central Valley to Bay Area High Speed Rail Project is available online at: http://www.cahighspe(l~!J:ail.ca.govJlipJary.asp?n=9274 PREPARED BY: GAYLE KENS ent Spe' . APPROVED BY: CITY MANAGER APPROVAL: CMR: 221:10 Page 2 of2 ATTACHMENT A April 13, 2010 Califol11ia High Speed Rail Authority Attn: Dan Leavitt, Deputy Director 925 L Street, Suite 1425 Sacra!llento, CA 95814 DRAFT Subject: Bay A.·ea to Centrdl VaIley Revised Draft Program-Level EIR Material Comments Dear Mr. Leavitt: Thank you for the opportunity to comment on the California High Speed Rail Authority's March 20 I 0 Bay Area to Central Valley lligh-Speed Train Revised Draft Program EIR Material. The California HST project will have a long-lasting and far-reaching impact on the City ofPato Alto. The City has thoroughly reviewed the Revised Draft Program EIR and has the following comments: A. General Comments and Process A.I Public Meetings CommentA.l·l -No scoping sessions or public meetings were held anywhere on the Peninsula between San Jose and San Francisco for the Revised Draft Program EIR. Peninsula cities were also not included in the Outreach before the Second Draft Program EIRIEIS process. The failure of the California High-Speed Rail Authority (CHSRA) to solicit comments from communities along the Peninsula during the seoping process, the ElR/EIS public review process, or the Revised Draft Program EIR process violates the public review requirements of the Califomia Enviromnental Quality Act (CEQA, and renders the cunent Revised Draft EIR inadequate. A.2 Significant New Information Comment A.2-1 . Significant new information exists, under many environmental parameters, that makes the earlier Program ElRJEIS invalid and requires a recirculation of the Program ElRJEIS, as well as recirculation ofthe Revised Program EIR. Comment A.2-2 -The ridership and revenue modeling used for the analysis and altematives comparison is flawed, particularly given the new infonnation provided in the 2009 Business Plan update and the major shifts in the economy since the forecasting was last completed. The ridership models need to be revised to provide a more accurate forecast of ridership. Mr. Dan Leavitt . April 14, 2010 Page 2 of21 Comment A.2-3 -New infonnation on project impacts and altematives is being discovered during the project-level enviromnentai review for the San Francisco to San Jose and San Jose to Merced segments. TIlis new infonllatioll may indicate new or increased impacts, and new feasible alternatives or mitigation measures. TIle new infol111ation needs to be presented and analyzed in a revised and recirculated enviromnental document. Comment A.2-4 -New infOlmation has been presented in the Revised Draft EIR regarding the use of the Monterey Highway median for pOltions ofthe high-speed train (RST) right- of-way (ROW).·The document fails to address how the use ofthis median may result in impacts associated with noise, land use, property, traffic, and construction impacts. Conullent A.2-5 -The recently ruIDounced project to conduct a seismic retrofit of the State Route 92 San Mateo bridge opens the possibility of placing a HST crossing in conjunction with rebnilding the blidge. The environmental document needs to be revised alld recirculated to incorporate the alignment altematives provided by this seismic retrofit project. Comment A.2·6 -The need to evaluate impacts from Union Pacific Railroad's (UPRR) recent refusal to share it, ROW opens up the possibility of considering neW alternative alignments for not only the Pacheco Pass alignments but also the Altamont Pass aliguments, including an Altamont Pass alignment that would run along State Route 84 through the East Bay rather thall along the UPRR ROW. A.3 Limiting Scope of Comments to the Revised Draft Program EIR Inappropriately Limits the Analysis Comment A.3-1 -Limiting the scope of comments to the Revised Materials is inappropriate if the original analysis was flawed. A.4 Inappropriate Listing of Supporters and Opponents Conlment AA-l ~tt is inappropriate to list the agencies and organizations who SUPP~lIt, or have expressed concem over, the selection of the Preferred Alternative (Sections 7.3.2 and elsewhere) in the document. Their conunents and concems should certainly be . acknowledged when deciding on the scope of analysis in the EIR, but their identification in this document can have the effect of unnecessarily pitting one agency or organization against another, rather than focusing attention on which environmental issues need to be addressed in the document. A.5 L<\ck of Tables Makes Analysis Difficult Comment A.5c 1 -The presentation of data in the text is confusing and makes the analysis difficult to follow. The infOimation would be more presentable alld understandable to the lay reader ifpl'esented in tables. An example of where such a table would be appropriate is Mr. Dan Leavitt April 14, 2010 Page 3 of21 on page 7-17 in the Travel Times/Travel Conditions section of the document. Conversely, the text on page 4-3 repeats the infol1llation already presented in Table 4-1. More careful use of tables is warranted. B. Inadequate Project Description and Business Plan B.l Project Description Comment B, 1-1 -The project description is essentially limited to the alignment ofthe track corridors and possible stations, but does not mention the additional support facilities, other than the maintenance facility, that would be needed. These additional support facilities would include layover facilities, tumouts, bridges and tunnels, advanced signaling and communication~ systems, electrification facilities, station automobile parking stmctures, and the public open spaces needed to support the pedestrian traffic generated by the hub stations. The Revised Program ErR is inadequate because they are not identified or analyzed in the document. If the potential environmental impacts of these supporting facilities are not going to be addressed in the Program EIR, they shoutd be identified, the typieal effects explained, and should be addressed in detail in the forthcoming project-lcvel engineering and environmcntal reviews. Comment B.1-2 -Grade separations are not identified in the document. The document should indicate which crossings are expected to be separated, and define whether each intersection is to be separated by underpasses or overpasses (presumably the vehicular and pedestrian traffic and not the HST). Grade separations cause substantially more construction, snrface disturbance, noise, air quality, aesthetics, and transportation conflicts. An elevated railway would be a significant change from the existing landscape, and could have significant impacts on neighboring communities. Project construction could have significant impacts, such as disruption of existing rail service and dismption of local businesses; these issues are not addressed in the ElR. These impacts must be analyzed for the CEQA document to be adequate. Comment B.1-3 -The document fails to adequately describe the location of the project, including the proposed right-of-way, station locations, and other infrastructure locations. The cOITesponding impacts are not analyzed and no mitigation is proposed. Comment B.1-4 -The document fails to adequately indicate the extent to which the project would require acquisition of private propelty through eminent domain. This issue applies to both use of existing corridors where such corridors need to be widened, and the possible requirement for identifying a new corridor should UPRR block the shared use of its ROW. The document also does not identify whether eminent domain would include the taking of all or only a portion of any of the neighboring properties along the alignment. Comment B.l-5 -The document fails to address the maintenance of the HST line, and does not answer the questions of how often and when maintenance activities would occur, and Mr. Dan Leavitt April 14, 2010 Page 4 of21 what additional infrasll11cture would necd to be constmcted (rail spurs, repair shelters) to allow the maintenance activities. Comment B.1-6 -The statement that ... "The prefell'ed maintenance and storage facility location to support the lIST fleet in the study region is the Merced area (Castle AFB)" (page 7-28, Section D Maintenance Facilities) conh'adicts the statement in the Program EIRJEIS on page 2-48, second paragraph, that states that ... "One fleet storage/service and inspection/light maintenance facility would be needed for each major branch of the statewide lIST system ... These facilities would need to be sited as near as possible to the terminal stations (emphasis added)," Merced is about 120 miles from San Francisco. The Revised DraftPmgram EIR fails to identify tlIe location ofthe maintenance facility in the Peninsula segment of the HST system. Comment B.I-7 -The Federal Rail Authority (FRA) does not allow heavy rail and light rail to share the same corridor. The proposed project would require an exemption from FRA regulations in order to move forward as proposed. The document does not address the feasibility of obtaining this exemption from the FRA, nor does the document address what alternatives are available if the FRA does not grant this exemption. Comment B.I-8 -The document does not address how the land beneath an aerial viaduct would be used and maintained. What would be the use of the land beneath the viaduct parking, landscaping? Would the area be open or fenced off? Who would be responsible for maintaining this area to reinove weeds, clean up trash, remove graffiti, etc.? Who would pay for this maintenance? Comment B.1-9 -The document does not define how eminent domain would be used to widen an existing cOlTidor or to create a new con'idoL For example, would the CHSRA only tl1ke the back yard of a residential property, or would CHSRA be forced to take the entire property even if only a portion of the property is required for the COITidor? Comment B.l-IO -Section 2704.09 of Assembly Bill (AB) 3034 sets design characteristics and goals for an HST system. These goals include maximum limits on travel times, such as a maximmn travel time from Oakland to Los Angeles of2 hours 40 minutes, and a requirement that such travel be accommodated without the need to change trains at any point along the journey. The project description and subsequent EIR analysis is flawed because it does not address theserequirements. The City of Oakland is not cUlTentiyon the proposed HST aligmnent, and therefore travel to or from Oakland would involve a transfer onto another h'ain ortraI)Sit system, and would require mOl'e'lhan 2 hours and 40 minutes of travel time. The project description and aitematives,need to be revised in order to add Oakland to the syst<;)ITI, either by coming north through Pacheco Pass and San Jose, or west tln'ough the Altanlont Pass. Mr. Dan Leavitt April 14,2010 Page 5 of2l B.2 Flawed and Inadequate Business Plan Comment B.2-1 ~ The Revised Draft Program EIR fails to provide an explanation of the methodology used to calculate ridership figures. Comment B.2-2 The document fails to include an explanation of what portions of projected ridership would occur regardless of whether the project was approved or regardless ofthe aligmnent altemative chosen. . Comment B.2-3 -The ridership forecasts in the analysis are flawed and grossly overestimate the ridership that the project would generate, particularly since the ridership . forecasts were created during a different economic cycle. Realistic ridership numbers need to be usedjn the analysis to reflect both a robustand a poor economy. Comment B.2-4 -The document fails to include a full tabulation and explanation ofproject costs, including: methodologies for calculating costs, costs for each altemative and sub- altemative, costs for tunnels through developed urban areas, costs for maintenance activities, and costs for developing ridership. Comment B.2-S -The document does not include a tabulation of expected funding sources for the project. Comment B.2-6 The document does not adequately address construction costs, including thc full economic costs of using eminent domain to either widen an existing cOlTidor or to create a new corndor. Comment B.2-7 -The document fails to address how nearby businesses would be affected during project construction, if aecess would be limited, ifsmall businesses will survive, and how citytax revenues may be affected as a result. Comment B.2-8 -The document needs to include a realistic and defensible business plan in order to answer the very basic question of whether the HST project is actually enviromnentally advantageous for Califolllia. Comment B.2-9 -Cost reporting should be in 2010 dollars, and not 2006 dollars (page 7-13, second paragraph, last line and elsewhere in the document). Comment B.2-l 0 -The daily ridership projections for the San Francisco station include riders from Oakland and elsewhere in the East Bay, which is a flaw in the analysis. East Bay ridership needs to be shown at an Oakland station location, as required by AB3034, and not San Francisco. Once the East Bay ridership is removed from the San Franciscc projections, the forecasted ridership at San Francisco should be dramatically reduced. Mr. Dan Leavitt April 14,2010 Page 6 of21 Comment B.l-Il -The December 2009 Business Plan's forecasted annual boardings for the San Francisco to Anaheim corridor are less than half of the forecasted annual boardings referred to in the ElR. The boarding numbers in the EIR need to reflect updated forecast figures. C. Environmental Impacts and Mitigation Measures C.l General Comments Comment C.l-1 -The Revised Program ElR identifies a Peninsula alignment and station locations, but fails to fully identify, analyze, and mitigate all Peninsula-related environmental impacts fi'om that specific alignment and those specific station locations. A Program-level EIR that identifies specific project elements or project locations is required to provide a full analysis of the impacts associated with these elements and locations. Comment C.I-2 -The mitigation measures used in the document are often inadequate, and in some cases so poorly described as to make it impossible to detennine the feasibility of the mitigation measure. Comment C.I-3 c The document fails to disclose or adequately analyze the project's potential land use and transportation impacts associated with the use of tbe shared CaltrainlUPRR ROW between San Francisco and San Jose, and the UPRR ROW from San Jose to Gilroy. Perhaps more importantly, the document fails to discuss the potential necessity of loc'!ting the project alignment away from either segment of this ROW, particularly in. tlle San Jose to Gilroy segment where the UPRR owns and controls the corridor. The potential need for a new project alignment in these areas necessitates a revised analysis of project impacts. Comment C.1-4 -The impact discussion focuses on a corridor 50 feet to either side ofthe existing con'idor or 50 feet to either side ofthe centerline of tlle new HST alignments. The analysis should focus on a wider cOlridor for impacts. Some impacts, such as noise, can have. a 'significant effect several hundred or even several thousand feet away from the project corridor. The impact discussion should be revised to use appropriately sized impact corridors as appropriate for each specific impact, with no conidor nanower than 500 feet to either side of the proposed HST cOlridor. Comment C.1-5 -The impact analysis fails to address and incorporate tlle significance criteria estahlished by each local jurisdiction affected by the project, and uses flawed assumptions in detel1nining impact significance. Comment C.l ~6 -The document f;Uls to indicate ho,,4 the HST project would affect Cal train service, hoth during construction and operation. It is unclear whether Caltrain would be able to c,ontinue providing express service once the HST system is in place. The lack of Mr. Dan Leavitt April 14, 2010 Page 7 of21 analysis of tilis potentially significant impact requires tilat the document be recirculated with the complete analysis. Comment C.1-7 -The analysis in the Revised Draft EIR glosses over local impacts and does not provide the detailed analysis required by CEQA. Comment C.1-8 ~ The document uses the tel1llS "exclusive guideway" and "shared gnideway", but does not define these tenns. The document further concludes in a cursory and conc1usory manner that "exclusive guideway" altematives should be rcjccted, and that a "shared guideway" alternative should move forward for analysis. This conclusion is inappropriate given thatUPRR has stated opposition to sharing their corridor. C.2 Aesthetics and Visual Impacts Comment C.2-1 -The Revised Program EIR fails to address a number of issues related to aesthetics and visual impacts. Many of the proposed project elements (such as an elevated railway, overhead wires, sound walls, and transmission lines) would likely have a significant visual impact, and these impacts are neither fully addressed nor sufficiently mitigated. Comment C.2-2 -The document fails to address the visual impacts of elevated stroctul'CS and the associated 45 miles of sound walls proposed as mitigation for noise effects. These stroctures would represent a significant change to the visual character of the conido!'. The document also fails to address the shade and shadow impacts of these proposed elevated stroctures and sound walls. The sound walls as proposed are inadequate to mitigate the projcct's noise impacts, and will likely need to be made cven taller, which would have a cOlTesponding increase in impacts on aesthetics. Comment C.2-3 -The visual impacts of the ncw utility infrastrocture, in pruiicular the electrical substations, transmission lines, and overhead electrical rail lines, arc not fully addressed in the Reviscd Program EIR. The document does not provide locations for the proposed substations and transmission lines, so no analysis of aesthetic impacts can be perfOlmed. The City of Palo Alto is in the process of placing all existing overhead wires underground. The addition of new overhead wires in Palo Alto would not be in keeping with City policies and goals. . Comment C.2-4 -The document fails to address how the absence or removal of screening trees along certain segments ofthe rail line would affect the impact significance of elevated stroctures, sound walls, substations, and ncw utility pole~ and wires. Comment C.2-5 -The document fails to address how any new vehicle or pedestrian overpasses would affect the visual environment. Such structures would be significant new elements in the visual landscape, and their visual impacts need to be addressed in the EIR. Mr. Dan Leavitt April 14, 2010 Page 8 of21 Comment C.2-6 -The document does not address whether the project would include nighttime lighting, and what impacts such lighting would have on neighboring uses, particularly on two-story residences across from an elevated railway . • C.3 Agriculture Comment C.3-1 -Direct impacts to agricultural resources would occur if the HST alignment and associated infrastructure (substations, utility lines, etc.) needed to pass tin'ough lands that are cunently in agricultural use. The document fails to adequately address the loss of prime agricultural land, partiCUlarly if the proposed ROW must be relocated away from the UPRR ROW within the San Jose to Gilroy corridor. This relocation could be necessitated by UPRR's refusal to share a ROW with the HST system. C.4 Air Quality and Greenhouse Gases Comment C.4-1-The document fails to fully disclose or adequately analyze the project's potential air quality impacts, including the production of greenhouse gases (GHG) and contribution to global climate change. Comment C.4-2 -The analysis focuses on emissions associated with operations. It does not consider constlUction impacts and their contribution to GHG emissions. Comment C.4-3 -Construction activities will cause major traffic disruptions, resulting in indirect air quality and GHG emissions from idling vehicles. These potential emissions were not analyzed in the document. Comment C.4-4 -New electrical infrastructure (transmission and distribution lines and substations) will be required. The construction impacts of these facilities are not included in the analyses. Comment C.4-5 -Greenhouse gas emissions should be recalculated and reconsidered based on updated and realistic ridership figures. Sce. Comment A.2-2. Comment C.4-6 -The comparison of rail travel GHG emissions to air travel GHG emissions should be revised to account for the reductions in air travel since 2002 and the improvements made in emissions from air travel. See Comment A.2-2. Comment C.4-7 --The document fails to adequately compare air quality and GHG emissions between the altemative options for the new railway elevated viaduct, elevated benll, at grade, below grade, and underground. Construction activities and dUration vary dramatically for different types of constlUction. Air quality and GHG emissions for longer duration constlUction should be considered. Mr. Dan Leavitt April 14, 2010 Page 9 of21 Comment C.4-8 -The document uses flawed assumptions in the impact analysis. For example, it is impossible to run on 100 percent clean, zero-carbon emissions electricity. Zero-carbon emissions electricity does not exist. "Clean energy" cannot be separated fi'om other electricity, and is itself not 100 percent clean. Connnent CA-9 -Does the project actually reduce emissions, or only move them out further into the future? This issue is not considered in the analysis. Comment CA-l 0 -Construction emissions, especially GHG emissions, should be anlOrtized and included in the analysis. Comment CA-ll -Construction activities include rebuilding Caltrain, which will result in a disruption in service and in tum result in commuters and travelers finding other transportation options, likely increasing vehicular emissions. Comment C.4-12 -In addition to direct air and GHG emissions associated with Caltrain rebuilding, the project will also result in indirect traffic and air emissions. These emissions have not beeninc1uded in the impact analysis. Comment CA-13 -The required new electrical infrastructure will result in both construction and operational particulate and GHG emissions (SF6 from substations). These emiSSIons have not been included in the impact analysis. C.S Biological Resources Comment C.5.1 -Statements such as those on page 7-13 (second paragraph, lines 4-7) ... "That the preferred altemative to San Francisco would have slightly less potential impacts on wetlands (15.6 ac vs. 17A ac), waterbodles (3.8 ac vs: 4.5 ac), and streams (20,276 linear ft. vs. 21,788linear ft), but would have slightly more potential impacts on floodplains (520.6 ac VS. 477.5 ac) and species (plant and wildlife) ... " are not very helpful without knowing something about the cun'ent quality, trends, susceptibility, and other threats (cumulative or otherwisc) to these resources. An attempt to look at these from a landscape point of view should be considered. Just providing disturbed acreage estimates can be very misleading, and could support or lead to incorrect conclusions about the comparative . severity of impacts between altematives. Comment C.5.2 -It is a mistake to equate only miles of disturbance with environmental impacts: For example, on page 7-15, second paragraph, lines 5-8, the document states, "However, this alternative has greater enviroumental impacts ... since it requires nearly 38 additional miles ofHST aligument to be constructed along the east bay" and repeats this statement on page 7-15, third paragraph, lines 5-7. The severity of the environmental impact depends on what biological resources are encountered in those 38 additional miles, ·and what is. encountered in the original alignment before the 38 miles are added on. Similarly, the impacts depend on the nature/severity oflhe impacts encountered. One Mr, Dan Leavitt April 14, 2010 Page 10 of21 significant impact in a Sh011 stretch of alignment would have more weight than several, or indeed many,less than significant impacts in a longer stretch of alignment. Comment C.5,3 -The document perpetuates a common enor in only considering threatened and endangered species (T&E species). EIRs and EISs are not environmental compliance documents. They are envhomllental impact assessment documents. Yet there is no . consideration of the potential for impacts to many non-T &E species, especially keystone species, particularly in terms of habitat loss and fragnlentation. Comment C.5-4 -The docnment does not address the wide-ranging effects of air and water emissions (pollution) and noise on biological resources, particularly wildlife and their critical habitat. The harmful effects of pollution have contributed to the listing of numerous species under the Endangered Species Act, yet the document focuses on the direct impacts associated with the loss of habitat. Habitat fragmentation and degradation are not addressed. The indirect effeets of air, water, noise, and other emissions, even if they meet regulatory andlor pe!mit thresholds, are ignored. Not all habitats are of equal imp011anee. Certain habitats disprop01tionately conbibute to ecosystem functioning and are analogous to keystone species. Even non-keystone habitats vary in quality with very different functional value. These nuances are ignored cir overlooked, and should be the major focus of affected environme!lt discussions. Comment C.S-5 -The document fails to. adch'ess the potential loss of valuable wildlife habitat, including wetlands, pal1icularly if the proposed right-of-way must bere10cated away from the CaltrainiUPRR right-of-way anywhere along the San Franciscoto Gilroy corridor. Such a relocation could be necessitated by Union Pacific's refusal to share a ROW with the HST system. Cemment C.5-6 The document fails to address impacts to trimming or renlOval of mature or heritage trees along project alignment, including effects to El Palo Alto, the iconic herit'lge redwood b'ee in Palo Alto. C.6 Cultural Resources Comment C.6-1 -The document fails to fully address impacts to histodc resources and Native Ame!ican archaeological sites along the alignment, The do.cument do.es not ide!1tify and name each type of historic resource, and only identifies the total number of such resources located along eilCh aligument. It is therefore not possible to assess the significance of the impacts. The document also fails to address the potential impacts to cultural resourees from the UPRR's refusal to share its ROWand the potential need to identify a new alignment. Comment C.6-2 -Inadequate measures are provided in the documellt to mitigate the 110ise, vibration, and visual impacts'ofthe proposed HST system on the historic resources located near the proposed alignment. Mr. Dan Leavitt Apri114,2010 Page II of21 C.7 Environmental Justice Comment C.7-1 -The document uses ineolTect methodology for its analysis of environmental justice impacts. Comment C.7-2 -The possibility of enviromnental justice issues is not necessarily related to distance from the HST line (page 2-5, third paragraph, and page 2-7, second paragraph, lines II and 12), but rather thc geographical extent of impacts, such as noise, traffie congestion, air quality degradation, etc. . Comment C.7-3 -Limiting potential property impacts to land uses within 50 feet of either side ofthe existing COlTidor, or within 50 feet of both sides of the centerline for new HST alignments, is too restrictive and limiting to fully assess impaets. Potential enviromnental impacts could extend well beyond 50 feet, and so too would the potential for disproJ(ortionate impacts to minority and.low incomc populations. Commcnt C. 7 -4 -The potential for environmental justice impacts exists whether the minority orlow income population is I, 5, 10,20 percent or 50 percent of the total (page 2- 5, first bullet). The question is not what the minority or low income population is, but whetherit is disproportionately impacted regardless of size. The potential for enviromnental justice impacts is made on a detenrunation of whether or not there are disproportionate impacts to minority or low income popUlations, not just whether minority of low-income popUlations exist along the alignment. The wording ofthe enviromnental justice section in Chapter 6 should use the tenn "potential for enviromnental justice impacts" rather than whether the alignm~nt has a "low, medium, or high enviromnentaljustice impact rating". c.s. Geology and Seismicity Comment C.8-1 -Thc document fails to adequately address potential impaets and risks associated with the rail'line crossing several active and potentially active fault zones. Potentially high risks are associated with all rail altematives crossing active and potentially faults. These risks, for both constlUction and operations, are not fully addressed. Crossing the Calaveras Fault in a hmnel represents a particularly high risk. Altematives to a tunnel crossing should be considered. Comment C.8-2 -The document fails to adequately address impacts resulting from a major ealthquake and associated strong ground motion. Comment C.8-3 The southern alternative mus nOlih through areas with potential effects from liquefaction. Fonndations and SUppOlts for this altemative will require more engineering and robust constlUction, resulting in greater traffic dismptions and increased air emissions. These factors are not addressed in the analysis. Comment C.8-4 The height of elevated structure is not indicated in the analysis. The lateral seismic loading on these structures needs to be addressed. Substalltially larger (and Mr. Dan Leavitt April 14,2010 Page 120f21 more frequent) supports may be needed, possibly resulting in greater visual impacts or evcn the need for a wider ROW to accommodate the structural supports. e.9. Hazards and Hazardous Materials Comment C.9-1 .. -The document fails to address the public health and safety impacts due to possible derailments on the Union Pacific, Caltrain, or HST lines and subsequent collisions with high speed trains. The derailment hazards and damage to adjacent rail lines are not addressed, and the potential damage to properties adjacent to rail lines reSUlting from train derailments is not addressed. The document does not consider establishing hazard buffer zones to addres~ derailment impacts. Comment C.9-2 -The document fails to address other possible collisions with trains. Multiple trains (HST, Caltrain, freight) l.\sing the same tracks pose increased risks of collisions. In addition, it has not been demonstrated in the enviromnental document that multiple HST trains operating concuTI"ently would be able to stop in time if problems from other operations oceur. Comment C.9-3 -The document fails to address confliets with existing underground toxic plumes. The approach and methodology in the document is flawed as it only used databases listed in evaluating possible underground contamination. Additional infOlmation on underground contamination is available and needs to be incorporated into the analysis. Comment C.9-4 -Contamination along existing railroad ROWs is common. The analysis does not consider this typically occuTI"ing hazardous contamination, and the methods to mitigate the disturbance and disposal of contaminated materials. Comment C.9-5 -Acquiring new ROW increases potential for encountering more hazardous materialS/Waste, including contaminated groundwater. This issue is not addressed in the Revised Draft Program EIR. e.10 Hydrology and Water Quality Comment C.l 0-1 -The document fails to address impacts of trenching or tuuneling on groundwater during construction. This impact applies in particular to portions of the Altamont Route Altemati Yes. Comment C.I 0-2 The document fails to address impacts on creek flow, creek stability, and riparian habitat. The analysis is flawed in comparing "flood plain area" without considering water flow direction relative to proposed structures. This comment also applies to Comment C.I 0-4. Comment C.l 0-3 The document fails to adequately address impacts of shallow groundwater on operations and maintenance. For example, the document states that, Mr. Dan Leavitt April 14, 2010 Page 13 of21 "Infiltration of ground and surface waters into tunnels is undesirahle for operations and maintenance reas01~S and increases the potential for adverse impacts to ground and surface waters. All reasonable measures would be taken to avoid water inflltration," 111ese "reasonable measures" should be identified and discussed, Potential secondary impacts (e.g" groundwater pumping for dewatering) should also be evaluated. Comment C.I 0-4 " In addition to operations and maintenance, potential adverse impact to tunneling from groundwater are discounted and not fully analyzed. Comment C.I 0-5 The document fails to adequately address the impacts on project operations from potential flooding. Comment G.I 0-6 -The document does not discuss the project's potential to impair or redirect flood water flows, or displace flood water and increase flood water elevation, and thus increase flooding risks to adjacent and upstreanl areas. Comment C, 10-7 -lfOPRR does not allow shared use of the existing ROW, then greater potential impacts to surface waters could result from a new ROW. Comment Col Oc8 -The analysis does not indicate the extent of impervious surfaces that ,would be created by the project. hnpervious surfaces create increased surface discharges, which could cause local flooding or erosion, If retention/detention basins are required to address and offset the increase in impervious surfaces, then more land may be required in order to accommQdate these added features. Comment C.l 0-9·· The analysis considers the effects of 100-year floodplains, but does not consider 500-year floodplains. c.n Land Use and Planning Comment C.II-I -The document fails to discuss the direct and indirect impacts of potential "sprawl" development as a result of the project, particularly near the locations of proposed stations such as the potential station in the City of Palo Alto. The document needs to address the development-inducing impacts of the HST project (such as high-density housing being constructed near stations). Comment C.11-2 -The Revised Program EIR fails to address the displacement of residents and businesses if the proposed ROW must be relocated away from the CaltrainlUPRR ROW, as may be required as a result ofUPRR's refusal to share the ROW with tbeHST system. An alternate corridor would likely involve the extensive use of eminent domain in order to create a new aligmnent Comment C.II-3 The document fails to adequately address land use impacts reSUlting from the division of existing comtnunities, either through the expansion and potential Mr. Dan Leavitt April 14, 2010 Page 14 of21 widening of the existing CaltrainJUPRR ROWand the elevation of stl1letures within this ROW, or through the relocation of the proposed HST cOiTidor away from the Caltrainl UPRR ROW. Either of these two scenarios could result in the division of an existing community. Comment C.11-4 -The environmental document fails to address project impacts due to potential incompatibility with local land use plans and policies, including existing or planned uses, zoning and general plan designations and regulations, and existing or proposed development plans. Local plans and policies need to be taken into consideration in the land use impact analysis, and in detennining the thresholds of significance for all environmental impact criteria. Comment C.II-5 -The document fails to address potential impacts to local businesses, particularly during construction. Road closures, reduced parking, and construction noise could all make it difficult for businesses to stay in operation during construction activities. If the HST con'idor must be relocated due to DPRR's refusal to share its ROW with the HST system, then additional businesses would also be directly impacted by CHSRA's need to use eminent domain to acquire properties for the new alignment. Comment C.11-6 -The document fails to address impacts to the property valucs of rcsidences and businesses due to aesthetics, noise, vibration, and circulation impacts from long-tenn constl1lction activities and daily train operations. Comment C.II-? -The document incorrectly states that the proposed project corridor would have a "high" eompatibility rating in the selected corridor. A large portion of this conidor passes through residential neighborhoods. The document states that single-family residential homes have a "low" compatibility rating with HST systems, so the pOltions of the cOlTidor that pass through residential neighborhoods should have a "low" rating as well. Comment C.II-8 -The document fails to address that elevating the railway and erecting 45 miles of sound walls could create a physical barrier that divides a community. The existing Caltrain/UPRR ROW does not divide commtmities to the same degree that an elevated HST system would. Comment C.II-9 -The Final Program EIR states on page 2-3 that the lIST has a "high" compatibility with high schools and a "medium" compatibility with elementary schools. The document fails to justify why high schools are more compatible with a HST system than elementary schools. C.12 . Minerals Comment C.12-1 -No issues regarding minerals have been identified at this time. C.13 Noise and Vibration Mr. Dan Leavitt April 14,2010 Page 15 of21 Comment C.B-I -The noise metric (page 3.4-3, second paragraph) should include retirement homes, assisted living centers, nursing homes, and other long-tenn medieal care facilities, museums, libraries, motels, hotels, auditoriums, churches, and cemeteries, in addition to the number of hospitals and schools. Sensitive land uses also include mobile homes, donllitories, parks, picnic areas, playgrounds, and active sports areas. Comment C.l3-2 -The noise metric does not include parkland, yet Table 3.4-4 on pages 3.4-14 to 3.4-18 does include parkland in its' noise and vibration summary data used to compare alignment alternatives. Illig inconsistency in the document needs to be corrected. Comment C.l3-3 -The document fails to adequately address the impact significance of noise and vibration during both constmction and operation, and fails to adequately mitigate these impacts, COlllment C.13-4 -The document categorizes noise and vibration impacts as "low-level", "medium-level", and "high-level", and establishes four noise-related thresholds of significance, but does not indicate whether the project impacts would exceed these t11resholds and be considered significant impacts. Comment C.B-5 -The document fails to adequately explain how the proposed mitigation measures would address noise and vibration impaets and reduce these impacts to a less than sigtiificant level. Comment C.13-6 The dOClmlent addresses estimated noise levels on a region-wide basis, and does notquantify anticipated noise levels on the proposed alignment or station 10ca.tkJl1s: . Comment C.l3-7 -Grade separation would introduce inclines. The document does not address how such inclines would affect noise and vibration impacts ofHST, Caltrain, and freight train operations, particularly when climbing up an incline. Cornment C.13-8 -The mnnber of trains per honr is proposed to increase substantially over existing conditions, meaning that more peak noise events will occur every hour and that (he to(al duration of peak noise events will increase. The document does not quantify the increase in the duration of noise, nor does the document indicate whether this would be considered a significant impact. Comment C.l3-9 -The document fails to address the noise and vibration impacts of nightly traek maintenanee. Comment C.13-1 0 -The document fails to address how the different design options (tunnel, below grade, at grade, elevated belT11, elevated viaduct) affect noise impacts. Mr. Dan Leavitt April 14, 2010 Page 16 of21 Comment C.B-1I -The document fails to address how wind and weather pattems would affect noise impacts. Comment C.13-12 -Noise impact ratings should be indicated as "high" along most of the San Jose to San Francisco corridor due to dense residential development. Comment C.13-13 The document addresses noise impacts from 186 mile per hour (mph) operations, but does not address noise impacts for 220 mph speeds through Morgan Hill and Gilroy. . Comment C.13-14 -The document fails to quantify the potential noise reduetion provided by sound walls, paliicularly given the presence of two-story residences and the possibility ofan elevated railway. Without an idea of how much sound attenuation and reduction can be achieved through the use of sound walls, there is no way to conclude that such walls have the potential to reduce noise impacts to a less than significant level. . Comment C.13-15 -The proposed sound wall height appears to be inadequate to address noise impacts. The document should include an analysis oflhe effectiveness of different heights or document why the specific height was chose. Commenl C.13-16 -The document fails 10 address impacts of sound walls on traffic noise for adjacent streets. Vehicle noise on streets adjacent to the lIST con'idor may bounce off the sound wall and back out into the community. Comment C.l3-1? -The document does not address the combined noise and vibration impacts of two or more trains passing by a location at the same time. Identify the noise and vibration impacts of multiple, simultaneous trains. C;14 . Population and Housing Comment C.14-1 -The environmental document fails to evaluate the project impacts on the jobs/housing balance in the region. C.1S Public Services Comment C.IS-1 .. No issues regarding public services have been identified at this time. C;16 Recreation Comment C.16-1 The document fails to address access, noise, dust, vibration, and visual impacts to parks and recreational facilities along the conidor. Comment C.16-2 -The document does not accurately identifY and consider all ofthe parks and recreational facilities along the proj ect route. Mr. Dan Leavitt April 14, 2010 Page 17 of21 Comment C.16-3 -The Section 4(f) and 6(f) (Public Parks and Recreation) ROI is 500 feet on either side of the HST alignment alternatives centerline in non-urban areas, 100 feet from the centerline in urban areas, and 500 feet where stations or other HST facilities are proposed(identical to the Cultural Resomees APE). Delineating the ROI or APE so narrowly may lead to inappropriate conclusions. For example, a park just outside the ROI would not be included in the alignment evaluation, but still would be affected by noise impacts from the HST. For another example, peak hour construction noise levels could be as high as Lmax 86 to 89 dBA at 100 feet, and sound exposure levels of 100 dBA would occur at 60 feet from HST passby at 180 mph (Figure 3.4-1, p. 3.4-7), and potential vibration impaets from HST operations extend to 200 feet (page 3.4-5, first full paragraph,. line 5). Noise attenuates by 6 dBA for every doubling of distance, so a park 120 feet from the eenterline in an urban area could nominally experience a 94 dBA sound level fi-om a HST passby, and thus be impacted. The ROI for publie parks and recreation areas should be defined by the spatial extent ofthe impact creating source, not an arbitrary number. Noise attenuation is also affected by intervening buildings, vegetation, and topography, and thus noise impact assessments are more appropriate for the forthcoming project-level engineering envirorrmental review. C.17 Transportation and Traffic CommentC.l7-1 -Section 7.3.3 (Network Alternatives Evaluation) is extremely complex and detailed. This seetion would benefit from a series oftables that summarize the evaluation criteria and how they compare and rank. As it stands now, the text-only explanation is dense and difficult to follow. Comment C.l?-2 -Page 3.1-1, Section B, third paragraph states that the Traffic, Transit, Circulation, and Parking sections use year 2005 data, whereas levels of service (LOS) for station cordons is based on data for the year 2000, and parking data is from 2002 (page 3.1- 2, second and fifTh bullets). The reliance on 8-to lO-year-old data is misleading because the economic conditions were different at that time. Comment C.17-3 -It is conceivable that construction-related traffic impacts could extend . beyond the I mile or 0.25 miles distance threshold from the suburban rail stations or downtown station locations, respectively. Adherence to this threshold could understate impacts. C011l1nent C.17-4 -Table 6-1 on page 6-2 of the Revised Program EIR states that "The HST Network Altemative would reduce the number of lJ:avellanes from six to four on Monterey Highway between Umbarger Road and Metcalf Road (near Bailey Road) in the City of San Jose." The EIR provides no information on the LOS impacts consistent with the information provided for other rouies in Tables 3.1-2 and 3.1-3 in the Final Bay Area to Central Valley HST Program EIRJEIS. Mr. Dan Leavitt April 14,2010 Page 18 of21 Comment C.17-5 -The document fails to address the transportation-related policies and plans oflocal jurisdictions. Comment C.17 -6 -The document docs not identify impacts to streets during construction, including idcntification of detours and road closures. These construction impacts could significantly affect traffic patterns and traffic flow for extended periods of time. Comment C.17-7 The document does not ad\h'ess increased traffic and parking impacts in the vicinity of proposed stations. Comment C.17-8 -The Final EIR does not include any provisions for orimpacts of multi- day parking at either Caltrain or HST stations. The need for multi-day parking further reduces Caltrain's use as a feeder to the HST system. Comment Col 7-9 -The document does not address impacts to pedestrian and bicycle paths that parallel andlor intersect the proposed alignment. Comment C.l7-10 -The document claims that Monterey Highway is underutilized, the loss of two of the six lanes will not significantly affect traffic in the area, and the loss of these two lanes would result in a decrease in traffic demand. The document fails to support these conclusions, particularly the counterintuitive conclusion regarding the decrease in traffic demand resulting from the decrease in traffic lanes. . Comment C.17 -II -The Final EIR fails to address likely Caltrain service reductions as a result of the project, how these service reductions would affect Caltrain's function as a "feeder route" to the HST, and the subsequent effects on HST ridership figures. The analysis should include consideration not only of capital improvements to Caltrain, but also operational subsidies to assure that Caltrain remains viable. C.iS Utilities Comment C.18-1 -The document fails to adequately address the energy needs for the project, the quantity of elech'icity required, and what infrastructure (transmission lines and substations) would be required to bring the necessary power to the corridor. The document only states that the State produces enough elechicity to serve the project's needs, and not how that energy would he delivered to the lIST system. The analysis should identifY the capability of existing lines to supply adequate power to the corridor. Comment C.18-2 -The document fails to address other potential utility needs for the project, and whether the infrastructnre is present to accommodate the project's needs. Comment C.18-3 The document fails to identify the impacts of the relocation of all utilities cUlTently located within or crossing the ROW. The relocation ofthese utilities Mr, Dan Leavitt April 14, 2010 Page 19 of21 could result in service intenllptions of water, wastewater, gas, electricity, telephone, and cable service, and would represent an additional project expense, C.19 Cumulative Impacts Comment C, 19-1-The document fails to adequately address the cumulative impacts of proposed Caltrain improvements, such as the proposed eloctrifieation of the Caltrain system, Comment C, 19-2 -The document fails to identify and address the cumulative impacts of proposed roadway improvements along the entire corridor from San Francisco to Gilroy, D. Alternatives Comment D-l -The document fails to include infOlmation on the environmentally superior alternative, thereby depriving the public of an oPPoliunity to comment on the methodology used to identify that alternative, Comment D-2 -The second Program EIRIEIS fails to analyze all alternatives at an equal level of analysis as required by NEP A Comment D-3 -The alternatives analysis is inadequate, inaccurate, incomplete, and biased, as demonstrated under the following topics: • ,The analysis of Altamont Pass Alternatives inaccurately portrays the operational characteristics in a way that results in significantly underestimating the potential ridership of those alternatives, • The documentimpropedy and inaccurately discounted and found infeasible the potential for the Altamont Pass Alternative to rebuild the Dumbarton Rail Bridge iii a way that could be used by both the Caltrain Dumbarton Rail Project and the proposed high-speed train. • The document overemphasizes the aquatic impacts of rebuilding the Dumbarton Rail Bridge and inaccurately discounts the likelihood of being able to obtain environmental clearam,'e, At the same time, the document underestimates the aquatic, wetlands, and wildlife impacts of the Pacheco Pass Alternative's crossing . of the Grasslands Ecological Area and discounts the difficulty of obtaining environmental clearance for such a crossing. • The document improperly and inaccurately overemphasizes the impacts of a corridor through the cities of Pleasanton and Fremont, while underestimating the impacts of a corridor along the San Francisco Peninsula. • The document underemphasizes the impacts of running the corridor through portions of San Jose south of San Jose's Diridon Station by not disclosing the Mr. Dan Leavitt April 14, 2010 Page 20 of21 absence of undeveloped land outside of the Union Pacific corridor south of that station. Comment D-4 -The document does not indicate whether Caltrans has given any sort of recognition or approval to the nan'owing for Monterey Highway for the installation of the HST lines. Until tlus authorization is obtained, then the alternatives involving the use of the Monterey Highway ROW are no more viable than the UPRR ROW. Comment D-5 -The Henry Miller alignment altemitive (UPRR Comleetion), one of the Uu-ee aligmnent altematives south of Gilroy, involves the lise of the UPRR ROW (pages 2- 16 and 2-17). This alternative should be rejected as UPRR has clearly stated that it will not share its ROW with the HST project. Comment D-6 -The Revised Program EIR dismisses the various Altamont alternatives because. the identified routes required use of the UPRR ROW, which UPRR has stated that it will not share with the HST project. No serious attempt was made to identify and evaluate non-UPRR Altamont alternatives with the same level of detail as the San Jose to Gilroy non-UPRR altematives. Comment D-7 -The Program EIR dismisses aligmnents between San Francisco and San Jose other than the Caltrain corridor with only a cursory analysis, and this dismissal precludes a detailed analysis of potential viable aligmnent alternatives and excludes related public comment at the Project ElR level. Most ifnot all of the other segments of the HST system involve consideration of more than one aligmnent, and the segment from San Francisco to San Jose deserves the same level of alternatives analysis. The following is a partial list ofaltemative aligmnent routes that should be considered in the Program EIR at the same level of detail as the preferred alternative: • The doclUnent should analyze a Highway 101 alternative that involves an AltamontIDlUnbarton crossing of the Bay, joining a Highway 101 ROW route near Menlo Park and Redwood City, and following the Highway 101 ROW to a point near the South San Francisco Callrain station. The route \vould then follow tile Caltrain corridor to downtown San Francisco. This alternative would avoid most of the Callrain corridor atul eliminate most of the devastation to the residential . neighborhoods that would be caused by the current Caltrail1 alignment alternative. This Highway 101 alternative would also reduce most of the impacts to schools, parks, and historical sites along the Caltrain cOlTidor, and could be less costly than the Caitrain cOITidor alternatives, particularly in regard to undergrounding the HST rail lines. ". The document should address and analyze alternative alignments within or along the Callrans ROWand Highway 280. • The document should address and analyze all alternative where the HST aliglUuent ends in San Jose, and then passengers transfer to Caltrain. Mr. Dan Leavitt April 14, 2010 Page 21 of21 Comment D-8 -TIle document does not address alternatives that would reduce the number of tracks to less than four. The ridership forecasts are flawed and grossly optimistic. Realistic ridership projections may conclude that only two or three tracks would be required for the HST project, not the four tracks currently proposed. Once the forecasted ridership is conected to (1) reflect CUiTent predictions rather than the outdated and inflated figures used in the current ElR, and (2) remove the East Bay ridership from the San Francisco station forecasts, then the reductions in projected traffic volume could result in the need for less than the 4 sets of tracks proposed between San Francisco and San Jose, and it may even be possible for the HST system and Caltrain to share only the 2 existing sets oftracks. COlTImentD-9 -The document provides a "low" or "medium" impact rating for segments that pass alongside residential development, wheu that rating should be higher. A proper weighting of the relative impacts of the various alignment altematives would provide a more accurate assessment of which alignments are environmentally superior. Comment D-l 0 -The various con-idor segments passing through Palo Alto should be analyzed and diseussed in an equal and equitable mamler in order to appropriately assess which corridor alternative is truly the euviromnentally superior alternative. E. Response to Comments Comment E.I -The responses to comments are often perfullctory or conclusory, and not supported by substantial evidence. The City of Palo Alto appreciates the opportunity to provide these comments on the Revised Draft Program EIR for the Bay Area to Central Valley HST Project. Please contact James Keene, City Manager, at 650-329-2563 for fmther information and coordination. Sincerely, PAT BURT Mayor cc: City Council James Keene, City Manager Dominic Spaeth ling, CAHSR I I I I I I I I I I I I I I . I I I ATTACHMENT B 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 wlitten c011'espondence 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 Couneil meeting is not feasible. In such cases the Subconmlittee 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 govemance of high speed rail planning and operations. • The City advocates advancing economic feasibility analysis and project financing options by High Speed Rail Goveming Body to implement selected altematives. • The Ad Hoc committee will work with peninsula cities coalition to draft Memorandum of Understanding with Caltrain and HSRA and retum to full Council for review and approval. • The City understands the opportunity to apply for Federal stimulus funding but is concemed that enough time is allowed for appropriate analysis, public process, and decision making. • The City recognizes that High Speed Rail, if done correclly, has the potential to minimize adverse impacts and be beneficial to the community. • While acknowledging that the cnrrellt direction for the San Jose to San Francisco High Speed Train project is to use the Caltrain light,of-way as the for the high speed rail corridor betweell San Jose and San Francisco, the City is open to and could support altemative alignments. • The Ad Hoc Committee will be guided by the City of Palo Alto Scoping Comments for the Califomia High Speed Rail Authority's San Francisco to San Jose High Speed Train (HS1) Environmental Impact Report/Environmental Impact Statement (EIR/EIS). • The City SUppOlts Caltrain electrification and improved commuter rail services betwcen San Francisco and San Jose. The City SUppOlts evaluation of operating conditions along the Caltrain right-of-way that would be conducive to a high speed rail intercity Connection in San Jose, with improved Caltrain conmmter rail service between San Jose and San Francisco. • The City is supportive of exploring creative ui:ban 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 fothe Council on the activities of thc 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. 'I. .. TO: HONORABLE CITY COUNCIL FROM: DATE: CITY MANAGER APRIL 19, 2010 DEPARTMENT: ADMINISTRATIVE SERVICES I CITY MANAGER CMR: 194:10 REPORT TYPE: ACTION SUBJECT: Report on 2009 Climate Protection Plan Goals and Approval of 1) Expanding the Greenhouse Gas (GHG) Emissions Goals and Reduction Plan for City Operations in 2012 to 20%, 2) New Initiatives to Accelerate GHG Reductions and Cost Savings for City Operations. RECOMMENDATION Staff recommends that Council (1) review the results of the greenhouse gas (GHG) reduction plans for Calendar Year 2009, (2) expand the 2012 reduction goals first proposed in December 2007 for City operations in order to stimulate additional cost-savings opportunities, and (3) approve the implementation of new initiatives to promote GHG reductions and energy savings. EXECUTIVE SUMMARY On December 3, 2007 (CMR: 435:07), Council requested that staff develop a greenhouse gas reduction plan, focusing on short, medium and long term goals. The short term goal, as describ,ed in the Climate Protection Plan, was a 5% reduction in emissions from City opel'ations in 2009 from the 2005 baseline levels. All references to years in this report are Calendal' Years unless otherwise indicated. Council also recommended that staff continue to monitor the City's and community's emissions and report back regularly ,to Council and the community on greenhouse gas emissions and actions to reduce those emissions. To achieve this short term goal for City operations, staff refined the 2005, emissions estimates, and developed a 2009 carbon budget for each City department. Each department in turn has developed an emissions reduction plan, approved by the department Director. These plans, and the estimated cost savings and emissions reductions, were presented in April 2009 (CMR: 213 :09). The web links to the CMR's discussed are provided at the end of this report. CMR: 194:10 Page 1 of 14 In order to effectively monitor and report city operations emissions, staff contracted with a local vendor, Hara Software, in 2009 to provide an energy and environmental management and reporting package as a software-as-a-service application. The Hara system is now being used to track the implementation and completion of each Department's initiatives, and the City's use of natm-al gas, electricity, liquid fuels (gasoline, compressed natural gas, and diesel), and paper on a monthly basis. In addition, annual assessments of emissions from solid waste and employee commute have been included in the system. Based on the Hara application analysis, the City's progress to reducing GHG emissions as well as City expenditures on consumption have met the Council directives for 2009. The total emissions from City operations declined by 11 % in 2009 over the baseline year of 2005 (excluding the employee commute estimates). The largest reductions in emissions were the result of reduced natm-al gas and electricity usage, solid waste, and a reduction in paper usage. Consumption and the corresponding emissions for liquid fuels and water increased over this period. Reductions in electricity, natm-al gas, paper and solid waste avoided City costs of approximately $529,000. These savings were partially offset by increases in the use of gasoline, diesel, compressed natural gas and water. Total avoided cost savings were approximately $185,000, when the increased consumptions were included. Overall, of the. 166 actions committed to, 121 have been started or completed. The average completion percentage of all initiatives started is 65 percent. Preliminary community emissions from gas, electricity and water in 2009 in comparison to the baseline 2005 shows that the community slightly reduced GHG emissions, although a full inventory will need to be done in 2012. Community emissions from electricity were up-fromlmn----- 2005 to 2009, with a corresponding increase in GHG emissions by 6,723 metric tonnes (16.7 mil kwh x .89 lbs/kwh). Water consumption was down by 3%, or 153,000 CCF. Natm-al Gas consumption was down less than 1 %. Solid waste emissions are estimated to have declined by 23%. BACKGROUND At its December 3, 2007 meeting, City Council approved staff s recommendations in the Climate Protection Plan (CMR 435:07). These recommendations centered on three key emissions goals: l)a GHG reduction of 5% in City operations in 2009 from the 2005 baseline values, 2) a GHG reduction of 5% in City and community emissions in 2012, and 3) a GHG reduction of 15% in City and ((ommunity emissions in 2020 from 2005 levels. Council also directed staff to continue to monitor and report back to Council on GHG emissions and actions to reduce those emissions. In addition, Council directed staffto create an annual on-line green report card that tracks actions and outcomes based on the baseline and goals identified in the Climate Protection Plan. The refined estimates described in CMR 435:07 report that Palo Alto's C02 emissions from the Community total some 752,629 metric tonnes. Of this total, some 30,000 metric tons are from City operations (CMR 213:09). These data are summarized in Figm-e 1 below. CMR: 194:10 Page 2 ofl4 Figure 1.' Greenhouse Gas Emissions from City Operations and the Community from 2005 Emissions from City Operations Employee 29,364 Metric Tonnes Travel Solid Waste Paper 0% 0% Water 1% Compressed Natural' Gas 0% Diesel 5% 4% Community Emissions (752,629 C02 Metric Tonnes) Upstream from Discarded Recyclables 54,838 mt , 7% Transportation 218;019 rnt 29% Solid Waste, 45,466mt 6% Biogenic, 22,970 mt, 3% Natural Gas Leakage, 19,358 mt, 3% Note: In the 2007 Climate Protection Plan (CMR435:07), components oj City Operations Emissi~ns included Biogenic Waste and Natural Gas Pipeline Leakage. As was explained in subsequent staff reports (CMR: 213:09) new reporting protocols prompted staff to remove those emissions from City operationiand place them in Community emissions. CMR:194:1O Page 3 of 14 City operations accounts for only about 4% of Palo Alto's total emissions, highlighting the need for signifiQant community involvement in order to reach the next target, which is 5% of community emissions, or 37,631 metric tonnes of C02 by 2012. The long term target of 15% by 2020 will require both strong leadership from city operations and significant community involvement, but is a similar target to most other cities (See Attachment 2). DISCUSSION This discussion is organized in the following sections: 1. City Operations -Emissions and Cost reductions realized 2. ' Community -Preliminary Emissions and Cost reductions realized 3. ' City Operations -Emissions and Cost reductions future target and strategies 4 .. Community -Emissions and Cost reductions future target and strategies 5. Comp\lrable Community Goals 6 .. Continued Monitoring and Reporting Staff implemented the Council mandated reductions by developing a program to reduce short term emissions by at least 5% in 2009 from 2005 levels. This program included developing a carbon budget for each department in the City to allocate the required emissions reductions. These carbon budgets were allocated and reported in April 2009 (CMR: 213:09). In that report, each department developed a series of GHG reduction plans which each Director committed to implementing. In addition, staff committed to full implementation of a long term emissions monitoring and reporting program which would track both emissions reductions as well as energy and cost savings from the actions implemented. 1. CITY OPERATIONS -EMISSION AND COST REDUCTIONS REALIZED Departmental Emissions Reduction Plans The department plans focused on reducing the key' emissions factors identified in the original Climate Protection Plan, namely: natural gas, electricity, fuels, solid waste, employee commute, and paper usage. Many departments operating in City Hall and possessing no heavy equipment were: naturally limited in the scope of their reduction plans. Departments focused on reducing electricity usage through conservation, increasing recycling of solid waste, increased alternative commute for staff, and paper savings efforts. Few of these efforts represented any increase in costsl and most centered on behavior changes. A total of 166 emission reductions initiatives were developed by City departments and committed to by department Directors (CMR 213:09). Of that total, 121 were initiated and progress status entered into the initiative trackil).g system in Hara. The initiatives were classified under five main categories: employee education, electricity conservation, paper reduction, commute reduction and waste reduction. Most of the initiatives were carried out in no cost to the City, and primarily focused on changing employee behavior. The average completion rate of the CMR: 194:10 Page 4 of14 initiatives is 64%. Approximately 36% percent of the initiatives are fully implemented, the remainder requiring additional work. Because many departments share meters with others, such as in City Hall, assessing the Department-specific impact of many initiatives was problematic. Impacts from initiatives which were focused on one facility in one department, such as the Regional Water Quality Control Plant (Public Works) or Elwell Court (Utilities Department), were able to be better quantified compared with initiatives by Departments operating in co- located buildings. The results of the departments' initiatives, in terms of emissions reductions and cost savings are presented below. Emissions Reductions Total emissions declined from 29,364 metric tonnes in 2005 to 25,518 metric tonnes in 2009, a 12% reduction, surpassing the Council mandated 5% reduction. However, 20% of this total reductioll is due to a decline in employee commute, which is largely a result in a reduction of stafffrom2005 levels. Excluding the commute data, the overall GHG reduction was 10%. This data is summarized in Table 1 below. Consumables are defined as electricity, natural gas, water, liquid fuels, and paper. Staff was able to account for changes in consumables through the various electronic databases used to track such purchases. This billing data was directly downloaded monthly into the Hara system. Changes in emissions from employee commute were estimated from the anriual commute survey. Changes in emissions from zero waste from City operations were derived 'from facility service levels as collected by the Public Work's Zero Waste Program. While all departments contributed to the energy savings efforts, some departments had greater oppotiunities to save. The City's Water Quality Control Plant, which is the City's largest user of electricity and natural gas, made the following energy efficiency efforts: • Replaced natural gas used in the biosolids incinerator emissions control equipment with landfill gas that had previously been burned in a flare • Improved the aeration basin biological treatment system process control system • Replaced 19,000 air diffusers with new diffusers that are more efficient • Installed variable frequency drives and a new control program for the trickling filter pump motors • Replaced about 600 existing lighting fixtures with state-of-the-art energy efficient fixtures As a resuit, the Water Quality Control Plant's electricity consumption dropped from 17.4 million kwh in 2005 to 15.7 million kwh in 2009. Likewise, natural gas .consumption dropped from 696,000 therms in 2005 to 465,000 therms in 2009. These reductions accounted for more than 75%ofthe City'S total electricity and natural gas savings. In terms of greenhouse gas emissions, the Water Quality Control Plant reductions are responsible for 50% of the City'S non-commute emissions reduction. An additional example is the electric efficiency program carried out by Utilities in the Elwell Courts facilities. City's Utilities Engineering Division occupies thirteen thousand square feet of commercial space at 1007 Elwell Court. During 2009, approximately 110 lighting fixtures at this facility were converted from the less efficient Tl2 fluorescent fixtures to the more efficient T8 CMR: 194:10 Page 5 of!4 fixtures .. This change resulted in a 40% reduction in lighting related energy consumption, saving 4,300 kwh/month. The co~t of installing the new fixtures was $16,000 and is estimated to result in $6,000 annual electric bill savings. For those departments housed in City Hall, the lack of meter density meant that individual efforts could not be evaluated and the drop in electricity demand for individual departments could not be verified. However, those efforts did have an effect in that electricity consumption in City Hall dropped from 3,699,005 kwh in 2008 to 3,422,751 kwh in 2009,. a reduction of 7% coincident with the start ofthe electricity conservation initiatives. In addition, gas consumption at City Hall declined from 61,915 therms to 52,411 therms, a reduction of 15%. One key initiative involved an infrastructure upgrade in City Hall, where some transformers were replaced, the boiler was replaced, chiller and hot water pumps/motors were replaced, the building fan units were completely refurbished with new motors and variable frequency drives, garage fans refurbished with new motors and variable frequency drives, fans were re-balanced, and partial new control system for mechanical equipment was installed. All motors in this project were replaced with high efficiency motors. Cost of the project was approx $5M. Of the total, mechanical upgrades were approx $2.5M"and electrical upgrades were $500K. Emissions from City employee commute did appear to decline from an estimated 3,640 metric tonnes of C02 in 2005 to 2,500 metric tonnes in 2009. based on a commute survey of city staff. The result of this survey suggested the decline was primarily due to a reduction in staffing with a small decrease resulting from an increase in the number of employees using van pools. The data presented in Tabled 1 suggest a marked increase in water consumption by the City operations between 2005 and 2009. However, this trend is likely obscured by several factors. Certainly 2009 served as the last year of a multi-year drought compared to 2005 with average r~infall. However, jn 2008 and 2009, the Utilities Department undertook a major effort to enhance the effectiveness of the water metering system by repairing or replacing many older meters located at city facilities. As a result, the observed'increase in water consumption may be largely an artifact' of improved metering rather than increased water consumption. Cost Reductions Savings of approximately $530,000 were realized through reductions of electricity, natural gas, and paper consumptions and solid waste generation between 2005 and 2009 (Table 1). The City's electricity and natural gas savings were offset by increases in the use of gasoline, diesel, compressed natUral gas and water. Total cost savings were approximately $185,000, when the increased c()nsumptions were included. ' . As noted above, some Departments have greater opportunities t() save on energy expenditures through conservation. The Water Quality Treatment Plant, where energy consumption dropped from 17.4 million kwh in 2005 to 15.7 million kwh in 2009, annual savings amounted to $136,000. Reductions in electricity use from infrastructure investments and departmental actions in City Hall amoUnted to· $36,425 in cost savings. Reductions in natural gas use saved an additional $10,430. CMR: 194:10 Page 6 of 14 Table 1. -Other Recyclables pounds -Potentially Recylable pounds -Problem Materials pounds -Recyclable Paper pounds CMR: 194:10 Consumption 1,602,834 102,776 1,869,943 GHG Emissions (Metric T onnes) 1,319 245 - Consumption 1,244,966 79,806 1,447,140 and 2009 Cost Savings GHG Emissions (Metric"Tonnes) 1,025 190 Page 7 of14 Percentage In-!=rease/(Reduction) -22% -22% I City Cost of I Cost Consuniable Increase/(Savings) Variable I (2,1 2. COMMUNITY OF PALO ALTO -EMISSIONS AND COST REDUCTIONS REALIZED The community accounts for 96% of C02 emissions from within the City limits as reported in the Climate Protection Plan (CMR 435:07). In the preparation of this update, staff did not carry out a comprehensive update of community emissions to include transportation or solid waste. However, using data contained in the utility billing database, comparisons between the 2005 and 2009 calendar year emissions from the community were available for gas, electricity and natural gas. These results are summarized below. Table 2. Changes in Community Energy Use and ReSUlting GHG Emissions 2005 and 2009 . 2005 2009 Percentage Commodity Unit Usage' Usage' Change Increase or (Decline) Natural Gas MMBTU 3,183,562 3,178,828 -0.15% Electricity Kwh 996,094,590 1,012,752,060 1.67% Water CCF 5,321,564 5,168,003 -2.89% Solid Waste tons 69,491 53,7453 -23.0% Total I. Data from Chmate ProtectIOn Plan. 2. Data from Hara Environment and Energy System 3. Data from Public Works Change in CO2 Emissions in Metric Tonnes -251 6,731 -186 -18,322 -12,028 Based on these numbers, emissions from the community have decreased by a little less than 1 %. However one major emissions factor, transportation, could not be estimated as part of this report because of the resource requirements required to carry out such an assessment. Staff have implemented, developed and managed many programs to reduce residential and businesses GHG emissions as listed in Attachment 1. Such programs are: • Energy efficiency programs and rebates • Solar PV and Hot Water programs and rebates • Green Building program • Storm water retention rebates One other program provided by the Utility's Marketing Services Division (UMS) to reduce GHG emissions in the community is PaloAltoGreen. It is an extremely successful, nationally ranked renewable energy program in which over 21 % of Palo Altans are participating. The average Palo Alto household participation in PaloAltoGreen reduces carbon dioxide (C02) emissions by 9,500 pounds a year. PaloAltoGreen also supports the growth of renewable energy facilities and clean CMR:194:IO . Page 8 ofl4 tech jobs. The program purchases Green-e Energy certified renewable energy exclusively from new wind projects in Oregon and Montana for 97.5% of the program. The remainder of PaloAltoGreen supply (2.5%) comes primarily from Palo Alto power purchases. UMS also offers many appliance rebates, energy audits and PV partners program, which all contribute to a reduction in C02 emissions. 3. CITY OPERATIONS -FUTURE TARGETS AND STRATEGIES EMISSIONS AND COST REDUCTIONS The effect of the GHG reduction and efficiency programs has been to reduce greenhouse gases . as well as reduce City expenditures for energy, water, paper, and waste services during a time of economic crisis. As noted above, cost savings from reduced energy and paper use and solid waste geheration amounted to $530,000 per year. Further significant cost reductions can be achieved by jmplementing additional energy efficiency and GHG reduction strategies. Based on our analysis of the energy and material use and solid waste generation, several programs need to be reassessed in order to achieve the goals recommended in this report while simultaneously achieving cost reductions required by the current fiscal environment. The report issued by staff in 2008 (CMR 308:08) presented a number of detailed proposals for initiatives which would lower energy costs, provide positive GHG benefits, and show a positive return on investment. Combining the blueprint from the cost benefit analysis with the near real-time information available from the Hara system provides the analytical and strategic basis for a more cOmprehensive and aggressive cost cutting process. Below are a series of suggested avenues for Council to consider in expanding the GHG reduction goals while driving down the cost structure. These suggestions center on changing the business-as-usual practices within city operations while enhancing the incentives and rewards system to capture cost savings. Staff is recommending that council approve the following initiatives. 1. Provide greater incentives for energy and cost reductions A. Linking Goals and Objectives with cost savings and GHG reductions. With the implementation of the Hara system, the City can now estimate or directly track energy and resource cost savings for each Department from utility bills. The City can track the implementation progress of energy saving initiatives for all departments. This provides a feedback process for Department senior managers to actively manage their energy costs. Progress on achieving energy savings and implementation of GHG reduction actions should be directly linked into performance evaluation. The linking of depmtmental goals and objectives with cost savings will need to take into account those departments with facilities which are co-located with other departments. B. Continue implementing initiatives committed to by departments. The data analyzed through the Hara system clearly indicates that both large infrastructure investments, as well as changes in personal behavior, have an impact on costs and GHG emissions. If Departments re-focused on completing the initiatives proposed and committed to in 2009, emissions and costs from electricity and natural gas consumption, as well as from use of liquid fuels would further decline. C. Address City-Wide Activities. While departmental actions have significantly reduced energy costs, additional opportunities exist on an enterprise-wide basis. For example, CMR:194:10 Page 9 of 14 computers. likely account for a significant, but unknown, fraction for all electricity used by individual departments, especially in the General Fund. Mountain View has implemented a system-wide computer power management system which saves $24 per computer per year, or a total after costs savings of $14,063 to the City'S 600 computers. The return on investment for this initiative in Mountain View was less than 6 months. San Jose is currently implementing the identical system. The City of Palo Alto supports approximately 1,000 computers and an enterprise wide power management system could provide savings approaching $30,000, much of which would apply to those departments supported by the General Fund. 2. Empowerelllployeesto implement changes Empowering employees to promote and.implement actions to reduce GHG emissions and costs requires a confluence of factors: administrative flexibility, a transparent system for recognition, proj ect funding and possibly reward, and senior management support. Many employees recognize changes in operations that could significantly cut costs. · Implementing such changes faces bureaucratic impediments, lack of funding mechanism, and departmental silos. To continue to reduce costs, the City needs to help employees 1:Jreak through these barriers. Staff recommends that the City elevate the linkage between cost cutting and GHG reductions. A cross-department team reporting directly to. City Manager's office . with .limited funding for high return-on-investment projects and the authority to implement actions would achieve both objectives. This group would receive requests for initiative funding from departments and allocate funding for those projects which met pre- established criteria and provided a positive net present value for energy saved. 3. Re-evaluate employee transportation strategies Transportation issues continue to challenge both the City and the Community with regard to energy costs and GHG emissions. Based on the data presented here, the results of the cost benefit study of 2008 (CMR 308:08) as well as the results. presented in the "Audit of Fl~et Replacement and Utilization" all suggest that the transportation strategy for employees coming to work and while working provides significant opportunities for cost savings and GHG reduction A. Commute Incentives. Employee commute represents approximately 14% of total · emissions from City emissions. The current Commute Incentive program does not appear to provide adequate incentive for employees to switch public transportation, at least in the absence of extremely high gasoline prices. However, additional support for the commute programs would require additional revenue sources . . One r.evenue source described in detail in the 2008 (CMR 308:08) is the parking buyout · program. This program entails the City providing a financial incentive for employee's to give up their parking permits (and signing a promise not to park in residential or commercial spaces in the University area), and the City then selling these open spaces to businesses or the general public for additional revenue. As described in CMR 308:08, a number of Cities and businesses have used this approach to reduce their carbon footprint CMR:194:10 Page 10 of 14 and enhance their revenue. Practical issues would need to be addressed, including discussions with the various bargaining units representing city employees. A proposed change to the existing commuter program is described in the accompanying staff report Update on City Sustainability and Environmental Initiatives (CMR:200: 10). This change adjusts commute incentives to be based on distance and commute costs, as opposed to a flat disbursement. This proposal has no revenue impact. B. City Fleet. Emissions from vehicle use increased by 780 metric tonnes, with costs increasing by roughly $180,000, as detailed in Table I. The Public Works Department continues to pursue alternative fuel/clean air vehicle strategies in pl'ocurement of new City vehicles. Use of the City Fleet is the subject of a detailed evaluation by the City's Auditor. The two key points of that report are 1) changing the management of pool and departmental vehicles from its current system to that of only City-wide pool vehicles with an online reservation system all general transportation vehicles would significantly reduce costs, and 2) too many vehicles are driven' too few miles. Both of these suggestions have significant impacts on costs and GHG reduction. Many other Cities have abandoned vehicle assignment to departments and individuals (as the City currently does), preferring to have a general small pool of vehicles combined with a system of . paying a per"mile fee for staff use of personal vehicles. This trend is both a cost cutting and a sustainability effort, especially when full cost accounting is used to assess GHG emissions from a vehicle's production, use and scrapping. With regard to the 2012 goal for City operations, staff believes that significantly greater cost savings can be achieved through continued monitoring and evaluation of energy consumption and expanding the energy conservation program. As noted above, many of the initiatives have not yet been fully implemented, and essentially all of the projects implemented carried no up froht costs. The cost benefit study carried out by the City in conjunction with the consultant URS (CMR 308:08) identified a number of actions which had very low costs to the City but which could significantly reduce energy consumption within the City. The future LEED Gold Mitchell Park Library ahd community center will also have a significant impact on oUr facilities emissions, which would potentially push us faster towards our higher goal. Staff recommends that the Council consider a 20%·reduction in C02 emissions from City operations in 2012 over the 2005 baseline as a way to stirnulate highly cost effective actions and accelerate additional cost savings. 4. COMMUNITY -EMISSIONS AND COST REDUCTIONS FUTURE TARGET AND STRATEGIES With regard to the Community goal, staff is developing plans and projects to enable community GHG reductions to reach our 2012 goal of 5% for Palo Alto as a whole. The plan that Staff is developing is a three part initiative. CMR:.194:IO Page II ofl4 The first step is. education and outreach activities. Staff will work closely with Community Environmental Action Partnership (CEAP) to. help in their efforts. CEAP was formed in 2008 to help the community reach the goals of the 2007 Climate Protection Plan. CEAP brings several segments ·of our community together to share knowledge, build mutual understanding, leverage resources, and both create and implement innovative environmental solutions. Staff has approached the local newspapers to partner with them to promote awareness and understanding of carbon emissions. Staff has also reached out to the Palo Alto Unified Schools through the Sl)stainable Schools Committee and CEAP to work with the teachers, provide program ideas and information to engage the students, and hopefully their parents, in understanding their carbon footprint. Staff and interns are developing a carbon calculator which can be used in many different areas of our community and can be distrib\\ted through CEAP and 1llal\y, other community groups. The carbon calculator we are developing is specifically Palo Alto, with specific information related to our energy mix and service offerings. The second step is for the information to be readily available to the residents and business, and to that end, staffis working with the Utilities' bill redesign team to see if greenhouse gas (OHO) emissions can be. displayed to the customer, perhaps even right beside the bill iqformation. The third step is a catnpaign to reduce. one's OHO emissions. Staff feels that it is absolutely necessary f<,lr the community to first understand what their emission is before asking them for reductions. It is also to be noted, that significant research and case studies indicate that even just a simple recognition of what ones potential impact is could reduce ones' usage 01' impact by as much as 7%. This.thl'ee part initiative is complemented by the many programs that Utilities Marketing Servjce.s (UMS)team manages and the Green Building progratns promotes. Incentives for water and energy effici(mcy have a great impact on one's OBO emission, and the connection and messaging may be further developed as our climate protection goals become more challenging. Palo Alto's Oreen Building program requires certain measures which have a significant impact on the community's carbon emissions. Public and private new construction and major renovations are required to reduce the City's current emissions, and avoid an even greater increase typically experienced with new development. Some of the strategies produce one time savings, while other are experienced over the life of the building, such as building energy efficiency, reduced home size, photovoltaic systems, energy-efficient appliances (including non- HCFC refrigerants), construction waste recycling, and water savings from efficient landscapes and plumbing fixtures. Carbon emission reductions and avoidance differ by project type and the strategies chosen to meet the green building ordinance. There are approximately 200 projects per year going through the green building program. In the future, this progratn will expand to include more projects and therefore will have a greater impact. See the Oreen Building Annual Report provided to Council in conjunction with this repoli for more information. CMR:194:10 Page 12 of 14 5. COMPARABLE COMMUNITIES' GOALS Staff has kept track of what other cities, states and countries are committing to with respect to GHG goals. Attachment 2 compiles these findings. It is important to note that the County of Santa Clara and other nearby municipalities have adopted a more far reaching goal of 80% reduction by 2050. A goal of 80% GHG reduction would mean significant changes in our community. Specifically what those changes would be are hard to estimate, but would include increased use of public transportation and non fossil fuels modes· of transport, more efficient buildings, and smaller homes with a denser footprint. Staff has considered this goal and feels that it may 'also'be within the goals of the Climate Protection Plan and the priorities of the council, but waits for council direction if this initiative should be taken. 6. CONTINUED MONITORING AND REPORTING The continued detailed monitoring of meter, facility and department emissions is vital for a number of reasons. Firstly, reporting regulations, as well as voluntary reporting procedures to which the City has committed, will require additional depth and detail. Without the commitment of additional staff to this process, the system can allow the City to continue to produce the required reports, which are expanding in 2010 to include the addition of several high-potential greenhouse gases, . Perhaps more importantly, this monitoring is the only approach that permits the analysis of the effectiveness of energy efficieiicy programs and provides opportunities to identify and pursue cost savings within operations. RESOURCE IMPACTS Approximately 0.25 FTE are expended by staff to monitor the city operations GHG emissions and energy conservation results; continue inputting energy data into the Hara system, managing the reporting process and publishing the results of the City website. Staff time commitments currently associated with the community outreach are approximately 0.25 FTE, including staff and interns in the City Managers office"·and the' Community Environmental Action Partnership (CEAP). These activities are currently carried out by existing staff performing other duties. ENVIRONMENTAL REVIEW Approval of staffs \)ontinued monitoring of the' City's greenhouse gas emissions does not meet the definition of a "project" pursuant to Sec. 21065 of the California Public Resources Code and thus a California Environmental Quality Act (CEQA). review is not required. CMR:194:IO Page 13 of14 WEBLINKS for CMR's REFERED TO IN THIS REPORT 1. CMR 435:07. City of Palo Alto Climate Protection Plan: http://www.cityofpaloalto.org/civicaifilebankiblobdload.asp?BlobID=9940 2. CMR 308:08. Review of Results of Cost-Benefit Analysis of Climate Protection Plan and Direction to Staff on recommended follow-up Actions. http://www.cityofpaloalto.org/civicaifilebanklblobdload.asp?BlobID=I2872 3. CMR 2l3:09. Approval of 1) Greenhouse Gas Emissions Goals and Reduction Plan for 4009, 2) Continued Monitoring of Emissions from City Operations, and 3) Expansion in the Reporting of Emissions to the Community. http://www .cityofpaloalto. org! ci vicalfilebanklblo bdload.asp?B 10 bID= 15 5 61 ATTACHMENTS Attachment 1. Utility Marketing Services Energy Efficiency Measures and Greenhouse Gas Emission Reductions and Cost savings for the Community Attachment 2. Comparable City, County, and Country Greenhouse Gas Emissions Reduction Targets, PREPARED BY: KARL V AN ORSDOL, Energy Risk Manager DEPARTMENT HEAD APPROVAL: Assistant City Manager CITY MANAGER APPROVAL: ~~lo~ ~~~p,.MES KE, ENE ~lty Manager , CMR:194:10 Page 14 of 14 Attachment 1 -Utility Marketing Services Energy Efficiency measures and GHG reductions and cost savings. ' ... '. >, c . .. " .. '.<. .\ c··.· "COi~eductions for ..... . ........ . _G~:~~Dg~ (Tbern$)' ' '. '. ,':' ::Netil~C~ic,Sa~ingS'(KilOWaif-HO~-~~-.k~b/~~~· _ ". COS~'savings:to_ Cominunity ~D Metric ~. :_/. :~ ':.~_Dlmllri!ty ~ _. Residential .... Commercl3J ...... Residential ' _ -Commercial,. :'_' ,,: -, tonnes-, " '.' Residential Energy Assistance Program (REAP) 2,800 535,707 $ 86,147 234 Residential Smart Energy Rebates 30,133 362,060 $ 111.231 330 Refrigerator Recycling 421,893 $ 63,706 170 Residential CFL's Included with Smart Energ) Other Residential Included with Smart Energ) Measures WIth ~~ Water efficiency measures witl Water Rebates with Santa Clara Valley Water Water efficiency 9,32 savings 6,57 electric saving $ 27,821 97 District 2,131 $ 322 1 Commercial Advantage Energy Rebates 94,639 1,869,334 $ 411,803 1,332 Solar Water Heating 725 0 3,100 $ 4,461 6 Right Lights Commercial Installations 1,834 1,476,586 $ 203,869 608 1 Year Annual S3vings Totals 42,985 103,043 1,319,660 3,348,051 $ 909,360 2,777 . ' . '. . .. ..... ...... " •...... ·.C • I _ . C02-Emissions or ••• .. .. Gas h'he~)--.·c· ..> . .EleCtricity (kWh) ·.c cc:; --Savings: Total Commodity I" Year Savings 146,028 4,667,711 S 978,919 . 2,777 TotalZOO8-i009 Sales 30,582,964 995,682,782 S 207,752,324 588,831 Total Est. Lifetime SaviD~ 1,460,280 51,425,595 $ 10,506,210 29,685 Attachment 2 -Comparable City, County and Country Green bouse Gas Reductiontargets City Community-Wide Government Operations Notes * Alameda 25% by 2020 Benicia 10% by 2020 20% by 2010, 33% by 2020 Below 2000 levels Berkeley 80% by 2050 Burlingame 15% by 2020,80% by 2050 Campbell 15-25% by 2020 5% by 2010,15% by 2015, 25% Foster City by 2020 Informal goals -not targets adopted by Council Fremont 25% reduction by 2020 Hayward 13-18% by 2020 . Hillsborough 15% by 2020,80% by 2050 Task Force recommendation; decision pending Los Altos Los Altos Hills 30% by 2015 40% by 2015 Los Angeles 35% by 2030 .. Millbrae 15% by 2020,80% by 2050 15% by 2020, 80% by 2050 Morgan Hill 15% by 2020 Below current levels 5% by 2012,10% by 2015,15- Mountain View 20% by 2020, 80% by 2050 Palo Alto 5% by 2012, 15% by 2020 5% by 2009, 15% by 2020 ... AB 32 & Mayor's Climate Protection Agreement; formal goals have not yet been adopted based on the Portola Valley 15% by 2020 ghg inventory Redwood City 15% by 2020 15% by 2020 Informal aoals -not taraets adopted by Council Richmond 15% by 2020 San Carlos 15% by 2020,35% by 2030 Attachment 2 continued -Comparable City, County and Co~try Green house Gas Reduction targets City Community-Wide Government Operations Notes * San Francisco 25% by2010 25% by2010 City and County of SF 25% by 2012,30% by 2015,35% by San Jose 2020, 50% by 2030, 80% by 2045 Below 1990 levels San Leandro 25% by 2020 San Mateo 15% by 2020 15% by 2020 Below 2006 levels San Rafael 15% by 2020 Santa Cruz 30% by 2020, 80% by 2050 Below 1990 levels Sunnyvale 20% by 2010 7% by 2012 Informal goals -not targets adopted by Council Union City 30% by 2020 30% by 2020 County County-Wide Government Operations Notes Marin 15% by 2020 20% by 2020 Below 2000 levels Flat emissions by 2010, 80% by San Mateo 2050 Below current levels; Cool Counties No increase by 2010, 10% reduction 80% by 2050, 10% reduction every 5 years, 80% reduction by Santa Clara every 5 years 2050 Below current levels Sonoma 20% by 2012 . Attach t2 d-C .hle Citv .. County and Country Green house Gas Reduction targets ---------------.. City/Country Country/City-Wide Others General Goals San Die<>o 15% below 1990 by 2020 Boston 7% below or more by 2020 New York 30% below 1995 by 2020 EU 20% below 1990 by 2020 Germany 21 % below 1990 by 2012 UK 20% below 1990 by 2012 Denmark 21% below 1990 by 2012 Luxemburg 28% below 1990 by 2012 Sweden 30% below 1990 by 2020 * Below 2005 levels unless otherwise stated TO: HONORABLE CITY COUNCIL FROM: CITY MANAGER DEPARTMENT: City Manager's Office DATE: APRIL 19, 2010 CMR: 212: 10 REPORT TYPE: ACTION SUBJECT: Response to Colleagues Memo Directing the City Manager to Explore Ways to Reduce Potable Water Use in Palo Alto by 20% by 2020 and Approve Proposed Baseline and Strategies to Achieve the 20% Goal J RECOMMENDATION Staff recommends that the City Council: I. Approve the baseline proposed and outlined in this report; and 2. Approve the strategies outlined in this report to reach the 20% goal by 2020. EXECUTIVE SUMMARY California may be facing a fourth year of drought, and conservation efforts are being stepped up across the state. Due to the concern for long-term water supplies and related legislative activity to produce more water savings, Council developed a Colleagues' Memo in December 2009 to the City Manager directing him to explore ways to reduce potable water use in Palo Alto by 20% in 2020. This~taff report is in response to this Colleagues' Memo. The City of Palo Alto has implemented many residential and commercial water conservation programs during the last two decades, but still remains one of the highest per capita water users in the San Francisco Bay Area. This report shows t4at among residential customers, landscape irrigation still constitutes one of the greatest uses of potable water, and this issue will need to be addressed to achieve Council's direction. Residential water use is highly dependent on the weath~r, whicilmakes red~ction efforts and future needs difficult to predict. The City Manager's office has brought together many departments to respond to the Council's direction. The effort began with a very productive multi-departmental brainstorming session in December. . The multi-departmental meeting was followed by discussions with the Utilities Advisory Commission (UAC), members of CEAP and Canopy, as well as larger industrial customer facility managers. Based on this work, staff is presenting a proposed baseline to determine water reductions and three options for reduced water usage. 'il To summarize, the baseline internal departments have proposed is 217 gallons per capita per day (gpcd), which includes all usage (residential, commercial, industrial and unaccounted for water). The baseline proposed is the easiest for the city to comply with but also represents a 10 year span CMR: 212:10 Page 1 of22 of our city's use, which more accurately represents traditional economic and development cycles. Future grants, awards and legislative actions will potentially be measured against local achievements compared to this baseline. The 20% reduction target from this baseline would lower consumption to 173.6 gpcd, which the City is currently just below. Staff believes that current low usage is due to economic conditions and increased environtrJ.ental awareness related to the drought, but water use levels will rise after the drought is over and economy returns. For that reason, int~rnal departments have developed a consensus is that the 20% potable water reduction goal is acceptable and achievable. In addition, all programs and initiatives listed under the 20% reduction target are currently budgeted for and are in our current work plan. Given the commitment that the City· has towards sustainability, staff is committed to reviewing new technologies or breakthroughs in water reduction methodologies and as appropriate, projects could be developed where funds and resources can be secured. This report reviews relevant background information, such as legislative activity, historic water use, current conservation plans and programs and then outlines water reduction strategies to reach 20%, 30% and 40% below the proposed baseline. The strategies are broken down into three categories; A) Municipal facilities and city operations, B) Codes and Ordinances, and C) Residential and Commercial Opportunities. BACKGROUND This section of the report will outline relevant legislative activity, Palo Alto's water use, the City's 2005 Urban Water Management Plan, and current conservation programs. Legislative Activity • Senate Bill 7x-7 (SB 7) -signed 2009 On Februaty 2S, 200S, Governor Schwarzenegger wrote to the leadership of the State Senate, outlining key elements of a comprehensive solution to problems in the Sacramento-San Joaquin Delta. The first element on the Governor's list was "a plan to achieve a 20% reduction in per capita water use statewide by 2020." In March 200S the "20x2020" Agency Team was convened to develop a plan to ,achieve a 20% reduction in per capita urban water use statewide by 2020. The legislature followed up on the Governor's plan by passing SB 7. The Governor signed it into law in November 2009. This bill requires the state to achieve a 20% reduction in urban per capita water use by December 31 , 2020. The state is required to make incremental progress towards this goal by reducing per capita water use by at least 10% 'on or before December 31, 2015. The bill requires each urban retail water supplier to develop both long-term urban water use targets and an interim urban water use target, by July 1, 20 II. SB 7 also creates a framework for future plarming and actions for urban and agricultural users to reduce per capita water consumption 20% by 2020. The bill requires urban retail water suppliers to adopt one of four methodologies as potential baselines against which to measure this reduction (to be discussed later). • Senate Bill 407 (SB 407) -signed 2009 This bill requires new indoor fixture replacement measures by certain dates depending on customer' class. In addition, property owners must disclose information on plumbing fixtures at the time of transfer. Indoor fixture replacement must be completed during certain alterations or CMR: 212:10, Page 2 of22 improvements starting in 2014. The disclosure of non-compliant fixtures upon sale of residential property is required by 2017 and multi-family or commercial property by 2019. Other compliance mechanisms, such as retrofit upon resale, are left to the individual jurisdictions. • Assembly Bill 1881 (AB 1881) -signed 2006 This bill directed the Department of Water Resources (DWR) to update the State Model Water Efficient Landscape Ordinance (WELO) which was originally approved in 1992. The DWR update was finished in February 2009, and the final version was available in September 2009. The State legislature deemed the DWR model ordinance in place as of January 1, 2010, if the local water agencies did not adopt requirements that are at least as effective in reducing landscaping water usage. . Provisions in AB 1881 required water agencies to have the foll?wing requirements in their individual ordinances: • Minimize overspray and runoff; • Have residents. develop landscape water budgets, submit a landscape design plan, irrigation design plan, and grading design plan when retrofitting or installing a new landscape; • Require appropriate use and groupings of plants; • Require automatic irrigation systems and schedules; • Require that all redeveloped or new landscapes have completed soil assessment and soil management plans; • Include landscape maintenance; • "Encourage the capture and retention of storm water onsite; • Encourage the use of recycled water; • Include monitoring of water budgets for propelties over one acre in size, through irrigation water use analyses andlor audits; • Encourage use of economic incentives; and • Provide more education to water users. City of Palo Altostaff presented the new state Model Water Efficient Landscape Ordinance and a draft Palo Alto specific version to the Utilities Advisory Committee in January 2010 and to a variety of community and landscape industry groups in January and February. Based on input received, staff has decided to continue to enforce the statewide Ordinance until the State Green Building Code (CALGreen) goes into effect in 2011. Many of the water efficiency measures will be required by Cal Green when it becomes mandatory in 2011. . The Planning· Department is coordinating a City-wide team to work on this update. Palo Alto's Water Use Palo Alto's water use has fallen significantly since just prior to the 1976-77 drought. Although water usage rebotmded after that drought, water use did not rebound as much during the longer term 1987-1992 drought. As shown below in Figure I, staffprojects that water use will remain steady in the future despite projected population increases due to implementation of the efficiency programs identified in the 2005 Urban Water Management Plan. The future water usage shown in the chart does not include any expansion of recycled water use in the City. CMR: 212:10 Page 3 of22 ,. ~ 16 a ~ ,. & 12 ,~ ~ 10 j : j . 2 o Figure 1: Historical Water Usage in Palo Alto 1965 1970 1975 1980' 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 As shown below, in Figure 2, nearly half of wflter consumption in Palo Alto comes from single- family residential customers, primarily during the summer months" The remainder of use comes from commercial and industrial customers (29%), City and public facilities (7%), and multi- family residential customers (16%). Multi-family customers are the only customer group without a significant peak of consumption in the summer. This summer-time water consumption is the primary reason why much of the plan to reduce water usage between now and 2020 will need to be focused on landscape watering. f § -~ jj j Figure 2 City of Palo Alto Monthly WFlter Usage by Customer Class (average for FY 2001 to FY 2009) 800,000 700,000 --------------------_. -----....... : .... ·'1ID~4-;,8~%"'S;c-F "'Re':csl"'de"C':nl:cc,el:-"--~----',· ................. . _29% Commercial and Industrial 600,000 ..... + .. c .. 1 07% City and Public Facilities 500;000 400,000 300,000 200,000 1.00,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May CMR: 212:10 Page 4 of22 Jun Figure 3 below breaks down single-family residential water usage by end use. As the figure shows, about 39 percent of the average single family resident's consumption is for ilTigation (or watering the landscape). Water consumption for irrigation tends to increase as a customer's lot size and amount of turf (lawn) increases. Figure 3: Residential Water Use Current Conservation Plans and Programs 2005 Urban Water Management Plan The City of Palo Alto adopted its latest 20-year Urban Water Management Plan (UWMP) in 2005. An update to the plan will be brought to Council for review and adoption in 2011. Many of the strategies in this report may 'be expanded upon in the 2010 Urban Water Management Plan, if appropriate. The 2005 UWMP's water use projections include "natural conservation" that will occlJrdue to appliance efficiency standards in the plumbing code and all cost-effective water conservation and efficiency programs identifiediat the time of preparation of the plan. If these programs are all implemented as projected, they will save a total of approximately 4.7% of the City'S long-term water demand by 2030 and 4.3% by 2020. The Bay Area Water Supply and Conservation Agency (BA WSCA) is helping member agencies evaluate additionalineasures that could be incorporated into the 2010 UWMP. CMR: 212:10 Page 5 of22 2009 Water Conservation Implementation Plan In July 2009, the. BA WSCA agencies, including Palo Alto, signed a new 25cyear Water Supply Agreement (WSA) with the City and County of San Francisco (CMR 252:09). The WSA also imposd an Interim. Water Supply Limitation (IWSL) of 265 MGD (184 MGD for BA WSCA agencies and 81 MGD for San Francisco) until 2018. If water deliveries exceed 265 MGD from now until 2018, a penalty rate will be charged for all water usage above the Individual Supply Guarantee (ISG) of any agency. To address the shortfall in water supplies from the San Francisco Public Utilities Commission (SFPUC), BA WSCA initiated the development of a Water Conservation Implementation Plan (WCIP) to update existing demand models and to identifY additional conservation measures to reduce the projected shortfall. BA WSCA updated its 2004 demand model to provide a more accurate depiction of future usage patterns and to identify new potential conservation measures that could be quickly implemented. Following calibration of the model, the agencies selected five new conservation measures (beyond the measures evaluated in 2004) to meet these goals, which include: 1 .. High-efficiency Toilet (HET) Rebate Prpgram . 2. Education/Training Program for Residential Landscape Water Use Efficiency 3. High-efficiency Washing Machine (HEW) Rebates 4. New Building Indoor Water Efficiency Ordinances 5. New Building Landscape Water Efficiency Ordinances (WELO) With the. exception of the ordinance-based measures, the new measures are currently part of the suite of conservation measures already offered by the City, but have far more aggressive penetration targets. With the existing measures, the new WCIPmeasures, and existing recycled water use, Palo Alto demand served by the SFPUC system is projected to be essentially flat up to 2030 and remain well below Palo Alto's ISG of 17.08 MGD. Customer Conservation and Efficiency Rebates and Incentives The City of Palo Alto Utilities (CPAU) is a signatory to the Memorandum of Understanding regarding Urban Water Conservation in California and complies with its Best Management Practices (BMPs) (CMR 126:09). CPAU reports on progress toward completingand complying with these BMPs every two years. This is reported to Council and the UAC, with the last informational memo provided to the UAC on January 9, 2009 and to Council in February 2009. CPAU partners with the Santa Clara Valley Water District (SCVWD) to offer rebates and incentives for water efficiency, as well as indoor and outdoor water use audits. The City also implements ordinances or codes that promote water conservation. Following its Memorandum of Understanding, the City cost-shares with SCVWD for current efficiency programs, and pays the SCVWD for these rebates and for performing water audits at customer -locations. Current rebates and free programs for water conservation measures with Santa Clara Valley Water District are: • Residential: • Water Wise House Call-free program • High Efficiency Toilet (HET) Rebates -$125 per retrofit • High Efficiency Clothes Washer Rebates -up to $200 CMR: 212:10. Page 6 of22 • Commercial: • High Efficiency Toilets and Urinal Flush Valve Retrofits (HET/HEU) -free direct installation • High Efficiency Urinal (HEU) Rebates -$500 per retrofit • High Efficiency Clothes Washer Rebates -$400 per retrofit • Indoor Water Use Surveys -free program • Landscape Surveys -free program • Pre-Rinse Spray Valve Distribution -free program • Equipment Retrofits -up to $50,000 per project • Both Residential and Commercial: • High Water Use Landscape Conversion -up to $3,000 -$30,000 • Weather-Based Irrigation Controller Rebates -various rebate levels • Irrigation Hardware Upgrades and Repairs -various rebate levels The City of Palo Alto Public Works Department (PWD) also offers incentive rebates to local residents and businesses to reduce storm water runoff. Retaining the water on-site is important not only to reducing demand on the municipal storm drain system, but also to nourish the existing landscape. Some of the measures eligible for the rebate program also have the benefit of reducing potable water usage for landscape irrigation. These water-saving measures include rain barrels and cisterns, installed as part of a rainwater harvesting system. These systems capture rain runofffrorh building rooftops and store it fOl"future use as irrigation water. While rain barrels have a modest capacity of 50 to 250 gallons, cisterns may range up to 50,000 gallons in size. ·Participants may receive a $50 rebate per rain barrel, up to $1,000 for a residential cistern installation, or up td $10,000 for a commercial cistern installation (calculated at $0.15/gallon). Thus far 31 rebates (for a total of 56 rain barrels and two small cisterns) have been issued, since the program started in September 2008. Conservation Programs Other departments in the City also implement programs, ordinances or codes which have been developed to promote water conservation. The City of Palo Alto Planning and Community Environment Department implements the Green Building Program. Under this program, new construction and major renovations for both residential and non-residential projects, including public projects, must include indoor and outdoor water saving strategies, as well as reduce the quantity, and improve the quality of stormwater runoff. This program's water savings potential is further outlined in the discussion section of this report. The. Community Services Department has implemented an on-line irrigation management control system, called the Maxicom system, which claims efficient water use can yield a savings of 25 to 45% per year, although this is not yet verifiable because the installation is so new. Sites currently on Maxicom system are Baylands Athletic Center, Bowling Green, Cubberley Community Center, EI Camino Park, Greer Park, Lytton Plaza, Mayfield/Stanford Playing Fields, Mitchell Park, Mitchell Park Community Center, and Rinconada Park. Sites coming on-line to Maxicom in 20 I 0 are the Art Center, Bol Park, Boulware Park, Bowden Park, Cameron Park, Eleanor Park, Hoover Park, Peers Park, Ramos Park, Robles Park, Seale Park, Ted Thompson Garage, Werry Park, Weisshaar Park. Nine schools are currently using the Maxicom system as per a City and Palo Alto Unified School District (PAUSD) agreement. CMR: 212:10 Page 7 of22 Ahwahnee Water Principles: The City is committed to the Ahwalmee Water Principles. Attachment B, from the original staff report in 2005 (CMR 367:05), outlines the modified Ahwahnee Water Principles for resource efficient land use that were adopted by the City Council. Many of the goals from these principles are already in place or are being reviewed as a part of the' 201 0 Urban Water Management Plan, Recycled Water Plan, or other programs. DISCUSSION This section of the report will quantify each strategy; to the extent this information is available, in terms of w!lfer savings impact, cost and unintended consequences. The water savings impact will be calculated against the proposed baseline, as determined by the guidelines in Senate Bill 7. Baseline Senate Bill 7 (SB7) outlines the guidelines to set a baseline against which water use reduction targe~s will bemeas.ured by. Future grant awards and legislative actions will potentially be measured against local achievements compared to this baseline. Under SB 7, there are fo.ur ,options to choose from to track compliance. Three methodologies for calculating a target are currently available, with a fourth that will be made public later by DWR later this year. The three methodologies are 1) eighty percent of the urban r.etail watersupplier's baseline per capita daily water ,use over a specified time; ,2) the per capita daily water use that is estimated using the sum of specific standards. including indoor residential, landscape, commercial, industrial and institutional uses; and 3) ninety five percent of the applicable state hydrological region target. The approach staff recommends is the first methodology where .baseline formula uses the 10- year average water consumption for the period from 1995 to 2004 and the target is eighty percent of that average. Although staff is currently proposing this baseline approach, the fourth methodolgy will also be evaluated when it becomes available. As shown in Figure 4 below, using this recommended methodology, Palo Alto's SB 7 baseline is 217 gallons per capita per day (gpcd), which includes all usage (residential, commercial, industrial and unaccounted for water). The 20% reduction target from the SB 7 baseline would ,lower consumption to 173.6 gallons per capita per day. While water usage has varied up and down historically, current usage is about 20% below the SB 7 baseline. Staff believes the ~.urrent low usage is related to the four-year drought, increased environmental awareness in the community; City water conservation incentives and programs and current economic conditions. Water consumption may increase to levels close to that prior to 2005 after the drought, but will then be reduced from this higher level due to conservation and plumbing code requirements. Note that part of the reason that Figure 4 shows per capita use decline in the future is that population is projected to increase. 'The assumption in this projection is that population will increase from an estimate of 63,406 in 2010 to 70,152 in 2020. (The census estimate for Palo Alto's population in 2008 is 63,370.) CMR: 212:10 Page 80f22 Figure 4 City of Palo Alto Water Usage Actual, Projected, Baseline and Target 250 r~ ~ 200 ~' ! 150 8 ~ § ~ 1 00 ~~ 50 !A! ~! ---Actual and Projected Consumption -SB 7 Baseline ---Target: 20% below baseline I:: --,--,--~-::: ---------, 11 .. _----.. ------- IActual . _ .... ----.-~-.. -- I . . . --------------.--------~---------~-------,--------,----. . . o+---~--~--~~~~--~--_+--_+--_+--~--~--~--~--~--~ Water Reduction Strategies The following three sections describe the water reduction strategies proposed, reviewed or discussed by staff. Each goal is broken down into three categories: Municipal Facilities and City Operations, ,Codes and Ordinances, and Residential and Commercial opportunities. Where applicable, cost and water savings and potential unintended consequences are described. Where described, water cost savings for residential, commercial or city operations are based upon retail rates and water cost savings for the whole commllnity are based upon wholesale rates. A. Strategies to, Reach 20% Below Proposed Baseline Staff believes that this goal of a 20% reduction over the proposed SB 7 baseline is achievable if the current programs are continued, and in some cases, improved. The proposed SB 7 baseline as described above is 217 gallons per capita per day. A 20% reduction would be 173.6 gallons per capita per day. These strategies were discussed at length internally and with community stakeholders. These strategies are summarized in the table below and are evaluated on their water savings impact and cost, effectiveness. The water savings impact is relative to the city's water use as measured by SB 7. The cost effectiveness takes into account approximate costs and cost savings due to water reduction. High cost effectiveness means the cost of the measure is greater than the benefit associated with the reduction in water usage. Low cost effectiveness means that the cost of the measure outweighs or is significantly higher than the benefits or vahle associated with the water use reduction. CMR: 212:10 Page 9 of22 .'.,', 'c~i~~~ry' A.1. Municipal Facilities and City o erations A.2. Codes and Ordinances A.3 Residential and Commercial o ortunities Demonstration Gardens and Education City Facility Updates Urban Water Mana ement Plan Rec cled Water Ordinance More Emphasis on Rebates A.I. Municipal Facilities and City Operations • Demonstration Gardens and Education .j ·.cok ..... eff~cti,,~iteS8 Medium Medium Medium Low Medium Medium Medium Medium Low High High Staff is working toward developing demonstration gardens at the Water Quality Control Plant and Mitchell Park Library. Water savings from such educational programs are difficult to quantify, but most case studies and reports on water conservation indicate that demonstration facilities are an essential component to individual participation in reduction efforts. Smart Garden Tours be could also be coordinated to promote the good water saving projects and behaviors that should be encouraged. • City Facility Updates: The Facilities Management Division is committed to managing and operating City buildings in a sustainable manner. Improving water efficiency in City buildings is crucial because high water consumption increases maintenance and life cycle costs for building operations. Reducing water use also' conserves precious water sources, reduces the amount of chemicals and energy needed to treat water, and reduces costs through lower water use and less sewage volume to treat. In short, lower water use decreases the envirOl11hehtal impact of our buildings. In mid-2009, Facilities Management initiated a multi-phase project to maximize water fixture efficiency with restroom urinals by.utilizing a rebate program offered by the Santa Clara Valley Water District (SCVWD). The scope of the project involved replacing older conventional urinals and flush valves used in male restrooms with high-efficiency urinals and flush valves. After thorough product evaluation, a high-efficiency model was chosen by Facilities Management. An informal bid solicitation process was then used to obtain the lowest cost for the new urinals, enabling the rebate amount to cover the full cost of each urinal. Bids ranged from $418 to $800 per urinal. The cost of materials was fully covered by the rebate program and resulted in a material cost savings of $23,000. The only cost to the City was the cost to install the urin:als. Installation of the new urinals was primarily accomplished by Facilities mechanics on weekends to minimize disruptions to regular maintenance work. Initially three City locations were chosen to perform the first phase of upgrades. City Hall, Cubberley Community Center, and the Municipal Service Center were chosen because the high number of occupants and visitors at CMR: 212:10 Page 10 of22 these locations would offer a qUicker environmental and economic payback. A fourth location, Rinconada Pool, was added later. While this facility was shut down for pool repairs, it presented an opportune time to upgrade the urinals at this facility. A total of 54 urinals were installed throughout these four locations. The new urinals chosen by Facilities Management are 92% more water efficient than the old urinals. The old urinals used 1.5 gallons per flush while the new high efficiency urinals use only 0.125 gallons per flush (one pint) and are controlled by automatic flush valves. Fixture water use calculations for all four locations estimate a remarkable urinal water savings of approximately 1.1 million gallons oi'water per year and a cost savings of$15,000 per year for water and waste water costs. Facilities Management will continue upgrading urinals at other City Facilities thr9ughout 2010 as staffing and budgets allow. A.2. Codes and Ordinances • Green Building Program and the Water Efficient Landscape Ordinance (WELO) The City's current Green 'Building Program encourages and, in some cases, requires proper site planning and water conservation through measures that reduce indoor water consumption, reduce outdoor water use for irrigation, promote the use of non-potable water sources, and reduce the overall quantity of water runoff from a site. This program impacts approximately 200 sites a year, primarily new consttuction and major renovations of residential and non-residential projects. While this program is new, water savings annually from these projects are expected to be conservatively 5,535,000 gallons per year for residences and 10,130,000 gallons per year for commercial projects. Water savings under this program are expected to increase in 2011 with enforcement of the CAL Green Building Code, which increases water use efficiency requirements through mandates for such items such as weather-based irrigation controllers at time of construction and use of water budgets. The Planning Depaliment is working collaboratively with the Utilities Department on incorporating the City'S existing Water Efficient Landscape Ordinance (WELO) requirements and necessary improvements into the Green Building Program to achieve further savings in 2011 and beyond. One of the reasons for this recommendation is that potential water savings from DWR's WELO are not great. These savings are included in the 2009 Water Conservation Implementation Plan, and in summary, could result in only 45,000 to 48,100 gallons per day. • 2010 Urban Water Management Plan (UWMP) .The 2005 UWMP included water conservation measures and programs that are expected to save about 4.7% of the City'S long-term water supply needs by 2030 (and 4.3% by 2020) in addition to the "natural" savings that occur as a result of changes in appliance efficiency standards in the plumbing code. As mentioned above, the 2005 UWMP is currently being updated. The 2010 UWMP will update projections based on known changes to the plumbing code and all existing and likely future cost-effective water efficiency programs. The analyses for this plan, including estimated costs and benefits are still not developed; however, it is expected that the 2010 UWMP will show greater savings than originally reported in the 2005 UWMP. BA WSCA is helping member agencies evaluate additional measures to be incorporated into the 2010 UWMP. RecyCled Water Ordinance CMR: 212:10 Page 11 of22 The City currently has an ordinance to promote the use of recycled water (CMR 203 :08) that requires customers (other than single-family residences) adjacent to the recycled water pipeline system to use the recycled water when it becomes available. The ordinance also requires large new buildings to add dual plumbing to their buildings so that, when recycled water is available, it can be used for toilet and urinal flushing. This ordinance prepares the City for the long term when the. recycled water distribution system is expanded. The adoption of the ordinance is consistent with the Ahwahnee Water Principles that were adopted by the City Council. A.3 Residential and Commercial Opportunities • Continued Emphasis on Rebates The Colleagues' Memo suggested this as one potential way to achieve reductions. In looking at ways to reduce potable water consumption, staff reviewed current rebate programs to determine appropriateness in terms of incentive and value to both the customer and the City. The chati below lists a number of the water conservation progratns from FY 2005 through December 31, 2009. These progratns are coordinated and partially funded by CPAU but delivered by the SCVWD. The chart details the program participation rates and water savings or estimates in g~llons. The total program expenditures from FY 2005 to date have been $772,829. .' . The S~cond Amendment to the MOU with the SCVWDwas approved by Council on April 27, 2009 (CMR: 200:09). It includes a budget of $245,905 for the current fiscal year with an anticipated water savings of 63 million gallons per year, or 172,506 gallons per day. Participants Item FY 05 to Mid FY 10 Water Savings (gallons) , . Residential: Water Wise House Call 2,485 8,491,296 . Res. Bigh Efficient Toilet (HET) Rebate 578 4,781,557 Res. Clothes Washer Rebate 1,913 . 12,299,836 Both ., Weather-Based Irrigation Controller Rebate 16 7,521,366 Landscape Conversion Rebate 155 5,403,427 Commercial: High Efficiency Toilet (HET) Installation 1,172 19,267,736 Clothes Washer Rebate 77 2,467,508 Indoor Water Audits 39 38,801,752 Irrigation Audits Performed . 87 52,060,800 . Pre-Rinse Spray Valves 178 12,993,904 TOTAL WATER SAVED (GALLONS) . 164,089,182 TOTAL PROGRAM EXPENDITURES $ 772,829 While it appears that the most successful progratns in terms of water savings are audits, both for irrigation and for commercial interiors, it should be noted that the, SCVWD report estimates of water savings are based on recommendations and not on actual implemented updates or changes CMR: 212:10 •. Page 12 of22 to.o.perations. To. pro.duce mere water savings, it co.uld be appro.priate to. increase the SCVWD pro. gram to. increase funds available fer the audits, washing machine rebates, and high efficiency to.ilets. If the City were to. decide to. expand its HET pro. gram to. pay the entire Co.st o.f replacing all high water usage to.ilets in the City, the Co.sts wo.uld be high. The American Co.mmunity Survey fro.m 2008 estimates that there are 27,000 single family residences in Palo. Alto., 13% o.f which were built between 1990 and 19990.1' after, and, therefo.re, will have lew-flush to.ilets using 1.6 gallo.ns per flush (gpt). Assuming that the remaining ho.useho.lds were built with an average o.f two. to.ilets, 50% o.f which are net lew-flush 0.1' high efficiency units, the City wo.uld need to. replace abo.ut 24,000 residential to.ilets. This wo.uld save an estimated 104,000 CCF 0.1' 77,792,000 gallo.ns per day and Co.st at least an estimated $7,200,000. Ano.ther effective pro. gram is the rebate to. replace lawns with Io.wer water using Bay Friendly landscaping;' CPAU has paid 155 such rebates since FY 2005. Water use reductio.ns are estimated to. be high, but no. firm estimate is currently available. It sho.uld be no.ted that the rebate currently pays a maximum of $3,000 per resident ($2,000 fro.m the SCVWD and $1,000 fro.m CPAU),and a maximum o.f $30,000 per business ($20,000 fro.m the SCVWD and $10,000 fro.m CPAU). This rebate amo.unt is typically much less than the Co.st o.f upgrading the landscaping. Sho.uld the City wish to. increase participatio.n in this pro. gram, the rebate co.uld be enhanced, but it wo.uld be Co.stly. The 155 rebates paid Co.st $155,000. Do.ubling the rebate amo.unt fro.m CPAU wo.uld increase this expense to. $310,000 fer just 155 rebates. Rebates fer co.llectio.n o.f rainwater fer use en landscaping are also available to. Io.cal residents and businesses thro.ugh the PWD's Sto.rmwater Rebate Pro.gram. With regard to. the level o.f incentive pro.vided by this rebate pro. gram, the Directo.r o.f the Io.cal tree pro.tectio.n group, Cano.py, has provided so.me insight fro.m· perso.nal experience, as she installed a large underground rainwater cistern in her yard in 2008. She retro.fitted her residential property to. accommo.date a 14,000 galien cistern at the Co.st o.f appro.ximately $30,000 to. $35,000, including the Co.st of the tank and installatio.n. Staff has researched and fo.und ether cistern systems which may be slightly mere econo.mical, but they are best suited for new co.nstruction due to the co.mplexity o.f the mechanical systems needed fer pumping the water fer irrigatio.n use, and the space co.nstraints present en develo.ped sites. Based en the high initial capital cost and the relatively small annual water costs savings, a rebate o.f $1,000 by itself is unlikely to. create adequate incentive fer installatio.n o.f a cistern. The Co.st o.f a cistern is probably o.ut o.f the price range o.f many Palo. Altans, and the $1,000 rebate has little impact en this price tag. The $50 rain barrel rebate is m~re enticing, since a 50-galien barrel can be purchased fer aro.und $100 and installed as a do.-it-yo.urself pro.ject. Rain barrels, ho.wever, can o.nly provide a fractio.n o.f annual irrigatio.n water needs. Mo.st Palo Altans living in a single family residence use abo.ut 40% o.f their annual water use 0.1' abo.ut 50,116 gallo.ns o.f water per year fer landscape irrigatio.n. Rain barrels, which typically held 50 to. 250 gallo.ns, unfo.rtunately are net able to. sustain the garden during the sunny summer mo.nths. The Sto.rmwater Rebate Pro. gram do.es have the po.tential to. generate a mo.dest amo.unt of savings, especially if the level ofparticipatio.n can be increased, and staff will co.ntinue to pursue it. CMR: 212:'10 Page 13 of22 Regarding rainwater for landscape ilTigation, one must use a drip or non-overhead spray ilTigation system, which could double the efficiency, but can not generally be used for grass. Thus the anticipated savings for potable water use could be increased if a drip system is used and grass is removed. In. summary, mcmy of the above programs are currently within the City's staffing plan or can be accommodated with current staff. Some programs such as increasing rebates programs will require increased funding and staff. Staff reviews these programs regularly to determine effectiveness and will return to Council if increased funding and staffing is recommended. B. Strategies to Reach 30% Below Proposed Baseline Staff has heard from a number of stakeholders that it should be the goal of Palo Alto to reach beyond the 20% reduction. from the proposed SB 7 baseline. Staff believes that a goal of 30% reduction from the SB 7 baseline could potentially be achievable, if funds and staff resources were available to implement the appropriate programs. The SB 7 baseline as described above is 217 gallons per capita per day. A 30% reduction would be 151.9 gallons per capita per day. This sec(ion outlines strategies that have been discussed internally and with community stakeholders. These strategies are summarized below and are evaluated based on their water savings impact and cost effectiveness. Category Strategy Water savings Cost impact effectiveness Remove turf, incorporate sustainable Medium Low irrigation and landscape techniques City Facility Updates Low Low A.I. Municipal WarningslN otices for Those Irrigating Low to Low . Facilities and During Rain Medium City Operations Include Water Use Information in the Medium Medium . Upcoming Home Energy Reports Install Rain Water Harvesting Low Low . Systems Expanded Recycled Water Program Medium Low and GrayWater Opportunities A.2. Codes and Increase the Inclining Block Rate for Medium High Ordinances Water Price Tiers ... Implement a Retrofit on Resale Low Low to Requirement .. Medium A.3 Residential I· Increase the Funding for Water Medium to Medium to and . Conservation Rebates High High Commercial . .. Low to Medium Opportunities Water Budgets Medium Set Water Use Targets and Goals Low Medium Half Gallon (0.5) Gallon Per MInute Low Medium (GPM) Aerators . . . ... ,L r<!~ :'L .'LA: , ,. OJ CMR: 212:10 Page 14 of22 High Efficiency Toilets (HETS) Set Stringent Water Use Targets and Medium Medium Goals B.1. Municipal Facilities and Operations • Remove Turf; Incorporate Sustainable Irrigation and Landscape Techniques PWD currently has three artificial turf playing fields. PWD received 12 bids to replace one (1) field at Cubberley Community Center in February 2009. The bids ranged from $895,000 to $1,650,000, 'depending upon the alternatives proposed. The project was completed for approximately $1,000,000 in July 2009. The anticipated water savings the one field at Cubberley is 208,911 gallons annually or just under $14,000 although this has not been verified. There are two other fields at the newly constructed Stanford/Mayfield site on the corner of Page Mill and EI Camino. These were installed in 2007 with mixed results. Some players do not like the feel of the synthetic grass, although others prefer it due to the absence of mud or bald spots. The benefits for artificial turf include reduced maintenailce and no pesticide use, although the artificial turf needs to be replaced every 8-10 years and only the more costly artificial turf is recyclable. The City has 10 more soccer fields that have not been converted to artificial turf. If the City were to convert five more at a cost of $5,000,000, the savings would be approximately 1 million gallons annually which equates to 2,739 gallolls of water per day. If the City were to replace 10 playing fields at a cost of approximately $10 million, the anticipated water savings would be 2 million gallons per year, based upon the anticipated savings for the Cubberley field. All grass on non-playing fields could also be removed and replanted with native grasses or other climate-appropriate plants that are drought tolerant. This reduction in water use compares to the current total City facility consumption of about 662,850 gpd annually, including the treatment plant. PWD is also looking into the Kapillary Irrigation Sub-Surface System (KISSS)1 which could potentially saVe up to an additional 30 to 70% of i'rrigation water use, depending upon is the type and location of irrigation hardware replaced:' Foothills Park staff is also looking into replacing its irrigated fields with native plantings. There are 15 acres of irrigated fields in Foothills Park. These fields use approximately 15.6 million gallons of water per year for itTigation. Staff is working with Acterra on a pilot program to replace a small portion of this area with plantings from Acterra's Native Plant Nursery. The cost to replace the Whole area is estimated at more than $1,000,000 and the expected water cost savings are about $90,000 per year based on the retail cost of water. The expected water savings to the General Fund would likely be realized after two to three years, which is the estimated 'establishment period for the native grasses used in the project. The preliminary calculation for a discounted payback was 8 to 10 years (even with upcoming steep SFPUC rate increases for water supply due to upgrades to the water delivery system). This is net of the $30,000 rebate provided by SCVWD and CPAU. The estimated annual water savings is approximately 12,288,144 gallons, or 33,666 gallons per day. I http://www.kisssusa.com! CMR: 212:10 Page 15 of22 Finally, PWD has started a program to mulch the shrub beds to retain water on site. It is hard to determine the exact amount of water saved, but this sustainable landscape management technique has become common. • City Facility Updates: Last year staff developed a comprehensive outreach program including an educational conservation display at the Rinconada swimming pool. The community responded well to this educational program. There may be an opportunity to further update and expand this program and potentially compliment it by fixing the leaky showers in the pool's locker rooms, if funds are available. This could result in water savings to the city and show Palo Alto's commitment to water conservation. • , 'V lIrningsIN otices for Those Irrigating During Rain It. was, .recommended th~t staff send out emails to, customers telling them to turn off their irrigation systems when it is scheduled to rain. In addition, one customer recommended an ,additional email after the rain, telling them to turn their systems back on. While it might seem redundant, ,this customer mentioned that the reason he does not turn off his irrigation system when it rains is because he never remembers to turn it back on! It is unknown how much water thi~ would save, although the expectation is that some staff resources would be required at some co~t to implement this program. • Include Water, Use Information in the Upcoming Home Energy Reports Staff is negotiating a contract to provide Home Energy Reports and will be going to council for approval 'op April19th. The contractor will be able to provide reports that compare a resident's energy usage with an average of similar homes in the area, but at this point in time, water comparisons are not available. Staff is working with the contractor to add water use information in the upcoming 12 to 24 months at a cost of potentially $75,000 to $100,000 per year. It is , unknown how much water this will save, but studies of energy use reductions in other cities have found a 2 to 3% average reduction after the reports are mailed. ' • InstaJl Rain Water Harvesting Systems An additiomil recommendation is for the City to explore the addition of rain water harvesting , ~ysterns to' store rain water for future irrigation ~sage. This has been successfully implemented at cities in Australia. At this point in time, water savings and cost estimates are not available, but costs could be, high if the appropriate space for a rain water harvesting system is limited or if significant modifications to existi~g irrigation systems are required. These systems could make sense if high water using landscaping, including turf, is replaced with drought tolerant plants. , This way, rain harvesting could provide a much larger amount of the irrigation requirements than would be the case with plants that have a high watpr requirement. Staff conducted "a preliminary investigation into the feasibility of rain water harvesting at existing City facilities. The most likely candidate .iocationsare those with a combination of large roof areas and extensive site landscaping, including Cubberley Community Center, the Municipal Service Center, Main Library, Lucie Stern Community Center, and the Art Center. At these locations, there appears to be the potential to collect enough rain water from building rooftops (each square foot of roof area generates approximately nine gallons of rain runoff over a CMR: 212:10 Page 16 of22 typical rainfall year) to provide a significant percentage of the site's annual irrigation water needs. Assuming that a 50,000-gallon cistern could be accommodated into these sites and that a significant amount of collected water could be used for site irrigation during dry spells throughout the course of the rainy season, up to 100,000 gallons of water could be saved at each rain water harvesting site each year. The installation cost of a rain water harvesting system would vary depending upon the specific conditions of each site, but would likely range from $100,000 to $150,000 per site. Before staff could provide a more definitive recommendation on rain water harvesting at City facilities, a more detailed feasibility study would be required to determine the potential water savings and the construction costs. In order to increase the amount of rain water harvesting conducted by local residents and businesses, the rebate amounts offered by the PWD's Stormwater Rebate Program could be increased in order to offer a better incentive for these systems. It is unclear at this point how much the rebates would have to be increased in order to achieve a meaningful increase in rain water harvesting by members of the community. Additional funding would need to be secured from the Public Works or Utilities Departments to increase the rebate amounts above their current levels. Another option would be to make rain water harvesting mandatory for specific types of new construction and remodeling projects as part of a' modified Green Building Ordinance. B.2. Codes and. Ordinances • Expanded Recycled Water Program and Graywater Opportunities .The City currently has completed a Recycled Water Facility Plan (December 2008), based upon the Council-adopted ordinance to promote the use of recycled water (CMR 203 :08), and is completing the environmental documents for the project to expand the recycled water distribution system. A Capital Improvement Project to construct the extension to the recycled water distribution line is in the plarming process. The project is projected to save 900 acre feet or about 293 million gallons per year of potable water and reduce treated wastewater discharges to the, Bay. Initial capital cost estimates to construct the recycled water pipeline total $33.5 million. The City is currently pursuing federal and state funding opportunities to help lower the City's cost of the project. Annualized capital and operations costs are projected to be $2,500 to $2,700 p<:;r aCre foot under the most likely funding scenario. The city has participated in a regional working group to provide comments .. to the Californian Department of Housing and COlllmunitY,Development on regulations for residential graywater systems. It is not possible at this time to estimate potential water savings or costs for this type of initiative. • Increase the Inclining Block Rate for Water Price Tiers One method that staff is currently considering is the expansion of water price tiers to add additional, higher priced tiers and/or to increase the price of water consumption at higher levels of consumption. This method has the advantage of providing economic incentives to customers to conserve. and is often seen as the easiest way to encourage conservation. An expressed concern about this method is that water use is typically "inelastic;" that is, consumption for most customers (both residents and businesses) does not typically change by a significant amount when, there are changes in rate structures. This inelasticity is due to a variety of factors, including: • Comparatively speaking, water is relatively inexpensive; CMR: 212:10 Page 17 of22 • Thos.e with the greatest ability to save (larger yards, more bathrooms, hot tubs and pools, and so on), typically have the resources to pay higher bills; • Those who would be most likely to restrict consumption due to higher prices are often using the least amount of water and have the least flexibility in reducing usage; and • Businesses that use water for operational needs, from washing dishes to production, are understandably focused on increasing or maintaining production and revenue. Staff will consider the implementation complexities involved in creating greater tiers to the rate structure when it prepares a recommendation on water rate structural changes. Once that· is determined, estimated water savings and potential benefits and costs of implementation will be identified. • Implement a Retrofit on Resale Requirement A few cities have passed requirements that all inefficient plumbing fixtures be replaced at the point of sale. This proposal does have water reduction capabilities and would upgrade the housing stock within the City. However, these requirements are typically controversial and complicated to implement, as the real estate community, current occupants, and others see this step as an unnecessary complication and cost that could reduce the value of homes in comparison to neighboring communities. Since only about 4702 homes, including single family homes, condos and townhomes are sold each calendar year, assume that 500 toilets would be replaced. Each home is assumed to have two toilets per home, but perhaps 50% would likely need to be retrofitted. Water savings from the toilet replacements required in the RECO would be an estimated water savings of 1,620,603 gallons per year (3,241 gallons per year per toilet) at a cost of $300 per tbilet. Savings from aetators installations and· other RECO replacements would be much less than for the toilet upgrades. B.3 Residential and Commercial Opportunities • Increase the Funding for Water Conservation Rebates The MOU with the SCVWD for implementation of water conservation and efficiency rebates ends in June 2010. Staff is currently reviewing the potential for expanding the number of rebates and/or increasing the amount available to customers to incentivize participation in programs. All increased incentives to the customers would come at a cost to the water utility, al1d water savings for some of these options are still being developed. However, staff analysis of the most cost- effective programs that have yielded the greatest water savings include indoor and outdoor water use surveys and rebates for high efficiency toilets and high efficiency clothes washers. • Water Budgets CPAU staff continueS to review the option of developing water budgets for some segment of the customer popUlation, such as all customers with irrigation meters or those who are the largest water customers. This would require additional staffing in Utility marketing services (UMS) to implement the programs and enhancements to the utility billing software and a ramp-up in timing of smart meter implementation for these customers. The costs would be higher during ramp up time,· presumably in the hundreds of thousands of dollars for software and meter purchases, but on an ongoing basis would at least require one staff person at a cost of $75,000 to $100,000 per 2472 homes were sold in Palo Alto in 2009. This included 387 single family homes and 85 condos or townhomes. CMR: 212;10 Page 18 of22 yeai'. Actual water savings would depend on the number of customers involved in the program, but can be estimated at 5% for participating customers. Planning staff is interested in researching if there are ways to enforce a performance period after construction is cornplete to confirm that the water budgets developed during design and construction are being maintained during operation. This is a similar concept to recommissioning, which is practice to ensure that a building's designed energy savings continue into operation. This would only be applicable for projects required to go through the Green Building Program, but might provide good data and feedback on designed versus actual water performance. . • Set Water Use Targets and Goals CPAU staff and other stakeholders have suggested that the City set well published goals or targets for savings per resident. Some jurisdictions, for example, have a target water use saving goal of 10 gallons per capita per day. Note that residential per capita water use for the City of Palo Alto is currently ilboutl20 gallons per capita per day. This includes water sales to residential single-and multi-family customers only. Staff could enhance its website and other promotional activities to provide residents with a list of options that could be implemented on a . more regular basis to achieve target water use reductions. Assuming that privacy issues can be dealt with appropriately, some type of neighborhood competition program could be developed. This program would require additional funds for marketing and educational development and potentially a requirement to develop a program to analyze water usage by neighborhood. Water savings for the total utility, assuming all or a large percentage of residents participated in the program, could be as high as 4% of water consumption • Half Gallon (0.5) Gallon Per Minute (GPM) Aerators CPAU could work with Acterra and the SCVWD to distribute 0.5 gpm faucet aerators for bathrooms. (as opposed to current 1.5 gpm aerators provided by SCVWD). Other jurisdictions have implemented this option with mixed results because some people feel that the reduced water flow is not sufficient. SCVWD currently provides the 1.5 gpm aerators to residents who participate in the Water Wise House Call Program, as well as those who are involved in the Greel1@Home audits through Acterra. If Palo Alto chooses this alternative, CP AU would need to provide the new 0,5 gpm aerators to Acterra at a relatively small cost, assuming the current rate of about 125 audits per year continues. Assuming 125 homes participate in the Green@Home audits each year, the anticipated annual water savings would be 730,048 gallons per year. The anticipated water savings if all homes in Palo Alto had 0.5 gpm aerators installed iil their bathrooms instead of the 1.5 gpm aerators would be 145,999,876 gallons per year. This estimate assumes 100%·ri1arket penetration. The City would need 25,000 to 50,000 of the 0.5 gprn aerators at a cost of $62,500 to $125,000 to realize these water savings. • Set Stringent Water Use Targets and Goals Water budgets could be developed "for all custorners based on lot size, previous usage, or some other criteria. Fees or fines for violating these budgets could be authorized through the Administrative Penalty Code. This option could produce water savings up to 5% of total (l0% CMR: 212:10 Page 19 of22 of landscaping usage for residents), but is estimated to require significant costs in development and result in significant levels of unintended consequences. This budget is yet to be developed. In summary, the above programs will most likely help Palo Alto reach an extended goal of 30% reduction from the proposed SB 7 baseline. Staff would potentially need.to engage an outside consultant to further vet these additional strategies and calculate more accurate savings and cost figures. C. Strategies to Reach 40% Below Baseline Goal Staff has also heard from some stakeholders that it should be the goal of Palo Alto to reach beyond the 20% from the proposed SB 7 baseline, to a goal of 20% reduction from last year's (2009) water use level, which would be similar to 40% below the proposed SB 7 baseline. Staff b~lieves thatthis will be difficult and costly to reach. The SB 7 baseline as described above is 217 gallops per capita per day. A 40% reduction would be 130.2 gallons per capita per day. This section briefly outlines a few strategies staff has discussed at length internally and with community stakeholders. SOlI)e of the strategies are controversiaL These strategies will require more ,time to assess both in terms of cost, water savings and unintended consequences. This. level of reduction could require severe reduction landscape irrigation, as landscape irrigation accounts for 40% of residential use, as described in Figure 3 on page 4. The only feasible way for residents to reduce 40% of water consumption would be to either eliminate or severely. restrict all landscape irrigation, in addition to replacing all indoor appliances and fixtures with more efficient units. Businesses would face similar restrictions. Currently Palo Alto residential water consumption is 120 gpcd as outlined in the graph in the Colleagues' Memo. Reducing this by 20% (since 20% reduction from current use is about 40% .reduction from SB 7 baseline use) would establish a goal of 96 gpcd for residenti<tl per capita lise. The Citycurr(;)ntly classifies all City-owned potable groundwater wells as emergency stand-by only with the California Department of Public, Health (CDPH) permitting agency. Drilling new wells for irrigation use is an option that c.ould be considered, but has not been investigated in detail. Another option that had been discussed in public forums was replenishing the ground water with our, recycled water, as is done in Southern California. Staff will need additional resourCeS ,and time to be able to properly ass()ss this option. " Another option that has been reviewed is, to use, ,the water currently pumped out of such locations as the Oregon Expressway underpass for dewatering. This would require infrastructure development (piping, storage, and treatment) in order to use the water for irrigation purposes. These costs are so high as to render the option to be uneconomic. ' Other site planning strategies which, could be incorporated into the City's update to the Green Building Code and that could have an impact on potable water use are: CMR: 212:10 Page 20 of22 • Reduce allowed amount or percentage of turf on custorner-owned land significantly and mandate Bay Friendly plant palettes beyond those required in the Green Building Program; • Only allow irrigation during certain times or day or on certain days of the week; and/or • Discourage or even outlaw use of potable water for landscape irrigation.3 The strategies to reach 40% reductions. from the proposed SB 7 baseline are still in review by staff. Staff may also need to engage an outside consultant to detail these additional strategies and calculate more accurate savings and cost figures. Therefore, estimations of gallons saved or cost to implement is not yet available. It can be assumed that most of these options, if implemented, would cost a significant amount of money and may face some unintended consequences. RESOURCE IMPACT Strategies described to meet the 20% reduction goal are within the staffing plan and budgets. Strategies described to meet a 30% goal would require additional funding and staff resources, as outlined in that section of this report. POLICY IMPLICATIONS. Approval of this policy is consistent with current City policies. It also supports the Council's priority of Enviromnental Protection. ENVIRONMENTAL REVIEW This report does not meet the definition of a project pursuant to Public Resource Codes sec 21065, this California Enviromnental Quality Act (CEQA) review is not required. ATTACHMENTS A. Colleague's memo for 20% Water Reduction by 2020 B. Section of CMR 393:05; Modified Ahwahnee Water Principles for Resource Efficient Land Use Proposed for Adoption by the City of Palo Alto. OTHER RESOURCES • High-contact, hands-on outreach program changes customers' water use behavior, By Annette Humm Keen, David Keen, Guy E. Francis, and Adam Wolff http://www.awwa.org/publications/ A WW AlournalArticle.cfm ?itemnumber=53987 • Principles for Level 3 Enhanced Water Restrictions for All Council/Developer Outdoor Irrigation from the Government of South Australia 3 There are a number of jurisdictions in Australia and in the south western U.S. states that have implemented or are looking at these measures. CMR: 212:10 Page 21 of22 http://www.sawater.com.auINR/rdonlyresI77501150-EOD9-4E8F-8AB3- A65 8 C 13 2824 AlO/L3 Enhanced Water RestrictionsCouncils. pdf PREPARED BY: CITY MANAGER APPROVAL: CMR: 212:10 Joyce Kinnear, Manager Utility Market Services Catherine Elvert, Utility Account Representative Nicolas Procos, Sf. Resource Planner, Utilities Kristin Parineh, Associate Planner . Joe Teresi, Sr. Engineer, Public Works Debravan Duynhoven, Assistant to the City Manager for Sustainability I CITY MANAGER Page 22 of22 • Attachment A DATE: ,October 26, 2009 TO: City Council Colleagues FROM: Council Members Klshimoto, Klein and Yeh SUBJECT: Directing the City Manager to Explore Ways to Reduce Potable ,Water Use In Palo Alto by 20% by 2020. , Recommendation We ask our Council colleagues to join us In directing the City Manger to explore and recommend ways the City can reduce our community-wide use of potabl~ water by 20% by 2020 in conformance with the Governor's water conservation directive. ' We would like the City Manager to come back to Council with his interim recommendations on World Water Day -March 22, 2010.. ' Background, Palo ,Alto. purchases its water from the San Francisco Public Utilities Commission (SFPUC). Roughly 85% of SFPUC water comes from the Tuolumr)e, River via the Hetch Hetchy Water System and 15% comes from local sources such as Alameda Creek and Crystal Springs Reservoir. Palo Alto's contract with the SFPUC guarantees the City up to 17 million gallons of water per day (mgd) during wet and normal years. Palo Alto currently uses an average of about 13 mgd. Palo Alto is a member of the Bay Area Water Supply and Conservation Agency (BAWSCA), which represents the SFPUC's 27 wholesale water customers. The average per capita dally reSidential water use In the BAWSCA territory is 90. gallons per day (see attached graph). The average in Palo Alto I,s 120 gallons per person per day, one of the highest rates In the region. There is much room for improvement. , As a result of th'e Water System Improvement Program that the SFPUC approved last year, the total ,amount of water allOcated to, BAWSCA will be capped at 184 mgd until at least 2018. To stay within this cap, BAWSCA has committed to conserving or recycling an additional 22 mgd. By reducing its water use, Paio Alto will play its role in helping BAWSCA stay within the cap. Other BAWSCA agencies also will be embarking on water conservation and recycling programs. On February 28, 2008 Governor Schwarzenegger proposed a comprehensive plan for improving conditions in the Sacramento-San Joaquin Delta, Including an aggressive new goal for water conservation. The first element on the Governor's list was "a plan to achieve a 20 percent reduction in per caPita water use statewide by 2020." Conserving water helps protect natural resources. The Tuolumne - designated a federal Wild and Scenic River in 1984 -provides water for 2.4 million people in the Bay Area, as well as water for agriculture in the Central Valley. Currently, 60% of the Tuolumne Is diverted for human uses, and as a result the River has suffered. For example, the salmon population has plummeted from 18,000 In 2000 to fewer than 500 last year. Conserving water also will prepare Palo Alto for an uncertain future. As a result of population growth and climate change, water'will become scarcer in coming years and there will be Increasing competition for this vital resource. It behooves the City to begin planning for this challenge now. The new Water Supply Agreement between the SFPUC and Its 27 wholesale customers (Including Palo Alto), represented by BAWSCA, allows member agencies to transfer or sell excess water allocations. This could help drive more Innovative water programs and practices. Because Palo Alto Is allocated 4 mgd more water than it uses, we have the potential to sell our excess water to other agencies to help fund our water conservation and recycling programs. Possible City Actions Some opportunities the City Manager might explore include the following measures: • Increasing the use of recycled water from our Wastewater Treatment Plant. Opportunities might include using recycled water to recharge . our upper aquifer and using that water for landscape Irrigation. • Promoting the use of graywater on site. Recent changes to the plumbing code have made this a little easier. • Recommending a water efficient landscape ordinance that encourages the use of drought-tolerant plants and trees .. ' • Expanding water conservation programs, such as, but not limited to, the use of mulch material to encourage water retention In adobe soils and the use of precision water control and monitOring devices to ensure the appropriate amount of irrigation for fields and parks. • Using pricing incentives to encourage greater conservation: .' • • Working more closely with our largest commercial and residential water customers to encourage more conservation. • Exploring a retrofit-on-resale ordinance that requires properties to be upgraded with wafer efficient appliances ahd devices at the time of sale. • Implementing a water budget program similar to that used in Redwood . City. • Exploring ordiriances aimed at reducing water waste, such as banning the use of hoses to wash off driveways and sidewalks. • Expanding our rebate program for water-efficient appliances. This memo has been reviewed by staff. We look forward to discussing this recommended action with you. B'AWSCA Annual Survey -FV 2007.08 63 Residential Per Capita Consumption andSingle.Family' , Average Monthly Use Among BAWSCA Members. FV 2007·08 $tanford and Guadalupe Valley excluded due to unique ~ervlce areas; California Water Service Is separated Into its three service areas. ' 'Residential Single-Family Service 'Residential Per Capita Average Monthly Use Daly City 106,361 2,671,556 51.5 8 East Palo Alto 29,690 774,219 53.4 "n/a Brisbane 3,159 90,331 5B.6' 5 North Coast 40,000 1,155,924 59.2 "nla CalWater -South SF 57,370 1,701,010 60.8 9 San Bruno 40,165 1,356,917 69.2 "nla Hayward 149,205 5,086,793 69.9 10 Milpitas 69,419 2,380,541 70.3 12 Coastside 18,887 674,954 73.2 9 Skyline' 1,658 63,885 79.0 11 Millbrae 21,387 834,788 80.0 10 Mountain View 73,932 3,050,492 84.6 10 Mld·Penlnsula 26,050 1,108,593 87.2 10 Redwood City 83,895 M31,006 8B.7 11 Estero 36,000 1,576,730 89.8 13 Santa Clara 114,238 5,109,682 91.7 14 CalWater • Mid-Peninsula 124,279 5,615,040 92.6 12 AlamedaCWD 331,000 15,051,716 93.2 13 Burlingame 28,100 1,298,888 94.7 11 Sunnyvale 133,721 6,271,627 96.1 13 San JQse 14,800 ,698,347 96.7 10 Palo Alto 63,467 ),536,21 !p. 114.2 15' Menlo Park 10,308 748,048 148.7 16 CalWater • Bear Gulch 55,501 5,633,409 208.0 28 Hillsborough 10,825 1,678,233 317.7 33 Purlssima Hills 6,050 985,962 334.0 40 Totals 1,661,467 73,070,171 Total Averages 90.1 14 Median of Agencies 83.4 'Includes multi·family and single family accounts . .. East Palo Alto, North Coast, and San Bruno report multl·family with single family use. , Source: BAWSCA FY 2007-08 Annual Survey Table VIA Currant Water U.a Par CapIta January. 2009 " Agenda Item 114-8 .• How Efficiently is Water Used Today? 350 300 >-tV " ~ '" c. 250 .~ c. G ~ '" 200 a. " c .!1 i 150 OJ' .. ::l 'jij .~ 100 " ~ '" " ... 50 tV M ~ o Residential Per Capita Consumption -FY 2006-07 (In gpcpd) westborough. OalyClly East Palo Alto Brlg!)ane NonhCoesl cws. Soulll SF S'n Bruno Haywarc:{ Milpitas skyline C08stS]di Millbrae Mountain Vi8\¥ MltI·Penlnsul, MEQ,IAN(9t.1) Redwood City Estero Sentaelm· CWS· Mld·Peninsula A!amed. sunn~.r. San JOlt :' o Burlingame Pa!()Atlo M!!nloPar1C. ews· Bear GulCh HIIISl)arouOh Purissima Hills 10 20 Figure \17 A High Water Using Areas Represent a Small Percentage of the Population 30 40 50 60 70 ao 90 100 Cumulative Percentage of Population Attachment B The Modified Ahwahnee Water Principles for Resource Efficient Land Use Proposed for Adoption by the City of Palo Alto Preamble Cities and counties are facing major challenges with water contamination, storm water runoff, flood damage liability, and concerns about whether there will be enough reliable water for current re~idents as well as for new development. These issues impact city and county budgets and taxpayers. Fortunately there are a number of stewardship actions that cities and counties can take that reduce costs and improve the reliability and quality of our .water resources. The Water Principles below complement the Ahwahnee Principles for Resource-Efficient Communities that Were developed in 1991. Many cities and counties are already using them to improve the vitality and prosperity of their communities. Community Principles 1. Community design should be compact, mixed use, walkable and transit-oriented so that automobile-generated urban runoff pollutants are minimized and the open lands that absorb water are preserved to the maximum extent possible. 2. Natural resources such as wetlands, flood plains, recharge zones, riparian areas, open space, and native habitats should be identified, preserved and restored as valued assets for flood protection, water quality improvement, groundwater recharge, habitat, and overall long-term water resource sustainability. 3. Water holding areas such as creek beds, recessed athletic fields, ponds, cisterns, and other features that serve to recharge groundwater, reduce runoff, improve water quality and decrease flooding should be incorporated into the urban landscape, while meeting best practices for mosquito control and groundwater pollution prevention. 4. All aspects of landscaping from the selection of plants to soil preparation and the installation of irrigation systems should be designed to reduce water demand, retain runoff, decrease flooding, and recharge groundwater. S. Permeable surfaces should be used for hardscape where practical. Impervious surfaces should be minimized wherever practicable or runoff water should be redirected so that land is available to absorb storm water, reduce polluted urban runoff, recharge groundwater and reduce flooding. 6. Dual plumbing that allows gray water from showers, and non-kitchen sinks to be reused for subsurface landscape irrigation should be encouraged for new and remodeled buildings, and education programs should be developed on the proper construction and operation of systems that use grey water. 7. Community design should maximize the use of recycled water or other nonpotable water supplies for appropriate applications including outdoor irrigation, toilet flushing, and commercial and industrial processes. Purple pipe should be installed in large, new construction and remodeled ("remodeled", used here, means when the plumbing is being replaced) buildings in anticipation of the future availability of recycled, or other nonpotable, water. . 8. Urban water conservation technologies such as low-flow toilets, efficient-clothes washers, and more efficient water-using industrial equipment should be incorporated in all new construction and retrofitted in remodeled buildings. CMR:367:0S Page 8 of9 9. Ground water treatment and brackish water desalination should be pursued when necessary and practical to maximize locally available, drought-proof water supplies. Implementation Principles 1. Water supply agencies should be consulted early inthe land use decision-making process regarding technology, demographics and growth projections. 2. City and. county officials, the watershed council, LAFCO, special districts and other stakeholders sharing watersheds should collaborate to take advantage of the benefits and synergies of water resource planning at a watershed level. 3. The best, multi-benefit and integrated strategies and projects should be identified and implemented before less integrated proposals, unless ljrgency demands otherwise. 4. From start to finish, projects and programs should involve the public, build relationships, and increase the sharing of and access to inforl1)ation. The pa11icipatory process should focus on ensuring that all residents have access to clean, reliable and affordable water for drinking and recreation. , 5. Plans, programs, projects and policies should be monitored and evaluated to determine 'if the expected results are achieved and to improve future practices. CMR:367:05 Page 9 of9 TO: FROM: DATE: SUBJECT: HONORABLE CITY COUNCIL CITY MANAGER DEP AR'fMENT: City Manager's Office APRIL 19,2010 CMR: 200:10 Update on City Sustainability and Environmental Initiatives Including a Report from the Community Environmental Action Partnership (CEAP) This is an information report on ongoing environmental initiatives and no Council action is rcquired. Thc following report updates infonnation brought to Council on April 27, 2009 (CMR217:09). DISCUSSION COMMUNITY ENVIRONMENTAL ACTION PARTNERSHIP The Community Environmental Action Partnership (CEAP),s annual report is attached to this document (Sec Attachment A). More information on CEAP's plans, meetings and discussions is available at www.pa-ceap.org. CLIMATE PROTECTION PLAN Staff will present a separate report on progress on Climate Protection Plan Update on April 19,2010. GREEN BUILDING AND CONSTRUCTION & DEMOLITION DEBRIS PROGRAM Staff will present a separate report on progress on Green Building and the Construction & Demolition Program on April 19,2010. GREEN PROCUREMENT Green Procurement, also known as Environmentally Pre felTed Purchasing, is the purchase of products or services that have a reduced impact on human health and the environment when compared with competing products or services that serve the same purpose. Staff has completed its three-year workplan for greening several City products, services and CMR: 200:10 Page I ofl6 operations. In March 2010, the City of Palo Alto's Green Purchasing Program received the Green California Summit and Exposition Award for Leadership in Green Purchasing. Highlights of accomplishments include green specifications for: • Fluorescent lights to require low-mercury and highest efficiency lamps • Out-of-house printing to include reduced packaging, 100% post-consumer recycled content paper for utility bill inserts. The pdnter (Prodigy Press) is also required to prompt departments to consider recycled-content paper before each print job and must become certified as a green Printshop through the Santa Clara County Green Business Program. • Pest control and landscape maintenance contract requirements to reduce the toxicity of pest control and move towards organic fertilizers and "Bay Friendly" landscape maintenance techniques. In-house efforts to purchasc less-toxic pest control products have also yielded excellent results and are reported on in a separate city manager report. • Copiers and printers purchased by the City are required to arrive preset for duplexing. • Computers and monitors must be EPEA T Gold Certified (Elcctronic Product Environmental Assessment Tool). EPEAT is a third-party organization that certifies laptops, monitors and desktop computers based on reduced toxicity, product longevity, energy conservation, performance, and standards for end-of- life management for products and packaging including no oversea disposal of electronic waste. Increased responsibility placed on manufacturers and contractors for the elimination or take-back of non-recyclable packaging, hazardous waste and "universal wastes" (e.g., fluoreseent lights, e1eetronics, ete.). • Green Business Certification: A statement in several contracts states the City's preferenee to work willl Bay Area Green Business Certified companies, or companies that are en route to completed certification. This requirement will be added as new contracts and purchasc orders are issued. Green Purchasing also includes greening operations to make the best product decisions and to minimize waste and related costs. Efforts to green purchasing operations include a successful 2009 pilot project offered by the Utilities Department to provide life cycle costing workshops for City staff and Utilities large commercial customers. Utilities will continue to offer one or two workshops each year. As bids for contracts are returned, inaividual divisions will need to evaluate the balanee of price, performanee and environmentallhuman benefits in deciding whether to pay any increased prices for improved products and services. In some cases price changes may be neutral or may decrease through product use efficiencies. FY 2010 goals include furthering requirements for packaging and product producer responsibility, continuing to add preferences for vendors to be certified as a Santa Clara County Green Business, increasing requirements for vendor reporting, and greening three-five contracts and goods each year. CMR: 200:10 Page 2 of 16 OPEN SPACE Foothills Fire Management Plan. On May 18, 2009 Palo Alto City Council adopted a Mitigated Negative Declaration and the Foothills Fire Management Plan. This plan is an update to the 1982 and 1997 Foothill Fire Management Plans. The revised plans include fuel treatment strategies for specifically identified sensitive areas within Foothills Park, Pearson Arastradero Preserve and segments of Skyline Boulevard, Page Mill, Arastradero and Los Traneos Road. In addition the Plan includes law enforcement (evacuation, notification/warning [CANS], Block Preparedness Coordinator Program), open space operations (Ranger staff), Utilities (water supply and related infrastructure), Public Works, and other areas. The plans recommend that staff develop a Foothills Emergency Plan and that thc City support the formation of a Midpeninsula Foothills Emergency Forum (MFEF), similar to that created in the East Bay following the Oakland Hills Fire of 1991. The objectives of the plan are: • Life Safety • Structure and Infrastructure Protection • Ignition Prevention • Fire Containment Funding is needed for implementation of any new work under the plan. The city is eurrently seeking grants for implementation and for formation of the Midpeninsula Foothills Emergency Forum. Baylands Conservation Plan. Due to the City's budget shortfall, the completion of the Baylands Conservation Plan is on hold for at least the next year. The first chapter, which considers the vegetation of the Baylands tidal areas, has been completed by a consultant and reviewed by staff. The chapters on hold were to analyze public access and wildlife habitat at the Baylands. The cost of this consulting work, bid at $50,000 for the next phase, was eliminated from the Open Space operating budget in the mid-year budget adjustments (CMR:145:09). This project was chosen for postponement in order to be able to continue vital resource management projects. In order to continue the development of the eomprehensive plan, staff is exploring completion of these chapters as student thesis projects using students from Stanford University or San Jose State University. PALO ALTO DOWNTOWN FARMSHOP On March 31't, the Palo Alto downtown FarmSho~ re-launched at Lytton Plaza following a unanimous approval of eouncil on March 1St , 2010 of a revised FarmShop Plan. (CMR: 160: 1 0) Staff has hired a volunteer FarmShop Markct Manager replacing a paid position. The intent of this program was to provide local, organic produce for the CMR: Page 3 16 community and City employees, which is in line with the City's overall goal of sustainability. The FarmShop also has a related CSA program managed by Capay Valley Growers which 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. SUSTAINABLE URBAN FOREST PROGRAM The Urban Forest Management Plan was funded by Proposition 84 bond fund grant, which was for $66,000. The project lead is Gloria Humble. City projects under this plan are: 1. Street Tree Inventory Grant $120,000 -Eric Krebs, Project Lead Street Tree Inventory, Data Integration and Analysis Contract No. Cl 0135076 was fully executed on March 15 2010. This is a major component to the Street Tree Management Plan. This fundamental task is underway and will result in a product that can be integrated into the City's existing tree database and GIS. The project completion datc is June 30,2011. When completed the tree inventory will provide aecurate baseline information about the City's tree resources which will, in turn, influence subsequent tasks related to the Street Tree Management Plan a major component to the Urban Forest Master Plan. It will also influence PW ITree Seetion's tree maintenance procedures. Currently PW contracts area pruning to satisfy due diligence for the City's tree care. The inventory will identify work needed by priority. One of the anticipated results will be the redirection of our work priorities and procedures. The Public Works plan is to use in- house and contract crews to catch-up on these priorities prior to returning to area pruning. We will know more when the inventory and analysis is completed on June 30,2010. 2. Tree Speeies Database: This is another fundamental task that is also underway. A subcommittee of the Urban Forest Master Plan team has done considerable work on a tree species database. The team comprises ISA certified arborists Eric Krebs, Steve Scott, Gino Segna and Dave Dockter from the City of Palo Alto and ISA certified arborists Dave Muffly, Roy Leggitt and Sharon Kelly from Canopy. A volunteer database consultant has built and outline database that allows team participants to enter values for more than 40 carefully defined attributes per species onlinc. This database will be initially hosted on the Canopy website as the new "Tree Library" accessible to the pUblic. From the database a number of pre-selected recommended lists will be built, such as: drought- tolerant trees (a priority), trees appropriate under power line, etc. The scope of this project is unprecedented and when completed will provide an accessible database pertaining specifically to the conditions in Palo Alto and capturing the field knowledge oflocal professionals with decades of experience. Page 3. Block Side Species Replacement List: Public Works staff is working on a list of acceptable replacement species for each block of the City. The list is designed to assign trees for replanting when public trees are removed and replaced. When completed this task will be an invaluable tool for the procedures section of the Street Tree Management Plan. 4. Updated Tree-Removal Process: Public Works Operations Division revised the procedures for removing public trees as related to street tree maintenance. Per Council direction, Staff is working c10sel y with Canopy and various Cily'departments to create a public notification process for tree removals and/or replacements. This new process will cover designated trees, protected trees, and City-owned street trees which are impacted by activities from Capital Improvement Projects, Utility projects, and private development. A draft of this process will be presented to Council this summer. 5. Procedures The following three Procedures subcomponents are in progress: a Development Related Public Tree Removal Public Works Engineering is working with Planning and Public Works on a tree removal procedure for removing public trees relating to CIP, private development and Parks renovations. b Solar Panel Permitting Process: Dave Dockter has established a protocol for reviewing existing trees as part of the permitting process for solar panels to ensure that installations don't conflict with protected tress. C Greenhouse Gas Reduction: Dave Dockter, Debra van Duynhoven, the City's Sustainability Coordinator, and staff from the Utilities Department have met with representatives from pertinent federal agencies and are working to facilitate the City's adoption of the Urban Forest protocol for reducing greenhouse gasses that was recently approved by the Air Resource Board. The following two procedures subcomponents have been identified but are not yet underway. . a. Update of the Tree Technical Manual The document will be updated to include inter-departmental coordination policies and procedures that are being developed. b. Comprehensive Plan Update The City is in the process of updating its Comprehensive Plan and staff recognized the need to integrate the urban forest master plan in the Comprehensive plan. Additional Tasks CMR: 16 The City has also identified tasks that were not included in the original outline for the master plan. c. Global Climate Change This priority is already reflected in the B1ock-by-B1ock list of tree species recommendations and willtmdoubtedly affect other decisions and tasks related to the mastcr plans as Palo Alto begins the process of transitioning from a thirsty forest to a forest adapted to the climate and water accessibility conditions we may face in the next 30-50 years. d. Recycled Water Program They City's program to supply recycled water to commercial customers for irrigating large-scale landscape installations is being reviewed to resolve issues related to the salinity of the water. This topic may be integrated into the master plan. TRANSPORTATION The overall goal of green transportation-related programs is to reduce the greenhouse gas emissions generated by City employees commuting to and from work as well as those generated by travel during the work day using City vehicles. Staff initiatives since April 2009 include: • Employee commute survey: More than 500 city employees participated in the second web-based commute survey in April 2009, which showed that 73% of employees drove alone, 10% carpooled, 7% took public transit, 3% came by bike and 2% came in a vanpool. Average rotmd trip commute distance from home to workplace was 39 miles. On average, employees spent 31 minutes getting to work and 37 minutes returning home in the evening. Of particular interest was that more than 30% of solo drivers indicated that they were willing to consider carpooling or taking transit, while 26% were willing to try bicycling and 13% would consider participating in a vanpool. • Encoura!!in2 alternative commutes: In May, the Palo Alto Staff Goes Green campaign kicked off by asking employees to reduce their carbon footprint by trying an alternative to driving solo once a week or finding another employee to carpool to work with via a new City-specific link to the 511 Rideshare matching service. This generated a significant increase in employees registered for the alternative commute program, but not to a sustained increase in employees actually participating in the program each month. ' • Changes to incentives for the employee alternative commute program: Due to the City's budget challenges, a proposed increase to monthly incentives for employees participating in the alternative commute program was shelved in January. However, staff has identified opportunities to CMR: 200:10 Page 6 of 16 improve the net benefits received by employees who commute .by transit, vanpool or bike without increasing direct costs to the City. These changes would take advantage of recent changes to federal tax law related to qualified transportation fringe benefits, and also streamline the administration of the program for both City staff and employees. In brief: o Employees who regularly commute by bike will receive $20 per month 'tax free for qualified bicycle commute expenses (instead of receiving this amount as a taxable addition to salary as has been the ease since the City'S commute program began decades ago). o The existing tax free benefits for transit and vanpool users will change from a flat amount to a more equitable incentive equal to 25% of their monthly costs for transit passes or individual shares of the vanpool lease. o For the first time, the City will offer a pre-tax salary reduction option which will allow employees using transit or vanpool to pay for the difference between the tax free monthly incentive and their qualified commute expenses (up to $230 per month in 2010) with pre-tax dollars. In most cases, this will mean that their net monthly commute costs are reduced by an additional 26%. The City would also save an estimated 1.45% of payroll taxes on the amounts shifted from taxable income under this option. Outsourcing the administration of this program to one of the leading providers of commute benefits is needed to ensure compliance with IRS regulations and will result in administrative savings for the City. The current system of paper monthly forms will be replaced by use of the outside provider's secure website (available 2417 and easy to use). Employees will also receive transit passes or vanpool vouchers ordered via this website by mail in time for the new month a significant increase in convenience for employees. Additional transportation related activities that staff has initiated are: • City Fleet -The Equipment Management Division of the Public Works Department continues to aggressively but prudently pursue alternative fuel/clean air vehicle strategies in procurement of new City vehicles, particularly in market segments where these vehicles are available directly from the vehicle manufacturer equipment is available, such as passenger vehicles and light trucks. 'The City's emphasis continues to be primarily on CNG-fueled vehicles, given the reduced carbon footprint, lower fuel cost, and operational advantages provided by virtue of the City gas utility. Additionally, public access to CNG fueling on a contract basis will become available in the summer of 20 I 0 at the City Municipal Service Center when construction of the new fueling facility is completed. • EV parking spots Staff has received $12,000 in grant funding from the Bay Area Air Quality Management District (BAAQMD) for a pilot program to install 6 EV charging stations at City Hall. Although staff is waiting funding -:::-C~;:;:;:~--~---.... ---.... -.--... --------.---:::---=--:o-CMR: 200:10 Page 7 ofl6 from California Energy Commission (CEC) to be able to complete tile project. The City of Palo Alto partnered with Association of Bay Area Governments (ABAG) to apply for tile CEC fnnding in conjunction with the Bay Area EV Corridor Project. Complete project costs were estimated to be $39,220, of which approximately 1I3rd was applied for to CEC, 1I3rd will be covered by BAAQMD and the remainder to be in-kind services by the city and its staff. The project will not proceed unless CEC fUnding will be received. • Zipcar -Staff has been working with Stanford to have 2 parking spots dedicated for Zipcars. Stanford approached staff as there was a desire by the students to have the ability to use a Zipcar from the Caltrain Station. The city manages and sclls permits to lot X, which is behind the Sheraton. Recently the city has not sold out of permits for this lot, so it was determined that it would be a good use of resources to dedicate 2 parking spot for Zipcars. Although this arrangement is under the Stanford agreement with Zipcar, any Zipcar member can use tilese cars and Staff will be receiving usage data, which will help in determining and future car-share installations. • Bike Share -Stafr launched a city employee Bike Share program with the bikes that were used at the Senior Games last summer. The program includes approximately 40 bikes distributed thorough out all city facilities. The program launched in November with a bike rally with about 30 participants including tile Mayor and the City Manager. UTILITIES RENEWABLE ENERGY SUPPLY Electric supply from renewable resources reached 19% during 2009, up from 17% tile prior year, and is expected to reach 21 % by year 2012. Due to the high competition for renewable resource supply, the progress in meeting the City'S short term renewable electric supply goals has lagged behind Council goals. Staff has been striving to meet the long term renewable energy supply goal of 33% by 2015 a11ead of the rush by the rest of tile state trying to reach the same target in 2020. However, staff will return to the Utilities Advisory Commission in August 2010 and to the Council in the fall of2010 to re-examine appropriate renewables target percentages, target timing and allowable rate impact. UTILITIES CONSERVATION-RELATED PROGRAMS Renewable, efficiency, and conservation activities in tile City of Palo Alto Utilities (CP AU) Department as of thc end of Fiscal Year 2008-2009 werc reported to the City Council in an infoffilational memo on January 11, 2010. An update to program achievements during the first half of Fiscal Year 2009-2010 is below: Renewable Energy ProgramS PaloAltoGreen As of tile end of the calendar year in December 2009, PaloAltoGreen had 6, II 0 members or just over a 21.4% participation rate. Participation continues its slow trend upward. -.... ---~ .. ---~ .... ---~ ~---.-.-.. --..... -... ~-~ ..... ~~~ CMR: 200: 10 Page 8 ofl6 Solar Water Heating Program The rebate program to provide rebates for residential and commercial solar water heating systems has paid out 18 rebates through the end of December 2009 for a total of just under $22,000. Solar Pbotovoltaic (PV Partners) Program The PV Partners Rebate Program continues to increase numbers of customers with installed PV systems in Palo Alto. Program involvement in shown in the table below. As can be seen, the program continues to exceed annual goals and is 28% toward the 10 year state (SB 1) goal for installations. PreSBI Program Year Application Count kW Rebate Paid 1999 4 16 $ 93,008 2000 6 16 $ 83,383 2001 27 100 $ 391,714 2002 22 73 $ 168,506 2003 16 40 $ 113,377 2004 17 45 $ 173,982 2005 20 74 $ 223,356 PreSBI Subtotal 165 574 $ 1,796,397 SBI Program Year Application Count kW Rebate Paid 2007 77 213 $ 627,398 2008 85 1,347 $ 2,059,317 270 $ 663,725 2009 ,=40~====~~~=.;;;;;;=~~ SB I Subtotal 202 SRI Goal N.A. % of SBI Goal N.A. Grand TOTAL 367 pending 48 IG-;:;;.Jio/;!. __ I_----'I_" ____ 415. Residential and Commercial Efficiency Programs Water Conservation 1,831 6,500 28% 2,404 1,243 3,647 $ 3,350,439 $ 13,000,000 26% $ 5,146,836 $ 2,268,659.00 $ 7,415,495 Water conservation programs through the Santa Clara Valley Water District (SCVWD) continue to be productive. In the fiscal year through December 31, 2009, the following rebates and/or water audits were completed: ,-... -----------.... ----.--~-----, PROGRAM 711109 to 12131109 CMR: 200: 1 0 Page of 16 Single Family Completed Multi-Family completed Program Expenditures $ Water Residential : Small Commercial • Program Expenditures $ (grant funded) Warer Single Family Program Expenditures $ • Water Irrigation Audits Performed Program Expenditures $ Water : Commercial II HET Multi-Family HET installations Program Expenditures $ Water Total Commercial Washers Installed Program Expenditures $ Total Commercial Industrial Inst. Audits Program Expenditures $ Program Expenditures $ Water Number of Landscape Retrofits Expenditures $ feet nft",flh,,," \ \,',' , 198 6 13,980 816 o 2 200 110 8,250 13 8,450 I 16 8 5,400 10 1,750 428 184 6,900 14 14,000 3 112 The City cost sharing with SCVWD on the timely Landscape Rebate Program (aka, 'cash for grass') is offered for replacing irrigated turf grass (lawn) with low-water using plants CMR: 200:10 Page 10 of 16 and/or penneable area. Palo Alto residents can receive a rebate of $1.50 pcr sq. ft. with a maximum of $3000, with commercial area incentives as well. Staff presented the new state Water Efficiency Landscape Ordinance and a draft Palo Alto specific version to the UAC in January 2010 and to a variety of community groups in January and February. Based on input received, the City will remain under the statewide Ordinance until the statewide Green Building Code (Cal Green) goes into effect in 2011, at which time many of the efficiency measures will be included in the building code. The Planning Department is coordinating a city-wide teanl to work on this update and will present it to City Council in mid-201O. The Residential and Business New Construction Rebates The rebate progfanls for both Residential and Business New Construction Programs have been developed and are being promoted to customers. One rebate under eaeh program (for a total of two) has been paid. In the queue are three residential, three multifamily and one commercial rebate. Residential Energy Efficiency Programs A summary of residential energy efficiency programs is listed below: July 1, 2009 through February 12,2010 Measure Units Amount kWh Saved Therms Est. Est. Attic Insulation R-30 32 $4,650.00 12,075 4,297 Attic Insulation R-38 7 $\,400.00 2,686 965 Boiler 9 $3,000.00 1,800 Cent! A C SEER 14 $200.00 339 Cent! A C SEER 15 5 $900.00 2,085 Clothes Washer Tier 2 30 $1,015.00 4,410 510 Clothes Washer Tier 3 241 $18,075.00 40,488 4,579 Dishwasher 36 $1,700.00 1,584 144 Dishwasher -CBB Tier I 9 $270.00 297 Dishwasher -CEE Tier 2 106 $5,250.00 4,240 Flat Roof Insulation -RI9 3 $450.00 510 267 Gas Furnace 50 $10,800.00 4,200 LED Holiday Lights 731 $0.00 17,544 Pool Pump 5 $1,000.00 7,000 REAP -Attic Access Install 2 $200.00 REAP -Attic Insulation (units sq. ft.) 4,420 $0.00 1,238 663 REAP -Caulking MFR Windows etc. 24 $1,267.68 46 24 REAP -CFL Replacement 215 $2,150.00 15,050 REAP -Door Weather-Stripping 37 $2,279.20 111 148 REAP -Faucet Aerator 87 $513.30 261 REAP -Hardwire Interior Lights 108 $6,971.40 12,096 REAP -Hardwire Porch Light 9 $580.95 1,962 REAP -Low Flow Showerhead 41 $1,408.76 287 REAP -1'8 Delamp Conversion 'II $4,004.00 50,214 Refrigerator 168 $9,950.00 14,1l2 ..... _-----...... __ ... CMR:200:1O Page II of16 Refrigerator Recycling 95 Tankless Water Heater 13 Wall Insulation 15 Water Heater-Electric 2 Water Heater-Gas Tier 0 7 Water Heater-Gas Tier 2 9 Totals 6,608 Smart Energy $3,325.00 $2,850.00 $2,600.00 $80.00 $240.00 $1,500.00 $88,630.29 184,870 1,690 1,335 1,335 358 374,649 119 675 21,963 The Smart Energy Program continues to be well received by customers with 1,430 rebates having been paid fiscal year 2009-2010 through December 31, 2009. LED Holiday lights were distributed in exchange for old incandescent light bulb strings to 731 residents in December 2009. Clothes washers (271) and refrigerators (168) have the largest number of rebate applications in the program. Residential Refrigerator Recycling Program The recycling program implementer (JACO) is currently a partner of the EPA Responsible ApplianCe Disposal Program (RAD). The program picked up and recycled 95 running refrigerators and freezers during in the first half ofFY 2010. Low Income Program (REAP) The Residential Energy Assistance Program (REAP) provides efficiency upgrades and equipment replacement for low income residents. Residents receive new lighting, get weatherizing installations, and can have refrigerators and furnaees repaired and/or replaced. The third party contractor worked in 60 homes, 45 at California Park Apartments and 15 single family residents, between July 1,2009 and February 2010. A total of 423 lights have been upgraded, and 4,420 square feet of insulation was added to these homes. Adena Green@Home Energy Audit Aeterra's Green@Home energy audit program is in place. During the period July I, 2009 to December 31, 2009, 41 House Calls (including 55 Compact Fluorescent Light giveaways) were completed for Palo Alto residents. Since the program began in August, 2008, a total of 141 House Calls have been completed in Palo Alto. Acterra was closed for the Thanksgiving and Christmas holidays, so the volnnteers were not conducting House Calls during those times. Out of the total 41 Palo Alto House Calls made since the beginning of the fiscal year, 35 residents have been successfully contacted by phone afterwards for a program review. Acterra is continually improving processes and database. Here are some of the areas where they have made major changes: • Based on focus group results, Green@Home changed the data worksheets used by the volunteers to make them easier to use and more instructive. • The Checklist given to residents was modified to combine both habits and upgrades in the appropriate section (e.g. lighting, heating and cooling, kitchen, and so on). The items were also sorted by cost of implementing that energy saving change. A cover letter was added to the front of the checklist to help explain what ~=--~--cc--------------.. --..... --------c ~c:-~ CMR: 200:10 Page 12 of 16 was in the report. An additional sheet was added to better record post House Call recommendations for the resident. • The C02 reports sent to residents soon after the House Call now include a reminder of the commitments that the resident agreed to. • During this period, Green@Home set up an online registration process for residents to apply for a House Call through Aeterra's website. Street Lighting Pilot Project Phase One of the LEDlInduetion streetlight pilot project has been completed. For the pilot, seven Light Emitting Diode (LED) and three induction streetlight fixtures were installcd on the residential streets of Colorado and Amarillo Avenues in the first week of July 2009. Additionally, two LED and two induction fixtures equipped with communication hardware that allows remote monitoring and dimming were installed outside City Hall. Measurement results from the pilot project show that LED fixtures produce light output that are more uniform than that of existing High Pressure Sodium (HPS) and induction fixtures. LED fixtures also have much better cut-off on the curbside of the streetlight fixture, resulting in significantly reduced light trespass over residents' property. The pilot also demonstrates that the LED fixtures offer higher energy savings than induction fixtures based on similar light output. The combined energy and maintenance savings from LED luminaires results in favorable economics for LED. The simple payback for replacing a 70 watt (nominal) HPS with an LED luminaire with output illuminance comparable to that of the HPS luminaire is around 12 years. As LED technology continues to improve and luminaire cost decrease over time, one can expect the economics of LED streetlights to continue tc improve. By comparison, the simple payback for induction fixtures is around 17 years. Community feedback shows that LEDs are generally preferred over HPS and induction streetlights. The biggest drawback of the LED fixtures tested in the pilot is the color of the light output. Compared to the yellowish glow of the HPS streetlights, the light output from LEDs tested appears too bluish white. The LED luminaires tested in the demonstration have a correlated color temperature (CCT) of 6,000 Kelvin (a very bluish light); by comparison, the CCT was 5,000 Kelvin (bright white) and 2,100 Kelvin (similar to an incandescent light in color) for the induction and HPS streetlights respectively. The remote monitoring/dimming system performed as anticipated. However, based on the current cost of the technology, it is not economical tc deploy the remote monitoring/dimming system with LED fixtures. For the pilot scenario of retrofitting a 150 watt HPS with an LED fixture, deploying a remote monitoring system with a daily schedule of dimming the fixture by 25% for five hours, increases the simple payback by over three years. --.. ~~------CMR: 200:10 Page 13 of 16 The LEDllnduction Streetlight Pilot Project final report is expected to be jointly issued with the Department of Energy in April. Engineering is currently planning to test additional LED fixtures with lower color temperatures for light that appears less bluish. Based on the result of this Phase 2 pilot testing, the Utilities Engineering Division will develop a set of specifications for LED streetlight fixtures and will issue an RFP for LED fixtures funded by the DOE's Energy Efficiency and Conservation Block Grant. Electric Efficiency Financing for Businesses Program On August 3, 2009, Council approved the recommendation that a financing program for small business customers to install electric efficiency items would be implemented by a third party program consultant. The UAC recommended to Council that this program be funded from the Calaveras Reserve and Council approved this on December 7, 2009. A Request for Proposals was sent out in January 2010. Responses from three potential vendors were received in March 20 I 0 and arc currently being evaluated. Third Party Efficiency Programs for Businesses During the fiscal year, third party programs to help business customers were expanded. The Right Lights+ program for smaller customers was expanded beyond lighting to include a wide variety of efficiency measures for commercial kitchens. COlmcil approved additional funds for this contract on December 14, 2010. The first rebate was just issued under the contract with National Resource Management. A new program for large customers to implement natural gas and electric equipment (Commercial and Industrial Energy Efficiency Program) was implemented with Enovity. Fifteen customers have signcd preliminary agrcements and have completed investigations. Key lmd Major Accounts The Utility Marketing Services staff is working to develop a marketing and communication erunpaign for smaller businesses to help them become more involved in efficiency efforts. The first postcard to small businesses was sent in early December 2009. A mailing to restaurants was sent in November 2009 and again in January 2010. Key Account customers responded very positively to the information they received from representatives during the day-long outage on February 17,2010. An email survey was sent to Key Accounts in the week after the outage, and nearly all customers said that they were well informed by their representatives. Utility Marketing Services is changing processes to ensure that those few customers who did not receive sufficient.information will do so in any future events. Progrllm Delivery and Reporting Third Party Measurement and Verification State law requires an independent evaluation of efficiency and conservation programs each year. The second annual report was completed in mid-March 2010 and was delivered to the Northern California Power Agency for informational purposes and for inclusion in a statewide publicly owned utility report to the California Energy CMR: 200:10 Page 14 16 Commission (CEC). An informational report detailing the results of the study were sent to the Utilities Advisory Commission (UAC) in April 2010. Utility Efficiency and Conservation Reporting Updated information report on annual energy efficiency results is completed and was provided to the UAC and City Conncil in January 2010. Results were delivered to the CEC, as required by law, in March 20 10. A copy of this report, including a summary of Palo Alto's evaluation report for FY 2008-2009 (delivered to the UAC in April 2010) and efficiency results for the same time period (delivered to the UAC in January 2010) are all available to download at http://www.cityofpaloalto.orgldepts/utl/residential/default.asp ZERO WASTE Staff will present a separate report on progress on Climate Protection on April 19,20 I O. RESOURCE IMPACT Most of the programs discussed in this report are funded in the adopted 2009-10 budget. In cases where staff work on the above and related programs will require additional funding, staff will request the needed funds via the upcoming budget approval process. POLICY IMPLICATIONS All of the above programs are in line with the City'S Sustainability Policy, Council's adoption of the Climate Protection Plan, and other existing City policies. ENVIRONMENTAL REVIEW This report is informational in nature. As such, no review of the report is required under the California Environmental Quality Act (CEQA). However, certain activities and programmatic elements discussed in the report may undergo or have already undergone environmental review as part of a separate approval process. PREPARED BY: DAREN ANDERSON KATHY DURHAM DAVE DOCKTER LESTER HODGINS JOYCE KINNEAR TOM KABAT KEITH LAHAIE KRISTIN P ARINEH JULIE WEISS DEBRA VAN DUYNHOVEN CITY MANAGER APPROVAL: ---;T"~~~~ CMR: Page 15 of16 City Manager ATTACHMENTS: Attachment A: Community Environmental A('iion Partnership,2009 Annual Report I CMR: 200:10 Page 16ofl6 Attachment )l 2009 ANNUAL REPORT (March 5, 2009 thru February 28th , 2010) Neighborhoods Businesses Faith Community City Government Stanford Schools Nonproflts Medical CEAP The City of Palo Alto and community groups came together in 2008 to create the Community Environmental Action Partnership (CEAP). dedicated to improving the collaboration on important environmental issues. In particular. CEAP was created to help the community reach the goals in the 2007 Palo Alto Climate Protection Plan. In our inaugural meeting on March 5th, 2008. community members collaboratively defined CEAP's mission and goals. CEAP Mission: To bring the various segments of our community together to share knowledge, build mutual understanding, leverage resources, and both create and implement innovative environmental solutions. Goals: • Identify and implement top-priority environmental initiatives with measurable objectives. • Educate and engage each segment of the community in environmental initiatives that fit their needs. • Create a vehicle for communication, education and awareness among the City and all segments of the community. • Leverage resources and actions among segments by aligning and coordinating efforts. • Connect with expertise. input and initiatives from the community and beyond to inform, improve and inspire innovative ideas and programs. • Track and report progress toward objectives 10 the community. 2009 CEAP Annual Report 2 page \ ' , , Organization The community is divided into eight "Segments (see below), and a "liaison" is appointed to each. The Liaisons, which serve as an Executive Committee, meet monthly, but the goal is to have much of the work done by the Segments. The Segments and Liaisons areas follows: Segment Neighborhoods Faith Community Schools Business Medical Community Government Stanford Non-Profit Organizations 2009 CEAP Annual Report 3 Liaison Lisa Altieri Ben Hammett Walt Hays Mark Sabin Krisanne Hanson Wendy Hediger Lucy Wicks Jose Gordon page SUMMARY OF EXCOM ACTIONS: Date Action April Carroll Harrington produced a display of CEAP activities, which was posted for several weeks in the hall leading to Council Chambers. June Nico Procos, Senior resource manager, PA utilities, and Josh Wallace, Key Account Rep, PA Utilities, presented a program on the use of water in California and the importance of conserving it. Highlights: • The Hetch-Hetchy system serves 2.5 million people, and that number is increaSing. The system is old and vulnerable to a severe earthquake, which could halt water supply for 30 days or more. Repair will cost $4.4 billion, but earthquake damage to the current system could cost $17-30 billion. The repairs will increase the cost of water 2-3 times. • The distribution and treatment of water in CA constitutes 19% of our total electricity use and 30% of gas, as well as 88 billion gallons of diesel/year. • The effects of climate change will include 25% less snowpack, with resulting floods in winter and drought in summer, salt intrusion in the Delta, and negative impacts on fish through warming water. • For all the above reasons, it is important to save water, and the presentation gave examples of whaUo do, including eating less meat; e.g., it takes 1,232 gallons of water to produce one steak. July October Mayor Peter Drekmeier presented a program on the Tuolumne River as the source of the City's water, noting that Palo Alto, with its big g<lrdens <lnd I<lwns, used more w<lter per c<lpita than every other city in the Hetch-Hetchy system except a few with even bigger gardens, like Los Altos Hills. Participated in an internation<ll campaign todramatize the number 350, as representing the maximum parts per million of C02 the atmosphere can hold without severe consequences, putting on three events: • Recruiting 10 local congregations to ring their bells 35 times at 11 A.M. on 10/24 . • Bringing a fire engine to the downtown farmer's market, inviting children to ring its bell, and passing out flyers. November Decided to join with Menlo Park and other cities in promoting the Drive Less Challenge, a web-based friendly competition that rewards 2009 CEAP Annual Report page 4 /'"f ' January March participants for reducing their car miles, as an Earth-Day related activity. Held a session on Strategic Planning,with the following results: • Accepted Debra van Duynhoven as Vice-Chair, replacing Bryan Long . • Decided to invite speakers to the CEAP Excom meetings periodically, but limit large public meetings on one/year. Heard a presentation by Valerie Gardner, recognized as a "Climate . Hero" by Acterra, for her work on the GreenSTART Program in Atherton, which engaged large numbers of parents and students in reducing emissions. Held a public meeting to hear former Mayor Peter Drekmeier speak on "Adapting to Climate Change." Approximately 80 people attended. Accomplishments Detailed reports from each Segment are attached. Here are some highlights. Schools • Solar: We're finally getting PV on the SRC (a subject that's been on the Sustainable Schools agenda for two years)l Translation: Photovoltaics on the Science Resource Center. There will also be a solar interactive display to go along with it. The District is also exploring installing PV on all schools, through a Power- Purchase Agreement, under which investors would pay for installation and sell the energy to the District as 5% less than current City rates. • Conferences: The Sustainable Schools Committee held conferences for green teams to share best practices and learn what each school has accomplished. • District-wide recycling/composting: Thanks to Palo Alto's Zero Waste department, Greenwaste, and PAUSD, we now have a district-wide recycling program for the schOOls. After a successful pilot program at three schools, recycling and composting are now being implemented district-wide. Neighborhoods • Launched green teams in Barron Park and College Terrace. They hope to continue launching the program in two or more neighborhoods each year. Projects: Low Carbon Diet Class, Weatherization Projects, Garden Sharing, etc. The segment also organized two 350.org events on Oct 24 and Dec 11. Business Wave One has been working with businesses in a 43-block area of downtown Palo Alto to help them get certified under Santa Clara County's Green Business Certification Program. They use Right Lights for energy audits and Green Waste to educate employees on composting and recycling. The Next Step (Wave Two) will help businesses shift to Energy Star appliances, 2009 CEAP Annual Report page 5 HVAC, and lighting. They also hope to implement real-time metering and water conservation. Government Palo Alto Staff Goes Green, a 6-month awareness campaign, was their major effort. 152 employees participated. • First month: Transportation • Second month: Zero Waste • Third month: Energy reduction • Fourth month: Water efficiency One example, PASGG conducted a reusable mug campaign using peer pressure, signage, etc. They also sent out a monthly green tip via email. The group conducted surveys to see if the staff made habit changes. Faith Groups The Faith Segment is a sub-group of the California Interfaith Power and Light South BayWorking Group of congregations that have signed a covenant to assume a stewardship role, a spiritual commitment and responsibility, to educate and engage the congregations in environmental initiatives. Toward this effort, the Palo Alto member congregations of the South Bay Working Group have each engaged to a varying degree in the following actions prescribed by the Covenant: • Action 1 Conduct an enl?rgy audit • Action 2 Engage in an ongoing process of education • Action 3 Analyze, reduce, and offset our greenhouse gas emissions, • Action 4 Safeguard public health, • Action 5 Protect the earth's ecosystems, • Action 6 Promotion of energy conservation, energy efficiency, renewable energy, and • Action 7 Support public policies that contribute to our goals. There were 10 teams or task forces: 1) Clergy Education -quarterly luncheon, with a speaker, 2) Getting Started -providing materials, guides and referrals to help congregations organize for action, 3) Renewable energy and energy efficiency, 4) Water,"5) Waste reduction and reCYCling, 6) Political actionllobbying, 7) Sustainable food, 8) Transportation, 9) Take action on Earth Day, and 10) Outreach and Philosophy. Each month, meetings were held with a different congregation as host and included a guest speaker on one of the above actions. In addition, various churches and synagogues hosted weekend conferences and interfaith retreats, and held many speaker events on their own, such as climate change science and the methodologies of alternative energy and energy conservation. Some examples of the many and varied individual ~ongregational actions listed in the attached Faith Segment report included the following: Joint programs with Acterra in Eco-Task Forces, Cool Campaigns, and the formation of Green Teams, plus bther campaigns and pledges to lower carbon footprints; sent lobby groups to Sacramento for the clean water bill, wrote legislators supporting the energy bill, took part in 350.org C02 reduction worldwide project, and converted to 2009 CEAP Annual Report page6 energy efficient lighting and appliances, the use of recyclable materials in congregational buildings and offices, and other actions listed in the attached Faith Segment report. Medical Liaison Kris Hanson is working with a subcommittee of Walt Hays, Dr. Cindy Russell (chair of the Santa Clara County Medical Association's Environment committee) and Maria Biggs, a volunteer from Acterra's "Be The Change" Program, to plan a • conference for doctors and their office managers on how to go green. Stanford Stanford has been making a substantial effort to green up many aspects of the campus and campus life. You can visit the Sustainable Stanford website (http://sustainablestanford.stanford.edu) to see the incredible diversity of efforts in energy, water, transportation, research, waste, purchasing, etc. In the last survey of colleges and universities, the College Sustainability Report Card (www.greenreportcard.org) awarded Stanford an A-for its significant achievements and the University was listed as one of the top 10 sustainable schools. One highlight: Stanford Dining now sources 40 percent offood items locally. A Sustainable Working Group composed of 90 students, faculty, and staff are working in teams on focused topic areas of sustain ability. The teams meet monthly. One significant accomplishment in 2009 was the publication of Stanford University's long- term Energy and Climate Plan. (http://sustainablestanford.stanford.edu/climate action) 2009 CEAP Annual Report page 7 Introduction CEAP Annual Report 2009 Neighborhoods Segment April 2010 The Neighborhood segment of the Community Environmental Action Partnership (CEAP) was formed to educate and engage thc members of our segment in environmental initiatives. Towards this effort, the Neighborhoods segment has worked on the following actions over the last year, since CEAP's inception in March 2008: 1) Green Teams in Palo Alto Neighborhoods! In order to address the environmental challcnges we face, like Global Warming, it will require action and lifestyle changes for all of us. These types of changes are fostered by communication and support among neighbors. So the primary project of the Neighborhoods Segment is to launch Green Teams in Palo Alto Neighborhoods to begin to create dialog, awareness and support in the community for positive environmental change. 2) Palo Alto Neighborhood Action Events: We have also worked on creating events for the Whole City that focus on raising awareness and taking action on Global Warming. 1) Green Teams! We have launched two Green Teams in the last year, BatTon Park and College Ten'ace. We had our first Green Team launch in BatTon Park in early 2009. The Barron Park Green Team is going great and accomplished a number of projects in 2009: • Developing the group goals and mission • Taking the Low Carbon Diet class and lowering our carbon footprint • An infrared imaging demonstration • A weatherization party where participants learned how to lower their carbon footprint and weatherize their homes through caulking, weather stripping and other simple low cost methods. • A talk on Global Warming policy, specifically Cap and Trade Policy and the Waxman Markey Bill • Start of a Garden Survey proj ect to find interest and connect neighbors for garden sharing, educational activities, etc. In October 2009 we launched our second Green Team in College Terrace and it is also going great! We have a group of very enthusiastic members with many ideas on great projects for the team. They are currently going through the Low Carbon Diet together and have many great projects planned for 2010. 2) Palo Alto Neighborhood Action Events: The BatTon Park Green Team and the CEAP Neighborhoods Group co-sponsored two citywide events with 350.org, where we joined others from around the world and gathered to send a message to our leaders that it is time to pass strong legislation addressing Global Warming. The two events were: • October 24th, at the Gunn High football field where we spelled out the number 350 • December 11th, in front of City Hall where we marchet:\ to deliver a letter to our Congresswoman, Anna Eshoo to urge strong action on Global Warming policy, For both of these events we posted photos of our group on the 350.org website where they were included with photos from around the world and delivered to decision makers at the Copenhagen Conference. Future Plans Weare planning to launch a new Green Team in Midtown in Spring 2010, We are also working on setting up a website to help the Green Teams organize and provide information on reducing carbon footprint to the neighborhoods. For Citywide events, we are planning to keep in contaet with 350,org and join in to future 350 events, The Barron Park and College Terrace Green Teams also have great plans for the upcoming year: The Barron Park Green Team has a number of projects planned for 2010: • A Green Home Tour • Speaker Events • Weatherization Parties • Low Carbon Diet Classes • A Neighborhood Tree Planting • Complete our Garden Survey Project The College Terrace Green Team projects for 2010 include: • Project to provide a cooperative purchase pro gram for solar to the College Terrace neighborhood • Weatherization parties and workshops • Low Carbon Diet classes • Booths at Neighborhood Events • Eco-habit of the Month • Working to get more organic food at 11 &F Grocery store Submitted by Lisa Altieri, CEAP Neighborhoods Segment Liaison CEAP Annual Report 2009 Faith Segment Summary Report Introduction The Faiths segment of the Palo Alto Community Environmental Action Partnership (PA-CEAP) is the Palo Alto portion of the California Interfaith Power and Light South Bay Working Group of the nationwide Interfaith Power and Light (Regeneration Project). The primary work of the Working Group is accomplished by the Action Teams -small groups of people who self-select based on the topics they desire to pursue: I) Clergy Education quarterly luncheon with speaker and time for sharing questions, ideas, encouragement. (The first luneh featured the founder of The Regeneration Project, Rev. Sally Bingham.) 2) Getting Started (providing materials, guides and referrals to help congregations organize for action). 3) Renewable Energy and Energy Efficiency 4) Water 5) Waste Reduction and Recycling6) Political Action/Lobbying. 7) Sustainable Food 8) Transportation 9) Take Action on Earth Day. 10) Outreach and Philosophy Each month, meetings were held with a different congregation as host and included a guest speaker who focused upon on one of the above areas. Discussions within the Working Group by way of a private membership Iistserve, CIPL PenSBay@yahoogroups.com, have been governed by guidelines, such As: The purpose of this group is to share ideas on how to deal with human-produced climate change. The primary work of the Working Group is to educate and engage the members of our Palo Alto Faiths Segment in environmental initiatives. Toward this effort, the member congregations of the Faiths segment, implementing their Covenant with their nationwide organization: Interfaith Power and Light (Regeneration Project, have conducted activities in varying selected combinations from the seven areas of aetion listed in the Covenant. Exan1ples now follow for each of these areas of action: Action 1 Conduct an energy audit of our buildings, make energy efficiency improvements to our congregation's buildings and utilize renewable energy. The Unitarian Universalist Church of Palo Alto (UUCPA) conducted an energy audit, interviewed solar companies to explore the feasibility of installing photovoltaic panels, installed several energy saving furnaees and a dishwasher, replaced ineandescent bulbs with CFL's, installed recycle bins, used recycled paper, recycled ink cartridges as a lucrative fundraiser, and purchased Palo Alto Green electric power. The First United Methodist Church performed an energy audit, replaced their old boilerlheaters with more efficient units, purchased Palo Alto Green electricity, recycled ink cartridges, installed recycling and compost bins, declared itself a Styrofoam Free Zone, purchased recyclable or compostable food service items, purchased Fair Trade coffee, replaced lights throughout the church and education buildings with CFL and lower energy bulbs, reduced the number of garbage collections each week, and purchased a copy maehine that prints on both sides of paper. Action 2 Engage in an ongoing process of education with our congregants concerning environmental steward,hip, energy production and usage in relation to global warming. The Palo Alto Society of Friends, Earthlight, Acterra, and the CIPL SBWG sponsored an interfaith weekend retreat on Care for Creation, Walking Lightly on the Earth. The First Congregational Church of Palo Alto formed The ECO Task Force which focuses on raising awareness among the eongregation and wider community ofth ever important stewardship and care of the environment, and led a campaign with Acterra to unify the church community in a fight against global warming. The Congregational Cool Campaign was developed as a six-month campaign to educate the congregation about ways to reduce energy use and took monthly surveys about their activities. The Unitarian Universalist Church of Palo Alto sponsored a talk on accelerating the transition to Smart Energy. The church maintains an extensive Green Sanctuary library collection, with a strong focus on climate change. Congregation Kol Emeth sponsored an evening presentation on Solar Power Financing and Ethical Banking. Although located in Los Gatos, Shir Hadash hosted the Feb. 23, 2009 regular monthly meeting of the CIPL SBWG and many folks from Palo Alto congregations attended. The Topics included Earth Day planning (April 22) and Energy Efficiency. The First United Methodist Church publishes a Green column in their monthly newsletter reminding members of the congregation of ways to be self-aware of their impact on the earth and on ways to conserve and to reduce pollution. The Women's Group at Congregation Etz Chayim of Palo Alto hosted an event "Health Begins atHome!" which addressed Green Living and the advantages of going green on building, remodeling and toxins, The Oshman Family JCC in Palo Alto (OFJCC) hosted an event: "Holiday Gifts Go Green!" which presented alternatives to gift buying, Action 3 Analyze, reduce. and offset our greenhouse gas emissions with the goal of becoming a . nonpolluting congregation. The First Presbyterian Church, in partnership with Acterm, wrapped up a Cool Campaign. It was very successful with most households in the congregation signing a pledge to lower their carbon footprint over a period of 6 months. Etz Chayim hosted a CIPL South Bay Working Group meeting on Transportation. The First Presbyterian Church of Palo Alto, Cool Planet Working Group, participated in a Christmas Fair with gifts and suggestions for a "Sustainable" Christmas. At the Unitarian Universalist Church of Palo Alto the congregation posts leaves on tree, each leaf pledging an action that specifies with it a numerical carbon footprint reduction action. Their total carbon dioxide reduced since October 24th is 73,000 pounds. Action 4 Saftguard public health. The Unitarian Universalist Church of Palo Alto and CIPL-SBWG Water Team hosted a presentation on Water Justice and the Human Right to Water Bill of Assemblyman Ira Ruskin. Members of the church accompanied the UU Legislative Ministry Climate Change/Water Justice Team's trip to the CA Legislature to lobby in committee sessions and in legislators offices in favor of Ruskin Bill. Action 5 Protect the earth's ecosystems. The Unitarian Universalist Church of Palo Alto Green Sanctuary Committee and CIPL· SBWG Team #4-Water hosted a presentation on saving the Tuolumne River ecosystem by Peter Drekmeier, Mayor of Palo Alto. The national United Methodist Church has many Resolutions regarding the protection of earth's resources, and is seeking tc implement these Resolutions through education, and through outreach programs. Action 6 Promotion of energy conservation, energy efficiency, renewable energy and ensure sufficient, sustainable energy for all. The First Presbyterian Church of Palo Alto provided letter writing tables to encourage people to write to their legislators to support the energy bill. The First Congregational Church held an Interfaith Clergy Climate Luncheon for clergy/religious leaders of all faiths on Climate Change Science and the Role of Clergy and resources for clergy for: addressing the spiritual and practical sides of climate change, scope and urgency of the climate crisis, how to address the spiritual and humanitarian challenges of a planet in peril, and presented doable actions that clergy can integrate into their work, including tools for lay-led green teams. The Unitarian Universalist Church of Palo Alto Green Sanctuary Committee provided a table at a retirement home's Community Day, for a demonstration of UUCP A Green Sanctuary actions. The First United Methodist Church congregation has wholeheartedly supported the new eomposting program available through the city. Action 7 Support public policies that contribute to our goals. Seven Palo Alto congregations supported the worldwide 350.org movement On October 24th by ringing their bells 35 times: St. Thomas Aquinas (Catholic), St, Albert the Great (Catholic), All Saints (Episcopal), Unity Palo Alto, Unitarian Universalist, Grace Lutheran, and First Lutheran. The Unitarian Universalist Church of Palo Alto posted a banner advoeating worldwide atroospheric C02 reduction to 350 ppm and announcing that UUCPA would Ring its Bell 35 Times. The church advocated in behalf of mitigating the Impact of global warming on native peoples and raised public and congressional awareness of the serious erosional effects of climate change on Alaskan barrier island villages. Petitions from the church, including letters . from the Sunday school children, advocated to Congress for legislation including adaptation funds to help the village move to the mainland. The trip to the village by a representative from the Palo Alto chureh was written up, including photos from several years of UUCPA Sunday school watertub simulations of the plight of the villagers. The write-up is posted on an Anchorage website: http://www.alaskaconservationsolutiims.comJacs/images!stories/docs/SavingShishmaref.pdf· Introduction CEAP Annual Report 2009 School Segment April 2010 The School Segment of the Community Environmental Action Partnership (CEAP, pronounced "keep"), formed in 2008, was formed to educate and engage the members of our segment in environmental initiatives. Toward this end, working through the Sustainable Schools Committee, formed in 2003, we have taken the following actions ~~~~ . Action 1 With help from a consultant hired the City Public Works, formed "sustainable" green teams in all schools in the PAUSD, plus several private schools. Action 2 Held two conferences for green teams, with inspirational talks, sharing of activities, and advice on rolling out food compo sting (see Action 3). Action 3 Working with District staff, Wendy Hediger of Public Works, Zea Luce of Green waste, and green team leaders from select schools, planned and organized the roll out of food compo sting to all schools. Pilot schools achieved substantial savings in waste disposal. Also met with District staff in charge of food ordering to encourage shift to healthier foods where economically feasible and to eliminate non-recyclable containers. Action 4 Worked with the PAUSD in contracting to install a photovoltaic (PV) system on the Science Resource Center, together with an interactive solar display to demonstrate to students how PV works. Also working with District on plans for PV at all schools. Action 5 Worked with District staff, Canopy and select principals to plant more trees on two campuses, and to draft a proposed Tree Policy calling for similar action at all schools. Action 6 Worked with Acterra and District staff to develop a demonstration garden of drought- resistant plants, to explore the possibility of saving water by substituting such gardens for lawns (in non playfield areas). Action 7 Worked with the District and City Utilities to do water and energy audits and encourage reduced usage. Action 8 Persuaded District staff to begin monitoring use of electricity, gas and water at all schools and to use that information to encourage reduced usage. Action 9 Began work with District and Paly staff to explore rainwater recapture. Future Plans I: Continue semi-annual green team conferences to share activities. 2. Complete installation ofInteractive Solar Display. 3. Finalize plans and contracting for PV at all schools. 3. Persuade District Board to adopt and implement Tree Policy. 4. Complete demonstration garden and approach principals on switching from lawns. 5. Pursue all efforts to save funds by reducing resource use. Introduction CEAP Annual Report 2009 Business Segment April 2010 The Wave One Palo Alto segment of the Community Environmental Action Partnership (CEAP) was formed to educate and engage the members of our segment in environmental initiatives. Toward this effort, the Wave Oile Palo Alto segment has worked on the following actions over the last year, since CEAP's inception in March 2008: • Action 1 Work with County of Santa Clara Certified Green Program to Green CertiJy small business in Palo Alto. • Action 2 Work with Right Lights to set up lighting efficiency audits for small and medium sized business and use Right Lights to perform lighting retrofits to reduce . energy consumption. • Action 3 Work with City of Palo Alto and GreenWaste to educate business on how to reduce, reuse and recycle to minimize waste sent to the landfill. • Action 4 Create a database of structures and businesses within the 43 contiguous blocks of Downtown Palo Alto Action 1 Enrolled a total of 75 small Palo Alto Businesses in County Certified Green Business program. This resulted in 18 businesses becoming fully Certified and 57 businesses in the. process of completing certification. Action 2 Worked with Right Lights to enroll 75 businesses in lighting efficiency audits. Eight businesses wcre found not to need retrofits, 14 completed their retrofits and the remaining 53 are awaiting work or final approval by the business for retrofit work. Action 3 Worked with The City of Palo Alto and GreenWaste to schedule meetings with 48 businesses to educate them on how to save money by reducing their waste-stream through reduction, reuse and recycling. Action 4 Created a database of the buildings, businesses and exterior lighting within the 43 contiguous blocks of downtown Palo Alto. Future Plans Wave One Palo Alto is a community based program that focuses on a consolidated group of small businesses with the purpose of creating (I) market transformation for the effective delivery of energy efficiency services to small businesses and (II) a Green Job Training Center for Labor and Community College students. I Small Business Conservation Research Center In late 2008, the City joined with Wave One to form Wave One Palo Alto to implement the goals and strategies for the retrofit of commercial sector buildings as set forth in the September 2008 CPUC Strategic Plan for Energy Efficiency. To achieve these goals, Wave One Center consolidates businesses within the 43 contiguous blocks of Downtown Palo Alto (Downtown), consisting of 380 buildings totaling 3.5M+ sf, 1,050 small businesses, 10,500 employees, armual taxable sales of $275,000,000 and more than 150,000 weekly visitors. Wave One Palo Alto goals are consistent with and accelerate the CPUC Plan goals of 40% energy and water reduction by 2012, Zero Waste by 2015 and Net Zero Energy by 2020. By achieving these goalS in advance of CPUC Plan dates, Wave One Center becomes a pioneer, demonstrating that CPUC Plan goals are achievable by small businesses. Wave One Palo Alto will not only lead the way, it will publish its methodologies and results in order to teach other small businesses. Wave One Palo Alto is a scalable program that can be brought to any community or urban center. Wave One Palo Alto accomplishes these outcomes by targeting 75% market penetration equivalent to no fewer than 500 businesses oecupying 2.5M+ square feet in Downtown. Wave One Palo Alto Constitutes the largest sampling of small businesses ever assembled anywhere in the United States. II Creating Quality Green Jobs as a Research and Training Center Wave One Palo Alto works with Working Partoerships USA and San Benito County Trade Council and has eommitted to hire only members of the construction trade council. Wave One Palo Alto team members inclUde Local Union 332lnternational Brotherhood of Electrical Workers, United Association of Plumbers and Stcamfitters & Refrigeration Local 339. Wave One Palo Alto has an on-the-job paid intern program that will be supervised as an academic program by the Kirsch Center for Environmental Studies at De Anza Community College. Wave One Palo Alto will work with NOVA, a Santa Clara County local workforce investment agency to assist with hiring new employees. The purpose of Wave One Palo Alto is to create a market transformation within the most crucial and most difficult to reach segment of the commercial sector -small businesses. Wave One Palo Alto invests in and involves leaders from labor, education, community colleges, media and communications, finance, government and construction. Because Wave One Palo Alto is a training and research center determined to achieve a market transformation for small businesses, Wave One Palo Alto has and will continue to invest extensively in the one-on-onc contact with small businesses necessary to engage and educate its employees. CEAP Medical Community Annual Report Membership includes: • Stanford University Medical Center • Palo Alto Medical Foundation • And new introductions from the V A Medical Center Activities include primary focus on: Energy and Water Conservation • SUMC received their baseline energy audit in partnership with the CPAU programs. • Based on report, prioritizing projects for investment and conservation are underway. • SUMC has joined the EPA Energy Star® program and completed the initial application of baseline energy consumption data for benchmarking. • SUMC received their baseline water use audit in partnership with SCVWD. • Based on report, prioritizing projects for investment and conservation are underway. Waste Reduction • All three organizations have benefited from the resources, partnership and knowlcdge derived from Grecnwaste' s customer support team. • Greenwaste has been a key participant in several waste reduction projects underway at all three organizations. • Biodegradable serviceware has been integrated into operations at PAMF and SUMC. In addition, compo sting programs will be applied in the Cafeteria settings at SUMC. • Teams attended series of public comment opportunities related to Zero Waste ordinance. Building Foundations • Teams continue to focus on designing new buildings with LEED® and green building ordinances at the forefront of the plalming process. • SUMC has applied for participation in the Pilot Project of Green Guide for Healthcare's, Greening Operations, v.2.0 rollout and are waiting confirmation. Education and Outreach • Teams continued to participate in regional education through Sustainable Silicon Valley and the Northern California Chapter of H2E. • SUMC has joined Practice Greenhealth, an organization dedicated to providing hospitals with information, education and benchmarking resources for sustainable operations improvements. • SUMC has received their first award from Practice Greenhealth in the annual application cycle with a "Partners for Change" award designation. A team will attend the annual CleanMed Conference in May to receive the award. • CEAP is co-sponsoring the planning and execution of an outreach conference to engage and educate oWllers and managers of the small to medium-sized medical practice setting, on improving sustainability in their operations. The conference is also co-sponsored by Santa Clara County Medical Association (SCCMA) and SUMC. It will be held on June 1,2010, at Stanford University. Introduction CEAP 2009 Annual Report Government Segment Report The Government segment of the Community Environmental Action Partnership (CEAP) was formed to educate and engage City of Palo Alto employees in environmental initiatives. Toward this effort, the Government segment formed a Green Team, a forum for employees interested in environmental protection to share ideas for improving the organization's environmental performance and to create and implement projects that make these improvements a reality. The Green Team worked on the following projects in 2009: • Palo Alto Staff Goes Green • Reusable Mug Campaign • Monthly Green Tips Palo Alto Staff Goes Green (PASGG) A green awareness campaign, PASGG was a 6-month eampaign targeting all City staff. It increased staff awareness about their environmental impact and encouraged action to reduce it. The campaign focused on 4 themes: alternative transportation, Zero Waste, energy and water. Participation was open to all City employees and 152 participated in the campaign. Their combined efforts resulted in: • 15 employees adjusting their irrigation schedules at home to reduce water • 150 gallons of water being saved every day from employees taking shorter showers • 47 employees attending local farmers markets • 9 tons of carbon dioxide (C02) being reduced through alternative commutes • 30 employees making significant energy use reductions including turning off lights and computers daily, unplugging major equipment and reducing plug loads • 191 employees gained a greater understanding of what waste can be composted, recycled and reused at work • 13,160 kwh were saved by employees changing out incandescent light bulbs with compact f1uorescents (CFL's). • 25 employees specifically stating that they plan to sustain their new behaviors after the campaign Reusable Mug The Reusable Mug campaign is currently running and is intended to increase reusable mug use by employees through the use of prompts. Various prompts such as signs at exits and break areas, informational/reminder emails, signs in elevators and a loop notice have been used to remind employees to bring their reusable mugs if they are going for coffeeltea. Monthly Green Tips The monthly green tips project is ongoing awareness-raising and behavior-changing effort. City employees are e-mailed tips each month to encourage them to green their work areas and/or their personailives. Future Plans Plans for the coming year, include the following: • Roll O\lt the Zero Waste New Services to all City facilities • Landscaping irrigation upgrades work party • Drive-less challenge Prepared by Wendy Hediger, February 2010. Introduction CEAP Annual Report 2009 Stanford University Segment Stanford University has been a member segment of the Palo Alto Community Environmental Action Partnership (CEAP) since CEAP's inception in March 2008. In pursuing its academic mission, Stanford University is committed to being a leader in the research, teaching and institutional practice of environmental sustainability. The . university is therefore committed to following core sustainability principles in all facets of planning and operations so that Stanford CaB lessen its enviromnental impact, ensure a healthy community and contribute to global solutions. Structure of Sustainability and Energy Management (SEM) Sustainahility is a core value at Stanford -demonstrated in academics, operations, communications, and events. Central to the academic endeavor is the Initiative on the Environment and Sustainability, supporting interdisciplinary research and tcaching in all seven of Stanford's schools, as well as in centers, institutes and programs across campus. Sustainability and Energy Management (SEM) I, is the operational and programmatic undertaking in this field. Founded in 2007, SEM brings together campus utilities, building operations, parking & transportation, business services, and Office of Sustainability/sustainability programs under one administrative roof in the greater operational department of Land Building and Real Estate (LBRE). SEM leads sustainability initiatives in campus infrastructure and programs in the areas of energy & climate, water, transportation, waste, green buildings programs, sustainable information technology, and many more. This organization of over 90 professionals are programmatically convened and connected through the Office of Sustainability, under the moniker Sustainable Stanford -a campus-wide initiative to steer, connect, support and strcamline sustalnability efforts to fulfill President Hennessy's belief that "Sustainability must become a core value in everything we do." Sustainable Stanford is also the central coordination and strategic hub for the interdisciplinary Sustainability Working Group convened in 2006 and the various Sustainability Working Teams (SWTs) that formed in 2008.2 SWTs bring together campus operations leaders, faculty with related subject matter expertise, and students to advance progress in each of the major elements of Sustainable Stanford, including: Energy & Atmosphere, Green Buildings, Transportation, Water, Waste Minimization, Green Procurement and Food Supply, Communications & Campus Community Relations, Evaluation & Reporting, and Green Funds for students. Complementary to operational efficiency measures being undertaken by campus facilities managers, distinct and education-oriented programmatic initiatives are underway to make sustainability more actionable and visible to campus community. Major support for these efforts are provided by various operational units within LBRE, University Communications, Government and Community Relations, Woods Institute, Precourt Institute, Stanford Recycling Center run by Peninsula Sanitary Services Inc, Residential and Dining 1< http://lbre.stanford.edu/sem/> , < http://sustainable.stanford.edu/working grollP and teams> Enterprises; School of Medicine; Graduate School of Business, School of Earth Sciences, Alumni Association; and many others. Gur website is http://sustaimable.stanford.edu, with quarterly newsletters at < http://sustainable.stanford.edulnewsletter. 2009 Sustainability Overview3 Stanford took a bold step in 2009 to tackle the threat of global climate change by developing an ambitious, long-range, $250 million program to reduce its energy consumption and greenhouse gas emissions. The new Energy and Climate Plan could reduce the campus carbon impact by as much as 20 percent below 1990 levels by 2020, far exceeding the goals of California's landmark AB 32 Global Warming Solutions Act. The Energy and Climate Plan is one among many accomplishments that place the university among the nation's top colleges and universities in terms of sustainability efforts. In 2009, the Sustainable Endowments Institute recognized Stanford among 26 colleges and universities for leadership in sustainability, During 2009, the university also made significant progress in: • Water conservation through development of a new recycled water treatment plant; • Transportation-related emissions reductions to 1990 levels through the Tnmsportation Demand Management program; and • Energy-use reduction through retrofits to two Stauffer laboratory buildings, The Energy and Climate Plan, in particular, will further Stanford's leadership position in sustainability nationwide. While the initial phases of the plan rely on energy conservation and changes to the campus heating and cooling scheme, even more greenhouse gas reductions may be possible through the use of renewable electricity and other energy management teehnologies still being explored, The plan, one of the most ambitious at any major U.S. university, includes higher-than- required energy standards for new buildings, retrofitting of existing buildings, transfonnation of the campus energy plant, and programs to teach the university community how to reduce energy use. A team of faculty and facilities experts, headed by Joseph Stagner, executive director of sustainability and energy management, worked on the plan for two years. After studying campus energy use, they discovered that over half the university'S heating demands could be met with heat that is already being removed from buildings by the campus cooling system. Such a reuse of energy would cut the amount of natural gas burned for heating purposes and thereby reduce energy costs, as well as emissions of greenhouse gases, Specifically, campus cooling systems do their job by using chilled water to remove unwanted heat from buildings. For years, that unwanted heat has been piped away from the buildings in the form of warm water, only to be discharged into the air through evaporative cooling towers at the central plant. But Stagner and his team believe that 70 percent of that lost heat could be recovered and 3 Stanford University Annual Report http://annualreport.stanford.edu/sustainability.html reused to heat buildings. Such a system is possible where campus buildings are being cooled and heated at the same time-a common occurrence given Stanford's temperate climate. Capturing and distributing the heat will require construction across campus. Most buildings are now healed by steam; for the new system to work, the steam will be replaced with hot water, requiring the replaeement of underground pipes over the next 10 years or so. The project also will bring changes to the university power grid. Stanford's Cardinal Cogeneration plant, which burns natural gas both to create steam heat and generate electricity for the campus, will shut down in a few years. Instead, electricity will be purchased from PG&E or, if state regulators allow, other providers. Other Actions The attached "Year in Review" highlights some of the other notable achievements of Sustainable Stanford over last year. To see the full description of these actions, please see the attached document covering the past academic year, or visit <http://sustainable.stanford.edulsites/sem.stanford.edulfiles/documents/Stanford year In review. pdf>. Future Plans and Ongoing Actions The Sustainability Working Group and Working Teams will continue to develop and implement actions key toereating a sustainable campus. OUf website (http://sustainablestanford.stanford.edul) continues to be the best resource for up to date actions and results. Stanford, through the Office of Government and Community Relations will continue to participate as a segment of the Community Environmental Action Partnership. We arc committed to continuing to reach beyond our campus borders to support actions aimed at creating a healthy environment for all. For further information on the wide range of activities related to Stanford University's commitment to sustainability please visit http://sustainablestanford.stanford.edul. For more information on Stanford's role as a segment of the Palo Alto Community Environment Action Partoership (CEAP), please contact Lucy Wicks, Assistant Director of Community Relations, Office of Government and Community Relations, at Iwicks@stanford.eduor650-725-3339. Introduction CEAP Annual Report 2009 Nonprofit Segment April 2010 The Nonprofit segment of the Community Environmental Action Partnership (CEAP) was formed to educate and engage the members of our segment in environmental initiatives. Toward this effort, the Nonprofit segment has worked on the following actions over the last year, since CEAP's inception in March 2008: Action 1 In 2009, instated a new Nonprofit liaison Action 2 Established a Nonprofit distribution list Action 3 Explored ways in which Wave One and the Business Segment could partner with the Nonprofit Segment. Action 4 Established connection between the City of Palo Alto's environmental programs and Rebuilding Together Peninsula's environment program. Action 5 Worked with Abilities United, a local nonprofit, to encourage facilitating resource-saving improvements through use of free audits and rebates (see attachment). Future Plans )-Continue to meet with Wave One )-Identify and add agencies to distribution list }> Identify resources to help nonprofits partieipate in environmental ehange }> Encourage other nonprofits to take actions similar to Abilities United. DATE: April 19, 2010 CITY OF PALO ALTO MEMORANDUM TO: City Council Members FROM: Council Members Holman, Klein and Scharff SUBJECT: Request that the City Council recommend to the voters of Palo Alto that they not sign the Union petition seeking to remove the ability of the Council to determine appropriate staffing levels for the Fire Department RECOMMENDATION We urge the City Council to recommend that the citizens of Palo Alto: 1) read the complete Firefighters Union's' Petition (Attachment "AU) and, 2) once informed, decline to sign the Petition. BACKGROUND Palo Alto faces huge budgetary challenges that must be addressed in a practical and responsible way. The largest component of the budget is staff salary and benefits. It is incumbent upon the City to evaluate the appropriate staffing levels for all City departments, including public safety in an effort to reduce costs while minimizing any impact to services, and while also looking to increase income. Our Firefighters are valued members of the community and we deeply respect their commitment to saving lives and property. However, the Union's Petition now being circulated is bad government. It seeks to amend and embed in the City Charter job protections for its union members as follows: • The number of Firefighters employed by the City could never be less than the number presently employed • The number of fire stations would be fixed as is Any changes to these provisions would have to be approved by the Union and also by a vote of the citizens of the City. This would effectively give the Union veto power over any changes to firefighter employment regardless of the wishes of the citizens of Palo Alto or their elected representatives. The changes being sought by the Firefighters' Union through the Petition are expensive, cumbersome and would prevent the City Council from doing its job to evaluate staffing levels to take into account matters such as: • Advancements in safety technology • Cooperative efforts with adjoining communities This petition, should it quality for the ballot with the necessary number of signatures, will require an election that will cost the City approximately $190,000. ($141,000 for Registrar of Voters, $35,000 for legal fees, $11,000 for legal publications, and $3,000 in City Clerk staff time), which in our view a waste of money in this time of extremely tight budgets. We therefore respectfully request that the citizens of Palo Alto not sign the Union's petition. Attachment: . Proposed Firefighters Charter Amendment ' .. ' , Initiative Measure to Be Submitted Directly to tbe Voters I"';f'~-'.?!::: F'l l:09 NOTICE OF INTENT TO CIRCULATE PETITION Notice is hereby given by the persons whose names appear hereon of their intention to circulate the petition withiQ the City of Palo Alto for the purpose of amending the Charter of the City of Palo Alto by adding an Article entitled" Article IX Fire and Emergency Medical ServIces Minimum Protection" for the purpose of establishing minimum levels of fire suppression, rescue and emergency medical staffing levels within the City of Palo Alto Fire Department. This amendment would supercede any existing charter language to the extent that it is in conflict with this amendment. A statement of the reasons of the proposed action as contemplated in the petition is as follows: /I is the intent of this Charter amendment to require tile City of Palo Alto fo maintain minimum and safe fire department staffing and emergency medical selVice levels in order to prevent reductions in fire fighting and emergency medical services, /0 protect against reductions in rapid response and life saving emergency medical care and to eliminate closures of neighborhood fire stations. Sponsors: James McLaughlin, John Garcia and Robert Paugh Petition for Submission to Volers of Proposed Amendments to the Cbarter of the City of Palo Allo To Ihe City Council of Ibe City of Palo Alto: We, the Undersigned, registered and qualified Yoters of the Stale of California, residents of the City of Palo Alto, porsuant to Seetion 3 of Article Xl ofthe California Constitution and Chapler 2 (commencing with Section 34450) of Part 1 of DiyisiOil 2 of Title 4 of the Government Code, present to the city council of the City of Palo Alto this petition and request that the following proposed amendments to the Charter of the City of Palo Alto be submitted to the registered and qualified yoters of the City of Palo Alto immediately for their adoption or rejection at an election on a date to be determined by the city council. The proposed charter amendment reads as follows: Artiele IX Fire. and Emergency l't1edical Services l'tlinimum Protection Sec L PURPOSE. It is the purpose of this measure to assure continuing minimum staffing and emergency medical service levels for the Fire Department as set forth tn Section 3, belowj and to further assure that any closure or relocation of a fire stalion and any reduction in the staffing and emergency medical services levels in the Fire Department must first be approved by the voters, Sec. 2, DEFINITIONS. For tile purpose ofthis Article only, the following terms shall be defined as set forth below: (a) <!Fire Department" shaH mean the public organization within the City of Palo Alto providing rescuet fire suppression. emergency medical services. and related activities to the public. (b) "Staffing" shall mean a particularized number of City of Palo Alto Fire Department sworn uniformed personnel required for the purpose of operating rescue, fire suppression. emergency medical services and related apparatus and services. ' (c) "Rescue" shaH mean those activities directed at loeating endangered persons at an emergency lnctdent~ removing of those persons from danger and treating the injured. (d) "Fire Suppression)} shall mean the activities involved in controlling and extinguishing fires. (e) "Emergency Medical Corell shall mean the provision of treatment topatients. including advanced life support (at the paramedic level), and other medical procedures and providing for transport toa health care facility. Sec, 3. FIRE DEPARTMENT STAFFING. The number of Fire Department personnel authorized by the City of Palo Alto in the 2009·2010 approved Annual Budget for the Fire Department shall be continuously maintained as a minimum number of Fife Department personnel in all subsequent budgetary years:. ATTACHMENT A Initiative Measure to Be Submitted Directly to tlte Voters Sec, 4, REFERENDUM VOTE, Any proposal by Ihe City Council Or statf of the City aCPalo Alto to reduce the minimum service of staffing and/or emergency medical service levels in the Fire Department and any proposal to close or relocate a fire station shall be the subject of two public hearings before the City Council of the City of Palo Alto, Any such proposal(s) that have been approved by a majority vote of the City Council shall be submitted to the voters for approval at the next regular municipal or general election, No such proposal shan be implemented until approved by a majority of voters voting in said election. Sec. 5. SUPERSESSION. The provisions set forth in this Article shall supersede all general andlor specific provisions that may bc contained elsewhere in this Charter. The provisions set forth in this Article shall also supersede any and alI general andlor specific provisions in any ordinance, resolution, rule Or regulation that may have been adopted or that may be adopted by the City Council or by administrative action, Sec, 6, SAVINGS CLAUSE. If any provision. sentence, clause, section, paragraph or partofthi, Article is found to be unconstitutional, illegal or invalid, such unconstitutionality, illegality, or invalidity shall affect only such provision, sentence, clause, section Or part of this Article, It is hereby declared to be the intention ofthe City of Palo Alto that this Article would have been adopted had such unconstitutional, illegal, or invalid provision, sentence~ clause, sections or parts therefore not been included herein. NOTICE TO THE PUBIJC THIS PETITION MAYBE CIRCULATED BY A PAID SIGNATURE GATHERER OR A VOLUNTEER.. YOU HAVE THE RIGHT TO ASK. 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